Contract
Loan Number: 6023ZMC
Exhibit 10.1
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
Dated as of October 27, 2017
by and among
MHC OPERATING LIMITED PARTNERSHIP,
as Borrower,
EQUITY LIFESTYLE PROPERTIES, INC.,
as Parent,
THE FINANCIAL INSTITUTIONS PARTY HERETO
AND THEIR ASSIGNEES UNDER SECTION 12.5.,
as Lenders,
and
XXXXX FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent,
XXXXX FARGO SECURITIES, LLC
and
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED,
as Joint Lead Arrangers
and
Joint Bookrunners,
BANK OF AMERICA, N.A.,
as Syndication Agent,
and
U.S. BANK NATIONAL ASSOCIATION,
as Documentation Agent
TABLE OF CONTENTS
Article I. Definitions ............................................................................................................. 1
Section 1.1. Definitions. .......................................................................................... 1
Section 1.2. General; References to Central time. .................................................. 29
Section 1.3. Financial Attributes of Non-Wholly Owned Subsidiaries ................... 30
Article II. Credit Facility ....................................................................................................... 30
Section 2.1. Revolving Loans. ................................................................................ 30
Section 2.2. Term Loans. ........................................................................................ 31
Section 2.3. Letters of Credit .................................................................................. 31
Section 2.4. Swingline Loans. ................................................................................. 36
Section 2.5. Rates and Payment of Interest on Loans ............................................. 38
Section 2.6. Number of Interest Periods. ................................................................ 39
Section 2.7. Repayment of Loans. .......................................................................... 39
Section 2.8. Prepayments. ....................................................................................... 39
Section 2.9. Continuation. ....................................................................................... 40
Section 2.10. Conversion. ....................................................................................... 40
Section 2.11. Notes ................................................................................................. 41
Section 2.12. Voluntary Reductions of the Revolving Commitment ...................... 41
Section 2.13. Extension of Revolving Termination Date. ....................................... 42
Section 2.14. Expiration Date of Letters of Credit Past Commitment
Termination. ................................................................................................ 42
Section 2.15. Amount Limitations. ......................................................................... 42
Section 2.16. Increase in Revolving Commitments and Additional Term Loans... 43
Section 2.17. Funds Transfer Disbursements. ......................................................... 44
Section 2.18. Reallocations on Effective Date. ....................................................... 44
Article III. Payments, Fees and Other General Provisions.................................................... 45
Section 3.1. Payments. ............................................................................................ 45
Section 3.2. Pro Rata Treatment ............................................................................. 46
Section 3.3. Sharing of Payments, Etc. ................................................................... 47
Section 3.4. Several Obligations. ............................................................................ 47
Section 3.5. Fees. .................................................................................................... 47
Section 3.6. Computations. ..................................................................................... 48
Section 3.7. Usury ................................................................................................... 48
Section 3.8. Statements of Account ........................................................................ 49
Section 3.9. Defaulting Lenders .............................................................................. 49
Section 3.10. Taxes ................................................................................................. 52
Article IV. Yield Protection, Etc ........................................................................................... 56
Section 4.1. Additional Costs; Capital Adequacy ................................................... 56
Section 4.2. Suspension of LIBOR Loans. ............................................................. 58
Section 4.3. Illegality .............................................................................................. 58
Section 4.4. Compensation...................................................................................... 58
Section 4.5. Treatment of Affected Loans .............................................................. 59
Section 4.6. Affected Lenders. ................................................................................ 59
Section 4.7. Change of Lending Office ................................................................... 60
Section 4.8. Assumptions Concerning Funding of LIBOR Loans. ......................... 60
- i -
Article V. Conditions Precedent ........................................................................................... 60
Section 5.1. Initial Conditions Precedent ................................................................ 60
Section 5.2. Conditions Precedent to All Loans and Letters of Credit ................... 62
Article VI. Representations and Warranties .......................................................................... 63
Section 6.1. Representations and Warranties .......................................................... 63
Section 6.2. Survival of Representations and Warranties, Etc. ............................... 69
Article VII. Affirmative Covenants ...................................................................................... 69
Section 7.1. Preservation of Existence and Similar Matters. .................................. 69
Section 7.2. Compliance with Applicable Law. ...................................................... 70
Section 7.3. Maintenance of Property ..................................................................... 70
Section 7.4. Conduct of Business ........................................................................... 70
Section 7.5. Insurance ............................................................................................. 70
Section 7.6. Payment of Taxes ................................................................................ 70
Section 7.7. Books and Records; Inspections. ........................................................ 70
Section 7.8. Use of Proceeds. .................................................................................. 71
Section 7.9. Environmental Matters. ....................................................................... 71
Section 7.10. Further Assurances ............................................................................ 71
Section 7.11. REIT Status. ...................................................................................... 72
Section 7.12. Exchange Listing............................................................................... 72
Article VIII. Information....................................................................................................... 72
Section 8.1. Quarterly Financial Statements. .......................................................... 72
Section 8.2. Year-End Statements........................................................................... 72
Section 8.3. Compliance Certificate. ...................................................................... 73
Section 8.4. Other Information. .............................................................................. 73
Section 8.5. Electronic Delivery of Certain Information. ....................................... 74
Section 8.6. Public/Private Information. ................................................................. 75
Section 8.7. USA Patriot Act Notice; Compliance ................................................. 75
Section 8.8. Qualifying Unencumbered Properties ................................................. 76
Article IX. Negative Covenants ............................................................................................ 76
Section 9.1. Financial Covenants. ........................................................................... 76
Section 9.2. Indebtedness. ....................................................................................... 77
Section 9.3. Liens .................................................................................................... 78
Section 9.4. Negative Pledge. ................................................................................. 79
Section 9.5. Restrictions on Intercompany Transfers. ............................................ 79
Section 9.6. Merger, Consolidation, Sales of Assets and Other Arrangements. ..... 80
Section 9.7. Plan Assets .......................................................................................... 81
Section 9.8. Fiscal Year .......................................................................................... 81
Section 9.9. Modifications of Organizational Documents. ..................................... 81
Section 9.10. Transactions with Affiliates .............................................................. 81
Section 9.11. Environmental Matters. ..................................................................... 81
Section 9.12. Derivatives Contracts. ....................................................................... 81
Article X. Default .................................................................................................................. 82
Section 10.1. Events of Default .............................................................................. 82
Section 10.2. Remedies Upon Event of Default ..................................................... 85
Section 10.3. Remedies Upon Default .................................................................... 86
Section 10.4. Marshaling; Payments Set Aside ...................................................... 86
- ii -
Section 10.5. Allocation of Proceeds ...................................................................... 86
Section 10.6. Letter of Credit Collateral Account ................................................... 87
Section 10.7. Rescission of Acceleration by Requisite Lenders. ............................ 89
Section 10.8. Performance by Administrative Agent .............................................. 89
Section 10.9. Rights Cumulative. ............................................................................ 89
Article XI. The Administrative Agent ................................................................................... 90
Section 11.1. Appointment and Authorization. ....................................................... 90
Section 11.2. Xxxxx Fargo as Lender ...................................................................... 91
Section 11.3. Approvals of Lenders. ....................................................................... 91
Section 11.4. Notice of Events of Default ............................................................... 91
Section 11.5. Administrative Agent’s Reliance. ..................................................... 92
Section 11.6. Indemnification of Administrative Agent ......................................... 92
Section 11.7. Lender Credit Decision, Etc. ............................................................. 93
Section 11.8. Successor Administrative Agent ....................................................... 94
Section 11.9. Titled Agents. .................................................................................... 95
Article XII. Miscellaneous .................................................................................................... 95
Section 12.1. Notices .............................................................................................. 95
Section 12.2. Expenses. .......................................................................................... 97
Section 12.3. Setoff ................................................................................................. 98
Section 12.4. Litigation; Jurisdiction; Other Matters; Waivers. .............................. 98
Section 12.5. Successors and Assigns. .................................................................... 100
Section 12.6. Amendments and Waivers. ............................................................... 104
Section 12.7. Nonliability of Administrative Agent and Lenders. .......................... 106
Section 12.8. Confidentiality .................................................................................. 107
Section 12.9. Indemnification. ................................................................................ 108
Section 12.10. Termination; Survival ..................................................................... 110
Section 12.11. Severability of Provisions. .............................................................. 110
Section 12.12. GOVERNING LAW. ...................................................................... 110
Section 12.13. Counterparts. ................................................................................... 110
Section 12.14. Obligations with Respect to Loan Parties ....................................... 110
Section 12.15. Independence of Covenants. ........................................................... 111
Section 12.16. Limitation of Liability ..................................................................... 111
Section 12.17. Entire Agreement ............................................................................ 111
Section 12.18. Construction. ................................................................................... 111
Section 12.19. Headings.......................................................................................... 111
Section 12.20. Acknowledgement and Consent to Bail-in of EEA Financial
Institutions .................................................................................................. 111
Section 12.21. No Novation. ................................................................................... 112
SCHEDULE I Revolving Commitments and Term Loans
SCHEDULE 1.1. Qualifying Unencumbered Properties
SCHEDULE 6.1.(b) Ownership Structure
SCHEDULE 6.1.(g) Existing Derivatives Contracts
SCHEDULE 6.1.(h) Litigation
SCHEDULE 9.10. Transactions with Affiliates
EXHIBIT A Form of Assignment and Assumption Agreement
- iii -
EXHIBIT B Form of Guaranty
EXHIBIT C Form of Notice of Revolving Borrowing
EXHIBIT D Form of Notice of Continuation
EXHIBIT E Form of Notice of Conversion
EXHIBIT F Form of Notice of Swingline Borrowing
EXHIBIT G Form of Revolving Note
EXHIBIT H Form of Swingline Note
EXHIBIT I Form of Disbursement Instruction Agreement
EXHIBIT J Form of Opinion of Counsel
EXHIBIT K Form of Compliance Certificate
EXHIBIT L Form of Term Note
EXHIBIT M Form of Notice of Term Borrowing
EXHIBIT N Forms of U.S. Tax Compliance Certificates
- iv -
THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”)
dated as of October 27, 2017 by and among MHC OPERATING LIMITED PARTNERSHIP, a limited
partnership formed under the laws of the State of Illinois (the “Borrower”), EQUITY LIFESTYLE
PROPERTIES, INC., a corporation formed under the laws of the State of Maryland (the “Parent”), each
of the financial institutions initially a signatory hereto together with their successors and assignees under
Section 12.5. (the “Lenders”) and XXXXX FARGO BANK, NATIONAL ASSOCIATION, as
Administrative Agent (the “Administrative Agent”), with XXXXX FARGO SECURITIES, LLC and
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED (or any other registered broker-
dealer wholly-owned by Bank of America Corporation to which all or substantially all of Bank of
America Corporation’s or any of its subsidiaries’ investment banking, commercial lending services or
related businesses may be transferred following the date of this Agreement), as Joint Lead Arrangers and
Joint Bookrunners (each a “Lead Arranger”), BANK OF AMERICA, N.A., as Syndication Agent (the
“Syndication Agent”) and U.S. BANK NATIONAL ASSOCIATION, as Documentation Agent (the
“Documentation Agent”).
WHEREAS, certain of the Lenders and other financial institutions have made available to the
Borrower credit facilities in the initial aggregate amount of $600,000,000, which includes a $400,000,000
revolving credit facility with a $50,000,000 swingline subfacility and a $50,000,000 letter of credit
subfacility, and a $200,000,000 term loan facility, on the terms and conditions contained in that certain
Amended, Restated and Consolidated Credit Agreement dated as of June 17, 2014 (as amended and in
effect immediately prior to the date hereof, the “Existing Credit Agreement”) by and among the
Borrower, the Parent, such Lenders, certain other financial institutions and the Administrative Agent; and
WHEREAS, the Administrative Agent and the Lenders desire to amend and restate the terms of,
the Existing Credit Agreement, all on the terms and conditions contained herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by the parties hereto, the parties hereto agree that the Existing Credit
Agreement is hereby amended and restated as follows:
ARTICLE I. DEFINITIONS
Section 1.1. Definitions.
In addition to terms defined elsewhere herein, the following terms shall have the following
meanings for the purposes of this Agreement:
“Accommodation Obligations” as applied to any Person, means any obligation, contingent or
otherwise, of that Person in respect of which that Person is liable for any Indebtedness or other obligation
or liability of another Person, including without limitation and without duplication (a) any such
Indebtedness, obligation or liability directly or indirectly guaranteed, endorsed (otherwise than for
collection or deposit in the ordinary course of business), co-made or discounted or sold with recourse by
that Person, or in respect of which that Person is otherwise directly or indirectly liable, including
Contractual Obligations (contingent or otherwise) arising through any agreement to purchase, repurchase
or otherwise acquire such Indebtedness, obligation or liability or any security therefor, or to provide funds
for the payment or discharge thereof (whether in the form of loans, advances, stock purchases, capital
contributions or otherwise), or to maintain solvency, assets, level of income, or other financial condition,
or to make payment other than for value received and (b) any obligation of such Person arising through
such Person’s status as a general partner of a general or limited partnership with respect to any
Indebtedness, obligation or liability of such general or limited partnership.
- 2 -
“Additional Costs” has the meaning given that term in Section 4.1.(b).
“Additional Term Loans” has the meaning given that term in Section 2.16.
“Adjusted EBITDA” means, for any given period, (a) the EBITDA for such period, minus
(b) Capital Reserves.
“Administrative Agent” means Xxxxx Fargo Bank, National Association as contractual
representative of the Lenders under this Agreement, or any successor Administrative Agent appointed
pursuant to Section 11.8.
“Administrative Questionnaire” means the Administrative Questionnaire completed by each
Lender and delivered to the Administrative Agent in a form supplied by the Administrative Agent to the
Lenders from time to time.
“Affected Lender” has the meaning given that term in Section 4.6.
“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under common Control with the
Person specified. In no event shall the Administrative Agent or any Lender be deemed to be an Affiliate
of the Borrower.
“Agreement Date” means the date as of which this Agreement is dated.
“Anti-Corruption Laws” means all Applicable Laws of any jurisdiction concerning or relating
to bribery or corruption, including without limitation, the Foreign Corrupt Practices Act of 1977.
“Anti-Money Laundering Laws” means any and all Applicable Laws related to the financing of
terrorism or money laundering, including without limitation, any applicable provision of the Patriot Act
and The Currency and Foreign Transactions Reporting Act (also known as the “Bank Secrecy Act,” 31
U.S.C. §§ 5311-5330 and 12U.S.C. §§ 1818(s), 1820(b) and 1951-1959).
“Applicable Facility Fee” means the percentage set forth in the table below corresponding to the
Level at which the Applicable Margins are determined in accordance with the definition thereof:
Level Facility Fee
1 0.15%
2 0.20%
3 0.20%
4 0.25%
5 0.30%
6 0.35%
Any change in the applicable Level at which the Applicable Margins are determined shall result in a
corresponding and simultaneous change in the Applicable Facility Fee. The provisions of this definition
shall be subject to Section 2.5.(c).
“Applicable Law” means all international, foreign, federal, state and local statutes, treaties, rules,
guidelines, regulations, ordinances, codes, executive orders, and administrative or judicial precedents or
authorities, including the interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all applicable administrative orders,
- 3 -
directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental
Authority, in each case whether or not having the force of law.
“Applicable Margin” means, with respect to a particular Class and Type of Loan, the percentage
rate set forth below corresponding to the ratio of Total Indebtedness to Total Asset Value as determined
in accordance with Section 9.1.(a):
Level
Ratio of Total
Indebtedness to
Total Asset
Value
Applicable
Margin for
Revolving Loans
that are LIBOR
Loans
Applicable
Margin for
Revolving Loans
that are Base Rate
Loans
Applicable
Margin for Term
Loans that are
LIBOR Loans
Applicable
Margin for Term
Loans that are
Base Rate Loans
1
Less than or equal
to 0.35 to 1.00
1.10% 0.10% 1.20% 0.20%
2
Greater than 0.35 to
1.00 but less than or
equal to 0.40 to
1.00
1.15% 0.15% 1.30% 0.30%
3
Greater than 0.40 to
1.00 but less than or
equal to 0.45 to
1.00
1.20% 0.20% 1.35% 0.35%
4
Greater than 0.45 to
1.00 but less than or
equal to 0.50 to
1.00
1.25% 0.25% 1.45% 0.45%
5
Greater than 0.50 to
1.00 but less than or
equal to 0.55 to
1.00
1.35% 0.35% 1.60% 0.60%
6 Greater than 0.55 to
1.00
1.55% 0.55% 1.90% 0.90%
The Applicable Margins shall be determined by the Administrative Agent from time to time in
accordance with the table above, based on the range which the ratio of Total Indebtedness to Total Asset
Value as set forth in the Compliance Certificate most recently delivered by the Borrower pursuant to
Section 8.3. then falls in the table set forth above (each such range a “Level”). Any adjustment to the
Applicable Margins shall be effective as of the first day of the calendar month immediately following the
month during which the Borrower delivers to the Administrative Agent the applicable Compliance
Certificate pursuant to Section 8.3. If the Borrower fails to deliver a Compliance Certificate pursuant to
Section 8.3., the Applicable Margins shall equal the percentages corresponding to Level 6 until the first
day of the calendar month immediately following the month that the required Compliance Certificate is
delivered. Notwithstanding the foregoing, for the period from the Effective Date through but excluding
the date on which the Administrative Agent first determines the Applicable Margins as set forth above,
the Applicable Margins shall be determined based on Level 1. Thereafter, such Applicable Margin shall
be adjusted from time to time as set forth in this definition. The provisions of this definition shall be
subject to Section 2.5.(c).
“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender, or (c) an entity or an Affiliate of any entity that administers or manages a Lender.
“Assignee” has the meaning given that term in Section 12.5.(b).
- 4 -
“Assignment and Assumption” means an Assignment and Assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is required by Section 12.5.), and
accepted by the Administrative Agent, in substantially the form of Exhibit A or any other form approved
by the Administrative Agent.
“Attributable Indebtedness” means, on any date, without duplication, (a) in respect of any
Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such
Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease or similar payments under the relevant lease or
other applicable agreement or instrument that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP if such lease or other agreement or instrument were accounted for
as a Capital Lease and (c) all Synthetic Debt of such Person.
“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the
applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55
of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the
implementing law for such EEA Member Country from time to time which is described in the EU Bail-In
Legislation Schedule.
“Bankruptcy Code” means the Bankruptcy Code of 1978, as amended.
“Base Rate” means, at any time, the highest of (a) the Prime Rate, (b) the Federal Funds Rate
plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%; each change in the Base Rate shall take
effect simultaneously with the corresponding change or changes in the Prime Rate, the Federal Funds
Rate or the LIBOR Market Index Rate (provided that clause (c) shall not be applicable during any period
in which LIBOR is unavailable or unascertainable).
“Base Rate Loan” means a Revolving Loan or Term Loan (or any portion thereof) bearing
interest at a rate based on the Base Rate.
“Benefit Arrangement” means at any time an employee benefit plan within the meaning of
Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise
contributed to by any member of the ERISA Group.
“Borrower” has the meaning set forth in the introductory paragraph hereof and shall include the
Borrower’s successors and permitted assigns.
“Borrower Information” has the meaning given that term in Section 2.5.(c).
“Business Day” means (a) for all purposes other than as set forth in clause (b) below, any day
(other than a Saturday, Sunday or legal holiday) on which banks in San Francisco, California and New
York, New York, are open for the conduct of their commercial banking business, and (b) with respect to
all notices and determinations in connection with, and payments of principal and interest on, any LIBOR
Loan, or any Base Rate Loan as to which the interest rate is determined by reference to LIBOR, any day
that is a Business Day described in clause (a) and that is also a day for trading by and between banks in
Dollar deposits in the London interbank market. Unless specifically referenced in this Agreement as a
Business Day, all references to “days” shall be to calendar days.
- 5 -
“Capital Lease,” as applied to any Person, means any lease of any property (whether real,
personal or mixed) by that Person as lessee which, in conformity with GAAP, is or should be accounted
for as a capital lease on the balance sheet of that Person.
“Capital Reserves” means, for any period and with respect to any manufactured home, marina or
recreational vehicle site which is then leased on an annual basis, an amount equal to (a) $200, times
(b) the number of days in such period, divided by (c) 365. If the term Capital Reserves is used without
reference to any specific Property, then it shall be determined on an aggregate basis with respect to all
manufactured home, marina and recreational vehicle sites then leased on an annual basis and the
applicable Ownership Shares of all such manufactured home, marina and recreational vehicle of all
Unconsolidated Affiliates.
“Capitalization Rate” means six percent (6.00%).
“Cash Collateralize” means, to pledge and deposit with or deliver to the Administrative Agent,
for the benefit of the Issuing Banks or the Revolving Lenders, as collateral for Letter of Credit Liabilities
or obligations of Revolving Lenders to fund participations in respect of Letter of Credit Liabilities, cash
or deposit account balances or, if the Administrative Agent and an Issuing Bank shall agree in their sole
discretion, other credit support, in each case pursuant to documentation in form and substance satisfactory
to the Administrative Agent and such Issuing Bank. “Cash Collateral” shall have a meaning correlative to
the foregoing and shall include the proceeds of such cash collateral and other credit support.
“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally
guaranteed by the federal government of the United States of America or issued by an agency thereof and
backed by the full faith and credit of the United States of America, in each case maturing within 1 year
after the date of acquisition thereof; (b) marketable direct obligations issued by any state of the United
States of America or any political subdivision of any such state or any public instrumentality thereof
maturing within 90 days after the date of acquisition thereof and, at the time of acquisition, having one of
the two highest ratings obtainable from any two nationally recognized rating services reasonably
acceptable to the Administrative Agent; (c) domestic corporate bonds, other than domestic corporate
bonds issued by the Parent or any of its Affiliates, maturing no more than 2 years after the date of
acquisition thereof and, at the time of acquisition, having a rating of at least A or the equivalent from two
nationally recognized rating services reasonably acceptable to the Administrative Agent; (d) variable-rate
domestic corporate notes or medium term corporate notes, other than notes issued by the Parent or any of
its Affiliates, maturing or resetting no more than 1 year after the date of acquisition thereof and having a
rating of at least AA or the equivalent from two nationally recognized rating services reasonably
acceptable to the Administrative Agent; (e) commercial paper (foreign and domestic) or master notes,
other than commercial paper or master notes issued by the Parent or any of its Affiliates, and, at the time
of acquisition, having a long-term rating of at least A or the equivalent from a nationally recognized
rating service reasonably acceptable to the Administrative Agent and having a short-term rating of at least
A-1 and P-1 from S&P and Xxxxx’x, respectively (or, if at any time neither S&P nor Xxxxx’x shall be
rating such obligations, then the highest rating from such other nationally recognized rating services
reasonably acceptable to the Administrative Agent); (f) domestic and Eurodollar certificates of deposit or
domestic time deposits or Eurotime deposits or bankers’ acceptances (foreign or domestic) that are issued
by a bank (i) which has, at the time of acquisition, a long-term rating of at least A or the equivalent from a
nationally recognized rating service reasonably acceptable to the Administrative Agent and (ii) if a
domestic bank, which is a member of the Federal Deposit Insurance Corporation; and (g) overnight
securities repurchase agreements, or reverse repurchase agreements secured by any of the foregoing types
of securities or debt instruments, provided that the collateral supporting such repurchase agreements shall
have a value not less than 101% of the principal amount of the repurchase agreement plus accrued
interest.
- 6 -
“Class” (a) when used with respect to a Loan, refers to whether such Loan is a Revolving Loan
or a Term Loan and (b) when used with respect to a Lender, refers to whether such Lender has a Loan or
Commitment with respect to a particular Class of Loans or Commitments.
“Commitment” means a Revolving Commitment.
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).
“Compliance Certificate” has the meaning given that term in Section 8.3.
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured
by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
“Continue”, “Continuation” and “Continued” each refers to the continuation of a LIBOR Loan
from one Interest Period to another Interest Period pursuant to Section 2.9.
“Contractual Obligation,” as applied to any Person, means any provision of any Securities
issued by that Person or any indenture, mortgage, deed of trust, lease, contract, undertaking, document or
instrument to which that Person is a party or by which it or any of its properties is bound, or to which it or
any of its properties is subject (including without limitation any restrictive covenant affecting such Person
or any of its properties).
“Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability to exercise voting power,
by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.
“Convert”, “Conversion” and “Converted” each refers to the conversion of a Loan of one Type
into a Loan of another Type pursuant to Section 2.10.
“Credit Event” means either of the following: (a) the making (or deemed making) of any Loan
and (b) the issuance of a Letter of Credit or the amendment of a Letter of Credit that extends the maturity,
or increases the Stated Amount, of such Letter of Credit.
“Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar Applicable Laws relating to the relief of debtors in the United States of America
or other applicable jurisdictions from time to time in effect.
“Default” means any of the events specified in Section 10.1., whether or not there has been
satisfied any requirement for the giving of notice, the lapse of time, or both, in each case, as set forth in
such Section.
“Defaulting Lender” means, subject to Section 3.9.(f), any Lender that (a) has failed to (i) fund
all or any portion of its Loans within 2 Business Days of the date such Loans were required to be funded
hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such
failure is the result of such Lender’s determination that one or more conditions precedent to funding (each
of which conditions precedent, together with any applicable default, shall be specifically identified in
such writing) has not been satisfied, or (ii) pay to the Administrative Agent, any Issuing Bank, any
Swingline Lender or any other Lender any other amount required to be paid by it hereunder (including in
the case of a Revolving Lender, in respect of its participation in Letters of Credit or Swingline Loans)
- 7 -
within 2 Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent,
any Issuing Bank or any Swingline Lender in writing that it does not intend to comply with its funding
obligations hereunder, or has made a public statement to that effect (unless such writing or public
statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is
based on such Lender’s determination that a condition precedent to funding (which condition precedent,
together with any applicable default, shall be specifically identified in such writing or public statement)
cannot be satisfied), (c) in the case of a Revolving Lender, has failed, within 3 Business Days after
written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative
Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided
that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such
written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect
parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had
appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of
creditors or similar Person charged with reorganization or liquidation of its business or assets, including
the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such
a capacity or (iii) become the subject of a Bail-in Action; provided that a Lender shall not be a Defaulting
Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct
or indirect parent company thereof by a Governmental Authority so long as such ownership interest does
not result in or provide such Lender with immunity from the jurisdiction of courts within the United
States of America or from the enforcement of judgments or writs of attachment on its assets or permit
such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or
agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a
Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding
absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to
Section 3.9.(f)) upon delivery of written notice of such determination to the Borrower, each Issuing Bank,
each Swingline Lender and each Lender.
“Derivatives Contract” means a “swap agreement” as defined in Section 101 the Bankruptcy
Code.
“Derivatives Support Document” means (a) any Credit Support Annex comprising part of (and
as defined in) any Specified Derivatives Contract, and (b) any document or agreement pursuant to which
cash, deposit accounts, securities accounts or similar financial asset collateral are pledged to or made
available for set-off by, a Specified Derivatives Provider, including any banker’s lien or similar right,
securing or supporting Specified Derivatives Obligation.
“Derivatives Termination Value” means, in respect of any one or more Derivatives Contracts,
after taking into account the effect of any legally enforceable netting agreement or provision relating
thereto, (a) for any date on or after the date such Derivatives Contracts have been terminated or closed
out, the termination amount or value determined in accordance therewith, and (b) for any date prior to the
date such Derivatives Contracts have been terminated or closed out, the then-current xxxx-to-market
value for such Derivatives Contracts, determined based upon one or more mid-market quotations or
estimates provided by any recognized dealer in Derivatives Contracts (which may include the
Administrative Agent, any Lender, any Specified Derivatives Provider or any Affiliate of any of them).
“Designated Use Property” means a property owned and operated primarily (a) for the purpose
of leasing sites to individuals on which such individuals place manufactured homes or recreational
vehicles for the purpose of occupying such manufactured homes or recreational vehicles, (b) as a daily
stay campground, membership interest campground or park model community, or (c) for the purpose of
renting cabins, manufactured homes or recreational vehicles on such property to individuals.
- 8 -
“Designated Use Property Ownership Interests” means partnership, joint venture, membership
or other Equity Interests issued by any Person engaged primarily in the business of developing, owning,
and managing Designated Use Properties.
“Development Activity” means construction in process, that is being performed by or at the
direction of the Borrower, any Subsidiary or any Unconsolidated Affiliate, at any Designated Use
Property that will be owned and operated by the Borrower, any Subsidiary or any Unconsolidated
Affiliate upon completion of construction, including construction in process at Designated Use Properties
not owned by the Borrower, any Subsidiary or any Unconsolidated Affiliate but which the Borrower, any
Subsidiary or any Unconsolidated Affiliate has the contractual obligation to purchase. A Property shall
cease to be included as “Development Activity” on the earliest of (a) the date which is 180 days following
the date of substantial completion of construction, (b) the date which is 18 months following the first date
that such Property first constituted “Development Activity” and (c) the date following commencement of
construction on which the Occupancy Rate first equals or exceeds 85%. “Development Activity” shall
not include construction in process for the purpose of expanding, altering, maintaining or refurbishing
Designated Use Properties owned by the Borrower, any Subsidiary or any Unconsolidated Affiliate.
“Disbursement Instruction Agreement” means an agreement substantially in the form of
Exhibit I to be executed and delivered by the Borrower pursuant to Section 5.1.(a), as the same may be
amended, restated or modified from time to time with the prior written approval of the Administrative
Agent.
“Dollars” or “$” means the lawful currency of the United States of America.
“EBITDA” means, for any period and without duplication (a) Net Income for such period, plus
(b) depreciation and amortization expense and other non-cash items deducted in the calculation of Net
Income for such period, plus (c) Interest Expense deducted in the calculation of Net Income for such
period, plus (d) Income Taxes deducted in the calculation of Net Income for such period, minus (e) the
gains (and plus the charges) from extraordinary or unusual items or asset sales or write-ups (or non-cash
write-downs) or forgiveness of indebtedness included in the calculation of Net Income, for such period,
minus (f) earnings of Subsidiaries for such period distributed to third parties, plus (g) the amount of
deferred revenues less deferred expenses relating to membership sales by the Parent and its Subsidiaries
during such period deducted in the calculation of Net Income for such period, minus (h) interest income
for such period from Mezzanine Debt Investments, plus (i) the Parent’s Ownership Share of EBITDA of
its Unconsolidated Affiliates for such period.
“EEA Financial Institution” means (a) any credit institution or investment firm established in
any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any
entity established in an EEA Member Country which is a parent of an institution described in clause (a) of
this definition, or (c) any financial institution established in an EEA Member Country which is a
subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated
supervision with its parent.
“EEA Member Country” means any of the member states of the European Union, Iceland,
Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any person entrusted
with public administrative authority of any EEA Member Country (including any delegee) having
responsibility for the resolution of any EEA Financial Institution.
- 9 -
“Effective Date” means the later of (a) the Agreement Date and (b) the date on which all of the
conditions precedent set forth in Section 5.1. shall have been fulfilled or waived by all of the Lenders.
“Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund and
(d) any other Person (other than a natural person) approved by the Administrative Agent (such approval
not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible
Assignee” shall not include any Person specified in clause (v) or (vi) of Section 12.5.(b).
“Environmental Laws” means any Applicable Law relating to environmental protection or the
manufacture, storage, remediation, disposal or clean-up of Hazardous Materials including, without
limitation, the following: Clean Air Act, 42 U.S.C. § 7401 et seq.; Federal Water Pollution Control Act,
33 U.S.C. § 1251 et seq.; Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act, 42 U.S.C. § 6901 et seq.; Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C. § 9601 et seq.; National Environmental Policy Act, 42 U.S.C. § 4321 et seq.;
regulations of the Environmental Protection Agency, any applicable rule of common law and any judicial
interpretation thereof relating primarily to the environment or Hazardous Materials, and any analogous or
comparable state or local laws, regulations or ordinances that concern Hazardous Materials or protection
of the environment.
“Equity Interest” means, with respect to any Person, any share of capital stock of (or other
ownership or profit interests in) such Person, any warrant, option or other right for the purchase or other
acquisition from such Person of any share of capital stock of (or other ownership or profit interests in)
such Person whether or not certificated, any security convertible into or exchangeable for any share of
capital stock of (or other ownership or profit interests in) such Person or warrant, right or option for the
purchase or other acquisition from such Person of such shares (or such other interests), and any other
ownership or profit interest in such Person (including, without limitation, partnership, member or trust
interests therein), whether voting or nonvoting, and whether or not such share, warrant, option, right or
other interest is authorized or otherwise existing on any date of determination.
“Equity Issuance” means any issuance or sale by a Person of any Equity Interest in such Person
and shall in any event include the issuance of any Equity Interest upon the conversion or exchange of any
security constituting Indebtedness that is convertible or exchangeable, or is being converted or
exchanged, for Equity Interests.
“ERISA” means the Employee Retirement Income Security Act of 1974, as in effect from time to
time.
“ERISA Event” means, with respect to the ERISA Group, (a) any “reportable event” as defined
in Section 4043 of ERISA with respect to a Plan (other than an event for which the 30-day notice period
is waived); (b) the withdrawal of a member of the ERISA Group from a 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 that is treated as such a withdrawal under Section 4062(e) of ERISA;
(c) the incurrence by a member of the ERISA Group of any liability with respect to the withdrawal or
partial withdrawal from any Multiemployer Plan; (d) the incurrence by any member of the ERISA Group
of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer
Plan; (e) the institution of proceedings to terminate a Plan or Multiemployer Plan by the PBGC; (f) the
failure by any member of the ERISA Group to make when due required contributions to a Multiemployer
Plan or Plan unless such failure is cured within 30 days or the filing pursuant to Section 412(c) of the
Internal Revenue Code or Section 302(c) of ERISA of an application for a waiver of the minimum
funding standard; (g) any other event or condition that 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
- 10 -
Plan or Multiemployer Plan or the imposition of liability under Section 4069 or 4212(c) of ERISA; (h) the
receipt by any member of the ERISA Group of any notice or the receipt by any Multiemployer Plan from
any member of the ERISA Group of any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent (within the meaning of
Section 4245 of ERISA), in reorganization (within the meaning of Section 4241 of ERISA), or in
“critical” status (within the meaning of Section 432 of the Internal Revenue Code or Section 305 of
ERISA); (i) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due
but not delinquent under Section 4007 of ERISA, upon any member of the ERISA Group or the
imposition of any Lien in favor of the PBGC under Title IV of ERISA; or (j) a determination that a Plan
is, or is reasonably expected to be, in “at risk” status (within the meaning of Section 430 of the Internal
Revenue Code or Section 303 of ERISA).
“ERISA Group” means the Parent, the Borrower, any Subsidiary and all members of a
controlled group of corporations and all trades or businesses (whether or not incorporated) under common
control, which, together with the Borrower or any Subsidiary, are treated as a single employer under
Section 414 of the Internal Revenue Code.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the
Loan Market Association (or any successor person), as in effect from time to time.
“Eurodollar Reserve Percentage” means, for any day, the percentage which is in effect for such
day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any basic, supplemental or
emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a
member bank of the Federal Reserve System in New York City.
“Event of Default” means any of the events specified in Section 10.1., provided that any
requirement for notice or lapse of time (including the expiration of any applicable cure period) or any
other condition has been satisfied, in each case, as specified in such Section.
“Excluded Subsidiary” means any Subsidiary (a) holding title to assets that are or are to become
collateral for any Non-Recourse Indebtedness of such Subsidiary and (b) that is prohibited from
Guarantying the Indebtedness of any other Person pursuant to (i) any document, instrument, or agreement
evidencing such Non-Recourse Indebtedness or (ii) a provision of such Subsidiary’s organizational
documents which provision was included in such Subsidiary’s organizational documents as a condition to
the extension of such Non-Recourse Indebtedness.
“Excluded Swap Obligation” means, with respect to any Loan Party, any Swap Obligation if,
and to the extent that, all or a portion of the liability of such Loan Party for or the Guarantee of such Loan
Party of, or the grant by such Loan Party of a Lien to secure, such Swap Obligation (or any liability or
guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or
order of the Commodity Futures Trading Commission (or the application or official interpretation of any
thereof) by virtue of such Loan Party’s failure for any reason to constitute an “eligible contract
participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the
liability for or the Guarantee of such Loan Party or the grant of such Lien becomes effective with respect
to such Swap Obligation (such determination being made after giving effect to any applicable keepwell,
support or other agreement for the benefit of the applicable Loan Party, including under Section 31 of the
Guaranty). If a Swap Obligation arises under a master agreement governing more than one swap, such
exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which
such Guarantee or Lien is or becomes illegal for the reasons identified in the immediately preceding
sentence of this definition.
- 11 -
“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient
or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured
by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case,
(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office
or, in the case of any Lender, its applicable Lending Office located in, the jurisdiction imposing such Tax
(or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender,
U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with
respect to an applicable interest in a Loan or Commitment pursuant to an Applicable Law in effect on the
date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to
an assignment request by the Borrower under Section 4.6.) or (ii) such Lender changes its lending office,
except in each case to the extent that, pursuant to Section 3.10., amounts with respect to such Taxes were
payable either to such Lender’s assignor immediately before such Lender became a party hereto or to
such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s
failure to comply with Section 3.10.(g) and (d) any U.S. federal withholding Taxes imposed under
FATCA.
“Existing Credit Agreement” has the meaning given such term in the first “WHEREAS” clause
of this Agreement.
“Existing Term Loan” has the meaning given that term in Section 2.2.
“Extended Letter of Credit” has the meaning given that term in Section 2.3.(b).
“Fair Market Value” means, (a) with respect to a security listed on a national securities
exchange or the NASDAQ National Market, the price of such security as reported on such exchange or
market by any widely recognized reporting method customarily relied upon by financial institutions and
(b) with respect to any other property, the price which could be negotiated in an arm’s-length free market
transaction, for cash, between a willing seller and a willing buyer.
“FASB ASC” means the Accounting Standards Codification of the Financial Accounting
Standards Board.
“FATCA” means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this
Agreement (or any amended or successor version that is substantively comparable and not materially
more onerous to comply with) and any current or future regulations or official interpretations thereof and
any agreement entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any fiscal or
regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or
convention among Governmental Authorities entered into in connection with the implementation of the
foregoing.
“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each
day during such period to the weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System, as published for such day (or, if such day is not a Business Day,
for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day which is a Business Day, the average of the quotations for such day on
such transactions received by the Administrative Agent from three Federal Funds brokers of recognized
standing selected by the Administrative Agent. If the Federal Funds Rate determined as provided above
would be less than zero, the Federal Funds Rate shall be deemed to be zero.
- 12 -
“Fee Letter” means that certain fee letter dated as of September 19, 2017, by and among the
Parent, the Borrower, the Lead Arrangers, Bank of America, N.A. and Xxxxx Fargo Bank, National
Association.
“Fees” means, without duplication, the fees and commissions provided for or referred to in
Section 3.5. and any other fees payable by the Borrower hereunder, under any other Loan Document or
under the Fee Letter.
“Fixed Charges” means, with respect to a Person and for a given period, the sum of (a) the
Interest Expense of such Person for such period, plus (b) the aggregate of all regularly scheduled principal
payments on Indebtedness made by such Person during such period (excluding balloon, bullet or similar
payments of principal that repays such Indebtedness in full), plus (c) the aggregate of all Preferred
Dividends paid in cash by such Person during such period. The Parent’s Ownership Share of the Fixed
Charges of its Unconsolidated Affiliates will be included in the calculation of “Fixed Charges”.
“Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person,
and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a
jurisdiction other than that in which the Borrower is resident for tax purposes.
“Fronting Exposure” means, at any time there is a Defaulting Lender that is a Revolving
Lender, (a) with respect to the Issuing Banks, such Defaulting Lender’s Revolving Commitment
Percentage of the outstanding Letter of Credit Liabilities other than Letter of Credit Liabilities as to which
such Defaulting Lender’s participation obligation has been reallocated to other Revolving Lenders or
Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swingline Lenders,
such Defaulting Lender’s Revolving Commitment Percentage of outstanding Swingline Loans other than
Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to
other Revolving Lenders.
“Fund” means any Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its activities.
“Funds from Operations” means “Funds from Operations” as defined in, and calculated
consistent with, the White Paper on Funds from Operations dated April 2002 issued by the National
Association of Real Estate Investment Trusts, Inc., but without giving effect to any supplements,
amendments or other modifications promulgated after the Agreement Date.
“GAAP” means generally accepted accounting principles in the United States of America set
forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board (including Statement of Financial Accounting Standards No. 168, “The FASB Accounting
Standards Codification”) or in such other statements by such other entity as may be approved by a
significant segment of the accounting profession in the United States of America, which are applicable to
the circumstances as of the date of determination.
“Governmental Approvals” means all authorizations, consents, approvals, licenses and
exemptions of, registrations and filings with, and reports to, all Governmental Authorities.
“Governmental Authority” means any national, state or local government (whether domestic or
foreign), any political subdivision thereof or any other governmental, quasi-governmental, judicial,
administrative, public or statutory instrumentality, authority, body, agency, bureau, commission, board,
- 13 -
department or other entity (including, without limitation, the Federal Deposit Insurance Corporation, the
Comptroller of the Currency or the Federal Reserve Board, any central bank or any comparable authority)
or any arbitrator with authority to bind a party at law.
“Guaranteed Obligations” means, collectively, (a) the Obligations and (b) all existing or future
payment and other obligations owing by any Loan Party under any Specified Derivatives Contract (other
than any Excluded Swap Obligation).
“Guarantor” means the Parent.
“Guaranty”, “Guaranteed”, “Guarantying” or to “Guarantee” as applied to any obligation
means and includes: (a) a guaranty (other than by endorsement of negotiable instruments for collection in
the ordinary course of business), directly or indirectly, in any manner, of any part or all of such
obligation, or (b) an agreement, direct or indirect, contingent or otherwise, and whether or not constituting
a guaranty, the practical effect of which is to assure the payment or performance (or payment of damages
in the event of nonperformance) of any part or all of such obligation whether by: (i) the purchase of
securities or obligations, (ii) the purchase, sale or lease (as lessee or lessor) of property or the purchase or
sale of services primarily for the purpose of enabling the obligor with respect to such obligation to make
any payment or performance (or payment of damages in the event of nonperformance) of or on account of
any part or all of such obligation, or to assure the owner of such obligation against loss, (iii) the supplying
of funds to or in any other manner investing in the obligor with respect to such obligation, (iv) repayment
of amounts drawn down by beneficiaries of letters of credit (including Letters of Credit), or (v) the
supplying of funds to or investing in a Person on account of all or any part of such Person’s obligation
under a Guaranty of any obligation or indemnifying or holding harmless, in any way, such Person against
any part or all of such obligation. As the context requires, “Guaranty” shall also mean the guaranty
executed and delivered pursuant to Section 5.1. and substantially in the form of Exhibit B.
“Hazardous Materials” means all or any of the following: (a) substances that are defined or
listed in, or otherwise classified pursuant to, any applicable Environmental Laws as “hazardous
substances”, “hazardous materials”, “hazardous wastes”, “toxic substances” or any other formulation
intended to define, list or classify substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, reproductive toxicity, “TCLP” toxicity, or “EP toxicity”; (b) oil,
petroleum or petroleum derived substances, natural gas, natural gas liquids or synthetic gas and drilling
fluids, produced waters and other wastes associated with the exploration, development or production of
crude oil, natural gas or geothermal resources; (c) any flammable substances or explosive substances or
any radioactive materials; (d) asbestos in any form; and (e) electrical equipment which contains any oil or
dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty parts per million.
“Income Taxes” means all federal, state, local and foreign income and gross receipts taxes.
“Indebtedness,” as applied to any Person (and without duplication), means all of the following,
whether or not considered indebtedness or liabilities under GAAP: (a) all indebtedness, obligations or
other liabilities (whether secured, unsecured, recourse, non-recourse, direct, senior or subordinate) of such
Person for borrowed money; (b) all indebtedness, obligations or other liabilities of such Person evidenced
by Securities or other similar instruments; (c) all reimbursement obligations and other liabilities
(contingent or otherwise) of such Person with respect to letters of credit or banker’s acceptances issued
for such Person’s account or other similar instruments (including bank guaranties, surety bonds, comfort
letters, keep-well agreement and capital maintenance agreements) for which a contingent liability exists,
in each case whether or not the same have been presented for payment; (d) net obligations under any
Derivatives Contract (which shall be deemed to have an amount equal to the Derivatives Termination
Value thereof at such time but in no event shall be less than zero); (e) all obligations of such Person to
- 14 -
pay the deferred purchase price of property or services; (f) all obligations of such Person in respect of
Capital Leases and all Synthetic Lease Obligations and Synthetic Debt of such Person; (g) all
Accommodation Obligations of such Person; (h) all indebtedness, obligations or other liabilities of such
Person or others secured by a Lien on any asset of such Person, whether or not such indebtedness,
obligations or liabilities are assumed by, or are a personal liability of, such Person; and (i) ERISA
obligations of such Person currently due and payable. For purposes of this definition, (x) the amount of
any Capital Lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of
Attributable Indebtedness in respect thereof as of such date and (y) contingent obligations of a Person in
respect of Non-Recourse Exceptions shall not shall not give rise to Indebtedness unless and until such
obligations are no longer contingent.
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to
any payment made by or on account of any obligation of the Borrower or any other Loan Party under any
Loan Document and (b) to the extent not otherwise described in the immediately preceding clause (a),
Other Taxes.
“Intellectual Property” has the meaning given that term in Section 6.1.(q).
“Interest Expense” means, for any period and without duplication, total interest expense,
whether paid, accrued or capitalized (including letter of credit fees, the interest component of Capital
Leases and amortization of deferred financing costs, but excluding interest expense covered by an interest
reserve established under a loan facility) of the Parent, on a consolidated basis and determined in
accordance with GAAP.
“Interest Period” means, with respect to each LIBOR Loan, each period commencing on the
date such LIBOR Loan is made, or in the case of the Continuation of a LIBOR Loan the last day of the
preceding Interest Period for such Loan, and ending on the numerically corresponding day in the first,
third or sixth calendar month thereafter, as the Borrower may select in a Notice of Revolving Borrowing,
the Notice of Term Borrowing, a Notice of Continuation or a Notice of Conversion, as the case may be,
except that each Interest Period that commences on the last Business Day of a calendar month (or on any
day for which there is no numerically corresponding day in the appropriate subsequent calendar month)
shall end on the last Business Day of the appropriate subsequent calendar month. Notwithstanding the
foregoing: (a) if any Interest Period for a Class of Loans would otherwise end after the Termination Date
for such Class of Loans, such Interest Period shall end on the Termination Date for such Class of Loans
and (b) each Interest Period that would otherwise end on a day which is not a Business Day shall end on
the immediately following Business Day (or, if such immediately following Business Day falls in the next
calendar month, on the immediately preceding Business Day).
“Internal Revenue Code” means the Internal Revenue Code of 1986.
“Investment” means, with respect to any Person, any acquisition or investment (whether or not
of a controlling interest) by such Person, by means of any of the following: (a) the purchase or other
acquisition of any Equity Interest in another Person, (b) a loan, advance or extension of credit to, capital
contribution to, Guaranty of Indebtedness of, or purchase or other acquisition of any Indebtedness of,
another Person, including any partnership or joint venture interest in such other Person, or (c) the
purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person
that constitute the business or a division or operating unit of another Person. Any irrevocable
commitment to make an Investment in any other Person, as well as any option of another Person to
require an Investment in such Person, shall constitute an Investment. Except as expressly provided
otherwise, for purposes of determining compliance with any covenant contained in a Loan Document, the
- 15 -
amount of any Investment shall be the amount actually invested, without adjustment for subsequent
increases or decreases in the value of such Investment.
“ISP98” means the International Standby Practices (1998 Revision, effective January 1, 1999),
International Chamber of Commerce Publication No. 590.
“Issuing Banks” means each of Xxxxx Fargo and Bank of America, N.A., each in its capacity as
an issuer of Letters of Credit pursuant to Section 2.3.
“L/C Commitment Amount” has the meaning given to that term in Section 2.3.(a).
“L/C Disbursement” has the meaning given to that term in Section 3.9.(b).
“Lender” means each financial institution from time to time party hereto as a “Lender;” together
with its respective successors and permitted assigns, and (a) as the context requires, includes the
Swingline Lenders, but (b) except as otherwise expressly provided herein, shall exclude any Lender (or its
Affiliates) in its capacity as a Specified Derivatives Provider.
“Lender Parties” means, collectively, the Administrative Agent, the Lenders, the Issuing Banks,
the Specified Derivatives Providers, each co-agent or sub-agent appointed by the Administrative Agent
from time to time pursuant to Section 11.5., any other holder from time to time of any of any Obligations
and, in each case, their respective successors and permitted assigns.
“Lending Office” means, for each Lender and for each Type of Loan, the office of such Lender
specified in such Lender’s Administrative Questionnaire or in the applicable Assignment and
Assumption, or such other office of such Lender as such Lender may notify the Administrative Agent in
writing from time to time.
“Letter of Credit” has the meaning given that term in Section 2.3.(a).
“Letter of Credit Collateral Account” means a special deposit account maintained by the
Administrative Agent, for the benefit of the Administrative Agent, the Issuing Banks and the Revolving
Lenders, and under the sole dominion and control of the Administrative Agent.
“Letter of Credit Documents” means, with respect to any Letter of Credit, collectively, any
application therefor, any certificate or other document presented in connection with a drawing under such
Letter of Credit and any other agreement, instrument or other document governing or providing for (a) the
rights and obligations of the parties concerned or at risk with respect to such Letter of Credit or (b) any
collateral security for any of such obligations.
“Letter of Credit Liabilities” means, without duplication, at any time and in respect of any
Letter of Credit, the sum of (a) the Stated Amount of such Letter of Credit plus (b) the aggregate unpaid
principal amount of all Reimbursement Obligations of the Borrower at such time due and payable in
respect of all drawings made under such Letter of Credit. For purposes of this Agreement, a Revolving
Lender (other than the Revolving Lender then acting as Issuing Bank with respect to the related Letter of
Credit) shall be deemed to hold a Letter of Credit Liability in an amount equal to its participation interest
under Section 2.3. in the related Letter of Credit, and the Revolving Lender then acting as Issuing Bank
with respect to such related letter of Credit shall be deemed to hold a Letter of Credit Liability in an
amount equal to its retained interest in the related Letter of Credit after giving effect to the acquisition by
the Revolving Lenders (other than the Revolving Lender then acting as Issuing Bank with respect to such
related Letter of Credit) of their participation interests under such Section. For all purposes of this
- 16 -
Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount
may still be drawn thereunder by reason of the operation of Rule 3.14 of ISP98, such Letter of Credit
shall be deemed to be “outstanding” in the amount so remaining available to be drawn.
“Level” has the meaning given that term in the definition of the term “Applicable Margin.”
“LIBOR” means, with respect to any LIBOR Loan for any Interest Period, the rate of interest
obtained by dividing (i) the rate of interest per annum determined on the basis of the rate as set by the ICE
Benchmark Administration (“ICE”) (or the successor to ICE if ICE is no longer making such rate
available) for deposits in Dollars for a period equal to the applicable Interest Period which appears on
Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London
time) two Business Days prior to the first day of the applicable Interest Period by (ii) a percentage equal
to 1 minus the Eurodollar Reserve Percentage. If, for any reason, the rate referred to in the preceding
clause (i) does not appear on Reuters Screen LIBOR01 Page (or any applicable successor page), then the
rate to be used for such clause (i) shall be determined by the Administrative Agent to be the arithmetic
average of the rate per annum at which deposits in Dollars would be offered by first class banks in the
London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of the applicable Interest Period for a period equal to such Interest
Period. Any change in the maximum rate or reserves described in the preceding clause (ii) shall result in
a change in LIBOR on the date on which such change in such maximum rate becomes effective. If
LIBOR determined as provided above would be less than zero, LIBOR shall be deemed to be zero unless
LIBOR is being determined with respect to a LIBOR Loan that is a Term Loan that has been identified to
the Administrative Agent by the Borrower in accordance with the terms of this Agreement as being
subject to a Derivatives Contract that has been entered into to hedge against fluctuations in interest rates.
“LIBOR Loan” means a Revolving Loan or Term Loan (or portion thereof) (other than a Base
Rate Loan) bearing interest at a rate based on LIBOR.
“LIBOR Market Index Rate” means, for any day, LIBOR as of that day that would be
applicable for a LIBOR Loan having a one-month Interest Period determined at approximately 10:00 a.m.
Central time for such day (rather than 11:00 a.m. (London time) two Business Days prior to the first day
of such Interest Period as otherwise provided in the definition of “LIBOR”), or if such day is not a
Business Day, the immediately preceding Business Day. The LIBOR Market Index Rate shall be
determined on a daily basis.
“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, deposit
arrangement, security interest, encumbrance (including, but not limited to, easements, rights-of-way,
zoning restrictions and the like), lien (statutory or other), preference, priority or other security agreement
of any kind or nature whatsoever, including without limitation 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, and the filing of any financing statement (other than a
financing statement (a) filed by a “true” lessor pursuant to Section 9-408 of the Uniform Commercial
Code or (b) the filing of which was not authorized pursuant to Section 9-509 of the Uniform Commercial
Code) naming the owner of the asset to which such Lien relates as debtor, under the Uniform Commercial
Code or other comparable law of any jurisdiction.
“Loan” means a Revolving Loan, a Term Loan or a Swingline Loan.
“Loan Document” means this Agreement, each Note, the Guaranty, each Letter of Credit
Document and each other document or instrument now or hereafter executed and delivered by a Loan
- 17 -
Party in connection with, pursuant to or relating to this Agreement (other than the Fee Letter and any
Specified Derivatives Contract).
“Loan Party” means each of the Borrower, the Parent and each other Person who guarantees all
or a portion of the Obligations and/or who pledges any collateral to secure all or a portion of the
Obligations.
“Manufactured Home Inventory Value” means with respect to any Person, as of any date of
determination, the lesser of (a) the total cost to such Person of all manufactured home units, which have
never been occupied (other than for short periods in the ordinary course of such Person’s customary sales
practices), then owned by such Person that were acquired new from the manufacturers of such units, or
from Persons who acquired such units new from such manufacturers, within the one-year period
immediately preceding the date of determination and (b) $35,000,000.
“Material Adverse Effect” means (a) a materially adverse change in, or a materially adverse
effect on the operations, business, assets, properties, liabilities (actual or contingent), or financial
condition of the Parent, the Borrower and the other Subsidiaries taken as a whole; (b) a material
impairment of (i) the rights and remedies of the Lenders, the Issuing Banks and the Administrative Agent
under any of the Loan Documents or (ii) the ability of the Parent, the Borrower or any other Loan Party to
perform its respective obligations under the Loan Documents to which such Loan Party is a party; or (c) a
materially adverse effect on the validity or enforceability of any of the Loan Documents.
“Material Acquisition” means any acquisition (whether by direct purchase, merger or otherwise
and whether in one or more related transactions) by the Borrower or any Subsidiary in which the purchase
price of the assets acquired exceeds 5% of Total Asset Value.
“Mezzanine Debt Investments” mean any mezzanine or subordinated mortgage loans made by
the Borrower, any of its Subsidiaries or any of its Unconsolidated Affiliates to entities that own
commercial real estate (or to Persons holding Equity Interests in such entities), which real estate has a
Fair Market Value in excess of the aggregate amount of such mortgage loans and any senior Indebtedness
secured by a Lien on such real estate on the date when such mortgage loan was made or acquired by the
Borrower, such Subsidiary or such Unconsolidated Affiliate and which has been designated by the Parent
as a “Mezzanine Debt Investment” in its most recent Compliance Certificate; provided, however, that if
any such mortgage loans are owed by a Subsidiary or an Unconsolidated Affiliate, then the amount of
Mezzanine Debt Investments attributable to such mortgage loans shall be limited to the Parent’s
Ownership Share of such Subsidiary or Unconsolidated Affiliate, as the case may be.
“Moody’s” means Xxxxx’x Investors Service, Inc. and its successors.
“Mortgage Receivable” means a promissory note secured by a mortgage, deed of trust, deed to
secure debt or similar security instrument made by a Person owning an interest in real estate granting a
Lien on such interest in real estate as security for the payment of Indebtedness of which the Parent, the
Borrower or another Subsidiary is the holder and retains the rights of collection of all payments
thereunder.
“Multiemployer Plan” means at any time a multiemployer plan within the meaning of Section
4001(a)(3) of ERISA to which any member of the ERISA Group is then making or accruing an obligation
to make contributions or has within the preceding six plan years made contributions, including for these
purposes any Person which ceased to be a member of the ERISA Group during such six year period.
- 18 -
“Negative Pledge” means, with respect to a given asset, any provision of a document, instrument
or agreement (other than any Loan Document or Specified Derivatives Contract) which prohibits or
purports to prohibit the creation or assumption of any Lien on such asset as security for Indebtedness of
the Person owning such asset or any other Person; provided, however, that an agreement that conditions a
Person’s ability to encumber its assets upon the maintenance of one or more specified ratios that limit
such Person’s ability to encumber its assets but that do not generally prohibit the encumbrance of its
assets, or the encumbrance of specific assets, shall not constitute a Negative Pledge.
“Net Income” means, for any period, the net income (or loss) after Income Taxes of the Parent,
on a consolidated basis, for such period calculated in conformity with GAAP; provided, however, that Net
Income shall not include the net income (or loss) of Unconsolidated Affiliates.
“Net Operating Income” means, for any Qualifying Unencumbered Property and for a given
period, the sum of the following (without duplication and determined on a consistent basis with prior
periods): (a) rents and other revenues received in the ordinary course from such Property (including
proceeds from rent loss or business interruption insurance but excluding pre-paid rents and revenues and
security deposits except, in each case, to the extent applied in satisfaction of tenants’ obligations for rent)
minus (b) all expenses paid (excluding interest but including an appropriate accrual for property taxes and
insurance) related to the ownership, operation or maintenance of such Property, including but not limited
to, property taxes, assessments and the like, insurance, utilities, payroll costs, maintenance, repair and
landscaping expenses, marketing expenses, management fees and general and administrative expenses
(including an appropriate allocation for legal, accounting, advertising, marketing, management fees and
other expenses incurred in connection with such Property, but specifically excluding general overhead
expenses of the Parent or the Borrower).
“Net Proceeds” means with respect to an Equity Issuance by a Person, the aggregate amount of
all cash and the Fair Market Value of all other property (other than securities of such Person being
converted or exchanged in connection with such Equity Issuance) received by such Person in respect of
such Equity Issuance net of investment banking fees, legal fees, accountants’ fees, underwriting discounts
and commissions and other customary fees and expenses actually incurred by such Person in connection
with such Equity Issuance.
“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or
amendment that (a) requires the approval of all affected Lenders in accordance with the terms of
Section 12.6.(b) and (b) has been approved by the Requisite Lenders.
“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at
such time.
“Non-Recourse Exceptions” means, with respect to Non-Recourse Indebtedness, exceptions for
fraud, misrepresentation, misapplication of cash, waste, environmental claims and liabilities and other
circumstances customarily excluded by institutional lenders from exculpation provisions and/or included
in separate indemnification agreements in non-recourse financing of real estate.
“Non-Recourse Indebtedness” means any single loan with respect to which recourse for
payment is limited to specific assets related to a particular Property or group of Properties encumbered by
a Lien securing such Indebtedness; provided, however, that personal recourse to the Parent, the Borrower
or any Subsidiary by a holder of any such loan for Non-Recourse Exceptions shall not, by itself, prevent
such loan from being characterized as Non-Recourse Indebtedness.
“Note” means a Revolving Note, a Term Note or a Swingline Note.
- 19 -
“Notice of Continuation” means a notice substantially in the form of Exhibit D (or such other
form reasonably acceptable to the Administrative Agent and containing the information required in such
Exhibit) to be delivered to the Administrative Agent pursuant to Section 2.9. evidencing the Borrower’s
request for the Continuation of a LIBOR Loan.
“Notice of Conversion” means a notice substantially in the form of Exhibit E (or such other form
reasonably acceptable to the Administrative Agent and containing the information required in such
Exhibit) to be delivered to the Administrative Agent pursuant to Section 2.10. evidencing the Borrower’s
request for the Conversion of a Loan from one Type to another Type.
“Notice of Revolving Borrowing” means a notice substantially in the form of Exhibit C (or such
other form reasonably acceptable to the Administrative Agent and containing the information required in
such Exhibit) to be delivered to the Administrative Agent pursuant to Section 2.1.(b) evidencing the
Borrower’s request for a borrowing of Revolving Loans.
“Notice of Swingline Borrowing” means a notice substantially in the form of Exhibit F (or such
other form reasonably acceptable to the Administrative Agent and containing the information required in
such Exhibit) to be delivered to a Swingline Lender pursuant to Section 2.4.(b) evidencing the Borrower’s
request for a Swingline Loan.
“Notice of Term Borrowing” means a notice substantially in the form of Exhibit M (or such
other form reasonably acceptable to the Administrative Agent and containing the information required in
such Exhibit) to be delivered to the Administrative Agent pursuant to Section 2.2. evidencing the
Borrower’s request for the borrowing of the Term Loans.
“Obligations” means, individually and collectively: (a) the aggregate principal balance of, and all
accrued and unpaid interest on, all Loans; (b) all Reimbursement Obligations and all other Letter of
Credit Liabilities; and (c) all other indebtedness, liabilities, obligations, covenants and duties of the
Borrower and the other Loan Parties owing to the Administrative Agent, any Issuing Bank or any Lender
of every kind, nature and description, under or in respect of this Agreement or any of the other Loan
Documents, including, without limitation, the Fees and indemnification obligations, whether direct or
indirect, absolute or contingent, due or not due, contractual or tortious, liquidated or unliquidated, and
whether or not evidenced by any promissory note. For the avoidance of doubt, “Obligations” shall not
include any indebtedness, liabilities, obligations, covenants or duties in respect of Specified Derivatives
Contracts.
“Occupancy Rate” means, with respect to a Property at any time, the ratio, expressed as a
percentage, of (a) the total number of leasing sites, camp sites, rental units or similar units at such
Property actually occupied by tenants that are not Affiliates of the Parent and paying rent at rates not
materially less than rates generally prevailing at the time the applicable lease was entered into, pursuant to
binding leases as to which no monetary default has occurred and has continued unremedied for 30 or
more days, to (b) the aggregate number of leasing sites, camp sites, rental units or similar units at such
Property.
“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a
present or former connection between such Recipient and the jurisdiction imposing such Tax (other than
connections arising from such Recipient having executed, delivered, become a party to, performed its
obligations under, received payments under, received or perfected a security interest under, engaged in
- 20 -
any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any
Loan or Loan Document).
“Other Taxes” means all present or future stamp, court or documentary, intangible, recording,
filing or similar Taxes that arise from any payment made under, from the execution, delivery,
performance, enforcement or registration of, from the receipt or perfection of a security interest under, or
otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes
imposed with respect to an assignment (other than an assignment made pursuant to Section 4.6.).
“Ownership Share” means, except as otherwise provided in Section 1.3.(b), with respect to any
Subsidiary of a Person (other than a Wholly Owned Subsidiary) or any Unconsolidated Affiliate of a
Person, the greater of (a) such Person’s relative nominal direct and indirect ownership interest (expressed
as a percentage) in such Subsidiary or Unconsolidated Affiliate or (b) subject to compliance with
Section 8.4.(j), such Person’s relative direct and indirect economic interest (calculated as a percentage) in
such Subsidiary or Unconsolidated Affiliate determined in accordance with the applicable provisions of
the declaration of trust, articles or certificate of incorporation, articles of organization, partnership
agreement, joint venture agreement or other applicable organizational document of such Subsidiary or
Unconsolidated Affiliate.
“Parent” has the meaning set forth in the introductory paragraph hereof and shall include the
Parent’s successors and permitted assigns.
“Participant” has the meaning given that term in Section 12.5.(d).
“Participant Register” has the meaning given that term in Section 12.5.(d).
“Partnership Agreement” means the Second Amended and Restated Agreement of Limited
Partnership dated as of March 15, 1996 for the Borrower.
“Patriot Act” means The Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56 (signed into
law October 26, 2001)).
“PBGC” means the Pension Benefit Guaranty Corporation and any successor agency.
“Permitted Liens” means, with respect to any asset or property of a Person, (a)(i) Liens securing
taxes, assessments and other charges or levies imposed by any Governmental Authority (excluding any
Lien imposed pursuant to any of the provisions of ERISA or pursuant to any Environmental Laws) or
(ii) the claims of materialmen, mechanics, carriers, warehousemen or landlords for labor, materials,
supplies or rentals incurred in the ordinary course of business, which, if unpaid, might become a Lien on
any properties of such Person, in each case being contested in good faith by appropriate proceedings
which operate to suspend the collection thereof and for which adequate reserves have been established on
the books of such Person, in accordance with GAAP; (b) Liens consisting of deposits or pledges made in
connection with, or to secure payment of, obligations under workers’ compensation, unemployment
insurance or similar Applicable Laws, the performance of bids, trade contracts and leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in the case
of each of the foregoing, in each case, incurred in the ordinary course of business and not otherwise
securing Indebtedness; (c) Liens consisting of encumbrances in the nature of zoning restrictions,
easements, and rights or restrictions of record on the use of real property, which do not materially detract
from the value of such property or impair the intended use thereof in the business of such Person; (d) the
rights of tenants under leases or subleases not interfering with the ordinary conduct of business of such
- 21 -
Person; and (e) Liens in favor of the Administrative Agent for its benefit and the benefit of the Lender
Parties.
“Person” means any natural person, corporation, limited partnership, general partnership, joint
stock company, limited liability company, limited liability partnership, joint venture, association,
company, trust, bank, trust company, land trust, business trust or other organization, whether or not a
legal entity, or any other nongovernmental entity, or any Governmental Authority.
“Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan)
which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of
the Internal Revenue Code and either (a) is maintained, or contributed to, by any member of the ERISA
Group for employees of any member of the ERISA Group or (b) has at any time within the preceding six
years been maintained, or contributed to, by any Person which was at such time a member of the ERISA
Group for employees of any Person which was at such time a member of the ERISA Group.
“Post-Default Rate” means (a) with respect to any principal of any Loan or any Reimbursement
Obligation, the interest rate otherwise applicable to such Loan or Reimbursement Obligation plus an
additional two percent (2.0%) per annum and (b) with respect to any other Obligation, a rate per annum
equal to the Base Rate as in effect from time to time plus the Applicable Margin for Revolving Loans that
are Base Rate Loans plus two percent (2.0%).
“Preferred Dividends” means, for any period and without duplication, all Restricted Payments
paid during such period on Preferred Stock issued by the Parent or any of its Subsidiaries. Preferred
Dividends shall not include dividends or distributions (a) paid or payable solely in Equity Interests (other
than Equity Interest convertible into Indebtedness) payable to holders of such class of Equity Interests,
(b) paid or payable to the Parent or any of its Subsidiaries, or (c) constituting or resulting in the
redemption of Preferred Stock, other than scheduled redemptions not constituting balloon, bullet or
similar redemptions in full.
“Preferred Stock” means, with respect to any Person, shares of capital stock of, or other Equity
Interests in, such Person which are entitled to preference or priority over any other capital stock of, or
other Equity Interest in, such Person in respect of the payment of dividends or distribution of assets upon
liquidation or both.
“Prime Rate” means, at any time, the rate of interest per annum publicly announced from time to
time by the Lender then acting as the Administrative Agent as its prime rate. Each change in the Prime
Rate shall be effective as of the opening of business on the day such change in such prime rate occurs.
The parties hereto acknowledge that the rate announced publicly by the Lender acting as Administrative
Agent as its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged
to its customers or other banks.
“Principal Office” means the office of the Administrative Agent located at 000 Xxxxx 0xx Xx., 0xx
Xxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000 or any other subsequent office that the Administrative Agent shall
have specified by written notice to the Borrower and the Lenders as the Principal Office.
“Pro Rata Share” means, as to each Lender, the ratio, expressed as a percentage of (a)(i) the
amount of such Lender’s Revolving Commitment plus (ii) the aggregate outstanding principal amount of
such Lender’s Term Loan, if any, to (b)(i) the aggregate amount of the Revolving Commitments of all
Lenders plus (ii) the aggregate amount of all outstanding Term Loans; provided, however, that if at the
time of determination the Revolving Commitments have terminated or been reduced to zero, the “Pro
Rata Share” of a Lender shall be the ratio, expressed as a percentage of (A) the sum of the unpaid
- 22 -
principal amount of all outstanding Loans and Letter of Credit Liabilities owing to such Lender as of such
date to (B) the sum of the aggregate unpaid principal amount of all outstanding Loans and Letter of Credit
Liabilities of all Lenders as of such date. If at the time of determination the Revolving Commitments
have terminated and there are no outstanding Loans or Letter of Credit Liabilities, then the Pro Rata
Shares of the Lenders shall be determined as of the most recent date on which any Loans and/or Letters of
Credit Liabilities were outstanding. For purposes of this definition, a Revolving Lender shall be deemed
to hold a Swingline Loan or a Letter of Credit Liability to the extent such Revolving Lender has acquired
a participation therein under the terms of this Agreement and has not failed to perform its obligations in
respect of such participation.
“Property” means a parcel (or group of related parcels) of real property owned or leased by the
Parent, the Borrower, any other Loan Party, any other Subsidiary or any Unconsolidated Affiliate.
“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has
total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security
interest becomes effective with respect to such Swap Obligation or such other person as constitutes an
“eligible contract participant” under the Commodity Exchange Act or any regulations promulgated
thereunder and can cause another person to qualify as an “eligible contract participant” at such time by
entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
“Qualified Plan” means a Benefit Arrangement that is intended to be tax-qualified under
Section 401(a) of the Internal Revenue Code.
“Qualifying Unencumbered Property” means (a) the Properties listed on Schedule 1.1. and
(b) any Property designated by Borrower from time to time pursuant to Section 8.8. which satisfies all of
the following requirements: (i) such Property is a Designated Use Property; (ii) such Property is owned in
fee simple entirely by the Borrower or any Wholly Owned Subsidiary of the Borrower; (iii) such Property
is located in a state of the United States of America, in the District of Columbia, in Canada or in Mexico;
(iv) regardless of whether such Property is owned by the Borrower or a Wholly Owned Subsidiary of the
Borrower, the Borrower has the right directly, or indirectly through a Subsidiary, to take the following
actions without the need to obtain the consent of any Person: (A) to create Liens on such Property as
security for Indebtedness of the Borrower or such Subsidiary, as applicable, and (B) to sell, transfer or
otherwise dispose of such Property; (v) neither such Property, nor if such Property is owned by a Wholly
Owned Subsidiary of the Borrower, any of the Borrower’s direct or indirect ownership interest in such
Subsidiary, is subject to (A) any Lien other than Permitted Liens or (B) any Negative Pledge; and
(vi) such Property is free of all structural defects, title defects, environmental conditions or other adverse
matters except for defects, conditions or matters which do not materially detract from the value of such
Property or impair the intended use thereof in the business of the applicable Qualifying Unencumbered
Property Owner. A Property (including any Property set forth on Schedule 1.1.) shall cease to be a
“Qualifying Unencumbered Property” at such time as it fails to satisfy any of the conditions set forth in
clauses (i) through (vi) of this definition. In addition, the Borrower may, upon at least 15 Business Days
prior written notice to the Administrative Agent, designate that any Qualifying Unencumbered Property
shall no longer be considered a Qualifying Unencumbered Property (and upon such designation, such
Property shall no longer be a Qualifying Unencumbered Property).
“Qualifying Unencumbered Property Owner” means any Subsidiary of the Parent which owns
a Qualifying Unencumbered Property.
“Recipient” means (a) the Administrative Agent, (b) any Lender and (c) any Issuing Bank, as
applicable.
- 23 -
“Recourse Indebtedness” means, with respect to any Person, Indebtedness which is not Non-
Recourse Indebtedness.
“Register” has the meaning given that term in Section 12.5.(c).
“Regulatory Change” means, with respect to any Lender, any change effective after the
Agreement Date in Applicable Law (including without limitation, Regulation D of the Board of
Governors of the Federal Reserve System) or the adoption or making after such date of any interpretation,
directive or request applying to a class of banks, including such Lender, of or under any Applicable Law
(whether or not having the force of law and whether or not failure to comply therewith would be
unlawful) by any Governmental Authority or monetary authority charged with the interpretation or
administration thereof or compliance by any Lender with any request or directive regarding capital
adequacy or liquidity. Notwithstanding anything herein to the contrary, (a) the Xxxx-Xxxxx Xxxx Street
Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued
in connection therewith and (b) all requests, rules, guidelines or directives promulgated by the Bank for
International Settlements, the Basel Committee on Banking Supervision (or any successor or similar
authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in
each case be deemed to be a “Regulatory Change”, regardless of the date enacted, adopted or issued.
“Reimbursement Obligation” means the absolute, unconditional and irrevocable obligation of
the Borrower to reimburse an Issuing Bank for any drawing honored by such Issuing Bank under a Letter
of Credit.
“REIT” means a Person qualifying for treatment as a “real estate investment trust” under the
Internal Revenue Code.
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners,
shareholders, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.
“Requisite Class Lenders” means, as of any date of determination, (a) in the case of Revolving
Lenders, Revolving Lenders (i) having more than 50.0% of the aggregate amount of the Revolving
Commitments or (ii) if the Revolving Commitments have terminated, holding more than 50.0% of the
principal amount of the aggregate outstanding Revolving Loans, outstanding Letter of Credit Liabilities
and Swingline Loans and (b) in the case of Term Loan Lenders, Term Loan Lenders holding more than
50.0% of the principal amount of the aggregate outstanding Term Loans; provided that (i) in determining
such percentage at any given time, all then existing Defaulting Lenders of such Class will be disregarded
and excluded, and (ii) at all times when two or more Lenders (excluding Defaulting Lenders) of such
Class are party to this Agreement, the term “Requisite Class Lenders” shall in no event mean less than
two Lenders of such Class. For purposes of this definition, a Revolving Lender shall be deemed to hold a
Swingline Loan or a Letter of Credit Liability to the extent such Lender has acquired a participation
therein under the terms of this Agreement and has not failed to perform its obligations in respect of such
participation.
“Requisite Lenders” means, as of any date, (a) Lenders having more than 50.0% of the
aggregate amount of the Revolving Commitments and the principal amount of the aggregate outstanding
Term Loans, or (b) if the Revolving Commitments have been terminated or reduced to zero, Lenders
holding more than 50.0% of the principal amount of the aggregate outstanding Loans and Letter of Credit
Liabilities; provided that (i) in determining such percentage at any given time, all then existing Defaulting
Lenders will be disregarded and excluded, and (ii) at all times when two or more Lenders (excluding
Defaulting Lenders) are party to this Agreement, the term “Requisite Lenders” shall in no event mean less
- 24 -
than two Lenders. For purposes of this definition, a Revolving Lender shall be deemed to hold a
Swingline Loan or a Letter of Credit Liability to the extent such Lender has acquired a participation
therein under the terms of this Agreement and has not failed to perform its obligations in respect of such
participation.
“Responsible Officer” means with respect to the Parent, the Borrower or any Subsidiary, the
chief executive officer, the president, the chief financial officer, any senior vice president, any executive
vice president and any vice president of the Parent, the Borrower or such Subsidiary.
“Restricted Payment” means (a) any dividend or other distribution, direct or indirect, on account
of any Equity Interest of the Parent, the Borrower, or any other Subsidiary now or hereafter outstanding,
except a dividend or other distributions payable solely in shares of that class of Equity Interests to the
holders of that class; (b) any redemption, conversion, exchange, retirement, sinking fund or similar
payment, purchase or other acquisition for value, direct or indirect, of any shares of any Equity Interest of
the Parent, the Borrower or any other Subsidiary now or hereafter outstanding, except any redemption,
repurchase, conversion or exchange of shares of any class payable solely in common stock of such entity;
and (c) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire any Equity Interests of the Parent, the Borrower or any other Subsidiary now or
hereafter outstanding.
“Revolving Commitment” means, as to each Revolving Lender, such Lender’s obligation to
make Revolving Loans pursuant to Section 2.1., to issue (in the case of an Issuing Bank) and to
participate (in the case of the other Revolving Lenders) in Letters of Credit pursuant to Section 2.3.(i),
and to participate in Swingline Loans pursuant to Section 2.4.(e), in an amount up to, but not exceeding
the amount set forth for such Lender on Schedule I as such Lender’s “Revolving Commitment” or as set
forth in any applicable Assignment and Assumption, or agreement executed by a Person becoming a
Revolving Lender in accordance with Section 2.16., as the same may be reduced from time to time
pursuant to Section 2.12. or increased or reduced as appropriate to reflect any assignments to or by such
Lender effected in accordance with Section 12.5.
“Revolving Commitment Percentage” means, as to each Revolving Lender, the ratio, expressed
as a percentage, of (a) the amount of such Lender’s Revolving Commitment to (b) the aggregate amount
of all of the Revolving Commitments; provided, however, that if at the time of determination the
Revolving Commitments have been terminated or been reduced to zero, the “Revolving Commitment
Percentage” of each Revolving Lender shall be the “Revolving Commitment Percentage” of such Lender
in effect immediately prior to such termination or reduction.
“Revolving Credit Exposure” means, as to any Revolving Lender at any time, the aggregate
principal amount at such time of its outstanding Revolving Loans and such Revolving Lender’s
participation in Letter of Credit Liabilities and Swingline Loans at such time.
“Revolving Lender” means a Lender having a Revolving Commitment, or if the Revolving
Commitments have terminated, holding any Revolving Loans.
“Revolving Loan” means a loan made by a Revolving Lender to the Borrower pursuant to
Section 2.1.(a).
“Revolving Note” means a promissory note of the Borrower substantially in the form of
Exhibit G, payable to the order of a Revolving Lender in a principal amount equal to the amount of such
Revolving Lender’s Commitment.
- 25 -
“Revolving Termination Date” means October 27, 2021, as such date may be extended pursuant
to Section 2.13.
“Sanctioned Country” means, at any time, a country, territory or region which is, or whose
government is, the subject or target of any Sanctions.
“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of
designated Persons maintained by any Governmental Authority of the United States of America,
including without limitation, OFAC or the U.S. Department of State, or by the United Nations Security
Council, Her Majesty’s Treasury, the European Union or any other Governmental Authority, (b) any
Person located, operating, organized or resident in a Sanctioned Country, (c) an agency of the government
of a Sanctioned Country or (d) any Person Controlled by any Person or agency described in any of the
preceding clauses (a) through (c).
“Sanctions” means any sanctions or trade embargoes imposed, administered or enforced by any
Governmental Authority of the United States of America, including without limitation, OFAC or the U.S.
Department of State, or by the United Nations Security Council, Her Majesty’s Treasury, the European
Union or any other Governmental Authority.
“SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.
“Secured Debt” means Indebtedness, the payment of which is secured by a Lien on any property;
provided, however, that, except for purposes of the representation contained in the last sentence of
Section 6.1.(g), any Indebtedness that is secured only by a pledge of Equity Interests shall not be
considered to be Secured Debt.
“Securities” means any stock, partnership interests, shares, shares of beneficial interest, voting
trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as “securities,” or
any certificates of interest, shares, or participations in temporary or interim certificates for the purchase or
acquisition of, or any right to subscribe to, purchase or acquire any of the foregoing, but shall not include
any evidence of the Obligations.
“Securities Act” means the Securities Act of 1933, together with all rules and regulations issued
thereunder.
“Solvent” means, when used with respect to any Person, that (a) the fair value and the fair salable
value of its assets (taken as a going concern) are each in excess of the fair valuation of its total liabilities
(including all contingent liabilities computed at the amount which, in light of all facts and circumstances
existing at such time, represents the amount that could reasonably be expected to become an actual and
matured liability); (b) such Person is generally able to pay its debts or other obligations in the ordinary
course as they mature; and (c) such Person has capital not unreasonably small to carry on its business and
all business in which it proposes to be engaged.
“Specified Derivatives Contract” means any Derivatives Contract, together with any
Derivatives Support Document relating thereto, that is made or entered into at any time, or in effect at any
time now or hereafter, whether as a result of an assignment or transfer or otherwise, between the Parent,
the Borrower, any other Loan Party or any other Subsidiary and any Specified Derivatives Provider.
- 26 -
“Specified Derivatives Obligations” means all indebtedness, liabilities, obligations, covenants
and duties of the Parent, the Borrower, any other Loan Party or any other Subsidiary under or in respect
of any Specified Derivatives Contract, whether direct or indirect, absolute or contingent, due or not due,
liquidated or unliquidated, and whether or not evidenced by any written confirmation.
“Specified Derivatives Provider” means any Person that (a) at the time it enters into a Specified
Derivatives Contract with a Loan Party, is a Lender or an Affiliate of a Lender or (b) at the time it (or its
Affiliate) becomes a Lender or the Administrative Agent (including on the Effective Date), is a party to a
Specified Derivatives Contract with a Loan Party, in each case in its capacity as a party to such Specified
Derivatives Contract.
“S&P” means S&P Global Ratings, a business unit of Standard & Poor’s Financial Services LLC
business, or any successor.
“Stated Amount” means the amount available to be drawn by a beneficiary under a Letter of
Credit from time to time, as such amount may be increased or reduced from time to time in accordance
with the terms of such Letter of Credit; provided, however, that with respect to any Letter of Credit that,
by its terms or the terms of any Letter of Credit Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to
be the amount of the maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time.
“Subsidiary” means, for any Person, any corporation, partnership, limited liability company or
other entity of which at least a majority of the Equity Interests having by the terms thereof ordinary voting
power to elect a majority of the board of directors or other individuals performing similar functions of
such corporation, partnership, limited liability company or other entity (without regard to the occurrence
of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or
more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person, and
shall include all Persons the accounts of which are consolidated with those of such Person pursuant to
GAAP.
“Swap Obligation” means, with respect to the Guarantor, any obligation to pay or perform under
any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of
the Commodity Exchange Act.
“Swingline Availability” has the meaning given that term in Section 2.4(a).
“Swingline Commitment” means each Swingline Lender’s obligation to make Swingline Loans
pursuant to Section 2.4. in an amount up to, but not exceeding the amount set forth in the first sentence of
Section 2.4.(a), as such amount may be reduced from time to time in accordance with the terms hereof.
“Swingline Lenders” means each of Xxxxx Fargo and Bank of America, N.A., together with their
respective successors and assigns.
“Swingline Loan” means a loan made by a Swingline Lender to the Borrower pursuant to
Section 2.4.
“Swingline Maturity Date” means the date which is 5 Business Days prior to the Revolving
Termination Date.
- 27 -
“Swingline Note” means a promissory note of the Borrower substantially in the form of
Exhibit H, payable to the order of a Swingline Lender in a principal amount equal to the amount of the
Swingline Commitment as originally in effect and otherwise duly completed.
“Synthetic Debt” means, with respect to any Person as of any date of determination thereof, all
obligations of such Person in respect of transactions entered into by such Person that are intended to
function primarily as a borrowing of funds (including any minority interest transactions that function
primarily as a borrowing) but are not otherwise included in the definition of “Indebtedness” or as a
liability on the consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP.
“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-called
synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of
property (including sale and leaseback transactions), in each case, creating obligations that do not appear
on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such
Person, would be characterized as the indebtedness of such Person (without regard to accounting
treatment).
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings
(including backup withholding), assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable thereto.
“Term Loan” means the Existing Term Loan and any Additional Term Loans made pursuant to
Section 2.16.
“Term Loan Lender” means a Lender holding a Term Loan.
“Term Loan Termination Date” means April 27, 2023.
“Term Note” means a promissory note of the Borrower substantially in the form of Exhibit L,
payable to the order of a Term Loan Lender in a principal amount equal to the amount of such Term Loan
Lender’s Term Loan.
“Termination Date” means (a) with respect to the Revolving Loans and Revolving
Commitments, the Revolving Termination Date and (b) with respect to the Term Loans, the Term Loan
Termination Date.
“Titled Agent” has the meaning given that term in Section 11.9.
“Total Asset Value” means, as of any date of determination and without duplication, the sum of
(a)(i)(x) EBITDA attributable to Properties owned by the Borrower or any of its Subsidiaries (determined
in a manner reasonably acceptable to the Administrative Agent) for any period of 12 consecutive calendar
months ending during the term of this Agreement plus (y) the Parent’s Ownership Share of EBITDA
attributable to Properties owned by Unconsolidated Affiliates (determined in a manner reasonably
acceptable to the Administrative Agent) for such period, divided by (ii) the Capitalization Rate, plus
(b) the purchase price paid by the Borrower, any of its Subsidiaries or any of its Unconsolidated Affiliates
(less any amounts paid to the Borrower, such Subsidiary or such Unconsolidated Affiliate as a purchase
price adjustment, held in escrow, retained as a contingency reserve, or in connection with other similar
arrangements) for any Property acquired by the Borrower, such Subsidiary or such Unconsolidated
Affiliate during any such period of 12 consecutive calendar months, limited in the case of an
Unconsolidated Affiliate, to the Parent’s Ownership Share of the amounts referred to in this clause (b),
plus (c) the value of all unrestricted cash and Cash Equivalents then owned by the Parent, the Borrower
- 28 -
and their respective Subsidiaries plus (d) Manufactured Home Inventory Value of the Parent, the
Borrower and their respective Subsidiaries, at such time, plus (e) the GAAP book value of all Mezzanine
Debt Investments, Mortgage Receivables and other notes receivable (i) for which payments by the obligor
thereof are not more than 90 days past due and (ii) the obligor of which is not subject to any proceeding
of the types described in Section 10.1.(e) or 10.1.(f), plus (f) the GAAP book value of Development
Activity and Unimproved Land then owned by the Parent, the Borrower and their respective Subsidiaries,
plus (g) the Parent’s Ownership Share of the foregoing items described in clauses (c), (d), (e) and (f) of its
Unconsolidated Affiliates; provided, however, that to the extent that the amount of Total Asset Value
attributable to (i) Properties that are not Designated Use Properties, (ii) Unimproved Land, (iii)
Development Activity, (iv) Mezzanine Debt Investments, Mortgage Receivables and other notes
receivable, and (v) Investments in Unconsolidated Affiliates and in Subsidiaries that are not Wholly
Owned Subsidiaries, in the aggregate would exceed 20% of Total Asset Value, such excess shall be
excluded. EBITDA attributable to Properties acquired or disposed of by the Borrower or any of its
Subsidiaries or Unconsolidated Affiliates during any applicable period of 12 consecutive calendar months
shall be excluded when determining EBITDA for purposes of the immediately preceding clause (a).
“Total Indebtedness” means all Indebtedness of the Parent and its Subsidiaries, determined on a
consolidated basis, plus the Parent’s Ownership Share of all Indebtedness of its Unconsolidated Affiliates.
“Type” with respect to any Loan (other than a Swingline Loan), refers to whether such Loan (or
portion thereof) is a LIBOR Loan or a Base Rate Loan.
“Unconsolidated Affiliate” means, with respect to any Person, any other Person in whom such
Person holds an Investment, which Investment is accounted for in the financial statements of such Person
on an equity basis of accounting and whose financial results would not be consolidated under GAAP with
the financial results of such Person on the consolidated financial statements of such Person.
“Unencumbered Net Operating Income” means for any fiscal quarter, Net Operating Income
for such period from each Qualifying Unencumbered Property. Notwithstanding the foregoing, for
purposes of determining Unencumbered Net Operating Income, to the extent the amount of the Net
Operating Income attributable to Qualifying Unencumbered Properties located in Canada and Mexico
exceeds 20% of Unencumbered Net Operating Income, such excess shall be excluded.
“Unimproved Land” means, as of any date, land on which no development (other than
improvements that are not material and that are temporary in nature) has occurred and for which no
development is scheduled in the 12 months following such date.
“Unsecured Debt” means, as of any date of determination and without duplication, all
Indebtedness of the Parent, the Borrower or any Wholly Owned Subsidiary, which is not Secured Debt,
but in any event shall exclude (a) all accounts payable of the Parent, the Borrower or any Wholly Owned
Subsidiary incurred in the ordinary course of business, (b) all advance rents received and (c) all accrued
interest payable.
“Unsecured Interest Expense” means Interest Expense payable in respect of Unsecured Debt.
“U.S. Person” means any Person that is a “United States Person” as defined in
Section 7701(a)(30) of the Internal Revenue Code.
“U.S. Tax Compliance Certificate” has the meaning assigned to such term in
Section 3.10.(g)(ii)(B)(III).
- 29 -
“Xxxxx Fargo” means Xxxxx Fargo Bank, National Association, and its successors and assigns.
“Wholly Owned Subsidiary” means any Subsidiary of a Person in respect of which all of the
Equity Interests (other than, in the case of a corporation, directors’ qualifying shares) are at the time
directly or indirectly owned or controlled by such Person or one or more other Subsidiaries of such
Person or by such Person and one or more other Subsidiaries of such Person.
“Withdrawal Liability” means any liability as a result of a complete or partial withdrawal from
a Multiemployer Plan as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
“Withholding Agent” means (a) the Borrower, (b) any other Loan Party and (c) the
Administrative Agent, as applicable.
“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority,
the write-down and conversion powers of such EEA Resolution Authority from time to time under the
Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers
are described in the EU Bail-In Legislation Schedule.
Section 1.2. General; References to Central time.
Unless otherwise indicated, all accounting terms, ratios and measurements shall be interpreted or
determined in accordance with GAAP as in effect from time to time; provided that, if at any time any
change in GAAP would affect the computation of any financial ratio or requirement (including in any
affirmative or negative covenant) set forth in any Loan Document, and either the Borrower or the
Requisite Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light
of such change in GAAP (subject to the approval of the appropriate Lenders required under
Section 12.6.); provided further that, until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) the Parent shall provide to the
Administrative Agent and the Lenders financial statements and other documents required under this
Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of
such ratio or requirement made before and after giving effect to such change in GAAP; provided, further,
to the extent that any change in GAAP after the Agreement Date results in leases which are, or would
have been, classified as operating leases under GAAP as it exists on the Agreement Date being classified
as Capital Leases under GAAP as revised, such change in classification of leases from operating leases to
Capital Leases shall be disregarded for purposes of this Agreement. Notwithstanding the preceding
sentence, the calculation of liabilities shall not include any fair value adjustments to the carrying value of
liabilities to record such liabilities at fair value pursuant to electing the fair value option election under
FASB ASC 000-00-00 (formerly known as FAS 159, The Fair Value Option for Financial Assets and
Financial Liabilities) or other FASB standards allowing entities to elect fair value option for financial
liabilities, and the effects of FAS 141(R) in respect of fees and expenses in connection with a business
combination shall be disregarded. References in this Agreement to “Sections”, “Articles”, “Exhibits” and
“Schedules” are to sections, articles, exhibits and schedules herein and hereto unless otherwise indicated.
References in this Agreement to any document, instrument or agreement (a) shall include all exhibits,
schedules and other attachments thereto, (b) shall include all documents, instruments or agreements
issued or executed in replacement thereof, to the extent permitted hereby and (c) shall mean such
document, instrument or agreement, or replacement or predecessor thereto, as amended, supplemented,
restated or otherwise modified from time to time to the extent not otherwise stated herein or prohibited
hereby and in effect at any given time. Wherever from the context it appears appropriate, each term
stated in either the singular or plural shall include the singular and plural, and pronouns stated in the
masculine, feminine or neuter gender shall include the masculine, the feminine and the neuter. Except as
- 30 -
expressly provided otherwise in any Loan Document, (i) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting
such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or
regulation as amended, modified, extended, restated, replaced or supplemented from time to time and
(ii) any reference to any Person shall be construed to include such Person’s permitted successors and
permitted assigns. Unless explicitly set forth to the contrary, a reference to “Subsidiary” means a
Subsidiary of the Parent or a Subsidiary of such Subsidiary and a reference to an “Affiliate” means a
reference to an Affiliate of the Borrower. Titles and captions of Articles, Sections, subsections and
clauses in this Agreement are for convenience only, and neither limit nor amplify the provisions of this
Agreement. Unless otherwise indicated, all references to time are references to Central time, daylight or
standard, as applicable.
Section 1.3. Financial Attributes of Non-Wholly Owned Subsidiaries.
Except as otherwise expressly provided herein, when determining compliance by the Parent or the
Borrower with any financial covenant contained in any of the Loan Documents (a) only the Ownership
Share of the Parent or the Borrower, as applicable, of the financial attributes of a Subsidiary that is not a
Wholly Owned Subsidiary shall be included and (b) the Parent’s Ownership Share of the Borrower shall
be deemed to be 100.0%.
ARTICLE II. CREDIT FACILITY
Section 2.1. Revolving Loans.
(a) Making of Revolving Loans. Subject to the terms and conditions set forth in this
Agreement, including without limitation, Section 2.15., each Revolving Lender severally and not jointly
agrees to make Revolving Loans in Dollars to the Borrower during the period from and including the
Effective Date to but excluding the Revolving Termination Date, in an aggregate principal amount at any
one time outstanding up to, but not exceeding, such Lender’s Revolving Commitment. Each borrowing
of Revolving Loans shall be in an aggregate minimum amount of $1,000,000 and integral multiples of
$100,000 in excess thereof. Notwithstanding the immediately preceding sentence but subject to
Section 2.15., a borrowing of Revolving Loans may be in the aggregate amount of the unused Revolving
Commitments. Within the foregoing limits and subject to the terms and conditions of this Agreement, the
Borrower may borrow, repay and reborrow Revolving Loans.
(b) Requests for Revolving Loans. Not later than 12:00 p.m. Central time at least 1 Business
Day prior to a borrowing of Revolving Loans that are to be Base Rate Loans and not later than 12:00 p.m.
Central time at least 3 Business Days prior to a borrowing of Revolving Loans that are to be LIBOR
Loans, the Borrower shall deliver to the Administrative Agent a Notice of Revolving Borrowing. Each
Notice of Revolving Borrowing shall specify the aggregate principal amount of the Revolving Loans to
be borrowed, the date such Revolving Loans are to be borrowed (which must be a Business Day), the use
of the proceeds of such Revolving Loans, the Type of the requested Revolving Loans, and if such
Revolving Loans are to be LIBOR Loans, the initial Interest Period for such Revolving Loans. Each
Notice of Revolving Borrowing shall be irrevocable once given and binding on the Borrower. Prior to
delivering a Notice of Revolving Borrowing, the Borrower may (without specifying whether a Revolving
Loan will be a Base Rate Loan or a LIBOR Loan) request that the Administrative Agent provide the
Borrower with the most recent LIBOR available to the Administrative Agent. The Administrative Agent
shall provide such quoted rate to the Borrower on the date of such request or as soon as possible
thereafter.
- 31 -
(c) Funding of Revolving Loans. Promptly after receipt of a Notice of Revolving Borrowing
under the immediately preceding subsection (b), the Administrative Agent shall notify each Revolving
Lender of the proposed borrowing. Each Revolving Lender shall deposit an amount equal to the
Revolving Loan to be made by such Lender to the Borrower with the Administrative Agent at the
Principal Office, in immediately available funds not later than 11:00 a.m. Central time on the date of such
proposed Revolving Loans. Subject to fulfillment of all applicable conditions set forth herein, the
Administrative Agent shall make available to the Borrower in the account specified in the Disbursement
Instruction Agreement, not later than 2:00 p.m. Central time on the date of the requested borrowing of
Revolving Loans, the proceeds of such amounts received by the Administrative Agent.
(d) Assumptions Regarding Funding by Revolving Lenders. With respect to Revolving
Loans to be made after the Effective Date, unless the Administrative Agent shall have been notified by
any Revolving Lender that such Lender will not make available to the Administrative Agent a Revolving
Loan to be made by such Lender in connection with any borrowing, the Administrative Agent may
assume that such Lender will make the proceeds of such Revolving Loan available to the Administrative
Agent in accordance with this Section, and the Administrative Agent may (but shall not be obligated to),
in reliance upon such assumption, make available to the Borrower the amount of such Revolving Loan to
be provided by such Lender. In such event, if such Lender does not make available to the Administrative
Agent the proceeds of such Revolving Loan, then such Lender and the Borrower severally agree to pay to
the Administrative Agent on demand the amount of such Revolving Loan with interest thereon, for each
day from and including the date such Revolving Loan is made available to the Borrower but excluding the
date of payment to the Administrative Agent, at (i) in the case of a payment to be made by such Lender,
the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation and (ii) in the case of a payment to be made by the
Borrower, the interest rate applicable to Base Rate Loans. If the Borrower and such Lender shall pay the
amount of such interest to the Administrative Agent for the same or overlapping period, the
Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the
Borrower for such period. If such Lender pays to the Administrative Agent the amount of such Revolving
Loan, the amount so paid shall constitute such Lender’s Revolving Loan included in the borrowing. Any
payment by the Borrower shall be without prejudice to any claim the Borrower may have against a
Revolving Lender that shall have failed to make available the proceeds of a Revolving Loan to be made
by such Lender.
Section 2.2. Term Loans.
Pursuant to the Existing Credit Agreement, each of the Term Loan Lenders made a loan (an
“Existing Term Loan”) denominated in Dollars to the Borrower. The Borrower hereby agrees and
acknowledges that as of the Effective Date, the outstanding principal balance of the Existing Term Loans
is $200,000,000 and shall for all purposes hereunder constitute and be referred to as the Term Loans
hereunder, without constituting a novation, but in all cases subject to the terms and conditions applicable
to Term Loans hereunder. As of the Effective Date, the Term Loans shall be allocated among the Term
Loan Lenders in accordance with Section 2.18. Any portion of a Term Loan that is repaid or prepaid may
not be reborrowed.
Section 2.3. Letters of Credit.
(a) Letters of Credit. Subject to the terms and conditions of this Agreement, including
without limitation, Section 2.15., each Issuing Bank, on behalf of the Revolving Lenders, agrees to issue
for the account of the Borrower during the period from and including the Effective Date to, but excluding,
the date 30 days prior to the Revolving Termination Date, one or more standby letters of credit (each a
“Letter of Credit”) up to a maximum aggregate Stated Amount at any one time outstanding not to exceed
- 32 -
$50,000,000 as such amount may be reduced from time to time in accordance with the terms hereof (the
“L/C Commitment Amount”); provided, that the aggregate Stated Amount of outstanding Letters of
Credit issued by an Issuing Bank shall not exceed 50% of the L/C Commitment Amount at any time.
(b) Terms of Letters of Credit. At the time of issuance, the amount, form, terms and
conditions of each Letter of Credit, and of any drafts or acceptances thereunder, shall be subject to
approval by the applicable Issuing Bank and the Borrower. Notwithstanding the foregoing, in no event
may (i) the expiration date of any Letter of Credit extend beyond the date that is 10 days prior to the
Revolving Termination Date, or (ii) any Letter of Credit have an initial duration in excess of one year;
provided, however, a Letter of Credit may contain a provision providing for the automatic extension of
the expiration date in the absence of a notice of non-renewal from the applicable Issuing Bank but in no
event shall any such provision permit the extension of the expiration date of such Letter of Credit beyond
the date that is 10 days prior to the Revolving Termination Date. Notwithstanding the foregoing, a Letter
of Credit may, as a result of its express terms or as the result of the effect of an automatic extension
provision, have an expiration date of not more than one year beyond the Revolving Termination Date
(any such Letter of Credit being referred to as an “Extended Letter of Credit”), so long as the Borrower
delivers to the Administrative Agent for its benefit and the benefit of the Issuing Bank and the Revolving
Lenders no later than 30 days prior to the Revolving Termination Date, Cash Collateral for such Letter of
Credit for deposit into the Letter of Credit Collateral Account in an amount equal to the Stated Amount of
such Letter of Credit; provided, that the obligations of the Borrower under this Section in respect of such
Extended Letters of Credit shall survive the termination of this Agreement and shall remain in effect until
no such Extended Letters of Credit remain outstanding. If the Borrower fails to provide Cash Collateral
with respect to any Extended Letter of Credit by the date 30 days prior to the Revolving Termination
Date, such failure shall be treated as a drawing under such Extended Letter of Credit (in an amount equal
to the maximum Stated Amount of such Letter of Credit), which shall be reimbursed (or participations
therein funded) by the Revolving Lenders in accordance with the immediately following subsections (i)
and (j), with the proceeds being utilized to provide Cash Collateral for such Letter of Credit. The initial
Stated Amount of each Letter of Credit shall be at least $50,000 (or such lesser amount as the applicable
Issuing Bank, the Administrative Agent and the Borrower may agree).
(c) Requests for Issuance of Letters of Credit. The Borrower shall give the applicable
Issuing Bank and the Administrative Agent written notice at least 5 Business Days prior to the requested
date of issuance of a Letter of Credit, such notice to describe in reasonable detail the proposed terms of
such Letter of Credit and the nature of the transactions or obligations proposed to be supported by such
Letter of Credit, and in any event shall set forth with respect to such Letter of Credit the proposed
(i) initial Stated Amount, (ii) beneficiary, and (iii) expiration date. The Borrower shall also execute and
deliver such customary applications and agreements for standby letters of credit, and other forms as
requested from time to time by the applicable Issuing Bank. Provided the Borrower has given the notice
prescribed by the first sentence of this subsection and delivered such applications and agreements referred
to in the preceding sentence, subject to the other terms and conditions of this Agreement, including the
satisfaction of any applicable conditions precedent set forth in Section 5.2., the applicable Issuing Bank
shall issue the requested Letter of Credit on the requested date of issuance for the benefit of the stipulated
beneficiary but in no event prior to the date 5 Business Days following the date after which the applicable
Issuing Bank has received all of the items required to be delivered to it under this subsection. An Issuing
Bank shall not at any time be obligated to issue any Letter of Credit if such issuance would conflict with,
or cause the Administrative Agent, the applicable Issuing Bank or any Revolving Lender to exceed any
limits imposed by, any Applicable Law. References herein to “issue” and derivations thereof with respect
to Letters of Credit shall also include extensions or modifications of any outstanding Letters of Credit,
unless the context otherwise requires. Upon the written request of the Borrower, the applicable Issuing
Bank shall deliver to the Borrower a copy of each issued Letter of Credit within a reasonable time after
- 33 -
the date of issuance thereof. To the extent any term of a Letter of Credit Document is inconsistent with a
term of any Loan Document, the term of such Loan Document shall control.
(d) Reimbursement Obligations. Upon receipt by an Issuing Bank from the beneficiary of a
Letter of Credit issued by such Issuing Bank of any demand for payment under such Letter of Credit, such
Issuing Bank shall promptly notify the Borrower and the Administrative Agent of the amount to be paid
by such Issuing Bank as a result of such demand and the date on which payment is to be made by such
Issuing Bank to such beneficiary in respect of such demand; provided, however, that an Issuing Bank’s
failure to give, or delay in giving, such notice shall not discharge the Borrower in any respect from the
applicable Reimbursement Obligation. The Borrower hereby absolutely, unconditionally and irrevocably
agrees to pay and reimburse each Issuing Bank for the amount of each payment under each Letter of
Credit issued by such Issuing Bank in accordance with clause (e) below, without presentment, demand,
protest or other formalities of any kind. Upon receipt by an Issuing Bank of any payment in respect of
any Reimbursement Obligation, such Issuing Bank shall promptly pay to the Administrative Agent for the
account of each Revolving Lender that has acquired a participation therein under the second sentence of
the immediately following subsection (i) such Lender’s Revolving Commitment Percentage of such
payment.
(e) Manner of Reimbursement. Upon receipt by an Issuing Bank from the beneficiary of a
Letter of Credit of any demand for payment under such Letter of Credit, then (i) if the applicable
conditions contained in Article V. would permit the making of Revolving Loans, the Borrower shall be
deemed to have requested a borrowing of Revolving Loans (which shall be Base Rate Loans) in an
amount equal to the unpaid Reimbursement Obligation and the Administrative Agent shall give each
Revolving Lender prompt notice of the amount of the Revolving Loan to be made available to the
Administrative Agent not later than 12:00 noon Central time on the Business Day immediately following
the date that the Administrative Agent receives such notice from the applicable Issuing Bank and (ii) if
such conditions would not permit the making of Revolving Loans, the provisions of subsection (j) of this
Section shall apply. The limitations set forth in the second sentence of Section 2.1.(a) shall not apply to
any borrowing of Base Rate Loans under this subsection.
(f) Effect of Letters of Credit on Revolving Commitments. Upon the issuance by an Issuing
Bank of any Letter of Credit and until such Letter of Credit shall have expired or been cancelled, the
Revolving Commitment of each Revolving Lender shall be deemed to be utilized for all purposes of this
Agreement in an amount equal to the product of (i) such Lender’s Revolving Commitment Percentage
and (ii) the sum of (A) the Stated Amount of such Letter of Credit plus (B) without duplication, any
related Reimbursement Obligations then outstanding.
(g) Issuing Banks’ Duties Regarding Letters of Credit; Unconditional Nature of
Reimbursement Obligations. In examining documents presented in connection with drawings under
Letters of Credit and making payments under Letters of Credit issued by an Issuing Bank against such
documents, such Issuing Bank shall only be required to use the same standard of care as it uses in
connection with examining documents presented in connection with drawings under letters of credit in
which it has not sold participations and making payments under such letters of credit. The Borrower
assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective
beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, none of the
Issuing Banks, the Administrative Agent or any of the Lenders shall be responsible for, and the
Borrower’s obligations in respect of Letters of Credit shall not be affected in any manner by (i) the form,
validity, sufficiency, accuracy, genuineness or legal effects of any document submitted by any party in
connection with the application for and issuance of or any drawing honored under any Letter of Credit
even if such document should in fact prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged; (ii) the validity or sufficiency of any instrument transferring or assigning or
- 34 -
purporting to transfer or assign any Letter of Credit, or the rights or benefits thereunder or proceeds
thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) failure of the
beneficiary of any Letter of Credit to comply fully with conditions required in order to draw upon such
Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any
messages, by mail, cable, facsimile, electronic mail, telecopy or otherwise, whether or not they be in
cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under any Letter of Credit, or of the
proceeds thereof; (vii) the misapplication by the beneficiary of any Letter of Credit, or of the proceeds of
any drawing under any Letter of Credit; or (viii) any consequences arising from causes beyond the control
of the Issuing Banks, the Administrative Agent or the Lenders. None of the above shall affect, impair or
prevent the vesting of any of an Issuing Bank’s or Administrative Agent’s rights or powers hereunder.
Any action taken or omitted to be taken by an Issuing Bank under or in connection with any Letter of
Credit issued by such Issuing Bank, if taken or omitted in the absence of gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final, non-appealable judgment), shall
not create against such Issuing Bank any liability to the Borrower, the Administrative Agent or any
Lender. In this connection, the obligation of the Borrower to reimburse an Issuing Bank for any drawing
made under any Letter of Credit issued by such Issuing Bank, and to repay any Revolving Loan made
pursuant to the second sentence of the immediately preceding subsection (e), shall be absolute,
unconditional and irrevocable and shall be paid strictly in accordance with the terms of this Agreement
and any other applicable Letter of Credit Document under all circumstances whatsoever, including
without limitation, the following circumstances: (A) any lack of validity or enforceability of any Letter of
Credit Document or any term or provisions therein; (B) any amendment or waiver of or any consent to
departure from all or any of the Letter of Credit Documents; (C) the existence of any claim, setoff,
defense or other right which the Borrower may have at any time against such Issuing Bank, any other
Issuing Bank, the Administrative Agent, any Lender, any beneficiary of a Letter of Credit or any other
Person, whether in connection with this Agreement, the transactions contemplated hereby or in the Letter
of Credit Documents or any unrelated transaction; (D) any breach of contract or dispute between the
Borrower, such Issuing Bank, any other Issuing Bank, the Administrative Agent, any Lender or any other
Person; (E) any demand, statement or any other document presented under a Letter of Credit proving to
be forged, fraudulent, invalid or insufficient in any respect or any statement therein or made in connection
therewith being untrue or inaccurate in any respect whatsoever; (F) any non-application or misapplication
by the beneficiary of a Letter of Credit or of the proceeds of any drawing under such Letter of Credit;
(G) payment by such Issuing Bank under any Letter of Credit against presentation of a draft or certificate
which does not strictly comply with the terms of such Letter of Credit; and (H) any other act, omission to
act, delay or circumstance whatsoever that might, but for the provisions of this Section, constitute a legal
or equitable defense to or discharge of the Borrower’s Reimbursement Obligations. Notwithstanding
anything to the contrary contained in this Section or Section 12.9., but not in limitation of the Borrower’s
unconditional obligation to reimburse an Issuing Bank for any drawing made under a Letter of Credit as
provided in this Section and to repay any Revolving Loan made pursuant to the second sentence of the
immediately preceding subsection (e), the Borrower shall have no obligation to indemnify the
Administrative Agent, an Issuing Bank or any Lender in respect of any liability incurred by the
Administrative Agent, such Issuing Bank or such Lender arising solely out of the gross negligence or
willful misconduct of such Person or such Person’s Related Parties in respect of a Letter of Credit as
determined by a court of competent jurisdiction in a final, non-appealable judgment. Except as otherwise
provided in this Section, nothing in this Section shall affect any rights the Borrower may have with
respect to the gross negligence or willful misconduct of the Administrative Agent, an Issuing Bank, any
Lender or any of their respective Related Parties with respect to any Letter of Credit.
(h) Amendments, Etc. The issuance by an Issuing Bank of any amendment, supplement or
other modification to any Letter of Credit issued by such Issuing Bank shall be subject to the same
conditions applicable under this Agreement to the issuance of new Letters of Credit (including, without
- 35 -
limitation, that the request therefor be made through the applicable Issuing Bank and the Administrative
Agent), and no such amendment, supplement or other modification shall be issued unless either (i) the
respective Letter of Credit affected thereby would have complied with such conditions had it originally
been issued hereunder in such amended, supplemented or modified form or (ii) the Administrative Agent
and the applicable Revolving Lenders required by Section 12.6. shall have consented thereto. In
connection with any such amendment, supplement or other modification, the Borrower shall pay the fees,
if any, payable under the last sentence of Section 3.5.(c).
(i) Revolving Lenders’ Participation in Letters of Credit. Immediately upon the issuance by
an Issuing Bank of any Letter of Credit, each Revolving Lender shall be deemed to have absolutely,
irrevocably and unconditionally purchased and received from the applicable Issuing Bank, without
recourse or warranty, an undivided interest and participation to the extent of such Lender’s Revolving
Commitment Percentage of the liability of such Issuing Bank with respect to such Letter of Credit and
each Revolving Lender thereby shall absolutely, unconditionally and irrevocably assume, as primary
obligor and not as surety, and shall be unconditionally obligated to such Issuing Bank to pay and
discharge when due, such Lender’s Revolving Commitment Percentage of such Issuing Bank’s liability
under such Letter of Credit. In addition, upon the making of each payment by a Revolving Lender to the
Administrative Agent for the account of an Issuing Bank in respect of any Letter of Credit issued by it
pursuant to the immediately following subsection (j), such Lender shall, automatically and without any
further action on the part of such Issuing Bank, the Administrative Agent or such Lender, acquire (i) a
participation in an amount equal to such payment in the Reimbursement Obligation owing to such Issuing
Bank by the Borrower in respect of such Letter of Credit and (ii) a participation in a percentage equal to
such Lender’s Revolving Commitment Percentage in any interest or other amounts payable by the
Borrower in respect of such Reimbursement Obligation (other than the Fees payable to such Issuing Bank
pursuant to the last sentence of Section 3.5.(c)).
(j) Payment Obligation of Lenders. Each Revolving Lender severally agrees to pay to the
Administrative Agent, for the account of each Issuing Bank, on demand in immediately available funds in
Dollars the amount of such Lender’s Revolving Commitment Percentage of each drawing paid by such
Issuing Bank under each Letter of Credit issued by it to the extent such amount is not reimbursed by the
Borrower pursuant to the immediately preceding subsection (d); provided, however, that in respect of any
drawing under any Letter of Credit, the maximum amount that any Revolving Lender shall be required to
fund, whether as a Revolving Loan or as a participation, shall not exceed such Lender’s Revolving
Commitment Percentage of such drawing except as otherwise provided in Section 3.9.(d). If the notice
referenced in the second sentence of Section 2.3.(e) is received by a Revolving Lender not later than
11:00 a.m. Central time, then such Lender shall make such payment available to the Administrative Agent
not later than 2:00 p.m. Central time on the date of demand therefor; otherwise, such payment shall be
made available to the Administrative Agent not later than 1:00 p.m. Central time on the next succeeding
Business Day. Each Revolving Lender’s obligation to make such payments to the Administrative Agent
under this subsection, and the Administrative Agent’s right to receive the same for the account of the
applicable Issuing Bank, shall be absolute, irrevocable and unconditional and shall not be affected in any
way by any circumstance whatsoever, including without limitation, (i) the failure of any other Revolving
Lender to make its payment under this subsection, (ii) the financial condition of the Borrower or any other
Loan Party, (iii) the existence of any Default or Event of Default, including any Event of Default
described in Section 10.1.(e) or (f), (iv) the termination of the Commitments or (v) the delivery of Cash
Collateral in respect of any Extended Letter of Credit. Each such payment to the Administrative Agent
for the account of the Issuing Bank shall be made without any offset, abatement, withholding or deduction
whatsoever.
(k) Information to Revolving Lenders. Promptly following any change in Letters of Credit
outstanding, the applicable Issuing Bank shall deliver to the Administrative Agent, who shall promptly
- 36 -
deliver the same to each Revolving Lender and the Borrower, a notice describing the aggregate amount of
all Letters of Credit issued by such Issuing Bank outstanding at such time. Upon the request of any
Revolving Lender from time to time, an Issuing Bank shall deliver any other information reasonably
requested by such Lender with respect to such Letter of Credit then outstanding. Other than as set forth in
this subsection, the Issuing Banks and the Administrative Agent shall have no duty to notify the
Revolving Lenders regarding the issuance or other matters regarding Letters of Credit issued hereunder.
The failure of any Issuing Bank or the Administrative Agent to perform its requirements under this
subsection shall not relieve any Revolving Lender from its obligations under the immediately preceding
subsection (j).
(l) Applicability of ISP98. Unless otherwise expressly agreed by any Issuing Bank and the
Borrower when a Letter of Credit is issued, the rules of ISP98 shall apply to each standby Letter of
Credit.
(m) Extended Letters of Credit. Each Revolving Lender confirms that its obligations under
the immediately preceding subsections (i) and (j) shall be reinstated in full and apply if the delivery of any
Cash Collateral in respect of an Extended Letter of Credit is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise.
Section 2.4. Swingline Loans.
(a) Swingline Loans. Subject to the terms and conditions hereof, including without
limitation Section 2.15., each Swingline Lender, severally and not jointly, agrees to make Swingline
Loans to the Borrower, during the period from the Effective Date to but excluding the Swingline Maturity
Date, in an aggregate principal amount at any one time outstanding up to, but not exceeding, the lesser
(such lesser amount being referred to as the “Swingline Availability” of a given Swingline Lender) of (i)
$25,000,000, as such amount may be reduced from time to time in accordance with the terms hereof and
(ii) the Revolving Commitment of such Swingline Lender in its capacity as a Revolving Lender minus the
aggregate outstanding principal amount of Revolving Loans made by such Swingline Lender. If at any
time the aggregate principal amount of the Swingline Loans made by a Swingline Lender outstanding at
such time exceeds the Swingline Availability of such Swingline Lender in effect at such time, the
Borrower shall promptly, and in any event within 1 Business Day of demand, pay the Administrative
Agent for the account of such Swingline Lender the amount of such excess. Subject to the terms and
conditions of this Agreement, the Borrower may borrow, repay and reborrow Swingline Loans hereunder.
The borrowing of a Swingline Loan shall not constitute usage of any Revolving Lender’s Revolving
Commitment for purposes of calculation of the fee payable under Section 3.5.(b).
(b) Procedure for Borrowing Swingline Loans. The Borrower shall give the Administrative
Agent and the Swingline Lender selected by the Borrower to make a Swingline Loan notice pursuant to a
Notice of Swingline Borrowing or telephonic notice of each borrowing of a Swingline Loan. Each Notice
of Swingline Borrowing shall be delivered to the applicable Swingline Lender and the Administrative
Agent no later than 12:00 p.m. Central time on the proposed date of such borrowing. Any telephonic
notice shall include all information to be specified in a written Notice of Swingline Borrowing and shall
be promptly confirmed in writing by the Borrower pursuant to a Notice of Swingline Borrowing sent to
the applicable Swingline Lender and the Administrative Agent by telecopy on the same day of the giving
of such telephonic notice. Not later than 2:00 p.m. Central time on the date of the requested Swingline
Loan, the applicable Swingline Lender will make the proceeds of such Swingline Loan available to the
Administrative Agent at its Principal Office in Dollars, in immediately available funds for the account of
the Borrower. The amount so received by the Administrative Agent shall, subject to satisfaction of the
applicable conditions set forth in Section 5.2. for such borrowing, be made available to the Borrower no
- 37 -
later than 3:30 p.m. Central time on such date by depositing same, in immediately available funds, in an
account of the Borrower designated by the borrower in the Disbursement Instruction Agreement.
(c) Interest. Swingline Loans shall bear interest at a per annum rate equal to the Base Rate as
in effect from time to time plus the Applicable Margin for Revolving Loans that are Base Rate Loans or
at such other rate or rates as the Borrower and the applicable Swingline Lender may agree from time to
time in writing. Interest on a Swingline Loan is solely for the account of the Swingline Lender that made
such Swingline Loan (except to the extent a Revolving Lender acquires a participating interest in such
Swingline Loan pursuant to the immediately following subsection (e)). All accrued and unpaid interest
on Swingline Loans shall be payable on the dates and in the manner provided in Section 2.5. with respect
to interest on Base Rate Loans (except as the applicable Swingline Lender and the Borrower may
otherwise agree in writing in connection with any particular Swingline Loan made by such Swingline
Lender).
(d) Swingline Loan Amounts, Etc. Each Swingline Loan shall be in the minimum amount of
$1,000,000 and integral multiples of $100,000 in excess thereof, or such other minimum amounts agreed
to by a Swingline Lender and the Borrower. Any voluntary prepayment of a Swingline Loan must be in
integral multiples of $100,000 or the aggregate principal amount of all outstanding Swingline Loans (or
such other minimum amounts upon which the Swingline Lender that made such Swingline Loans and the
Borrower may agree) and in connection with any such prepayment, the Borrower must give such
Swingline Lender and the Administrative Agent prior written notice thereof no later than 12:00 noon
Central time on the day prior to the date of such prepayment. The Swingline Loans owing to a Swingline
Lender shall, in addition to this Agreement, be evidenced by a Swingline Note in favor of such Swingline
Lender.
(e) Repayment and Participations of Swingline Loans. The Borrower agrees to repay each
Swingline Loan within one Business Day of demand therefor by the Swingline Lender that made such
Swingline Loan and, in any event, within 5 Business Days after the date such Swingline Loan was made;
provided, that the proceeds of a Swingline Loan may not be used to pay a Swingline Loan. Any
Swingline Lender making demand for repayment of a Swingline Loan made by such Swingline Lender
shall notify the Administrative Agent of such demand on the date such demand is made. Notwithstanding
the foregoing, the Borrower shall repay the entire outstanding principal amount of, and all accrued but
unpaid interest on, the Swingline Loans on the Swingline Maturity Date (or such earlier date as a
Swingline Lender and the Borrower may agree in writing with respect to Swingline Loans made by such
Swingline Lender). In lieu of demanding repayment of any outstanding Swingline Loan from the
Borrower, the Swingline Lender that made such Swingline Loan may, on behalf of the Borrower (which
hereby irrevocably directs each applicable Swingline Lender to act on its behalf for such purpose), request
a borrowing of Revolving Loans that are Base Rate Loans from the Revolving Lenders in an amount
equal to the principal balance of such Swingline Loan. The amount limitations contained in the second
sentence of Section 2.1.(a) shall not apply to any borrowing of such Revolving Loans made pursuant to
this subsection. Such Swingline Lender shall give notice to the Administrative Agent of any such
borrowing of Revolving Loans not later than 11:00 a.m. Central time at least one Business Day prior to
the proposed date of such borrowing. Promptly after receipt of such notice of borrowing of Revolving
Loans from a Swingline Lender under the immediately preceding sentence, the Administrative Agent
shall notify each Revolving Lender of the proposed borrowing. Not later than 11:00 a.m. Central time on
the proposed date of such borrowing, each Revolving Lender will make available to the Administrative
Agent at the Principal Office for the account of the applicable Swingline Lender, in immediately available
funds, the proceeds of the Revolving Loan to be made by such Lender. The Administrative Agent shall
pay the proceeds of such Revolving Loans to the applicable Swingline Lender, which shall apply such
proceeds to repay such Swingline Loan. If the Revolving Lenders are prohibited from making Revolving
Loans required to be made under this subsection for any reason whatsoever, including without limitation,
- 38 -
the occurrence of any of the Defaults or Events of Default described in Sections 10.1.(e) or (f), each
Revolving Lender shall purchase from the applicable Swingline Lender, without recourse or warranty, an
undivided interest and participation to the extent of such Lender’s Revolving Commitment Percentage of
such Swingline Loan, by directly purchasing a participation in such Swingline Loan in such amount and
paying the proceeds thereof to the Administrative Agent for the account of the applicable Swingline
Lender in Dollars and in immediately available funds. A Revolving Lender’s obligation to purchase such
a participation in a Swingline Loan shall be absolute and unconditional and shall not be affected by any
circumstance whatsoever, including without limitation, (i) any claim of setoff, counterclaim, recoupment,
defense or other right which such Lender or any other Person may have or claim against the
Administrative Agent, any Swingline Lender or any other Person whatsoever, (ii) the occurrence or
continuation of a Default or Event of Default (including without limitation, any of the Defaults or Events
of Default described in Sections 10.1.(e) or (f)), or the termination of any Revolving Lender’s Revolving
Commitment, (iii) the existence (or alleged existence) of an event or condition which has had or could
have a Material Adverse Effect, (iv) any breach of any Loan Document by the Administrative Agent, any
Lender, the Borrower or any other Loan Party, or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing. If such amount is not in fact made available
to the applicable Swingline Lender by any Revolving Lender, such Swingline Lender shall be entitled to
recover such amount on demand from such Lender, together with accrued interest thereon for each day
from the date of demand thereof, at the Federal Funds Rate. If such Lender does not pay such amount
forthwith upon the applicable Swingline Lender’s demand therefor, and until such time as such Lender
makes the required payment, the applicable Swingline Lender shall be deemed to continue to have
outstanding Swingline Loans in the amount of such unpaid participation obligation for all purposes of the
Loan Documents (other than those provisions requiring the other Revolving Lenders to purchase a
participation therein). Further, such Lender shall be deemed to have assigned any and all payments made
of principal and interest on its Revolving Loans, and any other amounts due it hereunder, to the applicable
Swingline Lender to fund Swingline Loans in the amount of the participation in Swingline Loans that
such Lender failed to purchase pursuant to this Section until such amount has been purchased (as a result
of such assignment or otherwise).
Section 2.5. Rates and Payment of Interest on Loans.
(a) Rates. The Borrower promises to pay to the Administrative Agent for the account of
each Lender interest on the unpaid principal amount of each Loan (other than Swingline Loans) made by
such Lender for the period from and including the date of the making of such Loan to but excluding the
date such Loan shall be paid in full, at the following per annum rates:
(i) in the case of a Revolving Loan, during such periods as such Loan is (x) a
LIBOR Loan, at LIBOR for such Loan for the Interest Period therefor, plus the Applicable
Margin for Revolving Loans that are LIBOR Loans and (y) a Base Rate Loan, at the Base Rate
(as in effect from time to time), plus the Applicable Margin for Revolving Loans that are Base
Rate Loans; and
(ii) in the case of a Term Loan, during such periods as such Loan is (x) a LIBOR
Loan, at LIBOR for such Loan for the Interest Period therefor, plus the Applicable Margin for
Term Loans that are LIBOR Loans and (y) a Base Rate Loan, at the Base Rate (as in effect from
time to time), plus the Applicable Margin for Term Loans that are Base Rate Loans.
Notwithstanding the foregoing, while an Event of Default exists, the Borrower shall pay to the
Administrative Agent for the account of each Lender and each Issuing Bank, as the case may be, interest
at the Post-Default Rate on the outstanding principal amount of any Loan made by such Lender, on all
Reimbursement Obligations and on any other amount payable by the Borrower hereunder or under the
- 39 -
Notes held by such Lender to or for the account of such Lender (including without limitation, accrued but
unpaid interest to the extent permitted under Applicable Law); provided, however, except in the case of a
Default or Event of Default under Section 10.1.(a)(in which event the following notice shall not be
required), the Borrower shall not be required to pay interest at the Post-Default Rate unless the
Administrative Agent, at the direction of the Requisite Lenders, shall have notified the Borrower that
interest shall be payable at the Post-Default Rate.
(b) Payment of Interest. All accrued and unpaid interest on the outstanding principal amount
of each Loan (other than Swingline Loans) shall be payable (i) monthly in arrears on the first day of each
month, commencing with the first full calendar month occurring after the Effective Date and (ii) on any
date on which the principal balance of such Loan is due and payable in full (whether at maturity, due to
acceleration or otherwise). Interest payable at the Post-Default Rate shall be payable from time to time on
demand. All determinations by the Administrative Agent of an interest rate hereunder shall be conclusive
and binding on the Lenders and the Borrower for all purposes, absent manifest error.
(c) Borrower Information Used to Determine Applicable Interest Rates. The parties
understand that the applicable interest rate for the Obligations and certain fees set forth herein may be
determined and/or adjusted from time to time based upon certain financial ratios and/or other information
to be provided or certified to the Lenders by the Borrower (the “Borrower Information”). If it is
subsequently determined that any such Borrower Information was incorrect (for whatever reason,
including without limitation because of a subsequent restatement of earnings by the Borrower) at the time
it was delivered to the Administrative Agent, and if the applicable interest rate or fees calculated for any
period were lower than they should have been had the correct information been timely provided, then,
such interest rate and such fees for such period shall be automatically recalculated using correct Borrower
Information. The Administrative Agent shall promptly notify the Borrower in writing of any additional
interest and fees due because of such recalculation, and the Borrower shall pay such additional interest or
fees due to the Administrative Agent, for the account of each Lender, within 5 Business Days of receipt of
such written notice. Any recalculation of interest or fees required by this provision shall survive the
termination of this Agreement, and this provision shall not in any way limit any of the Administrative
Agent’s, any Issuing Bank’s, or any Lender’s other rights under this Agreement.
Section 2.6. Number of Interest Periods.
There may be no more than (a) 5 different Interest Periods for Revolving Loans that are LIBOR
Loans outstanding at the same time and (b) 5 different Interest Periods for Term Loans that are LIBOR
Loans outstanding at the same time.
Section 2.7. Repayment of Loans.
The Borrower shall repay the entire outstanding principal amount of, and all accrued but unpaid
interest on, (a) the Revolving Loans on the Revolving Termination Date and (b) the Term Loans on the
Term Loan Termination Date.
Section 2.8. Prepayments.
(a) Optional. Subject to Section 4.4., the Borrower may prepay any Loan at any time
without premium or penalty. The Borrower shall give the Administrative Agent at least 3 Business Days
prior written notice of the prepayment of any Loan. Each such notice of prepayment shall be irrevocable;
provided, that such notice of repayment in connection with a refinancing of the entire outstanding
principal amount of, and all accrued but unpaid interest on, the Loans may be contingent upon the closing
of such refinancing. Each voluntary prepayment of a Class of Loans shall be in an aggregate minimum
- 40 -
amount of $100,000 and integral multiples of $25,000 in excess thereof or the aggregate outstanding
principal amount of the Loans of such Class.
(b) Mandatory. If at any time the aggregate principal amount of all outstanding Revolving
Loans and Swingline Loans, together with the aggregate amount of all Letter of Credit Liabilities,
exceeds the aggregate amount of the Revolving Commitments, the Borrower shall promptly, and in any
event within 1 Business Day of demand, pay to the Administrative Agent for the account of the
Revolving Lenders the amount of such excess. Amounts paid under the preceding sentence shall be
applied, first, to pay all amounts of principal outstanding on the Swingline Loans, and then the Revolving
Loans and any Reimbursement Obligations pro rata in accordance with Section 3.2. and if any Letters of
Credit are outstanding at such time, the remainder, if any, shall be deposited into the Letter of Credit
Collateral Account for application to any Reimbursement Obligations. If the Borrower is required to pay
any outstanding LIBOR Loans by reason of this Section prior to the end of the applicable Interest Period
therefor, the Borrower shall pay all amounts due under Section 4.4.
(c) No Effect on Derivatives Contracts. No repayment or prepayment of the Loans pursuant
to this Section shall affect any of the Borrower’s obligations under any Derivatives Contracts entered into
with respect to any of the Loans.
Section 2.9. Continuation.
So long as no Event of Default exists, the Borrower may on any Business Day, with respect to
any LIBOR Loan, elect to maintain such LIBOR Loan or any portion thereof as a LIBOR Loan by
selecting a new Interest Period for such LIBOR Loan. Each Continuation of LIBOR Loans of the same
Class shall be in an aggregate minimum amount of $1,000,000 and integral multiples of $100,000 in
excess of that amount, and each new Interest Period selected under this Section shall commence on the
last day of the immediately preceding Interest Period. Each selection of a new Interest Period shall be
made by the Borrower giving to the Administrative Agent a Notice of Continuation not later than 12:00
p.m. Central time on the third Business Day prior to the date of any such Continuation. Such notice by
the Borrower of a Continuation shall be by telecopy, electronic mail or other similar form of
communication in the form of a Notice of Continuation, specifying (a) the proposed date of such
Continuation, (b) the LIBOR Loans, Class and portions thereof subject to such Continuation, (c) the
duration of the selected Interest Period and (d) the amount of such LIBOR Loan, or portion thereof, that
the Borrower has elected to have subject to a Derivatives Contract that provides a hedge against interest
rate risk and the Derivatives Contract(s) to which such amount is subject, all of which shall be specified
in such manner as is necessary to comply with all limitations on Loans outstanding hereunder. Each
Notice of Continuation shall be irrevocable by and binding on the Borrower once given. Promptly after
receipt of a Notice of Continuation, the Administrative Agent shall notify each Lender holding a Loan
being Continued of the proposed Continuation. If the Borrower shall fail to select in a timely manner a
new Interest Period for any LIBOR Loan in accordance with this Section, such Loan will automatically,
on the last day of the current Interest Period therefor, continue as a LIBOR Loan with an Interest Period
of one month; provided, however that if an Event of Default exists, such Loan will automatically, on the
last day of the current Interest Period therefor, Convert into a Base Rate Loan notwithstanding the first
sentence of Section 2.10. or the Borrower’s failure to comply with any of the terms of such Section.
Section 2.10. Conversion.
The Borrower may on any Business Day, upon the Borrower’s giving of a Notice of Conversion
to the Administrative Agent by telecopy, electronic mail or other similar form of communication, Convert
all or a portion of a Loan of one Type into a Loan of another Type; provided, however, a Base Rate Loan
may not be Converted into a LIBOR Loan if a Default or Event of Default exists. Each Conversion of
- 41 -
Base Rate Loans of a Class into LIBOR Loans shall be in an aggregate minimum amount of $1,000,000
and integral multiples of $100,000 in excess of that amount. Each Notice of Conversion shall be given
not later than 12:00 p.m. Central time 3 Business Days prior to the date of any proposed Conversion.
Promptly after receipt of a Notice of Conversion, the Administrative Agent shall notify each Lender
holding a Loan being Converted of the proposed Conversion. Subject to the restrictions specified above,
each Notice of Conversion shall be by telecopy, electronic mail or other similar form of communication
in the form of a Notice of Conversion specifying (a) the requested date of such Conversion, (b) the Type
and Class of Loan to be Converted, (c) the portion of such Type of Loan to be Converted, (d) the Type of
Loan such Loan is to be Converted into and (e) if such Conversion is into a LIBOR Loan, the requested
duration of the Interest Period of such Loan and the amount of such LIBOR Loan, if any, that the
Borrower has elected to have subject to a Derivatives Contract that provides a hedge against interest rate
risk and the Derivatives Contract(s) to which such amount is subject. Each Notice of Conversion shall be
irrevocable by and binding on the Borrower once given.
Section 2.11. Notes.
(a) Notes. Except in the case of a Lender that has notified the Administrative Agent in
writing that it elects not to receive Notes, the Loans of a Class made by a Lender shall, in addition to this
Agreement, also be evidenced by a Note of such Class, payable to the order of such Lender in a principal
amount equal to, in the case of a Revolving Lender, the amount of its Revolving Commitment as
originally in effect (or otherwise in effect at the time that the applicable Revolving Note is issued), and in
the case of a Term Loan Lender, the initial principal amount of its Term Loan and, in each case, otherwise
duly completed. The Swingline Loans made by a Swingline Lender to the Borrower shall, in addition to
this Agreement, also be evidenced by a Swingline Note payable to the order of such Swingline Lender.
(b) Records. The date, amount, interest rate, Type and duration of Interest Periods (if
applicable) of each Loan made by each Lender to the Borrower, and each payment made on account of
the principal thereof, shall be recorded by such Lender on its books and such entries shall be binding on
the Borrower absent manifest error; provided, however, that (i) the failure of a Lender to make any such
record shall not affect the obligations of the Borrower under any of the Loan Documents and (ii) if there
is a discrepancy between such records of a Lender and the statements of accounts maintained by the
Administrative Agent pursuant to Section 3.8., in the absence of manifest error, the statements of account
maintained by the Administrative Agent pursuant to Section 3.8. shall be controlling.
(c) Lost, Stolen, Destroyed or Mutilated Notes. Upon receipt by the Borrower of (i) written
notice from a Lender that a Note of such Lender has been lost, stolen, destroyed or mutilated, and
(ii)(A) in the case of loss, theft or destruction, an unsecured agreement of indemnity from such Lender in
form reasonably satisfactory to the Borrower, or (B) in the case of mutilation, upon surrender and
cancellation of such Note, the Borrower shall at its own expense execute and deliver to such Lender a
new Note dated the date of such lost, stolen, destroyed or mutilated Note.
Section 2.12. Voluntary Reductions of the Revolving Commitment.
The Borrower shall have the right to terminate or reduce the aggregate unused amount of the
Revolving Commitments (for which purpose use of the Revolving Commitments shall be deemed to
include the aggregate amount of all Letter of Credit Liabilities and the aggregate principal amount of all
outstanding Swingline Loans) at any time and from time to time without penalty or premium upon not
less than 5 Business Days prior written notice to the Administrative Agent of each such termination or
reduction, which notice shall specify the effective date thereof and the amount of any such reduction
(which in the case of any partial reduction of the Revolving Commitments shall not be less than
$10,000,000 and integral multiples of $5,000,000 in excess of that amount in the aggregate) and shall be
- 42 -
irrevocable once given and effective only upon receipt by the Administrative Agent (“Commitment
Reduction Notice”); provided, however, the Borrower may not reduce the aggregate amount of the
Revolving Commitments below $100,000,000 unless the Borrower is terminating the Revolving
Commitments in full. Promptly after receipt of a Commitment Reduction Notice the Administrative
Agent shall notify each Revolving Lender of the proposed termination or reduction of the Revolving
Commitments. The Revolving Commitments, once reduced or terminated pursuant to this Section, may
not be increased or reinstated.
Section 2.13. Extension of Revolving Termination Date.
The Borrower shall have the right, exercisable two times, to extend the Revolving Termination
Date by six months for each extension. The Borrower may exercise such right only by executing and
delivering to the Administrative Agent at least 30 days but not more than 90 days prior to the then current
Revolving Termination Date, a written request for such extension (the “Extension Request”). The
Administrative Agent shall notify the Revolving Lenders if it receives the Extension Request promptly
upon receipt thereof. Subject to satisfaction of the following conditions, the Revolving Termination Date
shall be extended for six months from the then current Revolving Termination Date effective upon receipt
by the Administrative Agent of payment of the fee referred to in the following clause (b): (a) immediately
prior to such extension and immediately after giving effect thereto, (i) no Default or Event of Default
shall exist and (ii) the representations and warranties made or deemed made by the Parent, the Borrower
and each other Loan Party in the Loan Documents to which any of them is a party, shall be true and
correct in all material respects (except in the case of a representation or warranty qualified by materiality,
in which case such representation or warranty shall be true and correct in all respects) on and as of the
date of such extension with the same force and effect as if made on and as of such date except to the
extent that such representations and warranties expressly relate solely to an earlier date (in which case
such representations and warranties shall have been true and correct in all material respects (except in the
case of a representation or warranty qualified by materiality, in which case such representation or
warranty shall be true and correct in all respects) on and as of such earlier date) and except for changes in
factual circumstances not prohibited under the Loan Documents and (b) the Borrower shall have paid the
Fees payable under Section 3.5.(d). At any time prior to the effectiveness of any such extension, upon the
Administrative Agent’s request (or the request of any Lender through the Administrative Agent), the
Parent shall deliver to the Administrative Agent a certificate from a Responsible Officer of the Parent
certifying the matters referred to in the immediately preceding clauses (a)(i) and (a)(ii).
Section 2.14. Expiration Date of Letters of Credit Past Commitment Termination.
If on the date the Revolving Commitments are terminated or reduced to zero (whether
voluntarily, by reason of the occurrence of an Event of Default or otherwise), there are any Letters of
Credit outstanding hereunder and the aggregate Stated Amount of such Letters of Credit exceeds the
balance of available funds on deposit in the Letter of Credit Collateral Account, then the Borrower shall,
on such date, pay to the Administrative Agent, for its benefit and the benefit of the Revolving Lenders
and the Issuing Banks, for deposit into the Letter of Credit Collateral Account, an amount of money equal
to the amount of such excess.
Section 2.15. Amount Limitations.
Notwithstanding any other term of this Agreement or any other Loan Document, no Revolving
Lender shall be required to make any Revolving Loan, the Issuing Banks shall not be required to issue a
Letter of Credit, and no reduction of the Revolving Commitments pursuant to Section 2.12. shall take
effect, if immediately after the making of such Loan, the issuance of such Letter of Credit or reduction in
the Revolving Commitments the aggregate principal amount of all outstanding Revolving Loans and
- 43 -
Swingline Loans, together with the aggregate amount of all Letter of Credit Liabilities, would exceed the
aggregate amount of the Revolving Commitments at such time.
Section 2.16. Increase in Revolving Commitments and Additional Term Loans.
The Borrower shall have the right (a) prior to the Revolving Termination Date, to request
increases in the aggregate amount of the Revolving Commitments and (b) prior to the Term Loan
Termination Date, to request the making of additional Term Loans (“Additional Term Loans”), in each
case, by providing written notice to the Administrative Agent, which notice shall be irrevocable once
given; provided, however, that after giving effect to any increase in the Revolving Commitments and the
making of any Additional Term Loans, the aggregate amount of the increases in the Revolving
Commitments and the aggregate principal amount of Additional Term Loans shall not exceed
$200,000,000. Each such increase in the Revolving Commitments or borrowing of Additional Term
Loans must be in an aggregate minimum amount of $25,000,000 and integral multiples of $5,000,000 in
excess thereof. Additional Term Loans shall be subject to the same terms and conditions of this
Agreement that are applicable to all other Term Loans. The Administrative Agent, in consultation with
the Borrower, shall manage all aspects of the syndication of such increase in the Revolving Commitments
or making of Additional Term Loans, as applicable, including decisions as to the selection of the existing
Lenders and/or other banks, financial institutions and other institutional lenders to be approached with
respect to such increase in the Revolving Commitments or the making of Additional Term Loans, as
applicable, and the allocations of the increase in the Revolving Commitments or the making of Additional
Term Loans, as applicable, among such existing Lenders and/or other banks, financial institutions and
other institutional lenders. No Lender shall be obligated in any way whatsoever to increase its Revolving
Commitment, provide a new Revolving Commitment or make an Additional Term Loan, and any new
Lender becoming a party to this Agreement in connection with any such requested increase in the
Revolving Commitments or the making of Additional Term Loans, as applicable, must be an Eligible
Assignee. If a new Revolving Lender becomes a party to this Agreement, or if any existing Lender is
increasing its Revolving Commitment or making an initial Revolving Commitment, such Lender shall on
the date it becomes a Revolving Lender hereunder (or in the case of an existing Revolving Lender,
increases its Revolving Commitment) (and as a condition thereto) purchase from the other Revolving
Lenders its Revolving Commitment Percentage or, in the case of a Revolving Lender increasing its
Revolving Commitment, the amount of the increase in its Revolving Commitment Percentage
(determined with respect to the Revolving Lenders’ respective Revolving Commitments and after giving
effect to the increase of Revolving Commitments) of any outstanding Revolving Loans, by making
available to the Administrative Agent for the account of such other Revolving Lenders, in same day
funds, an amount equal to the sum of (A) the portion of the outstanding principal amount of such
Revolving Loans to be purchased by such Revolving Lender, plus (B) the aggregate amount of payments
previously made by the other Revolving Lenders under Section 2.3.(j) that have not been repaid, plus
(C) interest accrued and unpaid to and as of such date on such portion of the outstanding principal amount
of such Revolving Loans. The Borrower shall pay to the Revolving Lenders amounts payable, if any, to
such Revolving Lenders under Section 4.4. as a result of the prepayment of any such Revolving Loans.
Effecting the increase of the Revolving Commitments or the making of Additional Term Loans under this
Section is subject to the following conditions precedent: (x) no Default or Event of Default shall be in
existence on the effective date of such increase in the Revolving Commitments or the making of such
Additional Term Loans, (y) the representations and warranties made or deemed made by the Borrower
and any other Loan Party in any Loan Document to which such Loan Party is a party shall be true and
correct in all material respects (except in the case of a representation or warranty qualified by materiality,
in which case such representation or warranty shall be true and correct in all respects) on the effective
date of such increase except to the extent that such representations and warranties expressly relate solely
to an earlier date (in which case such representations and warranties shall have been true and correct in all
material respects (except in the case of a representation or warranty qualified by materiality, in which
- 44 -
case such representation or warranty shall be true and correct in all respects) on and as of such earlier
date) and except for changes in factual circumstances not prohibited hereunder, and (z) the
Administrative Agent shall have received each of the following, in form and substance satisfactory to the
Administrative Agent: (i) if not previously delivered to the Administrative Agent, copies certified by the
Secretary or Assistant Secretary of (A) all partnership action taken by the Borrower to authorize such
increase in the Revolving Commitments or the borrowing of Additional Term Loans, as applicable, and
(B) all corporate or other necessary action taken by the Guarantor authorizing the guaranty of such
increase in the Revolving Commitments or the borrowing of Additional Term Loans, as applicable; (ii) if
requested by the Administrative Agent, an opinion of counsel to the Loan Parties, and addressed to the
Administrative Agent and the Lenders covering such matters as reasonably requested by the
Administrative Agent; (iii) in the case of an increase in the Revolving Commitments, new Revolving
Notes executed by the Borrower, payable to any new Revolving Lenders and replacement Revolving
Notes executed by the Borrower, payable to any existing Revolving Lenders increasing their Revolving
Commitments, in the amount of such Revolving Lender’s Revolving Commitment at the time of the
effectiveness of the applicable increase in the aggregate amount of the Revolving Commitments (in each
case unless any such Revolving Lender requests not to receive such a note); and (iv) in the case of the
making of Additional Term Loans, new Term Notes executed by the Borrower, payable to any new Term
Loan Lenders and replacement Term Notes executed by the Borrower, payable to any existing Term Loan
Lenders increasing their Term Loans, in the amount of such Term Loan Lender’s Term Loan (in each
case unless any such Term Loan Lender requests not to receive such a Note). In connection with any
increase in the aggregate amount of the Revolving Commitments or the making of any Additional Term
Loans pursuant to this Section any Lender becoming a party hereto shall (1) execute such documents and
agreements as the Administrative Agent may reasonably request and (2) in the case of any Lender that is
organized under the laws of a jurisdiction outside of the United States of America, provide to the
Administrative Agent, its name, address, tax identification number and/or such other information as shall
be necessary for the Administrative Agent to comply with “know your customer” and anti-money
laundering rules and regulations, including without limitation, the Patriot Act.
Section 2.17. Funds Transfer Disbursements.
The Borrower hereby authorizes the Administrative Agent to disburse the proceeds of any Loan
made by the Lenders or any of their Affiliates pursuant to the Loan Documents as requested by an
authorized representative of the Borrower to any of the accounts designated in the Disbursement
Instruction Agreement.
Section 2.18. Reallocations on Effective Date.
Simultaneously with the effectiveness of this Agreement, the Revolving Commitments of each of
the Revolving Lenders and the Existing Term Loans of the Existing Term Lenders, in each case, as
existing immediately prior to the Effective Date, shall be reallocated among the Lenders of the applicable
Class so that the Revolving Commitments and Term Loans are held by the Lenders of the applicable
Class as set forth on Schedule I attached hereto. To effect such reallocations:
(a) each Revolving Lender who either had no Revolving Commitment prior to the
effectiveness of this Agreement or whose Revolving Commitment upon the effectiveness of this
Agreement exceeds its Revolving Commitment immediately prior to the effectiveness of this Agreement
(each an “Assignee Revolving Lender”) shall be deemed to have purchased all right, title and interest in,
and all obligations in respect of, the Revolving Commitments from the Revolving Lenders whose
Revolving Commitments upon the effectiveness of this Agreement are less than their respective
Revolving Commitment immediately prior to the effectiveness of this Agreement (each an “Assignor
- 45 -
Revolving Lender”), so that the Revolving Commitments of the Revolving Lenders will be held by the
Revolving Lenders as set forth on Schedule I; and
(b) each Term Loan Lender who either had no Existing Term Loan prior to the effectiveness
of this Agreement or the initial principal amount of whose Term Loan as set forth on Schedule I exceeds
the outstanding principal amount of its Existing Term Loan immediately prior to the effectiveness of this
Agreement (each “Assignee Term Loan Lender”; and together with the Assignee Revolving Lenders, the
“Assignee Lenders”), shall be deemed to have purchased all right, title and interest in, and all obligations
in respect of, the Existing Term Loans of the Existing Term Lenders, the initial principal amount of
whose Term Loans as set forth on Schedule I are less than the outstanding principal amount of their
Existing Term Loans immediately prior to the effectiveness of this Agreement (each an “Assignor Term
Loan Lender”; and together with the Assignor Revolving Lenders, the “Assignor Lenders”), so that the
Term Loans of the Term Loan Lenders will be held by the Term Loan Lenders as set forth on Schedule I.
Such purchases shall be deemed to have been effected by way of, and subject to the terms and conditions
of, Assignment and Assumptions without the payment of any related assignment fee, and, except for
Notes to be provided to the Assignor Lenders and Assignee Lenders in the principal amount of their
respective Revolving Commitments or Term Loans, as applicable, no other documents or instruments
shall be, or shall be required to be, executed in connection with such assignments (all of which are hereby
waived). The Assignor Lenders, the Assignee Lenders and the other Lenders shall make such cash
settlements among themselves, through the Administrative Agent, as the Administrative Agent may direct
(after giving effect to the making of any Loans to be made on the Effective Date and any netting
transactions effected by the Administrative Agent) with respect to such reallocations and assignments so
that the aggregate outstanding principal amount of each Class of Loans shall be held by the Lenders of
such Class pro rata in accordance with the amount of the Revolving Commitments or Term Loans, as
applicable, as set forth on Schedule I.
ARTICLE III. PAYMENTS, FEES AND OTHER GENERAL PROVISIONS
Section 3.1. Payments.
(a) Payments by Borrower. Except to the extent otherwise provided herein, all payments of
principal, interest, Fees and other amounts to be made by the Borrower under this Agreement, the Notes
or any other Loan Document shall be made in Dollars, in immediately available funds, without setoff,
deduction or counterclaim (excluding Taxes required to be withheld pursuant to Section 3.10.), to the
Administrative Agent at the Principal Office, not later than 1:00 p.m. Central time on the date on which
such payment shall become due (each such payment made after such time on such due date to be deemed
to have been made on the next succeeding Business Day). Subject to Section 10.5., the Borrower shall, at
the time of making each payment under this Agreement or any other Loan Document, specify to the
Administrative Agent the amounts payable by the Borrower hereunder to which such payment is to be
applied. Each payment received by the Administrative Agent for the account of a Lender under this
Agreement or any Note shall be paid promptly to such Lender by wire transfer of immediately available
funds in accordance with the wiring instructions provided by such Lender to the Administrative Agent
from time to time, for the account of such Lender at the applicable Lending Office of such Lender. Each
payment received by the Administrative Agent for the account of an Issuing Bank under this Agreement
shall be paid promptly to such Issuing Bank by wire transfer of immediately available funds in
accordance with the wiring instructions provided by such Issuing Bank to the Administrative Agent from
time to time, for the account of such Issuing Bank. In the event the Administrative Agent fails to pay
such amounts to such Lender or such Issuing Bank, as the case may be, within one Business Day of
receipt of such amounts, the Administrative Agent shall pay interest on such amount until paid at a rate
per annum equal to the Federal Funds Rate from time to time in effect. If the due date of any payment
- 46 -
under this Agreement or any other Loan Document would otherwise fall on a day which is not a Business
Day such date shall be extended to the next succeeding Business Day and interest shall continue to accrue
at the rate, if any, applicable to such payment for the period of such extension.
(b) Presumptions Regarding Payments by Borrower. Unless the Administrative Agent shall
have received notice from the Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Issuing Banks hereunder that the Borrower
will not make such payment, the Administrative Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may (but shall not be obligated to), in reliance upon
such assumption, distribute to the applicable Lenders or the Issuing Banks, as the case may be, the
amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders
or the applicable Issuing Bank, as the case may be, severally agrees to repay to such Administrative
Agent on demand that amount so distributed to such Lender or such Issuing Bank, with interest thereon,
for each day from and including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by
the Administrative Agent in accordance with banking industry rules on interbank compensation.
Section 3.2. Pro Rata Treatment.
Except to the extent otherwise provided herein: (a) each borrowing from the Revolving Lenders
under Section 2.1.(a), 2.3.(e) and 2.4.(e) shall be made from the Revolving Lenders, each payment of the
fees under Section 3.5.(b), the first sentence of 3.5.(c) and Section 3.5.(d) shall be made for the account of
the Revolving Lenders, and each termination or reduction of the amount of the Revolving Commitments
under Section 2.12. shall be applied to the respective Revolving Commitments of the Revolving Lenders,
pro rata according to the amounts of their respective Revolving Commitments; (b) each payment or
prepayment of principal of a Class of Loans shall be made for the account of the Lenders of such Class
pro rata in accordance with the respective unpaid principal amounts of the Loans of such Class held by
them, provided that, subject to Section 3.9., if immediately prior to giving effect to any such payment in
respect of any Revolving Loans the outstanding principal amount of the Revolving Loans shall not be
held by the Revolving Lenders pro rata in accordance with their respective Revolving Commitments in
effect at the time such Loans were made, then such payment shall be applied to the Revolving Loans in
such manner as shall result, as nearly as is practicable, in the outstanding principal amount of the
Revolving Loans being held by the Revolving Lenders pro rata in accordance with their respective
Revolving Commitments; (c) each payment of interest on a Class of Loans shall be made for the account
of the Lenders of such Class pro rata in accordance with the amounts of interest on such Loans then due
and payable to the respective Class of Lenders; (d) the Conversion and Continuation of Loans of a
particular Class and Type (other than Conversions provided for by Sections 4.1.(c) and 4.5.) shall be
made pro rata among the Lenders of such Class according to the amounts of their Loans of such Class and
the then current Interest Period for each Lender’s portion of each Loan of such Type shall be
coterminous; (e) the Revolving Lenders’ participation in, and payment obligations in respect of,
Swingline Loans under Section 2.4., shall be in accordance with their respective Revolving Commitment
Percentages; and (f) the Revolving Lenders’ participation in, and payment obligations in respect of,
Letters of Credit under Section 2.3., shall be in accordance with their respective Revolving Commitment
Percentages. All payments of principal, interest, fees and other amounts in respect of the Swingline
Loans shall be for the account of the applicable Swingline Lender only (except to the extent any
Revolving Lender shall have acquired a participating interest in any such Swingline Loan pursuant to
Section 2.4.(e), in which case such payments shall be pro rata in accordance with such participating
interests).
- 47 -
Section 3.3. Sharing of Payments, Etc.
If a Lender shall obtain payment of any principal of, or interest on, any Loan of a Class made by
it to the Borrower under this Agreement or shall obtain payment on any other Obligation owing by the
Borrower or any other Loan Party through the exercise of any right of set-off, banker’s lien, counterclaim
or similar right or otherwise or through voluntary prepayments directly to a Lender or other payments
made by or on behalf of the Borrower or any other Loan Party to a Lender (other than any payment in
respect of Specified Derivatives Obligations) not in accordance with the terms of this Agreement and
such payment should be distributed to the Lenders of the same Class as such Lender in accordance with
Section 3.2. or Section 10.5., as applicable, such Lender shall promptly purchase from the other Lenders
of such Class participations in (or, if and to the extent specified by such Lender, direct interests in) the
Loans of such Class made by the other Lenders of such Class or other Obligations owed to such other
Lenders in such amounts, and make such other adjustments from time to time as shall be equitable, to the
end that all the Lenders of such Class shall share the benefit of such payment (net of any reasonable
expenses which may actually be incurred by such Lender in obtaining or preserving such benefit) in
accordance with the requirements of Section 3.2. or Section 10.5., as applicable. To such end, all the
Lenders of such Class shall make appropriate adjustments among themselves (by the resale of
participations sold or otherwise) if such payment is rescinded or must otherwise be restored. The
Borrower agrees that any Lender of such Class so purchasing a participation (or direct interest) in the
Loans or other Obligations owed to such other Lenders of such Class may exercise all rights of set-off,
banker’s lien, counterclaim or similar rights with respect to such participation as fully as if such Lender
were a direct holder of Loans of such Class in the amount of such participation. Nothing contained herein
shall require any Lender to exercise any such right or shall affect the right of any Lender to exercise and
retain the benefits of exercising, any such right with respect to any other indebtedness or obligation of the
Borrower.
Section 3.4. Several Obligations.
No Lender shall be responsible for the failure of any other Lender to make a Loan or to perform
any other obligation to be made or performed by such other Lender hereunder, and the failure of any
Lender to make a Loan or to perform any other obligation to be made or performed by it hereunder shall
not relieve the obligation of any other Lender to make any Loan or to perform any other obligation to be
made or performed by such other Lender.
Section 3.5. Fees.
(a) Closing Fee. On the Effective Date, the Borrower agrees to pay to the Administrative
Agent and each Lender all loan fees as have been agreed to in writing by the Borrower and the
Administrative Agent, which are then due and payable.
(b) Facility Fee. During the period from the Effective Date to but excluding the Revolving
Termination Date, the Borrower agrees to pay to the Administrative Agent for the account of the
Revolving Lenders a facility fee equal to the daily aggregate amount of the Revolving Commitments
(whether or not utilized) times a rate per annum equal to the Applicable Facility Fee. Such fee shall be
payable quarterly in arrears on the first day of each January, April, July and October during the term of
this Agreement and on the Revolving Termination Date or any earlier date of termination of the
Revolving Commitments or reduction of the Revolving Commitments to zero. The Borrower
acknowledges that the fee payable under this subsection is a bona fide commitment fee and is intended as
reasonable compensation to the Revolving Lenders for committing to make funds available to the
Borrower as described herein and for no other purposes.
- 48 -
(c) Letter of Credit Fees. The Borrower agrees to pay to the Administrative Agent for the
account of each Revolving Lender a letter of credit fee at a rate per annum equal to the Applicable Margin
for Revolving Loans that are LIBOR Loans times the daily average Stated Amount of each Letter of
Credit for the period from and including the date of issuance of such Letter of Credit (x) to and including
the date such Letter of Credit expires or is cancelled or (y) to but excluding the date such Letter of Credit
is drawn in full; provided, however, if any of the Obligations are bearing interest as the Post-Default rate
in accordance with Section 2.5.(a), such letter of credit fees shall accrue at the Post-Default Rate. The
fees provided for in this subsection shall be nonrefundable and payable, in the case of the fee provided for
in the first sentence, in arrears (i) quarterly on the first day of January, April, July and October, (ii) on the
Revolving Termination Date, (iii) on the date the Revolving Commitments are terminated or reduced to
zero and (iv) thereafter from time to time on demand of the Administrative Agent. The Borrower shall
pay directly to the applicable Issuing Bank from time to time on demand all commissions, charges, costs
and expenses in the amounts customarily charged or incurred by the applicable Issuing Bank from time to
time in like circumstances with respect to the issuance, amendment, renewal or extension of any Letter of
Credit issued by such Issuing Bank or any other transaction relating thereto.
(d) Extension Fee. If the Borrower exercises its right to extend the Revolving Termination
Date in accordance with Section 2.13., the Borrower shall pay to the Administrative Agent for the account
of each Revolving Lender a fee equal to seven and one-half one-hundredths of one percent (0.075%) of
the amount of such Lender’s Revolving Commitment (whether or not utilized) payable in connection with
each such extension.
(e) Administrative and Other Fees. The Borrower agrees to pay the administrative and other
fees of the Administrative Agent and the Lead Arrangers as provided in the Fee Letter and as may be
otherwise agreed to in writing from time to time by the Borrower and the Administrative Agent.
Section 3.6. Computations.
Unless otherwise expressly set forth herein, any accrued interest on any Loan, any Fees or any
other Obligations due hereunder shall be computed on the basis of a year of 360 days and the actual
number of days elapsed.
Section 3.7. Usury.
In no event shall the amount of interest due or payable on the Loans or other Obligations exceed
the maximum rate of interest allowed by Applicable Law and, if any such payment is paid by the
Borrower or any other Loan Party or received by any Lender, then such excess sum shall be credited as a
payment of principal, unless the Borrower shall notify the respective Lender in writing that the Borrower
elects to have such excess sum returned to it forthwith. It is the express intent of the parties hereto that
the Borrower not pay and the Lenders not receive, directly or indirectly, in any manner whatsoever,
interest in excess of that which may be lawfully paid by the Borrower under Applicable Law. The parties
hereto hereby agree and stipulate that the only charge imposed upon the Borrower for the use of money in
connection with this Agreement is and shall be the interest specifically described in Section 2.5.(a)(i) and
(ii) and, with respect to Swingline Loans, in Section 2.4.(c). Notwithstanding the foregoing, the parties
hereto further agree and stipulate that all agency fees, syndication fees, closing fees, facility fees, letter of
credit fees, underwriting fees, default charges, funding or “breakage” charges, increased cost charges,
attorneys’ fees and reimbursement for costs and expenses paid by the Administrative Agent or any Lender
to third parties or for damages incurred by the Administrative Agent or any Lender, in each case, in
connection with the transactions contemplated by this Agreement and the other Loan Documents, are
charges made to compensate the Administrative Agent or any such Lender for underwriting or
administrative services and costs or losses performed or incurred, and to be performed or incurred, by the
- 49 -
Administrative Agent and the Lenders in connection with this Agreement and shall under no
circumstances be deemed to be charges for the use of money. All charges other than charges for the use
of money shall be fully earned and nonrefundable when due.
Section 3.8. Statements of Account.
The Administrative Agent will account to the Borrower monthly with a statement of Loans,
accrued interest and Fees, charges and payments made pursuant to this Agreement and the other Loan
Documents, and such account rendered by the Administrative Agent shall be deemed conclusive upon the
Borrower absent manifest error. The failure of the Administrative Agent to deliver such a statement of
accounts shall not relieve or discharge the Borrower from any of its obligations hereunder.
Section 3.9. Defaulting Lenders.
Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a
Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent
permitted by Applicable Law:
(a) Waivers and Amendments. Such Defaulting Lender’s right to approve or disapprove any
amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the
definitions of Requisite Lenders and Requisite Class Lenders and as set forth in Section 12.6.
(b) Defaulting Lender Waterfall. Any payment of principal, interest, Fees or other amounts
received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or
mandatory, at maturity, pursuant to Article X. or otherwise) or received by the Administrative Agent from
a Defaulting Lender pursuant to Section 3.3. shall be applied at such time or times as may be determined
by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting
Lender to the Administrative Agent hereunder; second, in the case of a Defaulting Lender that is a
Revolving Lender, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to
any Issuing Bank or any Swingline Lender hereunder; third, in the case of a Defaulting Lender that is a
Revolving Lender, to Cash Collateralize the Issuing Banks’ Fronting Exposure with respect to such
Defaulting Lender in accordance with subsection (e) below; fourth, as the Borrower may request (so long
as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting
Lender has failed to fund its portion thereof as required by this Agreement, as determined by the
Administrative Agent; fifth, in the case of a Defaulting Lender that is a Revolving Lender, if so
determined by the Administrative Agent and the Borrower, to be held in a deposit account and released
pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect
to Loans under this Agreement and (y) Cash Collateralize the Issuing Banks’ future Fronting Exposure
with respect to such Defaulting Lender with respect to future Letters of Credit issued under this
Agreement, in accordance with subsection (e) below; sixth, to the payment of any amounts owing to the
Lenders, the Issuing Banks or the Swingline Lenders as a result of any judgment of a court of competent
jurisdiction obtained by any Lender, any Issuing Bank or any Swingline Lender against such Defaulting
Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so
long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a
result of any judgment of a court of competent jurisdiction obtained by the Borrower against such
Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement;
and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction;
provided that if (x) such payment is a payment of the principal amount of any Loans of any Class or
amounts owing by such Defaulting Lender under Section 2.3.(j) in respect of Letters of Credit (such
amounts “L/C Disbursements”), in respect of which such Defaulting Lender has not fully funded its
appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time
- 50 -
when the conditions set forth in Article V. were satisfied or waived, such payment shall be applied solely
to pay the Loans of such Class of, and L/C Disbursements owed to, all Non-Defaulting Lenders of the
applicable Class on a pro rata basis prior to being applied to the payment of any Loans of, or L/C
Disbursements owed to, such Defaulting Lender until such time as all Loans of such Class and, as
applicable, funded and unfunded participations in Letter of Credit Liabilities and Swingline Loans, are
held by the Lenders pro rata in accordance with their respective Revolving Commitment Percentages
(determined without giving effect to the immediately following subsection (d)) and all Term Loan are
held by the Term Loan Lenders pro rata as if there had been no Term Loan Lenders that are Defaulting
Lenders. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are
applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this
subsection shall be deemed paid to and redirected by such Defaulting Lender, and each Lender
irrevocably consents hereto.
(c) Certain Fees.
(i) No Defaulting Lender that is a Revolving Lender shall be entitled to receive any
Fee payable under Section 3.5.(b) for any period during which that Lender is a Defaulting Lender
(and the Borrower shall not be required to pay any such Fee that otherwise would have been
required to have been paid to that Defaulting Lender).
(ii) Each Defaulting Lender that is a Revolving Lender shall be entitled to receive
payable under Section 3.5.(c) for any period during which that Lender is a Defaulting Lender
only to the extent allocable to its Revolving Commitment Percentage of the stated amount of
Letters of Credit for which it has provided Cash Collateral pursuant to the immediately following
subsection (e).
(iii) With respect to any Fee not required to be paid to any Defaulting Lender
pursuant to the immediately preceding clause (ii), the Borrower shall (x) pay to each Non-
Defaulting Lender that portion of any such Fee otherwise payable to such Defaulting Lender with
respect to such Defaulting Lender’s participation in Letter of Credit Liabilities or Swingline
Loans that has been reallocated to such Non-Defaulting Lender pursuant to the immediately
following subsection (d), (y) pay to each Issuing Bank and each Swingline Lender, as applicable,
the amount of any such Fee otherwise payable to such Defaulting Lender to the extent allocable
to such Issuing Bank’s or such Swingline Lender’s Fronting Exposure to such Defaulting Lender,
and (z) not be required to pay the remaining amount of any such Fee.
(d) Reallocation of Participations to Reduce Fronting Exposure. In the case of a Defaulting
Lender that is a Revolving Lender, all or any part of such Defaulting Lender’s participation in Letter of
Credit Liabilities and Swingline Loans shall be reallocated among the Non-Defaulting Lenders that are
Revolving Lenders in accordance with their respective Revolving Commitment Percentages (determined
without regard to such Defaulting Lender’s Revolving Commitment) but only to the extent that such
reallocation does not cause the aggregate Revolving Credit Exposure of any Non-Defaulting Lender that
is a Revolving Lender to exceed such Non-Defaulting Lender’s Revolving Commitment. Subject to
Section 12.20, no reallocation hereunder shall constitute a waiver or release of any claim of any party
hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender,
including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased
exposure following such reallocation.
- 51 -
(e) Cash Collateral, Repayment of Swingline Loans.
(i) If the reallocation described in the immediately preceding subsection (d) above
cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or
remedy available to it hereunder or under law, (x) first, prepay Swingline Loans in an amount
equal to the Swingline Lenders’ Fronting Exposure and (y) second, Cash Collateralize the Issuing
Banks’ Fronting Exposure in accordance with the procedures set forth in this subsection.
(ii) At any time that there shall exist a Defaulting Lender that is a Revolving Lender,
within 1 Business Day following the written request of the Administrative Agent or the applicable
Issuing Bank (with a copy to the Administrative Agent), the Borrower shall Cash Collateralize
such Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender (determined after
giving effect to the immediately preceding subsection (d) and any Cash Collateral provided by
such Defaulting Lender) in an amount not less than the aggregate Fronting Exposure of such
Issuing Bank with respect to Letters of Credit issued and outstanding at such time.
(iii) The Borrower, and to the extent provided by any Defaulting Lender that is a
Revolving Lender, such Defaulting Lender, hereby grant to the Administrative Agent, for the
benefit of the Issuing Banks, and agree to maintain, a first priority security interest in all such
Cash Collateral as security for the obligation of Defaulting Lenders that are Revolving Lenders to
fund participations in respect of Letter of Credit Liabilities, to be applied pursuant to the
immediately following clause (iv). If at any time the Administrative Agent determines that Cash
Collateral is subject to any right or claim of any Person other than the Administrative Agent and
the Issuing Banks as herein provided, or that the total amount of such Cash Collateral is less than
the aggregate Fronting Exposure of the Issuing Banks with respect to Letters of Credit issued and
outstanding at such time, the Borrower will, promptly upon demand by the Administrative Agent,
pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to
eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting
Lender that is a Revolving Lender).
(iv) Notwithstanding anything to the contrary contained in this Agreement, Cash
Collateral provided under this Section in respect of Letters of Credit shall be applied to the
satisfaction of the obligation of a Defaulting Lender to fund participations in respect of Letter of
Credit Liabilities (including, as to Cash Collateral provided by a Defaulting Lender, any interest
accrued on such obligation) for which the Cash Collateral was so provided, prior to any other
application of such property as may otherwise be provided for herein.
(v) Cash Collateral (or the appropriate portion thereof) provided to reduce an Issuing
Bank’s Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to
this subsection following (x) the elimination of the applicable Fronting Exposure (including by
the termination of Defaulting Lender status of the applicable Lender), or (y) the determination by
the Administrative Agent and the applicable Issuing Bank that there exists excess Cash
Collateral; provided that, subject to the immediately preceding subsection (b), the Person
providing Cash Collateral and the applicable Issuing Bank may (but shall not be obligated to)
agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other
obligations and provided further that to the extent that such Cash Collateral was provided by the
Borrower, such Cash Collateral shall remain subject to the security interest granted pursuant to
the Loan Documents.
(f) Defaulting Lender Cure. If the Borrower and the Administrative Agent, and solely in the
case of a Defaulting Lender that is a Revolving Lender, the Swingline Lenders and the Issuing Banks,
- 52 -
agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify
the parties hereto, whereupon as of the effective date specified in such notice and subject to any
conditions set forth therein (which, in the case of a Defaulting Lender that is a Revolving Lender, may
include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable,
purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the
Administrative Agent may determine to be necessary to cause, as applicable, (i) the Revolving Loans and
funded and unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the
Revolving Lenders in accordance with their respective Revolving Commitment Percentages (determined
without giving effect to the immediately preceding subsection (d)) and (ii) the Term Loans to be held by
the Term Loan Lenders pro rata in as if there had been no Term Loan Lenders that were Defaulting
Lenders, whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will
be made retroactively with respect to Fees accrued or payments made by or on behalf of the Borrower
while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise
expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will
constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been
a Defaulting Lender.
(g) New Swingline Loans/Letters of Credit. So long as any Revolving Lender is a
Defaulting Lender, (i) each Swingline Lender shall not be required to fund any Swingline Loans unless it
is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan and (ii) each
Issuing Bank shall not be required to issue, extend, renew or increase any Letter of Credit unless it is
satisfied that it will have no Fronting Exposure after giving effect thereto.
Section 3.10. Taxes.
(a) Issuing Banks. For purposes of this Section, the term “Lender” includes the Issuing
Banks and the Administrative Agent, the term “Applicable Law” includes FATCA and the term “IRS
Form W-8BEN” includes both IRS Form W-8BEN and IRS Form W-8BEN-E, as applicable.
(b) Payments Free of Taxes. Any and all payments by or on account of any obligation of the
Borrower or any other Loan Party under any Loan Document shall be made without deduction or
withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined
in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of
any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be
entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld
to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an
Indemnified Tax, then the sum payable by the Borrower or other applicable Loan Party shall be increased
as necessary so that after such deduction or withholding has been made (including such deductions and
withholdings applicable to additional sums payable under this Section) the applicable Recipient receives
an amount equal to the sum it would have received had no such deduction or withholding been made.
(c) Payment of Other Taxes by the Borrower. The Borrower and the other Loan Parties shall
timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of
the Administrative Agent timely reimburse it for the payment of, any Other Taxes.
(d) Indemnification by the Borrower. Without duplication of any obligation under the
preceding subsections (b) or (c), the Borrower and the other Loan Parties shall jointly and severally
indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified
Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this
Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such
Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such
- 53 -
Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.
A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a
copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a
Lender, shall be conclusive absent manifest error.
(e) Indemnification by the Lenders. Each Lender shall severally indemnify the
Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to
such Lender (but only to the extent that the Borrower or another Loan Party has not already indemnified
the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower
and the other Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with
the provisions of Section 12.5. relating to the maintenance of a Participant Register and (iii) any Excluded
Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in
connection with any Loan Document, and any reasonable expenses arising therefrom or with respect
thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to any
Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby
authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such
Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from
any other source against any amount due to the Administrative Agent under this subsection. The
provisions of this subsection shall continue to inure to the benefit of an Administrative Agent following
its resignation as Administrative Agent.
(f) Evidence of Payments. As soon as practicable after any payment of Taxes by the
Borrower or any other Loan Party to a Governmental Authority pursuant to this Section, the Borrower or
such other Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt
issued by such Governmental Authority evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
(g) Status of Lenders.
(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax
with respect to payments made under any Loan Document shall deliver to the Borrower and the
Administrative Agent, at the time or times reasonably requested by the Borrower or the
Administrative Agent, such properly completed and executed documentation reasonably
requested by the Borrower or the Administrative Agent as will permit such payments to be made
without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably
requested by the Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by Applicable Law or reasonably requested by the Borrower or the Administrative
Agent as will enable the Borrower or the Administrative Agent to determine whether or not such
Lender is subject to backup withholding or information reporting requirements. Notwithstanding
anything to the contrary in the preceding two sentences, the completion, execution and
submission of such documentation (other than such documentation set forth in the immediately
following clauses (ii)(A), (ii)(B) and (ii)(D)) shall not be required if in the Lender’s reasonable
judgment such completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would materially prejudice the legal or commercial position of
such Lender.
(ii) Without limiting the generality of the foregoing, in the event that the Borrower is
a U.S. Person:
- 54 -
(A) any Lender that is a U.S. Person shall deliver to the Borrower and the
Administrative Agent on or prior to the date on which such Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the
Borrower or the Administrative Agent), an electronic copy (or an original if requested by
the Borrower or the Administrative Agent) of an executed IRS Form W-9 (or any
successor form) certifying that such Lender is exempt from U.S. federal backup
withholding tax;
(B) any Foreign Lender shall, to the extent it is legally entitled to do so,
deliver to the Borrower and the Administrative Agent (in such number of copies as shall
be requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the
reasonable request of the Borrower or the Administrative Agent), whichever of the
following is applicable:
(I) in the case of a Foreign Lender claiming the benefits of an
income tax treaty to which the United States is a party (x) with respect to
payments of interest under any Loan Document, an electronic copy (or an
original if requested by the Borrower or the Administrative Agent) of an
executed IRS Form W-8BEN establishing an exemption from, or reduction of,
U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty
and (y) with respect to any other applicable payments under any Loan Document,
IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the “business profits” or “other income” article of
such tax treaty;
(II) an electronic copy (or an original if requested by the Borrower or
the Administrative Agent) of an executed IRS Form W-8ECI;
(III) in the case of a Foreign Lender claiming the benefits of the
exemption for portfolio interest under Section 881(c) of the Internal Revenue
Code, (x) a certificate substantially in the form of Exhibit N-1 to the effect that
such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A)
of the Internal Revenue Code, a “10 percent shareholder” of the Borrower within
the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a
“controlled foreign corporation” described in Section 881(c)(3)(C) of the Internal
Revenue Code (a “U.S. Tax Compliance Certificate”) and (y) an electronic copy
(or an original if requested by the Borrower or the Administrative Agent) of IRS
Form W-8BEN; or
(IV) to the extent a Foreign Lender is not the beneficial owner, an
electronic copy (or an original if requested by the Borrower or the Administrative
Agent) of an executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI,
IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form
of Exhibit N-2 or Exhibit N-3, IRS Form W-9, and/or other certification
documents from each beneficial owner, as applicable; provided that if the
Foreign Lender is a partnership and one or more direct or indirect partners of
such Foreign Lender are claiming the portfolio interest exemption, such Foreign
Lender may provide a U.S. Tax Compliance Certificate substantially in the form
of Exhibit N-4 on behalf of each such direct and indirect partner;
- 55 -
(C) any Foreign Lender shall, to the extent it is legally entitled to do so,
deliver to the Borrower and the Administrative Agent (in such number of copies as shall
be requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the
reasonable request of the Borrower or the Administrative Agent), an electronic copy (or
an original if requested by the Borrower or the Administrative Agent) of any other form
prescribed by Applicable Law as a basis for claiming exemption from or a reduction in
U.S. federal withholding Tax, duly completed, together with such supplementary
documentation as may be prescribed by Applicable Law to permit the Borrower or the
Administrative Agent to determine the withholding or deduction required to be made; and
(D) if a payment made to a Lender under any Loan Document would be
subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail
to comply with the applicable reporting requirements of FATCA (including those
contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable),
such Lender shall deliver to the Borrower and the Administrative Agent at the time or
times prescribed by Applicable Law and at such time or times reasonably requested by
the Borrower or the Administrative Agent such documentation prescribed by Applicable
Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code)
and such additional documentation reasonably requested by the Borrower or the
Administrative Agent as may be necessary for the Borrower and the Administrative
Agent to comply with their obligations under FATCA and to determine that such Lender
has complied with such Lender’s obligations under FATCA or to determine the amount
to deduct and withhold from such payment. Solely for purposes of this clause (D),
“FATCA” shall include any amendments made to FATCA after the date of this
Agreement.
Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or
inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and
the Administrative Agent in writing of its legal inability to do so.
(h) Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in
good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this
Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the
indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made
under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses
(including Taxes) of such indemnified party and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request
of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this
subsection (plus any penalties, interest or other charges imposed by the relevant Governmental Authority)
in the event that such indemnified party is required to repay such refund to such Governmental Authority.
Notwithstanding anything to the contrary in this subsection, in no event will the indemnified party be
required to pay any amount to an indemnifying party pursuant to this subsection the payment of which
would place the indemnified party in a less favorable net after-Tax position than the indemnified party
would have been in if the Tax subject to indemnification and giving rise to such refund had not been
deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with
respect to such Tax had never been paid. This subsection shall not be construed to require any
indemnified party to make available its Tax returns (or any other information relating to its Taxes that it
deems confidential) to the indemnifying party or any other Person.
- 56 -
(i) Survival. Each party’s obligations under this Section shall survive the resignation or
replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender,
the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under
any Loan Document.
ARTICLE IV. YIELD PROTECTION, ETC.
Section 4.1. Additional Costs; Capital Adequacy.
(a) Capital Adequacy. If any Lender determines that any Regulatory Change affecting such
Lender or any lending office of such Lender or such Lender’s holding company, if any, regarding capital
or liquidity ratios or requirements, has or would have the effect of reducing the rate of return on such
Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this
Agreement, the Commitment of such Lender or the Loans made by, or participations in Letters of Credit
or Swingline Loans held by, such Lender, to a level below that which such Lender or such Lender’s
holding company could have achieved but for such Regulatory Change (taking into consideration such
Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy),
then from time to time the Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction suffered.
(b) Additional Costs. In addition to, and not in limitation of the immediately preceding
subsection (a), the Borrower shall promptly pay to the Administrative Agent for the account of a Lender
from time to time such amounts as such Lender may determine to be necessary to compensate such
Lender for any costs incurred by such Lender that it determines are attributable to its making or
maintaining of any LIBOR Loans or its obligation to make any LIBOR Loans hereunder, any reduction in
any amount receivable by such Lender under this Agreement or any of the other Loan Documents in
respect of any of such LIBOR Loans or such obligation or the maintenance by such Lender of capital in
respect of its LIBOR Loans or its Commitment (such increases in costs and reductions in amounts
receivable being herein called “Additional Costs”), resulting from any Regulatory Change that:
(i) changes the basis of taxation of any amounts payable to such Lender under this
Agreement or any of the other Loan Documents in respect of any of such LIBOR Loans or its
Commitment (other than Indemnified Taxes, Taxes described in clauses (b) through (d) of the
definition of Excluded Taxes and Connection Income Taxes);
(ii) imposes or modifies any reserve, special deposit, compulsory loan, insurance
charge or similar requirements (other than Regulation D of the Board of Governors of the Federal
Reserve System or other similar reserve requirement applicable to any other category of liabilities
or category of extensions of credit or other assets by reference to which the interest rate on
LIBOR Loans is determined to the extent utilized when determining LIBOR for such Loans)
relating to any extensions of credit or other assets of, or any deposits with or other liabilities of, or
other credit extended by, or any other acquisition of funds by such Lender (or its parent
corporation), or any commitment of such Lender (including, without limitation, the Commitment
of such Lender hereunder); or
(iii) imposes on any Lender or the London interbank market any other condition, cost
or expense (other than Taxes) affecting this Agreement or the Loans made by such Lender.
(c) Lender’s Suspension of LIBOR Loans. Without limiting the effect of the provisions of
the immediately preceding subsections (a) and (b), if by reason of any Regulatory Change, any Lender
either (i) incurs Additional Costs based on or measured by the excess above a specified level of the
- 57 -
amount of a category of deposits or other liabilities of such Lender that includes deposits by reference to
which the interest rate on LIBOR Loans is determined as provided in this Agreement or a category of
extensions of credit or other assets of such Lender that includes LIBOR Loans or (ii) becomes subject to
restrictions on the amount of such a category of liabilities or assets that it may hold, then, if such Lender
so elects by notice to the Borrower (with a copy to the Administrative Agent), the obligation of such
Lender to make or Continue, or to Convert Base Rate Loans into, LIBOR Loans hereunder shall be
suspended until such Regulatory Change ceases to be in effect (in which case the provisions of
Section 4.5. shall apply).
(d) Additional Costs in Respect of Letters of Credit. Without limiting the obligations of the
Borrower under the preceding subsections of this Section (but without duplication), if as a result of any
Regulatory Change or any risk-based capital guideline or other requirement heretofore or hereafter issued
by any Governmental Authority there shall be imposed, modified or deemed applicable any Tax (other
than Indemnified Taxes, Taxes described in clauses (b) through (d) of the definition of Excluded Taxes
and Connection Income Taxes), reserve, special deposit, capital adequacy or similar requirement against
or with respect to or measured by reference to Letters of Credit and the result shall be to increase the cost
to the applicable Issuing Bank of issuing (or any Revolving Lender of purchasing participations in) or
maintaining its obligation hereunder to issue (or purchase participations in) any Letter of Credit or reduce
any amount receivable by an Issuing Bank or any Revolving Lender hereunder in respect of any Letter of
Credit, then, upon demand by such Issuing Bank or such Lender, the Borrower shall promptly, and in any
event within 1 Business Day of demand, pay to such Issuing Bank or, in the case of such Lender, to the
Administrative Agent for the account of such Lender, from time to time as specified by such Issuing Bank
or such Lender, such additional amounts as shall be sufficient to compensate such Issuing Bank or such
Lender for such increased costs or reductions in amount.
(e) Notification and Determination of Additional Costs. Each of the Administrative Agent,
each Issuing Bank and each Lender, as the case may be, agrees to notify the Borrower (and in the case of
the Issuing Bank or a Lender, to notify the Administrative Agent) in writing of any event occurring after
the Agreement Date entitling the Administrative Agent, the applicable Issuing Bank or such Lender to
compensation under any of the preceding subsections of this Section as promptly as practicable; provided,
however, that the failure of the Administrative Agent, any Issuing Bank or any Lender to give such
written notice shall not release the Borrower from any of its obligations hereunder. The Administrative
Agent, each Issuing Bank and each Lender, as the case may be, agrees to furnish to the Borrower (and in
the case of an Issuing Bank or a Lender to the Administrative Agent as well) a certificate setting forth the
basis and amount of each request for compensation under this Section. Determinations by the
Administrative Agent, such Issuing Bank or such Lender, as the case may be, of the effect of any
Regulatory Change shall be conclusive and binding for all purposes, absent manifest error. The Borrower
shall pay the Administrative Agent, any such Issuing Bank and or any such Lender, as the case may be,
the amount shown as due on any such certificate within 30 days after receipt thereof.
(f) Delay in Requests. Failure or delay on the part of any Lender or an Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such
Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to
compensate a Lender or an Issuing Bank pursuant to this Section 4.1. for any increased costs incurred or
reductions suffered more than 180 days prior to the date that such Lender or such Issuing Bank, as the
case may be, notifies the Borrower of the Regulatory Change giving rise to such increased costs or
reductions, and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor (except
that, if the Regulatory Change giving rise to such increased costs or reductions is retroactive, then the 180
days period referred to above shall be extended to include the period of retroactive effect thereof).
- 58 -
Section 4.2. Suspension of LIBOR Loans.
Anything herein to the contrary notwithstanding, if, on or prior to the determination of LIBOR for
any Interest Period, the Administrative Agent determines in good faith (which determination shall be
conclusive) that:
(a) reasonable and adequate means do not exist for the ascertaining LIBOR for such
Interest Period;
(b) quotations of interest rates for the relevant deposits referred to in the definition of
LIBOR are not being provided in the relevant amounts or for the relevant maturities for purposes
of determining rates of interest for LIBOR Loans as provided herein; or
(c) the relevant rates of interest referred to in the definition of LIBOR upon the basis
of which the rate of interest for LIBOR Loans for such Interest Period is to be determined are not
likely to adequately cover the cost to any Lender of making or maintaining LIBOR Loans for
such Interest Period;
then the Administrative Agent shall give the Borrower and each Lender prompt notice thereof and, so
long as such condition remains in effect, the Lenders shall be under no obligation to, and shall not, make
additional LIBOR Loans, Continue LIBOR Loans or Convert Loans into LIBOR Loans and the Borrower
shall, on the last day of each current Interest Period for each outstanding LIBOR Loan, either prepay such
Loan or Convert such Loan into a Base Rate Loan
Section 4.3. Illegality.
Notwithstanding any other provision of this Agreement, if any Lender shall determine (which
determination shall be conclusive and binding) that it is unlawful for such Lender to honor its obligation
to make or maintain LIBOR Loans hereunder, then such Lender shall promptly notify the Borrower
thereof (with a copy of such notice to the Administrative Agent) and such Lender’s obligation to make or
Continue, or to Convert Loans of any other Type into, LIBOR Loans shall be suspended until such time
as such Lender may again make and maintain LIBOR Loans (in which case the provisions of Section 4.5.
shall be applicable).
Section 4.4. Compensation.
The Borrower shall pay to the Administrative Agent for the account of each Lender, upon the
request of the Administrative Agent, such amount or amounts as the Administrative Agent shall
determine in its sole discretion shall be sufficient to compensate such Lender for any loss, cost or expense
attributable to:
(a) any payment or prepayment (whether mandatory or optional) of a LIBOR Loan,
or Conversion of a LIBOR Loan, made by such Lender for any reason (including, without
limitation, acceleration) on a date other than the last day of the Interest Period for such Loan; or
(b) any failure by the Borrower for any reason (including, without limitation, the
failure of any of the applicable conditions precedent specified in Section 5.2. to be satisfied, but
excluding any failure resulting from the operation of Section 4.2.) to borrow a LIBOR Loan from
such Lender on the date for such borrowing, or to Convert a Base Rate Loan into a LIBOR Loan
or Continue a LIBOR Loan on the requested date of such Conversion or Continuation.
- 59 -
Not in limitation of the foregoing, such compensation shall include, without limitation, an amount equal
to the then present value of (A) the amount of interest that would have accrued on such LIBOR Loan for
the remainder of the Interest Period at the rate applicable to such LIBOR Loan, less (B) the amount of
interest that would accrue on the same LIBOR Loan for the same period if LIBOR were set on the date on
which such LIBOR Loan was repaid, prepaid or Converted or the date on which the Borrower failed to
borrow, Convert or Continue such LIBOR Loan, as applicable, calculating present value by using as a
discount rate LIBOR quoted on such date. Upon the Borrower’s request, the Administrative Agent shall
provide the Borrower with a statement setting forth the basis for requesting such compensation and the
method for determining the amount thereof. Any such statement shall be conclusive absent manifest
error.
Section 4.5. Treatment of Affected Loans.
If the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate
Loans into, LIBOR Loans shall be suspended pursuant to Section 4.1.(c), Section 4.2. or Section 4.3. then
such Lender’s LIBOR Loans shall be automatically Converted into Base Rate Loans on the last day(s) of
the then current Interest Period(s) for LIBOR Loans (or, in the case of a Conversion required by
Section 4.1.(c), Section 4.2., or Section 4.3. on such earlier date as such Lender or the Administrative
Agent, as applicable, may specify to the Borrower (with a copy to the Administrative Agent, as
applicable)) and, unless and until such Lender or the Administrative Agent, as applicable, gives notice as
provided below that the circumstances specified in Section 4.1., Section 4.2. or Section 4.3. that gave rise
to such Conversion no longer exist:
(a) to the extent that such Lender’s LIBOR Loans have been so Converted, all
payments and prepayments of principal that would otherwise be applied to such Lender’s LIBOR
Loans shall be applied instead to its Base Rate Loans; and
(b) all Loans that would otherwise be made or Continued by such Lender as LIBOR
Loans shall be made or Continued instead as Base Rate Loans, and all Base Rate Loans of such
Lender that would otherwise be Converted into LIBOR Loans shall remain as Base Rate Loans.
If such Lender or the Administrative Agent, as applicable, gives notice to the Borrower (with a copy to
the Administrative Agent, as applicable) that the circumstances specified in Section 4.1.(c), 4.2. or 4.3.
that gave rise to the Conversion of such Lender’s LIBOR Loans pursuant to this Section no longer exist
(which such Lender or the Administrative Agent, as applicable, agrees to do promptly upon such
circumstances ceasing to exist) at a time when LIBOR Loans made by other Lenders are outstanding, then
such Lender’s Base Rate Loans shall be automatically Converted, on the first day(s) of the next
succeeding Interest Period(s) for such outstanding LIBOR Loans, to the extent necessary so that, after
giving effect thereto, all Loans held by the Lenders holding LIBOR Loans and by such Lender are held
pro rata (as to principal amounts, Types and Interest Periods) in accordance with their respective
Commitments, in the case of Revolving Loans, or the outstanding principal amount of Term Loans, in the
case of Term Loans.
Section 4.6. Affected Lenders.
If (a) a Lender requests compensation pursuant to Section 3.10. or 4.1., and the Requisite Lenders
are not also doing the same, or (b) the obligation of any Lender to make LIBOR Loans or to Continue, or
to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 4.1.(b) or 4.3. but
the obligation of the Requisite Lenders shall not have been suspended under such Sections, or (c) a
Lender becomes a Defaulting Lender or a Non-Consenting Lender, then, so long as there does not then
exist any Default or Event of Default, the Borrower may demand that such Lender (the “Affected
- 60 -
Lender”), and upon such demand the Affected Lender shall promptly, assign its Commitment, if any, and
Loans to an Eligible Assignee subject to and in accordance with the provisions of Section 12.5.(b) for a
purchase price equal to (x) the aggregate principal balance of all Loans then owing to the Affected
Lender, plus (y) in the case of an Affected Lender that is a Revolving Lender, the aggregate amount of
payments previously made by the Affected Lender under Section 2.3.(j) that have not been repaid, plus
(z) any accrued but unpaid interest and accrued but unpaid fees owing to the Affected Lender, or any
other amount as may be mutually agreed upon by such Affected Lender and Eligible Assignee. Each of
the Administrative Agent and the Affected Lender shall reasonably cooperate in effectuating the
replacement of such Affected Lender under this Section, but at no time shall the Administrative Agent,
such Affected Lender nor any other Lender nor any Titled Agent be obligated in any way whatsoever to
initiate any such replacement or to assist in finding an Eligible Assignee. The exercise by the Borrower
of its rights under this Section shall be at the Borrower’s sole cost and expense and at no cost or expense
to the Administrative Agent, the Affected Lender or any of the other Lenders. The terms of this Section
shall not in any way limit the Borrower’s obligation to pay to any Affected Lender compensation owing
to such Affected Lender pursuant to this Agreement (including, without limitation, pursuant to
Sections 3.10., 4.1. or 4.4.) with respect to any period up to the date of replacement.
Section 4.7. Change of Lending Office.
Each Lender agrees that it will use reasonable efforts (consistent with its internal policy and legal
and regulatory restrictions) to designate an alternate Lending Office with respect to any of its Loans
affected by the matters or circumstances described in Sections 3.10., 4.1. or 4.3. to reduce the liability of
the Borrower or avoid the results provided thereunder, so long as such designation is not disadvantageous
to such Lender as determined by such Lender in its sole discretion, except that such Lender shall have no
obligation to designate a Lending Office located in the United States of America.
Section 4.8. Assumptions Concerning Funding of LIBOR Loans.
Calculation of all amounts payable to a Lender under this Article shall be made as though such
Lender had actually funded LIBOR Loans through the purchase of deposits in the relevant market bearing
interest at the rate applicable to such LIBOR Loans in an amount equal to the amount of the LIBOR
Loans and having a maturity comparable to the relevant Interest Period; provided, however, that each
Lender may fund each of its LIBOR Loans in any manner it sees fit and the foregoing assumption shall be
used only for calculation of amounts payable under this Article.
ARTICLE V. CONDITIONS PRECEDENT
Section 5.1. Initial Conditions Precedent.
The obligation of the Lenders to effect or permit the occurrence of the first Credit Event
hereunder, whether as the making of a Loan or the issuance of a Letter of Credit, and the effectiveness of
the amendment and restatement of the Existing Credit Agreement, are subject to the satisfaction or waiver
of the following conditions precedent:
(a) The Administrative Agent shall have received each of the following, in form and
substance satisfactory to the Administrative Agent:
(i) counterparts of this Agreement executed by each of the parties hereto;
- 61 -
(ii) Notes executed by the Borrower, payable to each Lender (other than any Lender
that has requested that it not receive Notes) and complying with the terms of Section 2.11.(a) and
the Swingline Note executed by the Borrower;
(iii) the Guaranty executed by the Parent;
(iv) an opinion of counsel to the Borrower and the other Loan Parties, addressed to
the Administrative Agent and the Lenders and in the form set forth in Exhibit J;
(v) the certificate or articles of incorporation or formation, articles of organization,
certificate of limited partnership, declaration of trust or other comparable organizational
instrument (if any) of each Loan Party certified as of a recent date by the Secretary of State of the
state of formation of such Loan Party;
(vi) a certificate of good standing (or certificate of similar meaning) with respect to
each Loan Party issued as of a recent date by the Secretary of State of the state of formation of
each such Loan Party and certificates of qualification to transact business or other comparable
certificates issued as of a recent date by each Secretary of State (and any state department of
taxation, as applicable) of each state in which such Loan Party is required to be so qualified and
where failure to be so qualified could reasonably be expected to have a Material Adverse Effect;
(vii) a certificate of incumbency signed by the Secretary or Assistant Secretary (or
other individual performing similar functions) of each Loan Party with respect to each of the
officers of such Loan Party authorized to execute and deliver the Loan Documents to which such
Loan Party is a party, and in the case of the Borrower, authorized to execute and deliver on behalf
of the Borrower Notices of Revolving Borrowing, the Notice of Term Borrowing, Notices of
Swingline Borrowing, requests for Letters of Credit, Notices of Conversion and Notices of
Continuation;
(viii) copies certified by the Secretary or Assistant Secretary (or other individual
performing similar functions) of each Loan Party of (A) the by-laws of such Loan Party, if a
corporation, the operating agreement, if a limited liability company, the partnership agreement, if
a limited or general partnership, or other comparable document in the case of any other form of
legal entity and (B) all corporate, partnership, member or other necessary action taken by such
Loan Party to authorize the execution, delivery and performance of the Loan Documents to which
it is a party;
(ix) a Compliance Certificate calculated as of June 30, 2017 giving pro forma effect
to the transactions contemplated by this Agreement;
(x) a completed Disbursement Instruction Agreement effective as of the Agreement
Date;
(xi) evidence that the Fees, if any, then due and payable under Section 3.5., together
with all other fees, expenses and reimbursement amounts due and payable to the Administrative
Agent and any of the Lenders, including without limitation, the fees and expenses of counsel to
the Administrative Agent, have been paid;
(xii) evidence that all accrued and unpaid interest and fees owing by the Loan Parties
under the Existing Credit Agreement have been paid in full; and
- 62 -
(xiii) such other documents, agreements and instruments as the Administrative Agent,
or any Lender through the Administrative Agent, may reasonably request;
(b) since June 30, 2017, there shall not have occurred or become known to the
Administrative Agent or any of the Lenders any event or condition that has had or could reasonably be
expected to have a Material Adverse Effect;
(c) no litigation, action, suit, investigation or other arbitral, administrative or judicial
proceeding shall be pending or threatened which could reasonably be expected to (i) result in a Material
Adverse Effect or (ii) restrain or enjoin, or otherwise materially and adversely affect, the ability of the
Parent, the Borrower or any other Loan Party to fulfill its obligations under the Loan Documents to which
it is a party;
(d) the Parent, the Borrower, the other Loan Parties and the other Subsidiaries shall have
received all approvals, consents and waivers, and shall have made or given all necessary filings and
notices as shall be required to consummate the transactions contemplated hereby without the occurrence
of any default under, conflict with or violation of (i) any Applicable Law or (ii) any agreement, document
or instrument to which any Loan Party is a party or by which any of them or their respective properties is
bound, except for such approvals, consents, waivers, filings and notices the receipt, making or giving of
which could not reasonably be likely to (x) have a Material Adverse Effect, or (y) restrain or enjoin, or
otherwise materially and adversely affect the ability of the Parent, the Borrower or any other Loan Party
to fulfill its obligations under the Loan Documents to which it is a party; and
(e) the Borrower and each other Loan Party shall have provided all information requested by
the Administrative Agent and each Lender in order to comply with applicable “know your customer” and
anti-money laundering rules and regulations, including without limitation, the Patriot Act.
The Administrative Agent shall give notice (which may be by electronic mail or other similar means of
electronic communication) to the Borrower and the Lenders promptly upon its determination that all of
the conditions precedent set forth in this Section shall have been fulfilled or waived by all of the Lenders.
Section 5.2. Conditions Precedent to All Loans and Letters of Credit.
In addition to satisfaction or waiver of the conditions precedent contained in Section 5.1., the
obligations of (i) Lenders to make any Loans and (ii) the Issuing Banks to issue Letters of Credit, are each
subject to the further conditions precedent that: (a) no Default or Event of Default shall exist as of the
date of the making of such Loan or date of issuance of such Letter of Credit or would exist immediately
after giving effect thereto, and no violation of the limits described in Section 2.15. would occur after
giving effect thereto; (b) the representations and warranties made or deemed made by the Parent, the
Borrower and each other Loan Party in the Loan Documents to which any of them is a party, shall be true
and correct in all material respects (except in the case of a representation or warranty qualified by
materiality, in which case such representation or warranty shall be true and correct in all respects) on and
as of the date of the making of such Loan or date of issuance of such Letter of Credit with the same force
and effect as if made on and as of such date except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations and warranties shall have
been true and correct in all material respects (except in the case of a representation or warranty qualified
by materiality, in which case such representation or warranty shall be true and correct in all respects) on
and as of such earlier date) and except for changes in factual circumstances not prohibited hereunder and
(c) in the case of the borrowing of Revolving Loans, the Administrative Agent shall have received a
timely Notice of Revolving Borrowing, in the case of the borrowing of Term Loans, the Administrative
Agent shall have received the Notice of Term Borrowing, in the case of the borrowing of a Swingline
- 63 -
Loan, the applicable Swingline Lender shall have received a timely Notice of Swingline Borrowing and in
the case of the issuance of a Letter of Credit, the applicable Issuing Bank and the Administrative Agent
shall have received a timely request for the issuance of such Letter of Credit. Each Credit Event shall
constitute a certification by the Borrower to the effect set forth in the preceding sentence (both as of the
date of the giving of notice relating to such Credit Event and, unless the Borrower otherwise notifies the
Administrative Agent prior to the date of such Credit Event, as of the date of the occurrence of such
Credit Event). In addition, the Borrower shall be deemed to have represented to the Administrative Agent
and the Lenders at the time any Loan is made or any Letter of Credit is issued that all conditions to the
making of such Loan or issuing of such Letter of Credit contained in this Article V., and not waived by
the Lenders in accordance with the terms of this Agreement, have been satisfied. Unless set forth in
writing to the contrary, the making of its initial Loan by a Lender shall constitute a certification by such
Lender to the Administrative Agent and the other Lenders that the conditions precedent for initial Loans
set forth in Sections 5.1. and 5.2. that have not previously been waived by the Lenders in accordance with
the terms of this Agreement have been satisfied.
ARTICLE VI. REPRESENTATIONS AND WARRANTIES
Section 6.1. Representations and Warranties.
In order to induce the Administrative Agent and each Lender to enter into this Agreement and to
make Loans and, in the case of an Issuing Bank, to issue Letters of Credit, each of the Parent and the
Borrower represents and warrants to the Administrative Agent, each Issuing Bank and each Lender as
follows:
(a) Organization; Power; Qualification. Each of the Parent, the Borrower and the other Loan
Parties is a corporation, partnership or other legal entity, duly organized or formed, validly existing and in
good standing under the jurisdiction of its incorporation or formation, has the power and authority to own
or lease its respective properties and to carry on its respective business as now being and hereafter
proposed to be conducted and is duly qualified and is in good standing as a foreign corporation,
partnership or other legal entity, and authorized to do business, in each jurisdiction in which the character
of its properties or the nature of its business requires such qualification or authorization unless the failure
to be so qualified or authorized could not reasonably be expected to have, in each instance, a Material
Adverse Effect.
(b) Ownership Structure. Part I of Schedule 6.1.(b) is, as of September 30, 2017, a complete
and correct list of (i) each Person holding any Equity Interest in the Borrower, (ii) the percentage of
ownership of such Person in the Borrower and (iii) the jurisdiction of organization of each Loan Party.
Except as disclosed on such Schedule, there are no outstanding subscriptions, options, warrants,
commitments, preemptive rights or agreements of any kind (including, without limitation, any
stockholders’ or voting trust agreements) for the issuance, sale, registration or voting of, or outstanding
securities convertible into, any additional shares of capital stock of any class, or partnership or other
ownership interests of any type in the Borrower. To Borrower’s and the Parent’s knowledge, all of the
Equity Interests in Borrower have been issued in compliance with all Applicable Law. As of the
Agreement Date, Part II of Schedule 6.1.(b) correctly sets forth all Unconsolidated Affiliates of the
Parent, including the correct legal name of such Person, the type of legal entity which each such Person
is, and all Equity Interests (and the Ownership Share) in such Person held directly or indirectly by the
Parent.
(c) Authorization of Loan Documents and Borrowings. The Borrower has the right and
power, and has taken all necessary action to authorize it, to borrow and obtain the other extensions of
credit hereunder. The Parent, the Borrower and each other Loan Party has the right and power, and has
- 64 -
taken all necessary action to authorize it, to execute, deliver and perform each of the Loan Documents and
the Fee Letter to which it is a party in accordance with their respective terms and to consummate the
transactions contemplated hereby and thereby. The Loan Documents and the Fee Letter to which the
Parent, the Borrower or any other Loan Party is a party have been duly executed and delivered by the duly
authorized officers of such Person and each is a legal, valid and binding obligation of such Person
enforceable against such Person in accordance with its respective terms, except as the same may be
limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and
the availability of equitable remedies for the enforcement of certain obligations contained herein or
therein and as may be limited by equitable principles generally.
(d) Compliance of Loan Documents with Laws. The execution, delivery and performance of
this Agreement and the other Loan Documents to which any Loan Party is a party and of the Fee Letter in
accordance with their respective terms and the borrowings and other extensions of credit hereunder do not
and will not, by the passage of time, the giving of notice, or both: (i) require any Governmental Approval
or violate any Applicable Law (including all Environmental Laws) relating to the Parent, the Borrower or
any other Loan Party; (ii) conflict with, result in a breach of or constitute a default under the
organizational documents of the Parent, the Borrower or any other Loan Party, or any material indenture,
material agreement or other material instrument to which the Parent, the Borrower or any other Loan
Party is a party or by which it or any of its respective properties may be bound; or (iii) result in or require
the creation or imposition of any Lien upon or with respect to any property now owned or hereafter
acquired by any Loan Party other than in favor of the Administrative Agent for its benefit and the benefit
of the Lender Parties.
(e) Compliance with Applicable Law; Governmental Approvals. Each of the Parent, the
Borrower, each other Loan Party and each other Subsidiary is in compliance with each Governmental
Approval and all other Applicable Laws relating to it except for noncompliances which, and
Governmental Approvals the failure to possess which, could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.
(f) Title to Properties. Each of the Parent, the Borrower, each other Loan Party and each
other Subsidiary has good, marketable and legal title to, or a valid leasehold interest in, its respective
material assets to the extent necessary to conduct their respective businesses.
(g) Certain Indebtedness. As of the Agreement Date, no default or event of default has
occurred with respect to the payment of interest or principal on any Indebtedness of the Parent, the
Borrower, any other Loan Party or any other Subsidiary having an aggregate outstanding principal
amount of $5,000,000 or more and, to the knowledge of any Responsible Officer of the Parent or the
Borrower, none of the Parent, the Borrower, the other Loan Parties or the other Subsidiaries has received
any notice of default or event of default, or event or condition which with the giving of notice, the lapse
of time, or both, would constitute a default or event of default, with respect to any such Indebtedness.
Schedule 6.1.(g) is, as of Agreement Date, a true, correct and complete listing of each Derivatives
Contract in existence on such date that has been entered into to hedge against fluctuations in interest rates
assessed pursuant to the Obligations evidenced by this Agreement.
(h) Litigation. Except as set forth on Schedule 6.1.(h), there are no actions, suits or
proceedings pending (nor, to the knowledge of the Parent or the Borrower, are there any actions, suits or
proceedings threatened) against or in any other way relating adversely to or affecting the Parent, the
Borrower, any other Loan Party or any other Subsidiary or any of their respective property in any court or
before any arbitrator of any kind or before or by any other Governmental Authority which, (i) could
reasonably be expected to have a Material Adverse Effect or (ii) in any manner draws into question the
validity or enforceability of any Loan Document or the Fee Letter. There are no strikes, slow downs,
- 65 -
work stoppages or walkouts or other labor disputes in progress or threatened relating to, any Loan Party
or any other Subsidiary which could reasonably be expected to have a Material Adverse Effect.
(i) Taxes. All material federal, state and other tax returns of the Parent, the Borrower, any
other Loan Party or any other Subsidiary required by Applicable Law to be filed have been duly filed, and
all material federal, state and other taxes, assessments and other governmental charges or levies upon the
Parent, the Borrower, each other Loan Party and each other Subsidiary and their respective properties,
income, profits and assets which are due and payable have been paid, except any such nonpayment or
non-filing which is at the time permitted under Section 7.6. As of the Agreement Date, none of the
United States income tax returns of the Parent, the Borrower, any other Loan Party or any other
Subsidiary is under audit. All charges, accruals and reserves on the books of the Parent, the Borrower,
each other Loan Party and each other Subsidiary in respect of any taxes or other governmental charges are
in accordance with GAAP in all material respects.
(j) Financial Statements. The Parent has furnished to each Lender copies of (i) the audited
consolidated balance sheet of the Parent and its consolidated Subsidiaries for the fiscal year ended
December 31, 2016, and the related audited consolidated statements of operations, shareholders’ equity
and cash flow for the fiscal year ended on such date, with the opinion thereon of Ernst & Young LLP, and
(ii) the unaudited consolidated balance sheet of the Parent and its consolidated Subsidiaries for the fiscal
quarter ended June 30, 2017, and the related unaudited consolidated statements of operations,
shareholders’ equity and cash flow of the Parent and its consolidated Subsidiaries for the fiscal quarter
ended on such date. Such financial statements (including in each case related schedules and notes) are
complete and correct in all material respects and present fairly, in all material respects in accordance with
GAAP consistently applied throughout the periods involved, the consolidated financial position of the
Parent and its consolidated Subsidiaries as at their respective dates and the results of operations and the
cash flow for such periods (subject, as to interim statements, to changes resulting from normal year-end
audit adjustments and absence of footnotes).
(k) No Material Adverse Change; Solvency. Since June 30, 2017, there has been no event,
change, circumstance or occurrence that could reasonably be expected to have a Material Adverse Effect.
Each of the Loan Parties is Solvent and the Parent, the Borrower and their respective Subsidiaries, taken
as a whole, are Solvent.
(l) ERISA.
(i) Except as could not individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, each Benefit Arrangement is in compliance with the applicable
provisions of ERISA, the Internal Revenue Code and other Applicable Laws. Except with respect
to Multiemployer Plans, each Qualified Plan (A) has received a favorable determination from the
Internal Revenue Service applicable to such Qualified Plan’s current remedial amendment cycle
(as defined in Revenue Procedure 2007-44 or “2007-44” for short), (B) has timely filed for a
favorable determination letter from the Internal Revenue Service during its staggered remedial
amendment cycle (as defined in 2007-44) and such application is currently being processed by the
Internal Revenue Service, (C) had filed for a determination letter prior to its “GUST remedial
amendment period” (as defined in 2007-44) and received such determination letter and the
staggered remedial amendment cycle first following the GUST remedial amendment period for
such Qualified Plan has not yet expired, or (D) is maintained under a prototype plan and may rely
upon a favorable opinion letter issued by the Internal Revenue Service with respect to such
prototype plan. To the knowledge of the Parent and the Borrower, nothing has occurred which
could reasonably be expected to result in the revocation of a Qualified Plan’s favorable
determination letter or opinion letter.
- 66 -
(ii) None of the Parent, the Borrower or any of their respective Subsidiaries has any
liability, contingent or otherwise, to a Benefit Arrangement that is a retiree welfare benefit
arrangement.
(iii) Except as could not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect: (i) no ERISA Event has occurred or is expected to occur;
(ii) there are no pending, or to the knowledge of the Parent and the Borrower, threatened, claims,
actions or lawsuits or other action by any Governmental Authority, plan participant or beneficiary
with respect to a Benefit Arrangement; (iii) there are no violations of the fiduciary responsibility
rules with respect to any Benefit Arrangement; and (iv) no member of the ERISA Group has
engaged in a non-exempt “prohibited transaction,” as defined in Section 406 of ERISA and
Section 4975 of the Internal Revenue Code, in connection with any Plan, that would subject any
member of the ERISA Group to a tax on prohibited transactions imposed by Section 502(i) of
ERISA or Section 4975 of the Internal Revenue Code.
(m) Absence of Default. None of the Parent, the Borrower, any other Loan Party or any other
Subsidiary is in default under its certificate or articles of incorporation or formation, bylaws, partnership
agreement or other similar organizational documents, and no event has occurred, which has not been
remedied, cured or waived: (i) which constitutes a Default or an Event of Default; or (ii) which
constitutes, or which with the passage of time, the giving of notice, or both, would constitute, a default or
event of default by, the Parent, the Borrower, any other Loan Party or any other Subsidiary under any
agreement (other than this Agreement) or judgment, decree or order to which any such Person is a party
or by which any such Person or any of its respective properties may be bound where such default or event
of default could, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.
(n) Environmental Laws. In the ordinary course of business, each of the Parent, the
Borrower, each other Loan Party and each other Subsidiary causes reviews to be conducted of its
respective operations or properties, to the extent applicable, for compliance with Environmental Laws.
Each of the Parent, the Borrower, each other Loan Party and each other Subsidiary: (i) is in compliance
with all Environmental Laws applicable to its business, operations and the Properties, (ii) has obtained all
Governmental Approvals which are required under Environmental Laws, and each such Governmental
Approval is in full force and effect, and (iii) is in compliance with all terms and conditions of such
Governmental Approvals, where with respect to each of the immediately preceding clauses (i) through
(iii) the failure to obtain or to comply could reasonably be expected to have a Material Adverse Effect.
Except for any of the following matters that could not reasonably be expected to have a Material Adverse
Effect, none of the Parent, the Borrower, any other Loan Party or any other Subsidiary has any knowledge
of, nor has the Parent, the Borrower, any other Loan Party or any other Subsidiary received written notice
of, any past, present, or pending releases, events, conditions, circumstances, activities, practices,
incidents, facts, occurrences, actions, or plans that, with respect to the Parent, the Borrower, such other
Loan Party or such other Subsidiary, their respective businesses, operations or with respect to the
Properties, may: (x) cause or contribute to an actual or alleged violation of or noncompliance with
Environmental Laws, (y) cause or contribute to any other potential claim or other liability under any
Environmental Law, or (z) cause any of the Properties to become subject to any restrictions on ownership,
occupancy, use or transferability under any Environmental Law or require the filing or recording of any
notice, approval or disclosure document under any Environmental Law. There is no civil, criminal, or
administrative action, suit, demand, claim, hearing, notice, or demand letter, mandate, order, lien, request,
investigation, or proceeding pending or, to the Parent’s knowledge after due inquiry, threatened, against
the Parent, the Borrower, any other Loan Party or any other Subsidiary relating in any way to
Environmental Laws which, reasonably could be expected to have a Material Adverse Effect. None of
- 67 -
the Properties is listed on or proposed for listing on the National Priority List promulgated pursuant to the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 and its implementing
regulations, or any comparable state or local priority list promulgated pursuant to any analogous state or
local law. To Parent’s knowledge, no Hazardous Materials generated at or transported from the
Properties are or have been transported to, or disposed of at, any location that is listed or proposed for
listing on the National Priority List or any comparable state or local priority list, or any other location that
is or has been the subject of a clean-up, removal or remedial action pursuant to any Environmental Law,
except to the extent that such transportation or disposal could not reasonably be expected to result in a
Material Adverse Effect.
(o) Investment Company. None of the Parent, the Borrower, any other Loan Party or any
other Subsidiary is (i) an “investment company” or a company “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, or (ii) subject to any other
Applicable Law which purports to restrict its ability to borrow money or obtain other extensions of credit
or to consummate the transactions contemplated by this Agreement or to perform its obligations under
any Loan Document to which it is a party.
(p) Margin Stock. None of the Parent, the Borrower, any other Loan Party or any other
Subsidiary is engaged principally, or as one of its important activities, in the business of extending credit
for the purpose, whether immediate, incidental or ultimate, of buying or carrying “margin stock” within
the meaning of Regulation U of the Board of Governors of the Federal Reserve System.
(q) Intellectual Property. Each of the Loan Parties and each other Subsidiary owns or has the
right to use, under valid license agreements or otherwise, all patents, licenses, franchises, trademarks,
trademark rights, service marks, service xxxx rights, trade names, trade name rights, trade secrets and
copyrights (collectively, “Intellectual Property”) necessary to the conduct of its businesses, without
known conflict with any patent, license, franchise, trademark, trademark right, service xxxx, service xxxx
right, trade secret, trade name, copyright, or other proprietary right of any other Person except for such
Intellectual Property, the absence of which, and for conflicts which, could not reasonably be expected to
have a Material Adverse Effect. Each of the Loan Parties and each other Subsidiary has taken all such
steps as it deems reasonably necessary to protect its respective rights under and with respect to such
Intellectual Property. No material claim has been asserted by any Person with respect to the use of any
such Intellectual Property by the Parent, the Borrower, any other Loan Party or any other Subsidiary, or
challenging or questioning the validity or effectiveness of any such Intellectual Property. The use of such
Intellectual Property by the Parent, the Borrower, the other Loan Parties and the other Subsidiaries does
not infringe on the rights of any Person, subject to such claims and infringements as do not, in the
aggregate, give rise to any liabilities on the part of the Parent, the Borrower, any other Loan Party or any
other Subsidiary that could reasonably be expected to have a Material Adverse Effect.
(r) Business. As of the Agreement Date, the Parent, the Borrower, the other Loan Parties
and the other Subsidiaries are engaged in (i) the business of owing, operating, managing and developing
Designated Use Properties and the provision of services incidental thereto, (ii) the brokerage, purchase
and sale of manufactured home units, (iii) making Investments permitted under Section 9.1.(g) and
(iv) other business activities reasonably incidental to the foregoing.
(s) Broker’s Fees. No broker’s or finder’s fee, commission or similar compensation will be
payable with respect to the transactions contemplated hereby. No other similar fees or commissions will
be payable by any Loan Party for any other services rendered to the Parent, the Borrower, any other Loan
Party or any other Subsidiary to the transactions contemplated hereby.
- 68 -
(t) Accuracy and Completeness of Information. All written information, reports and other
papers and data (other than (i) financial projections, budgets, forecasts, pro forma financial statements and
other forward looking statements and (ii) general industry information) furnished to the Administrative
Agent or any Lender by, on behalf of, or at the direction of, the Parent, the Borrower, any other Loan
Party or any other Subsidiary were, at the time the same were so furnished and taken as a whole with all
other written information, reports and other papers and data furnished substantially contemporaneously
therewith, complete and correct in all material respects, to the extent necessary to give the recipient a true
and accurate knowledge of the subject matter, or, in the case of financial statements (other than
(x) financial projections, budgets, forecasts, pro forma financial statements and other forward looking
statements and (y) the financial statements covered in Section 6.1.(j)), are complete and correct in all
material respects and present fairly, in all material respects in accordance with GAAP consistently applied
throughout the periods involved, the consolidated financial position of the Persons involved as at their
respective dates and the results of operations for such periods (subject, as to interim statements, to
changes resulting from normal year-end audit adjustments and absence of full footnote disclosure). All
financial projections, budgets, forecasts, pro forma financial statements and other forward looking
statements prepared by or on behalf of the Parent, the Borrower, any other Loan Party or any other
Subsidiary that have been or may hereafter be made available to the Administrative Agent or any Lender
were or will be prepared in good faith based on assumptions believed to be reasonable at the time of
preparation thereof. No fact is known to any Loan Party which has had, or may in the future have (so far
as any Loan Party can reasonably foresee), a Material Adverse Effect which has not been set forth in the
financial statements referred to in Section 6.1.(j) or in such information, reports or other papers or data or
otherwise disclosed in writing to the Administrative Agent and the Lenders. No document furnished or
written statement made to the Administrative Agent or any Lender in connection with the negotiation,
preparation or execution of, or pursuant to, this Agreement or any of the other Loan Documents (other
than (i) financial projections, budgets, forecasts, pro forma financial statements and other forward looking
statements and (ii) general industry information) contains or will contain any untrue statement of a
material fact, or omits or will omit to state a material fact necessary in order to make the statements
contained therein not misleading.
(u) Not Plan Assets; No Prohibited Transactions. None of the assets of the Parent, the
Borrower, any other Loan Party or any other Subsidiary constitutes “plan assets” as defined by 29 C.F.R.
2510.3-101 (as modified by §3(42) of ERISA). Assuming that no Lender funds any amount payable by it
hereunder with “plan assets,” as that term is defined in 29 C.F.R. 2510.3-101 (as modified by §3(42) of
ERISA), the execution, delivery and performance of this Agreement and the other Loan Documents, and
the extensions of credit and repayment of amounts hereunder, do not and will not constitute non-exempt
“prohibited transactions” under §406 of XXXXX xx §0000 of the Internal Revenue Code.
(v) Anti-Corruption Laws and Sanctions. None of the Borrower, any Subsidiary, any of their
respective directors, officers, or, to the knowledge of the Borrower or such Subsidiary, employees or
Affiliates of the Borrower or such Subsidiary, (i) is a Sanctioned Person or currently the subject or target
of any Sanctions, (ii) has its assets located in a Sanctioned Country, (ii) directly or indirectly derives
revenues from investments in, or transactions with, Sanctioned Persons or (iv) has violated any Anti-
Money Laundering Law in any material respect. Each of the Borrower and its Subsidiaries, and to the
knowledge of Borrower, each director, officer, employee and Affiliate of Borrower and each such
Subsidiary, is in compliance with the Anti-Corruption Laws in all material respects. The Borrower has
implemented and maintains in effect policies and procedures that are appropriate given the nature of
Borrower’s business and designed to ensure compliance with the Anti-Corruption Laws and applicable
Sanctions by the Borrower, its Subsidiaries, their respective directors, officers, employees and Affiliates
of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from this
Agreement.
- 69 -
(w) REIT Status. The Parent qualifies as, and has elected to be treated as, a REIT and is in
compliance with all requirements and conditions imposed under the Internal Revenue Code to allow the
Parent to maintain its status as a REIT.
(x) Qualifying Unencumbered Properties. Each Property included in a given calculation of
the Unencumbered Net Operating Income satisfied, at the time of such calculation, all of the requirements
contained in the definition of “Qualifying Unencumbered Property”.
(y) EEA Financial Institution. None of the Borrower, any other Loan Party or any other
Subsidiary is an EEA Financial Institution.
Section 6.2. Survival of Representations and Warranties, Etc.
All statements contained in any certificate, financial statement or other instrument delivered by or
on behalf of the Parent, the Borrower, any other Loan Party or any other Subsidiary to the Administrative
Agent or any Lender pursuant to or in connection with this Agreement or any of the other Loan
Documents (including, but not limited to, any such statement made in or in connection with any
amendment thereto or any statement contained in any certificate, financial statement or other instrument
delivered by or on behalf of the Parent, the Borrower, any other Loan Party or any other Subsidiary prior
to the Agreement Date and delivered to the Administrative Agent or any Lender in connection with the
underwriting or closing the transactions contemplated hereby but excluding financial projections, budgets,
forecasts, pro forma financial statements and other forward looking statements and general industry
information) shall constitute representations and warranties made by the Borrower under this Agreement.
All representations and warranties made under this Agreement and the other Loan Documents shall be
deemed to be made at and as of the Agreement Date, the Effective Date, the date on which any extension
of the Revolving Termination Date is effectuated pursuant to Section 2.13., the date on which any
increase of the Revolving Commitments is effectuated or Additional Term Loans are made pursuant to
Section 2.16. and as of the date of the occurrence of each Credit Event, except to the extent that such
representations and warranties expressly relate solely to an earlier date (in which case such
representations and warranties shall have been true and correct in all material respects (except in the case
of a representation or warranty qualified by materiality, in which case such representation or warranty
shall be true and correct in all respects) on and as of such earlier date) and except for changes in factual
circumstances expressly and specifically permitted hereunder. All such representations and warranties
shall survive the effectiveness of this Agreement, the execution and delivery of the Loan Documents and
the making of the Loans and the issuance of the Letters of Credit.
ARTICLE VII. AFFIRMATIVE COVENANTS
For so long as this Agreement is in effect, the Parent and the Borrower shall comply with the
following covenants:
Section 7.1. Preservation of Existence and Similar Matters.
Except as otherwise permitted under Section 9.6., the Parent and the Borrower shall, and shall
cause each other Loan Party and each other Subsidiary to, preserve and maintain its respective existence,
rights, franchises, licenses and privileges in the jurisdiction of its incorporation or formation and qualify
and remain qualified and authorized to do business in each jurisdiction in which the character of its
properties or the nature of its business requires such qualification and authorization unless the failure to
be so authorized and qualified could not reasonably be expected to have a Material Adverse Effect.
- 70 -
Section 7.2. Compliance with Applicable Law.
The Parent and the Borrower shall, and shall cause each other Loan Party and each other
Subsidiary to, comply with all Applicable Laws, including the obtaining of all Governmental Approvals,
Anti-Corruption Laws and Sanctions, the failure with which to comply could reasonably be expected to
have a Material Adverse Effect.
Section 7.3. Maintenance of Property.
In addition to the requirements of any of the other Loan Documents, the Parent and the Borrower
shall, and shall cause each other Loan Party and each other Subsidiary to, (a) protect and preserve, and
maintain in good repair, working order and condition, all of its respective material properties, ordinary
wear and tear and casualty and condemnation excepted, and (b) from time to time make or cause to be
made all needed and appropriate repairs, renewals, replacements and additions to such properties, so that
the business carried on in connection therewith may be properly and advantageously conducted at all
times.
Section 7.4. Conduct of Business.
Except as otherwise permitted under Section 9.6., the Parent and the Borrower shall, and shall
cause each other Loan Party and each other Subsidiary to, carry on its respective businesses as described
in Section 6.1.(r) and not enter into any line of business not otherwise described in such Section.
Section 7.5. Insurance.
In addition to the requirements of any of the other Loan Documents, the Parent and the Borrower
shall, and shall cause each other Loan Party and each other Subsidiary to, maintain insurance with
financially sound and reputable insurance companies against such risks and in such amounts as is
customarily maintained by Persons engaged in similar businesses or as may be required by Applicable
Law. The Borrower shall from time to time deliver to the Administrative Agent upon reasonable request
a detailed list, together with reasonable evidence of the insurance then in effect, stating the names of the
insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the
properties and risks covered thereby.
Section 7.6. Payment of Taxes.
The Parent and the Borrower shall, and shall cause each other Loan Party and each other
Subsidiary to, pay and discharge when due all material taxes, assessments and governmental charges or
levies imposed upon it or upon its income or profits or upon any properties belonging to it which, if
unpaid, might become a Lien on any properties of such Person; provided, however, that this Section shall
not require the payment or discharge of any such tax, assessment, charge or levy which is being contested
in good faith by appropriate proceedings which operate to suspend the collection thereof and for which
adequate reserves have been established on the books of such Person, in accordance with GAAP.
Section 7.7. Books and Records; Inspections.
The Parent and the Borrower shall, and shall cause each other Loan Party and each other
Subsidiary to, keep proper books of record and account in which full, true and correct entries in all
material respects in conformity with GAAP consistently applied shall be made. The Parent and the
Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, permit
representatives of the Administrative Agent or any Lender to visit and inspect any of their respective
- 71 -
properties, to examine and make abstracts from any of their respective books and records and to discuss
their respective affairs, finances and accounts with their respective officers, employees and independent
public accountants (in the presence of an officer of the Borrower), all at such reasonable times during
business hours and as often as may reasonably be requested and so long as no Event of Default exists,
with reasonable prior notice. The Borrower shall be obligated to reimburse the Administrative Agent and
the Lenders for their costs and expenses incurred in connection with the exercise of their rights under this
Section only if such exercise occurs while a Default or Event of Default exists. The Borrower hereby
authorizes and instructs its accountants to discuss the financial affairs of the Borrower, any other Loan
Party or any other Subsidiary with the Administrative Agent or any Lender; provided that an officer of the
Borrower shall be given a reasonable opportunity to be present for any discussions with any such
accountants.
Section 7.8. Use of Proceeds.
The Borrower will use the proceeds of Loans only (a) to finance acquisitions permitted under this
Agreement; (b) to finance capital expenditures and (c) to provide for the general working capital needs of
the Borrower and its Subsidiaries and for other general corporate purposes of the Borrower and its
Subsidiaries. The Borrower shall only use Letters of Credit for the same purposes for which it may use
the proceeds of Loans. The Parent and the Borrower shall not, and shall not permit any other Loan Party
or any other Subsidiary to, use any part of such proceeds to purchase or carry, or to reduce or retire or
refinance any credit incurred to purchase or carry, any margin stock (within the meaning of Regulation U
of the Board of Governors of the Federal Reserve System) or to extend credit to others for the purpose of
purchasing or carrying any such margin stock. The Borrower shall not request any borrowing of any
Loans or the issuance of any Letter of Credit, and the Borrower shall ensure that the Parent, the Borrower,
their respective Subsidiaries and their respective directors, officers and employees shall not use the
proceeds of any Loan or Letter of Credit (x) in furtherance of an offer, payment, promise to pay, or
authorization of the payment or giving of money, or anything else of value, to any Person in violation of
any Anti-Corruption Laws, or (y) in any manner that would result in the violation of any Sanctions.
Section 7.9. Environmental Matters.
The Parent and the Borrower shall, and shall cause each other Loan Party and each other
Subsidiary to, comply with all Environmental Laws the failure with which to comply could reasonably be
expected to have a Material Adverse Effect. The Parent and the Borrower shall comply, and shall cause
each other Loan Party and each other Subsidiary to comply, and the Parent and the Borrower shall use,
and shall cause each other Loan Party and each other Subsidiary to use, commercially reasonable efforts
to cause all other Persons occupying, using or present on the Properties to comply, with all Environmental
Laws the failure with which to comply could reasonably be expected to have a Material Adverse Effect.
The Parent and the Borrower shall, and shall cause each other Loan Party and each other Subsidiary to,
promptly take all actions and pay or arrange to pay all costs necessary for it and for the Properties to
comply with all Environmental Laws and all Governmental Approvals, including actions to remove and
dispose of all Hazardous Materials and to clean up the Properties as required under Environmental Laws,
in each case, the failure with which to comply could reasonably be expected to have a Material Adverse
Effect. Nothing in this Section shall impose any obligation or liability whatsoever on the Administrative
Agent or any Lender.
Section 7.10. Further Assurances.
At the Borrower’s cost and expense and upon request of the Administrative Agent, the Parent and
the Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, duly execute and
deliver or cause to be duly executed and delivered, to the Administrative Agent such further instruments,
- 72 -
documents and certificates, and do and cause to be done such further acts that may be reasonably
necessary or advisable in the reasonable opinion of the Administrative Agent to carry out more effectively
the provisions and purposes of this Agreement and the other Loan Documents.
Section 7.11. REIT Status.
The Parent shall maintain its status as, and election to be treated as, a REIT.
Section 7.12. Exchange Listing.
The Parent shall maintain at least one class of common shares of the Parent having trading
privileges on the New York Stock Exchange or other nationally recognized securities exchange.
ARTICLE VIII. INFORMATION
For so long as this Agreement is in effect, the Borrower shall furnish (including by electronic
means as provided in Section 8.5.) to each Lender (or to the Administrative Agent if so provided below):
Section 8.1. Quarterly Financial Statements.
As soon as available and in any event within 5 days after the same is required to be filed with the
SEC (but in no event later than 50 days after the end of each of the first, second and third fiscal quarters
of the Parent commencing with the fiscal quarter ending September 30, 2017), the unaudited consolidated
balance sheet of the Parent and its Subsidiaries as at the end of such period and the related unaudited
consolidated statements of operations, stockholders’ equity and cash flows of the Parent and its
Subsidiaries for such period, setting forth in each case in comparative form the figures as of the end of
and for the corresponding periods of the previous fiscal year (if any), all of which shall be certified by the
chief executive officer, chief financial officer or vice president-treasurer of the Parent, in his or her
opinion, to present fairly, in accordance with GAAP in all material respects and consistently applied, the
consolidated financial position of the Parent and its Subsidiaries as at the date thereof and the results of
operations for such period (subject, in each case, to normal year-end audit adjustments and the absence of
full footnote disclosure).
Section 8.2. Year-End Statements.
As soon as available and in any event within 5 days after the same is required to be filed with the
SEC (but in no event later than 120 days after the end of each fiscal year of the Parent), the audited
consolidated balance sheet of the Parent and its Subsidiaries as at the end of such fiscal year and the
related audited consolidated statements of operations, stockholders’ equity and cash flows of the Parent
and its Subsidiaries for such fiscal year, setting forth in comparative form the figures as at the end of and
for the previous fiscal year (if any), all of which shall be (a) certified by the chief executive officer, chief
financial officer or vice president-treasurer of the Parent, in his or her opinion, to present fairly, in all
material respects and in accordance with GAAP consistently applied, the financial position of the Parent
and its Subsidiaries as at the date thereof and the result of operations for such period and (b) accompanied
by the report thereon of Ernst & Young LLP or other independent certified public accountants of
recognized national standing acceptable to the Administrative Agent, whose report shall be unqualified as
to “going concern” (and other like qualifications or exceptions) and to scope.
- 73 -
Section 8.3. Compliance Certificate.
Not later than 50 days after the end of the first, second and third fiscal quarters of the Parent and
120 days after the end of the fiscal year of the Parent, a certificate substantially in the form of Exhibit K
(a “Compliance Certificate”) executed on behalf of the Parent by the chief executive officer, chief
financial officer or vice president-treasurer of the Parent (a) setting forth in reasonable detail as of the end
of such quarterly accounting period or fiscal year, as the case may be, the calculations required to
establish whether the Parent was in compliance with the covenants contained in Section 9.1. and
(b) stating that no Default or Event of Default exists, or, if such is not the case, specifying such Default or
Event of Default and its nature, when it occurred and the steps being taken by the Parent with respect to
such event, condition or failure.
Section 8.4. Other Information.
(a) Promptly upon the Administrative Agent’s request, copies of all reports, if any, submitted
to the Parent or its Board of Directors by its independent public accountants including, without limitation,
any management report;
(b) Within 5 Business Days of the filing thereof, copies of all registration statements
(excluding the exhibits thereto (unless requested by the Administrative Agent) and any registration
statements on Form S-8 or its equivalent), reports on Forms 10-K, 10-Q and 8-K (or their equivalents)
and all other periodic reports which the Parent, the Borrower, any other Loan Party or any other
Subsidiary shall file with the SEC or any national securities exchange;
(c) Promptly upon the mailing thereof to the shareholders of the Parent generally, copies of
all financial statements, reports and proxy statements so mailed and promptly upon the issuance thereof
copies of all press releases issued by the Parent, the Borrower any other Loan Party or any other
Subsidiary;
(d) At the time financial statements are furnished pursuant to Sections 8.1. and 8.2., (i) a
statement of Funds from Operations certified by the chief executive officer, chief financial officer or vice
president-treasurer of the Parent in form and substance reasonably satisfactory to the Administrative
Agent; and (ii) a report of newly acquired Properties, in form and detail reasonably satisfactory to the
Administrative Agent, which shall include, without limitation, the Net Operating Income of such
Property, the cost of acquisition of such Property and the amount, if any, of Indebtedness secured by a
Lien on such Property;
(e) No later than 30 days after the beginning of each fiscal year of the Parent ending prior to
the latest Termination Date, projected balance sheets, operating statements, profit and loss projections and
cash flow budgets of the Parent and its Subsidiaries on a consolidated basis for such fiscal year, all
itemized in reasonable detail;
(f) If any ERISA Event shall occur that individually, or together with any other ERISA
Event that has occurred and is continuing, could reasonably be expected to have a Material Adverse
Effect, a certificate of the chief executive officer, chief financial officer or vice president-treasurer of the
Parent setting forth details as to such occurrence and the action, if any, which the Parent or applicable
member of the ERISA Group is required or proposes to take;
(g) To the extent the Parent, the Borrower, any other Loan Party or any other Subsidiary is
aware of the same, prompt notice of the commencement of any proceeding or investigation by or before
any Governmental Authority and any action or proceeding in any court or other tribunal or before any
- 74 -
arbitrator against or in any other way relating to, or affecting, the Parent, the Borrower, any other Loan
Party or any other Subsidiary or any of their respective properties, assets or businesses which could
reasonably be expected to have a Material Adverse Effect;
(h) Prompt notice of the occurrence of any event which has had, or could reasonably be
expected to have, a Material Adverse Effect;
(i) Prompt notice of the occurrence of any Default or Event of Default;
(j) Promptly upon the request of the Administrative Agent, evidence of the Parent’s
calculation of the Ownership Share with respect to a Subsidiary (other than a Wholly Owned Subsidiary)
or an Unconsolidated Affiliate, such evidence to be in form and detail reasonably satisfactory to the
Administrative Agent;
(k) Promptly, upon each request, information identifying the Borrower as a Lender may
request in order to comply with applicable “know your customer” and anti-money laundering rules and
regulations, including without limitation, the Patriot Act;
(l) Promptly, and in any event within 3 Business Days after the Parent or the Borrower
obtains knowledge thereof, written notice of the occurrence of any of the following: (i) the Parent, the
Borrower, any other Loan Party or any other Subsidiary shall receive notice that any violation of or
noncompliance with any Environmental Law has or may have been committed; (ii) the Parent, the
Borrower, any other Loan Party or any other Subsidiary shall receive notice that any administrative or
judicial complaint, order or petition has been filed or other proceeding has been initiated, or is about to be
filed or initiated against any such Person alleging any violation of or noncompliance with any
Environmental Law or requiring any such Person to take any action in connection with the release or
threatened release of Hazardous Materials; (iii) the Parent, the Borrower, any other Loan Party or any
other Subsidiary shall receive any notice from a Governmental Authority or private party alleging that
any such Person may be liable or responsible for any costs associated with a response to, or remediation
or cleanup of, a release or threatened release of Hazardous Materials or any damages caused thereby; or
(iv) the Parent, the Borrower, any other Loan Party or any other Subsidiary shall receive notice of any
other fact, circumstance or condition that could reasonably be expected to form the basis of an
environmental claim, and in the case of any of the foregoing, such matters, whether individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect;
(m) Prompt notice of any material change in accounting policies or financial reporting
practices by the Parent, the Borrower, any other Loan Party or any other Subsidiary; and
(n) From time to time and promptly upon each request, such data, certificates, reports,
statements, documents or further information regarding any Property or the business, assets, liabilities,
financial condition, results of operations or business prospects of the Parent, the Borrower, any other
Loan Party or any other Subsidiary as the Administrative Agent or any Lender may reasonably request.
Section 8.5. Electronic Delivery of Certain Information.
(a) Documents required to be delivered pursuant to the Loan Documents may be delivered
by electronic communication and delivery, including, the Internet, e-mail or intranet websites to which
the Administrative Agent and each Lender have access (including a commercial, third-party website or a
website sponsored or hosted by the Administrative Agent or the Parent (including, without limitation, on
the Parent’s website)) provided that the foregoing shall not apply to (i) notices to any Lender (or any
Issuing Bank) pursuant to Article II. and (ii) any Lender that has notified the Administrative Agent and
- 75 -
the Parent that it cannot or does not want to receive electronic communications. The Administrative
Agent, the Parent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic delivery pursuant to procedures approved by it for all or
particular notices or communications. Unless the Administrative Agent otherwise prescribes, (i) notices
and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of
an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement) and (ii) documents or notices posted to the
Internet or intranet website shall be deemed to have been delivered 24 hours after the date and time on
which the Administrative Agent, the Parent or the Borrower posts such documents or the documents
become available on a commercial website and the Administrative Agent, the Parent or the Borrower
notifies each Lender of said posting and provides a link thereto; provided that for both clauses (i) and (ii)
above, if such notice, email or other communication is not sent or posted during the normal business
hours of the recipient, said delivery or posting date and time shall be deemed to have occurred as of 11:00
a.m. Central time on the opening of business on the next business day for the recipient. Notwithstanding
anything contained herein, the Parent shall deliver paper copies of any documents to the Administrative
Agent or to any Lender that requests such paper copies until a written request to cease delivering paper
copies is given by the Administrative Agent or such Lender. The Administrative Agent shall have no
obligation to request the delivery of or to maintain paper copies of the documents delivered electronically,
and in any event shall have no responsibility to monitor compliance by the Parent or the Borrower with
any such request for delivery. Each Lender shall be solely responsible for requesting delivery to it of
paper copies and maintaining its paper or electronic documents.
(b) Documents required to be delivered pursuant to Article II. may be delivered
electronically to a website provided for such purpose by the Administrative Agent pursuant to the
procedures provided to the Parent or the Borrower by the Administrative Agent.
Section 8.6. Public/Private Information.
The Parent and the Borrower shall cooperate with the Administrative Agent in connection with
the publication of certain materials and/or information provided by or on behalf of the Parent or the
Borrower. Documents required to be delivered pursuant to the Loan Documents shall be delivered by or
on behalf of the Parent or the Borrower to the Administrative Agent and the Lenders (collectively,
“Information Materials”) pursuant to this Article and the Parent or the Borrower shall designate
Information Materials that are either available to the public or not material with respect to Parent, the
Borrower and the other Subsidiaries or any of their respective securities for purposes of United States
federal and state securities laws, as “Public Information”. All such Information Materials not so
designated as “Public Information” shall be deemed to be “Private Information”.
Section 8.7. USA Patriot Act Notice; Compliance.
The Patriot Act and federal regulations issued with respect thereto require all financial institutions
to obtain, verify and record certain information that identifies individuals or business entities which open
an “account” with such financial institution. Consequently, a Lender (for itself and/or as agent for all
Lenders hereunder) may from time-to-time request, and the Parent and the Borrower shall, and shall cause
the other Loan Parties to, provide promptly upon any such request to such Lender, such Loan Party’s
name, address, tax identification number and/or such other identification information as shall be
necessary for such Lender to comply with federal law. An “account” for this purpose may include,
without limitation, a deposit account, cash management service, a transaction or asset account, a credit
account, a loan or other extension of credit, and/or other financial services product.
- 76 -
Section 8.8. Qualifying Unencumbered Properties.
The Borrower may from time to time but no more frequently than quarterly deliver notice to the
Administrative Agent stating that the Borrower intends to designate a Property to become a Qualifying
Unencumbered Property. Such notice shall (a) set forth the name of such Property (or, if such Property
has no name, such notice shall otherwise identify such Property), and (b) be accompanied by a statement
of income, certified by the chief executive officer, chief financial officer or vice president-treasurer of the
Parent, for each such Property for the then most recently completed fiscal quarter (or, if such statement of
income is unavailable, a pro forma financial statement setting forth the Net Operating Income with
respect to such Property for the then current fiscal quarter). If any such Property meets the requirements
set forth in the definition of “Qualifying Unencumbered Properties” and the Administrative Agent fails to
deliver written notice to the Borrower stating that the Requisite Lenders have disapproved the designation
of such Property as a Qualifying Unencumbered Property (it being understood that such notice shall
provide the Borrower with information regarding why such designation was disapproved by the Requisite
Lenders and that the Requisite Lenders will not unreasonably disapprove such designation) within 20
days after receipt of such information by the Administrative Agent, such Property shall become a
Qualifying Unencumbered Property.
ARTICLE IX. NEGATIVE COVENANTS
For so long as this Agreement is in effect, the Parent and the Borrower, as applicable, shall
comply with the following covenants:
Section 9.1. Financial Covenants.
(a) Maximum Leverage Ratio. The Parent shall not permit the ratio of (i) Total Indebtedness
to (ii) Total Asset Value, to exceed 0.60 to 1.00 at any time; provided, however, that if such ratio is
greater than 0.60 to 1.00 but is not greater than 0.65 to 1.00, then the Parent shall be deemed to be in
compliance with this Section 9.1(a) so long as (A) the Borrower completed a Material Acquisition which
resulted in such ratio (after giving effect to such Material Acquisition) exceeding 0.60 to 1.00 at any time
during the fiscal quarter in which such Material Acquisition took place and during the subsequent fiscal
quarter thereafter, (B) the Borrower has maintained compliance with this Section 9.1.(a) in reliance on
this proviso not more than two times during the term of this Agreement, and (C) such ratio (after giving
effect to such Material Acquisition) is not greater than 0.65 to 1.00 at any time.
(b) Maximum Fixed Charge Coverage Ratio. The Parent shall not permit the ratio of
(i) Adjusted EBITDA for any period of 12 consecutive calendar months ending during the term of this
Agreement to (ii) Fixed Charges of the Parent and its Subsidiaries determined on a consolidated basis for
such period, to be less than 1.40 to 1.00 at any time.
(c) Minimum Unencumbered Debt Yield. The Parent shall not permit the ratio (expressed as
a percentage) of (i) Unencumbered Net Operating Income for any period of 12 consecutive calendar
months ending during the term of this Agreement to (ii) Unsecured Debt to be less than 9.75% at any
time.
(d) Minimum Unencumbered Interest Coverage Ratio. The Parent shall not permit the ratio
of (i) Unencumbered Net Operating Income any fiscal quarter ending during the term of this Agreement
to (ii) Unsecured Interest Expense for such fiscal quarter, to be less than 2.00 to 1.00 at any time.
(e) [Reserved].
- 77 -
(f) Dividends and Other Restricted Payments. Subject to the following sentence, if an Event
of Default exists, the Parent and the Borrower shall not, and shall not permit any of the other Subsidiaries
to, declare or make any Restricted Payments, except that notwithstanding the existence of an Event of
Default, the Borrower may pay cash dividends to the Parent and other holders of partnership interests in the
Borrower with respect to any fiscal year ending during the term of this Agreement to the extent necessary for
the Parent to distribute, and the Parent may so distribute, cash dividends to its shareholders in an aggregate
amount not to exceed the amount required for the Parent to maintain its status as a real estate investment trust.
Subsidiaries (other than the Borrower) may make Restricted Payments to the Borrower and other Subsidiaries
at any time.
(g) [Reserved].
(h) Permitted Investments of Parent. The Parent shall not have or make any Investment in
any Person, or own any other assets, except Equity Interests in the Borrower and the Borrower’s
Subsidiaries and Unconsolidated Affiliates, any Guarantee of Recourse Indebtedness otherwise permitted
under this Agreement and any Guarantee of Non-Recourse Indebtedness solely for Non-Recourse
Exceptions.
For purposes of calculating compliance with the financial covenants set forth in this Section 9.1.
and the other covenants contained in this Article IX., each of the following transactions, in each case not
prohibited by the Loan Documents, that occurred during the period for which such financial covenant is
to be calculated, shall be calculated on a pro forma basis assuming that each such transaction had
occurred on the first day of such period (and taking into account (i) cost savings to the extent same would
be permitted to be reflected in pro forma financial information complying with the requirements of GAAP
and Article XI of Regulation S-X under the Securities Act and (ii) such other adjustments as may be
reasonably approved by the Administrative Agent in writing, such approval not to be unreasonably
withheld or delayed): (a) the purchase or other acquisition of (i) property and assets or businesses of any
Person or of assets constituting a business unit, a line of business or division of such Person, (ii) a
Property or (iii) Equity Interests in a Person that, upon the consummation thereof, will be a Subsidiary of
such Person (including as a result of a merger or consolidation); (b) the sale, transfer, license, lease or
other disposition (including any sale and leaseback transaction and any sale or issuance of Equity
Interests in a Subsidiary) of any property by any Person, including any sale, assignment, transfer or other
disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated
therewith; and (c) any incurrence (including by assumption or Guaranty) or repayment (including by
redemption, repayment, retirement or extinguishment) of any Indebtedness. All pro forma calculations
pursuant to this Section shall be made in good faith by the chief executive officer, chief financial officer
or vice president-treasurer of the Parent.
Section 9.2. Indebtedness.
The Parent and the Borrower shall not, and shall not permit any of their respective Subsidiaries
to, directly or indirectly create, incur, assume or otherwise become or remain directly or indirectly liable
with respect to, any Indebtedness, except:
(a) the Obligations;
(b) guaranties of the Obligations described in the immediately preceding subsection (a);
(c) in the case of the Borrower and its Subsidiaries, trade debt incurred in the normal course
of business;
- 78 -
(d) in the case of the Borrower and its Subsidiaries, intercompany Indebtedness (including,
without limitation, amounts owing under intercompany leases) owing between Subsidiaries; and
(e) Indebtedness which, after giving effect thereto, may be incurred or may remain
outstanding without giving rise to an Event of Default or Default, including without limitation any
Default or Event of Default resulting from noncompliance with any of the terms of Article IX.; provided,
however, that the Parent and the Borrower (i) shall not and shall not permit any of its Subsidiaries to,
guarantee or otherwise become or remain directly or indirectly liable with respect to the Indebtedness of
any Unconsolidated Affiliate, and (ii) shall not permit any Subsidiary (excluding the Borrower) to create,
incur, assume or otherwise become or remain directly or indirectly liable with respect to, any Recourse
Indebtedness (including without limitation Recourse Indebtedness attributable to Accommodation
Obligations or other Guaranties of Indebtedness), in an aggregate amount collectively for both clauses (i)
and (ii), in excess of (A) $10,000,000 for any such Subsidiary or Unconsolidated Affiliate at any time or
(B) $30,000,000 in the aggregate for all Subsidiaries and Unconsolidated Affiliates at any time.
Section 9.3. Liens.
The Parent and the Borrower shall not, and shall not permit any of their respective Subsidiaries
to, directly or indirectly create, incur, assume or permit to exist any Lien on or with respect to any of its
Property, except:
(a) Permitted Liens;
(b) Liens securing Indebtedness permitted to be incurred and remain outstanding pursuant to
Section 9.2.(d) and (e);
(c) lawful claims of materialmen, mechanics, carriers, warehousemen and landlords for
labor, materials, supplies and rentals which are being contested in good faith by appropriate proceedings
which operate to suspend the collection thereof and for which adequate reserves have been established in
accordance with GAAP;
(d) with respect to a Property, items listed on Schedule B to the owner’s title insurance
policy of the Borrower or a Subsidiary with respect to such Property, which do not materially detract from
the value of such Property or impair the intended use thereof in the business of the Borrower or such
Subsidiary, as applicable;
(e) Liens in favor of counterparties in respect of any Derivative Contracts;
(f) Liens securing judgments and awards for the payment of money not constituting an Event
of Default under Section 10.1.(h);
(g) bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to
cash and Cash Equivalents on deposit in one or more of accounts maintained by the Borrower or any
Subsidiary, in each case granted in the ordinary course of business in favor of the bank or banks with
which such accounts are maintained, securing amounts owing to such bank with respect to cash
management and operating account arrangements, including those involving pooled accounts and netting
arrangements; provided that in no case shall any such Liens secure (either directly or indirectly) the
repayment of any Indebtedness;
- 79 -
(h) licenses or sublicenses granted to others in the ordinary course of business which do not
(i) interfere in any material respect with the business of the Borrower and its Subsidiaries taken as a
whole and (ii) secure any Indebtedness;
(i) Liens of a collection bank arising under Section 4-210 of the Uniform Commercial Code
on the items in the course of collection;
(j) Liens solely on any xxxx xxxxxxx money deposits made by the Borrower or any Subsidiary
in connection with any letter of intent or purchase agreement permitted hereunder;
(k) Liens imposed pursuant to any of the provisions of ERISA or pursuant to any
Environmental Laws not otherwise resulting in a Default or Event of Default; and
(l) other Liens securing obligations (not constituting Indebtedness) outstanding in an
aggregate amount not to exceed $1,000,000 at any time.
Section 9.4. Negative Pledge.
The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other
Subsidiary (other than an Excluded Subsidiary) to, enter into, assume or otherwise be bound by any
Negative Pledge except for a Negative Pledge contained in (i) an agreement (x) evidencing Indebtedness
which (A) the Parent, the Borrower, such Loan Party or such Subsidiary may create, incur, assume, or
permit or suffer to exist without violation of this Agreement and (B) is secured by a Lien permitted to
exist under the Loan Documents (including Liens permitted under Section 9.3.), and (y) which prohibits
the creation of any other Lien on only the property securing such Indebtedness as of the date such
agreement was entered into; (ii) an agreement relating to the sale of a Subsidiary or assets pending such
sale, provided that in any such case the Negative Pledge applies only to the Subsidiary or the assets that
are the subject of such sale or proceeds or contract related to such sale; (iii) any document or instrument
relating to any Lien permitted under subsections (b), (e), (g), (h), (j) or (k) of Section 9.3. or any Lien
referred to in clause (b) of the definition of the term “Permitted Lien”, provided that in any such case the
Negative Pledge applies only to the assets that are subject to such Lien; or (iv) any Loan Document or
Specified Derivatives Contract.
Section 9.5. Restrictions on Intercompany Transfers.
The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other
Subsidiary (other than an Excluded Subsidiary) to, create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or restriction of any kind on the ability of any Subsidiary (other
than an Excluded Subsidiary) to: (a) pay dividends or make any other distribution on any of such
Subsidiary’s capital stock or other equity interests owned by the Parent, the Borrower or any other
Subsidiary; (b) pay any Indebtedness owed to the Parent, the Borrower or any other Subsidiary; (c) make
loans or advances to the Parent, the Borrower or any other Subsidiary; or (d) transfer any of its property
or assets to the Parent, the Borrower or any other Subsidiary; other than (i) with respect to the preceding
clauses (a) through (d), those encumbrances or restrictions contained in any Loan Document, (ii) with
respect to clause (d), customary provisions restricting assignment of any lease or other agreement entered
into by the Parent, the Borrower, any other Loan Party or any other Subsidiary in the ordinary course of
business, (iii) with respect to the preceding clauses (a), (c) and (d), which are customary provisions in
joint venture agreements and other similar agreements applicable to joint ventures permitted hereunder
and applicable solely to such joint venture entered into in the ordinary course of business, and (iv) with
respect to clause (d), customary restrictions contained in leases, subleases, licenses or asset sale
agreements otherwise permitted hereby so long as such restrictions relate to the assets subject thereto.
- 80 -
Section 9.6. Merger, Consolidation, Sales of Assets and Other Arrangements.
(a) The Parent and the Borrower shall not, and shall not permit any other Loan Party or any
other Subsidiary to, (w) enter into any transaction of merger, consolidation, reorganization or
recapitalization; (x) liquidate, windup or dissolve itself (or suffer any liquidation or dissolution);
(y) convey, sell, lease, sublease, transfer or otherwise dispose of, in one transaction or a series of
transactions, all or substantially all of its business or assets, or the Equity Interests in any Subsidiary,
whether now owned or hereafter acquired; or (z) acquire all or substantially all of the assets of, or Equity
Interests in, any other Person; provided, however, that:
(i) any Subsidiary (A) may merge with a Loan Party so long as such Loan Party is
the survivor (and in any merger involving the Borrower, the Borrower is the survivor) and
(B) that is not a Loan Party may merge with any other Subsidiary that is not a Loan Party;
(ii) any Subsidiary (A) may sell, transfer or otherwise dispose of its assets to a Loan
Party and (B) that is not a Loan Party may sell, transfer or otherwise dispose of its assets to any
other Subsidiary that is not a Loan Party, in each case, including any disposition that is by its
nature a liquidation;
(iii) (A) a Loan Party (other than the Parent, the Borrower or any Qualifying
Unencumbered Property Owner) and any Subsidiary that is not (and is not required to be) a Loan
Party may convey, sell, transfer or otherwise dispose of, in one transaction or a series of
transactions, all or substantially all of its business or assets, or the capital stock of or other Equity
Interests in any of its Subsidiaries (other than the Borrower or a Qualifying Unencumbered
Property Owner), and (B) any Loan Party and any other Subsidiary may, directly or indirectly,
acquire (whether by purchase, acquisition of Equity Interests of a Person, or as a result of a
merger or consolidation) all or substantially all of the assets of, or acquire Equity Interests in, any
other Person, so long as, in the case of each of clause (A) and (B), (1) immediately prior thereto,
and immediately thereafter and after giving effect thereto, no Default or Event of Default is or
would be in existence, including, without limitation, a Default or Event of Default resulting from
a breach of any of the covenants contained in Section 9.1.; (2) to the extent such sale, transfer,
disposition or acquisition of all or substantially all of the assets or Equity Interest of any
Subsidiary (other than the Borrower, a Loan Party or a Qualifying Unencumbered Property
Owner) and the consideration of such transaction is $75,000,000 or more: (x) the Borrower shall
have given the Administrative Agent and the Lenders at least 15-days prior written notice of such
conveyance, sale, transfer, disposition, acquisition, purchase, merger or consolidation, specifying
the nature of the transaction in reasonable detail; and (y) at the time the Borrower gives notice
pursuant to clause (2)(x) of this subsection, the Borrower shall have delivered to the
Administrative Agent for distribution to each of the Lenders a Compliance Certificate, calculated
on a pro forma basis, evidencing the continued compliance by the Loan Parties with the terms and
conditions of this Agreement and the other Loan Documents, including without limitation, the
covenants contained in Section 9.1., after giving pro forma effect to such conveyance, sale,
transfer, disposition, acquisition, purchase, merger or consolidation; and (3) in the case of a
consolidation or merger involving the Parent, the Borrower or a Qualifying Unencumbered
Property Owner, the Parent, the Borrower or such Qualifying Unencumbered Property Owner, as
the case may be, shall be the survivor thereof; and
(iv) the Parent, the Borrower, the other Loan Parties and the other Subsidiaries may
lease and sublease their respective assets, as lessor or sublessor (as the case may be), in the
ordinary course of their business.
- 81 -
Section 9.7. Plan Assets.
The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other
Subsidiary to, permit any of its respective assets to become or be deemed to be “plan assets” as defined by
29 C.F.R. 2510.3-101 (as modified by §3(42) of ERISA).
Section 9.8. Fiscal Year.
The Parent and the Borrower shall not, and shall not permit any other Loan Party or other
Subsidiary to, change its fiscal year from that in effect as of the Agreement Date.
Section 9.9. Modifications of Organizational Documents.
The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other
Subsidiary to, amend, supplement, restate or otherwise modify its certificate or articles of incorporation or
formation, by-laws, operating agreement, declaration of trust, partnership agreement or other applicable
organizational document if such amendment, supplement, restatement or other modification (a) would
materially and adversely affect the Administrative Agent, the Issuing Banks or the Lenders or their
respective rights and remedies under the Loan Documents or (b) could reasonably be expected to have a
Material Adverse Effect.
Section 9.10. Transactions with Affiliates.
The Parent and the Borrower shall not permit to exist or enter into, and shall not permit any other
Loan Party or any other Subsidiary to permit to exist or enter into, any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate,
except (a) as set forth on Schedule 9.10., (b) transactions solely among the Loan Parties, or
(c) transactions in the ordinary course of business of the Parent, the Borrower, such Loan Party or such
Subsidiary and upon fair and reasonable terms which are no less favorable to the Parent, the Borrower,
such Loan Party or such Subsidiary than would be obtained in a comparable arm’s length transaction with
a Person that is not an Affiliate. Notwithstanding the foregoing, no payments may be made with respect
to any items set forth on such Schedule 9.10. if a Default or Event of Default exists or would result
therefrom.
Section 9.11. Environmental Matters.
The Parent and the Borrower shall not, and shall not permit any other Loan Party, any other
Subsidiary or any other Person to, use, generate, discharge, emit, manufacture, handle, process, store,
release, transport, remove, dispose of or clean up any Hazardous Materials on, under or from the
Properties in violation of any Environmental Law, or in a manner that could reasonably be expected to
lead to any claim under Environmental Law or pose a risk to human health, safety or the environment, in
each case, which could reasonably be expected to have a Material Adverse Effect. Nothing in this
Section shall impose any obligation or liability whatsoever on the Administrative Agent or any Lender.
Section 9.12. Derivatives Contracts.
The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other
Subsidiary to, enter into or become obligated in respect of, Derivatives Contracts, other than Derivatives
Contracts entered into by the Parent, the Borrower, such Loan Party or such Subsidiary in the ordinary
- 82 -
course of business and which are intended to establish an effective hedge in respect of liabilities,
commitments or assets held or reasonably anticipated by such Person.
ARTICLE X. DEFAULT
Section 10.1. Events of Default.
Each of the following shall constitute an Event of Default, whatever the reason for such event and
whether it shall be voluntary or involuntary or be effected by operation of Applicable Law or pursuant to
any judgment or order of any Governmental Authority:
(a) Default in Payment.
(i) The Borrower shall fail to pay when due under this Agreement or any other Loan
Document (whether upon demand, at maturity, by reason of acceleration or otherwise) the
principal of any of the Loans or of any Reimbursement Obligation;
(ii) The Borrower shall fail to pay when due under this Agreement or any other Loan
Document (whether upon demand, at maturity, by reason of acceleration or otherwise) any
interest on any of the Loans or on any Reimbursement Obligation and in the case of this
subsection (a)(ii) only, such failure shall continue for a period of 5 days; or
(iii) The Borrower or any other Loan Party shall fail to pay when due under this
Agreement or any other Loan Document (whether upon demand, at maturity, by reason of
acceleration or otherwise) any other payment Obligations owing by the Borrower or such Loan
Party under this Agreement, any other Loan Document or the Fee Letter and in the case of this
subsection (a)(iii) only, such failure shall continue for a period of 5 days after the earlier of
(x) the date upon which a Responsible Officer of the Parent, the Borrower or such other Loan
Party obtains knowledge of such failure or (y) the date upon which the Parent or the Borrower has
received written notice of such failure from the Administrative Agent.
(b) Default in Performance.
(i) Any Loan Party shall fail to perform or observe any term, covenant, condition or
agreement on its part to be performed or observed and contained in Section 7.8., Section 8.4.(i),
Section 9.1., any of Sections 9.4 through Section 9.9. or Section 9.12; or
(ii) Any Loan Party shall fail to perform or observe any term, covenant, condition or
agreement contained in this Agreement or any other Loan Document to which it is a party and not
otherwise mentioned in this Section, and in the case of this subsection (b)(ii) only, such failure
shall continue for a period of 30 days after the earlier of (x) the date upon which a Responsible
Officer of the Parent, the Borrower or such other Loan Party obtains knowledge of such failure or
(y) the date upon which the Parent or the Borrower has received written notice of such failure
from the Administrative Agent.
(c) Misrepresentations. Any written statement, representation or warranty (other than
(i) financial projections, budgets, forecasts, pro forma financial statements and other forward looking
statements and (ii) general industry information) made or deemed made by or on behalf of any Loan Party
under this Agreement or under any other Loan Document, or any amendment hereto or thereto at any time
furnished by, or at the direction of, any Loan Party to the Administrative Agent, any Issuing Bank or any
- 83 -
Lender, shall at any time prove to have been incorrect or misleading in any material respect when
furnished or made or deemed made.
(d) Indebtedness Cross- Default.
(i) The Parent, the Borrower, any other Loan Party or any other Subsidiary shall fail
to make any payment when due and payable in respect of any Indebtedness (other than the Loans
and Reimbursement Obligations and any Indebtedness in respect to any Derivatives Contract)
having an aggregate outstanding principal amount (individually or in the aggregate with all other
Indebtedness as to which such a failure exists) of $20,000,000 or more (or $150,000,000 or more
in the case of Non-Recourse Indebtedness) (all such Indebtedness being “Material
Indebtedness”); or
(ii) (x) The maturity of any Material Indebtedness shall have been accelerated in
accordance with the provisions of any indenture, contract or instrument evidencing, providing for
the creation of or otherwise concerning such Material Indebtedness or (y) any Material
Indebtedness shall have been required to be prepaid, repurchased, redeemed or defeased prior to
the stated maturity thereof; or
(iii) Any other event shall have occurred and be continuing which, with or without the
passage of time, the giving of notice, or otherwise, would permit any holder or holders of any
Recourse Indebtedness having an aggregate outstanding principal amount (individually or in the
aggregate with all other Indebtedness as to which such a failure exists) of $75,000,000 or more
(other than the Loans and Reimbursement Obligations and any Indebtedness in respect to any
Derivatives Contract), any trustee or agent acting on behalf of such holder or holders or any other
Person, to accelerate the maturity of any such Recourse Indebtedness or require any such
Recourse Indebtedness to be prepaid, repurchased, redeemed or defeased prior to its stated
maturity; or
(iv) The Parent, the Borrower, any other Loan Party or any other Subsidiary shall fail
to pay when due (after giving effect to all applicable notice and cure rights) payments in respect
of Derivatives Contracts in an aggregate amount of $20,000,000 or more.
(e) Voluntary Bankruptcy Proceeding. The Parent, the Borrower, any other Loan Party or
any other Subsidiary shall: (i) commence a voluntary case under the Bankruptcy Code or other federal
bankruptcy laws (as now or hereafter in effect); (ii) file a petition seeking to take advantage of any other
Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up, or
composition or adjustment of debts; (iii) consent to, or fail to contest in a timely and appropriate manner,
any petition filed against it in an involuntary case under such bankruptcy laws or other Applicable Laws
or consent to any proceeding or action described in the immediately following subsection (f); (iv) apply
for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking
of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part of its
property, domestic or foreign; (v) admit in writing its inability to pay its debts generally as they become
due; (vi) make a general assignment for the benefit of creditors; (vii) make a conveyance fraudulent as to
creditors under any Applicable Law; or (viii) take any corporate or partnership action for the purpose of
effecting any of the foregoing.
(f) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be commenced
against the Parent, the Borrower, any other Loan Party or any other Subsidiary in any court of competent
jurisdiction seeking: (i) relief under the Bankruptcy Code or other federal bankruptcy laws (as now or
hereafter in effect) or under any other Applicable Laws, domestic or foreign, relating to bankruptcy,
- 84 -
insolvency, reorganization, winding-up, or composition or adjustment of debts; or (ii) the appointment of
a trustee, receiver, custodian, liquidator or the like of such Person, or of all or any substantial part of the
assets, domestic or foreign, of such Person, and in the case of either clause (i) or (ii) such case or
proceeding shall continue undismissed or unstayed for a period of 60 consecutive days, or an order
granting the remedy or other relief requested in such case or proceeding (including, but not limited to, an
order for relief under such Bankruptcy Code or such other federal bankruptcy laws) shall be entered.
(g) Revocation of Loan Documents. Any Loan Party shall (or shall attempt to) disavow,
revoke or terminate (except as a result of the express terms thereof) any Loan Document or the Fee Letter
to which it is a party or shall otherwise challenge or contest in any action, suit or proceeding in any court
or before any Governmental Authority the validity or enforceability of any Loan Document or the Fee
Letter or any Loan Document or the Fee Letter shall cease to be in full force and effect (except as a result
of the express terms thereof).
(h) Judgment. A judgment or order for the payment of money or for an injunction or other
non-monetary relief shall be entered against the Parent, the Borrower, any other Loan Party or any other
Subsidiary by any court or other tribunal and (i) such judgment or order shall continue for a period of 30
days without being paid, stayed or dismissed through appropriate appellate proceedings and (ii) the
amount of such judgment or order for which insurance has not been acknowledged in writing by the
applicable insurance carrier (or the amount as to which the insurer has denied liability) exceeds,
individually or together with all other such judgments or orders entered against the Loan Parties,
$50,000,000 or (B) in the case of an injunction or other non-monetary relief, such injunction or judgment
or order could reasonably be expected to have a Material Adverse Effect.
(i) Attachment. A warrant, writ of attachment, execution or similar process shall be issued
against any property of the Borrower, any other Loan Party or any other Subsidiary, which exceeds,
individually or together with all other such warrants, writs, executions and processes, $20,000,000 in
amount and such warrant, writ, execution or process shall not be paid, discharged, vacated, stayed or
bonded for a period of 30 days.
(j) ERISA. Any ERISA Event shall have occurred that results or could reasonably be
expected to have a Material Adverse Effect.
(k) Loan Documents. An Event of Default (as defined therein) shall occur under any of the
other Loan Documents.
(l) Change of Control.
(i) Any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”))(other than Xxx Xxxx), is
or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
except that a Person will be deemed to have “beneficial ownership” of all securities that such
Person has the right to acquire, whether such right is exercisable immediately or only after the
passage of time), directly or indirectly, of more than 30.0% of the total voting power of the then
outstanding voting stock of the Parent; or
(ii) during any period of 12 consecutive months ending after the Agreement Date,
individuals who at the beginning of any such 12-month period constituted the Board of Directors
of the Parent (together with any new directors whose election by such Board or whose
nomination for election by the shareholders of the Parent was approved by a vote of a majority of
- 85 -
the directors then still in office who were either directors at the beginning of such period or
whose election or nomination for election was previously so approved) cease for any reason to
constitute a majority of the Board of Directors of the Parent then in office; or
(iii) the Parent shall cease to own and control, directly or indirectly, more than 50%
of the outstanding Equity Interests of the Borrower; or
(iv) the Parent shall cease to be the sole general partner of the Borrower or shall cease
to have the sole and exclusive power to exercise all management and control over the Borrower.
Section 10.2. Remedies Upon Event of Default.
While an Event of Default shall exist, the following provisions shall apply:
(a) Acceleration; Termination of Facilities.
(i) Automatic. Upon the occurrence of an Event of Default specified in
Sections 10.1.(e) or 10.1.(f), (1)(A) the principal of, and all accrued interest on, the Loans and the
Notes at the time outstanding, (B) an amount equal to the Stated Amount of all Letters of Credit
outstanding as of the date of the occurrence of such Event of Default for deposit into the Letter of
Credit Collateral Account and (C) all of the other Obligations, including, but not limited to, the
other amounts owed to the Lenders and the Administrative Agent under this Agreement, the
Notes or any of the other Loan Documents shall become immediately and automatically due and
payable without presentment, demand, protest, or other notice of any kind, all of which are
expressly waived by the Parent and the Borrower on behalf of themselves and the other Loan
Parties, and (2) the Commitments and the Swingline Commitment, and the obligation of each
Issuing Bank to issue Letters of Credit hereunder, shall all immediately and automatically
terminate.
(ii) Optional. While any other Event of Default shall exist, the Administrative Agent
may, and at the direction of the Requisite Lenders shall: (1) declare (A) the principal of, and
accrued interest on, the Loans and the Notes at the time outstanding, (B) an amount equal to the
Stated Amount of all Letters of Credit outstanding as of the date of the occurrence of such Event
of Default for deposit into the Letter of Credit Collateral Account and (C) all of the other
Obligations, including, but not limited to, the other amounts owed to the Lenders and the
Administrative Agent under this Agreement, the Notes or any of the other Loan Documents to be
forthwith due and payable, whereupon the same shall immediately become due and payable
without presentment, demand, protest or other notice of any kind, all of which are expressly
waived by the Parent and the Borrower on behalf of themselves and the other Loan Parties, and
(2) terminate the Commitments and the Swingline Commitment and the obligation of each
Issuing Bank to issue Letters of Credit hereunder.
(b) Loan Documents. The Requisite Lenders may direct the Administrative Agent to, and
the Administrative Agent if so directed shall, exercise any and all of its rights under any and all of the
other Loan Documents.
(c) Applicable Law. The Requisite Lenders may direct the Administrative Agent to, and the
Administrative Agent if so directed shall, exercise all other rights and remedies it may have under any
Applicable Law.
- 86 -
(d) Appointment of Receiver. To the extent permitted by Applicable Law, the
Administrative Agent and the Lenders shall be entitled to the appointment of a receiver for the assets and
properties of the Parent, the Borrower, the other Loan Parties and the other Subsidiaries, without notice of
any kind whatsoever and without regard to the adequacy of any security for the Obligations or the
solvency of any party bound for its payment, to take possession of all or any portion of the property
and/or the business operations of the Parent, the Borrower, the other Loan Parties and the other
Subsidiaries and to exercise such power as the court shall confer upon such receiver.
(e) Specified Derivatives Contract Remedies. Notwithstanding any other provision of this
Agreement or other Loan Document, each Specified Derivatives Provider shall have the right, with
prompt notice to the Administrative Agent, but without the approval or consent of or other action by the
Administrative Agent or the Lenders, and without limitation of other remedies available to such Specified
Derivatives Provider under contract or Applicable Law, to undertake any of the following: (a) to declare
an event of default, termination event or other similar event under any Specified Derivatives Contract and
to create an “Early Termination Date” (as defined therein) in respect thereof, (b) to determine net
termination amounts in respect of any and all Specified Derivatives Contracts in accordance with the
terms thereof, and to set off amounts among such contracts, (c) to set off or proceed against deposit
account balances, securities account balances and other property and amounts held by such Specified
Derivatives Provider to the extent permitted under any applicable Specified Derivatives Contract or
Applicable Law, and (d) to prosecute any legal action against the Borrower, any Loan Party or other
Subsidiary to enforce or collect net amounts owing to such Specified Derivatives Provider pursuant to any
Specified Derivatives Contract.
Section 10.3. Remedies Upon Default.
Upon the occurrence of a Default specified in Section 10.1.(e), the Commitments, the Swingline
Commitment and the obligation of each Issuing Bank to issue Letters of Credit, shall immediately and
automatically terminate.
Section 10.4. Marshaling; Payments Set Aside.
No Lender Party shall be under any obligation to marshal any assets in favor of any Loan Party or
any other party or against or in payment of any or all of the Guaranteed Obligations. To the extent that
any Loan Party makes a payment or payments to a Lender Party, or a Lender Party enforces its security
interest or exercises its right of setoff, and such payment or payments or the proceeds of such enforcement
or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set
aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state
or federal law, common law or equitable cause, then to the extent of such recovery, the Guaranteed
Obligations, or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor,
shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.
Section 10.5. Allocation of Proceeds.
If an Event of Default exists, all payments received by the Administrative Agent (or any Lender
as a result of its exercise of remedies permitted under Section 12.3.) under any of the Loan Documents in
respect of any Guaranteed Obligations shall be applied in the following order and priority:
(a) to payment of that portion of the Guaranteed Obligations constituting fees,
indemnities, expenses and other amounts, including attorney fees, payable to the Administrative
Agent in its capacity as such, the applicable Issuing Bank in its capacity as such and the
- 87 -
applicable Swingline Lender in its capacity as such, ratably among the Administrative Agent,
each Issuing Bank and each Swingline Lender in proportion to the respective amounts described
in this clause (a) payable to them;
(b) to payment of that portion of the Guaranteed Obligations constituting fees,
indemnities and other amounts (other than principal and interest) payable to the Lenders under the
Loan Documents, including attorney fees, ratably among the Lenders in proportion to the
respective amounts described in this clause (b) payable to them;
(c) to payment of that portion of the Guaranteed Obligations constituting accrued
and unpaid interest on the Swingline Loans;
(d) to payment of that portion of the Guaranteed Obligations constituting accrued
and unpaid interest on the Loans and Reimbursement Obligations, ratably among the Lenders and
the Issuing Banks in proportion to the respective amounts described in this clause (d) payable to
them;
(e) to payment of that portion of the Guaranteed Obligations constituting unpaid
principal of the Swingline Loans;
(f) to payment of that portion of the Guaranteed Obligations constituting unpaid
principal of the Loans, Reimbursement Obligations, other Letter of Credit Liabilities and payment
obligations then owing under Specified Derivatives Contracts, ratably among the Lenders, the
Issuing Banks and the Specified Derivatives Providers in proportion to the respective amounts
described in this clause (f) payable to them; provided, however, to the extent that any amounts
available for distribution pursuant to this clause are attributable to the issued but undrawn amount
of an outstanding Letter of Credit, such amounts shall be paid to the Administrative Agent for
deposit into the Letter of Credit Collateral Account; and
(g) the balance, if any, after all of the Guaranteed Obligations have been indefeasibly
paid in full, to the Borrower or as otherwise required by Applicable Law.
Notwithstanding the foregoing, Guaranteed Obligations arising under Specified Derivatives Contracts
shall be excluded from the application described above if the Administrative Agent has not received
written notice thereof, together with such supporting documentation as the Administrative Agent may
request, from the applicable Specified Derivatives Provider. Each Specified Derivatives Provider not a
party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such
notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent
pursuant to the terms of Article XI. for itself and its Affiliates as if a “Lender” party hereto. Excluded
Swap Obligations with respect to the Guarantor shall not be paid with amounts received from the
Guarantor or the Guarantor’s assets, but appropriate adjustments shall be made with respect to payments
from other Loan Parties to preserve the allocations otherwise set forth above in this Section.
Section 10.6. Letter of Credit Collateral Account.
(a) As collateral security for the prompt payment in full when due of all Letter of Credit
Liabilities and the other Obligations, the Borrower hereby pledges and grants to the Administrative
Agent, for the ratable benefit of the Administrative Agent, the Issuing Banks and the Revolving Lenders
as provided herein, a security interest in all of its right, title and interest in and to the Letter of Credit
Collateral Account and the balances from time to time in the Letter of Credit Collateral Account
(including the investments and reinvestments therein provided for below). The balances from time to
- 88 -
time in the Letter of Credit Collateral Account shall not constitute payment of any Letter of Credit
Liabilities until applied by the applicable Issuing Bank as provided herein. Anything in this Agreement to
the contrary notwithstanding, funds held in the Letter of Credit Collateral Account shall be subject to
withdrawal only as provided in this Section.
(b) Amounts on deposit in the Letter of Credit Collateral Account shall be invested and
reinvested by the Administrative Agent in such Cash Equivalents as the Administrative Agent shall
determine in its sole discretion. All such investments and reinvestments shall be held in the name of and
be under the sole dominion and control of the Administrative Agent for the ratable benefit of the
Administrative Agent, the Issuing Banks and the Revolving Lenders, provided, that all earnings on such
investments will be credited to and retained in the Letter of Credit Collateral Account. The
Administrative Agent shall exercise reasonable care in the custody and preservation of any funds held in
the Letter of Credit Collateral Account and shall be deemed to have exercised such care if such funds are
accorded treatment substantially equivalent to that which the Administrative Agent accords other funds
deposited with the Administrative Agent, it being understood that the Administrative Agent shall not have
any responsibility for taking any necessary steps to preserve rights against any parties with respect to any
funds held in the Letter of Credit Collateral Account.
(c) If a drawing pursuant to any Letter of Credit occurs on or prior to the expiration date of
such Letter of Credit, the Borrower and the Revolving Lenders authorize the Administrative Agent to use
the monies deposited in the Letter of Credit Collateral Account to reimburse the applicable Issuing Bank
for the payment made by such Issuing Bank to the beneficiary with respect to such drawing or the payee
with respect to such presentment.
(d) If an Event of Default exists, the Administrative Agent may (and, if instructed by the
Requisite Lenders, shall) in its (or their) discretion at any time and from time to time elect to liquidate any
such investments and reinvestments and apply the proceeds thereof to the Obligations in accordance with
Section 10.5. Notwithstanding the foregoing, the Administrative Agent shall not be required to liquidate
and release any such amounts if such liquidation or release would result in the amount available in the
Letter of Credit Collateral Account to be less than the Stated Amount of all Extended Letters of Credit
that remain outstanding.
(e) So long as no Default or Event of Default exists, and to the extent amounts on deposit in
or credited to the Letter of Credit Collateral Account exceed the aggregate amount of the Letter of Credit
Liabilities then due and owing, the Administrative Agent shall, from time to time, at the request of the
Borrower, deliver to the Borrower within 10 Business Days after the Administrative Agent’s receipt of
such request from the Borrower, against receipt but without any recourse, warranty or representation
whatsoever, such amount of the credit balances in the Letter of Credit Collateral Account as exceeds the
aggregate amount of Letter of Credit Liabilities at such time. Upon the expiration, termination or
cancellation of an Extended Letter of Credit for which the Lenders reimbursed (or funded participations
in) a drawing deemed to have occurred under the fourth sentence of Section 2.3.(b) for deposit into the
Letter of Credit Collateral Account but in respect of which the Lenders have not otherwise received
payment for the amount so reimbursed or funded, the Administrative Agent shall promptly remit to the
Lenders the amount so reimbursed or funded for such Extended Letter of Credit that remains in the Letter
of Credit Collateral Account, pro rata in accordance with the respective unpaid reimbursements or funded
participations of the Lenders in respect of such Extended Letter of Credit, against receipt but without any
recourse, warranty or representation whatsoever. When all of the Obligations shall have been
indefeasibly paid in full (other than contingent indemnification obligations in respect of which no claims
have been asserted) and no Letters of Credit remain outstanding, the Administrative Agent shall deliver to
the Borrower, against receipt but without any recourse, warranty or representation whatsoever, the
balances remaining in the Letter of Credit Collateral Account.
- 89 -
(f) The Borrower shall pay to the Administrative Agent from time to time such fees as the
Administrative Agent normally charges for similar services in connection with the Administrative
Agent’s administration of the Letter of Credit Collateral Account and investments and reinvestments of
funds therein.
Section 10.7. Rescission of Acceleration by Requisite Lenders.
If at any time after acceleration of the maturity of the Loans and the other Obligations, the
Borrower shall pay all arrears of interest and all payments on account of principal of the Obligations
which shall have become due otherwise than by acceleration (with interest on principal and, to the extent
permitted by Applicable Law, on overdue interest, at the rates specified in this Agreement) and all Events
of Default and Defaults (other than nonpayment of principal of and accrued interest on the Obligations
due and payable solely by virtue of acceleration) shall become remedied or waived to the satisfaction of
the Requisite Lenders, then by written notice to the Borrower, the Requisite Lenders may elect, in the sole
discretion of such Requisite Lenders, to rescind and annul the acceleration and its consequences. The
provisions of the preceding sentence are intended merely to bind all of the Lenders to a decision which
may be made at the election of the Requisite Lenders, and are not intended to benefit the Borrower and do
not give the Borrower the right to require the Lenders to rescind or annul any acceleration hereunder,
even if the conditions set forth herein are satisfied.
Section 10.8. Performance by Administrative Agent.
If the Parent, the Borrower or any other Loan Party shall fail to perform any covenant, duty or
agreement contained in any of the Loan Documents, the Administrative Agent may, after notice to the
Borrower, perform or attempt to perform such covenant, duty or agreement on behalf of the Parent, the
Borrower or such other Loan Party, as applicable, after the expiration of any cure or grace periods set
forth herein. In such event, the Borrower shall, at the request of the Administrative Agent, promptly pay
any amount reasonably expended by the Administrative Agent in such performance or attempted
performance to the Administrative Agent, together with interest thereon from the date of such expenditure
until paid at the interest rate applicable to Base Rate Loans or at the Post-Default Rate if then applicable
under Section 2.5.(a). Notwithstanding the foregoing, neither the Administrative Agent nor any Lender
shall have any liability or responsibility whatsoever for the performance of any obligation of the
Borrower under this Agreement or any other Loan Document.
Section 10.9. Rights Cumulative.
(a) Generally. The rights and remedies of the Administrative Agent, the Lenders and the
Issuing Banks under this Agreement, each of the other Loan Documents and the Fee Letter and of the
Specified Derivatives Providers under the Specified Derivatives Contract shall be cumulative and not
exclusive of any rights or remedies which any of them may otherwise have under Applicable Law. In
exercising their respective rights and remedies the Administrative Agent, the Lenders, the Issuing Banks
and the Specified Derivatives Providers may be selective and no failure or delay by any such Lender
Party in exercising any right shall operate as a waiver of it, nor shall any single or partial exercise of any
power or right preclude its other or further exercise or the exercise of any other power or right.
(b) Enforcement by Administrative Agent. Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder
and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively
in, and all actions and proceedings at law in connection with such enforcement shall be instituted and
maintained exclusively by, the Administrative Agent in accordance with Article X. for the benefit of all
- 90 -
the Lenders and the Issuing Banks; provided that the foregoing shall not prohibit (i) the Administrative
Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its
capacity as Administrative Agent) hereunder and under the other Loan Documents, (ii) the Issuing Banks
or the Swingline Lenders from exercising the rights and remedies that inure to their benefit (solely in their
capacity as an Issuing Bank or a Swingline Lender, as the case may be) hereunder or under the other Loan
Documents, (iii) any Specified Derivatives Provider from exercising the rights and remedies that inure to
its benefit under any Specified Derivatives Contract, (iv) any Lender from exercising setoff rights in
accordance with Section 12.3. (subject to the terms of Section 3.3.), or (v) any Lender from filing proofs
of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative
to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is no
Person acting as Administrative Agent hereunder and under the other Loan Documents, then (x) the
Requisite Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to
Article X. and (y) in addition to the matters set forth in clauses (ii), (iv) and (v) of the preceding proviso
and subject to Section 3.3., any Lender may, with the consent of the Requisite Lenders, enforce any rights
and remedies available to it and as authorized by the Requisite Lenders.
ARTICLE XI. THE ADMINISTRATIVE AGENT
Section 11.1. Appointment and Authorization.
Each Lender hereby irrevocably appoints and authorizes the Administrative Agent to take such
action as contractual representative on such Lender’s behalf and to exercise such powers under this
Agreement and the other Loan Documents as are specifically delegated to the Administrative Agent by
the terms hereof and thereof, together with such powers as are reasonably incidental thereto. Not in
limitation of the foregoing, each Lender authorizes and directs the Administrative Agent to enter into the
Loan Documents for the benefit of the Lenders. Each Lender hereby agrees that, except as otherwise set
forth herein, any action taken by the Requisite Lenders in accordance with the provisions of this
Agreement or the Loan Documents, and the exercise by the Requisite Lenders of the powers set forth
herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized
and binding upon all of the Lenders. Nothing herein shall be construed to deem the Administrative Agent
a trustee or fiduciary for any Lender or to impose on the Administrative Agent duties or obligations other
than those expressly provided for herein. Without limiting the generality of the foregoing, the use of the
terms “Agent”, “Administrative Agent”, “agent” and similar terms in the Loan Documents with reference
to the Administrative Agent is not intended to connote any fiduciary or other implied (or express)
obligations arising under agency doctrine of any Applicable Law. Instead, use of such terms is merely a
matter of market custom, and is intended to create or reflect only an administrative relationship between
independent contracting parties. The Administrative Agent shall deliver or otherwise make available to
each Lender, promptly upon receipt thereof by the Administrative Agent, copies of each of the financial
statements, certificates, notices and other documents delivered to the Administrative Agent pursuant to
Article VIII. that the Parent or the Borrower is not otherwise required to deliver directly to the Lenders.
The Administrative Agent will furnish to any Lender, upon the request of such Lender, a copy (or, where
appropriate, an original) of any document, instrument, agreement, certificate or notice furnished to the
Administrative Agent by the Parent, the Borrower, any other Loan Party or any other Affiliate of the
Parent, pursuant to this Agreement or any other Loan Document not already delivered or otherwise made
available to such Lender pursuant to the terms of this Agreement or any such other Loan Document. As
to any matters not expressly provided for by the Loan Documents (including, without limitation,
enforcement or collection of any of the Obligations), the Administrative Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall
be fully protected in so acting or refraining from acting) upon the instructions of the Requisite Lenders (or
all of the Lenders if explicitly required under any other provision of this Agreement), and such
instructions shall be binding upon all Lenders and all holders of any of the Obligations; provided,
- 91 -
however, that, notwithstanding anything in this Agreement to the contrary, the Administrative Agent shall
not be required to take any action which exposes the Administrative Agent to personal liability or which
is contrary to this Agreement or any other Loan Document or Applicable Law. Not in limitation of the
foregoing, the Administrative Agent may exercise any right or remedy it or the Lenders may have under
any Loan Document upon the occurrence of a Default or an Event of Default unless the Requisite Lenders
have directed the Administrative Agent otherwise. Without limiting the foregoing, no Lender shall have
any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent
acting or refraining from acting under this Agreement or any of the other Loan Documents in accordance
with the instructions of the Requisite Lenders, or where applicable, all the Lenders.
Section 11.2. Xxxxx Fargo as Lender.
Xxxxx Fargo, as a Lender or as a Specified Derivatives Provider, as the case may be, shall have
the same rights and powers under this Agreement and any other Loan Document and under any Specified
Derivatives Contract, as the case may be, as any other Lender or Specified Derivatives Provider and may
exercise the same as though it were not the Administrative Agent; and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated, include Xxxxx Fargo in each case in its individual capacity.
Xxxxx Fargo and its Affiliates may each accept deposits from, maintain deposits or credit balances for,
invest in, lend money to, act as trustee under indentures of, serve as financial advisor to, and generally
engage in any kind of business with the Parent, the Borrower, any other Loan Party or any other Affiliate
thereof as if it were any other bank and without any duty to account therefor to the Lenders, the Issuing
Banks or any Specified Derivatives Providers. Further, the Administrative Agent and any Affiliate may
accept fees and other consideration from the Parent, the Borrower, any other Loan Party or any other
Subsidiary for services in connection with this Agreement or any Specified Derivatives Contract, or
otherwise without having to account for the same to the Lenders, the Issuing Banks or any Specified
Derivatives Providers. The Issuing Banks and the Lenders acknowledge that, pursuant to such activities,
Xxxxx Fargo or its Affiliates may receive information regarding the Parent, the Borrower, other Loan
Parties, other Subsidiaries and other Affiliates (including information that may be subject to
confidentiality obligations in favor of such Person) and acknowledge that the Administrative Agent shall
be under no obligation to provide such information to them.
Section 11.3. Approvals of Lenders.
All communications from the Administrative Agent to any Lender requesting such Lender’s
determination, consent or approval (a) shall be given in the form of a written notice to such Lender,
(b) shall be accompanied by a description of the matter or issue as to which such determination, consent
or approval is requested, or shall advise such Lender where information, if any, regarding such matter or
issue may be inspected, or shall otherwise describe the matter or issue to be resolved and (c) shall include,
if reasonably requested by such Lender and to the extent not previously provided to such Lender, written
materials provided to the Administrative Agent by the Borrower in respect of the matter or issue to be
resolved. Unless a Lender shall give written notice to the Administrative Agent that it specifically objects
to the requested determination, consent or approval within 10 Business Days (or such lesser or greater
period as may be specifically required under the express terms of the Loan Documents) of receipt of such
communication, such Lender shall be deemed to have conclusively approved such requested
determination, consent or approval. The provisions of this Section shall not apply to any amendment,
waiver or consent regarding any of the matters described in Section 12.6.(b) or (c).
Section 11.4. Notice of Events of Default.
The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of a
Default or Event of Default unless the Administrative Agent has received notice from a Lender or the
- 92 -
Borrower referring to this Agreement, describing with reasonable specificity such Default or Event of
Default and stating that such notice is a “notice of default.” If any Lender (excluding the Lender which is
also serving as the Administrative Agent) becomes aware of any Default or Event of Default, it shall
promptly send to the Administrative Agent such a “notice of default”; provided, a Lender’s failure to
provide such a “notice of default” to the Administrative Agent shall not result in any liability of such
Lender to any other party to any of the Loan Documents. Further, if the Administrative Agent receives
such a “notice of default,” the Administrative Agent shall give prompt notice thereof to the Lenders.
Section 11.5. Administrative Agent’s Reliance.
Notwithstanding any other provisions of this Agreement or any other Loan Documents, neither
the Administrative Agent nor any of its Related Parties shall be liable for any action taken or not taken by
it under or in connection with this Agreement or any other Loan Document, except for its or their own
gross negligence or willful misconduct in connection with its duties expressly set forth herein or therein
as determined by a court of competent jurisdiction in a final non-appealable judgment. Without limiting
the generality of the foregoing, the Administrative Agent may consult with legal counsel (including its
own counsel or counsel for the Parent, the Borrower or any other Loan Party), independent public
accountants and other experts selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel, accountants or experts. Neither
the Administrative Agent nor any of its Related Parties: (a) makes any warranty or representation to any
Lender, any Issuing Bank or any other Person or shall be responsible to any Lender, any Issuing Bank or
any other Person for any statement, warranty or representation made or deemed made by the Parent, the
Borrower, any other Loan Party or any other Person in or in connection with this Agreement or any other
Loan Document; (b) shall have any duty to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions of this Agreement or any other Loan Document or the
satisfaction of any conditions precedent under this Agreement or any Loan Document on the part of the
Borrower or other Persons or to inspect the property, books or records of the Borrower or any other
Person; (c) shall be responsible to any Lender or any Issuing Bank for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document,
any other instrument or document furnished pursuant thereto; (d) shall have any liability in respect of any
recitals, statements, certifications, representations or warranties contained in any of the Loan Documents
or any other document, instrument, agreement, certificate or statement delivered in connection therewith;
and (e) shall incur any liability under or in respect of this Agreement or any other Loan Document by
acting upon any notice, consent, certificate or other instrument or writing (which may be by telephone,
telecopy or electronic mail) believed by it to be genuine and signed, sent or given by the proper party or
parties. The Administrative Agent may execute any of its duties under the Loan Documents by or
through agents, employees or attorneys-in-fact and shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful
misconduct in the selection of such agent or attorney-in-fact as determined by a court of competent
jurisdiction in a final non-appealable judgment.
Section 11.6. Indemnification of Administrative Agent.
Each Lender agrees to indemnify the Administrative Agent (to the extent not reimbursed by the
Borrower and without limiting the obligation of the Borrower to do so) pro rata in accordance with such
Lender’s respective Pro Rata Share (determined as of the time the applicable unreimbursed expense or
indemnity payment is sought), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, reasonable out-of-pocket costs and expenses or disbursements of any
kind or nature whatsoever which may at any time be imposed on, incurred by, or asserted against the
Administrative Agent (in its capacity as Administrative Agent but not as a Lender) in any way relating to
or arising out of the Loan Documents, any transaction contemplated hereby or thereby or any action taken
- 93 -
or omitted by the Administrative Agent under the Loan Documents (collectively, “Indemnifiable
Amounts”); provided, further, that no Lender shall be liable for any portion of such Indemnifiable
Amounts to the extent resulting from the Administrative Agent’s gross negligence or willful misconduct
as determined by a court of competent jurisdiction in a final, non-appealable judgment; provided, further,
that no action taken in accordance with the directions of the Requisite Lenders (or all of the Lenders, if
expressly required hereunder) shall be deemed to constitute gross negligence or willful misconduct for
purposes of this Section. Without limiting the generality of the foregoing, each Lender agrees to
reimburse the Administrative Agent (to the extent not reimbursed by the Borrower and without limiting
the obligation of the Borrower to do so) promptly upon demand for its Pro Rata Share of any out-of-
pocket expenses (including the reasonable fees and expenses of the counsel to the Administrative Agent)
incurred by the Administrative Agent in connection with the preparation, negotiation, execution,
administration, or enforcement (whether through negotiations, legal proceedings, or otherwise) of, or
legal advice with respect to the rights or responsibilities of the parties under, the Loan Documents, any
suit or action brought by the Administrative Agent to enforce the terms of the Loan Documents and/or
collect any Obligations, any “lender liability” suit or claim brought against the Administrative Agent
and/or the Lenders, and any claim or suit brought against the Administrative Agent and/or the Lenders
arising under any Environmental Laws. Such out-of-pocket expenses (including counsel fees) shall be
advanced by the Lenders on the request of the Administrative Agent notwithstanding any claim or
assertion that the Administrative Agent is not entitled to indemnification hereunder upon receipt of an
undertaking by the Administrative Agent that the Administrative Agent will reimburse the Lenders if it is
actually and finally determined by a court of competent jurisdiction that the Administrative Agent is not
so entitled to indemnification. The agreements in this Section shall survive the payment of the Loans and
all other Obligations and the termination of this Agreement. If the Borrower shall reimburse the
Administrative Agent for any Indemnifiable Amount following payment by any Lender to the
Administrative Agent in respect of such Indemnifiable Amount pursuant to this Section, the
Administrative Agent shall share such reimbursement on a ratable basis with each Lender making any
such payment.
Section 11.7. Lender Credit Decision, Etc.
Each of the Lenders and each Issuing Bank expressly acknowledges and agrees that neither the
Administrative Agent nor any of its Related Parties has made any representations or warranties to such
Issuing Bank or such Lender and that no act by the Administrative Agent hereafter taken, including any
review of the affairs of the Parent, the Borrower, any other Loan Party or any other Subsidiary or
Affiliate, shall be deemed to constitute any such representation or warranty by the Administrative Agent
to any Issuing Bank or any Lender. Each of the Lenders and each Issuing Bank acknowledges that it has
made its own credit and legal analysis and decision to enter into this Agreement and the transactions
contemplated hereby, independently and without reliance upon the Administrative Agent, any other
Lender or counsel to the Administrative Agent, or any of their respective Related Parties, and based on
the financial statements of the Parent, the Borrower, the other Loan Parties, the other Subsidiaries and
other Affiliates, and inquiries of such Persons, its independent due diligence of the business and affairs of
the Parent, the Borrower, the other Loan Parties, the other Subsidiaries and other Persons, its review of
the Loan Documents, the legal opinions required to be delivered to it hereunder, the advice of its own
counsel and such other documents and information as it has deemed appropriate. Each of the Lenders and
each Issuing Bank also acknowledges that it will, independently and without reliance upon the
Administrative Agent, any other Lender or counsel to the Administrative Agent or any of their respective
officers, directors, employees and agents, and based on such review, advice, documents and information
as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action
under the Loan Documents. The Administrative Agent shall not be required to keep itself informed as to
the performance or observance by the Parent, the Borrower or any other Loan Party of the Loan
Documents or any other document referred to or provided for therein or to inspect the properties or books
- 94 -
of, or make any other investigation of, the Parent, the Borrower, any other Loan Party or any other
Subsidiary. Except for notices, reports and other documents and information expressly required to be
furnished to the Lenders and the Issuing Banks by the Administrative Agent under this Agreement or any
of the other Loan Documents, the Administrative Agent shall have no duty or responsibility to provide
any Lender or any Issuing Bank with any credit or other information concerning the business, operations,
property, financial and other condition or creditworthiness of the Parent, the Borrower, any other Loan
Party or any other Affiliate thereof which may come into possession of the Administrative Agent or any
of its Related Parties. Each of the Lenders and each Issuing Bank acknowledges that the Administrative
Agent’s legal counsel in connection with the transactions contemplated by this Agreement is only acting
as counsel to the Administrative Agent and is not acting as counsel to any Lender or any Issuing Bank.
Section 11.8. Successor Administrative Agent.
The Administrative Agent may resign at any time as Administrative Agent under the Loan
Documents by giving written notice thereof to the Lenders and the Borrower. Upon any such resignation,
the Requisite Lenders shall have the right to appoint a successor Administrative Agent which appointment
shall, provided no Event of Default exists, be subject to the Borrower’s approval, which approval shall
not be unreasonably withheld or delayed (except that the Borrower shall, in all events, be deemed to have
approved each Lender and any of its Affiliates as a successor Administrative Agent). If no successor
Administrative Agent shall have been so appointed in accordance with the immediately preceding
sentence, and shall have accepted such appointment, within 30 days after the current Administrative
Agent’s giving of notice of resignation, then the current Administrative Agent may, on behalf of the
Lenders and the Issuing Banks, appoint a successor Administrative Agent, which shall be a Lender, if any
Lender shall be willing to serve, and otherwise shall be an Eligible Assignee; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no Lender has accepted such
appointment, then such resignation shall nonetheless become effective in accordance with such notice and
(1) the Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents and (2) all payments, communications and determinations provided to be made by,
to or through the Administrative Agent shall instead be made to each Lender and each Issuing Bank
directly, until such time as a successor Administrative Agent has been appointed as provided for above in
this Section; provided, further that such Lenders and such Issuing Bank so acting directly shall be and be
deemed to be protected by all indemnities and other provisions herein for the benefit and protection of the
Administrative Agent as if each such Lender or each such Issuing Bank were itself the Administrative
Agent. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the current Administrative Agent, and the
current Administrative Agent shall be discharged from its duties and obligations under the Loan
Documents. Any resignation by an Administrative Agent shall also constitute the resignation as an
Issuing Bank and as a Swingline Lender by the Lender then acting as Administrative Agent (the
“Resigning Lender”). Upon the acceptance of a successor’s appointment as Administrative Agent
hereunder (i) the Resigning Lender shall be discharged from all duties and obligations of an Issuing Bank
and a Swingline Lender hereunder and under the other Loan Documents and (ii) any successor Issuing
Bank shall issue letters of credit in substitution for all Letters of Credit issued by the Resigning Lender as
an Issuing Bank outstanding at the time of such succession (which letters of credit issued in substitutions
shall be deemed to be Letters of Credit issued hereunder) or make other arrangements satisfactory to the
Resigning Lender to effectively assume the obligations of the Resigning Lender with respect to such
Letters of Credit. After any Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Article XI. shall continue to inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under the Loan Documents. Notwithstanding anything
contained herein to the contrary, the Administrative Agent may assign its rights and duties under the Loan
Documents to any of its Affiliates by giving the Borrower and each Lender prior written notice.
- 95 -
Section 11.9. Titled Agents.
Each of the Lead Arrangers, the Syndication Agent and the Documentation Agent (each a “Titled
Agent”) in each such respective capacity, assumes no responsibility or obligation hereunder, including,
without limitation, for servicing, enforcement or collection of any of the Loans, nor any duties as an agent
hereunder for the Lenders. The titles given to the Titled Agents are solely honorific and imply no
fiduciary responsibility on the part of the Titled Agents to the Administrative Agent, any Lender, any
Issuing Bank, the Borrower or any other Loan Party and the use of such titles does not impose on the
Titled Agents any duties or obligations greater than those of any other Lender or entitle the Titled Agents
to any rights other than those to which any other Lender is entitled.
Section 11.10. Specified Derivatives Contracts.
No Specified Derivatives Provider that obtains the benefits of Section 10.5. by virtue of the
provisions hereof or of any Loan Document shall have any right to notice of any action or to consent to,
direct or object to any action hereunder or under any other Loan Document or otherwise in respect of any
Loan Document other than in its capacity as a Lender and, in such case, only to the extent expressly
provided in the Loan Documents. Notwithstanding any other provision of this Article to the contrary, the
Administrative Agent shall not be required to verify the payment of, or that other satisfactory
arrangements have been made with respect to, Specified Derivatives Contracts unless the Administrative
Agent has received written notice of such Specified Derivatives Contracts, together with such supporting
documentation as the Administrative Agent may request, from the applicable Specified Derivatives
Provider.
ARTICLE XII. MISCELLANEOUS
Section 12.1. Notices.
Unless otherwise provided herein (including without limitation as provided in Section 8.5.),
communications provided for hereunder shall be in writing and shall be mailed, telecopied, or delivered
as follows:
If to the Parent or the Borrower:
Equity LifeStyle Properties, Inc.
or
MHC Operating Limited Partnership
Two Xxxxx Xxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxxxxxxx, General Counsel
Telephone: (000) 000-0000
Email: xxxxx_xxxxxxxxxx@xxxxxxxxxxxxxxx.xxx
- 96 -
with a copy to:
Equity LifeStyle Properties, Inc.
or
MHC Operating Limited Partnership
Two Xxxxx Xxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxx Xxxxxx, Executive Vice-President and Chief Financial Officer
Telephone: (000) 000-0000
Email: xxxx_xxxxxx@xxxxxxxxxxxxxxx.xxx
with a copy to (which shall not constitute notice):
Xxxxxxxx & Xxxxx LLP
000 X. XxXxxxx Xxxxxx
Xxxxxxx, XX 00000
Attention: Xxxxxx Xxxxxxx and Xxxxxx X. Xxxxx
Telephone: (000) 000-0000
Email: xxxxxx.xxxxx@xxxxxxxx.xxx
If to the Administrative Agent:
Xxxxx Fargo Bank, National Association
00 Xxxxx Xxxxxx Xxxxx, 00xx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxx
Telephone: (000) 000-0000
Email: xxxxx.x.xxxxx@xxxxxxxxxx.xxx
If to the Administrative Agent under Article II.:
Xxxxx Fargo Bank, National Association
000 Xxxxx 0xx Xx., 0xx Xxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
Attention: Xxxxx XxXxxxxxx, Syndications Administrator
Telephone: 000-000-0000
Email: xxxxx.x.xxxxxxxxx@xxxxxxxxxx.xxx
If to Xxxxx Fargo Bank, as an Issuing Bank:
Xxxxx Fargo Bank, National Association
00 Xxxxx Xxxxxx Xxxxx, 00xx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxx
Telephone: (000) 000-0000
Email: xxxxx.x.xxxxx@xxxxxxxxxx.xxx
- 97 -
If to Bank of America, as an Issuing Bank:
Bank of America, N.A.
Xxx Xxxxx Xxx
XX0-000-00-00
Xxxxxxxx, XX 00000-0000
Attention: Standby Letter Of Credit Unit
Telephone: 000-000-0000
Email: Xxxxxxxx_xxxxxxx_xx@xxxxxxxxxxxxx.xxx
If to any other Lender:
To such Lender’s address or telecopy number as set forth in the applicable
Administrative Questionnaire
or, as to each party at such other address as shall be designated by such party in a written notice to the
other parties delivered in compliance with this Section; provided, a Lender or an Issuing Bank shall only
be required to give notice of any such other address to the Administrative Agent and the Borrower. All
such notices and other communications shall be effective (i) if mailed, upon the first to occur of receipt or
the expiration of three (3) days after the deposit in the United States Postal Service mail, postage prepaid
and addressed to the address of the Borrower or the Administrative Agent, the Issuing Banks and Lenders
at the addresses specified; (ii) if hand delivered or sent by overnight courier, when delivered; or (iii) if
delivered in accordance with Section 8.5. to the extent applicable; provided, however, that, in the case of
the immediately preceding clauses (i) and (ii), non-receipt of any communication as of the result of any
change of address of which the sending party was not notified or as the result of a refusal to accept
delivery shall be deemed receipt of such communication. Notwithstanding the immediately preceding
sentence, all notices or communications to the Administrative Agent, the Issuing Banks or any Lender
under Article II. shall be effective only when actually received. None of the Administrative Agent, any
Issuing Bank or any Lender shall incur any liability to any Loan Party (nor shall the Administrative Agent
incur any liability to the Issuing Banks or the Lenders) for acting upon any telephonic notice referred to in
this Agreement which the Administrative Agent, such Issuing Bank or such Lender, as the case may be,
believes in good faith to have been given by a Person authorized to deliver such notice or for otherwise
acting in good faith hereunder. Failure of a Person designated to get a copy of a notice to receive such a
copy shall not affect the validity of notice properly given to another Person.
Section 12.2. Expenses.
The Borrower agrees (a) to pay or reimburse the Administrative Agent for all of its reasonable
out-of-pocket costs and expenses incurred in connection with the preparation, negotiation and execution
of, and any amendment, supplement or modification to, any of the Loan Documents (including due
diligence expense and reasonable travel expenses related to closing), and the consummation of the
transactions contemplated hereby and thereby, including the reasonable fees and disbursements of counsel
to the Administrative Agent and all costs and expenses of the Administrative Agent in connection with
the use of IntraLinks, SyndTrak or other similar information transmission systems in connection with the
Loan Documents, (b) to pay to each Issuing Bank all reasonable out-of-pocket costs and expenses
incurred by such Issuing Bank in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder, (c) to pay or reimburse the Administrative Agent,
each Issuing Bank and the Lenders for all their out-of-pocket costs and expenses incurred in connection
with the enforcement or preservation of any rights under the Loan Documents and the Fee Letter,
including the reasonable fees and disbursements of their respective counsel and any payments in
indemnification or otherwise payable by the Lenders to the Administrative Agent pursuant to the Loan
- 98 -
Documents, (d) to pay, and indemnify and hold harmless the Administrative Agent, each Issuing Bank
and the Lenders from, any and all recording and filing fees, if any, which may be payable or determined
to be payable in connection with the execution and delivery of any of the Loan Documents, or
consummation of any amendment, supplement or modification of, or any waiver or consent under or in
respect of, any Loan Document and (e) to the extent not already covered by any of the preceding
subsections, to pay or reimburse the fees and disbursements of counsel to the Administrative Agent, any
Issuing Bank and any Lender incurred in connection with the representation of the Administrative Agent,
any Issuing Bank or such Lender in any matter relating to or arising out of any bankruptcy or other
proceeding of the type described in Sections 10.1.(e) or 10.1.(f), including, without limitation (i) any
motion for relief from any stay or similar order, (ii) the negotiation, preparation, execution and delivery of
any document relating to the Obligations and (iii) the negotiation and preparation of any debtor-in-
possession financing or any plan of reorganization of the Parent, the Borrower or any other Loan Party,
whether proposed by the Parent, the Borrower, such Loan Party, the Lenders or any other Person, and
whether such fees and expenses are incurred prior to, during or after the commencement of such
proceeding or the confirmation or conclusion of any such proceeding. If the Borrower shall fail to pay any
amounts required to be paid by it pursuant to this Section, the Administrative Agent and/or the Lenders
may pay such amounts on behalf of the Borrower and such amounts shall be deemed to be Obligations
owing hereunder.
Section 12.3. Setoff.
Subject to Section 3.3. and in addition to any rights now or hereafter granted under Applicable
Law and not by way of limitation of any such rights, the Borrower hereby authorizes the Administrative
Agent, each Issuing Bank, each Lender, each Affiliate of the Administrative Agent, any Issuing Bank or
any Lender, and each Participant, at any time or from time to time while an Event of Default exists,
without notice to the Borrower or to any other Person, any such notice being hereby expressly waived, but
in the case of an Issuing Bank, a Lender, an Affiliate of an Issuing Bank or a Lender, or a Participant
subject to receipt of the prior written consent of the Requisite Lenders exercised in their sole discretion, to
set off and to appropriate and to apply any and all deposits (general or special, including, but not limited
to, indebtedness evidenced by certificates of deposit, whether matured or unmatured, but excluding trust,
payroll and tax withholding accounts) and any other indebtedness at any time held or owing by the
Administrative Agent, such Issuing Bank, such Lender, any Affiliate of the Administrative Agent, such
Issuing Bank or such Lender, or such Participant, to or for the credit or the account of the Borrower
against and on account of any of the Obligations, irrespective of whether or not any or all of the Loans
and all other Obligations have been declared to be, or have otherwise become, due and payable as
permitted by Section 10.2., and to the extent permitted under Applicable Law such Obligations as shall be
contingent or unmatured. Notwithstanding anything to the contrary in this Section, if any Defaulting
Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to
the Administrative Agent for further application in accordance with the provisions of Section 3.9. and,
pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed
held in trust for the benefit of the Administrative Agent, the Issuing Banks and the Lenders and (y) such
Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in
reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of
setoff.
Section 12.4. Litigation; Jurisdiction; Other Matters; Waivers.
(a) EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR
CONTROVERSY BETWEEN OR AMONG THE PARENT, THE BORROWER, THE
ADMINISTRATIVE AGENT, ANY ISSUING BANK OR ANY OF THE LENDERS WOULD BE
BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN
- 99 -
DELAY AND EXPENSE TO THE PARTIES. ACCORDINGLY, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF THE LENDERS, THE ADMINISTRATIVE AGENT, EACH
ISSUING BANK, THE PARENT, AND THE BORROWER HEREBY WAIVES ITS RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY
COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY
PARTY HERETO ARISING OUT OF THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR
THE FEE LETTER OR IN CONNECTION WITH ANY COLLATERAL OR BY REASON OF ANY
OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG THE
PARENT, THE BORROWER, THE ADMINISTRATIVE AGENT, ANY ISSUING BANK OR ANY
OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN
DOCUMENTS.
(b) EACH OF THE BORROWER AND THE PARENT IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION
OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY,
WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE
AGENT, ANY LENDER, ANY ISSUING BANK, OR ANY RELATED PARTY OF THE
FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM
OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK
COUNTY, AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF
NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE
JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY
SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL
JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN
ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY
OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE
AGENT, ANY LENDER OR ANY ISSUING BANK MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST THE BORROWER OR THE PARENT OR EITHER OR THEIR
RESPECTIVE PROPERTIES IN THE COURTS OF ANY JURISDICTION. EACH PARTY
FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH
ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND EACH
AGREES NOT TO PLEAD OR CLAIM THE SAME. THE CHOICE OF FORUM SET FORTH IN
THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY
THE ADMINISTRATIVE AGENT, ANY ISSUING BANK OR ANY LENDER OR THE
ENFORCEMENT BY THE ADMINISTRATIVE AGENT, ANY ISSUING BANK OR ANY LENDER
OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE
JURISDICTION.
(c) THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH
PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE
LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS
AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN
DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE
TERMINATION OF THIS AGREEMENT.
- 100 -
Section 12.5. Successors and Assigns.
(a) Successors and Assigns Generally. The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted
hereby, except that none of the Parent, the Borrower or any other Loan Party may assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of the Administrative
Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations
hereunder or under any other Loan Document except (i) to an Eligible Assignee in accordance with the
provisions of the immediately following subsection (b), (ii) by way of participation in accordance with the
provisions of the immediately following subsection (d) or (iii) by way of pledge or assignment of a
security interest subject to the restrictions of the immediately following subsection (e) (and, subject to the
last sentence of the immediately following subsection (b), any other attempted assignment or transfer by
any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in the immediately following subsection (d) and, to
the extent expressly contemplated hereby, the Related Parties of the Administrative Agent and the
Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees (an “Assignee”) all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Commitment, if any, and the Loans at the time owing to it); provided that any such
assignment shall be subject to the following conditions:
(i) Minimum Amounts.
(A) in the case of an assignment of the entire remaining amount of an
assigning Lender’s Commitment and/or the Loans of a given Class at the time owing to
it, or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and
(B) subject to Section 12.5.(b)(iii)(D), in any case not described in the
immediately preceding subsection (A), the aggregate amount of a Commitment (which
for this purpose includes Loans of such Class outstanding thereunder) or, if the
Commitments are not then in effect, the principal outstanding balance of the Loans of
such Class of the assigning Lender subject to each such assignment (in each case,
determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date) shall not be less than $15,000,000;
provided, however, that if after giving effect to such assignment, the amount of the
Commitment held by such assigning Lender or the outstanding principal balance of the
Loans of such Class of such assigning Lender, as applicable, would be less than
$15,000,000, then such assigning Lender shall assign the entire amount of its
Commitment and the Loans of such Class at the time owing to it.
(ii) Proportionate Amounts. Each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement
with respect to the Class of Loan or the Commitment assigned, except that this clause (ii) shall
not prohibit any Lender from assigning all or a portion of its rights and obligations among
separate Classes of Loans and Commitments on a non-rata basis.
- 101 -
(iii) Required Consents. No consent shall be required for any assignment except:
(A) the consent of the Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (x) an Event of Default shall exist at the
time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or
an Approved Fund; provided that the Borrower shall be deemed to have consented to any
such assignment unless it shall object thereto by written notice to the Administrative
Agent within 10 Business Days after having received notice thereof;
(B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments in respect of (x) a
Revolving Commitment if such assignment is to a Person that is not already a Revolving
Lender, an Affiliate of such a Lender or an Approved Fund with respect to such a Lender
or (y) a Term Loan to a Person who is not a Lender, an Affiliate of a Lender or Approved
Fund;
(C) the consent of the applicable Swingline Lender and the applicable
Issuing Bank (such consent not to be unreasonably withheld or delayed) shall be required
for any assignment in respect of a Revolving Commitment; and
(D) except as provided in Section 12.5.(b)(i)(A), the consent of the
Administrative Agent and, so long as no Event of Default shall exist, the Borrower (each
such consent not to be unreasonably withheld or delayed), shall be required for any
assignment of a Commitment (or, if the Commitments are not then in effect or in the case
of Term Loans, the principal outstanding balance of the Loans of such Class), which is
less than $15,000,000 in an aggregate amount (unless such amount represents the entire
amount of the assigning Lender’s Commitment or, if the Commitments are not then in
effect or in the case of Term Loans, the entire amount of all Loans of such Class at the
time owing to it); provided that the Borrower shall be deemed to have consented to any
such assignment unless it shall object thereto by written notice to the Administrative
Agent within 10 Business Days after having received notice thereof.
(iv) Assignment and Assumption; Notes. The parties to each assignment shall (A)
execute and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $4,500 for each assignment (which fee the Administrative
Agent may, in its sole discretion, elect to waive), and the assignee, if it is not a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire and (B) deliver the
documents required under Section 3.10.(g). If requested by the transferor Lender or the Assignee,
upon the consummation of any assignment, the transferor Lender, the Administrative Agent and
the Borrower shall make appropriate arrangements so that new Notes are issued to the Assignee
and such transferor Lender, as appropriate.
(v) No Assignment to Certain Persons. No such assignment shall be made to (A) the
Parent, the Borrower or any of the Affiliates or Subsidiaries of the Parent or the Borrower or
(B) to any Defaulting Lender or any of its Subsidiaries, or to any Person who, upon becoming a
Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).
(vi) No Assignment to Natural Persons. No such assignment shall be made to a
natural person.
- 102 -
(vii) Certain Additional Payments. In connection with any assignment of rights and
obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and
until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall
make such additional payments to the Administrative Agent in an aggregate amount sufficient,
upon distribution thereof as appropriate (which may be outright payment, purchases by the
assignee of participations or subparticipations, or other compensating actions, including funding,
with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of
Loans previously requested but not funded by the Defaulting Lender, to each of which the
applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all
payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing
Banks, the Swingline Lenders and each other Lender hereunder (and interest accrued thereon),
and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and, in the case of a
Defaulting Lender that is a Revolving Lender, participations in Letters of Credit and Swingline
Loans in accordance with its Revolving Commitment Percentage. Notwithstanding the
foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender
hereunder shall become effective under Applicable Law without compliance with the provisions
of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for
all purposes of this Agreement until such compliance occurs.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to the immediately
following subsection (c), from and after the effective date specified in each Assignment and Assumption,
the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by
such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment
and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 4.4.,
12.2. and 12.9. and the other provisions of this Agreement and the other Loan Documents as provided in
Section 12.10. with respect to facts and circumstances occurring prior to the effective date of such
assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no
assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder
arising from that Lender having been a Defaulting Lender. Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this paragraph shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in
accordance with the immediately following subsection (d).
(c) Register. The Administrative Agent, acting solely for this purpose as a non-fiduciary
agent of the Borrower, shall maintain at the Principal Office a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts and stated interest of the Loans owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive
(absent manifest error), and the Borrower, the Administrative Agent and the Lenders shall treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice. It is the intent of the parties to this Agreement that the Loans and Commitments
be in registered form within the meanings of Sections 163(f), 871(h)(2) and 881(c)(2) of the Internal
Revenue Code and any related regulations (and any successor provisions).
(d) Participations. Any Lender may at any time, without the consent of, or notice to, the
Parent, the Borrower, the Administrative Agent, the Issuing Banks or the Swingline Lenders, sell
- 103 -
participations to any Person (other than a natural person or the Borrower or any of the Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or
obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to
it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the performance of such obligations
and (iii) the Parent, the Borrower, the Administrative Agent, the Issuing Banks and the Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the Participant,
agree to (i) increase such Lender’s Commitment, (ii) extend the date fixed for the payment of principal on
the Loans or portions thereof owing to such Lender, (iii) reduce the rate at which interest is payable
thereon or (iv) release the Guarantor from its Obligations under the Guaranty, in each case, as applicable
to that portion of such Lender’s rights and/or obligations that are subject to the participation. The
Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.10., 4.1., 4.4. (subject
to the requirements and limitations therein, including the requirements under Section 3.10.(g) (it being
understood that the documentation required under Section 3.10.(g) shall be delivered to the participating
Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to
subsection (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of
Section 4.6. as if it were an assignee under subsection (b) of this Section; and (B) shall not be entitled to
receive any greater payment under Sections 4.1. or 3.10., with respect to any participation, than its
participating Lender would have been entitled to receive, except to the extent such entitlement to receive
a greater payment results from a Regulatory Change that occurs after the Participant acquired the
applicable participation. Each Lender that sells a participation agrees, at the Borrower’s request and
expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of
Section 4.6. with respect to any Participant. To the extent permitted by Applicable Law, each Participant
also shall be entitled to the benefits of Section 12.3. as though it were a Lender; provided that such
Participant agrees to be subject to Section 3.3. as though it were a Lender. Each Lender that sells a
participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a
register on which it enters the name and address of each Participant and the principal amounts (and stated
interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the
“Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of
the Participant Register (including the identity of any Participant or any information relating to a
Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan
Document) to any Person except to the extent that such disclosure is necessary to establish that such
commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of
the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent
manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register
as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the
contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent)
shall have no responsibility for maintaining a Participant Register.
(e) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or
any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge
or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee
or assignee for such Lender as a party hereto.
(f) No Registration. Each Lender agrees that, without the prior written consent of the
Borrower and the Administrative Agent, it will not make any assignment hereunder in any manner or
- 104 -
under any circumstances that would require registration or qualification of, or filings in respect of, any
Loan or Note under the Securities Act or any other securities laws of the United States of America or of
any other jurisdiction.
(g) USA Patriot Act Notice; Compliance. In order for the Administrative Agent to comply
with “know your customer” and anti-money laundering rules and regulations, including without
limitation, the Patriot Act, prior to any Lender that is organized under the laws of a jurisdiction outside of
the United States of America becoming a party hereto, the Administrative Agent may request, and such
Lender shall provide to the Administrative Agent, its name, address, tax identification number and/or
such other identification information as shall be necessary for the Administrative Agent to comply with
federal law.
Section 12.6. Amendments and Waivers.
(a) Generally. Except as otherwise expressly provided in this Agreement, (i) any consent or
approval required or permitted by this Agreement or any other Loan Document to be given by the
Lenders may be given, (ii) any provision of this Agreement or of any other Loan Document may be
amended, (iii) the performance or observance by the Parent, the Borrower or any other Loan Party or any
other Subsidiary of any terms of this Agreement or such other Loan Document may be waived, and (iv)
the continuance of any Default or Event of Default may be waived (either generally or in a particular
instance and either retroactively or prospectively) with, but only with, the written consent of the Requisite
Lenders (or the Administrative Agent at the written direction of the Requisite Lenders), and, in the case of
an amendment to any Loan Document, the written consent of each Loan Party which is party thereto.
Any term of this Agreement or of any other Loan Document relating solely to the rights or obligations of
the Lenders of one Class, and not Lenders of the other Class, may be amended, and the performance or
observance by the Borrower or any other Loan Party or any Subsidiary of any such terms may be waived
(either generally or in a particular instance and either retroactively or prospectively) with, and only with,
the written consent of the Requisite Class Lenders for such Class of Lenders (and, in the case of an
amendment to any Loan Document, the written consent of each Loan Party which is a party thereto).
(b) Additional Lender Consents. In addition to the foregoing requirements, no amendment,
waiver or consent shall:
(i) increase (or reinstate) a Commitment of a Lender or subject a Lender to any
additional obligations without the written consent of such Lender;
(ii) reduce the principal of, or interest that has accrued or the rates of interest that
will be charged on the outstanding principal amount of, any Loans or other Obligations, or
postpone any date fixed for, or forgive, any payment of principal of, or interest on, any Loan or
for the payment of Fees or any other Obligations, in each case, owing to any of the Lenders,
without the written consent of each Lender directly affected thereby; provided, however, only the
written consent of the Requisite Lenders shall be required for the waiver of interest payable at the
Post-Default Rate, retraction of the imposition of interest at the Post-Default Rate and amendment
of the definition of “Post-Default Rate”;
(iii) reduce the amount of any Fees payable to a Lender without the written consent of
such Lender;
(iv) modify the definitions of “Revolving Termination Date” (except in accordance
with Section 2.13.) or “Revolving Commitment Percentage”, modify clause (a) of the definition
- 105 -
of the term “Termination Date”, or extend the expiration date of any Letter of Credit beyond the
Revolving Termination Date, in each case, without the written consent of each Revolving Lender;
(v) modify the definition of “Term Loan Termination Date” or modify clause (b) of
the definition of the term “Termination Date”, in each case, without the written consent of each
Term Loan Lender;
(vi) while any Term Loans remain outstanding, amend, modify or waive (A)
Section 5.2. or any other provision of this Agreement if the effect of such amendment,
modification or waiver is to require the Revolving Lenders to make Revolving Loans, the
Swingline Lenders to make Swingline Loans or the Issuing Banks to issue Letters of Credit when
such Lenders or the Issuing Banks, as applicable, would not otherwise be required to do so,
(B) the amount of the Swingline Commitment or (C) the L/C Commitment Amount, in each case,
without the prior written consent of the Requisite Class Lenders for the Revolving Lenders;
(vii) modify the definition of “Pro Rata Share” or amend or otherwise modify the
provisions of Section 3.2. without the written consent of each Lender;
(viii) amend this Section or amend the definitions of the terms used in this Agreement
or the other Loan Documents insofar as such definitions affect the substance of this Section
without the written consent of each Lender;
(ix) modify the definition of the term “Requisite Lenders” or modify in any other
manner the number or percentage of all of the Lenders required to make any determinations or
waive any rights hereunder or to modify any provision hereof without the written consent of each
Lender;
(x) modify the definition of the term “Requisite Class Lenders” as it relates to a
Class of Lenders, or modify in any other manner the number or percentage of a Class of Lenders
required to make any determinations or waive any rights hereunder or to modify any provision
hereof, in each case, solely with respect to such Class of Lenders, without the written consent of
each Lender in such Class;
(xi) release the Guarantor from its obligations under the Guaranty without the written
consent of each Lender; or
(xii) amend, or waive the Borrower’s compliance with, Section 2.15. without the
written consent of each Revolving Lender.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or
disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which
by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent
of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any
Defaulting Lender may not be increased, reinstated or extended without the written consent of such
Defaulting Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or
each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected
Lenders shall require the written consent of such Defaulting Lender.
(c) Amendment of Administrative Agent’s Duties, Etc. No amendment, waiver or consent
unless in writing and signed by the Administrative Agent, in addition to the Lenders required hereinabove
to take such action, shall affect the rights or duties of the Administrative Agent under this Agreement or
- 106 -
any of the other Loan Documents. Any amendment, waiver or consent relating to Section 2.4. or the
obligations of a Swingline Lender under this Agreement or any other Loan Document shall, in addition to
the Lenders required hereinabove to take such action, require the written consent of such Swingline
Lender. Any amendment, waiver or consent relating to Section 2.3. or the obligations of the Issuing
Banks under this Agreement or any other Loan Document shall, in addition to the Lenders required
hereinabove to take such action, require the written consent of the applicable Issuing Bank. Any
amendment, waiver or consent with respect to any Loan Document that (i) diminishes the rights of a
Specified Derivatives Provider in a manner or to an extent dissimilar to that affecting the Lenders or (ii)
increases the liabilities or obligations of a Specified Derivatives Provider shall, in addition to the Lenders
required hereinabove to take such action, require the consent of the Lender that is (or having an Affiliate
that is) such Specified Derivatives Provider. No waiver shall extend to or affect any obligation not
expressly waived or impair any right consequent thereon and any amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose set forth therein. No course of dealing
or delay or omission on the part of the Administrative Agent or any Lender in exercising any right shall
operate as a waiver thereof or otherwise be prejudicial thereto. Any Event of Default occurring hereunder
shall continue to exist until such time as such Event of Default is waived in writing in accordance with the
terms of this Section, notwithstanding any attempted cure or other action by the Parent, the Borrower, any
other Loan Party or any other Person subsequent to the occurrence of such Event of Default; provided,
however, that any Event of Default resulting solely from the failure of any Loan Parties to give notice of a
Default pursuant as required by Section 8.4.(i) shall be deemed to be waived upon the cure or waiver of
such Default without any further action hereunder. Except as otherwise explicitly provided for herein or
in any other Loan Document, no notice to or demand upon the Borrower shall entitle the Borrower to
other or further notice or demand in similar or other circumstances.
(d) Technical Amendments. Notwithstanding anything to the contrary in this Section 12.6.,
if the Administrative Agent and the Borrower have jointly identified an ambiguity, omission, mistake or
defect in any provision of this Agreement or an inconsistency between provisions of this Agreement, the
Administrative Agent and the Borrower shall be permitted to amend such provision or provisions to cure
such ambiguity, omission, mistake, defect or inconsistency so long as to do so would not adversely affect
the interests of the Lenders and the Issuing Banks. Any such amendment shall become effective without
any further action or consent of any of other party to this Agreement and the Administrative Agent shall
promptly forward any such amendment to the Lenders.
Section 12.7. Nonliability of Administrative Agent and Lenders.
(a) The relationship between the Borrower, on the one hand, and the Lenders, the Issuing
Banks and the Administrative Agent, on the other hand, shall be solely that of borrower and lender. None
of the Administrative Agent, any Issuing Bank or any Lender shall have any fiduciary responsibilities to
the Parent, the Borrower or any other Loan Party and no provision in this Agreement or in any of the
other Loan Documents, and no course of dealing between or among any of the parties hereto, shall be
deemed to create any fiduciary duty owing by the Administrative Agent, any Issuing Bank or any Lender
to any Lender, the Parent, the Borrower, any Subsidiary or any other Loan Party. None of the
Administrative Agent, any Issuing Bank or any Lender undertakes any responsibility to the Parent or the
Borrower to review or inform the Parent or the Borrower of any matter in connection with any phase of
the business or operations of the Parent or the Borrower.
(b) In connection with all aspects of the Loan Documents, the Borrower and the Parent
acknowledge and agree that: (i) this Agreement and each transaction contemplated hereby is an arm’s-
length commercial transaction between the Borrower, on the one hand, and the Lenders, the Issuing
Banks and the Administrative Agent, on the other hand, and the Borrower is capable of evaluating and
understanding and understand and accept the terms, risks and conditions of this Agreement and the other
- 107 -
Loan Documents, (ii) none of the Lenders, the Issuing Banks or the Administrative Agent has assumed or
will assume an advisory, agency or fiduciary responsibility in the Borrower’s, the Parent’s or their
respective Affiliates’ favor with respect to any of the transaction contemplated by the Loan Documents
and none of the Lenders, the Issuing Banks or the Administrative Agent has any obligation to the
Borrower, the Parent or their respective Affiliates with respect to the transaction contemplated by the
Loan Documents except those obligations expressly set forth in the Loan Documents, (iii) the Lenders,
the Issuing Banks, the Administrative Agent and their respective Affiliates may be engaged in a broad
range of transactions that involve interests that differ from the Borrower, the Parent and their respective
Affiliates and none of the Lenders, the Issuing Banks or the Administrative Agent shall have any
obligation to disclose any of such interests, and (iv) none of the Lenders, the Issuing Banks or the
Administrative Agent has provided any legal, accounting, regulatory or tax advice with respect to this
Agreement and the other Loan Documents and the Borrower, the Parent and their respective Affiliates
have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed
appropriate.
Section 12.8. Confidentiality.
Except as otherwise provided by Applicable Law, the Administrative Agent, each Issuing Bank
and each Lender shall maintain the confidentiality of all Information (as defined below) in accordance
with its customary procedure for handling confidential information of this nature and in accordance with
safe and sound banking practices but in any event may make disclosure: (a) to its Affiliates and to its and
its Affiliates’ respective partners, directors, officers, employees, agents, advisors and other representatives
(it being understood that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information confidential); (b) subject
to an agreement containing provisions substantially the same as (or at least as restrictive as) those of this
Section, to (i) any actual or proposed Assignee, Participant or other transferee in connection with a
potential transfer of any Commitment or participation therein as permitted hereunder, or (ii) any actual or
prospective, direct or indirect, counterparty (or its advisors) to any swap or derivative transaction relating
to any Loan Party and its obligations; (c) as required or requested by any Governmental Authority or
representative thereof or pursuant to legal process or in connection with any legal proceedings, or as
otherwise required by Applicable Law (and prior to such disclosure, to the extent permitted under
Applicable Law, the Administrative Agent, the applicable Issuing Bank or applicable Lender shall
provide written notice thereof to the Borrower); (d) to the Administrative Agent’s, Issuing Bank’s or such
Lender’s independent auditors and other professional advisors (provided they shall be notified of the
confidential nature of the information); (e) in connection with the exercise of any remedies under any
Loan Document (or any Specified Derivatives Contract) or any action or proceeding relating to any Loan
Document (or any such Specified Derivatives Contract) or the enforcement of rights hereunder or
thereunder; (f) to the extent such Information (i) becomes publicly available other than as a result of a
breach of this Section actually known by the Administrative Agent or such Lender to be a breach of this
Section or (ii) becomes available to the Administrative Agent, any Lender or any Affiliate of the
Administrative Agent or any Lender on a nonconfidential basis from a source other than the Parent, the
Borrower or any of their respective Affiliates; (g) to the extent requested by, or required to be disclosed
to, any nationally recognized rating agency or regulatory or similar authority (including any self-
regulatory authority, such as the National Association of Insurance Commissioners) having or purporting
to have jurisdiction over it; (h) to bank trade publications, such information to consist of deal terms and
other information customarily found in such publications; (i) to any other party hereto; and (j) with the
consent of the Borrower. Notwithstanding the foregoing, the Administrative Agent, each Issuing Bank,
each Lender, and their respective Affiliates may disclose any such confidential information, without
notice to the Parent, the Borrower or any other Loan Party, to Governmental Authorities or self-regulatory
authorities (including, without limitations, bank and securities examiners) having or claiming to have
authority to regulate or oversee any aspect of the respective businesses of the Administrative Agent, any
- 108 -
Issuing Bank, any Lender or any of their respective Affiliates in connection with any regulatory
examination of the Administrative Agent, such Issuing Bank or such Lender or in accordance with the
regulatory compliance policy of the Administrative Agent, such Issuing Bank, such Lender or such
Affiliate. As used in this Section, the term “Information” means all information received from the Parent,
the Borrower, any other Loan Party, any other Subsidiary or Affiliate relating to any Loan Party or any of
their respective businesses, other than any such information that is available to the Administrative Agent,
any Lender or any Issuing Bank on a nonconfidential basis prior to disclosure by the Parent, the
Borrower, any other Loan Party, any other Subsidiary or any Affiliate. Any Person required to maintain
the confidentiality of Information as provided in this Section shall be considered to have complied with
its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality
of such Information as such Person would accord to its own confidential information. The obligations of
any Person required to maintain the confidentiality of Information as provided in this Section shall
survive the termination of this Agreement but shall terminate on the date one year following the latest
Termination Date.
Section 12.9. Indemnification.
(a) The Borrower shall and hereby agrees to indemnify, defend and hold harmless the
Administrative Agent, each of the Lenders, each Issuing Bank and their respective Related Parties (each
referred to herein as an “Indemnified Party”) from and against any and all of the following (collectively,
the “Indemnified Costs”): actual losses, costs, claims, penalties, damages, liabilities, deficiencies,
judgments or out-of-pocket expenses of every kind and nature (including, without limitation, amounts
paid in settlement, court costs and the fees and disbursements of counsel incurred in connection with any
litigation, investigation, claim or proceeding or any advice rendered in connection therewith, but
excluding Indemnified Costs indemnification in respect of which is specifically covered by Section 3.10.
or 4.1. or expressly excluded from the coverage of such Sections) incurred by an Indemnified Party in
connection with, arising out of, or by reason of, any suit, cause of action, claim, arbitration, investigation
or settlement, consent decree or other proceeding (the foregoing referred to herein as an “Indemnity
Proceeding”) which is in any way related directly or indirectly to: (i) this Agreement or any other Loan
Document or the transactions contemplated thereby; (ii) the making of any Loans or issuance of Letters of
Credit hereunder; (iii) any actual or proposed use by the Borrower of the proceeds of the Loans or Letters
of Credit; (iv) the Administrative Agent’s, any Issuing Bank’s or any Lender’s entering into this
Agreement; (v) the fact that the Administrative Agent, the Issuing Banks and the Lenders have
established the credit facility evidenced hereby in favor of the Borrower; (vi) the fact that the
Administrative Agent, the Issuing Banks and the Lenders are creditors of the Borrower and have or are
alleged to have information regarding the financial condition, strategic plans or business operations of the
Parent, the Borrower and the Subsidiaries; (vii) the fact that the Administrative Agent, the Issuing Banks
and the Lenders are material creditors of the Borrower and are alleged to influence directly or indirectly
the business decisions or affairs of the Parent, the Borrower and the Subsidiaries or their financial
condition; (viii) the exercise of any right or remedy the Administrative Agent, the Issuing Banks or the
Lenders may have under this Agreement or the other Loan Documents; (ix) any civil penalty or fine
assessed by the OFAC against, and all costs and expenses (including out-of-pocket counsel fees and
disbursements) incurred in connection with defense thereof by, the Administrative Agent, any Issuing
Bank or any Lender as a result of conduct of the Parent, the Borrower, any other Loan Party or any other
Subsidiary that violates a sanction administered or enforced by the OFAC; or (x) any violation or non-
compliance by the Parent, the Borrower, any other Loan Party or any other Subsidiary of any Applicable
Law (including any Environmental Law) including, but not limited to, any Indemnity Proceeding
commenced by (A) the Internal Revenue Service or state taxing authority or (B) any Governmental
Authority or other Person under any Environmental Law, including any Indemnity Proceeding
commenced by a Governmental Authority or other Person seeking remedial or other action to cause the
Parent or its Subsidiaries (or its respective properties) (or the Administrative Agent and/or the
- 109 -
Lenders and/or the Issuing Banks as successors to the Borrower) to be in compliance with such
Environmental Laws; provided, however, that the Borrower shall not be obligated to indemnify any
Indemnified Party for any acts or omissions of such Indemnified Party in connection with matters
described in this subsection to the extent arising from the gross negligence, bad faith or willful
misconduct of such Indemnified Party, as determined by a court of competent jurisdiction in a final, non-
appealable judgment. This paragraph (a) of this Section shall not apply with respect to Taxes other than
any Taxes that represent losses, claims or damages arising from any non-Tax claim.
(b) The Borrower’s indemnification obligations under this Section shall apply to all
Indemnity Proceedings arising out of, or related to, the foregoing whether or not an Indemnified Party is a
named party in such Indemnity Proceeding. In this connection, this indemnification shall cover all
Indemnified Costs of any Indemnified Party in connection with any deposition of any Indemnified Party
or compliance with any subpoena (including any subpoena requesting the production of documents). This
indemnification shall, among other things, apply to any Indemnity Proceeding commenced by other
creditors of the Parent, the Borrower or any Subsidiary, any shareholder of the Parent or any Subsidiary
(whether such shareholder(s) are prosecuting such Indemnity Proceeding in their individual capacity or
derivatively on behalf of the Borrower), any account debtor of the Parent, the Borrower or any Subsidiary
or by any Governmental Authority.
(c) This indemnification shall apply to any Indemnity Proceeding arising during the
pendency of any bankruptcy proceeding filed by or against the Parent, the Borrower and/or any
Subsidiary.
(d) An Indemnified Party may conduct its own investigation and defense of, and may
formulate its own strategy with respect to, any Indemnity Proceeding covered by this Section and, as
provided above, all Indemnified Costs incurred by such Indemnified Party shall be reimbursed by the
Borrower. No action taken by legal counsel chosen by an Indemnified Party in investigating or defending
against any such Indemnity Proceeding shall vitiate or in any way impair the obligations and duties of the
Borrower hereunder to indemnify and hold harmless each such Indemnified Party; provided, however,
that if (i) the Borrower is required to indemnify an Indemnified Party pursuant hereto and (ii) the
Borrower has provided evidence reasonably satisfactory to such Indemnified Party that the Borrower has
the financial wherewithal to reimburse such Indemnified Party for any amount paid by such Indemnified
Party with respect to such Indemnity Proceeding, such Indemnified Party shall not settle or compromise
any such Indemnity Proceeding without the prior written consent of the Borrower (which consent shall
not be unreasonably withheld or delayed). Notwithstanding the foregoing, an Indemnified Party may
settle or compromise any such Indemnity Proceeding without the prior written consent of the Borrower
where (x) no monetary relief is sought against such Indemnified Party in such Indemnity Proceeding or
(y) there is an allegation of a violation of law by such Indemnified Party.
(e) If and to the extent that the obligations of the Borrower under this Section are
unenforceable for any reason, the Borrower hereby agrees to make the maximum contribution to the
payment and satisfaction of such obligations which is permissible under Applicable Law.
(f) The Borrower’s obligations under this Section shall survive any termination of this
Agreement and the other Loan Documents and the payment in full in cash of the Obligations, and are in
addition to, and not in substitution of, any of the other obligations set forth in this Agreement or any other
Loan Document to which it is a party.
References in this Section 12.9. to “Lender” or “Lenders” shall be deemed to include such Persons (and
their Affiliates) in their capacity as Specified Derivatives Providers.
- 110 -
Section 12.10. Termination; Survival.
This Agreement shall terminate at such time as (a) all of the Commitments have been terminated,
(b) all Letters of Credit have terminated or expired or have been canceled (other than Extended Letters of
Credit in respect of which the Borrower has satisfied the requirements to provide Cash Collateral as
required in Section 2.3.(b)), (c) none of the Lenders is obligated any longer under this Agreement to make
any Loans and each Issuing Bank is no longer obligated to issue Letters of Credit under this Agreement
and (d) all Obligations (other than obligations which survive as provided in the following sentence) have
been paid and satisfied in full. The indemnities to which the Administrative Agent, the Issuing Banks and
the Lenders are entitled under the provisions of Sections 3.10., 4.1., 4.4., 11.6., 12.2. and 12.9. and any
other provision of this Agreement and the other Loan Documents, and the provisions of Section 12.4.,
shall continue in full force and effect and shall protect the Administrative Agent, the Issuing Banks and
the Lenders (i) notwithstanding any termination of this Agreement, or of the other Loan Documents,
against events arising after such termination as well as before and (ii) at all times after any such party
ceases to be a party to this Agreement with respect to all matters and events existing on or prior to the
date such party ceased to be a party to this Agreement.
Section 12.11. Severability of Provisions.
If any provision of this Agreement or the other Loan Documents shall be determined by a court of
competent jurisdiction to be invalid or unenforceable, that provision shall be deemed severed from the
Loan Documents, and the validity, legality and enforceability of the remaining provisions shall remain in
full force as though the invalid, illegal, or unenforceable provision had never been part of the Loan
Documents.
Section 12.12. GOVERNING LAW.
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED,
AND TO BE FULLY PERFORMED, IN SUCH STATE.
Section 12.13. Counterparts.
To facilitate execution, this Agreement and any amendments, waivers, consents or supplements
may be executed in any number of counterparts as may be convenient or required (which may be
effectively delivered by facsimile, in portable document format (“PDF”) or other similar electronic
means). It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of
all persons required to bind any party, appear on each counterpart. All counterparts shall collectively
constitute a single document. It shall not be necessary in making proof of this document to produce or
account for more than a single counterpart containing the respective signatures of, or on behalf of, each of
the parties hereto.
Section 12.14. Obligations with Respect to Loan Parties.
The obligations of the Parent and the Borrower to direct or prohibit the taking of certain actions
by the other Loan Parties as specified herein shall be absolute and not subject to any defense the Parent or
the Borrower may have that the Parent or the Borrower does not control such Loan Parties.
- 111 -
Section 12.15. Independence of Covenants.
All covenants hereunder shall be given in any jurisdiction independent effect so that if a
particular action or condition is not permitted by any of such covenants, the fact that it would be
permitted by an exception to, or be otherwise within the limitations of, another covenant shall not avoid
the occurrence of a Default or an Event of Default if such action is taken or condition exists.
Section 12.16. Limitation of Liability.
None of the Administrative Agent, any Issuing Bank, any Lender or any of their respective
Related Parties shall have any liability with respect to, and each of the Parent and the Borrower hereby
waives, releases, and agrees not to xxx any of them upon, any claim for any special, indirect, incidental, or
consequential damages suffered or incurred by the Parent or the Borrower in connection with, arising out
of, or in any way related to, this Agreement, any of the other Loan Documents or the Fee Letter, or any of
the transactions contemplated by this Agreement or any of the other Loan Documents. Each of the Parent
and the Borrower hereby waives, releases, and agrees not to xxx the Administrative Agent, any Issuing
Bank, any Lender or any of their respective Related Parties for punitive damages in respect of any claim
in connection with, arising out of, or in any way related to, this Agreement, any of the other Loan
Documents, the Fee Letter, or any of the transactions contemplated by this Agreement or financed hereby.
Section 12.17. Entire Agreement.
This Agreement, the Notes, the other Loan Documents and the Fee Letter embody the final, entire
agreement among the parties hereto and supersede any and all prior commitments, agreements,
representations, and understandings, whether written or oral, relating to the subject matter hereof and
thereof and may not be contradicted or varied by evidence of prior, contemporaneous, or subsequent oral
agreements or discussions of the parties hereto. To the extent any term of this Agreement is inconsistent
with a term of any other Loan Document to which the parties of this Agreement are party, the term of this
Agreement shall control to the extent of such inconsistency. There are no oral agreements among the
parties hereto.
Section 12.18. Construction.
The Administrative Agent, each Issuing Bank, each Lender, the Parent and the Borrower
acknowledge that each of them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement and the other Loan Documents with its legal counsel
and agree that this Agreement and the other Loan Documents shall be construed as if jointly drafted by
the Administrative Agent, each Issuing Bank, each Lender, the Parent and the Borrower.
Section 12.19. Headings.
The paragraph and section headings in this Agreement are provided for convenience of reference
only and shall not affect its construction or interpretation.
Section 12.20. Acknowledgement and Consent to Bail-in of EEA Financial Institutions.
Notwithstanding anything to the contrary in any Loan Document or in any other agreement,
arrangement or understanding among any such parties, each party hereto acknowledges that any liability
of any EEA Financial Institution arising under any Loan Document, to the extent such liability is
unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and
agrees and consents to, and acknowledges and agrees to be bound by:
- 112 -
(a) the application of any Write-Down and Conversion Powers by an EEA Resolution
Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is
an EEA Financial Institution; and
(b) the effects of any Bail-in Action on any such liability, including, if applicable:
(i) a reduction in full or in part or cancellation of any such liability;
(ii) a conversion of all, or a portion of, such liability into shares or other instruments
of ownership in such EEA Financial Institution, its parent undertaking, or a
bridge institution that may be issued to it or otherwise conferred on it, and that
such shares or other instruments of ownership will be accepted by it in lieu of
any rights with respect to any such liability under this Agreement or any other
Loan Document; or
(iii) the variation of the terms of such liability in connection with the exercise of the
write-down and conversion powers of any EEA Resolution Authority.
Section 12.21. No Novation.
(a) Existing Credit Agreement. Upon satisfaction of the conditions precedent set forth in
Sections 5.1. and 5.2. of this Agreement, this Agreement and the other Loan Documents shall exclusively
control and govern the mutual rights and obligations of the parties hereto with respect to the Existing
Credit Agreement, and the Existing Credit Agreement shall be superseded in all respects, in each case, on
a prospective basis only.
(b) NO NOVATION. THE PARTIES HERETO HAVE ENTERED INTO THIS
AGREEMENT SOLELY TO AMEND AND RESTATE THE TERMS OF, AND THE OBLIGATIONS
OWING UNDER, THE EXISTING CREDIT AGREEMENT. THE PARTIES DO NOT INTEND THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS
AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE
CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE
BORROWER UNDER OR IN CONNECTION WITH THE EXISTING CREDIT AGREEMENT OR
ANY OF THE OTHER LOAN DOCUMENTS (AS DEFINED IN THE EXISTING CREDIT
AGREEMENT).
[Signatures on Following Pages]
[Signatures Continued on Next Page]
IN WITNESS WHEREOF, the parties hereto have caused this Second Amended and Restated Credit
Agreement to be executed by their authorized officers all as of the day and year first above written.
BORROWER:
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland corporation, its
general partner
By: /s/ Xxxx Xxxxxx
Name: Xxxx Xxxxxx
Title: Executive Vice President, Chief Financial Officer
and Treasurer (Principal Financial and Accounting Officer)
PARENT:
EQUITY LIFESTYLE PROPERTIES, INC.,
a Maryland corporation
By: /s/ Xxxx Xxxxxx
Name: Xxxx Xxxxxx
Title: Executive Vice President, Chief Financial Officer
and Treasurer (Principal Financial and Accounting Officer)
[Signatures Continued on Next Page]
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
XXXXX FARGO BANK, NATIONAL ASSOCIATION, as
Administrative Agent, as an Issuing Bank, as a Swingline
Lender and as a Lender
By: /s/ Xxxxxx Xxx
Name: Xxxxxx Xxx
Title: Senior Vice President
[Signatures Continued on Next Page]
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
BANK OF AMERICA, N.A., as an Issuing Bank, a Swingline
Lender, a Syndication Agent and as a Lender
By: /s/ Xxxxxx Xxxxx
Name: Xxxxxx Xxxxx
Title: Vice President
[Signatures Continued on Next Page]
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
U.S. BANK NATIONAL ASSOCIATION, as a
Lender By:/s/ Xxxx X. Xxxxxxx
Name: Xxxx X. Xxxxxxx
Title: Senior Vice President
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
SUNTRUST BANK, as a Lender
By:/s/ Xxx Xxxxx
Name: Xxx Xxxxx
Title: Vice President
[Signatures Continued on Next Page]
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
REGIONS BANK, as a Lender
By:/s/ Xxxx Xxxxx
Name: Xxxx Xxxxx
Title: Vice President
[Signatures Continued on Next Page]
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
BRANCH BANK AND TRUST COMPANY, as a Lender
By:/s/ Xxxxxxx X. Xxxxxxxxx
Name: Xxxx Xxxxx
Title: Senior Vice President
[Signatures Continued on Next Page]
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
XXXXXXX SACHS BANK USA, as a Lender
By:/s/ Xxxxx Xxxx
Name: Xxxxx Xxxx
Title: Authorized Signatory
[Signatures Continued on Next Page]
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
XXXXXX XXXXXXX BANK, N.A., as a Lender
By:/s/ Xxxxxxx Xxxx
Name: Xxxxxxx Xxxx
Title: Authorized Signatory
[Signatures Continued on Next Page]
[Signature Page to Second Amended and Restated Credit Agreement
with MHC Operating Limited Partnership]
ASSOCIATED BANK, NATIONAL ASSOCIATION, as a
Lender
By:/s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: Senior Vice President
[Signatures Continued on Next Page]
SCHEDULE I
Revolving Commitments and Term Loans
Lender Revolving
Commitment
Term Loan
Xxxxx Fargo Bank, National Association $80,000,000 $40,000,000
Bank of America, N.A. $80,000,000 $40,000,000
U.S. Bank National Association $70,000,000 $40,000,000
SunTrust Bank $42,500,000 $22,500,000
Regions Bank $30,000,000 $20,000,000
Branch Banking and Trust Company $21,000,000 $14,000,000
Xxxxxxx Xxxxx Bank USA $35,000,000
Xxxxxx Xxxxxxx Bank, N.A. $23,500,000 $11,500,000
Associated Bank, National Association $18,000,000 $12,000,000
TOTAL $400,000,000 $200,000,000
A-1
EXHIBIT A
FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
This Assignment and Assumption Agreement (the “Assignment and Assumption”) is dated as of
the Effective Date set forth below and is entered into by and between [the][each]1 Assignor identified in
item 1 below ([the][each, an] “Assignor”) and [the][each]2 Assignee identified in item 2 below
([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the
Assignors][the Assignees]3 hereunder are several and not joint.]4 Capitalized terms used but not defined
herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the
“Credit Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee. The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.
For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes
from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as
contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its
capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of [the Assignor][the respective
Assignors] under the respective facilities identified below (including without limitation any letters of
credit, guarantees, and swingline loans included in such facilities), and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of [the] [any]
Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as
Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit
Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing, including, but not limited to,
contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and
(ii) above being referred to herein collectively as [the][an] “Assigned Interest”). Each such sale and
assignment is without recourse to [the][any] Assignor and, except as expressly provided in this
Assignment and Assumption, without representation or warranty by [the][any] Assignor.
1 For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from
a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose
the second bracketed language.
2 For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a
single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the
second bracketed language.
3 Select as appropriate.
4 Include bracketed language if there are either multiple Assignors or multiple Assignees.
A-2
1. Assignor[s]:
[Assignor [is] [is not] a Defaulting Lender]
2. Assignee[s]:
[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]
3. Borrower(s): MHC Operating Limited Partnership
4. Administrative Agent: Xxxxx Fargo Bank, National Association, as the administrative agent
under the Credit Agreement
5. Credit Agreement: The $600,000,000.00 Second Amended and Restated Credit Agreement
dated as of October 27, 2017 among MHC Operating Limited
Partnership, Equity LifeStyle Properties, Inc., the Lenders parties
thereto, Xxxxx Fargo Bank, National Association, as Administrative
Agent, and the other parties thereto.
6. Assigned Interest[s]:
Assignor[s]5
Assignee[s]6
Facility
Assigned7
Aggregate Amount
of
Commitment/Loans
for all Lenders8
Amount of
Commitment/Loans
Assigned8
Percentage
Assigned of
Commitment/
Loans9
CUSIP
Number
$ $ %
$ $ %
$ $ %
[7. Trade Date: ]10
[Page break]
5 List each Assignor, as appropriate.
6 List each Assignee, as appropriate.
7 Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being
assigned under this Assignment (e.g., “Revolving Credit Commitment,” “Term Loan Commitment,” etc.)
8 Amount to be adjusted by the counterparties to take into account any payments or prepayments made
between the Trade Date and the Effective Date.
9 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.
10 To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be
determined as of the Trade Date.
A-3
Effective Date: , 20 [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]
The terms set forth in this Assignment and Assumption are hereby agreed to:
ASSIGNOR[S]11
[NAME OF ASSIGNOR]
By:
Name:
Title:
[NAME OF ASSIGNOR]
By:
Name:
Title:
ASSIGNEE[S]12
[NAME OF ASSIGNEE]
By:
Name:
Title:
[NAME OF ASSIGNEE]
By:
Name:
Title:
11 Add additional signature blocks as needed.
12 Add additional signature blocks as needed.
A-4
[Consented to and]13 Accepted:
XXXXX FARGO BANK, NATIONAL ASSOCIATION, as
Administrative Agent
By:
Name:
Title:
[Consented to:]14
[NAME OF RELEVANT PARTY]
By:
Name:
Title:
13 To be added only if the consent of the Administrative Agent is required by the terms of the Credit
Agreement.
14 To be added only if the consent of the Borrower and/or other parties (e.g. a Swingline Lender or an Issuing
Bank) is required by the terms of the Credit Agreement.
A-5
ANNEX 1
[ ]15
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1. Representations and Warranties.
1.1 Assignor[s]. [The][Each] Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and
clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and (iv) it is [not] a Defaulting Lender; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or in connection
with the Credit Agreement or any other Loan Document16, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder,
(iii) the financial condition of the Parent, the Borrower, any of their respective Subsidiaries or Affiliates
or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by
the Parent, the Borrower, any of their respective Subsidiaries or Affiliates or any other Person of any of
their respective obligations under any Loan Document.
1.2. Assignee[s]. [The][Each] Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and
to consummate the transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all the requirements to be an Eligible Assignee as defined in the Credit
Agreement (subject to such consents, if any, as may be required under such definition), (iii) from and
after the Effective Date specified for this Assignment and Assumption, it shall be bound by the
provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant]
Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect
to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the person
exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring
assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been
accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to
Section 8.1 or 8.2, as applicable, and such other documents and information as it deems appropriate to
make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase
[the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative
Agent, the Assignor or any other Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and
to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached to the Assignment
and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, [the][any] Assignor or any other
Lender, and based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will
15 Describe Credit Agreement at option of Administrative Agent.
16 The term “Loan Document” should be conformed to that used in the Credit Agreement.
A-6
perform in accordance with their terms all of the obligations which by the terms of the Loan Documents
are required to be performed by it as a Lender.
1. Payments. From and after the Effective Date, the Administrative Agent shall make all
payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and
other amounts) to [the][the relevant] Assignee whether such amounts have accrued prior to, on or after
the Effective Date specified for this Assignment and Assumption. The Assignor[s] and the Assignee[s]
shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to such
Effective Date or with respect to the making of this assignment directly between themselves.
3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns. This Assignment and
Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption
by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and
Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with,
the law of the State of New York.
B-1
EXHIBIT B
FORM OF SECOND AMENDED AND RESTATED GUARANTY
THIS GUARANTY dated as of October 27, 2017 (this “Guaranty”) executed and delivered by
Equity LifeStyle Properties, Inc. (the “Guarantor”) in favor of XXXXX FARGO BANK, NATIONAL
ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the Lenders
under that certain Second Amended and Restated Credit Agreement dated as of the date hereof (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by
and among MHC Operating Limited Partnership (the “Borrower”), the Guarantor, the financial
institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), the
Administrative Agent and the other parties thereto, for its benefit and the benefit of the Lenders and the
Specified Derivatives Providers (the Administrative Agent, the Lenders, the Swingline Lenders and the
Specified Derivatives Providers, each individually a “Guarantied Party” and collectively, the “Guarantied
Parties”).
WHEREAS, pursuant to the Credit Agreement, the Guarantied Parties have agreed to make
available to the Borrower certain financial accommodations on the terms and conditions set forth in the
Credit Agreement;
WHEREAS, the Guarantor previously executed and delivered to the Administrative Agent that
certain Amended, Restated and Consolidated Guaranty dated as of July 17, 2014 (as amended and in
effect immediately prior to the date hereof, the “Existing Guaranty”);
WHEREAS, the Specified Derivatives Providers may from time to time enter into Specified
Derivatives Contracts, as applicable, with the Borrower and/or its Subsidiaries;
WHEREAS, the Borrower and the Guarantor, though separate legal entities, are mutually
dependent on each other in the conduct of their respective businesses as an integrated operation and have
determined it to be in their mutual best interests to obtain financing from the Guarantied Parties through
their collective efforts;
WHEREAS, the Guarantor acknowledges that it will receive direct and indirect benefits from the
Guarantied Parties making such financial accommodations available to the Borrower under the Credit
Agreement and, accordingly, the Guarantor is willing to guarantee the Borrower’s obligations to the
Guarantied Parties on the terms and conditions contained herein; and
WHEREAS, the amendment and restatement of the Existing Guaranty effected by the
Guarantor’s execution and delivery of this Guaranty is a condition to the Guarantied Parties’ making, and
continuing to make, such financial accommodations to the Borrower.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by the Guarantor, the Guarantor agrees that the Existing Guaranty is amended
and restated as follows:
Section 1. Guaranty. The Guarantor hereby absolutely, irrevocably and unconditionally
guaranties the due and punctual payment and performance when due, whether at stated maturity, by
acceleration or otherwise, of all of the following (collectively referred to as the “Guarantied
B-2
Obligations”), without duplication: (a) all indebtedness and obligations owing by the Borrower or any
other Loan Party to any Lender, any Issuing Bank or the Administrative Agent under or in connection
with the Credit Agreement or any other Loan Document, including without limitation, the repayment of
all principal of the Revolving Loans, Term Loans and Swingline Loans, and the Reimbursement
Obligations, and the payment of all interest, fees, charges, attorneys’ fees and other amounts payable to
any Lender, any Issuing Bank or the Administrative Agent thereunder or in connection therewith; (b) all
existing or future payment and other obligations owing by any Loan Party under any Specified
Derivatives Contract (other than any Excluded Swap Obligation); (c) any and all extensions, renewals,
modifications, amendments or substitutions of the foregoing; (d) all reasonable out-of-pocket expenses,
including, without limitation, reasonable attorneys’ fees and disbursements, that are incurred by the
Administrative Agent or any other Guarantied Party in the enforcement of any of the foregoing or any
obligation of such Guarantor hereunder; and (e) all other Guaranteed Obligations.
Section 2. Guaranty of Payment and Not of Collection. This Guaranty is a guaranty of payment,
and not of collection, and a debt of the Guarantor for its own account. Accordingly, the Guarantied
Parties shall not be obligated or required before enforcing this Guaranty against the Guarantor: (a) to
pursue any right or remedy the Guarantied Parties may have against the Borrower, any other Loan Party
or any other Person or commence any suit or other proceeding against the Borrower, any other Loan
Party or any other Person in any court or other tribunal; (b) to make any claim in a liquidation or
bankruptcy of the Borrower, any other Loan Party or any other Person; or (c) to make demand of the
Borrower, any other Loan Party or any other Person or to enforce or seek to enforce or realize upon any
collateral security held by the Guarantied Parties which may secure any of the Guarantied Obligations.
Section 3. Guaranty Absolute. The Guarantor guarantees that the Guarantied Obligations will
be paid strictly in accordance with the terms of the documents evidencing the same, regardless of any
Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of
the Guarantied Parties with respect thereto. The liability of the Guarantor under this Guaranty shall be
absolute, irrevocable and unconditional in accordance with its terms and shall remain in full force and
effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise
affected by, any circumstance or occurrence whatsoever, including without limitation, the following
(whether or not the Guarantor consents thereto or has notice thereof):
(a) (i) any change in the amount, interest rate or due date or other term of any of the
Guarantied Obligations, (ii) any change in the time, place or manner of payment of all or any portion of
the Guarantied Obligations, (iii) any amendment or waiver of, or consent to the departure from or other
indulgence with respect to, the Credit Agreement, any other Loan Document, any Specified Derivatives
Contract, or any other document, instrument or agreement evidencing or relating to any Guarantied
Obligations (the “Guarantied Documents”), or (iv) any waiver, renewal, extension, addition, or
supplement to, or deletion from, or any other action or inaction under or in respect of, any Guarantied
Document or any assignment or transfer of any Guarantied Document;
(b) any lack of validity or enforceability of any Guarantied Document or any assignment or
transfer of any Guarantied Document;
(c) any furnishing to any of the Guarantied Parties of any security for any of the Guarantied
Obligations, or any sale, exchange, release or surrender of, or realization on, any collateral securing any
of the Guarantied Obligations;
B-3
(d) any settlement or compromise of any of the Guarantied Obligations, any security
therefor, or any liability of any other party with respect to any of the Guarantied Obligations, or any
subordination of the payment of any of the Guarantied Obligations to the payment of any other liability
of the Borrower or any other Loan Party;
(e) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to the Guarantor, the Borrower, any other Loan Party or any
other Person, or any action taken with respect to this Guaranty by any trustee or receiver, or by any court,
in any such proceeding;
(f) any act or failure to act by the Borrower, any other Loan Party or any other Person which
may adversely affect the Guarantor’s subrogation rights, if any, against any other Loan Party or any other
Person to recover payments made under this Guaranty;
(g) any nonperfection or impairment of any security interest or other Lien on any collateral,
if any, securing in any way any of the Guarantied Obligations;
(h) any application of sums paid by the Borrower, or any other Person with respect to the
liabilities of the any Loan Party to the Guarantied Parties, regardless of what liabilities of the Borrower
remain unpaid;
(i) any defect, limitation or insufficiency in the borrowing powers of the Borrower or in the
exercise thereof;
(j) any defense, set off, claim or counterclaim (other than payment and performance in full
of the Guarantied Obligations) which may at any time be available to or be asserted by the Borrower, or
any Loan Party or any other Person against the Administrative Agent or any other Guarantied Party;
(k) any change in corporate existence, structure or ownership of the Borrower or any other
Loan Party;
(l) any statement, representation or warranty made or deemed made by or on behalf of the
Borrower, or any other Loan Party under any Guarantied Document, or any amendment hereto or thereto,
proves to have been incorrect or misleading in any respect; or
(m) any other circumstance which might otherwise constitute a defense available to, or a
discharge of, the Guarantor hereunder (other than payment and performance in full or release or
termination of the obligations of the Guarantor hereunder as provided by the terms of the Credit
Agreement).
Section 4. Action with Respect to Guarantied Obligations. The Guaranteed Parties may, at any
time and from time to time, without the consent of, or notice to, the Guarantor, and without discharging
the Guarantor from its obligations hereunder, take any and all actions described in Section 3. and may
otherwise: (a) amend, modify, alter or supplement the terms of any of the Guarantied Obligations,
including, but not limited to, extending or shortening the time of payment of any of the Guarantied
Obligations or changing the interest rate that may accrue on any of the Guarantied Obligations;
(b) amend, modify, alter or supplement any Guarantied Document; (c) sell, exchange, release or
otherwise deal with all, or any part, of any collateral securing any of the Guarantied Obligations;
(d) release any Loan Party or other Person liable in any manner for the payment or collection of any of
B-4
Guarantied Obligations; (e) exercise, or refrain from exercising, any rights against the Borrower, any
other Loan Party or any other Person; and (f) apply any sum, by whomsoever paid or however realized, to
the Guarantied Obligations in such order as the Guarantied Parties shall elect.
Section 5. Representations and Warranties. The Guarantor hereby makes to the Administrative
Agent and the other Guarantied Parties all of the representations and warranties made by the Borrower
with respect to or in any way relating to the Guarantor in the Credit Agreement and the other Guarantied
Documents, as if the same were set forth herein in full.
Section 6. Covenants. The Guarantor will comply with all covenants which the Borrower is to
cause the Guarantor to comply with under the terms of the Credit Agreement or any of the other
Guarantied Documents.
Section 7. Waiver. The Guarantor, to the fullest extent permitted by Applicable Law, hereby
waives notice of acceptance hereof or any presentment, demand, protest or notice of any kind, and any
other act or thing, or omission or delay to do any other act or thing, which in any manner or to any extent
might vary the risk of the Guarantor or which otherwise might operate to discharge the Guarantor from
its obligations hereunder.
Section 8. Inability to Accelerate Loan. If the Guarantied Parties or any of them are prevented
under Applicable Law or otherwise from demanding or accelerating payment of any one of the
Guarantied Obligations by reason of any automatic stay or otherwise, the Administrative Agent and/or
the other Guarantied Parties shall be entitled to receive from the Guarantor, upon demand therefor, the
sums which otherwise would have been due had such demand or acceleration occurred.
Section 9. Reinstatement of Guarantied Obligations. If claim is ever made on the Administrative
Agent or any other Guarantied Party for repayment or recovery of any amount or amounts received in
payment or on account of any of the Guarantied Obligations, and the Administrative Agent or such other
Guarantied Party repays all or part of said amount by reason of (a) any judgment, decree or order of any
court or administrative body of competent jurisdiction, or (b) any settlement or compromise of any such
claim effected by the Administrative Agent or such other Guarantied Party with any such claimant
(including the Borrower or a trustee in bankruptcy for the Borrower), then and in such event the
Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding on it,
notwithstanding any revocation hereof or the cancellation of any of the Guarantied Documents, or any
other instrument evidencing any liability of the Borrower, and the Guarantor shall be and remain liable to
the Administrative Agent or such other Guarantied Party for the amounts so repaid or recovered to the
same extent as if such amount had never originally been paid to the Administrative Agent or such other
Guarantied Party.
Section 10. Subrogation. Upon the making by the Guarantor of any payment hereunder for the
account of another Loan Party, the Guarantor shall be subrogated to the rights of the payee against such
Loan Party; provided, however, that the Guarantor shall not enforce any right or receive any payment by
way of subrogation or otherwise take any action in respect of any other claim or cause of action the
Guarantor may have against such Loan Party arising by reason of any payment or performance by the
Guarantor pursuant to this Guaranty, unless and until all of the Guarantied Obligations have been paid
and performed in full. If any amount shall be paid to the Guarantor on account of or in respect of such
subrogation rights or other claims or causes of action, the Guarantor shall hold such amount in trust for
the benefit of the Guarantied Parties and shall forthwith pay such amount to the Administrative Agent to
be credited and applied against the Guarantied Obligations, whether matured or unmatured, in
B-5
accordance with the terms of the Credit Agreement or to be held by the Administrative Agent as
collateral security for any Guarantied Obligations existing with respect to Letter of Credit Liabilities.
Section 11. Payments Free and Clear. All sums payable by the Guarantor hereunder, whether of
principal, interest, fees, expenses, premiums or otherwise, shall be paid in full, without set-off or
counterclaim or any deduction or withholding whatsoever (including any Taxes, subject to Section 3.10.
of the Credit Agreement), and if the Guarantor is required by Applicable Law or by any Governmental
Authority to make any such deduction or withholding, subject to Section 3.10. of the Credit Agreement,
the Guarantor shall pay to the Administrative Agent and the Lenders such additional amount as will
result in the receipt by the Administrative Agent and the Lenders of the full amount payable hereunder
had such deduction or withholding not occurred or been required.
Section 12. Set-off. In addition to any rights now or hereafter granted under any of the other
Guarantied Documents or Applicable Law and not by way of limitation of any such rights, the Guarantor
hereby authorizes each Guarantied Party, each Affiliate of a Guarantied Party, and each Participant, at
any time while an Event of Default exists, subject to and pursuant to Section 12.3. of the Credit
Agreement, without any prior notice to such Guarantor or to any other Person, any such notice being
hereby expressly waived, but in the case of a Guarantied Party (other than the Administrative Agent), an
Affiliate of a Guarantied Party (other than the Administrative Agent), or a Participant, subject to receipt
of the prior written consent of the Requisite Lenders exercised in their sole discretion, to set-off and to
appropriate and to apply any and all deposits (general or special, including, but not limited to,
indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other
indebtedness at any time held or owing by a Guarantied Party, an Affiliate of a Guarantied Party or such
Participant to or for the credit or the account of the Guarantor against and on account of any of the
Guarantied Obligations, although such obligations shall be contingent or unmatured. The Guarantor
agrees, to the fullest extent permitted by Applicable Law, that any Participant may exercise rights of
setoff or counterclaim and other rights with respect to its participation as fully as if such Participant were
a direct creditor of the Guarantor in the amount of such participation, to the extent permitted under the
Credit Agreement.
Section 13. Subordination. The Guarantor hereby expressly covenants and agrees for the benefit
of the Guarantied Parties that all obligations and liabilities of any other Loan Party to the Guarantor of
whatever description, including without limitation, all intercompany receivables of the Guarantor from
any other Loan Party (collectively, the “Junior Claims”) shall be subordinate and junior in right of
payment to all Guarantied Obligations. If an Event of Default shall exist, then the Guarantor shall not
accept any direct or indirect payment (in cash, property or securities, by setoff or otherwise) from any
other Loan Party on account of or in any manner in respect of any Junior Claim until all of the
Guarantied Obligations have been paid in full.
Section 14. Avoidance Provisions. It is the intent of the Guarantor and the Guarantied Parties
that in any Proceeding, the Guarantor’s maximum obligation hereunder shall equal, but not exceed, the
maximum amount which would not otherwise cause the obligations of the Guarantor hereunder (or any
other obligations of the Guarantor to the Guarantied Parties) to be avoidable or unenforceable against the
Guarantor in such Proceeding as a result of Applicable Law, including without limitation, (a) Section 548
of the Bankruptcy Code and (b) any state fraudulent transfer or fraudulent conveyance act or statute
applied in such Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise. The
Applicable Laws under which the possible avoidance or unenforceability of the obligations of the
Guarantor hereunder (or any other obligations of the Guarantor to the Guarantied Parties) shall be
determined in any such Proceeding are referred to as the “Avoidance Provisions”. Accordingly, to the
B-6
extent that the obligations of the Guarantor hereunder would otherwise be subject to avoidance under the
Avoidance Provisions, the maximum Guarantied Obligations for which the Guarantor shall be liable
hereunder shall be reduced to that amount which, as of the time any of the Guarantied Obligations are
deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of the
Guarantor hereunder (or any other obligations of the Guarantor to the Guarantied Parties), to be subject
to avoidance under the Avoidance Provisions. This Section is intended solely to preserve the rights of
the Administrative Agent and the other Guarantied Parties hereunder to the maximum extent that would
not cause the obligations of the Guarantor hereunder to be subject to avoidance under the Avoidance
Provisions, and the Guarantor or any other Person shall not have any right or claim under this Section as
against the Guarantied Parties that would not otherwise be available to such Person under the Avoidance
Provisions.
Section 15. Information. The Guarantor assumes all responsibility for being and keeping itself
informed of the financial condition of the Borrower and the other Loan Parties, and of all other
circumstances bearing upon the risk of nonpayment of any of the Guarantied Obligations and the nature,
scope and extent of the risks that the Guarantor assumes and incurs hereunder, and agrees that neither of
the Administrative Agent nor any other Guarantied Party shall have any duty whatsoever to advise the
Guarantor of information regarding such circumstances or risks.
Section 16. Governing Law. THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH
STATE.
SECTION 17. WAIVER OF JURY TRIAL.
(a) THE GUARANTOR, AND EACH OF THE ADMINISTRATIVE AGENT AND THE
OTHER GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF, ACKNOWLEDGES
THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE GUARANTOR, THE
ADMINISTRATIVE AGENT OR ANY OF THE OTHER GUARANTIED PARTIES WOULD BE
BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN
DELAY AND EXPENSE TO THE PARTIES. ACCORDINGLY, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, THE GUARANTOR, THE ADMINISTRATIVE AGENT AND THE OTHER
GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF, HEREBY WAIVES ITS
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE
IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR
AGAINST ANY PARTY HERETO ARISING OUT OF THIS GUARANTY.
(b) THE GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT
IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR
DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR
OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY OTHER GUARANTIED PARTY,
OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS
GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING
HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW
YORK SITTING IN NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT OF
THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY
THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN
B-7
RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES
HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING
IN THIS GUARANTY OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT
THAT THE ADMINISTRATIVE AGENT OR ANY OTHER GUARANTIED PARTY MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
GUARANTY OR ANY OTHER LOAN DOCUMENT AGAINST THE GUARANTOR OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION. EACH PARTY FURTHER WAIVES
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING
WAS BROUGHT IN AN INCONVENIENT FORUM, AND EACH AGREES NOT TO PLEAD OR
CLAIM THE SAME. THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE
DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY ANY GUARANTIED PARTY OR
THE ENFORCEMENT BY ANY GUARANTIED PARTY OF ANY JUDGMENT OBTAINED IN
SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.
(c) THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH
PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE
LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS
AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER GUARANTIED
DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE
TERMINATION OF THIS GUARANTY.
Section 18. Loan Accounts. The Administrative Agent and each other Guarantied Party may
maintain books and accounts setting forth the amounts of principal, interest and other sums paid and
payable with respect to the Guarantied Obligations arising under or in connection with the Guarantied
Documents, and in the case of any dispute relating to any of the outstanding amount, payment or receipt
of any of such Guarantied Obligations or otherwise, the entries in such books and accounts shall be
deemed conclusive evidence of amounts and other matters set forth herein, absent manifest error. The
failure of the Administrative Agent or any other Guarantied Party to maintain such books and accounts
shall not in any way relieve or discharge the Guarantor of any of its obligations hereunder.
Section 19. Waiver of Remedies. No delay or failure on the part of the Administrative Agent or
any other Guarantied Party in the exercise of any right or remedy it may have against the Guarantor
hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the
Administrative Agent or any other Guarantied Party of any such right or remedy shall preclude any other
or further exercise thereof or the exercise of any other such right or remedy.
Section 20. Termination. Notwithstanding any provision contained herein to the contrary,
except as provided in Section 9, this Guaranty shall remain in full force and effect with respect to the
Guarantor until payment in full of the Guarantied Obligations and the termination of the Credit
Agreement in accordance with Section 12.10 thereof, in each case other than contingent indemnification
obligations for which no claim has been made, and the termination or cancellation of the Credit
Agreement in accordance with its terms.
B-8
Section 21. Successors and Assigns. Each reference herein to the Administrative Agent or any
other Guarantied Party shall be deemed to include such Person’s respective successors and assigns
(including, but not limited to, any holder of the Guarantied Obligations) in whose favor the provisions of
this Guaranty also shall inure, and each reference herein to the Guarantor shall be deemed to include the
Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding. The Guarantied
Parties may, in accordance with the applicable provisions of the Guarantied Documents, assign, transfer
or sell any Guarantied Obligation, or grant or sell participations in any Guarantied Obligations, to any
Person without the consent of, or notice to, the Guarantor and without releasing, discharging or
modifying the Guarantor’s obligations hereunder. Subject to Section 12.8 of the Credit Agreement, each
Guarantor hereby consents to the delivery by the Administrative Agent and any other Guarantied Party to
any Assignee or Participant (or any prospective Assignee or Participant) of any financial or other
information regarding the Borrower or the Guarantor. The Guarantor may not assign or transfer its
obligations hereunder to any Person without the prior written consent of all Lenders and any such
assignment or other transfer to which all of the Lenders have not so consented shall be null and void.
Section 22. Amendments. This Guaranty may not be amended except in writing signed by the
Administrative Agent and the Guarantor, subject to Section 12.6 of the Credit Agreement.
Section 23. Payments. All payments to be made by the Guarantor pursuant to this Guaranty
shall be made in Dollars, in immediately available funds to the Administrative Agent at its Principal
Office, not later than 1:00 p.m. Central time, on the date of demand therefor.
Section 24. Notices. All notices, requests and other communications hereunder shall be in
writing (including facsimile transmission or similar writing) and shall be given (a) to the Guarantor at its
address set forth below its signature hereto, (b) to the Administrative Agent or any other Guarantied
Party at its respective address for notices provided for in the Guarantied Documents, as applicable, or (c)
as to each such party at such other address as such party shall designate in a written notice to the other
parties. Each such notice, request or other communication shall be effective (i) if mailed, when received;
or (ii) if hand delivered or sent by overnight courier, when delivered; provided, however, that in the case
of the immediately preceding clauses (i) and (ii), non-receipt of any communication as the result of any
change of address of which the sending party was not notified or as the result of a refusal to accept
delivery shall be deemed receipt of such communication.
Section 25. Severability. In case any provision of this Guaranty shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.
Section 26. Headings. Section headings used in this Guaranty are for convenience only and
shall not affect the construction of this Guaranty.
Section 27. Limitation of Liability. None of the Administrative Agent, any other Guarantied
Party or any of their respective Related Parties, shall have any liability with respect to, and the Guarantor
hereby waives, releases, and agrees not to xxx any of them upon, any claim for any special, indirect,
incidental, or consequential damages suffered or incurred by the Guarantor in connection with, arising
out of, or in any way related to, this Guaranty, any of the other Guarantied Documents, or any of the
transactions contemplated by this Guaranty or any of the other Guarantied Documents. The Guarantor
hereby waives, releases, and agrees not to xxx the Administrative Agent, any other Guarantied Party or
any of their respective Related Parties for punitive damages in respect of any claim in connection with,
B-9
arising out of, or in any way related to, this Guaranty, any of the other Guarantied Documents, or any of
the transactions contemplated by hereby or thereby.
Section 28. Electronic Delivery of Certain Information. The Guarantor acknowledges and agrees
that information regarding the Guarantor may be delivered electronically pursuant to Section 8.5. of the
Credit Agreement.
Section 29. Keepwell. Each Qualified ECP Guarantor hereby jointly and severally absolutely,
unconditionally and irrevocably undertakes to provide such funds or other support as may be needed
from time to time by each other Loan Party to honor all of its obligations under this Guaranty in respect
of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under
this Section for the maximum amount of such liability that can be hereby incurred without rendering its
obligations under this Section, or otherwise under this Guaranty, voidable under applicable law relating
to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each
Qualified ECP Guarantor under this Section shall remain in full force and effect until termination of this
Guaranty in accordance with Section 20 hereof. Each Qualified ECP Guarantor intends that this Section
constitute, and this Section shall be deemed to constitute, a “keepwell, support, or other agreement” for
the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity
Exchange Act.
Section 30. Definitions. (a) For the purposes of this Guaranty:
“Proceeding” means any of the following: (i) a voluntary or involuntary case concerning the
Guarantor shall be commenced under the Bankruptcy Code; (ii) a custodian (as defined in such
Bankruptcy Code or any other applicable bankruptcy laws) is appointed for, or takes charge of, all or any
substantial part of the property of the Guarantor; (iii) any other proceeding under any Applicable Law,
domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up or composition for
adjustment of debts, whether now or hereafter in effect, is commenced relating to the Guarantor; (iv) the
Guarantor is adjudicated insolvent or bankrupt; (v) any order of relief or other order approving any such
case or proceeding is entered by a court of competent jurisdiction; (vi) the Guarantor makes a general
assignment for the benefit of creditors; (vii) the Guarantor shall fail to pay, or shall state that it is unable
to pay, or shall be unable to pay, its debts generally as they become due; (viii) the Guarantor shall call a
meeting of its creditors with a view to arranging a composition or adjustment of its debts; (ix) the
Guarantor shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of
the foregoing; or (x) any corporate action shall be taken by the Guarantor for the purpose of effecting any
of the foregoing.
“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party
(including the Borrower) that has total assets exceeding $10,000,000 at the time the relevant Guarantee
or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such
other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any
regulations promulgated thereunder and can cause another person to qualify as an “eligible contract
participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity
Exchange Act.
(b) As used herein, “Guarantor” shall mean, as the context requires, collectively, (a) each
Subsidiary identified as a “Guarantor” on the signature pages hereto, (b) each Person that joins this
Guaranty as a Guarantor pursuant to the Credit Agreement, (c) with respect to (i) any Specified
Derivatives Obligations between any Loan Party (other than the Borrower) and any Specified Derivatives
B-10
Provider, the Borrower and (ii) the payment and performance by each other Loan Party of its obligations
under the Guaranty with respect to all Swap Obligations, the Borrower, and (d) the successors and
permitted assigns of the foregoing.
(c) Terms not otherwise defined herein are used herein with the respective meanings given
them in the Credit Agreement.
Section 31. Novation. PARTIES HERETO HAVE ENTERED INTO THIS GUARANTY TO
AMEND AND RESTATE THE TERMS OF, AND THE OBLIGATIONS OWING UNDER, THE
EXISTING GUARANTY. THE PARTIES DO NOT INTEND THIS GUARANTY OR THE
TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS GUARANTY AND THE
TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A
NOVATION OF ANY OF THE OBLIGATIONS OWING BY ANY GUARANTOR UNDER OR IN
CONNECTION WITH THE EXISTING GUARANTY. THE AMENDMENT AND RESTATEMENT
OF THE EXISTING GUARANTY EFFECTED BY THIS GUARANTY SHALL BE EFFECTIVE ON A
PROSPECTIVE BASIS ONLY.
[Signatures on Following Page]
B-11
IN WITNESS WHEREOF, the Guarantor has duly executed and delivered this Amended,
Restated and Consolidated Guaranty as of the date and year first written above.
GUARANTOR:
EQUITY LIFESTYLE PROPERTIES, INC.,
a Maryland corporation
By:
Name:
Title:
Address for Notices to Guarantor:
c/o MHC Operating Limited Partnership
Xxx Xxxxx Xxxxxxxxx Xxxxx
Xxxxx 000
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxxxxxxx, General Counsel
Telephone: (000) 000-0000
B-12
BORROWER:
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
C-1
EXHIBIT C
FORM OF NOTICE OF REVOLVING BORROWING
, 20
Xxxxx Fargo Bank, National Association, as
Administrative Agent
Attn:
Ladies and Gentlemen:
Reference is made to that certain Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo
Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties
thereto. Capitalized terms used herein, and not otherwise defined herein, have their respective meanings
given them in the Credit Agreement.
1. Pursuant to Section 2.1.(b) of the Credit Agreement, the Borrower hereby requests that
the Revolving Lenders make Revolving Loans to the Borrower in an aggregate principal
amount equal to $ .
2. The Borrower requests that such Revolving Loans be made available to the Borrower on
, 20 .
3. The Borrower hereby requests that such Revolving Loans be of the following Type:
[Check one box only]
Base Rate Loans
LIBOR Loans, with an initial Interest Period for a duration of:
[Check one box only]
one month
three months
six months
4. The proceeds of such Revolving Loans will be used for
.
The Borrower hereby certifies to the Administrative Agent and the Lenders that as of the date
hereof and as of the date of the making of the requested Revolving Loans, and immediately after giving
effect thereto, (a) no Default or Event of Default exists or shall exist, and none of the limits specified in
Section 2.15. of the Credit Agreement shall be violated; and (b) the representations and warranties made
or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of
them is a party are and shall be true and correct in all material respects (except in the case of a
C-2
representation or warranty qualified by materiality, in which case such representation or warranty is and
shall be true and correct in all respects) with the same force and effect as if made on and as of such date
except to the extent that such representations and warranties expressly relate solely to an earlier date (in
which case such representations and warranties shall have been true and correct in all material respects
(except in the case of a representation or warranty qualified by materiality, in which case such
representation or warranty was true and correct in all respects) on and as of such earlier date) and except
for changes in factual circumstances not prohibited under the Loan Documents. In addition, the
Borrower certifies to the Administrative Agent and the Lenders that all conditions to the making of the
requested Revolving Loans contained in Article V. of the Credit Agreement will have been satisfied (or
waived in accordance with the applicable provisions of the Loan Documents) at the time such Revolving
Loans are made.
[Signatures on Following Page]
C-3
IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Borrowing as of the date first written above.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
D-1
EXHIBIT D
FORM OF NOTICE OF CONTINUATION
, 20
Xxxxx Fargo Bank, National Association, as
Administrative Agent
Attn:
Ladies and Gentlemen:
Reference is made to that certain Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo
Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties
thereto. Capitalized terms used herein, and not otherwise defined herein, have their respective meanings
given them in the Credit Agreement.
Pursuant to Section 2.9. of the Credit Agreement, the Borrower hereby requests a Continuation
of LIBOR Loans under the Credit Agreement, and in connection with such a request, sets forth below the
information relating to such Continuation as required by such Section of the Credit Agreement:
1. The proposed date of such Continuation is , 20 .
2. The Class of Loans subject to such Continuation is:
Revolving Loans
Term Loans
3. The aggregate principal amount of the Loans subject to the requested Continuation is
$ and the portion of such principal amount subject to such
Continuation is $ .
4. The current Interest Period for each of the Loans subject to such Continuation ends on
, 20 .
5. The duration of the new Interest Period for each of such Loans or portion thereof subject
to such Continuation is:
[Check one box only]
one month
three months
six months
D-2
6. The portion of the principal amount of such Loans subject to a Specified Derivatives
Contract is $ .
7. The Specified Derivatives Contract(s) to which such Loans is/are subject:
The Borrower hereby certifies to the Administrative Agent and the Lenders that as of the date
hereof, as of the proposed date of the requested Continuation, and after immediately giving effect thereto,
no Event of Default exists or will exist.
If notice of the requested Continuation was given previously by telephone, this notice is to be
considered the written confirmation of such telephone notice required by Section 2.9. of the Credit
Agreement.
[Signatures on Following Page]
D-3
IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Continuation as of the date first written above.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
E-1
EXHIBIT E
FORM OF NOTICE OF CONVERSION
, 20
Xxxxx Fargo Bank, National Association, as
Administrative Agent
Attn:
Ladies and Gentlemen:
Reference is made to that certain Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo
Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties
thereto. Capitalized terms used herein, and not otherwise defined herein, have their respective meanings
given them in the Credit Agreement.
Pursuant to Section 2.10. of the Credit Agreement, the Borrower hereby requests a Conversion of
a borrowing of Loans of one Type into Loans of another Type under the Credit Agreement, and in
connection with such a request, sets forth below the information relating to such Conversion as required
by such Section of the Credit Agreement:
1. The proposed date of such Conversion is , 20 .
2. The Class of Loans to be converted is:
Revolving Loans
Term Loans
3. The Type of Loans to be Converted pursuant hereto is currently:
[Check one box only]
Base Rate Loan
LIBOR Loan
4. The aggregate principal amount of the Loans subject to the requested Conversion is
$ and the portion of such principal amount subject to such
Conversion is $ .
E-2
5. The amount of such Loans to be so Converted is to be converted into Loans of the
following Type:
[Check one box only]
Base Rate Loan
LIBOR Loan, with an initial Interest Period for a duration of:
[Check one box only]
one month
three months
six months
6. The amount of such Loans to be so Converted into a LIBOR Loan subject to a Specified
Derivatives Contract is $ .
7. The Specified Derivatives Contract(s) to which such Loans to be so Converted into a
LIBOR Loan is/are subject:
The Borrower hereby certifies to the Administrative Agent and the Lenders that as of the date
hereof and, as of the proposed date of the requested Conversion, and immediately after giving effect
thereto, no Default or Event of Default exists or will exist.
If notice of the requested Conversion was given previously by telephone, this notice is to be
considered the written confirmation of such telephone notice required by Section 2.10. of the Credit
Agreement.
[Signatures on Following Page]
E-3
IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Conversion as of the date first written above.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
F-1
EXHIBIT F
FORM OF NOTICE OF SWINGLINE BORROWING
, 20
Xxxxx Fargo Bank, National Association, as
Administrative Agent
Attn:
[INSERT APPLICABLE SWINGLINE LENDER]
Attn:
Ladies and Gentlemen:
Reference is made to that certain Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo
Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties
thereto. Capitalized terms used herein, and not otherwise defined herein, have their respective meanings
given them in the Credit Agreement.
1. Pursuant to Section 2.4.(b) of the Credit Agreement, the Borrower hereby requests that
, as Swingline Lender, make a Swingline Loan to the
Borrower in an amount equal to $ .
2. The Borrower requests that such Swingline Loan be made available to the Borrower on
, 20 .
The Borrower hereby certifies to the Administrative Agent, the Swingline Lender referred to
above and the Lenders that as of the date hereof, as of the date of the making of the requested Swingline
Loan, and immediately after making such Swingline Loan, (a) no Default or Event of Default exists or
shall exist, and none of the limits specified in Section 2.15. would be violated; and (b) the representations
and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents
to which any of them is a party, are and shall be true and correct in all material respects (except in the
case of a representation or warranty qualified by materiality, in which case such representation or
warranty is and shall be true and correct in all respects) with the same force and effect as if made on and
as of such date except to the extent that such representations and warranties expressly relate solely to an
earlier date (in which case such representations and warranties shall have been true and accurate in all
material respects (except in the case of a representation or warranty qualified by materiality, in which
case such representation or warranty was true and correct in all respects) on and as of such earlier date)
and except for changes in factual circumstances or transactions, in either event not prohibited under the
Credit Agreement. In addition, the Borrower certifies to the Administrative Agent and the Lenders that
F-2
all conditions to the making of the requested Swingline Loan contained in Article V. of the Credit
Agreement will have been satisfied at the time such Swingline Loan is made.
If notice of the requested borrowing of this Swingline Loan was previously given by telephone,
this notice is to be considered the written confirmation of such telephone notice required by
Section 2.4.(b) of the Credit Agreement.
[Signatures on Following Page]
F-3
IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Swingline Borrowing as of the date first written above.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
G-1
EXHIBIT G
FORM OF SECOND AMENDED AND RESTATED REVOLVING NOTE
$ , 20
FOR VALUE RECEIVED, the undersigned, MHC OPERATING LIMITED PARTNERSHIP, a
limited partnership formed under the laws of the State of Illinois (the “Borrower”) hereby
unconditionally promises to pay to or registered assigns (the
“Lender”), in care of Xxxxx Fargo Bank, National Association, as Administrative Agent (the
“Administrative Agent”), to its address as Xxxxx Fargo Bank, National Association, 000 Xxxxx 0xx Xx., 0xx
Xxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000, or at such other address as may be specified in writing by the
Administrative Agent to the Borrower, the principal sum of AND /100
DOLLARS ($ )(or such lesser amount as shall equal the aggregate unpaid principal
amount of Revolving Loans made by the Lender to the Borrower under the Credit Agreement (defined
below)), on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest
on the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Credit
Agreement.
This Note is one of the “Revolving Notes” referred to in the Second Amended and Restated
Credit Agreement dated as of October 27, 2017 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), by and among the Borrower, Equity LifeStyle
Properties, Inc. (the “Parent”), the financial institutions party thereto and their assignees under
Section 12.5. thereof, the Administrative Agent, and the other parties thereto, and is subject to, and
entitled to, all provisions and benefits thereof. Capitalized terms used herein and not defined herein shall
have the respective meanings given to such terms in the Credit Agreement.
The Credit Agreement, among other things, (a) provides for the making of Loans evidenced by
this Note by the Lender to the Borrower from time to time in an aggregate amount not to exceed at any
time the outstanding Dollar amount first above mentioned, (b) permits the prepayment of the Loans
evidenced by this Note by the Borrower subject to certain terms and conditions and (c) provides for the
acceleration of the maturity of the Loans evidenced by this Note upon the occurrence of certain specified
events.
Except as permitted by Section 12.5. of the Credit Agreement, this Note may not be assigned by
the Lender to any other Person.
[This Note is being issued in replacement of that certain Amended and Restated Revolving Note
dated as of July 17, 2014, executed and delivered by Borrower party thereto and payable to the order of
the Lender, as amended and in effect immediately prior to the date hereof. THIS NOTE IS NOT
INTENDED TO BE, AND SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE
OBLIGATIONS OWING UNDER OR IN CONNECTION WITH SUCH OTHER REVOLVING
NOTE.]
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND
TO BE FULLY PERFORMED, IN SUCH STATE.
G-2
The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to
exercise, and no delay in exercising any rights hereunder on the part of the holder hereof shall operate as
a waiver of such rights.
Time is of the essence for this Note.
[Signatures on Following Page]
G-3
IN WITNESS WHEREOF, the undersigned has executed and delivered this Revolving Note
under seal as of the date written above.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
H-1
EXHIBIT H
FORM OF SECOND AMENDED AND RESTATED SWINGLINE NOTE
$ , 20
FOR VALUE RECEIVED, the undersigned, MHC OPERATING LIMITED PARTNERSHIP, a
limited partnership formed under the laws of the State of Illinois (the “Borrower”), hereby promises to
pay to [XXXXX FARGO BANK, NATIONAL ASSOCIATION] [BANK OF AMERICA, N.A.] or its
registered assigns (the “Swingline Lender”) in the care of Xxxxx Fargo Bank, National Association, as
Administrative Agent, to its address at Xxxxx Fargo Bank, National Association, 000 Xxxxx 0xx Xx., 0xx
Xxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000, or at such other address as may be specified in writing by the
Swingline Lender to the Borrower, the principal sum of TWENTY-FIVE MILLION AND NO/100
DOLLARS ($25,000,000.00) (or such lesser amount as shall equal the aggregate unpaid principal amount
of Swingline Loans made by the Swingline Lender to the Borrower under the Credit Agreement (defined
below)), on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest
on the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Credit
Agreement.
This Note is the “Swingline Note” referred to in the Second Amended and Restated Credit
Agreement dated as of October 27, 2017 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), by and among the Borrower, Equity LifeStyle Properties,
Inc. (the “Parent”), the financial institutions party thereto and their assignees under Section 12.5. thereof,
the Administrative Agent, and the other parties thereto, and evidences Swingline Loans made to the
Borrower thereunder. Terms used but not otherwise defined in this Note have the respective meanings
assigned to them in the Credit Agreement. The Credit Agreement provides for the acceleration of the
maturity of this Note upon the occurrence of certain events and for prepayments of Swingline Loans
upon the terms and conditions specified therein.
[This Note is being issued in replacement of that certain Amended and Restated Swingline Note
dated as of July 17, 2014, executed and delivered by Borrower party thereto and payable to the order of
the Xxxxx Fargo Bank, National Association, as Swingline Lender, as amended and in effect immediately
prior to the date hereof. THIS NOTE IS NOT INTENDED TO BE, AND SHALL NOT BE
CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING UNDER OR IN
CONNECTION WITH SUCH OTHER SWINGLINE NOTE.]
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND
TO BE FULLY PERFORMED, IN SUCH STATE.
The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to
exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall operate as
a waiver of such rights.
Time is of the essence for this Note.
[Signatures on Following Page]
H-2
IN WITNESS WHEREOF, the undersigned has executed and delivered this Swingline Note
under seal as of the date first written above.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
I-1
EXHIBIT I
FORM OF DISBURSEMENT INSTRUCTION AGREEMENT
Borrower: MHC Operating Limited Partnership
Administrative Agent: Xxxxx Fargo Bank, National Association
Loan: Loan number 6023ZMC made pursuant to that certain “Second Amended and Restated Credit Agreement”
dated as of October 27, 2017 between Borrower, Equity LifeStyle Properties, Inc., each of the financial institutions
initially a signatory thereto together with their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo
Bank, National Association, as the Administrative Agent for the Lenders (the “Administrative Agent”) and the other
parties thereto, as amended from time to time (the “Credit Agreement”)
Effective Date: October 27, 2017
Check applicable box:
New – This is the first Disbursement Instruction Agreement submitted in connection with the Loan.
Replace Previous Agreement – This is a replacement Disbursement Instruction Agreement. All prior
instructions submitted in connection with this Loan are cancelled as of the Effective Date set forth above.
This Agreement must be signed by the Borrower and is used for the following purposes:
(1) to designate an individual or individuals with authority to request disbursements of Loan proceeds, whether
at the time of Loan closing/origination or thereafter;
(2) to designate an individual or individuals with authority to request disbursements of funds from Restricted
Accounts (as defined in the Terms and Conditions attached to this Agreement), if applicable; and
(3) to provide Administrative Agent with specific instructions for wiring or transferring funds on Borrower’s
behalf.
Any of the disbursements, wires or transfers described above are referred to herein as a “Disbursement.”
Specific dollar amounts for Disbursements must be provided to Administrative Agent at the time of the applicable
Disbursement in the form of a signed closing statement, an email instruction or other written communication, or
telephonic request pursuant to Section 2.4(b) of the Credit Agreement (each, a “Disbursement Request”) from an
applicable Authorized Representative (as defined in the Terms and Conditions attached to this Agreement).
A new Disbursement Instruction Agreement must be completed and signed by the Borrower if (i) all or any portion
of a Disbursement is to be transferred to an account or an entity not described in this Agreement or (ii) Borrower
wishes to add or remove any Authorized Representatives.
See the Additional Terms and Conditions attached hereto for additional information and for definitions of
certain capitalized terms used in this Agreement.
I-2
Disbursement of Loan Proceeds at Origination/Closing
Closing Disbursement Authorizers: Administrative Agent is authorized to accept one or more Disbursement
Requests from any of the individuals named below (each, a “Closing Disbursement Authorizer”) to disburse Loan
proceeds on or about the date of the Loan origination/closing and to initiate Disbursements in connection therewith
(each, a “Closing Disbursement”):
Individual’s Name Title
1.
2.
3.
Describe Restrictions, if any, on the authority of the Closing Disbursement Authorizers (dollar amount limits,
wire/deposit destinations, etc.):
DESCRIBE APPLICABLE RESTRICTIONS OR INDICATE “N/A”
If there are no restrictions described here, any Closing Disbursement Authorizer may submit a Disbursement
Request for all available Loan proceeds.
DELETE FOLLOWING SECTION IF NO WIRE TRANSFERS AT ORIGINATION/CLOSING
Permitted Wire Transfers: Disbursement Requests for the Closing Disbursement(s) to be made by wire transfer must
specify the amount and applicable Receiving Party. Each Receiving Party included in any such Disbursement
Request must be listed below. Administrative Agent is authorized to use the wire instructions that have been
provided directly to Administrative Agent by the Receiving Party or Borrower and attached as the Closing Exhibit.
All wire instructions must be in the format specified on the Closing Exhibit.
Names of Receiving Parties for the Closing Disbursement(s) (may include as many parties as needed; wire
instructions for each Receiving Party must be attached as the Closing Exhibit)
1.
2.
3.
DELETE FOLLOWING SECTION IF NO DEPOSITS INTO WFB ACCOUNTS AT ORIGINATION/CLOSING
Direct Deposit: Disbursement Requests for the Closing Disbursement(s) to be deposited into an account at Xxxxx
Fargo Bank, N.A. must specify the amount and applicable account. Each account included in any such Disbursement
Request must be listed below.
Name on Deposit Account:
Xxxxx Fargo Bank, N.A. Deposit Account Number:
Further Credit Information/Instructions:
I-3
Disbursements of Loan Proceeds Subsequent to Loan Closing/Origination
Subsequent Disbursement Authorizers: Administrative Agent is authorized to accept one or more Disbursement
Requests from any of the individuals named below (each, a “Subsequent Disbursement Authorizer”) to disburse
Loan proceeds after the date of the Loan origination/closing and to initiate Disbursements in connection therewith
(each, a “Subsequent Disbursement”):
Individual’s Name Title
1.
2.
3.
Describe Restrictions, if any, on the authority of the Subsequent Disbursement Authorizers (dollar amount limits,
wire/deposit destinations, etc.):
DESCRIBE APPLICABLE RESTRICTIONS OR INDICATE “N/A”
If there are no restrictions described here, any Subsequent Disbursement Authorizer may submit a
Disbursement Request for all available Loan proceeds.
DELETE FOLLOWING SECTION IF NO SUBSEQUENT WIRE TRANSFERS ANTICIPATED
Permitted Wire Transfers: Disbursement Requests for Subsequent Disbursements to be made by wire transfer must
specify the amount and applicable Receiving Party. Each Receiving Party included in any such Disbursement
Request must be listed below. Administrative Agent is authorized to use the wire instructions that have been
provided directly to Administrative Agent by the Receiving Party or Borrower and attached as the Subsequent
Disbursement Exhibit. All wire instructions must be in the format specified on the Subsequent Disbursement
Exhibit.
Names of Receiving Parties for Subsequent Disbursements (may include as many parties as needed; wire
instructions for each Receiving Party must be attached as the Subsequent Disbursement Exhibit)
1.
2.
3.
DELETE FOLLOWING SECTION IF NO SUBSEQUENT DEPOSITS INTO WFB ACCOUNTS ANTICIPATED
Direct Deposit: Disbursement Requests for Subsequent Disbursements to be deposited into an account at Xxxxx
Fargo Bank, N.A. must specify the amount and applicable account. Each account included in any such Disbursement
Request must be listed below.
Name on Deposit Account:
Xxxxx Fargo Bank, N.A. Deposit Account Number:
Further Credit Information/Instructions:
I-4
Borrower acknowledges that all of the information in this Agreement is correct and agrees to the terms and
conditions set forth herein and in the Additional Terms and Conditions on the following page.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
I-5
Additional Terms and Conditions to the Disbursement Instruction Agreement
Definitions. The following capitalized terms shall have the meanings set forth below:
“Authorized Representative” means any or all of the Closing Disbursement Authorizers, Subsequent Disbursement Authorizers and
Restricted Account Disbursement Authorizers, as applicable.
“Receiving Bank” means the financial institution where a Receiving Party maintains its account.
“Receiving Party” means the ultimate recipient of funds pursuant to a Disbursement Request.
“Restricted Account” means an account at Xxxxx Fargo Bank, N.A. associated with the Loan to which Borrower’s access is
restricted.
Capitalized terms used in these Additional Terms and Conditions to Disbursement Instruction Agreement and not otherwise defined herein shall
have the meanings given to such terms in the body of the Agreement.
Disbursement Requests. Except as expressly provided in the Credit Agreement, Administrative Agent must receive Disbursement Requests in
writing. Disbursement Requests will only be accepted from the applicable Authorized Representatives designated in the Disbursement
Instruction Agreement. Disbursement Requests will be processed subject to satisfactory completion of Administrative Agent’s customer
verification procedures. Administrative Agent is only responsible for making a good faith effort to execute each Disbursement Request and may
use agents of its choice to execute Disbursement Requests. Funds disbursed pursuant to a Disbursement Request may be transmitted directly to
the Receiving Bank, or indirectly to the Receiving Bank through another bank, government agency, or other third party that Administrative
Agent considers to be reasonable. Administrative Agent will, in its sole discretion, determine the funds transfer system and the means by which
each Disbursement will be made. Administrative Agent may delay or refuse to accept a Disbursement Request if the Disbursement would: (i)
violate the terms of this Agreement; (ii) require use of a bank unacceptable to Administrative Agent or Lenders or prohibited by government
authority; (iii) cause Administrative Agent or Lenders to violate any Federal Reserve or other regulatory risk control program or guideline; or (iv)
otherwise cause Administrative Agent or Lenders to violate any applicable law or regulation.
Limitation of Liability. Administrative Agent, any Issuing Bank, any Swingline Lender and Lenders shall not be liable to Borrower or any other
parties for: (i) errors, acts or failures to act of others, including other entities, banks, communications carriers or clearinghouses, through which
Borrower’s requested Disbursements may be made or information received or transmitted, and no such entity shall be deemed an agent of the
Administrative Agent, any Issuing Bank, any Swingline Lender or any Lender; (ii) any loss, liability or delay caused by fires, earthquakes, wars,
civil disturbances, power surges or failures, acts of government, labor disputes, failures in communications networks, legal constraints or other
events beyond Administrative Agent’s, any Issuing Banks’s, any Swingline Lender’s or any Lender’s control; or (iii) any special, consequential,
indirect or punitive damages, whether or not (A) any claim for these damages is based on tort or contract or (B) Administrative Agent, any
Issuing Bank, any Swingline Lender any Lender or Borrower knew or should have known the likelihood of these damages in any situation.
Neither Administrative Agent, any Issuing Bank, any Swingline Lender nor any Lender makes any representations or warranties other than those
expressly made in this Agreement. IN NO EVENT WILL ADMINISTRATIVE AGENT, ANY ISSUING BANK, ANY SWINGLINE LENDER
OR ANY LENDER BE LIABLE FOR DAMAGES ARISING DIRECTLY OR INDIRECTLY IF A DISBURSEMENT REQUEST IS
EXECUTED BY ADMINISTRATIVE AGENT IN GOOD FAITH AN IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.
Reliance on Information Provided. Administrative Agent is authorized to rely on the information provided by Borrower or any Authorized
Representative in or in accordance with this Agreement when executing a Disbursement Request until Administrative Agent has received a new
Agreement signed by Borrower. Borrower agrees to be bound by any Disbursement Request: (i) authorized or transmitted by Borrower; or (ii)
made in Borrower’s name and accepted by Administrative Agent in good faith and in compliance with this Agreement, even if not properly
authorized by Borrower. Administrative Agent may rely solely (i) on the account number of the Receiving Party, rather than the Receiving
Party’s name, and (ii) on the bank routing number of the Receiving Bank, rather than the Receiving Bank’s name, in executing a Disbursement
Request. Administrative Agent is not obligated or required in any way to take any actions to detect errors in information provided by Borrower
or an Authorized Representative. If Administrative Agent takes any actions in an attempt to detect errors in the transmission or content of
transfers or requests or takes any actions in an attempt to detect unauthorized Disbursement Requests, Borrower agrees that, no matter how many
times Administrative Agent takes these actions, Administrative Agent will not in any situation be liable for failing to take or correctly perform
these actions in the future, and such actions shall not become any part of the Disbursement procedures authorized herein, in the Loan
Documents, or in any agreement between Administrative Agent and Borrower.
International Disbursements. A Disbursement Request expressed in US Dollars will be sent in US Dollars, even if the Receiving Party or
Receiving Bank is located outside the United States. Administrative Agent will not execute Disbursement Requests expressed in foreign
currency unless permitted by the Credit Agreement.
Errors. Borrower agrees to notify Administrative Agent of any errors in the Disbursement of any funds or of any unauthorized or improperly
authorized Disbursement Requests within fourteen (14) days after Administrative Agent’s confirmation to Borrower of such Disbursement.
Finality of Disbursement Requests. Disbursement Requests will be final and will not be subject to stop payment or recall; provided that
Administrative Agent may, at Borrower’s request, make an effort to effect a stop payment or recall but will incur no liability whatsoever for its
failure or inability to do so.
I-6
CLOSING EXHIBIT
WIRE INSTRUCTIONS
ADMINISTRATIVE AGENT TO ATTACH WIRE INSTRUCTIONS FROM RECEIVING PARTIES
All wire instructions must contain the following information:
Transfer/Deposit Funds to (Receiving Party Account Name)
Receiving Party Deposit Account Number
Receiving Bank Name, City and State
Receiving Bank Routing (ABA) Number
Further identifying information, if applicable (title escrow number, borrower name, loan number, etc.)
I-7
SUBSEQUENT DISBURSEMENT EXHIBIT
WIRE INSTRUCTIONS
ADMINISTRATIVE AGENT TO ATTACH WIRE INSTRUCTIONS FROM RECEIVING PARTIES
All wire instructions must contain the following information:
Transfer/Deposit Funds to (Receiving Party Account Name)
Receiving Party Deposit Account Number
Receiving Bank Name, City and State
Receiving Bank Routing (ABA) Number
Further identifying information, if applicable (title escrow number, borrower name, loan number, etc.)
J-1
EXHIBIT J
FORM OF OPINION OF COUNSELTO THE BORROWER AND GUARANTORS
[Attached]
K-1
EXHIBIT K
FORM OF COMPLIANCE CERTIFICATE
, 20
Xxxxx Fargo Bank, National Association
00 Xxxxx Xxxxxx Xxxxx, 00xx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxx
Telecopy: (000) 000-0000
Telephone: (000) 000-0000
Each of the Lenders Party to the Credit Agreement referred to below
Ladies and Gentlemen:
Reference is made to that certain Second Amended and Restated Credit Agreement dated as
of October 27, 2017 (as amended, restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”),
Equity LifeStyle Properties, Inc. (the “Parent”), the financial institutions party thereto and their
assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo Bank, National Association, as
Administrative Agent (the “Administrative Agent”), and the other parties thereto. Capitalized terms
used herein, and not otherwise defined herein, have their respective meanings given to them in the
Credit Agreement.
Pursuant to Section 8.3. of the Credit Agreement, the undersigned hereby certifies, in such
person’s corporate and not individual capacity, to the Administrative Agent, any Issuing Bank and the
Lenders that:
1. The undersigned is the [Chief Executive Officer][Chief Financial Officer][Vice
President-Treasurer] of the Parent.
2. The undersigned has examined the books and records of the Parent and the Borrower
and has conducted such other examinations and investigations as are reasonably necessary to provide
this Compliance Certificate.
3. As of the date of this Compliance Certificate, to the best of my knowledge,
information and belief after due inquiry, no Default or Event of Default exists and the Parent, the
Borrower and their respective Subsidiaries are in compliance with all applicable covenants under the
Credit Agreement. [if such is not the case, specify such Default, Event of Default or covenant non-
compliance and its nature, when it occurred and whether it is continuing and the steps being taken by
the Borrower with respect to such event, condition or failure].
4. Attached hereto as Schedule 1 are reasonably detailed calculations establishing
whether or not the Parent, the Borrower and their respective Subsidiaries were in compliance with the
covenants contained in Sections 9.1. of the Credit Agreement.
K-2
5. Attached hereto as Schedule 2 is a report setting forth a statement of Funds From
Operations as of the last day of the [fiscal [quarter/year]].
6. Attached hereto as Schedule 3 is a report of newly acquired Properties of the Parent,
the Borrower and each of the other Subsidiaries, including their Net Operating Income of such
Property for the trailing four (4) fiscal quarters ending , the cost of acquisition of such
Property and the amount, if any, of Indebtedness secured by a Lien on such Property
7. As of the date hereof the aggregate outstanding principal amount of all outstanding
Revolving Loans, together with the aggregate principal amount of all outstanding Swingline Loans are
less than or equal to the aggregate amount of Revolving Commitments at such time.
8. The representations and warranties of the Borrower and the other Loan Parties
contained in the Credit Agreement and the other Loan Documents to which any is a party, are true and
correct in all material respects on and as of the date hereof (except in the case of a representation or
warranty qualified by materiality, in which case such representation or warranty is and shall be true
and correct in all respects), except to the extent that representations and warranties expressly relate
solely to an earlier date (in which case such representations and warranties shall have been true and
correct in all material respects (except in the case of a representation or warranty qualified by
materiality, in which case such representation or warranty was true and correct in all respects) on and
as of such earlier date) and except for changes in factual circumstances not prohibited under the
Credit Agreement or the other Loan Documents.
IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate on and
as of the date first written above.
[INSERT NAME], as [Chief Financial Officer][Chief
Executive Officer][Vice President-Treasurer] of Equity
LifeStyle Properties, Inc.
L-1
EXHIBIT L
FORM OF SECOND AMENDED AND RESTATED TERM NOTE
$ , 20
FOR VALUE RECEIVED, the undersigned, MHC OPERATING LIMITED PARTNERSHIP, a
limited partnership formed under the laws of the State of Illinois (the “Borrower”) hereby
unconditionally promises to pay to or registered assigns (the
“Lender”), in care of Xxxxx Fargo Bank, National Association, as Administrative Agent (the
“Administrative Agent”), to its address at Xxxxx Fargo Bank, National Association, 000 Xxxxx 0xx Xx., 0xx
Xxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000, or at such other address as may be specified in writing by the
Administrative Agent to the Borrower, the principal sum of AND /100
DOLLARS ($ )(or such lesser amount as shall equal the aggregate unpaid principal
amount of the Term Loan made by the Lender to the Borrower under the Credit Agreement (defined
below)), on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest
on the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Credit
Agreement.
This Note is one of the “Term Notes” referred to in the Second Amended and Restated Credit
Agreement dated as of October 27, 2017 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), by and among the Borrower, Equity LifeStyle Properties,
Inc. (the “Parent”), the financial institutions party thereto and their assignees under Section 12.5. thereof,
the Administrative Agent, and the other parties thereto, and is subject to, and entitled to, all provisions
and benefits thereof. Capitalized terms used herein and not defined herein shall have the respective
meanings given to such terms in the Credit Agreement.
The Credit Agreement, among other things, (a) permits the prepayment of the Loans evidenced
by this Note by the Borrower subject to certain terms and conditions and (b) provides for the acceleration
of the maturity of the Loans evidenced by this Term Note upon the occurrence of certain specified
events.
Except as permitted by Section 12.5. of the Credit Agreement, this Note may not be assigned by
the Lender to any other Person.
[This Note is being issued in replacement of that certain Amended and Restated Term Loan Note
dated as of July 17, 2014, executed and delivered by Borrower party thereto and payable to the order of
the Lender, as amended and in effect immediately prior to the date hereof. THIS NOTE IS NOT
INTENDED TO BE, AND SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE
OBLIGATIONS OWING UNDER OR IN CONNECTION WITH SUCH OTHER TERM NOTE.]
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND
TO BE FULLY PERFORMED, IN SUCH STATE.
The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to
exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall operate as
a waiver of such rights.
L-2
Time is of the essence for this Note.
[Signatures on Following Page]
L-3
IN WITNESS WHEREOF, the undersigned has executed and delivered this Term Note under
seal as of the date written above.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
M-1
EXHIBIT M
FORM OF NOTICE OF TERM BORROWING
, 20
Xxxxx Fargo Bank, National Association, as
Administrative Agent
Attn:
Ladies and Gentlemen:
Reference is made to that certain Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo
Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties
thereto. Capitalized terms used herein, and not otherwise defined herein, have their respective meanings
given them in the Credit Agreement.
1. Pursuant to Section 2.16 of the Credit Agreement, the Borrower hereby requests that the
Term Loan Lenders make Additional Term Loans to the Borrower in an aggregate
amount equal to $ .
2. The Borrower requests that such Additional Term Loans be made available to the
Borrower on , 20 .
3. The proceeds of such Additional Term Loans will be used for
.
4. The Borrower hereby requests that such Additional Term Loans be of the following
Type:
[Check one box only]
Base Rate Loans
LIBOR Loans, with an initial Interest Period for a duration of:
[Check one box only]
one month
three months
six months
The Borrower hereby certifies to the Administrative Agent and the Lenders that as of the date
hereof and, as of the date of the making of the requested Additional Term Loans, and immediately after
giving effect thereto, (a) no Default or Event of Default exists or shall exist; and (b) the representations
and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents
to which any of them is a party are and shall be true and correct in all material respects (except in the
M-2
case of a representation or warranty qualified by materiality, in which case such representation or
warranty is and shall be true and correct in all respects) with the same force and effect as if made on and
as of such date except to the extent that such representations and warranties expressly relate solely to an
earlier date (in which case such representations and warranties shall have been true and correct in all
material respects (except in the case of a representation or warranty qualified by materiality, in which
case such representation or warranty was true and correct in all respects) on and as of such earlier date)
and except for changes in factual circumstances not prohibited under the Loan Documents. In addition,
the Borrower certifies to the Administrative Agent and the Lenders that all conditions to the making of
the requested Additional Term Loans contained in Article V. of the Credit Agreement will have been
satisfied (or waived in accordance with the applicable provisions of the Loan Documents) at the time
such Additional Term Loans are made.
[Signatures on Following Page]
M-3
IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Borrowing as of the date first written above.
MHC OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity LifeStyle Properties, Inc., a Maryland
corporation, its general partner
By:
Name:
Title:
N-1-1
EXHIBIT N-1
FORM OF U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), Equity LifeStyle
Properties, Inc. (the “Parent”), each of the financial institutions initially a signatory thereto together with
their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo Bank, National Association, as
the Administrative Agent (the “Administrative Agent”), and the other parties thereto.
Pursuant to the provisions of Section 3.10. of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s)
evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the
meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower
within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation
related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with a certificate of
its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E. By executing this certificate, the
undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall
promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all
times furnished the Borrower and the Administrative Agent with a properly completed and currently
effective certificate in either the calendar year in which each payment is to be made to the undersigned,
or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.
[NAME OF LENDER]
By:
Name:
Title:
Date: , 20
N-2-1
EXHIBIT N-2
FORM OF U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), Equity LifeStyle
Properties, Inc. (the “Parent”), each of the financial institutions initially a signatory thereto together with
their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo Bank, National Association, as
the Administrative Agent (the “Administrative Agent”), and the other parties thereto.
Pursuant to the provisions of Section 3.10. of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is
providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code,
(iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the
Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in
Section 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person
status on IRS Form W-8BEN or W-8BEN-E. By executing this certificate, the undersigned agrees that
(1) if the information provided on this certificate changes, the undersigned shall promptly so inform such
Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly
completed and currently effective certificate in either the calendar year in which each payment is to be
made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.
[NAME OF PARTICIPANT]
By:
Name:
Title:
Date: , 20
N-3-1
EXHIBIT N-3
FORM OF U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), Equity LifeStyle
Properties, Inc. (the “Parent”), each of the financial institutions initially a signatory thereto together with
their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo Bank, National Association, as
the Administrative Agent (the “Administrative Agent”), and the other parties thereto.
Pursuant to the provisions of Section 3.10. of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record owner of the participation in respect of which it is providing this
certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation,
(iii) with respect to such participation, neither the undersigned nor any of its direct or indirect
partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary
course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its
direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of
Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled
foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by
one of the following forms from each of its partners/members that is claiming the portfolio interest
exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an
IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is
claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if
the information provided on this certificate changes, the undersigned shall promptly so inform such
Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed
and currently effective certificate in either the calendar year in which each payment is to be made to the
undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.
[NAME OF PARTICIPANT]
By:
Name:
Title:
Date: , 20
N-4-1
EXHIBIT N-4
FORM OF U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Second Amended and Restated Credit Agreement dated as of
October 27, 2017 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among MHC Operating Limited Partnership (the “Borrower”), Equity LifeStyle
Properties, Inc. (the “Parent”), each of the financial institutions initially a signatory thereto together with
their assignees under Section 12.5. thereof (the “Lenders”), Xxxxx Fargo Bank, National Association, as
the Administrative Agent (the “Administrative Agent”), and the other parties thereto.
Pursuant to the provisions of Section 3.10. of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such
Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are
the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with
respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither
the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a
loan agreement entered into in the ordinary course of its trade or business within the meaning of
Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent
shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its
direct or indirect partners/members is a controlled foreign corporation related to the Borrower as
described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-
8IMY accompanied by one of the following forms from each of its partners/members that is claiming the
portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY
accompanied by an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial
owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned
agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so
inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times
furnished the Borrower and the Administrative Agent with a properly completed and currently effective
certificate in either the calendar year in which each payment is to be made to the undersigned, or in either
of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.
[NAME OF LENDER]
By:
Name:
Title:
Date: , 20
