Exhibit 10.1

EXECUTION COPY

 

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of August 22, 2006

 

by and among

 

HOSPITALITY PROPERTIES TRUST,

as Borrower

 

Each of

 

WACHOVIA CAPITAL MARKETS, LLC,

and

ROYAL BANK OF SCOTLAND PLC,

as Joint Lead Arrangers

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

 

THE ROYAL BANK OF SCOTLAND PLC,

as Syndication Agent,

 

EACH OF

CALYON NEW YORK BRANCH,

ROYAL BANK OF CANADA,

and

SUMITOMO MITSUI BANKING CORPORATION

as Documentation Agents,

 

SOCIETE GENERALE,

as Senior Managing Agent,

 

EACH OF

MIZUHO CORPORATE BANK, LTD.,

PNC BANK, NATIONAL ASSOCIATION,

UNITED OVERSEAS BANK LIMITED,

U.S. BANK NATIONAL ASSOCIATION,

and

BANK OF MONTREAL

as Managing Agents

and

 

THE FINANCIAL INSTITUTIONS INITIALLY SIGNATORY HERETO

AND THEIR ASSIGNEES PURSUANT TO SECTION 12.5,

as Lenders

 

 

 

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FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”)
dated as of August 22, 2006 by and among HOSPITALITY PROPERTIES TRUST (the
“Borrower”), each of the financial institutions a party hereto (the “Lenders”),
and WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent (the “Agent”).

 

WHEREAS, the Borrower, the Lenders and the Agent have entered into that certain
Amended and Restated Credit Agreement dated as of May 23, 2005 (as in effect
immediately prior to the date hereof, the “Credit Agreement”); and

 

WHEREAS, the Borrower, the Lenders and the Agent desire to amend certain
provisions of the Credit Agreement 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
hereby agree as follows:

 

Section 1. Specific Amendments to Credit Agreement. The parties hereto agree
that the Credit Agreement is amended as follows:

 

(a)          The Credit Agreement is amended by restating in full the
definitions of “Applicable Margin” and “Termination Date” contained in Section
1.1. thereof as follows:

 

“Applicable Margin” means the percentage per annum determined, at any time,
based on the range into which the Borrower’s Credit Rating then falls, in
accordance with the levels in the table set forth in Schedule 1.1.(a) (each a
“Level”). Any change in the Borrower’s Credit Rating which would cause it to
move to a different Level in such table shall effect a change in the Applicable
Margin on the Business Day on which such change occurs. During any period in
which the Borrower has received Credit Ratings that are not equivalent, the
Applicable Margin shall be determined by the higher of such two Credit Ratings;
provided, however, that if the ratings of S&P and Moody’s are two pricing Levels
apart, then the Applicable Margin shall be based on the Level that falls between
the Levels that correspond to the ratings of S&P and Moody’s. During any period
for which the Borrower has received a Credit Rating from only one Rating Agency,
then the Applicable Margin shall be determined based on such Credit Rating.
During any period for which the Borrower has not received a Credit Rating from
either Rating Agency, then the Applicable Margin shall be determined based on
Level 5.

 

“Termination Date” means October 24, 2010, or such later date to which the
Termination Date may be extended pursuant to Section 2.15., or such earlier date
on which the Commitments are terminated pursuant to Section 2.11., 10.2. or
otherwise.

 

(b)          The Credit Agreement is amended by restating Section 3.6.(d)
thereof in its entirety as follows:

 

(d)          Extension Fees. If, pursuant to Section 2.15., the Termination Date
is extended, the Borrower agrees to pay to the Agent for the account of each
Lender an extension fee equal to fifteen one-hundredths of one percent (0.15%)
of each such Lender’s Commitment at the time of such extension. Payment of such
fees shall be a condition precedent to the effectiveness of any such extension.

 

 

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(c)          The Credit Agreement is amended by restating Section 9.1.(a)
thereof in its entirety as follows:            

 

(a)          Leverage Ratio. The ratio of (i) Total Indebtedness to (ii) Total
Asset Value, to exceed 0.60 to 1.00 at any time.

 

(d)          The Credit Agreement is amended by restating Section 9.1.(d)
thereof in its entirety as follows:

 

(d)          Unencumbered Leverage Ratio. The ratio of (i) Unencumbered Asset
Value to (ii) Unsecured Indebtedness, to be less than 1.67 to 1.00 at any time.

 

(e)         Schedule 1.1.(a) to the Credit Agreement is hereby superseded and
replaced by Schedule 1.1.(a) attached to this Amendment.

 

(f)           Schedule 1.1.(b) to the Credit Agreement is hereby superseded and
replaced by Schedule 1.1.(b) attached to this Amendment.

 

Section 2. Conditions Precedent. The effectiveness of this Amendment is subject
to receipt by the Agent of each of the following, each in form and substance
satisfactory to the Agent:

 

(a)         A counterpart of this Amendment duly executed by the Borrower and
each of the Lenders;

 

(b)        An Acknowledgment substantially in the form of Exhibit A attached
hereto, executed by each Guarantor (the “Guarantor Acknowledgement”);

 

(c)         An opinion of counsel to the Loan Parties addressed to the Agent and
the Lenders covering such matters as the Agent may reasonably request;

 

(d)        Evidence that all fees due and payable to the Lenders, and all fees
and expenses payable to the Agent, in connection with this Amendment have been
paid; and

 

(e)        Such other documents, instruments and agreements as the Agent may
reasonably request.

***

 

Section 3. Representations. The Borrower represents and warrants to the Agent
and the Lenders that:

 

(a)         Authorization. The Borrower has the right and power, and has taken
all necessary action to authorize it, to execute and deliver this Amendment and
to perform its obligations hereunder and under the Credit Agreement, as amended
by this Amendment, in accordance with their respective terms. This Amendment has
been duly executed and delivered by a duly authorized officer of the Borrower
and each of this Amendment and the Credit Agreement, as amended by this
Amendment, is a legal, valid and binding obligation of the Borrower enforceable
against the Borrower in accordance with its respective terms except as (i) the
enforceability thereof may be limited by bankruptcy, insolvency or similar laws
affecting creditors rights generally and (ii) the availability of equitable
remedies may be limited by equitable principles of general applicability.

 

(b)         Compliance with Laws, etc. The execution and delivery by the
Borrower of this Amendment and the performance by the Borrower of this Amendment
and the Credit Agreement, as

 

 

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amended by this Amendment, in accordance with their respective terms, do not and
will not, by the passage of time, the giving of notice or otherwise: (i) require
any Government Approvals or violate any Applicable Laws (including Environmental
Laws) relating to 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 Borrower or any other Loan Party, or any indenture, agreement or other
instrument to which the Borrower or any other Loan Party is a party or by which
it or any of its 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 the Borrower or any other Loan Party.

 

(c)         No Default. No Default or Event of Default has occurred and is
continuing as of the date hereof or will exist immediately after giving effect
to this Amendment.

 

Section 4. Reaffirmation of Representations by Borrower. The Borrower hereby
repeats and reaffirms all representations and warranties made by the Borrower
and the other Loan Parties to the Agent and the Lenders in the Credit Agreement
and the other Loan Documents to which it is a party on and as of the date hereof
with the same force and effect as if such representations and warranties were
set forth in this Amendment in full.

 

Section 5. Certain References. Each reference to the Credit Agreement in any of
the Loan Documents shall be deemed to be a reference to the Credit Agreement as
amended by this Amendment.

 

Section 6. Expenses. The Borrower shall reimburse the Agent upon demand for all
costs and expenses (including attorneys’ fees) incurred by the Agent in
connection with the preparation, negotiation and execution of this Amendment and
the other agreements and documents executed and delivered in connection
herewith.

 

Section 7. Benefits. This Amendment shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.

 

Section 8. GOVERNING LAW. THIS AMENDMENT 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 9. Effect. Except as expressly herein amended, the terms and conditions
of the Credit Agreement and the other Loan Documents remain in full force and
effect. The amendments contained herein shall be deemed to have prospective
application only, unless otherwise specifically stated herein.

 

Section 10. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original and shall be
binding upon all parties, their successors and assigns.

 

Section 11. Definitions. All capitalized terms not otherwise defined herein are
used herein with the respective definitions given them in the Credit Agreement.

 

[Signatures on Next Page]

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                IN WITNESS WHEREOF, the parties hereto have caused this First
Amendment to Credit Agreement to be executed as of the date first above written.

 

 

THE BORROWER:

 

HOSPITALITY PROPERTIES TRUST

 

By:   /s/ Mark L. Kleifges

Name: Mark L. Kleifges

Title: Treasurer

 

 

 

THE AGENT AND THE LENDERS:

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

individually and as Agent

 

 

By:   /s/ Dean R. Whitehill

Name: Dean R. Whitehill

Title: Vice President

 

 

 

THE ROYAL BANK OF SCOTLAND PLC

 

 

By:   /s/ Timothy J. McNaught

Name: Timothy J. McNaught

Title: Managing Director

 

 

 

ROYAL BANK OF CANADA

 

 

By:   /s/ Dan LePage

Name: Dan LePage

Title: Authorized Signatory

 

 

[Signatures Continued on Next Page]

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

CALYON NEW YORK BRANCH

 

 

By:   /s/ Joseph A. Asciolla

Name: Joseph A. Asciolla

Title: Managing Director

 

 

By:   /s/ Authorized Signatory

Name: Authorized Signatory

Title: Director

 

 

 

SUMITOMO MITSUI BANKING CORPORATION

 

 

By:   /s/ Masakazu Hasegawa

Name: Masakazu Hasegawa

Title: Joint General Manager

 

 

 

SOCIETE GENERALE

 

 

By:   /s/ Michael P. Sassos

Name: Michael P. Sassos

Title: Director

 

 

 

[Signatures Continued on Next Page]

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

PNC BANK, NATIONAL ASSOCIATION

 

 

By:   /s/ Andrew D. Coler

Name: Andrew D. Coler

Title: Senior Vice President

 

 

 

BANK OF MONTREAL

 

 

By:   /s/ Aaron Lanski

Name: Aaron Lanski

Title: Vice President

 

 

 

MIZUHO CORPORATE BANK, LTD.

 

 

By:   /s/ Makoto Murata

Name: Makoto Murata

Title: Deputy General Manager

 

 

UNITED OVERSEAS BANK LIMITED,

NEW YORK AGENCY

 

 

By:   /s/ George Lim

Name: George Lim

Title: FVP & General Manager

 

By:   /s/ Mario Sheng

Name: Mario Sheng

Title: AVP

 

[Signatures Continued on Next Page]

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

U.S. BANK NATIONAL ASSCOCIATION

 

 

By:   /s/ Joann St. Peter

Name: Joann St. Peter

Title: Vice President

 

 

 

BANK OF CHINA, NEW YORK BRANCH

 

 

By:   /s/ Xiaojing Li

Name: Xiaojing Li

Title: General Manager

 

 

 

AMSOUTH BANK

 

 

By:   /s/ Alan Browne

Name: Alan Browne

Title: Senior Vice President

 

 

 

THE BANK OF NEW YORK

 

 

By:   /s/ David V. Fowler

Name: David V. Fowler

Title: Managing Director

 

 

[Signatures Continued on Next Page]

 

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

LAND BANK OF TAIWAN, LOS ANGELES BRANCH

 

 

By:   /s/ Henry Ching Rong Leu

Name: Henry Ching Rong Leu

Title: VP and General Manager

 

 

 

SUNTRUST BANK

 

 

By:   /s/ W. John Wendler

Name: W. John Wendler

Title: Senior Vice President

 

 

BANK OF TAIWAN, LOS ANGELES BRANCH

 

 

By:   /s/ Carol Tsai

Name: Carol Tsai

Title: Vice President and Deputy General Manager

 

 

 

CHANG HWA COMMERCIAL BANK, LTD.

 

 

By:   /s/ Kang Yang

Name: Kang Yang

Title: AVP &AGM

 

 

[Signatures Continued on Next Page]

 

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

THE INTERNATIONAL COMMERCIAL BANK OF CHINA, LOS ANGELES BRANCH

 

 

By:   /s/ Michael C. C. Juang

Name: Michael C. C. Juang

Title: VP and Deputy GM

 

 

THE INTERNATIONAL COMMERCIAL BANK OF CHINA, NEW YORK AGENCY (KNOWN AS “MEGA
INTERNATIONAL COMMERICAL BANK NEW YORK AGENCY”)

 

 

By:   /s/ Nae-Yee Lung

Name: Nae-Yee Lung

Title: EVP and General Manager

 

 

CHIAO TUNG BANK CO., LTD.

NEW YORK AGENCY(KNOWN AS “MEGA INTERNATIONAL COMMERICAL BANK NEW YORK AGENCY”)

 

 

By:       /s/ Nae-Yee Lung

Name: Nae-Yee Lung

Title: EVP and General Manager

 

 

BANK OF AMERICA, N.A.

 

 

By:       /s/ Roger C. Davis

Name: Roger C. Davis

Title: Senior Vice President

 

 

[Signatures Continued on Next Page]

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

MERRILL LYNCH BANK USA

 

 

By:   /s/ Louis Adler

Name: Louis Adler

Title: Director

 

 

 

BANK HAPOALIM B.M.

 

 

By:   /s/ Helen H. Gateson

Name: Helen H. Gateson

Title: Vice President

 

 

By:   /s/ Lenroy Hackett

Name: Lenroy Hackett

Title: First Vice President

 

 

BANK OF COMMUNICATIONS CO., LTD.,

NEW YORK BRANCH

 

 

By:   /s/ Shelley He

Name: Shelley He

Title: Deputy General Manager

 

 

 

 

[Signatures Continued on Next Page]

 

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

CITIZENS BANK OF MASSACHUSETTS

 

 

By:   /s/ Lisa Barry

Name: Lisa Barry

Title: Vice President

 

 

 

COMERICA BANK

 

 

By:   /s/ Jessica L. Kempf

Name: Jessica L. Kempf

Title: Vice President

 

 

THE FARMERS BANK OF CHINA, LOS ANGELES BRANCH

 

 

By:   /s/ Henry Po-Chang Ho

Name: Henry Po-Chang Ho

Title: Vice President & General Manager

 

 

 

FIRST HAWAIIAN BANK

 

 

By:   /s/ Charles L. Jenkins

Name: Charles L. Jenkins

Title: Senior Vice President

 

 

 

[Signatures Continued on Next Page]

 

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

TAIPEI FUBON COMMERCIAL BANK CO., LTD.

 

 

By:   /s/ Herbert Lai

Name: Herbert Lai

Title: Senior Vice President/General Manager

 

 

 

FIRST COMMERCIAL BANK, NEW YORK AGENCY

 

 

By:   /s/ Bruce M. J. Ju

Name: Bruce M. J. Ju

Title: VP & General Manager

 

 

 

MORGAN STANLEY BANK

 

 

By:   /s/ Daniel Twenge

Name: Daniel Twenge

Title: Authorized Signatory

 

 

 

REGIONS BANK

 

 

By:   /s/ Elaine B. Passman

Name: Elaine B. Passman

Title: Vice President

 

 

 

[Signatures Continued on Next Page]

 

 

 

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[Signature Page to First Amendment to Amended and Restated

Credit Agreement with Hospitality Properties Trust]

 

 

HUA NAN COMMERCIAL BANK, LTD.,

LOS ANGELES BRANCH

 

 

By:   /s/ Oliver C. H. Hsu

Name: Oliver C.H. Hsu

Title: VP and General Manager

 

 

 

HUA NAN COMMERCIAL BANK, LTD.,

NEW YORK BRANCH

 

 

By:   /s/ Te-Chin Wang

Name: Te-Chin Wang

Title: Assistant Vice President

 

 

 

 

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SCHEDULE 1.1(a)

 

Applicable Margin

 

 

 

Level

Borrower’s Credit Rating

(S&P/Moody’s (other))

Applicable Margin for LIBOR Loans

Applicable Margin for Base Rate Loans

1

> BBB+/Baa1 (or equivalent)

0.375%

0.0%

2

BBB+/Baa1 (or equivalent)

0.425%

0.0%

3

BBB/Baa2 (or equivalent)

0.55%

0.0%

4

BBB-/Baa3 (or equivalent)

0.75%

0.0%

5

<BBB-/Baa3 (or equivalent)

1.00%

0.25%

 

 

 

 

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SCHEDULE 1.1(b)

 

Facility Fee

 

 

Level

Facility Fee

1

0.125%

2

0.15%

3

0.15%

4

0.20%

5

0.25%

 

 

 

 

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EXHIBIT A

 

FORM OF GUARANTOR ACKNOWLEDGEMENT

 

THIS GUARANTOR ACKNOWLEDGEMENT dated as of August 22, 2006 (this
“Acknowledgment”) executed by each of the undersigned (the “Guarantors”) in
favor of WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent (the “Agent”) and each
“Lender” a party to the Credit Agreement referred to below (the “Lenders”).

 

WHEREAS, Hospitality Properties Trust (the “Borrower”), the Lenders, the Agent
and certain other parties have entered into that certain Credit Agreement dated
as of May 23, 2005 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”);

 

WHEREAS, each of the Guarantors is a party to that certain Guaranty dated as of
May 23, 2005 (as amended, restated, supplemented or otherwise modified from time
to time, the “Guaranty”) pursuant to which they guarantied, among other things,
the Borrower’s obligations under the Credit Agreement on the terms and
conditions contained in the Guaranty;

 

WHEREAS, the Borrower, the Agent and the Lenders are to enter into a First
Amendment to Amended and Restated Credit Agreement dated as of the date hereof
(the “Amendment”), to amend the terms of the Credit Agreement on the terms and
conditions contained therein; and

 

WHEREAS, it is a condition precedent to the effectiveness of the Amendment that
the Guarantors execute and deliver this Acknowledgment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by the parties hereto, the parties hereto agree
as follows:

 

Section 1. Reaffirmation. Each Guarantor hereby reaffirms its continuing
obligations to the Agent and the Lenders under the Guaranty and agrees that the
transactions contemplated by the Amendment shall not in any way affect the
validity and enforceability of the Guaranty, or reduce, impair or discharge the
obligations of such Guarantor thereunder.

 

Section 2. Governing Law. THIS ACKNOWLEDGEMENT 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 3. Counterparts. This Acknowledgement may be executed in any number of
counterparts, each of which shall be deemed to be an original and shall be
binding upon all parties, their successors and assigns.

 

 

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                IN WITNESS WHEREOF, each Guarantor has duly executed and
delivered this Acknowledgement as of the date and year first written above.

 

THE GUARANTORS:

 

HH HPT Suite Properties LLC

HH HPTCW II Properties LLC

HH HPTCY Properties LLC

HH HPTMI III Properties LLC

HH HPTRI Properties LLC

HH HPTWN Properties LLC

HPT CW Properties Trust

HPT HSD Properties Trust

HPT IHG Canada Properties Trust

HPT IHG GA Properties LLC

HPT IHG PR, Inc.

HPT IHG Properties Trust

HPT IHG-2 Properties Trust

HPTLA Properties Trust

HPT Smokey Mountain LLC

HPT Suite Properties Trust

HPTCY Properties Trust

HPTMI Hawaii, Inc.

HPTMI II Properties Trust

HPTMI Properties Trust

HPTRI Properties Trust

HPTSHC Properties Trust

HPTSY Properties Trust

HPTWN Properties Trust

 

 

By:                                                 

Name: Mark L. Kleifges

Title: Treasurer