Document:

Exhibit 10.1

 

Loan Numbers:    1004100 (Five Year Term Loan)

1004696 (Seven Year Term Loan)

 

Execution Version

 

 

 

TERM LOAN AGREEMENT

 

Dated as of June 20, 2011

 

by and among

 

U-STORE-IT, L.P.,

as Borrower,

 

U-STORE-IT TRUST,

as Parent,

 

WELLS FARGO SECURITIES, LLC,

AND

PNC CAPITAL MARKETS LLC

as Joint Lead Arrangers

and

Joint Bookrunners

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

 

PNC BANK, NATIONAL ASSOCIATION,

as Syndication Agent,

 

U.S. BANK NATIONAL ASSOCIATION,

SUNTRUST BANK

AND

REGIONS BANK,

as Documentation Agents,

 

and

 

THE FINANCIAL INSTITUTIONS INITIALLY SIGNATORY HERETO

AND THEIR ASSIGNEES PURSUANT TO SECTION 12.5.,

as Lenders

 

 

 

TABLE OF CONTENTS

 

	
Article I. Definitions
    	
1
    
	
 
    	
 
    
	
Section 1.1. Definitions
    	
1
    
	
Section 1.2. General; References to Times
    	
24
    
	
Section 1.3. Financial Attributes of   Non-Wholly Owned Subsidiaries
    	
25
    
	
 
    	
 
    
	
Article II. Credit Facilities
    	
25
    
	
 
    	
 
    
	
Section 2.1. Loans
    	
25
    
	
Section 2.2. Rates   and Payment of Interest on Loans
    	
26
    
	
Section 2.3. Number of   Interest Periods
    	
27
    
	
Section 2.4. Repayment of   Loans
    	
27
    
	
Section 2.5. Prepayments
    	
27
    
	
Section 2.6. Continuation
    	
27
    
	
Section 2.7. Conversion
    	
27
    
	
Section 2.8. Notes
    	
28
    
	
Section 2.9. Funds Transfer   Disbursements
    	
28
    
	
Section 2.10. Additional   Loans
    	
29
    
	
 
    	
 
    
	
Article III. Payments,   Fees and Other General Provisions
    	
30
    
	
 
    	
 
    
	
Section 3.1. Payments
    	
30
    
	
Section 3.2. Pro Rata   Treatment
    	
31
    
	
Section 3.3. Sharing of   Payments, Etc.
    	
32
    
	
Section 3.4. Several   Obligations
    	
32
    
	
Section 3.5. Minimum Amounts
    	
32
    
	
Section 3.6. Fees
    	
32
    
	
Section 3.7. Computations
    	
33
    
	
Section 3.8. Usury
    	
33
    
	
Section 3.9. Agreement   Regarding Interest and Charges
    	
33
    
	
Section 3.10. Statements of   Account
    	
33
    
	
Section 3.11. Defaulting   Lenders
    	
33
    
	
Section 3.12. Taxes; Foreign   Lenders
    	
34
    
	
 
    	
 
    
	
Article IV. Yield Protection, Etc.
    	
36
    
	
 
    	
 
    
	
Section 4.1. Additional   Costs; Capital Adequacy
    	
36
    
	
Section 4.2. Suspension of   LIBOR Loans
    	
37
    
	
Section 4.3. Illegality
    	
37
    
	
Section 4.4. Compensation
    	
38
    
	
Section 4.5. Affected   Lenders
    	
38
    
	
Section 4.6. Treatment of   Affected Loans
    	
39
    
	
Section 4.7. Change of   Lending Office
    	
39
    
	
Section 4.8. Assumptions Concerning   Funding of LIBOR Loans
    	
39
    
	
 
    	
 
    
	
Article V. Conditions Precedent
    	
40
    
	
 
    	
 
    
	
Section 5.1. Initial   Conditions Precedent
    	
40
    
	
Section 5.2. Conditions   Precedent to All Loans
    	
42
    
	
 
    	
 
    
	
Article VI. Representations and Warranties
    	
42
    
	
 
    	
 
    
	
Section 6.1. Representations   and Warranties
    	
42
    
	
Section 6.2. Survival of   Representations and Warranties, Etc.
    	
48
    

 

 

	
Article VII. Affirmative Covenants
    	
49
    
	
 
    	
 
    
	
Section 7.1. Preservation of   Existence and Similar Matters
    	
49
    
	
Section 7.2. Compliance with   Applicable Law and Material Contracts
    	
49
    
	
Section 7.3. Maintenance of   Property
    	
49
    
	
Section 7.4. Conduct of   Business
    	
49
    
	
Section 7.5. Insurance
    	
49
    
	
Section 7.6. Payment of   Taxes and Claims
    	
50
    
	
Section 7.7. Visits and   Inspections
    	
50
    
	
Section 7.8. Use of Proceeds
    	
50
    
	
Section 7.9. Environmental   Matters
    	
50
    
	
Section 7.10. Books and   Records
    	
51
    
	
Section 7.11. Further   Assurances
    	
51
    
	
Section 7.12. New   Subsidiaries; Guarantors; Release of Guarantors
    	
51
    
	
Section 7.13. REIT Status
    	
52
    
	
Section 7.14. Exchange   Listing
    	
52
    
	
 
    	
 
    
	
Article VIII. Information
    	
52
    
	
 
    	
 
    
	
Section 8.1. Quarterly   Financial Statements
    	
52
    
	
Section 8.2. Year-End   Statements
    	
52
    
	
Section 8.3. Compliance   Certificate
    	
53
    
	
Section 8.4. Other   Information
    	
53
    
	
Section 8.5. Delivery of   Documents
    	
55
    
	
Section 8.6. Public/Private   Information
    	
55
    
	
Section 8.7. USA Patriot Act   Notice; Compliance
    	
56
    
	
 
    	
 
    
	
Article IX. Negative Covenants
    	
56
    
	
 
    	
 
    
	
Section 9.1. Financial   Covenants
    	
56
    
	
Section 9.2. Restricted   Payments
    	
57
    
	
Section 9.3. Indebtedness
    	
57
    
	
Section 9.4. Certain   Permitted Investments
    	
58
    
	
Section 9.5. Investments   Generally
    	
58
    
	
Section 9.6. Liens; Negative   Pledges; Other Matters
    	
59
    
	
Section 9.7. Merger,   Consolidation, Sales of Assets and Other Arrangements
    	
60
    
	
Section 9.8. Fiscal Year
    	
61
    
	
Section 9.9. Modifications   to Material Contracts
    	
61
    
	
Section 9.10. Modifications   of Organizational Documents
    	
61
    
	
Section 9.11. Transactions   with Affiliates
    	
61
    
	
Section 9.12. Plans
    	
61
    
	
Section 9.13. Derivatives   Contracts
    	
61
    
	
Section 9.14. Effectiveness   of Certain Negative Covenants
    	
61
    
	
 
    	
 
    
	
Article X. Default
    	
62
    
	
 
    	
 
    
	
Section 10.1. Events of   Default
    	
62
    
	
Section 10.2. Remedies Upon   Event of Default
    	
65
    
	
Section 10.3. Marshaling;   Payments Set Aside
    	
66
    
	
Section 10.4. Allocation of Proceeds
    	
66
    
	
Section 10.5. Performance by   Administrative Agent
    	
67
    
	
Section 10.6. Rights   Cumulative
    	
67
    

 

ii

 

	
Article XI. The Administrative Agent
    	
67
    
	
 
    	
 
    
	
Section 11.1. Authorization   and Action
    	
67
    
	
Section 11.2. Administrative   Agent’s Reliance, Etc.
    	
68
    
	
Section 11.3. Notice of   Defaults
    	
69
    
	
Section 11.4. Administrative   Agent as Lender
    	
69
    
	
Section 11.5. Approvals of   Lenders
    	
69
    
	
Section 11.6. Lender Credit   Decision, Etc.
    	
70
    
	
Section 11.7.   Indemnification of Administrative Agent
    	
70
    
	
Section 11.8. Successor   Administrative Agent
    	
71
    
	
Section 11.9. Titled Agents
    	
72
    
	
 
    	
 
    
	
Article XII. Miscellaneous
    	
72
    
	
 
    	
 
    
	
Section 12.1. Notices
    	
72
    
	
Section 12.2. Expenses
    	
73
    
	
Section 12.3. Setoff
    	
74
    
	
Section 12.4. Litigation;   Jurisdiction; Other Matters; Waivers
    	
74
    
	
Section 12.5. Successors and   Assigns
    	
75
    
	
Section 12.6. Amendments
    	
78
    
	
Section 12.7. Nonliability   of Administrative Agent and Lenders
    	
80
    
	
Section 12.8.   Confidentiality
    	
80
    
	
Section 12.9.   Indemnification
    	
81
    
	
Section 12.10. Termination;   Survival
    	
83
    
	
Section 12.11. Severability   of Provisions
    	
83
    
	
Section 12.12. GOVERNING LAW
    	
83
    
	
Section 12.13. Counterparts
    	
83
    
	
Section 12.14. Obligations   with Respect to Loan Parties
    	
83
    
	
Section 12.15. Limitation of   Liability
    	
84
    
	
Section 12.16. Entire   Agreement
    	
84
    
	
Section 12.17.   Construction
    	
84
    

 

	
SCHEDULE   1.1.(A)
    	
List   of Loan Parties
    
	
SCHEDULE   1.1.(B)
    	
Lender   Commitments
    
	
SCHEDULE   6.1.(b)
    	
Ownership   Structure
    
	
SCHEDULE   6.1.(f)
    	
Title   to Properties; Liens
    
	
SCHEDULE   6.1.(g)
    	
Existing   Indebtedness
    
	
SCHEDULE   6.1.(h)
    	
Material   Contracts
    
	
SCHEDULE   6.1.(i)
    	
Litigation
    
	
SCHEDULE   9.6.
    	
Existing   Negative Pledges
    
	
 
    	
 
    
	
EXHIBIT A
    	
Form of   Assignment and Acceptance Agreement
    
	
EXHIBIT B
    	
Form of   Guaranty
    
	
EXHIBIT C
    	
Form of   Notice of Borrowing
    
	
EXHIBIT D
    	
Form of   Notice of Continuation
    
	
EXHIBIT E
    	
Form of   Notice of Conversion
    
	
EXHIBIT F
    	
Form of   Five Year Term Note
    
	
EXHIBIT G
    	
Form of   Seven Year Term Note
    
	
EXHIBIT H
    	
Form of   Opinion of Counsel
    
	
EXHIBIT I
    	
Form of   Compliance Certificate
    
	
EXHIBIT J
    	
Form of   Transfer Authorizer Designation
    

 

iii

 

THIS TERM LOAN AGREEMENT (this “Agreement”) dated as of June 20, 2011 by and among U-STORE-IT, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”), U-STORE-IT TRUST, a real estate investment trust formed under the laws of the State of Maryland (the “Parent”), WELLS FARGO SECURITIES, LLC and PNC CAPITAL MARKETS LLC as Joint Lead Arrangers (together, the “Joint Lead Arrangers”) and Joint Bookrunners (together, the “Joint Bookrunner”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, PNC BANK, NATIONAL ASSOCIATION, as Syndication Agent (the “Syndication Agent”), U.S. BANK NATIONAL ASSOCIATION, SUNTRUST BANK and REGIONS BANK, as Documentation Agents (together, the “Documentation Agents”), and each of the financial institutions initially a signatory hereto together with their assignees pursuant to Section 12.5.(b) (the “Lenders”).

 

WHEREAS, the Lenders desire to make available to the Borrower (a) a term loan facility in the principal amount of $100,000,000 having a five year maturity and (b) a term loan facility in the principal amount of $100,000,000 having a seven year maturity, 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, each intending to be legally bound, agree 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:

 

“Accession Agreement” means an Accession Agreement substantially in the form of Annex I to the Guaranty.

 

“Acquisition Price” means, with respect to any Property, the purchase price paid by the Borrower or any of its Subsidiaries for such Property less closing costs and any amounts paid by the Borrower or such Subsidiary as a purchase price adjustment, to be held in escrow, to be retained as a contingency reserve, or other similar amounts.

 

“Additional Costs” has the meaning given that term in Section 4.1.(b).

 

“Additional Lender” has the meaning given such term in Section 2.10.(a).

 

“Additional Loan” has the meaning given such term in Section 2.10.(a).

 

“Additional Loan Amendment” has the meaning given such term in Section 2.10.(a).

 

“Adjusted Asset Value” means on any date of determination, the sum of: (a) with respect to any Storage Property that has been owned or leased for the four most recently ended fiscal quarters, an amount equal to (i) the Net Operating Income of such Storage Property for the four full fiscal quarters of the Parent most recently ended, divided by (ii) the Capitalization Rate;  plus (b) with respect to any Storage Property that has been owned or leased for the two most recently ended fiscal quarters but less than the three most recently ended fiscal quarters, an amount equal to (i) the product of (x) the Net Operating Income of such Storage Property for the two full fiscal quarters of the Parent most recently ended multiplied by (y) 2, divided by (ii) the Capitalization Rate; plus (c) with respect to any Storage Property that has been owned or leased for the three most recently ended fiscal quarters but less than the

 

 

four most recently ended fiscal quarters, an amount equal to (i) the product of (x) the Net Operating Income of such Storage Property for the three full fiscal quarters of the Parent most recently multiplied by (y) 4 and then divided by (z) 3, divided by (ii) the Capitalization Rate; plus (d) the GAAP book value of all Storage Properties that have been owned or leased for less than two full fiscal quarters.

 

“Adjusted EBITDA” means, for any given period, (a) Consolidated EBITDA for such period minus (b) Reserves for Capital Expenditures for all Storage Properties for such period.

 

“Adjusted Total Revenue” means, for any period, an amount equal to (a) the total revenue of the Parent and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP, minus (b) the aggregate amount of total revenue of all the Excluded Subsidiaries for such period.

 

“Administrative Agent” means Wells Fargo, as contractual representative for the Lenders under the terms of this Agreement, and any of its successors.

 

“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.

 

“Affiliate” means, when used 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.  As used in this definition, the term “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 ownership of voting securities, by contract or otherwise.  In no event shall the Administrative Agent or any Lender be deemed to be an Affiliate of the Borrower.

 

“Agreement” has the meaning set forth in the introductory paragraph hereof.

 

“Agreement Date” means the date as of which this Agreement is dated.

 

“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, 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:

 

(a)           prior to the Investment Grade Rating Date, the percentage set forth below corresponding to the ratio of Consolidated Total Indebtedness to Consolidated Adjusted Asset Value as determined in accordance with Section 9.1. in effect at such time:

 

	
Level
    	
 
    	
Consolidated Total Indebtedness to
   Consolidated Adjusted Asset Value
    	
 
    	
Applicable Margin for
   Five Year Term Loans
    	
 
    	
Applicable Margin for
   Seven Year Term Loans
    	
 
    
	
1
    	
 
    	
< 0.45 to 1.00
    	
 
    	
1.90
    	
%
    	
2.05
    	
%
    
	
2
    	
 
    	
>   0.45 to 1.00 and < 0.50 to 1.00
    	
 
    	
2.10
    	
%
    	
2.25
    	
%
    
	
3
    	
 
    	
>   0.50 to 1.00 and < 0.55 to 1.00
    	
 
    	
2.30
    	
%
    	
2.45
    	
%
    
	
4
    	
 
    	
>   0.55 to 1.00
    	
 
    	
2.75
    	
%
    	
2.85
    	
%
    

 

2

 

The Applicable Margin shall be determined by the Administrative Agent from time to time, based on the ratio of Consolidated Total Indebtedness to Consolidated Adjusted Asset Value as set forth in the Compliance Certificate most recently delivered by the Borrower pursuant to Section 8.3.  Any adjustment to the Applicable Margin 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 Margin shall equal the percentage corresponding to Level 4 until the date of the delivery of the required Compliance Certificate.  As of the Agreement Date, and thereafter until changed as provided above, the Applicable Margin is determined based on Level 1.  The provisions of this definition are subject to Section 2.2.(c); and

 

(b)           on, and at all times after, the Investment Grade Rating Date, the percentage rate set forth below corresponding to the Level into which the Parent’s Credit Rating then falls.  Any change in the Parent’s Credit Rating which would cause it to move to a different Level shall be effective as of the first day of the first calendar month immediately following receipt by the Administrative Agent of written notice delivered by the Borrower in accordance with Section 8.4.(o) that the Parent’s Credit Rating has changed; provided, however, if the Borrower has not delivered the notice required by such Section but the Administrative Agent becomes aware that the Parent’s Credit Rating has changed, then the Administrative Agent shall adjust the Level effective as of the first day of the first calendar month following the date the Administrative Agent becomes aware that the Parent’s Credit Rating has changed.  During any period that the Parent has received three Credit Ratings that are not equivalent, the Applicable Margin shall be determined based upon the Level corresponding with the lower of the two highest Credit Ratings.  During any period that the Parent has received two Credit Ratings that are not equivalent and both of those Credit Ratings are from S&P and Moody’s, the Applicable Margin shall be determined based upon the Level corresponding with the higher of the two Credit Ratings.  During any period that the Parent has received a Credit Rating from Fitch and from either S&P or Moody’s, but not both, and such Credit Ratings are not equivalent, the Applicable Margin shall be determined based upon the Level corresponding with the Credit Rating from S&P or Moody’s, as applicable.  During any period that the Parent has (a) not received a Credit Rating from any Rating Agency or (b) received a Credit Rating from only Fitch, then the Applicable Margin shall be determined based on Level 4.

 

	
Level
    	
 
    	
Parent’s Credit Rating
   (S&P/Moody’s/Fitch)
    	
 
    	
Applicable Margin for
   Five Year Term Loans
    	
 
    	
Applicable Margin for
   Seven Year Term
   Loans
    	
 
    
	
1
    	
 
    	
BBB+/Baa1/BBB+
    	
 
    	
1.45
    	
%
    	
1.60
    	
%
    
	
2
    	
 
    	
BBB/Baa2/BBB
    	
 
    	
1.65
    	
%
    	
1.80
    	
%
    
	
3
    	
 
    	
BBB-/Baa3/BBB-
    	
 
    	
1.85
    	
%
    	
2.00
    	
%
    
	
4
    	
 
    	
Lower   than BBB-/Baa3/BBB-
    	
 
    	
2.10
    	
%
    	
2.25
    	
%
    

 

“Approved Fund” means any Fund that is administered, managed or underwritten by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

“Assignee” has the meaning given that term in Section 12.5.(b).

 

“Assignment and Acceptance Agreement” means an Assignment and Acceptance Agreement 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, substantially in the form of Exhibit A or any other form approved by the Administrative Agent.

 

3

 

“Base Rate” means the LIBOR Market Index Rate; provided, however, that if the LIBOR Market Index Rate is unavailable, Base Rate shall mean the per annum rate of interest equal to the Federal Funds Rate plus one and one-half of one percent (1.50%). Any change in the Base Rate resulting from a change in the LIBOR Market Index Rate or the Federal Funds Rate shall become effective as of 12:01 a.m. on the Business Day on which each such change occurs.  The Base Rate is a reference rate used by the Lender acting as the Administrative Agent in determining interest rates on certain loans and is not intended to be the lowest rate of interest charged by the Lender acting as the Administrative Agent or any other Lender on any extension of credit to any debtor.

 

“Base Rate Loan” means any portion of a Loan 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.

 

“Business Day” means (a) any day other than a Saturday, Sunday or other day on which banks in Charlotte, North Carolina are authorized or required to close and (b) with reference to a LIBOR Loan any such day that is also a day on which dealings in deposits of Dollars are carried out in the London interbank market.

 

“Capital Lease Obligations” means, with respect to any Person, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP; and, for the purposes of this Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP.

 

“Capitalization Rate” means 8.75%.

 

“Cash Equivalents” means:  (a) securities issued, guaranteed or insured by the United States of America or any of its agencies with maturities of not more than one year from the date acquired; (b) certificates of deposit with maturities of not more than one year from the date issued by a United States federal or state chartered commercial bank of recognized standing, or a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of any such country, acting through a branch or agency, which bank has capital and unimpaired surplus in excess of $500,000,000 and which bank or its holding company has a short-term commercial paper rating of at least A-2 or the equivalent by S&P or at least P-2 or the equivalent by Moody’s; (c) reverse repurchase agreements with terms of not more than seven days from the date acquired, for securities of the type described in clause (a) above and entered into only with commercial banks having the qualifications described in clause (b) above; (d) commercial paper issued by any Person incorporated under the laws of the United States of America or any State thereof and rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s, in each case with maturities of not more than one year from the date acquired; and (e) investments in money market funds registered under the Investment Company Act of 1940, as amended, which have net assets of at least $500,000,000 and at least 85% of whose assets consist of securities and other obligations of the type described in clauses (a) through (d) above.

 

4

 

“Class” means, when used in reference to (a) a Loan, refers to whether such Loan is a Five Year Term Loan or a Seven Year Term Loan or (b) a Lender, refers to whether such Lender is a Five Year Term Lender or a Seven Year Term Lender.

 

“Commitment” means, as to each Lender, the Five Year Term Commitment and the Seven Year Term Commitment, if any, of such Lender.

 

“Commitment Percentage” means, as to each Lender, the ratio, expressed as a percentage, of (a) the aggregate outstanding principal amount of such Lender’s Loans to (b) the aggregate outstanding principal amount of all Loans.

 

“Compliance Certificate” has the meaning given that term in Section 8.3.

 

“Consolidated Adjusted Asset Value” means, on any date of determination, the sum (without duplication) of (a) the aggregate Adjusted Asset Value of all Storage Properties of the Borrower and its Subsidiaries on such date plus (b) the undepreciated book value (determined in accordance with GAAP) of all Development Properties plus (c) the Acquisition Price of all Properties owned in fee simple or leased by a Loan Party for less than 2 fiscal quarters as of such date of determination, plus (d) the book value (determined in accordance with GAAP) of all other tangible assets (other than cash and Cash Equivalents) of the Borrower and its Subsidiaries as of such date plus (e) cash and Cash Equivalents of the Borrower and its Subsidiaries on such date, provided that, (x) the portion of the Consolidated Adjusted Asset Value attributable to clause (d) above shall not exceed 5.0% of the Consolidated Adjusted Asset Value, (y) the portion of the Consolidated Adjusted Asset Value attributable to the sum of clauses (d) and (e) above shall not exceed 10.0% of the Consolidated Adjusted Asset Value and (z) the portion of the Consolidated Adjusted Asset Value attributable to Development Properties shall not exceed 15% of the Consolidated Adjusted Asset Value.  The Borrower’s pro rata share of assets held by Unconsolidated Affiliates will be included in Consolidated Adjusted Asset Value calculations consistent with the above described treatment for wholly owned assets.

 

“Consolidated EBITDA” means, for any period, Consolidated Net Income of the Parent and its Subsidiaries for such period plus, without duplication and to the extent reflected as a charge in the statement of Consolidated Net Income for such period, the sum of (a) income tax expense, (b) interest expense, amortization or write-off of debt discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness, (c) depreciation and amortization expense, (d) amortization of intangibles (including, but not limited to, amortization and/or impairment charges with respect to goodwill) and organization costs, (e) any extraordinary, unusual or non-recurring non-cash expenses or losses (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, losses on sales of assets outside of the ordinary course of business), and (f) any other non-cash charges (including non-cash charges under Financial Accounting Standards Board Statement No. 123R), and minus, to the extent included in the statement of such Consolidated Net Income for such period, the sum of (i) interest income (except to the extent deducted in determining such Consolidated Net Income), (ii) any extraordinary, unusual or non-recurring income or gains (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, gains on the sales of assets outside of the ordinary course of business), (iii) any other non-cash income and (iv) any cash payments made during such period in respect of items described in clause (e) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement of Consolidated Net Income, all as determined on a consolidated basis.

 

“Consolidated Fixed Charges” means, for any period, the sum (without duplication) of (a) Consolidated Interest Expense for such period, (b) all regularly scheduled payments made during such

 

5

 

period on account of principal of Indebtedness of the Parent or any of its Subsidiaries, other than balloon, bullet or similar principal payments which repay in full such Indebtedness, (c) Preferred Dividends accumulated (whether or not declared or payable) by the Parent or any of its Subsidiaries during such period and (d) the Parent’s and its Subsidiaries’ pro-rata share of all expenses and payments referred to in the preceding clauses (a) and (b) of any Unconsolidated Affiliate of the Parent or any of its Subsidiaries.

 

“Consolidated Interest Expense” means, for any period, the total interest expense of Parent and its Subsidiaries (including that attributable to Capital Lease Obligations and any capitalized interest expense) for such period with respect to all outstanding Indebtedness of Parent and its Subsidiaries (including, without limitation, all commissions, discounts and other fees and charges owed by the Parent and its Subsidiaries with respect to letters of credit, bankers’ acceptance financing and net costs of Parent and its Subsidiaries under Derivatives Contracts in respect of interest rates to the extent such net costs are allocable to such period in accordance with GAAP), plus the Parent’s and its Subsidiaries’ pro-rata share of all such expenses of any Unconsolidated Affiliates of the Parent or any Subsidiary.

 

“Consolidated Net Income” means, of any Person for any period, the consolidated net income (or loss) of such Person and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP; provided, that in calculating Consolidated Net Income of Parent and its consolidated Subsidiaries for any period, there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of Parent or is merged into or consolidated with Parent or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary of the Borrower) in which Parent or any of its Subsidiaries has an ownership interest, except to the extent that any such income is actually received by Parent or such Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of any Subsidiary of Parent to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any Contractual Obligation (other than under any Loan Document) or Applicable Law applicable to such Subsidiary.

 

“Consolidated Total Indebtedness” means, at any date, the aggregate principal amount of all Indebtedness of Parent and its Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Unsecured Indebtedness” means, at any date, the aggregate principal amount of all Unsecured Indebtedness of Parent and its Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP.

 

“Construction Budget” means the fully-budgeted costs for the acquisition and construction of a given parcel of real property (including, without limitation, the cost of acquiring such parcel of real property, reserves for construction interest and operating deficits, tenant improvements, leasing commissions, and infrastructure costs) as reasonably determined by the Parent in good faith.

 

“Continue”, “Continuation” and “Continued” each refers to the continuation of a LIBOR Loan from one Interest Period to another Interest Period pursuant to Section 2.6.

 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

“Convert”, “Conversion” and “Converted” each refers to the conversion of a Loan of one Type into a Loan of another Type pursuant to Section 2.7.

 

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“Credit Event” means any of the following:  (a) the making (or deemed making) of any Loan, (b) the Continuation of a LIBOR Loan, and (c) the Conversion of a Base Rate Loan into a LIBOR Loan.

 

“Credit Rating” means the rating assigned by a rating agency to the senior unsecured long term Indebtedness of a Person.

 

“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.

 

“Defaulting Lender” means, subject to Section 3.11.(c), any Lender that (a) has failed to (i) fund all or any portion of its Loans, (b) has notified the Borrower or the Administrative Agent 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) 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, or (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; 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 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 3.11.(c)) upon delivery of written notice of such determination to the Borrower and each Lender.

 

“Derivatives Contract” means (a) any transaction (including any master agreement, confirmation or other agreement with respect to any such transaction) now existing or hereafter entered into by the Borrower or any of its Subsidiaries (i) which is a rate swap transaction, swap option, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, weather index transaction or forward purchase or sale of a security, commodity or other financial instrument or interest (including any option with respect to any of these transactions) or (ii) which is a type of transaction that is similar to any transaction referred to in

 

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clause (i) above that is currently, or in the future becomes, commonly entered into in the financial markets (including terms and conditions incorporated by reference in such agreement) and which is a forward, swap, future, option or other derivative on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, economic indices or measures of economic risk or value, or other benchmarks against which payments or deliveries are to be made, and (b) any combination of these transactions.

 

“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 mark-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 thereof).

 

“Development Property” means a Property currently under development as a Storage Property that does not have an Occupancy Rate of 50% or more or, subject to the last sentence of this definition, on which the improvements (other than tenant improvements on unoccupied space) related to the development have not been completed.  The term “Development Property” shall include, but shall not be limited to, real property of the type described in the immediately preceding sentence to be acquired by the Borrower, any Subsidiary or any Unconsolidated Affiliate pursuant to an executed purchase agreement, such acquisition to be consummated upon completion of construction pursuant to a contract in which the seller of such real property is required to develop or renovate prior to, and as a condition precedent to, such acquisition.  A Development Property on which all improvements (other than tenant improvements on unoccupied space) related to the development of such Property have been completed for at least 36 months shall cease to constitute a Development Property notwithstanding the fact that such Property does not have an Occupancy Rate of at least 50%.

 

“Dollars” or “$” means the lawful currency of the United States of America.

 

“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 in writing by the Requisite Lenders.

 

“Effective Yield” means, as to any Loan, the effective yield on such Loan as determined by the Administrative Agent, taking into account the applicable interest rate margins, any interest rate floors or similar devices and all fees, including upfront or similar fees or original issue discount (amortized over the shorter of (x) the weighted average life to maturity of such Loan and (y) the four years following the date of incurrence thereof) payable generally to the Lender making such Loans, but excluding any arrangement, structuring or other fees payable in connection therewith that are not generally shared with the relevant Lenders and customary consent fees paid generally to consenting 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 (i) the Administrative Agent and (ii) unless a Default or Event of Default shall exist, the Borrower (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 

“Eligible Property” means a Property which satisfies all of the following requirements: (a) such Property is owned, or leased under a Ground Lease, by the Borrower or a wholly-owned Subsidiary that is

 

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a Guarantor; (b) such Property is a Storage Property; (c) such Property is located in one of the 48 contiguous states of the United States of America or in the District of Columbia; (d) neither such Property, nor any interest of the Borrower or any Subsidiary thereof therein, is subject to any lien (other than Permitted Liens described in clauses (a) through (e) of the definition thereof) or any negative pledge; (e) if such Property is owned or leased by a Subsidiary that is a Guarantor, (i) none of the Borrower’s or the Parent’s direct or indirect ownership interest in such Subsidiary is subject to any lien (other than Permitted Liens described in clauses (a) through (e) of the definition thereof) or any negative pledge and (ii) the Borrower directly, or indirectly through a Subsidiary, has the right 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 Parent, the Borrower or such Subsidiary, and (B) to sell, transfer or otherwise dispose of such Property; and (f) such Property is free of all structural defects or major architectural deficiencies, title defects, environmental conditions or other adverse matters except for defects, deficiencies, conditions or other matters individually or collectively which are not material to the profitable operation of such Property.  Notwithstanding the above, the Occupancy Rate of all Eligible Properties must be a minimum of 70%, determined on an aggregate basis.  The Borrower shall be able to remove Properties that would otherwise meet this definition in order to comply with the Occupancy Rate requirement set forth in the preceding sentence and with the covenants set forth in Section 9.1.

 

“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 and 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

 

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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 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, the other Subsidiaries 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.

 

“Event of Default” means any of the events specified in Section 10.1., provided that any requirement for notice or lapse of time or any other condition has been satisfied.

 

“Excluded Subsidiary” means any Subsidiary (a) holding title to assets which are or are to become collateral for any Secured Indebtedness of such Subsidiary (or whose sole asset is an Equity Interest in such a Subsidiary) and (b) which is prohibited from Guarantying the Indebtedness of any other Person pursuant to (i) any document, instrument or agreement evidencing such Secured 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 Secured Indebtedness.

 

“Fair Market Value” means, with respect to (a) a security listed on a national securities exchange or the NASDAQ National Market, the last sale 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, neither of which is under pressure or compulsion to complete the transaction.

 

“FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.

 

“Federal Funds Rate” means, for any day, the rate per annum (rounded upward to the nearest 1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that

 

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(a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate quoted to the Administrative Agent by federal funds dealers selected by the Administrative Agent on such day on such transaction as determined by the Administrative Agent.

 

“Fees” means the fees and commissions provided for or referred to in Section 3.6. and any other fees payable by the Borrower hereunder or under any other Loan Document.

 

“Fitch” means Fitch, Inc., and its successors.

 

“Five Year  Term  Commitment” means, as to an applicable Lender, a Lender’s obligation (a) to make a Loan pursuant to Section 2.1.(a) in an amount up to, but not exceeding, the amount set forth for such Lender on Schedule 1.1.(B) as such Lender’s “Five Year Term Commitment Amount”.

 

“Five Year Term Lender” means each Lender that has a Five Year Term Commitment or is the holder of a Five Year Term Loan.

 

“Five Year Term  Loan” means a loan made by a Lender to the Borrower pursuant to Section 2.1.(a).

 

“Five Year  Term  Loan Termination Date” means June 19, 2016.

 

“Five Year  Term Note” has the meaning given that term in Section 2.8.(a).

 

“Floating Rate Indebtedness”  means any Indebtedness of a Person which bears interest at a variable rate during the scheduled life of such Indebtedness to the extent that such Person has not entered into an interest rate swap agreement, interest rate “cap” or “collar” agreement or other similar Derivatives Contract with a Person not an Affiliate of such Person and which, as of the date of determination, effectively limits such interest rate exposure in respect of such Indebtedness to a fixed rate less than or equal to the greater of:  (i) the sum of: (a) the rate (as determined by the Administrative Agent) borne by United States 10-year Treasury Notes at the time the applicable Derivatives Contract became effective plus (b) 1.50%; and (ii) 8.0%.

 

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.  For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

 

“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 business.

 

“Funds From Operations” means, for any period, with respect to the Parent and its Subsidiaries, (a) Consolidated Net Income of the Parent and its Subsidiaries for such period, plus (b) real estate depreciation and amortization (excluding amortization of financing costs), plus (c) amortization associated with the purchase of property management companies, plus (d) non-cash charges for the impairment of real estate assets for such period, minus, to the extent included in the statement of such Consolidated Net Income for such period (without duplication), (e) gains (or losses) from debt restructuring and sales of property, and after adjustments for Unconsolidated Affiliates (with adjustments for Unconsolidated Affiliates calculated to reflect funds from operations on the same basis) together with 

 

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adjustments for the non-cash deferred portion of any income tax provision for Unconsolidated Affiliates and the payment of Preferred Dividends, as interpreted by the National Association of Real Estate Investment Trusts in its May, 1995, White Paper on Funds From Operations; provided that, the following shall be excluded when calculating Funds From Operations: (i) non-cash adjustments for loan amortization costs and (ii) interest expense charges (or benefits) for minority interest marked-to-market adjustments arising under Statement of Financial Accounting Standards No. 150 of the Financial Accounting Standards Board as interpreted under GAAP.

 

“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, 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.

 

“Ground Lease”  means a ground lease containing the following terms and conditions:  (a) a remaining term (exclusive of any unexercised extension options) of 30 years or more from the Agreement Date (or such shorter period as the Requisite Lenders may agree); (b) the right of the lessee to mortgage and encumber its interest in the leased property without the consent of the lessor; (c) the obligation of the lessor to give the holder of any mortgage Lien on such leased property written notice of any defaults on the part of the lessee and agreement of such lessor that such lease will not be terminated until such holder has had a reasonable opportunity to cure or complete foreclosures, and fails to do so; (d) reasonable transferability of the lessee’s interest under such lease, including without limitation, the ability to sublease; and (e) such other rights customarily required by mortgagees making a loan secured by the interest of the holder of the leasehold estate demised pursuant to a ground lease.

 

“Guarantor” means any Person that is a party to the Guaranty as a “Guarantor” and in any event shall include the Parent and each Material Subsidiary.

 

“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 or deposit 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 

 

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of amounts drawn down by beneficiaries of 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 to which the Guarantors are parties 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 explosives or any radioactive materials; (d) asbestos in any form; (e) toxic mold; and (f) electrical equipment which contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty parts per million.

 

“Indebtedness” of any Person at any date, without duplication: (a) all indebtedness of such Person for borrowed money; (b) all obligations of such Person for the deferred purchase price of property or services (including trade payables incurred in the ordinary course of such Person’s business but excluding accrued expenses); (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments; (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property); (e) all Capital Lease Obligations of such Person; (f) all obligations of such Person, contingent or otherwise, as an account party or applicant under acceptance, letter of credit, surety bond or similar facilities; (g) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any Equity Interests of such Person; (h) all Off-Balance Sheet Obligations of such Person; (i) all obligations of such Person in respect of Guaranties of obligations of the kind referred to in clauses (a) through (h) above; (j) all obligations of the kind referred to in clauses (a) through (i) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation; and (k) net obligations of such Person under any Derivatives Contract not entered into as a hedge against existing Indebtedness, in an amount equal to the Derivatives Termination Value thereof.  The Indebtedness of any person shall include the Indebtedness of any other entity (including any partnership in which such person is a general partner) to the extent such person is liable therefore as a result of such person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness expressly provide that such person is not liable therefore, provided that, Indebtedness shall include such person’s pro-rata share of Indebtedness of any joint venture in which such person is a partner, regardless if such person is liable therefor.  Any calculation of Indebtedness hereunder shall be made in a manner consistent with the last sentence of Section 1.2.

 

“Indemnified Costs” has the meaning given that term in Section 12.9.(a).

 

“Indemnified Party” has the meaning given that term in Section 12.9.(a).

 

“Indemnity Proceeding” has the meaning given that term in Section 12.9.(a).

 

“Intellectual Property” has the meaning given that term in Section 6.1.(t).

 

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“Interest Period” means with respect to any 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 1, 3 or 6 months thereafter, as the Borrower may select in the Notice of Borrowing, or a Notice of Continuation or 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 a day for which there is no corresponding day in the appropriate subsequent calendar month, shall end on the last Business Day of the appropriate subsequent calendar month.  Notwithstanding the foregoing:  (i) if any Interest Period for any Five Year Term Loan would otherwise end after the Five Year Term Loan Termination Date, such Interest Period shall end on the Five Year Term Loan Termination Date; (ii) if any Interest Period for any Seven Year Term Loan would otherwise end after the Seven Year Term Loan Termination Date, such Interest Period shall end on the Seven Year Term Loan Termination Date; and (iii) 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, as amended.

 

“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 binding 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 amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.

 

“Investment Grade Rating” means a Credit Rating of BBB-/BBB-/Baa3 or higher from any of S&P, Fitch or Moody’s, respectively.

 

“Investment Grade Rating Date” means the date on which the Parent first obtains, at its request, an Investment Grade Rating from any two of the Rating Agencies.

 

“Lender” means each financial institution from time to time party hereto as a “Lender”, together with its respective successors and permitted assigns; provided, however, except as otherwise expressly provided herein, the term “Lender” shall not include any Lender or any of its Affiliates in such Person’s capacity as a Specified Derivatives Provider.  “Lender” shall also include any Additional Lender.

 

“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 such other office of such Lender of which such Lender may notify the Administrative Agent in writing from time to time.

 

“Level” shall be the “Level” column as set forth in the definition of the term “Applicable Margin.”

 

“LIBOR” means, for any LIBOR Loan for any Interest Period therefor, the rate of interest, rounded up to the nearest whole multiple of one-hundredth of one percent (0.01%), obtained by dividing 

 

14

 

(i) the rate of interest, rounded upward to the nearest whole multiple of one-hundredth of one percent (0.01%), referred to as the BBA (British Bankers’ Association) LIBOR rate as set forth by any service selected by the Administrative Agent that has been nominated by the British Bankers’ Association as an authorized information vendor for the purpose of displaying such rate for deposits in Dollars at approximately 9:00 a.m. Pacific time, 2 Business Days prior to the date of commencement of such Interest Period for purposes of calculating effective rates of interest for loans or obligations making reference thereto, for an amount approximately equal to the applicable LIBOR Loan and for a period of time approximately equal to such Interest Period by (ii) a percentage equal to 1 minus the stated maximum rate (stated as a decimal) of all reserves, if any, required to be maintained with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) as specified in Regulation D of the Board of Governors of the Federal Reserve System (or against any other category of liabilities which includes deposits by reference to which the interest rate on LIBOR Loans is determined or any applicable category of extensions of credit or other assets which includes loans by an office of any Lender outside of the United States of America).  Any change in such maximum rate shall result in a change in LIBOR on the date on which such change in such maximum rate becomes effective.

 

“LIBOR Loan” means any portion of a 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 9:00 a.m. Pacific time for such day (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” as applied to the property of any Person means:  (a) any security interest, encumbrance, mortgage, deed to secure debt, deed of trust, assignment of leases and rents, pledge, lien, charge or lease constituting a Capital Lease Obligation, conditional sale or other title retention agreement, or other security title or encumbrance of any kind in respect of any property of such Person, or upon the income, rents or profits therefrom; (b) any arrangement, express or implied, under which any property of such Person is transferred, sequestered or otherwise identified for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority to the payment of the general, unsecured creditors of such Person; (c) the filing of any financing statement under the Uniform Commercial Code or its equivalent in any jurisdiction, other than any precautionary filing not otherwise constituting or giving rise to a Lien, including a financing statement filed (i) in respect of a lease not constituting a Capital Lease Obligation pursuant to Section 9-505 (or a successor provision) of the UCC or its equivalent as in effect in an applicable jurisdiction or (ii) in connection with a sale or other disposition of accounts or other assets not prohibited by this Agreement in a transaction not otherwise constituting or giving rise to a Lien; and (d) any agreement by such Person to grant, give or otherwise convey any of the foregoing.

 

“Loan” means a Five Year Term Loan, a Seven Year Term Loan, a Loan made on the Effective Date or an Additional Loan.

 

“Loan Document” means this Agreement, each Note, the Guaranty, each Additional Loan Amendment, and each other document or instrument now or hereafter executed and delivered by a Loan Party in connection with, pursuant to or relating to this Agreement (other than any Specified Derivatives Contract).

 

“Loan Party” means each of the Parent, the Borrower, each Guarantor and each other Person who guarantees all or a portion of the Obligations.  Schedule 1.1.(A) sets forth the Loan Parties in addition to the Parent and the Borrower as of the Agreement Date.

 

15

 

“Material Adverse Effect” means a materially adverse effect on (a) the business, assets, liabilities, condition (financial or otherwise), or results of operations of the Parent and its Subsidiaries taken as a whole, (b) the ability of the Parent, the Borrower or any other Loan Party to perform its obligations under any Loan Document to which it is a party, (c) the validity or enforceability of any of the Loan Documents, or (d) the rights and remedies of the Lenders and the Administrative Agent under any of the Loan Documents.

 

“Material Contract” means any contract or other arrangement (other than Loan Documents and Specified Derivatives Contracts), whether written or oral, to which the Parent, the Borrower, any other Subsidiary or any other Loan Party is a party as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could reasonably be expected to have a Material Adverse Effect.

 

“Material Indebtedness” has the meaning given that term in Section 10.1.(e)(i).

 

“Material Subsidiary” means (a) any Subsidiary of the Parent that owns, or otherwise has any interest in, any Eligible Property or any other property or asset that is taken into account when calculating Unencumbered Asset Value; (b) any Subsidiary (other than an Excluded Subsidiary) that has total assets greater than or equal to 5.0% of total assets of the Borrower determined on a consolidated basis (calculated as of the end of the fiscal quarter most recently ending for which financial statements are available) or (c) any Subsidiary (other than an Excluded Subsidiary) that has total revenues greater than or equal to 5.0% of the total revenues of the Borrower determined on a consolidated basis (calculated for the fiscal quarter most recently ending for which financial statements are available). In any event, the term “Material Subsidiaries” shall mean and include all Subsidiaries (other than Excluded Subsidiaries) of the Borrower, which, together with the Borrower, account for 90.0% or more of the Adjusted Total Revenue of the Borrower determined on a consolidated basis for the fiscal quarter most recently ended for which financial statements are available. If more than one combination of Subsidiaries satisfies such threshold, then those Subsidiaries so determined to be “Material Subsidiaries” shall be specified by the Borrower.

 

“Moody’s” means Moody’s Investors Service, Inc., and its successors.

 

“Mortgage Receivables” means a promissory note secured by a Lien in an interest in real property of which the Parent, the Borrower or another Subsidiary is the holder and retains the right 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.

 

“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 Operating Income” or “NOI” means, for any Storage 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 of business from operating such Property 

 

16

 

(including proceeds of rent loss insurance but excluding pre-paid rents and revenues and security deposits except to the extent applied in satisfaction of tenants’ obligations for rent) during such period minus (b) all expenses paid or accrued related to the ownership, operation or maintenance of such Property (other than those expenses normally covered by a management fee and other than Capital Expenditures), including, but not limited to, taxes, assessments and other similar charges, insurance, utilities, payroll costs, maintenance, repair and landscaping expenses and on-site marketing expenses during such period minus (c) the Reserves for Capital Expenditures for such Property for such period minus (d) the greater of (i) the actual property management fee paid during such period with respect to such Property and (ii) an imputed management fee in the amount of five percent (5.0%) of the gross revenues for such Property for such period.

 

“Net Proceeds” means with respect to any 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, listing fees, financial printing costs and other customary fees and expenses actually incurred by such Person in connection with such Equity Issuance.

 

“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.

 

“Nonrecourse Indebtedness” means, with respect to a Person, Indebtedness for borrowed money in respect of which recourse for payment (except for exceptions for fraud, misapplication of funds, environmental indemnities, bankruptcy, transfer of collateral in violation of the applicable loan documents, failure to obtain consent for subordinate financing in violation of the applicable loan documents and other exceptions to nonrecourse liability which are customary for nonrecourse financings at the time as determined by the Administrative Agent) is contractually limited to specific assets of such Person encumbered by a Lien securing such Indebtedness.  Liability of a Person under a completion guarantee, to the extent relating to the Nonrecourse Indebtedness of another Person, shall not, in and of itself, prevent such liability from being characterized as Nonrecourse Indebtedness.

 

“Note” means a Five Year Term Note or a Seven Year Term Note.

 

“Notice of Borrowing” means a notice in the form of Exhibit C to be delivered to the Administrative Agent pursuant to Section 2.1.(c) evidencing the Borrower’s request for the borrowing of the Loans.

 

“Notice of Continuation” means a notice in the form of Exhibit D to be delivered to the Administrative Agent pursuant to Section 2.6. evidencing the Borrower’s request for the Continuation of a LIBOR Loan.

 

“Notice of Conversion” means a notice in the form of Exhibit E to be delivered to the Administrative Agent pursuant to Section 2.7. evidencing the Borrower’s request for the Conversion of a Loan from one Type to another Type.

 

“Obligations” means, individually and collectively:  (a) the aggregate principal balance of, and all accrued and unpaid interest on, all Loans; and (b) all other indebtedness, liabilities, obligations, covenants and duties of the Borrower and the other Loan Parties owing to the Administrative Agent 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 

 

17

 

unliquidated, and whether or not evidenced by any promissory note.  The term “Obligations” does not include Specified Derivatives Obligations.

 

“Occupancy Rate” means, with respect to a Property at any time, the ratio, expressed as a percentage, of (a) aggregate leasable square footage of all completed space of such Property actually occupied by non-Affiliate tenants paying rent at market rates pursuant to binding leases as to which no monetary default has occurred and has continued for a period in excess of 60 days to (b) the aggregate leasable square footage of all completed space of such Property.

 

“OFAC” means U.S. Department of the Treasury’s Office of Foreign Assets Control and any successor Governmental Authority.

 

“Off-Balance Sheet Obligations” means liabilities and obligations of the Parent, the Borrower, any other Subsidiary or any other Person in respect of “off-balance sheet arrangements” (as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act) which the Parent would be required to disclose in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the Parent’s report on Form 10-Q or Form 10-K (or their equivalents) which the Parent is required to file with the Securities and Exchange Commission (or any Governmental Authority substituted therefor).

 

“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).

 

“PBGC” means the Pension Benefit Guaranty Corporation and any successor agency.

 

“Permitted Liens” means:  (a) 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 the claims of materialmen, mechanics, carriers, warehousemen or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, which are not at the time required to be paid or discharged under Section 7.6.; (b) Liens consisting of deposits or pledges made, in the ordinary course of business, in connection with, or to secure payment of, obligations under workers’ compensation, unemployment insurance or similar Applicable Laws; (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 materially and adversely 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 Person; (e) Liens in favor of the Administrative Agent for the benefit of the Lenders; (f) Liens in existence as of the Agreement Date and set forth in Part II of Schedule 6.1.(f); (g) in the case of any Excluded Subsidiary, Liens on the assets of such Excluded Subsidiary securing the Indebtedness of such Excluded Subsidiary that caused such Subsidiary to be an Excluded Subsidiary; (h) any Lien consisting of a purchase money security interest that secures purchase money Indebtedness permitted by Section 9.3. and incurred in the ordinary course of business in connection with the purchase of “Equipment” (as such term is defined in the UCC), provided such Lien is limited to the Equipment purchased; and (i) Liens on assets of the Borrower or any Guarantor securing obligations under Derivatives Contracts.

 

“Person” means an individual, corporation, partnership, limited liability company, association, trust or unincorporated organization, or a government or any agency or political subdivision thereof.

 

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“Plan” means 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 rate per annum equal to the Base Rate as in effect from time to time plus the Applicable Margin plus two percent (2.0%).

 

“Preferred Dividends” means, for any period and without duplication, all Restricted Payments paid during such period on Preferred Equity Interests issued by the Parent or any of its Subsidiaries.  Preferred Dividends shall not include dividends or distributions (a) to the extent paid or payable to the Parent or any of its Subsidiaries, or (b) constituting or resulting in the redemption of Preferred Equity Interests, other than scheduled redemptions not constituting balloon, bullet or similar redemptions in full.

 

“Preferred Equity Interests” means, with respect to any Person, Equity Interests in such Person which are entitled to preference or priority over any other Equity Interest in such Person in respect of the payment of dividends or distribution of assets upon liquidation or both.

 

“Prepayment Premium” means, if the Borrower elects to prepay the Five Year Term Loans on or prior to the second anniversary of the Effective Date pursuant to this Agreement or the Seven Year Term Loans on or prior to the third anniversary of the Effective Date pursuant to this Agreement, the amount equal to (x) the principal amount of the Five Year Term Loans or the Seven Year Term Loans, as applicable, to be prepaid multiplied by (y) the Prepayment Premium Percentage for Five Year Term Loans, or the Prepayment Premium Percentage for Seven Year Term Loans, as applicable.

 

“Prepayment Premium Percentage for Five Year Term Loans” means the percentage set forth in the following table corresponding to the period during which a prepayment of the Five Year Term Loan is permitted under this Agreement is made:

 

	
Period
    	
 
    	
Prepayment
   Premium Percentage
    	
 
    
	
On or prior to the first anniversary of the   Effective Date
    	
 
    	
2.0
    	
%
    
	
After the first anniversary of the Effective Date   and on or prior to the second anniversary of the Effective Date
    	
 
    	
1.0
    	
%
    
	
After the second anniversary of the Effective Date
    	
 
    	
0.0
    	
%
    

 

“Prepayment Premium Percentage for Seven Year Term Loans” means the percentage set forth in the following table corresponding to the period during which a prepayment of the Seven Year Term Loans is permitted under this Agreement is made:

 

	
Period
    	
 
    	
Prepayment
   Premium Percentage
    	
 
    
	
On or prior to the second anniversary of the   Effective Date
    	
 
    	
2.0
    	
%
    
	
After the second anniversary of the Effective Date   and on or prior to the third anniversary of the Effective Date
    	
 
    	
1.0
    	
%
    
	
After the third anniversary of the Effective Date
    	
 
    	
0.0
    	
%
    

 

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“Principal Office” means the office of the Administrative Agent located at 608 Second Ave. South, 11th Floor, Minneapolis, Minnesota 55402, or such other office of the Administrative Agent as the Administrative Agent may designate from time to time.

 

“Property” means any parcel of real property owned or leased (in whole or in part) or operated by the Parent, the Borrower, any Subsidiary or any Unconsolidated Affiliate of the Borrower.

 

“Qualified Plan” means a Benefit Arrangement that is intended to be tax-qualified under Section 401(a) of the Internal Revenue Code.

 

“Rating Agency” means S&P, Fitch or Moody’s.

 

“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.  Notwithstanding anything herein to the contrary, (a) the Dodd-Frank Wall 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.

 

“REIT” means a “real estate investment trust” under the Internal Revenue Code.

 

“Requisite Five Year Term Lenders” means, as of any date, Five Year Term Lenders holding at least 66-2/3% of the principal amount of the aggregate outstanding Five Year Term Loans (not held by Defaulting Lenders who are not entitled to vote); at all times when two or more Five Year Term Lenders (excluding Defaulting Lenders) are party to this Agreement, the term “Requisite Five Year Term Lenders” shall in no event mean less than two Five Year Term Lenders.  Five Year Term Loans held by Defaulting Lenders shall be disregarded when determining the Requisite Five Year Term Lenders.

 

“Requisite Lenders” means, as of any date, Lenders holding at least 66-2/3% of the principal amount of the aggregate outstanding Loans (not held by Defaulting Lenders who are not entitled to vote); 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 than two Lenders.  Loans held by Defaulting Lenders shall be disregarded when determining the Requisite Lenders.

 

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“Requisite Seven Year Term Lenders” means, as of any date, Seven Year Term Lenders holding at least 66-2/3% of the principal amount of the aggregate outstanding Seven Year Term Loans (not held by Defaulting Lenders who are not entitled to vote); at all times when two or more Seven Year Term Lenders (excluding Defaulting Lenders) are party to this Agreement, the term “Requisite Seven Year Term Lenders” shall in no event mean less than two Seven Year Term Lenders.  Seven Year Term Loans held by Defaulting Lenders shall be disregarded when determining the Requisite Seven Year Term Lenders.

 

“Reserves for Capital Expenditures” means, with respect to any Storage Property for any period, an amount equal to (a) the aggregate leasable square footage of all completed space of such Property multiplied by (b) $0.15 per square foot multiplied by (c) the number of days actually elapsed during such period divided by (d) 365.

 

“Responsible Officer” means with respect to the Parent, the Borrower or any Subsidiary, the chief executive officer, president and chief financial officer of the Parent, the Borrower or the corresponding officer of each such Subsidiary or, if any of the foregoing is a partnership, such officer of its general partner.

 

“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 payable solely in Equity Interests of an identical or junior class 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 Equity Interest of the Parent, the Borrower or any other Subsidiary now or hereafter outstanding; 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 Credit Agreement” means that certain Second Amended and Restated Credit Agreement dated as of September 29, 2010 by and among the Borrower, the financial institutions from time to time party thereto as “Lenders”, Wells Fargo, as Administrative Agent and the other parties thereto.

 

“Sanctioned Entity” means (a) an agency of the government of, (b) an organization directly or indirectly controlled by, or (c) a Person resident in, in each case, a country that is subject to a sanctions program identified on the list maintained by the OFAC and published from time to time, as such program may be applicable to such agency, organization or Person.

 

“Sanctioned Person” means a Person named on the list of Specially Designated Nationals or Blocked Persons maintained by the OFAC as published from time to time.

 

“Secured Indebtedness” means, with respect to a Person as of any given date, the aggregate principal amount of all Indebtedness of such Person outstanding at such date and that is secured in any manner by any Lien, and in the case of the Parent and any of its Subsidiaries, shall include (without duplication) the Parent’s and its Subsidiaries’ pro rata shares of the Secured Indebtedness of their Unconsolidated Affiliates.

 

“Secured Recourse Indebtedness” shall mean that portion of any Secured Indebtedness that is not Nonrecourse Indebtedness of the Borrower or a Guarantor.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, together with all rules and regulations issued thereunder.

 

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“Security Filing” has the meaning given that term in Section 8.4.(b).

 

“Seven Year  Term  Commitment” means, as an applicable Lender, a Lender’s obligation (a) to make a Loan pursuant to Section 2.1.(b) in an amount up to, but not exceeding, the amount set forth for such Lender on Schedule 1.1.(B) as such Lender’s “Seven Year Term Commitment Amount”.

 

“Seven Year Term Lender” means each Lender that has a Seven Year Term Commitment or is the holder of a Seven Year Term Loan.

 

“Seven Year Term  Loan” means a loan made by a Lender to the Borrower pursuant to Section 2.1.(b).

 

“Seven Year Term Loan Termination Date” means June 19, 2018.

 

“Seven  Year  Term Note” has the meaning given that term in Section 2.8.(b).

 

“Significant Subsidiary” means any Subsidiary to which 5.0% or more of Consolidated Adjusted Asset Value is attributable.

 

“Solvent” means, when used with respect to any Person, that (a) the fair value and the fair salable value of its assets (excluding any Indebtedness due from any Affiliate of such Person) 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 the 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 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 or any Subsidiary of the Borrower and a Specified Derivatives Provider.

 

“Specified Derivatives Obligations” means all indebtedness, liabilities, obligations, covenants and duties of the Parent, the Borrower or any other Loan Party, as applicable, 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 Lender, or any Affiliate of a Lender, that is a party to a Derivatives Contract at the time the Derivatives Contract is entered into.

 

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., and its successors.

 

“Storage Property” means a Property primarily operated as a self-storage facility.

 

“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 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

 

22

 

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.

 

“Supermajority Lenders” means, as of any date, Lenders holding at least 75% of the principal amount of the aggregate outstanding Loans (not held by Defaulting Lenders who are not entitled to vote); at all times when two or more Lenders (excluding Defaulting Lenders) are party to this Agreement, the term “Supermajority Lenders” shall in no event mean less than two Lenders.  Loans held by Defaulting Lenders shall be disregarded when determining the Supermajority Lenders.

 

“Tangible Net Worth” means, for any Person on any date of determination, (a) such Person’s total stockholders’ equity determined on a consolidated basis, plus (b) accumulated depreciation and amortization and, with respect to an asset that has been fully depreciated, the original book value of such asset, minus (c) the following (to the extent reflected in determining stockholders’ equity of such Person):  (i) the amount of any write-up in the book value of any assets contained in any balance sheet resulting from revaluation thereof or any write-up in excess of the cost of such assets acquired, and (ii) the aggregate of all amounts appearing on the assets side of any such balance sheet for assets which would be classified as intangible assets under GAAP, all determined on a consolidated basis.

 

“Taxes” has the meaning given that term in Section 3.12.

 

“Termination Date” means the Five Year Term Loan Termination Date or the Seven Year Term Loan Termination Date, as applicable.

 

“Titled Agents” means each of the Joint Lead Arrangers, the Joint Bookrunners, the Syndication Agent, and the Documentation Agents and their respective successors and permitted assigns.

 

“Transfer Authorizer Designation Form” means a form substantially in the form of Exhibit J to be delivered to the Administrative Agent pursuant to Section 2.9., as the same may be amended, restated or modified from time to time with the prior written approval of the Administrative Agent.

 

“Type” with respect to any Loan, refers to whether such Loan is a LIBOR Loan or Base Rate Loan.

 

“UCC” means the Uniform Commercial Code as in effect in any applicable jurisdiction.

 

“Unencumbered Asset Value” means on any date of determination, the sum of: (a) with respect to any Eligible Property that has been owned or leased for the four most recently ended fiscal quarters, an amount equal to (i) the Net Operating Income of such Eligible Property for the four full fiscal quarters of the Parent most recently ended, divided by (ii) the Capitalization Rate;  plus (b) with respect to any Eligible Property that has been owned or leased for the two most recently ended fiscal quarters but less than the three most recently ended fiscal quarters, an amount equal to (i) the product of (x) the Net Operating Income of such Eligible Property for the two full fiscal quarters of the Parent most recently ended multiplied by (y) 2, divided by (ii) the Capitalization Rate; plus (c) with respect to any Eligible Property that has been owned or leased for the three most recently ended fiscal quarters but less than the four most recently ended fiscal quarters, an amount equal to (i) the product of (x) the Net Operating Income of such Eligible Property for the three full fiscal quarters of the Parent most recently multiplied by (y) 4 and then divided by (z) 3, divided by (ii) the Capitalization Rate; plus (d) the GAAP book value of all Eligible Properties that have been owned or leased for less than two full fiscal quarters; Notwithstanding the foregoing, to the extent that Unencumbered Asset Value attributable to Properties (1) leased under Ground Leases would exceed 5.0% of Unencumbered Asset Value, such excess shall be

 

23

 

excluded and (2) having an Occupancy Rate of less than 60% would exceed 5.0% of Unencumbered Asset Value, such excess shall be excluded.

 

“Unencumbered NOI” means, for any period, the Net Operating Income attributable to all Eligible Properties for such period.

 

“Unconsolidated Affiliate” means, with respect to any Person, any other Person in which 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.

 

“Unsecured Indebtedness” means Indebtedness which is not Secured Indebtedness; provided, however, that “Unsecured Indebtedness” shall include Indebtedness that is both (a) only secured by a pledge of the Equity Interests of the Person that has incurred such Indebtedness and (b) recourse to the Borrower or to a Guarantor.

 

“Unsecured Interest Expense” means, with respect to a Person and for any period, all Interest Expense attributable to Consolidated Unsecured Indebtedness.

 

“Wells Fargo” means WELLS FARGO BANK, NATIONAL ASSOCIATION, together with its successors and assigns.

 

“Wholly Owned Subsidiary” means any Subsidiary of a Person in respect of which all of the equity securities or other ownership 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.

 

Section 1.2.  General; References to Times.

 

Unless otherwise indicated, all accounting terms, ratios and measurements shall be interpreted or determined in accordance with GAAP; provided that, if at any time any change in GAAP would affect the computation of any financial ratio or requirement 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 Requisite Lenders); 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 Borrower 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.  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 as of the date of this Agreement and from time to time thereafter to the extent not 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

 

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and plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, the feminine and the neuter.  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 Eastern time.  Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any election under Statement of Financial Accounting Standards 159 (or any other financial accounting standard promulgated by the Financial Accounting Standards Board having a similar result or effect) to value any Indebtedness or other liabilities of the Parent, the Borrower or any Subsidiary at “fair value”, as defined therein.

 

Section 1.3.  Financial Attributes of Non-Wholly Owned Subsidiaries.

 

When determining compliance by the Borrower or the Parent with any financial covenant contained in any of the Loan Documents, only the pro rata share of the Borrower or the Parent, as applicable, of the revenues, expenses, assets, liabilities and other financial statement items of a Subsidiary that is not a Wholly Owned Subsidiary shall be included; provided, however, for purposes of determining the Parent’s compliance with any such financial covenant the Borrower shall be considered to be a Wholly Owned Subsidiary of the Parent.

 

ARTICLE II. CREDIT FACILITIES

 

Section 2.1.  Loans.

 

(a)           Five Year Term Loan.  Subject to the terms and conditions hereof, on the Effective Date, each Five Year Term Lender severally and not jointly agrees to make a Five Year Term Loan to the Borrower in a principal amount equal to the amount of such Lender’s Five Year Term Commitment.  Upon a Five Year Term Lender’s making of its Five Year Term Loan, its Five Year Term Commitment shall automatically and permanently be reduced to $0.  Once repaid, the principal amount of a Five Year Term Loan may not be reborrowed.

 

(b)           Seven Year Term Loan.  Subject to the terms and conditions hereof, on the Effective Date, each Seven Year Term Lender severally and not jointly agrees to make a Seven Year Term Loan to the Borrower in a principal amount equal to the amount of such Lender’s Seven Year Term Commitment.  Upon a Seven Year Term Lender’s making of its Seven Year Term Loan, its Seven Year Term Commitment shall automatically and permanently be reduced to $0.  Once repaid, the principal amount of a Seven Year Term Loan may not be reborrowed.

 

(c)           Requesting Loans.  The Borrower shall give the Administrative Agent notice pursuant to the Notice of Borrowing of the borrowing of the Loans no later than 11:00 a.m. on the date three Business Days prior to the anticipated Effective Date and specifying the amount of Five Year Term Loans and Seven Year Term Loans to be borrowed.  Such Notice of Borrowing shall be irrevocable once given and binding on the Borrower.  Promptly after receipt of the Notice of Borrowing, the Administrative Agent shall notify each Lender of the proposed borrowing.

 

(d)           Disbursements of Loan Proceeds.  No later than 1:00 p.m. on the Effective Date, each Lender will make available for the account of its applicable Lending Office to the Administrative Agent at the Principal Office, in immediately available funds, the proceeds of the Loan to be made by such Lender.  Subject to satisfaction of the applicable conditions set forth in Article V. for such borrowing, the

 

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Administrative Agent will make the proceeds of such borrowing available to the Borrower in the account specified by the Borrower in the Transfer Authorizer Designation Form, no later than 4:00 p.m. on such date.

 

Section 2.2.  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 the Loan 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)            with respect to any portion of such Loan that is a Base Rate Loan, at the Base Rate (as in effect from time to time) plus the Applicable Margin; and

 

(ii)           with respect to any portion of such Loan that is a LIBOR Loan, at LIBOR for such Loan for the Interest Period therefor plus the Applicable Margin.

 

Notwithstanding the foregoing, while an Event of Default exists, the Borrower shall pay to the Administrative Agent for the account of each Lender interest at the Post-Default Rate on the outstanding principal amount of any Loan made by such Lender and on any other amount payable by the Borrower hereunder or under the 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).

 

(b)           Payment of Interest.  Accrued and unpaid interest on each Loan shall be payable (i) monthly in arrears on the first day of each calendar month, commencing with the first full calendar month occurring after the Effective Date, (ii) on any date that the principal balance of any Loan is repaid and (iii) 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.  Promptly after the determination of any interest rate provided for herein or any change therein, the Administrative Agent shall give notice thereof to the Lenders to which such interest is payable and to the Borrower.  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)           Inaccurate Financial Statements or Compliance Certificates.  If any financial statement or Compliance Certificate delivered pursuant to Section 8.3. is shown to be inaccurate as a result of any action or inaction on the part of the Borrower, and not as a result of any adjustments or modifications in GAAP or any other applicable accounting rules made subsequent to the delivery of any such financial statement or Compliance Certificate having a retroactive effect (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then (i) the Borrower shall immediately deliver to the Administrative Agent a correct Compliance Certificate for such Applicable Period and (ii) the Borrower shall immediately pay to the Administrative Agent for the account of the Lenders the additional accrued additional interest owing calculated based on such higher Applicable Margin for such Applicable Period, which payment shall be promptly applied by the Administrative Agent in accordance with Section 3.2. This subsection shall not in any way limit the rights of the Administrative Agent and Lenders (x) with respect to the last sentence of the immediately preceding subsection (a) or (y) under Article X.  The Borrower shall not be required to reimburse the Administrative Agent or the Lenders with respect to a Class of Loans in relation to any recalculation of interest or fees required by this provision at any time after the first anniversary of the Termination Date of such Class of Loans.

 

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Section 2.3.  Number of Interest Periods.

 

There may be no more than 8 different Interest Periods, in the aggregate and in any combination, for the Five Year Term Loans and the Seven Year Term Loans outstanding at the same time.

 

Section 2.4.  Repayment of Loans.

 

The Borrower shall repay the entire outstanding principal amount of, and all accrued but unpaid interest on, (i) the Five Year Term Loan on the Five Year Term Loan Termination Date and (ii) the Seven Year Term Loan on the Seven Year Term Loan Termination Date.

 

Section 2.5.  Prepayments.

 

(a)           Generally.  Subject to (i) Section 4.4. and (ii) the payment of the Prepayment Premium, if applicable, in immediately available funds, the Borrower may prepay the Loans, in whole or in part, at any time.  The Borrower shall give the Administrative Agent at least one Business Day’s prior written notice of the prepayment of any Loan and the Administrative Agent shall give each Lender notice of any such prepayment promptly upon receipt of such notice from Borrower.  The Borrower acknowledges and agrees that the Prepayment Premium payable by it in connection with the prepayment of the Loans is a reasonable calculation of the Lenders’ lost profits in view of the difficulties and impracticality of determining actual damages resulting from the prepayment of the Loans.

 

(b)           Derivatives Contracts.  No repayment or prepayment pursuant to this Section shall affect any of the Borrower’s obligations under any Derivatives Contract between the Borrower and any Lender (or any Affiliate of any Lender).

 

Section 2.6.  Continuation.

 

So long as no Default or Event of Default shall exist, 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 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 11:00 a.m. on the third Business Day prior to the date of any such Continuation.  Such notice by the Borrower of a Continuation shall be by telephone or telecopy, confirmed immediately in writing if by telephone, in the form of a Notice of Continuation, specifying (a) the proposed date of such Continuation, (b) the LIBOR Loans and portions thereof subject to such Continuation and (c) the duration of the selected Interest Period, 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 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, or if a Default or Event of Default shall exist, 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 2.7. or the Borrower’s failure to comply with any of the terms of such Section.

 

Section 2.7.  Conversion.

 

The Borrower may on any Business Day, upon the Borrower’s giving of a Notice of Conversion to the Administrative Agent, Convert all or a portion of a Loan of one Type into a Loan of another Type;

 

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provided, however, a Base Rate Loan may not be Converted to a LIBOR Loan if a Default or Event of Default shall exist.  Any Conversion of a LIBOR Loan into a Base Rate Loan shall be made on, and only on, the last day of an Interest Period for such LIBOR Loan.  Each such Notice of Conversion shall be given not later than 11:00 a.m. on the Business Day prior to the date of any proposed Conversion into Base Rate Loans and on the third Business Day prior to the date of any proposed Conversion into LIBOR Loans.  Promptly after receipt of a Notice of Conversion, the Administrative Agent shall notify each Lender of the proposed Conversion.  Subject to the restrictions specified above, each Notice of Conversion shall be by telephone (confirmed immediately in writing) or telecopy in the form of a Notice of Conversion specifying (a) the requested date of such Conversion, (b) the Type 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.  Each Notice of Conversion shall be irrevocable by and binding on the Borrower once given.

 

Section 2.8.  Notes.

 

(a)           Five Year Term Notes.  Except in the case of a Five Year Term Lender that has requested not to receive a Five Year Term Note (defined below), the Five Year Term Loan made by a Five Year Term Lender shall, in addition to this Agreement, also be evidenced by a promissory note of the Borrower substantially in the Form of Exhibit F (each a “Five Year Term Note”), payable to the order of such Five Year Term Lender and otherwise duly completed.

 

(b)           Seven Year Term Notes.  Except in the case of a Seven Year Term Lender that has requested not to receive a Seven Year Term Note (defined below), the Seven Year Term Loan made by a Seven Year Term Lender shall, in addition to this Agreement, also be evidenced by a promissory note of the Borrower substantially in the Form of Exhibit G (each a “Seven Year Term Note”), payable to the order of such Seven Year Term Lender and otherwise duly completed.

 

(c)           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 the failure of a Lender to make any such record shall not affect the obligations of the Borrower under any of the Loan Documents.

 

(d)           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 execute and deliver to such Lender a new Note dated the date of such lost, stolen, destroyed or mutilated Note.

 

Section 2.9.  Funds Transfer Disbursements.

 

(a)           Generally.  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 Transfer Authorizer Designation Form.  The Borrower agrees to be bound by any transfer request: (i) authorized or transmitted by the Borrower; or (ii) made in the Borrower’s name and accepted by the Administrative Agent in good faith and in compliance with these transfer instructions, even if not properly authorized by the Borrower.  The Borrower further agrees and acknowledges that the Administrative Agent may rely solely on any bank routing number or identifying bank account number or

 

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name provided by the Borrower to effect a wire of funds transfer even if the information provided by the Borrower identifies a different bank or account holder than named by the Borrower.  The Administrative Agent is not obligated or required in any way to take any actions to detect errors in information provided by the Borrower.  If the Administrative Agent takes any actions in an attempt to detect errors in the transmission or content of transfer requests or takes any actions in an attempt to detect unauthorized funds transfer requests, the Borrower agrees that no matter how many times the Administrative Agent takes these actions the 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 transfer disbursement procedures authorized under this provision, the Loan Documents, or any agreement between the Administrative Agent and the Borrower.  The Borrower agrees to notify the Administrative Agent of any errors in the transfer of any funds or of any unauthorized or improperly authorized transfer requests within fourteen (14) days after the Administrative Agent’s confirmation to the Borrower of such transfer.

 

(b)           Funds Transfer.  The Administrative Agent will, in its sole discretion, determine the funds transfer system and the means by which each transfer will be made.  The Administrative Agent may delay or refuse to accept a funds transfer request if the transfer would: (i) violate the terms of this authorization; (ii) require the use of a bank unacceptable to the Administrative Agent or any Lender or prohibited by any Governmental Authority; (iii) cause the Administrative Agent or any Lender, in their reasonable judgment, to violate any regulatory risk control program or guideline promulgated by the Board of Governors of the Federal Reserve System or any other similar program or guideline; or (iv) otherwise cause the Administrative Agent or any Lender to violate any Applicable Law.

 

(c)           Limitation of Liability.  Neither the Administrative Agent nor any Lender shall be liable to the 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 the Borrower’s transfers may be made or information received or transmitted, and no such entity shall be deemed an agent of the Administrative Agent 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 or any Lender’s control, or (iii) any special, consequential, indirect or punitive damages, whether or not (x) any claim for these damages is based on tort or contract or (y) the Administrative Agent, any Lender or the Borrower knew or should have known the likelihood of these damages in any situation; provided, however, that, the Administrative Agent and the Lenders shall be liable to the extent any of the above were the result of the Administrative Agent’s or Lenders’ gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment.  Neither the Administrative Agent nor any Lender makes any representations or warranties other than those expressly made in this Agreement.

 

Section 2.10.  Additional Loans.

 

(a)           The Borrower shall have the right at any time prior to the Termination Date of the applicable Class of Loans to request additional Five Year Term Loans and/or Seven Year Term Loans (each, an “Additional Loan”) by providing written notice to the Administrative Agent, which notice shall be irrevocable once given and shall specify whether such Additional Loans shall be Five Year Term Loans or Seven Year Term Loans.  Such Additional Loans must be in integral multiples of $5,000,000; provided, that the aggregate amount of all Additional Loans shall not exceed $50,000,000.  Any such Additional Loans may be made by either an existing Lender or any other bank, financial institution or institutional lender that becomes a Lender hereunder (any such other bank, financial institution or institutional Lender, an “Additional Lender”); provided that such Additional Loan shall be on the same terms and conditions as the existing Class of Loans corresponding to such Additional Loan, except that (i) the interest rate margin and any prepayment premium applicable to any Additional Loans shall be determined by the Borrower and the existing Lenders and/or or the Additional Lenders providing such

 

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Additional Loans pursuant to the terms of the applicable Additional Loan Amendment (defined below) and (ii) the Effective Yield applicable to such Additional Loans may differ from that applicable to the then outstanding Class of Loans corresponding to such Additional Loans; provided further, however, that if the Effective Yield for such Additional Loans exceeds the Effective Yield of the then outstanding Class of Loans corresponding to such Additional Loans by more than 0.50% per annum, the Applicable Margin for such Class of Loans shall be increased as of the date of the making of the applicable Additional Loans to the extent necessary so that the Effective Yield for such Class of Loans is equal to (x) the Effective Yield of such Additional Loans minus (y) 0.50%.  No existing Lender shall be required to make any Additional Loan hereunder and any Additional Lender making an Additional Loan must be an Eligible Assignee.  Any Additional Loans to be made under this Section shall only be effected by an amendment (an “Additional Loan Amendment”) to this Agreement and, as appropriate, the other Loan Documents, executed by the Parent, the Borrower, each existing Lender or Additional Lender, as applicable, agreeing to provide such Additional Loans, and the Administrative Agent.  An Additional Loan Amendment may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section.  Effecting the increase of the 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, (y) the representations and warranties made or deemed made by the Borrower or 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 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 on and as of such earlier date) and except for changes in factual circumstances specifically and expressly permitted 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 corporate and other necessary action taken by the Borrower to authorize such increase and (B) all corporate and other necessary action taken by each Guarantor authorizing the guaranty of such increase; (ii) an opinion of counsel to the Borrower and the Guarantors, and addressed to the Administrative Agent and the Lenders covering such matters as reasonably requested by the Administrative Agent, and (iii) except in the case of a Five Year Term Lender or Seven Year Term Lender, as applicable, that has requested not to receive a Five Year Term Note or a Seven Year Term Note, as applicable, new Notes executed by the Borrower, payable to any Additional Lenders and replacement Notes executed by the Borrower, payable to any existing Lenders providing Additional Loans, in the aggregate principal amount of such Lender’s Loans at the time of the effectiveness of the applicable increase in the aggregate principal amount of the Loans.  In connection with the making of any Additional Loans pursuant to this Section any Person becoming a “Lender” shall execute such documents and agreements as the Administrative Agent may reasonably request.

 

(b)           This Section 2.10. shall supersede any provisions in Section 12.6. to the contrary, other than Section 12.6.(d).

 

ARTICLE III. PAYMENTS, FEES AND OTHER GENERAL PROVISIONS

 

Section 3.1.  Payments.

 

(a)           Payments by the Borrower. Except to the extent otherwise provided herein, all payments of principal, interest and other amounts to be made by the Borrower under this Agreement or any other Loan Document shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to the Administrative Agent at its Principal Office, not later than 2:00 p.m. on the date on which such payment shall become due (each such payment made after such time on such due date to be

 

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deemed to have been made on the next succeeding Business Day).  Subject to Section 10.4., 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; provided, however, if an Event of Default shall exist at the time of the making of such payment, such payments shall be applied as follows: first to payments of interest on all Loans, to be split pro rata between each Class of Loan, and to be applied for the ratable benefit of the Lenders of each Class of Loans and second, to payments of principal of all Loans, to be split pro rata between each Class of Loan, and to be applied for the ratable benefit of the Lenders of each Class of Loans.  Each payment received by the Administrative Agent for the account of a Lender under this Agreement or any other Loan Document shall be paid 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.  If the Administrative Agent fails to pay such amounts to such Lender, within one Business Day of receipt of such amounts, the Administrative Agent shall pay interest on such amount at a rate per annum equal to the Federal Funds Rate from time to time in effect.  If the due date of any payment 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 be payable 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 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 Lenders the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent on demand that amount so distributed to such Lender, 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) the making of the Five Year Term Loans by the Five Year Term Lenders under Section 2.1.(a) shall be pro rata according to the amounts of the Five Year Term Lenders’ Five Year Term Commitments and the making of the Seven Year Term Loans by the Seven Year Term Lenders under Section 2.1.(b) shall be pro rata according to the amounts of the Seven Year Term Lenders’ Seven Year Term Commitments; (b) each payment or prepayment of principal of Five Year Term Loans by the Borrower shall be made for the account of the Five Year Term Lenders pro rata in accordance with the unpaid principal amounts of the Five Year Term Loans held by them, and each payment or prepayment of principal of Seven Year Term Loans by the Borrower shall be made for the account of the Seven Year Term Lenders pro rata in accordance with the unpaid principal amounts of the Seven Year Term Loans held by them, except as an Additional Lender may otherwise agree in an Additional Loan Amendment; (c) each payment of interest on the Five Year Term Loans by the Borrower shall be made for the account of the Five Year Term Lenders pro rata in accordance with the amounts of interest on the Five Year Term Loans then due and payable to the Five Year Term Lenders and each payment of interest on the Seven Year Term Loans by the Borrower shall be made for the account of the Seven Year Term Lenders pro rata in accordance with the amounts of interest on the Seven Year Term Loans then due and payable to the Seven Year Term Lenders; and (d) the Conversion and Continuation of Five Year Term Loans of a particular Type (other than Conversions provided for by Section 4.6.) shall be made pro rata among the Five Year Term Lenders according to the amounts of their respective Five Year Term Loans and the Conversion and Continuation of Seven Year Term Loans of a particular Type (other 

 

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than Conversions provided for by Section 4.6.) shall be made pro rata among the Seven Year Term Lenders according to the amounts of their respective Seven Year Term Loans, and the then current Interest Period for each Lender’s portion of each such Loan of such Type shall be coterminous.

 

Section 3.3.  Sharing of Payments, Etc.

 

If a Lender shall obtain payment of any principal of, or interest on, any Loan 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 or counterclaim or similar right or otherwise or through voluntary prepayments directly to a Lender or other payments made by 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 pro rata in accordance with Section 3.2. or Section 10.4., as applicable, such Lender shall promptly purchase from the other Lenders participations in (or, if and to the extent specified by such Lender, direct interests in) the Loans made by the other Lenders 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 shall, subject to Section 3.11. if applicable, share the benefit of such payment (net of any reasonable expenses which may be incurred by such Lender in obtaining or preserving such benefit) pro rata in accordance with Section 3.2. or Section 10.4., as applicable.  To such end, all the Lenders 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 so purchasing a participation (or direct interest) in the Loans or other Obligations owed to such other Lenders 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 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.  Minimum Amounts.

 

(a)           Borrowings and Conversions.  Each borrowing Conversion and Continuation of LIBOR Loans shall be in an aggregate minimum amount of $500,000 and integral multiples of $500,000 in excess of that amount.

 

(b)           Prepayments.  Each voluntary prepayment of Loans shall be in an aggregate minimum amount of $1,000,000 and integral multiples of $500,000 in excess thereof (or, if less, the aggregate principal amount of the Five Year Term Loans or Seven Year Term Loans, as applicable, then outstanding).

 

Section 3.6.  Fees.

 

The Borrower agrees to pay the administrative and other fees of the Administrative Agent as may be agreed to in writing by the Borrower and the Administrative Agent from time to time.

 

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Section 3.7.  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; provided, however, interest on Base Rate Loans shall be computed on the basis of a year of 365 or 366 days, as applicable, and the actual number of days elapsed.

 

Section 3.8.  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.

 

Section 3.9.  Agreement Regarding Interest and Charges.

 

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 Sections 2.2.(a)(i) and (ii).  Notwithstanding the foregoing, the parties hereto further agree and stipulate that all agency fees, syndication fees, closing fees, underwriting fees, default charges, Prepayment Premiums, 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 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 3.10.  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 3.11.  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

 

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definition of Requisite Lenders, Requisite Five Year Term Lenders, Requisite Seven Year Term Lenders or Supermajority Lenders.

 

(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, 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; third, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fourth, 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 fifth, 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 in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Article V. were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with their respective Commitment Percentages).  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 pursuant to this subsection shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

 

(c)           Defaulting Lender Cure.  If the Borrower and the Administrative Agent 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, such Lender will make such adjustments as the Administrative Agent may determine to be necessary to cause the interest of the Lenders in the Loans to be on a pro rata basis in accordance with their respective Commitment Percentages, whereupon such Lender will cease to be a Defaulting Lender; provided, 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.

 

Section 3.12.  Taxes; Foreign Lenders.

 

(a)           Taxes Generally.  All payments by the Borrower of principal of, and interest on, the Loans and all other Obligations shall be made free and clear of and without deduction for any present or future excise, stamp or other taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding (i) franchise taxes, (ii) any taxes (other than withholding taxes) that would not be imposed but for a connection between the Administrative Agent or a Lender and the jurisdiction imposing such taxes (other than a connection arising solely by virtue of the activities of the Administrative Agent or such Lender pursuant to or in respect of this Agreement or any other Loan Document), (iii)  any taxes imposed on or measured by any Lender’s assets, net income, receipts or branch profits, (iv) any taxes arising after the Agreement Date solely as a result of or attributable to a Lender changing its designated Lending Office after the date such Lender becomes a party hereto and (v) any taxes imposed by Sections 1471 through Section 1474 of the

 

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Internal Revenue Code (including any official interpretations thereof, collectively “FATCA”) on any “withholdable payment” payable to a recipient as a result of the failure of such recipient to satisfy the applicable requirements as set forth in FATCA after December 31, 2012 (such non-excluded items being collectively called “Taxes”).  If any withholding or deduction from any payment to be made by the Borrower hereunder is required in respect of any Taxes pursuant to any Applicable Law, then the Borrower will:

 

(i)            pay directly to the relevant Governmental Authority the full amount required to be so withheld or deducted;

 

(ii)           promptly forward to the Administrative Agent an official receipt or other documentation satisfactory to the Administrative Agent evidencing such payment to such Governmental Authority; and

 

(iii)          pay to the Administrative Agent for its account or the account of the applicable Lender such additional amount or amounts as is necessary to ensure that the net amount actually received by the Administrative Agent or such Lender will equal the full amount that the Administrative Agent or such Lender would have received had no such withholding or deduction been required.

 

(b)           Tax Indemnification.  If the Borrower fails to pay any Taxes when due to the appropriate Governmental Authority or fails to remit to the Administrative Agent, for its account or the account of the respective Lender, the required receipts or other required documentary evidence, the Borrower shall indemnify the Administrative Agent and the Lenders for any incremental Taxes, interest or penalties that may become payable by the Administrative Agent or any Lender as a result of any such failure.  For purposes of this Section, a distribution hereunder by the Administrative Agent or any Lender to or for the account of any Lender shall be deemed a payment by the Borrower.

 

(c)           Tax Forms.  Prior to the date that any Foreign Lender becomes a party hereto, such Foreign Lender shall deliver to the Borrower and the Administrative Agent such certificates, documents or other evidence, as required by the Internal Revenue Code or Treasury Regulations issued pursuant thereto (including Internal Revenue Service Forms W-8ECI and W-8BEN, as applicable, or appropriate successor forms), properly completed, currently effective and duly executed by such Foreign Lender establishing that payments to it hereunder and under the Notes are (i) not subject to United States Federal backup withholding tax and (ii) not subject to United States Federal withholding tax imposed under the Internal Revenue Code.  Each such Foreign Lender shall, to the extent it may lawfully do so, (x) deliver further copies of such forms or other appropriate certifications on or before the date that any such forms expire or become obsolete and after the occurrence of any event requiring a change in the most recent form delivered to the Borrower or the Administrative Agent and (y) obtain such extensions of the time for filing, and renew such forms and certifications thereof, as may be reasonably requested by the Borrower or the Administrative Agent.  The Borrower shall not be required to pay any amount pursuant to the last sentence of subsection (a) above to any Foreign Lender or the Administrative Agent, if it is organized under the laws of a jurisdiction other than that in which the Borrower is a resident for tax purposes, if such Foreign Lender or the Administrative Agent, as applicable, fails to comply with the requirements of this subsection.  If any such Foreign Lender, to the extent it may lawfully do so, fails to deliver the above forms or other documentation, then the Administrative Agent may withhold from any payments to such Foreign Lender under any of the Loan Documents such amounts as are required by the Internal Revenue Code. If any Governmental Authority asserts that the Administrative Agent did not properly withhold or backup withhold, as the case may be, any tax or other amount from payments made to or for the account of any Lender, such Lender shall indemnify the Administrative Agent therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Administrative Agent under

 

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this Section, and costs and expenses (including all reasonable fees and disbursements of any law firm or other external counsel and the allocated cost of internal legal services and all disbursements of internal counsel) of the Administrative Agent.  The obligation of the Lenders under this Section shall survive the termination of the Commitments, repayment of all Obligations and the resignation or replacement of the Administrative Agent.

 

(d)           USA Patriot Act Notice; Compliance.   In order for the Administrative Agent to comply with the USA Patriot Act of 2001 (Public Law 107-56), prior to any Lender or Participant 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 or Participant 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.

 

ARTICLE IV. YIELD PROTECTION, ETC.

 

Section 4.1.  Additional Costs; Capital Adequacy.

 

(a)           Capital Adequacy.  If any Lender or any Participant determines that compliance with any law or regulation or with any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law) affects or would affect the amount of capital required or expected to be maintained by such Lender or such Participant, or any corporation controlling such Lender or such Participant, as a consequence of, or with reference to, such Lender’s or such Participant’s or such corporation’s Commitments or its maintaining Loans below the rate which such Lender or such Participant or such corporation controlling such Lender or such Participant could have achieved but for such compliance (taking into account the policies of such Lender or such Participant or such corporation with regard to capital), then the Borrower shall, from time to time, within thirty (30) calendar days after written demand by such Lender or such Participant, pay to such Lender or such Participant additional amounts sufficient to compensate such Lender or such Participant or such corporation controlling such Lender or such Participant to the extent that such Lender or such Participant determines such increase in capital is allocable to such Lender’s or such Participant’s obligations hereunder.  Any Participant’s right to receive compensation pursuant to this subsection (a) is limited by the terms of Section 12.5.(d) and (e).

 

(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 each affected 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 maintaining of 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 Loans or such obligation or the maintenance by such Lender of capital in respect of its Loans or its Commitments (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), to the extent 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 Loans or its Commitments (other than taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges which are excluded from the definition of Taxes pursuant to the first sentence of Section 3.12.(a)); or (ii) imposes or modifies any reserve, special deposit or similar requirements (other than Regulation D of the Board of Governors of the Federal Reserve System or other reserve requirement to the extent utilized in the determination of LIBOR for such Loan) relating to any extensions of credit or other assets of, or any deposits with or other liabilities of, such Lender, or any commitment of such Lender (including, without limitation, the Commitments of such Lender hereunder); or (iii) has or would have the effect of reducing the rate of return on capital of such Lender to a level

 

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below that which such Lender could have achieved but for such Regulatory Change (taking into consideration such Lender’s policies with respect to capital adequacy).

 

(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 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 Continue, or to Convert any other Type of Loans into, LIBOR Loans hereunder shall be suspended until such Regulatory Change ceases to be in effect (in which case the provisions of Section 4.6. shall apply).

 

(d)           Notification and Determination of Additional Costs.  Each of the Administrative Agent and each Lender and each Participant, as the case may be, agrees to notify the Borrower of any event occurring after the Agreement Date entitling the Administrative Agent or such Lender or such Participant to compensation under any of the preceding subsections of this Section as promptly as practicable; provided, however, the failure of the Administrative Agent or any Lender or any Participant to give such notice shall not release the Borrower from any of its obligations hereunder.  The Administrative Agent or such Lender or such Participant agrees to furnish to the Borrower (and in the case of a Lender or a Participant, to the Administrative Agent) a certificate setting forth in reasonable detail the basis and amount of each request by the Administrative Agent or such Lender for compensation under this Section.  Absent manifest error, determinations by the Administrative Agent or any Lender or any Participant of the effect of any Regulatory Change shall be conclusive, provided that such determinations are made on a reasonable basis and in good faith.

 

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:

 

(a)           the Administrative Agent reasonably determines (which determination shall be conclusive) that by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining LIBOR for such Interest Period, or

 

(b)           the Administrative Agent reasonably determines (which determination shall be conclusive) that 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 an Interest Period is to be determined are not likely to adequately cover the cost to any Lender of maintaining such LIBOR Loans;

 

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 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 repay such Loan or Convert such Loan into a Base Rate Loan.

 

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Section 4.3.  Illegality.

 

Notwithstanding any other provision of this Agreement, if any Lender shall reasonably determine (which determination shall be conclusive and binding) that it has become unlawful for such Lender to honor its obligation to maintain LIBOR Loans hereunder, then such Lender shall promptly notify the Borrower thereof (with a copy to the Administrative Agent) and such Lender’s obligation to Continue, or to Convert Loans of any other Type into, LIBOR Loans shall be suspended until such time as such Lender may again maintain LIBOR Loans (in which case the provisions of Section 4.6. 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 such Lender through the Administrative Agent, such amount or amounts as shall be sufficient (in the reasonable opinion of such Lender) to compensate it for any loss, cost or expense that such Lender reasonably determines is 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 Article V. to be satisfied) to borrow a LIBOR Loan from such Lender on the requested 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.

 

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 applicable Interest Period at the rate applicable to such LIBOR Loan, less (b) the amount of interest that would accrue on the same LIBOR Loan or 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, calculating present value by using as a discount rate LIBOR quoted on such date.  Upon the Borrower’s request, any Lender requesting compensation under this Section shall provide the Borrower with a statement setting forth in reasonable detail the basis for requesting such compensation and the method for determining the amount thereof.  Absent manifest error, determinations by any Lender in any such statement shall be conclusive, provided that such determinations are made on a reasonable basis and in good faith.

 

Section 4.5.  Affected Lenders.

 

If (a) a Lender requests compensation pursuant to Section 3.12. or 4.1., and the Requisite Lenders are not also doing the same, or (b) the obligation of any Lender to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 4.1.(c) or 4.3. but the obligation of the Requisite Lenders shall not have been suspended under such Sections, then, so long as there does not then exist any Default or Event of Default, the Borrower may demand that such Lender (the “Affected Lender”), and upon such demand the Affected Lender shall promptly, assign its Loans to an Eligible Assignee subject to and in accordance with the provisions of Section 12.5.(b) for a purchase price equal to the aggregate principal balance of all Loans then owing to the Affected Lender plus any accrued but unpaid interest thereon 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

 

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of such Affected Lender under this Section, but at no time shall the Administrative Agent, such Affected Lender nor any other Lender 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 Section 3.12. or 4.1. with respect to periods up to the date of replacement.

 

Section 4.6.  Treatment of Affected Loans.

 

If the obligation of any Lender to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 4.1.(c) or 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) or 4.3., on such earlier date as such Lender may specify to the Borrower with a copy to the Administrative Agent) and, unless and until such Lender gives notice as provided below that the circumstances specified in Section 4.1. or 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 gives notice to the Borrower (with a copy to the Administrative Agent) that the circumstances specified in Section 4.1. 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 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.

 

Section 4.7.  Change of Lending Office.

 

Each Lender agrees that it will use reasonable efforts (consistent with 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 Section 3.12., 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 IV. 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

 

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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 IV.

 

ARTICLE V. CONDITIONS PRECEDENT

 

Section 5.1.  Initial Conditions Precedent.

 

The obligation of the Lenders to make the Loans is subject to the following conditions precedent:

 

(a)           The Administrative Agent shall have received each of the following, in form and substance reasonably satisfactory to the Administrative Agent:

 

(i)            Counterparts of this Agreement executed by each of the parties hereto;

 

(ii)           (A) Five Year Term Notes executed by the Borrower, payable to each Five Year Term Lender (other than any Five Year Term Lender that has requested that it not receive a Five Year Term Note) and complying with the applicable provisions of Section 2.8.(a) and (B) Seven Year Term Notes executed by the Borrower, payable to each Seven Year Term Lender (other than any Seven Year Term Lender that has requested that it not receive a Seven Year Term Note) and complying with the applicable provisions of Section 2.8.(b);

 

(iii)          The Guaranty executed by the Parent and each other Guarantor existing as of the Effective Date;

 

(iv)          A Transfer Authorizer Designation Form effective as of the Agreement Date;

 

(v)           An opinion of counsel to the Loan Parties, addressed to the Administrative Agent and, the Lenders, addressing the matters set forth in Exhibit H;

 

(vi)          The articles of incorporation, articles of organization, certificate of limited partnership, declaration of trust or other comparable organizational instrument (if any) of the Borrower and each other Loan Party certified as of a recent date by the Secretary of State (or comparable official) of the state of formation of such Loan Party;

 

(vii)         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 (or comparable official) of the state of formation of each such Loan Party and certificates of qualification to transact business or other comparable certificates issued by each Secretary of State (or comparable official and any state department of taxation, as applicable) of each state in which such Loan Party is required to be so qualified and where the failure to be so qualified could reasonably be expected to have a Material Adverse Effect;

 

(viii)        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, the officers of the Borrower then authorized to deliver the Notice of Borrowing and Notices of Continuation and Notices of Conversion;

 

(ix)           Copies certified by the Secretary or Assistant Secretary (or other individual performing similar functions) of each Loan Party of (x) the by-laws of such Loan Party, if a

 

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corporation, the operating agreement of such Loan Party, if a limited liability company, the partnership agreement of such Loan Party, if a limited or general partnership, or other comparable document in the case of any other form of legal entity and (y) 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;

 

(x)            If requested by the Administrative Agent, certificates of insurance evidencing the existence of all insurance required to be maintained by Loan Parties pursuant to the Agreement, and the Administrative Agent shall be reasonably satisfied with the type and extent of such coverage;

 

(xi)           The Fees then due and payable under Section 3.6., and any other Fees payable to the Administrative Agent, the Titled Agents and the Lenders on or prior to the Effective Date;

 

(xii)          A Compliance Certificate calculated as of March 31, 2011 (giving pro forma effect to the financing contemplated by this Agreement and the use of the proceeds of the Loans to be funded on the Effective Date); and

 

(xiii)         Such other documents, agreements and instruments as the Administrative Agent on behalf of the Lenders may reasonably request; and

 

(b)           In the good faith judgment of the Administrative Agent  and the Lenders:

 

(i)            There shall not have occurred or become known to the Administrative Agent  or any of the Lenders any event, condition, situation or status since the date of the information contained in the financial and business projections, budgets, pro forma data and forecasts concerning the Parent, the Borrower and the other Subsidiaries delivered to the Administrative Agent and the Lenders prior to the Agreement Date that has had or could reasonably be expected to result in a Material Adverse Effect;

 

(ii)           No litigation, action, suit, investigation or other arbitral, administrative or judicial proceeding shall be pending or threatened which could reasonably be expected to (1) result in a Material Adverse Effect or (2) restrain or enjoin, impose materially burdensome conditions on, 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;

 

(iii)          The Parent, the Borrower 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 (1) any Applicable Law or (2) any agreement, document or instrument to which the Borrower or any other 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 would not reasonably be likely to (A) have a Material Adverse Effect, or (B) restrain or enjoin, impose materially burdensome conditions on, 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

 

(iv)          There shall not have occurred or exist any other material adverse change or material disruption in the loan syndication, financial, banking or capital markets that, in the reasonable judgment of the Sole Lead Arranger, has impaired or could reasonably be expected to

 

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impair, the syndication of the Loans, either (i) occurring on or after May 18, 2011, or (ii) occurring prior to May 18, 2011 but becoming known to the Sole Lead Arranger after May 18, 2011.

 

Section 5.2.  Conditions Precedent to All Loans.

 

The obligations of the Lenders to make the Loans are all subject to the further condition precedent that: (a) no Default or Event of Default shall exist as of the date of the making of the Loans or would exist immediately after giving effect thereto; and (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 on and as of the date of the making of such Loan 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 on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  Each Credit Event shall constitute a certification by the Borrower to the effect set forth in clauses (a) and (b) of 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, if such Credit Event is the making of a Loan, the Borrower shall be deemed to have represented to the Administrative Agent and the Lenders at the time such Loan is made that all conditions to the occurrence of such Credit Event contained in this Article V. 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, each of the Parent and the Borrower represents and warrants to the Administrative Agent and each Lender as follows:

 

(a)           Organization; Power; Qualification.  Each of the Parent, the Borrower, the other Loan Parties, and each other Subsidiary is a corporation, partnership, trust 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, trust 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 and where the failure to be so qualified or authorized could reasonably be expected to have, in each instance, a Material Adverse Effect.

 

(b)           Ownership Structure.  As of the Agreement Date, Part I of Schedule 6.1.(b) is a complete and correct list of all Subsidiaries of the Parent setting forth for each such Subsidiary, (i) the jurisdiction of organization of such Subsidiary, (ii) each Person holding any Equity Interests in such Subsidiary, (iii) the nature of the Equity Interests held by each such Person, (iv) the percentage of ownership of such Subsidiary represented by such Equity Interests and (v) whether such Subsidiary is a Material Subsidiary and/or an Excluded Subsidiary. Except as disclosed in such Schedule, as of the Agreement Date (i) each of the Borrower and its Subsidiaries owns, free and clear of all Liens (other than Permitted Liens), and has the unencumbered right to vote, all outstanding Equity Interests in each Person shown to be held by it on such Schedule, (ii) all of the issued and outstanding capital stock of each such Person organized as a

 

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corporation is validly issued, fully paid and nonassessable and (iii) 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, any such Person.  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 in such Person held directly or indirectly by the Parent.

 

(c)           Authorization of Agreement, Etc.  The Borrower has the right and power, and has taken all necessary action to authorize it, to borrow and obtain other extensions of credit hereunder.  The Parent, the Borrower and each other Loan Party has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform each of the Loan Documents to which it is a party in accordance with their respective terms and to consummate the transactions contemplated hereby and thereby.  The Loan Documents 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 (other than the payment of principal) contained herein or therein and as may be limited by equitable principles generally.

 

(d)           Compliance of Loan Documents with Laws, Etc.  The execution, delivery and performance of this Agreement, the Notes and the other Loan Documents to which the Parent, the Borrower or any other Loan Party is a party 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 indenture, agreement or other 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 the Parent, the Borrower or any other Loan Party other than Liens created under the Loan Documents.

 

(e)           Compliance with Law; Governmental Approvals.  Each of the Parent, the Borrower, each other Loan Party and each other Subsidiary is in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable Laws (including without limitation, Environmental Laws) relating to the Parent, the Borrower, such other Loan Party or such other Subsidiary except for noncompliances which, and Governmental Approvals the failure to possess which, could not, individually or in the aggregate, reasonably be expected to cause a Default or Event of Default or have a Material Adverse Effect.

 

(f)            Title to Properties; Liens.  As of the Agreement Date, Part I of Schedule 6.1.(f) is a complete and correct listing of all of the real property owned or leased by the Parent, the Borrower, each other Loan Party and each other Subsidiary.  Each such Person has good, marketable and legal title to, or a valid leasehold interest in, its respective assets.  As of the Agreement Date, there are no Liens against any assets of the Parent, the Borrower, any other Loan Party or any other Subsidiary except for Permitted Liens.

 

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(g)           Existing Indebtedness.  Schedule 6.1.(g) is, as of the Agreement Date, a complete and correct listing of all Indebtedness of the Parent, the Borrower and the other Subsidiaries, including without limitation, Guarantees of the Parent, the Borrower and the other Subsidiaries, and indicating whether such Indebtedness is Secured Indebtedness (and if so whether such Indebtedness is Nonrecourse Indebtedness) or Unsecured Indebtedness.

 

(h)           Material Contracts.  Schedule 6.1.(h) is, as of the Agreement Date, a true, correct and complete listing of all Material Contracts.  Each of the Parent, the Borrower, the other Loan Parties and the other Subsidiaries that is a party to any Material Contract has performed and is in compliance with all of the terms of such Material Contract, the noncompliance with which would give any other party thereto the right to terminate such Material Contract, and no default or event of default, or event or condition which with the giving of notice, the lapse of time, or both, would constitute such a default or event of default, exists with respect to any such Material Contract.

 

(i)            Litigation.  Except as set forth on Schedule 6.1.(i), there are no actions, suits, investigations or proceedings pending (nor, to the knowledge of the Parent, 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, any other Subsidiary or any of their respective properties in any court or before any arbitrator of any kind or before or by any other Governmental Authority which could reasonably be expected to have a Material Adverse Effect.  There are no strikes, slow downs, work stoppages or walkouts or other labor disputes in progress or threatened relating to the Parent, the Borrower, any other Loan Party or any other Subsidiary which could reasonably be expected to have a Material Adverse Effect.

 

(j)            Taxes.  All 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 federal, state and other taxes, assessments and other governmental charges or levies upon the Parent, the Borrower, each other Loan Party, each other Subsidiary and their respective properties, income, profits and assets which are due and payable have been paid, except any such nonpayment 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.

 

(k)           Financial Statements.  The Parent has furnished to each Lender copies of (i) the audited consolidated balance sheet of the Parent and its Subsidiaries for the fiscal year ending December 31, 2010, and the related audited consolidated statements of operations, cash flows and shareholders’ equity for the fiscal year ending on such dates, with the audit report thereon of KPMG LLP and (ii) the unaudited consolidated balance sheet of the Parent and its Subsidiaries as of March 31, 2011, and the related unaudited consolidated statements of operations, cash flows and shareholders’ equity of the Parent and its Subsidiaries for the fiscal quarter ending on such date.  Such financial statements (including in each case related schedules and notes) present fairly, in all material respects and in accordance with GAAP consistently applied throughout the periods involved, the consolidated financial position of the Parent and its 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).  Neither the Parent nor any of its Subsidiaries has on the Agreement Date any material contingent liabilities, liabilities, liabilities for taxes, unusual or long-term commitments or unrealized or forward anticipated losses from any unfavorable commitments that would be required to be set forth in its financial statements or in the notes thereto, except as referred to or reflected or provided for in said financial statements.

 

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(l)            No Material Adverse Change; Solvency.  Since December 31, 2010, there has been no material adverse change in the business, assets, liabilities, financial condition, results of operations or business of the Parent and its Subsidiaries taken as a whole.  Each of the Loan Parties is Solvent.  No Loan Party is entering into any of the transactions contemplated by the Loan Documents with the actual intent to hinder, delay, or defraud any creditor.  Each Loan Party has received reasonably equivalent value in exchange for the obligations incurred by it under the Loan Documents to which it is a party.

 

(m)          ERISA.

 

(i)            Except as could not 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 and except as could not be expected to have a Material Adverse Effect, 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 best knowledge of the Parent and the Borrower, nothing has occurred which would cause the loss of its reliance on each Qualified Plan’s favorable determination letter or opinion letter.

 

(ii)           With respect to any Benefit Arrangement that is a retiree welfare benefit arrangement, all amounts have been accrued on the applicable ERISA Group’s financial statements in accordance with FASB ASC 715.  The “benefit obligation” of all Plans does not exceed the “fair market value of plan assets” for such Plans by more than $10,000,000 all as determined by and with such terms defined in accordance with FASB ASC 715.

 

(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 best 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.

 

(n)           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” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder.  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, 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 “prohibited transactions” under ERISA or the Internal Revenue Code.

 

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(o)           Absence of Defaults.  None of the Parent, the Borrower, any other Loan Party or any other Subsidiary is in default under its articles of incorporation, bylaws, partnership agreement or other similar organizational documents, and no event has occurred, which has not been remedied, cured or waived, which, in any such case:  (i) constitutes a Default or an Event of Default; or (ii) 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 the Parent, the Borrower, any other Loan Party or any other Subsidiary is a party or by which the Parent, the Borrower, any other Loan Party or any other Subsidiary or any of their 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.

 

(p)           Environmental Laws.  Each of the Parent, the Borrower, the other Loan Parties and the other Subsidiaries has obtained all Governmental Approvals which are required under Environmental Laws and is in compliance with all terms and conditions of such Governmental Approvals which the failure to obtain or to comply with could reasonably be expected to have a Material Adverse Effect.  Except for any of the following matters that could not be reasonably expected to have a Material Adverse Effect, (i) neither the Parent nor the Borrower has received notice of, and neither is otherwise aware of, any past, present, or future events, conditions, circumstances, activities, practices, incidents, actions, or plans which, with respect to the Parent, the Borrower, any other Loan Party or any other Subsidiary, may interfere with or prevent compliance or continued compliance with Environmental Laws, or may give rise to any common-law or legal liability, or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing, study, or investigation, based on or related to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling or the emission, discharge, release or threatened release into the environment, of any Hazardous Material; and (ii) there is no civil, criminal, or administrative action, suit, demand, claim, hearing, notice, or demand letter, notice of violation, investigation, or proceeding pending or, to the Parent’s or the Borrower’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. To the knowledge of the Parent and the Borrower, no Hazardous Materials generated at or transported from any of the Eligible Properties is or has been transported to, or disposed of at, any location that is listed or proposed for listing on the National Priority List, 40 C.F.R. Section 300 Appendix B, or any analogous 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 have a Material Adverse Effect.

 

(q)           Investment Company; Etc.  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 regulate or restrict its ability to borrow money or to consummate the transactions contemplated by this Agreement or to perform its obligations under any Loan Document to which it is a party.

 

(r)            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.

 

(s)           Affiliate Transactions.  Except as permitted by Section 9.11., none of the Parent, the Borrower, any other Loan Party or any other Subsidiary is a party to any transaction with an Affiliate.

 

(t)            Intellectual Property.  Each of the Parent, the Borrower, each other Loan Party and each other Subsidiary owns or has the right to use, under valid license agreements or otherwise, all material

 

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patents, licenses, franchises, trademarks, trademark rights, service marks, service mark rights, trade names, trade name rights, trade secrets and copyrights (collectively, “Intellectual Property”) necessary to the conduct of its businesses as now conducted and as contemplated by the Loan Documents, without known conflict with any patent, license, franchise, trademark, trademark right, service mark, service mark right, trade secret, trade name, copyright or other proprietary right of any other Person.  The Parent, the Borrower, each other Loan Party and each other Subsidiary have taken all such steps as they deem reasonably necessary to protect their 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.

 

(u)           Business.  As of the Agreement Date, the Parent, the Borrower and the other  Subsidiaries are substantially engaged in the business of the ownership, operation, acquisition and development of self-storage facilities in the United States of America, together with other business activities incidental thereto.

 

(v)           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 or any of the other Subsidiaries ancillary to the transactions contemplated hereby.

 

(w)          Accuracy and Completeness of Information.  No written information, report or other papers or data (excluding financial projections and other forward looking statements) 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 in connection with, pursuant to or relating in any way to this Agreement, contained any untrue statement of a fact material to the creditworthiness of the Parent, the Borrower, any other Loan Party or any other Subsidiary or omitted to state a material fact necessary in order to make such statements contained therein, in light of the circumstances under which they were made, not misleading.  All financial statements (including in each case all related schedules and notes) 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 in connection with, pursuant to or relating in any way to this Agreement, present fairly in all material respects, the financial position of the Persons involved as at the date thereof and the results of operations for such periods and in accordance with GAAP consistently applied throughout the periods involved (subject, as to interim statements, to changes resulting from normal year-end audit adjustments).  All financial projections 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 reasonable assumptions.  As of the Effective Date, no fact is known to the Parent or the Borrower which has had, or may in the future have (so far as the Parent or the Borrower can reasonably foresee), a Material Adverse Effect which has not been set forth in the financial statements referred to in Section 6.1.(k) or in such information, reports or other papers or data or otherwise disclosed in writing to the Administrative Agent and the Lenders.

 

(x)            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.

 

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(y)           OFAC.  None of the Borrower, any of the other Loan Parties, any of the other Subsidiaries, or any other Affiliate of the Borrower: (i) is a person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofac/index.shtml, or as otherwise published from time to time; (ii) is (A) an agency of the government of a country, (B) an organization controlled by a country, or (C) a person resident in a country that is subject to a sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/index.shtml, or as otherwise published from time to time, as such program may be applicable to such agency, organization or person; or (iii) derives any of its assets or operating income from investments in or transactions with any such country, agency, organization or person; and none of the proceeds of the Loans will be used to finance any operations, investments or activities in, or make any payments to, any such country, agency, organization, or person.

 

(z)            Embargoed Person.  To the best of the knowledge of the Parent and the Borrower: (i) none of the funds or other assets of the Parent, the Borrower, any other Loan Party or any other Subsidiary constitute property of, or are beneficially owned, directly or indirectly, by any person, entity or government subject to trade restrictions under the laws of the United States of America, including but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder with the result that investment in the Parent, the Borrower, any other Loan Party or any other Subsidiary, as applicable (whether directly or indirectly), is prohibited by Applicable Law or the Loans and other financial accommodations made by the Lender under the Loan Documents is in violation of Applicable Law (any such any person, entity or government being an “Embargoed Person”); (ii) no Embargoed Person has any interest of any nature whatsoever in the Parent, the Borrower, any other Loan Party or any other Subsidiary, as applicable, with the result that the investment in the Parent, the Borrower, any other Loan Party or any other Subsidiary, as applicable (whether directly or indirectly), is prohibited by Applicable Law or the Loan is in violation of Applicable Law; and (c) none of the funds of the Parent, the Borrower, any other Loan Party or any other Subsidiary, as applicable, have been derived from any unlawful activity with the result that investment in the Parent, the Borrower, any other Loan Party or any other Subsidiary, as applicable (whether directly or indirectly), is prohibited by Applicable Law or the Loans and other financial accommodations to be extended under the Loan Documents would be in violation of Applicable Law.

 

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 hereto or thereto or any statement contained in any certificate, financial statement or other instrument delivered by or on behalf of the Parent, the Borrower or any other Loan Party prior to the Agreement Date and delivered to the Administrative Agent or any Lender in connection with the underwriting or closing of the transactions contemplated hereby) shall constitute representations and warranties made by the Parent and the Borrower to the Administrative Agent  and the Lenders 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 and the date of the occurrence of any 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 on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  All such representations and warranties

 

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shall survive the effectiveness of this Agreement, the execution and delivery of the Loan Documents and the making of the Loans.

 

ARTICLE VII. AFFIRMATIVE COVENANTS

 

For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 12.6., each affected Lender) shall otherwise consent in the manner provided for in Section 12.6., each of 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 9.7., 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 and where the failure to be so authorized and qualified could reasonably be expected to have a Material Adverse Effect.

 

Section 7.2.  Compliance with Applicable Law and Material Contracts.

 

The Parent and the Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, comply with (a) all Applicable Laws, including the obtaining of all Governmental Approvals, the failure with which to comply could reasonably be expected to have a Material Adverse Effect, and (b) all terms and conditions of all Material Contracts to which it is a party, the noncompliance with which would give any other party thereto the right to terminate such Material Contract.

 

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 all of its respective material properties necessary in the conduct of its business, including, but not limited to, all Intellectual Property, and maintain in good repair, working order and condition all tangible properties, ordinary wear and tear excepted, and (b) 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.

 

The Parent and the Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, carry on, their respective businesses as described in Section 6.1.(u).

 

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 (on a replacement cost basis) 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 its request a detailed list, together with copies of all policies 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

 

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thereof and the properties and risks covered thereby.  Such insurance shall, in any event, include terrorism coverage, so long as the Terrorism Risk Insurance Act of 2002, as amended, is in effect.

 

Section 7.6.  Payment of Taxes and Claims.

 

The Parent and the Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, pay and discharge when due (a) all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or upon any properties belonging to it, and (b) all lawful claims of materialmen, mechanics, carriers, warehousemen and landlords for labor, materials, supplies and rentals 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, levy or claim 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 the Parent, the Borrower, such Subsidiary or such other Loan Party, as applicable, in accordance with GAAP.

 

Section 7.7.  Visits and Inspections.

 

The Parent and the Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, permit representatives or agents of the Administrative Agent and, if such visit or inspection is arranged by the Administrative Agent, of any Lender, from time to time after reasonable prior notice if no Event of Default shall be in existence, as often as may be reasonably requested, but only during normal business hours and at the expense of the Borrower, to:  (a) visit and inspect all properties of the Parent, the Borrower, such other Loan Party or such other Subsidiary to the extent any such right to visit or inspect is within the control of such Person; (b) inspect and make extracts from their respective books and records, including but not limited to management letters prepared by independent accountants; and (c) discuss with its officers, and its independent accountants, its business, properties, condition (financial or otherwise), results of operations and performance; provided that, so long as no Event of Default exists, the Borrower shall only be required to pay the expenses of the Administrative Agent (and not the expenses of any other Lender), with respect to one such visit and inspection per calendar year.  If requested by the Administrative Agent, the Parent and the Borrower shall execute an authorization letter addressed to its accountants authorizing the Administrative Agent or, if the same has been arranged by the Administrative Agent, any Lender, to discuss the financial affairs of the Parent, the Borrower, any other Loan Party and any other Subsidiary with its accountants.

 

Section 7.8.  Use of Proceeds.

 

The Borrower shall use the proceeds of the Loans to repay the Indebtedness existing under the Existing Credit Agreement, and shall use the proceeds of the Loans for general corporate purposes only.  No part of the proceeds of any Loan will be used (a) for the purpose of buying or carrying “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 or (b) to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or Sanctioned Entity.

 

Section 7.9.  Environmental Matters.

 

The Parent and the Borrower shall, and shall cause all of the other Loan Parties and the other Subsidiaries to, comply with all Environmental Laws the failure with which to comply could reasonably be expected to have a Material Adverse Effect.  If the Parent, the Borrower, any other Loan Party or any other Subsidiary shall (a) receive notice that any violation of any Environmental Law may have been committed or is about to be committed by such Person, (b) receive notice that any administrative or

 

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judicial complaint or order has been filed or is about to be filed against the Parent, the Borrower, any other Loan Party or any other Subsidiary alleging violations of any Environmental Law or requiring the Parent, the Borrower, any other Loan Party or any other Subsidiary to take any action in connection with the release of Hazardous Materials or (c) receive any notice from a Governmental Authority or private party alleging that the Parent, the Borrower, any other Loan Party or any other Subsidiary may be liable or responsible for costs associated with a response to or cleanup of a release of Hazardous Materials or any damages caused thereby, and the matters referred to in such notices, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, the Borrower shall provide the Administrative Agent with a copy of such notice promptly, and in any event within 10 Business Days, after the receipt thereof by the Parent, the Borrower, any other Loan Party or any other Subsidiary.  The Parent and the Borrower shall, and shall cause the other Loan Parties and the other Subsidiaries to, take promptly all actions necessary to prevent the imposition of any Liens on any of their respective properties arising out of or related to any Environmental Laws.

 

Section 7.10.  Books and Records.

 

The Parent and the Borrower shall, and shall cause each of the other Loan Parties and the other Subsidiaries to, maintain books and records pertaining to its respective business operations in such detail, form and scope as is consistent with good business practice and in accordance with GAAP.

 

Section 7.11.  Further Assurances.

 

The Parent and the Borrower shall, at their sole cost and expense and upon request of the Administrative Agent, execute and deliver or cause to be executed and delivered, to the Administrative Agent such further instruments, 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 7.12.  New Subsidiaries; Guarantors; Release of Guarantors.

 

(a)           Requirement to Become Guarantor.  Within 10 Business Days of any Person (other than an Excluded Subsidiary) becoming a Material Subsidiary after the Effective Date, the Borrower shall cause to be delivered to the Administrative Agent each of the following items, each in form and substance satisfactory to the Administrative Agent:  (i) an Accession Agreement executed by such Material Subsidiary and (ii) the items that would have been delivered under Section 5.1.(a)(v) through (a)(ix) and (a)(xiii) if such Material Subsidiary had been a Guarantor on the Effective Date; provided, however, promptly (and in any event within 10 Business Days) upon any Excluded Subsidiary ceasing to be subject to the restriction which prevented it from becoming a Guarantor on the Effective Date or delivering an Accession Agreement pursuant to this Section, as the case may be, such Subsidiary shall comply with the provisions of this Section.  The Borrower shall send to each Lender copies of each of the foregoing items once the Administrative Agent has received all such items with respect to a Material Subsidiary.

 

(b)           Other Guarantors.  The Borrower may, at its option, cause any Subsidiary that is not already a Guarantor to become a Guarantor by executing and delivering to the Administrative Agent the items required to be delivered under the immediately preceding subsection (a).

 

(c)           Release of a Guarantor.  The Borrower may request in writing that the Administrative Agent release, and upon receipt of such request the Administrative Agent shall release, a Guarantor (other than the Parent) from the Guaranty so long as:  (i) such Guarantor (x) qualifies, or will qualify simultaneously with its release from the Guaranty, as an Excluded Subsidiary, or (y) in the case of a Material Subsidiary, has ceased to be, or simultaneously with its release from the Guaranty will cease to

 

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be, a Material Subsidiary or a Subsidiary; (ii) such Guarantor is not otherwise required to be a party to the Guaranty under subsection (a) of this Section 7.12; (iii)  no Default or Event of Default shall then be in existence or would occur as a result of such release, including without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 9.1.; (iv) 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 on and as of the date of such release 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 on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents; and (v) the Administrative Agent shall have received such written request at least 10 Business Days (or such shorter period as may be acceptable to the Administrative Agent in its sole discretion) prior to the requested date of release.  Delivery by the Borrower to the Administrative Agent of any such request shall constitute a representation by the Borrower that the matters set forth in the preceding sentence (both as of the date of the giving of such request and as of the date of the effectiveness of such request) are true and correct with respect to such request.

 

Section 7.13.  REIT Status.

 

The Parent shall at all times maintain its status as a REIT.

 

Section 7.14.  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 the American Stock Exchange or which is the subject of price quotations in the over-the-counter market as reported by the National Association of Securities Dealers Automated Quotation System.

 

ARTICLE VIII. INFORMATION

 

For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 12.6., each affected Lender) shall otherwise consent in the manner set forth in Section 12.6., the Borrower shall cause to be furnished to each Lender (or to the Administrative Agent if so provided below) at its Lending Office:

 

Section 8.1.  Quarterly Financial Statements.

 

As soon as available and in any event within 10 days after the same is required to be filed with the Securities and Exchange Commission (but in no event later than 45 days after the end of each of the first, second and third fiscal quarters of the Parent), 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 income, shareholders’ 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, all of which shall be certified by the chief financial officer or chief accounting officer of the Parent, in his or her opinion, to present fairly, in accordance with GAAP and in all material respects, the consolidated financial position of the Parent and its Subsidiaries as at the date thereof and the results of operations for such period (subject to normal year-end audit adjustments).

 

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Section 8.2.  Year-End Statements.

 

As soon as available and in any event within 10 days after the same is required to be filed with the Securities and Exchange Commission (but in no event later than 90 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 income, shareholders’ 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, all of which shall be (a) certified by the chief financial officer, treasurer, or chief accounting officer of the Parent, in his or her opinion, to present fairly, in accordance with GAAP and in all material respects, the consolidated financial position of the Parent and its Subsidiaries as at the date thereof and the results of operations for such period and (b) accompanied by the audit report thereon of independent certified public accountants of recognized national standing, whose report shall be unqualified and in scope and substance satisfactory to the Requisite Lenders and who shall have authorized the Parent to deliver such financial statements and report to the Administrative Agent and the Lenders.

 

Section 8.3.  Compliance Certificate.

 

At the time financial statements are furnished pursuant to Sections 8.1. and 8.2., and within 5 Business Days of the Administrative Agent’s request with respect to any other fiscal period, a certificate substantially in the form of Exhibit I (a “Compliance Certificate”) executed by the chief financial officer, treasurer, or chief accounting officer of the Parent:  (a) setting forth in reasonable detail as at the end of such quarterly accounting period, fiscal year, or other fiscal period, as the case may be, the calculations required to establish whether or not the Parent and the Borrower were in compliance with the covenants contained in Sections 9.1., 9.2. and 9.4. and (b) stating that, to the best of his or her knowledge, information and belief after due inquiry, 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, whether it is continuing and the steps being taken by the Borrower with respect to such event, condition or failure.  Together with each Compliance Certificate delivered in connection with quarterly or annual financial statements, the Borrower and the Parent shall deliver a report, in form and detail reasonably satisfactory to the Administrative Agent, (x) setting forth a Statement of Funds From Operations for the fiscal period then ending and (y) identifying each Eligible Property as of such date, indicating Properties that have been added or deleted since the delivery of the most recent Compliance Certificate.

 

Section 8.4.  Other Information.

 

(a)           Management Reports.  Promptly upon receipt thereof, copies of all management reports, if any, submitted to the Parent or its Board of Directors by its independent public accountants;

 

(b)           Securities Filings.  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 Securities and Exchange Commission (or any Governmental Authority substituted therefor) or any national securities exchange (any such registration statement, report and other periodic report referred to as a “Security Filing”);

 

(c)           Shareholder Information.  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;

 

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(d)           ERISA.  If any ERISA Event shall occur that individually, or together with any other ERISA Event that has occurred, could reasonably be expected to have a Material Adverse Effect, a certificate of the chief executive officer or chief financial officer of the Borrower setting forth details as to such occurrence and the action, if any, which the Borrower or applicable member of the ERISA Group is required or proposes to take;

 

(e)           Litigation.  To the extent the Parent, the Borrower 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 arbitrator against or in any other way relating adversely to, or adversely affecting, the Parent, the Borrower or any other Subsidiary or any of their respective properties, assets or businesses which could reasonably be expected to have a Material Adverse Effect, and prompt notice of the receipt of notice that any United States income tax returns of the Parent, the Borrower or any other Subsidiary are being audited;

 

(f)            Modification of Organizational Documents.  A copy of any amendment to the articles of incorporation, bylaws, partnership agreement, operating agreement or other similar organizational documents of the Parent, the Borrower or any other Loan Party within 15 Business Days after the effectiveness thereof;

 

(g)           Change of Management or Financial Condition.  Prompt notice of any change in the senior management of the Parent, the Borrower or any other Loan Party and any change in the business, assets, liabilities, financial condition or results of operations of the Parent, the Borrower, any other Loan Party or any other Subsidiary which has had or could reasonably be expected to have a Material Adverse Effect;

 

(h)           Default.  Notice of the occurrence of any of the following promptly upon a Responsible Officer of the Parent or the Borrower obtaining knowledge thereof:  (i) any Default or Event of Default or (ii) any event which constitutes or which with the passage of time, the giving of notice, or otherwise, would constitute a default or event of default by the Parent, the Borrower, any other Loan Party or any other Subsidiary under any Material Contract to which any such Person is a party or by which any such Person or any of its respective properties may be bound;

 

(i)            Judgments.  Prompt notice of any order, judgment or decree in excess of $5,000,000 having been entered against the Parent, the Borrower, any other Loan Party or any other Subsidiary or any of their respective properties;

 

(j)            Notice of Violations of Law.  Prompt notice if the Parent, the Borrower, any other Loan Party or any other Subsidiary shall receive any notification from any Governmental Authority alleging a violation of any Applicable Law or any inquiry which, in either case, could reasonably be expected to have a Material Adverse Effect;

 

(k)           Budget.  As soon as available, and in any event no later than 45 days after the end of each fiscal year of the Parent a detailed consolidated budget for the following four consecutive fiscal quarters (including a projected consolidated balance sheet of the Parent and its Subsidiaries as of the end of the following fiscal year, and the related consolidated statements of projected cash flow, projected changes in financial position and projected income and a description of the underlying assumptions applicable thereto), and, as soon as available, significant revisions, if any, of such budget and projections with respect to such fiscal quarters (collectively, the “Projections”), which Projections shall in each case be accompanied by a certificate of a Responsible Officer of the Parent stating that such Projections are based

 

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on reasonable estimates, information and assumptions and that such Responsible Officer has no reason to believe that such Projections are incorrect or misleading in any material respect;

 

(l)            Material Asset Sales.  Prompt notice of the sale, transfer or other disposition of any material assets of the Parent, the Borrower, any other Loan Party or any other Subsidiary to any Person other than the Parent, the Borrower, any other Loan Party or any other Subsidiary;

 

(m)          Material Contracts.  Promptly upon entering into any Material Contract after the Agreement Date, a copy to the Administrative Agent of such Material Contract;

 

(n)           Cash Flow Projections.  Concurrently with the delivery of the items required pursuant to the immediately preceding subsection (k), and, if requested by the Administrative Agent, concurrently with the delivery of the financial statements required pursuant to Section 8.1., consolidated statements of projected cash flow of the Parent, the Borrower and the other Subsidiaries for the immediately following period of 4 consecutive fiscal quarters of the Parent;

 

(o)           Credit Rating Change.  Promptly, upon any change in the Parent’s Credit Rating, a certificate stating that the Parent’s Credit Rating has changed and the new Credit Rating that is in effect; and

 

(p)           Other Information.  From time to time and promptly upon each request, such data, certificates, reports, statements, opinions of counsel, documents or further information regarding 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.  Delivery of Documents.

 

Documents required to be delivered by the Borrower pursuant to Article VIII. (to the extent any such documents are not otherwise included in a Security Filing) may be delivered electronically, including, without limitation, by posting such documents to the Borrower’s internet website (www.u-store-it.com); provided, that (a) if such documents are posted to the Borrower’s website, then such documents will only be deemed to have been delivered on the date that the Borrower provides notice to the Administrative Agent of the posting of such documents and only if such documents are publicly available without charge on such website and (b) if such documents are delivered by other electronic means, such documents shall be deemed to have been delivered on the date on which such documents are received by the Administrative Agent for posting on the Borrower’s behalf on an internet or intranet website, if any, to which each Lender and the Administrative Agent has access (whether a commercial, third-party website (such as Intralinks or SyndTrak) or a website sponsored by the Administrative Agent); provided further that the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender.  Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper copies of the Compliance Certificate required by Section 8.3. to the Administrative Agent.  The Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

 

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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 shall designate Information Materials (a) that are either available to the public or not material with respect to the 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” and (b) that are not Public Information as “Private Information”.

 

Section 8.7.  USA Patriot Act Notice; Compliance.

 

The USA Patriot Act of 2001 (Public Law 107-56) 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 the Administrative 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 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.

 

ARTICLE IX. NEGATIVE COVENANTS

 

For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 12.6., each affected Lender) shall otherwise consent in the manner set forth in Section 12.6., each of the Parent and the Borrower, as applicable, shall comply with the following covenants:

 

Section 9.1.  Financial Covenants.

 

The Parent shall not permit:

 

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

 

(b)           Minimum Consolidated Fixed Charge Coverage Ratio.  The ratio of (i) Adjusted EBITDA for the period of four consecutive fiscal quarters of the Parent most recently ending to (ii) Consolidated Fixed Charges for such period, to be less than 1.50 to 1.00 at any time.

 

(c)           Minimum Tangible Net Worth.  Tangible Net Worth at any time to be less than (i) $821,211,200 plus (ii) 75% of the Net Proceeds of all Equity Issuances by the Parent and its Subsidiaries after June 30, 2010 (other than Equity Issuances to the Parent, the Borrower or any other Subsidiary).

 

(d)           Floating Rate Indebtedness.  The ratio of (i) Floating Rate Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis to (ii) Consolidated Total Indebtedness, to exceed 0.30 to 1.00 at any time.

 

(e)           Maximum Secured Leverage Ratio.  The ratio of (i) Secured Indebtedness to (ii) Consolidated Adjusted Asset Value to exceed 0.35 to 1.00 at any time.

 

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(f)            Minimum Unencumbered Asset Value to Consolidated Unsecured Indebtedness Ratio.  The ratio of (i) Unencumbered Asset Value to (ii) Consolidated Unsecured Indebtedness to be less than 1.67 to 1.00 at any time.

 

(g)           Minimum Unencumbered NOI to Unsecured Interest Expense Ratio.  The ratio of (i) Unencumbered NOI to (ii) Unsecured Interest Expense to be less than 2.00 to 1.00 at any time.

 

(h)           Minimum Unencumbered Asset Value.  The Unencumbered Asset Value to be less than $400,000,000 at any time.

 

(i)            Maximum Secured Recourse Indebtedness Ratio.  For the period commencing on the Agreement Date to and including the Investment Grade Rating Date, the ratio of (i) Secured Recourse Indebtedness to (ii) Consolidated Adjusted Asset Value to exceed 0.10 to 1.00 at any time.

 

Section 9.2.  Restricted Payments.

 

The Parent shall not, and shall not permit the Borrower or any other Subsidiary to, declare or make any Restricted Payment; provided, however, that the Parent, the Borrower and the other Subsidiaries may declare and make the following Restricted Payments so long as no Default or Event of Default would result therefrom:

 

(a)           the Borrower may declare or make cash distributions to the Parent and other holders of partnership interests in the Borrower during the period of four consecutive fiscal quarters most recently ending 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 greater of (i) the amount required to be distributed for the Parent to remain in compliance with Section 7.13. or (ii) 95.0% of Funds From Operations;

 

(b)           the Borrower may make cash distributions of capital gains to the Parent and other holders of partnership interests in the Borrower to the extent necessary for the Parent to make, and the Parent may make, cash distributions to its shareholders of capital gains resulting from gains from certain asset sales to avoid payment of taxes on such asset sales imposed under Sections 857(b)(3) and 4981 of the Internal Revenue Code;

 

(c)           the Parent, the Borrower and any other Subsidiary may acquire the Equity Interests of a Subsidiary that is not a Wholly Owned Subsidiary;

 

(d)           a Subsidiary that is not a Wholly Owned Subsidiary may make cash distributions to holders of Equity Interests issued by such Subsidiary; and

 

(e)           Subsidiaries may make Restricted Payments to the Parent, the Borrower or any other Subsidiary.

 

Notwithstanding the foregoing, but subject to the following sentence, if a Default or Event of Default exists, the Borrower may only declare and make cash distributions to the Parent and other holders of partnership interests in the Borrower with respect to any fiscal year to the extent necessary for the Parent to distribute, and the Parent may so distribute, an aggregate amount not to exceed the minimum amount necessary for the Parent to remain in compliance with Section 7.13.  If a Default or Event of Default specified in Section 10.1.(a), Section 10.1.(b), Section 10.1.(f) or Section 10.1.(g) shall exist, or if as a result of the occurrence of any other Event of Default any of the Obligations have been accelerated

 

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pursuant to Section 10.2.(a), the Parent shall not, and shall not permit the Borrower or any other Subsidiary to, make any Restricted Payments to any Person other than to the Parent, the Borrower or any other Subsidiary.

 

Section 9.3.  Indebtedness.

 

The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other Subsidiary to, incur, assume, or otherwise become obligated in respect of any Indebtedness after the Agreement Date if immediately prior to the assumption, incurring or becoming obligated in respect thereof, or immediately thereafter and after giving effect thereto, a Default or Event of Default is or would be in existence, including without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 9.1.

 

Section 9.4.  Certain Permitted Investments.

 

The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other Subsidiary to, make any Investment in or otherwise own the following items which would cause the aggregate value of such holdings of the Parent, the Borrower, the other Loan Parties and the other Subsidiaries to exceed the applicable limits set forth below:

 

(a)           Investments in Unconsolidated Affiliates and other Persons that are not Subsidiaries, such that the aggregate value of such Investments (determined in accordance with GAAP) to exceed 15.0% of Consolidated Adjusted Asset Value at any time;

 

(b)           raw land, such that the current book value of all raw land as a percentage of Consolidated Adjusted Asset Value exceeds 5.0% at any time;

 

(c)           real property under construction such that the aggregate Construction Budget for all such real property as a percentage of Consolidated Adjusted Asset Value exceeds 7.5% at any time;

 

(d)           Properties leased under ground leases by the Parent or any of its Subsidiaries, as lessee, such that the value of such Properties (determined in accordance with the applicable provisions of the definition of Consolidated Adjusted Asset Value) exceeds 7.5% of Consolidated Adjusted Asset Value at any time; and

 

(e)           Mortgage Receivables and Investments in Persons (other than Investments in Subsidiaries and Unconsolidated Affiliates), such that the aggregate value of such Mortgage Receivables and Investments exceeds 5.0% of Consolidated Adjusted Asset Value at any time.

 

In addition to the foregoing limitations, (i) the aggregate value of all of the items subject to the limitations in the preceding clauses (a) through (e) shall not exceed 25.0% of Consolidated Adjusted Asset Value at any time and (ii) the aggregate value of all of the items subject to the limitations in the preceding clauses (b) through (e) shall not exceed 15.0% of Consolidated Adjusted Asset Value at any time.

 

Section 9.5.  Investments Generally.

 

The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other Subsidiary to, directly or indirectly, acquire, make or purchase any Investment, or permit any Investment of such Person to be outstanding on and after the Agreement Date, other than the following:

 

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(a)           Investments in Subsidiaries in existence on the Agreement Date and disclosed on Part I of Schedule 6.1.(b);

 

(b)           Investments to acquire Equity Interests of a Subsidiary or any other Person who after giving effect to such acquisition would be a Subsidiary, so long as in each case (i) immediately prior to such Investment, and after giving effect thereto, no Default or Event of Default is or would be in existence and (ii) if such Subsidiary is (or after giving effect to such Investment would become) a Material Subsidiary, and is not an Excluded Subsidiary, the terms and conditions set forth in Section 7.12. are satisfied;

 

(c)           Investments permitted under Section 9.4.;

 

(d)           Investments in Cash Equivalents;

 

(e)           intercompany Indebtedness among the Borrower and its Wholly Owned Subsidiaries provided that such Indebtedness is permitted by the terms of Section 9.3.;

 

(f)            loans and advances to officers and employees for moving, entertainment, travel and other similar expenses in the ordinary course of business consistent with past practices; and

 

(g)           any other Investment so long as immediately prior to making such Investment, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence.

 

Section 9.6.  Liens; Negative Pledges; Other Matters.

 

(a)           The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other Subsidiary to, create, assume, or incur any Lien (other than Permitted Liens) upon any of their respective properties, assets, income or profits of any character whether now owned or hereafter acquired if immediately prior to the creation, assumption or incurring of such Lien, or immediately thereafter, a Default or Event of Default is or would be in existence, including without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 9.1.

 

(b)           The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other 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 the Parent, the Borrower, such Loan Party or such Subsidiary may create, incur, assume, or permit or suffer to exist under Section 9.3., (y) which Indebtedness is secured by a Lien permitted to exist under the Loan Documents, and (z) which prohibits the creation of any other Lien on (A) only the property securing such Indebtedness as of the date such agreement was entered into and (B) if such property is owned by an Excluded Subsidiary, the Equity Interests issued by such Excluded Subsidiary or any Excluded Subsidiary that directly or indirectly owns Equity Interests in such Excluded Subsidiary; (ii) in 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 (iii) Negative Pledges contained in the agreements described on Schedule 9.6. to the extent such Negative Pledges apply to Equity Interests issued by the Borrower or other Subsidiary of the Parent identified on such Schedule.

 

(c)           The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other 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 

 

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Subsidiary) to:  (i) pay dividends or make any other distribution on any of such Subsidiary’s capital stock or other equity interests owned by the Borrower or any other Subsidiary; (ii) pay any Indebtedness owed to the Borrower or any other Subsidiary; (iii) make loans or advances to the Borrower or any other Subsidiary; or (iv) transfer any of its property or assets to the Borrower or any other Subsidiary; provided that this subsection (c) shall not apply to such encumbrances or restrictions set forth in the Revolving Credit Agreement.

 

Section 9.7.  Merger, Consolidation, Sales of Assets and Other Arrangements.

 

The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other Subsidiary to:  (i) enter into any transaction of merger or consolidation; (ii) liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); or (iii) 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, whether now owned or hereafter acquired; provided, however, that:

 

(a)           any of the actions described in the immediately preceding clauses (i) through (iii) may be taken with respect to any Subsidiary or any other Loan Party (other than the Parent and the Borrower) so long as immediately prior to the taking of such action, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence; notwithstanding the foregoing, any Loan Party (other than the Parent and the Borrower) may enter into a transaction of merger pursuant to which such Loan Party is not the survivor of such merger only if (i) the Borrower shall have given the Administrative Agent and the Lenders at least 10 Business Days’ prior written notice of such merger, such notice to include a certification to the effect that immediately after and after giving effect to such action, no Default or Event of Default is or would be in existence; (ii) if the survivor entity is a Material Subsidiary (and not an Excluded Subsidiary) within 10 Business Days of consummation of such merger, the survivor entity (if not already a Guarantor) shall have executed and delivered an assumption agreement in form and substance satisfactory to the Administrative Agent pursuant to which such survivor entity shall expressly assume all of such Loan Party’s Obligations under the Loan Documents to which it is a party; (iii) within 30 days of consummation of such merger, the survivor entity delivers to the Administrative Agent the following:  (A) items of the type referred to in Sections Section 5.1.(a)(v) through (a)(ix) and (a)(xvi) with respect to the survivor entity as in effect after consummation of such merger (if not previously delivered to the Administrative Agent and still in effect), (B) copies of all documents entered into by such Loan Party or the survivor entity to effectuate the consummation of such merger, including, but not limited to, articles of merger and the plan of merger, (C) copies, certified by the Secretary or Assistant Secretary (or other individual performing similar functions) of such Loan Party or the survivor entity, of all corporate and shareholder action authorizing such merger and (D) copies of any filings with the Securities and Exchange Commission in connection with such merger; and (iv) such Loan Party and the survivor entity each takes such other action and delivers such other documents, instruments, opinions and agreements as the Administrative Agent may reasonably request;

 

(b)           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;

 

(c)           a Person may merge with and into the Parent or the Borrower so long as (i) the Parent or the Borrower is the survivor of such merger, (ii) immediately prior to such merger, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence and (iii) the Borrower shall have given the Administrative Agent and the Lenders at least 10 Business Days’ prior written notice of such merger, such notice to include a certification as to the matters described in the immediately preceding clause (ii) (except that such prior notice shall not be required in the case of the 

 

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merger of a Subsidiary with and into the Borrower or a Subsidiary (other than the Borrower) with and into the Parent); and

 

(d)           the Parent, the Borrower, the other Loan Parties and the other Subsidiaries may sell, transfer or dispose of assets among themselves.

 

Section 9.8.  Fiscal Year.

 

The Parent shall not change its fiscal year from that in effect as of the Agreement Date.

 

Section 9.9.  Modifications to Material Contracts.

 

The Parent and the Borrower shall not, and shall not permit any other Loan Party or any other Subsidiary to, enter into any amendment or modification to any Material Contract which could reasonably be expected to have a Material Adverse Effect.

 

Section 9.10.  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 articles or certificate of incorporation, by-laws, operating agreement, declaration of trust, partnership agreement or other applicable organizational document if such amendment, supplement, restatement or other modification could reasonably be expected to have a Material Adverse Effect.

 

Section 9.11.  Transactions with Affiliates.

 

The Parent and the Borrower shall not, 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 (other than a Loan Party), except (a) transactions in the ordinary course of and pursuant to the reasonable requirements of the business of the Parent, the Borrower or any of its other Subsidiaries and upon fair and reasonable terms which are no less favorable to the Parent, the Borrower or such Subsidiary than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate and (b) transactions among Loan Parties.

 

Section 9.12.  Plans.

 

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” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder.  The Parent and the Borrower shall not cause, and shall not permit any other member of the ERISA Group to cause, any ERISA Event if such ERISA Event could reasonably be expected to have a Material Adverse Effect.

 

Section 9.13.  Derivatives Contracts.

 

The Parent and the Borrower shall not, and shall not permit any other Loan Party or other Subsidiary to, enter into or become obligated in respect of, Derivatives Contracts other than Derivatives Contracts entered into by the Parent, the Borrower, any other Loan Party or other Subsidiary in the ordinary course of business and which establish an effective hedge in respect of liabilities, commitments or assets held or reasonably anticipated by such Person.

 

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Section 9.14.  Effectiveness of Certain Negative Covenants.

 

To the extent that Section 9.5. would cause an “Event of Default” under, and as defined in, the Revolving Credit Agreement as a result of a violation of Section 9.6(c)(iii) of the Revolving Credit Agreement, then Section 9.5. shall be deemed not to be effective solely to the extent necessary to avoid the occurrence of such an Event of Default.  Upon the termination of the Revolving Credit Agreement or the amendment of Section 9.6(c)(iii) of the Revolving Credit Agreement in a manner that eliminates such violation, the restriction set forth in this Section shall automatically cease to apply and Section 9.5. shall be fully effective.

 

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 of Principal.  The Borrower shall fail to pay when due (whether upon demand, at maturity, by reason of acceleration or otherwise) the principal of any of the Loans.

 

(b)           Default in Payment of Interest and Other Obligations.  The Borrower shall fail to pay when due any interest on any of the Loans or any of the other payment Obligations owing by the Borrower under this Agreement or any other Loan Document, or any other Loan Party shall fail to pay when due any payment Obligation owing by such other Loan Party under any Loan Document to which it is a party, and such failure shall continue for a period of 5 Business Days.

 

(c)           Default in Performance.  (i) The Parent or the Borrower shall fail to perform or observe any term, covenant, condition or agreement contained in Section 7.13., Section 8.4.(h) or in Article IX. or (ii) the Parent, the Borrower or any other 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 clause (ii) only such failure shall continue for a period of 30 days after the date upon which the Parent or the Borrower has received written notice of such failure from the Administrative Agent.

 

(d)           Misrepresentations.  Any written statement, representation or warranty made or deemed made by or on behalf of the Parent, the Borrower or any other Loan Party under this Agreement or under any other Loan Document, or any amendment hereto or thereto, or in any other writing or statement at any time furnished or made or deemed made by or on behalf of the Parent, the Borrower or any other Loan Party to the Administrative Agent or any Lender, shall at any time prove to have been incorrect or misleading, in light of the circumstances in which made or deemed made, in any material respect when furnished or made or deemed made.

 

(e)           Indebtedness Cross-Default; Derivatives Contracts.

 

(i)            The Parent, the Borrower, any other Loan Party or any other Subsidiary shall fail to pay when due and payable, within any applicable grace or cure period (not to exceed 30 days), the principal of, or interest on, any Indebtedness (other than the Loans) having an aggregate outstanding principal amount (or, in the case of any Derivatives Contract, having, without regard to the effect of any close-out netting provision, a Derivatives Termination Value) of $10,000,000 

 

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or more (or $25,000,000 or more in the case of Nonrecourse 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 or repurchased prior to the stated maturity thereof;

 

(iii)          any other event shall have occurred and be continuing which permits any holder or holders of Material Indebtedness, any trustee or agent acting on behalf of such holder or holders or any other Person, to accelerate the maturity of any such Material Indebtedness or require any such Material Indebtedness to be prepaid or repurchased prior to its stated maturity; or

 

(iv)          there occurs an “Event of Default” under and as defined in any Specified Derivatives Contract as to which the Parent, the Borrower or any other Loan Party is a “Defaulting Party” (as defined therein), or there occurs an “Early Termination Date” (as defined therein) in respect of any Specified Derivatives Contract as a result of a “Termination Event” (as defined therein) as to which the Parent, the Borrower or any other Loan Party is an “Affected Party” (as defined therein).

 

(f)            Voluntary Bankruptcy Proceeding.  The Parent, the Borrower, any other Loan Party, or any Excluded Subsidiary that is a Significant Subsidiary shall:  (i) commence a voluntary case under the Bankruptcy Code of 1978, as amended, 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; (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 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.

 

(g)           Involuntary Bankruptcy Proceeding.  A case or other proceeding shall be commenced against the Parent, the Borrower, any other Loan Party, or any Excluded Subsidiary that is a Significant Subsidiary in any court of competent jurisdiction seeking:  (i) relief under the Bankruptcy Code of 1978, as amended, or other federal bankruptcy laws (as now or hereafter in effect) or under any other Applicable Laws, domestic or foreign, relating to bankruptcy, 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 such case or proceeding shall continue undismissed or unstayed for a period of 60 consecutive calendar days, or an order granting the remedy or other relief requested in such case or proceeding against such Person (including, but not limited to, an order for relief under such Bankruptcy Code or such other federal bankruptcy laws) shall be entered.

 

(h)           Litigation; Enforceability.  The Parent, the Borrower or any other Loan Party shall disavow, revoke or terminate (or attempt to terminate) any Loan Document 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 

 

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Authority the validity or enforceability of this Agreement, or any other Loan Document or this Agreement or any other Loan Document shall cease to be in full force and effect (except as a result of the express terms thereof).

 

(i)            Judgment.  A judgment or order for the payment of money or for an injunction 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 appellate proceedings prosecuted by the Borrower in good faith and (ii) either (A) 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 outstanding judgments or orders entered against (X) the Parent, the Borrower and the other Loan Parties, $10,000,000 or (Y)  other Subsidiaries, $50,000,000 or (B) in the case of an injunction or other non-monetary judgment, such injunction or judgment could reasonably be expected to have a Material Adverse Effect.

 

(j)            Attachment.  A warrant, writ of attachment, execution or similar process shall be issued against any property of the Parent, the Borrower, any other Loan Party or any other Subsidiary which exceeds, individually or together with all other such warrants, writs, executions and processes, (i) for the Parent, the Borrower and the other Loan Parties $10,000,000 or (ii) for all other Subsidiaries $50,000,000, and such warrant, writ, execution or process shall not be discharged, vacated, stayed or bonded for a period of 30 days; provided, however, that if a bond has been issued in favor of the claimant or other Person obtaining such warrant, writ, execution or process, the issuer of such bond shall execute a waiver or subordination agreement in form and substance satisfactory to the Administrative Agent pursuant to which the issuer of such bond subordinates its right of reimbursement, contribution or subrogation to the Obligations and waives or subordinates any Lien it may have on the assets of any Loan Party.

 

(k)           ERISA.

 

(i)            Any ERISA Event shall have occurred that results or could reasonably be expected to result in liability to any member of the ERISA Group aggregating in excess of $10,000,000; or

 

(ii)           The “benefit obligation” of all Plans exceeds the “fair market value of plan assets” for such Plans by more than $10,000,000, all as determined, and with such terms defined, in accordance with FASB ASC 715.

 

(l)            Loan Documents.  An Event of Default (as defined therein) shall occur under any of the other Loan Documents.

 

(m)          Change of Control/Change in Management.

 

(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”)), 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;

 

(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 

 

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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 at least two-thirds of 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 but excluding any director whose initial nomination for, or assumption of office as, a director occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the Board of Directors) cease for any reason to constitute a majority of the Board of Directors of the Borrower then in office;

 

(iii)          The Parent or a Wholly Owned Subsidiary of 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; or

 

(iv)          The Parent shall cease to own and control, directly or indirectly, of record and beneficially, at least 75% of the outstanding Equity Interests of the Borrower free and clear of all Liens (other than Permitted Liens of the types referred to in clauses (a), (b), (c) and (e) of the definition of Permitted Lien).

 

(n)           Validity of Material Loan Documents.  Either this Agreement or the Guaranty shall cease to be in full force and effect (other than in accordance with the terms thereof).

 

(o)           Revolving Credit Agreement.  An Event of Default under and as defined in the Revolving Credit Agreement shall occur.

 

Section 10.2.  Remedies Upon Event of Default.

 

Upon the occurrence of an Event of Default the following provisions shall apply:

 

(a)           Acceleration.

 

(i)            Automatic.  Upon the occurrence of an Event of Default specified in Section 10.1.(f) or 10.1.(g), (A) the principal of, and all accrued interest on, the Loans and the Notes at the time outstanding and (B) all of the other Obligations (other than obligations in respect of Derivatives Contracts), 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 Borrower.

 

(ii)           Optional.  If any other Event of Default shall exist, the Administrative Agent may, and at the direction of the Requisite Lenders shall:  declare (1) the principal of, and accrued interest on, the Loans and the Notes at the time outstanding and (2) all of the other Obligations (other than obligations in respect of Derivatives Contracts), 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 Borrower.

 

(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.

 

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(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.

 

(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 Borrower and its 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 business operations of the Borrower and its 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: (i) 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, (ii) 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, and (iii) to prosecute any legal action against the Parent, the Borrower or any other Loan Party to enforce or collect net amounts owing to such Specified Derivatives Provider by any such Person pursuant to any Specified Derivatives Contract.

 

Section 10.3.  Marshaling; Payments Set Aside.

 

None of the Administrative Agent, any Lender or any Specified Derivatives Provider 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 Obligations or the Specified Derivatives Obligations.  To the extent that any Loan Party makes a payment or payments to the Administrative Agent, any Lender or any Specified Derivatives Provider, or the Administrative Agent, any Lender or any Specified Derivatives Provider enforces any Lien or exercises any of its rights 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 or required to be repaid to a trustee, receiver or any other party under any bankruptcy law or other Applicable Law, then to the extent of such recovery, the Obligations or Specified Derivatives 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 10.4.  Allocation of Proceeds.

 

If an Event of Default shall exist and maturity of any of the Obligations has been accelerated, or if an Event of Default specified in Section 10.1.(a) and/or (b) shall exist, all payments received by the Administrative Agent under any of the Loan Documents, in respect of any principal of or interest on the Obligations or any other amounts payable by the Borrower hereunder or thereunder, shall be applied in the following order and priority:

 

(a)           amounts due the Administrative Agent in respect of fees and expenses due under Section 12.2.;

 

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(b)           amounts due the Lenders in respect of fees and expenses due under Section 12.2., pro rata in the amount then due each Lender;

 

(c)           payments of interest on all Loans, to be split pro rata between each Class of Loan, and to be applied for the ratable benefit of the Lenders of each Class of Loans;

 

(d)           payments of principal of all Loans, to be split pro rata between each Class of Loan, and to be applied for the ratable benefit of the Lenders of each Class of Loans;

 

(e)           amounts due the Administrative Agent and the Lenders pursuant to Sections 11.7. and 12.9.;

 

(f)            payment of all other Obligations and other amounts due and owing by the Borrower and the other Loan Parties under any of the Loan Documents, if any, to be applied for the ratable benefit of the Lenders; and

 

(g)           any amount remaining after application as provided above, shall be paid to the Borrower or whomever else may be legally entitled thereto.

 

Section 10.5.  Performance by Administrative Agent.

 

If 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 Borrower or such other Loan Party 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 at the applicable Post-Default Rate from the date of such expenditure until paid.  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 10.6.  Rights Cumulative.

 

The rights and remedies of the Administrative Agent and the Lenders under this Agreement, each of the other Loan Documents 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 and the Lenders may be selective and no failure or delay by the Administrative Agent or any of the Lenders 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.

 

ARTICLE XI. THE ADMINISTRATIVE AGENT

 

Section 11.1.  Authorization and Action.

 

Each Lender hereby 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 

 

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for the benefit of the Lenders.  Each Lender hereby agrees that, except as otherwise set forth herein, any action taken by the Requisite Lenders, the Requisite Five Year Term Lenders and the Requisite Seven Year Term Lenders in accordance with the provisions of this Agreement or the Loan Documents, and the exercise by the Requisite Lenders, the Requisite Five Year Term Lenders or the Requisite Seven Year Term 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 “Administrative 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.  At the request of a Lender, the Administrative Agent will forward to such Lender copies or, where appropriate, originals of the documents delivered to the Administrative Agent pursuant to this Agreement or the other Loan Documents.  The Administrative Agent will also furnish to any Lender, upon the request of such Lender, a copy of any certificate or notice furnished to the Administrative Agent by the Borrower, any other Loan Party or any other Affiliate of the Borrower, pursuant to this Agreement or any other Loan Document not already delivered 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, 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.  Administrative Agent’s Reliance, Etc.

 

Notwithstanding any other provisions of this Agreement or any other Loan Documents, neither the Administrative Agent nor any of its directors, officers, agents, employees or counsel shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement or any other Loan Document, except for its or their own gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment.  Without limiting the generality of the foregoing, the Administrative Agent:  (a) may treat the payee of any Note as the holder thereof until the Administrative Agent receives written notice of the assignment or transfer thereof signed by such payee and in form satisfactory to the Administrative Agent; (b) may consult with legal counsel (including its own counsel or counsel for 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; (c) makes no warranty or representation to any Lender or any other Person and shall not be responsible to any Lender or any other Person for any statements, warranties or representations made by any Person in or in connection with this 

 

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Agreement or any other Loan Document; (d) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any 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 (except for the delivery to it of any certificate or document specifically required to be delivered to it pursuant to Section 5.1.) or inspect the property, books or records of the Borrower or any other Person; (e) shall not be responsible to any Lender 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 or any collateral covered thereby or the perfection or priority of any Lien in favor of the Administrative Agent on behalf of the Lenders in any such collateral; and (f) shall incur no 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.  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 Borrower has satisfied the conditions precedent for initial Loans set forth in Sections 5.1. and 5.2. that have not previously been waived by the Requisite Lenders.

 

Section 11.3.  Notice of Defaults.

 

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 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.”  Further, if the Administrative Agent receives such a “notice of default”, the Administrative Agent shall give prompt notice thereof to the Lenders.

 

Section 11.4.  Administrative Agent as Lender.

 

The Lender acting as Administrative Agent shall have the same rights and powers under this Agreement and any other Loan Document as any other Lender 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 the Lender then acting as Administrative Agent in each case in its individual capacity.  Such Lender 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 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.  Further, such Lender and any Affiliate may accept fees and other consideration from the Borrower for services in connection with this Agreement, any Specified Derivatives Contract or otherwise without having to account for the same to the Lenders.  The Lenders acknowledge that, pursuant to such activities, the Lender acting as Administrative Agent or its Affiliates may receive information regarding 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.

 

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Section 11.5.  Approvals of Lenders.

 

All communications from the Administrative Agent to any Lender requesting such Lender’s determination, consent, approval or disapproval (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, approval, consent or disapproval 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, (c) shall include, if reasonably requested by such Lender and to the extent not previously provided to such Lender, written materials and, as appropriate, a brief summary of all oral information provided to the Administrative Agent by the Borrower in respect of the matter or issue to be resolved, and (d) shall include the Administrative Agent’s recommended course of action or determination in respect thereof.  Each Lender shall reply promptly, but in any event within 15 Business Days (or such lesser or greater period as may be specifically required under the Loan Documents) of receipt of such communication.  Except as otherwise provided in this Agreement, unless a Lender shall give written notice to the Administrative Agent that it specifically objects to the recommendation or determination of the Administrative Agent (together with a written explanation of the reasons behind such objection) within the applicable time period for reply, such Lender shall be deemed to have conclusively approved of or consented to such recommendation or determination; provided, however, that this sentence shall not apply to amendments, waivers or consents that require the written consent of each Lender adversely affected thereby pursuant to Section 12.6.(b).

 

Section 11.6.  Lender Credit Decision, Etc.

 

Each Lender expressly acknowledges and agrees that neither the Administrative Agent nor any of its officers, directors, employees, agents, counsel, attorneys-in-fact or other Affiliates has made any representations or warranties as to the financial condition, operations, creditworthiness, solvency or other information concerning the business or affairs of the Borrower, any other Loan Party, any Subsidiary or any other Person to such Lender and that no act by the Administrative Agent hereafter taken, including any review of the affairs of the Borrower, any other Loan Party or any other Subsidiary, shall be deemed to constitute any such representation or warranty by the Administrative Agent to any Lender.  Each Lender 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 officers, directors, employees and agents, and based on the financial statements of the Borrower, the Subsidiaries or any other Affiliate thereof, and inquiries of such Persons, its independent due diligence of the business and affairs of the Borrower, the other Loan Parties, the 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 Lender 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 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 of, or make any other investigation of, the Borrower, any other Loan Party or any other Person.  Except for notices, reports and other documents and information expressly required to be furnished to the Lenders 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 with any credit or other information concerning the business, operations, property, financial and other condition or creditworthiness of the Borrower, any other Loan Party or any other Affiliate thereof which may come into possession of the Administrative Agent, or any 

 

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of its officers, directors, employees, agents, attorneys-in-fact or other Affiliates.  Each Lender 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 such Lender.

 

Section 11.7.  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 Commitment Percentage, 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 or omitted by the Administrative Agent under the Loan Documents (collectively, “Indemnifiable Amounts”); provided, however, 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 or if the Administrative Agent fails to follow the written direction of the Requisite Lenders (or all of the Lenders if expressly required hereunder) unless such failure results from the Administrative Agent following the advice of counsel to the Administrative Agent of which advice the Lenders have received notice.  Without limiting the generality of the foregoing but subject to the preceding proviso, 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 ratable share of any out-of-pocket expenses (including counsel fees of the counsel(s) of the Administrative Agent’s own choosing) incurred by the Administrative Agent in connection with the preparation, negotiation, execution, administration, or enforcement 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 amounts payable hereunder or under the other Loan Documents 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 11.8.  Successor Administrative Agent.

 

The Administrative Agent may (i) resign as Administrative Agent under the Loan Documents at any time by giving written notice thereof to the Lenders and the Borrower or (ii) be removed as Administrative Agent under the Loan Documents if (x) the Administrative Agent is a Defaulting Lender or (y) for any acts or omissions of the Administrative Agent that constitute gross negligence or willful misconduct of the Administrative Agent, in each case by the Requisite Lenders (other than the Lender then acting as the Administrative Agent) upon not less than 30 days’ prior written notice to the 

 

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Administrative Agent.  Upon any such resignation or removal, the Requisite Lenders (other than the Lender then acting as the Administrative Agent in the case of the removal of the Administrative Agent under the immediately preceding sentence) shall have the right to appoint a successor Administrative Agent which appointment shall, provided no Default or 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 thirty (30) days after the resigning Administrative Agent’s giving of notice of resignation or the Lenders’ removal of the Administrative Agent, then the resigning or removed Administrative Agent may, on behalf of the Lenders, 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.  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 retiring or removed Administrative Agent, and the retiring or removed Administrative Agent shall be discharged from its duties and obligations under the Loan Documents.  After any Administrative Agent’s resignation or removal 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.

 

Section 11.9.  Titled Agents.

 

Each of the Titled Agents in each such respective capacity, assumes no responsibility or obligation hereunder, including, without limitation, for servicing, enforcement or collection of any of the Loans, or for any duties as an agent hereunder for the Lenders.  The titles of “Joint Lead Arranger”, “Joint Bookrunner”, “Syndication Agent” and “Documentation Agents” are solely honorific and imply no fiduciary responsibility on the part of the Titled Agents to the Administrative Agent, the Borrower or any Lender 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.

 

ARTICLE XII. MISCELLANEOUS

 

Section 12.1.  Notices.

 

Unless otherwise provided herein, communications provided for hereunder shall be in writing and shall be mailed, telecopied or delivered as follows:

 

If to the Borrower:

 

U-STORE-IT, L.P.

c/o U-Store-It Trust

460 Swedesford Road, Suite 3000

Wayne, Pennsylvania  19087

Attn:  Chief Financial Officer

Telephone:  (610) 293-5700

Telecopy: (610) 293-5720

 

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with a copy to:

 

U-STORE-IT, L.P.

c/o U-Store-It Trust

460 Swedesford Road, Suite 3000

Wayne, Pennsylvania  19087

Attn: Senior Vice President — Chief Legal Officer

Telephone: (610) 293-5765

Telecopy:  (610) 293-5720

 

If to the Administrative Agent:

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

c/o Wells Fargo Real Estate Banking Group

200 Public Square - Suite 3200

Cleveland, OH 44114

Attn:  Greg Ward

Telephone: (216) 344-6945

Telecopy: (216) 344-6939

 

with a copy to:

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

c/o Wells Fargo Real Estate Banking Group

123 North Wacker - Suite 1900

Chicago, IL 60606

Attn: Pamela Probst

Loan Administration Manager

P (312) 345-7664

F (312) 782-0969

 

If to a Lender:

 

To such Lender’s address or telecopy number, as applicable, set forth in its 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 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, when received; (ii) if telecopied, when transmitted; or (iii) if hand delivered or sent by overnight courier, when delivered.  Notwithstanding the immediately preceding sentence, all notices or communications to the Administrative Agent or any Lender under Article II. shall be effective only when actually received.  Neither the Administrative Agent nor any Lender shall incur any liability to any Loan Party (nor shall the Administrative Agent incur any liability to the Lenders) for acting upon any telephonic notice referred to in this Agreement which the Administrative Agent 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 copy shall not affect the validity of notice properly given to any other Person.

 

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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 expenses and travel expenses relating to closing), and the consummation of the transactions contemplated thereby, including the reasonable and documented fees and disbursements of outside counsel to the Administrative Agent and costs and expenses in connection with the use of IntraLinks, Inc., SyndTrak or other similar information transmission systems in connection with the Loan Documents, (b) to pay or reimburse the Administrative Agent and the Lenders for all their reasonable costs and expenses incurred in connection with the enforcement or preservation of any rights under the Loan Documents, including the reasonable and documented 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 Documents, (c) to pay, and indemnify and hold harmless the Administrative Agent and the Lenders from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any failure to pay or delay in paying, documentary, stamp, excise and other similar taxes, 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 (d) to the extent not already covered by any of the preceding subsections, to pay the documented fees and disbursements of counsel to the Administrative Agent and any Lender incurred in connection with the representation of the Administrative Agent 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.(f) or 10.1.(g), 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 Borrower or any other Loan Party, whether proposed by 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 either deem the same to be Loans outstanding hereunder or otherwise 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 Lender, and each Affiliate of the Administrative Agent or any Lender, at any time while an Event of Default exists, without prior notice to the Borrower or to any other Person, any such notice being hereby expressly waived, but in the case of a Lender or an Affiliate of a Lender subject to receipt of the prior written consent of the Administrative Agent exercised in its 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 the Administrative Agent, such Lender or any such Affiliate of the Administrative Agent or such Lender, 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 although such Obligations shall be contingent or unmatured.

 

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Section 12.4.  Litigation; Jurisdiction; Other Matters; Waivers.

 

(a)           EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE BORROWER, THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS 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, EACH OF THE LENDERS, THE ADMINISTRATIVE AGENT 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, THE NOTES, OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG THE BORROWER, THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

 

(b)           EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY AGREES THAT ANY FEDERAL DISTRICT COURT AND ANY STATE COURT LOCATED IN CHARLOTTE, NORTH CAROLINA, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE BORROWER, THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE LOANS, THE NOTES OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  THE BORROWER AND EACH OF THE LENDERS EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES.  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 PARTY OR THE ENFORCEMENT BY ANY 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 LOAN DOCUMENTS AND THE TERMINATION OF THIS AGREEMENT.

 

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 the Borrower may not 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 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 (f) (and any other attempted assignment or transfer by any party hereto shall be null and void).  

 

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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 Affiliates and the partners, directors, officers, employees, agents and advisors of the Administrative Agent and the Lenders and of their respective Affiliates) 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 assignees (an “Assignee”) all or a portion of its rights and obligations under this Agreement (including all or a portion of its 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 the Loans at the time owing to the assigning Lender 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)           in any case not described in the immediately preceding subsection (A), the aggregate amount of the outstanding principal balance of the Loans of such Lender (in each case determined as of the date the Assignment and Acceptance Agreement with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Acceptance Agreement, as of the Trade Date) shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Default or Event of Default shall exist, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

 

(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 Loans assigned.

 

(iii)          Required Consents.  No consent shall be required for any assignment except to the extent required by clause (i)(B) of this subsection (b) and, in addition:

 

(A)          the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) a Default or 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; and

 

(B)           the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments if such assignment is to a Person that is not already a Lender, an Affiliate of a Lender or an Approved Fund.

 

(iv)          Assignment and Acceptance Notes.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $4,500 payable by Assignor for each assignment, and the assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.  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.

 

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(v)           No Assignment to Borrower.  No such assignment shall be made to the Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 

(vi)          No Assignment to Natural Persons.  No such assignment shall be made to a natural person.

 

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 Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, 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 Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance 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.  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 an agent of the Borrower, shall maintain at the Principal Office a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts 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, and the Borrower, the Administrative Agent and the Lenders may 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.

 

(d)           Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, (other than as provided pursuant to Section 12.5.(e)) sell 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 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 Borrower, the Administrative Agent 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) extend the date fixed for the payment of principal on the Loans or portions thereof owing to such Lender or (ii) reduce the rate at which interest is payable thereon.  Subject to the immediately following subsection (e), the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.12., 4.1., 4.4.  to the same extent as if it were the Lender it purchased such participation from and had acquired its interest by assignment pursuant to paragraph (b) of this Section.  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 such Participant agrees to be 

 

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subject to Section 3.3. as though it were a Lender.  Upon request from the Administrative Agent, a Lender shall notify the Administrative Agent and the Borrower of the sale of any participation hereunder.

 

(e)           Limitations upon Participant Rights.  A Participant shall not be entitled to receive any greater payment under Sections 3.12., 4.1. and 4.4.  than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.12. unless the Borrower consents to the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower and the Administrative Agent, to comply with Section 3.12.(c) as though it were a Lender.

 

(f)            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.

 

(g)           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 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.

 

Section 12.6.  Amendments.

 

(a)           Except as otherwise expressly provided in this Agreement, any consent or approval required or permitted by this Agreement or any other Loan Document to be given by the Lenders may be given, and any term of this Agreement or of any other Loan Document may be amended, and the performance or observance by the Borrower or any other Loan Party or any Subsidiary of any terms of this Agreement or such other Loan Document or 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 a party thereto; provided, however, any amendment of Sections 9.1. and 10.1. (m), or any amendment of any of the definitions related to such Sections 9.1. and 10.1. (m), or the waiver of the performance or observance by the Borrower or any other Loan Party or any Subsidiary of the terms of such Sections 9.1. and 10.1. (m), or the waiver of the continuance of any Default or Event of Default resulting from a violation of Section 9.1. or a waiver of the continuance of any Event of Default under Section 10.1. (m), may be made with, but only with, the written consent of the Supermajority Lenders (and, in the case of an amendment of such Sections, the Borrower).

 

(b)           Subject to the immediately following subsection (d), any term of this Agreement or of any other Loan Document relating to the rights or obligations of the Five Year Term Lenders, and not any other Lenders, 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, but only with, the written consent of the Requisite Five Year Term Lenders (and, in the case of an amendment to any Loan Document, the written consent of each Loan Party a party thereto).

 

(c)           Subject to the immediately following subsection (d), any term of this Agreement or of any other Loan Document relating to the rights or obligations of the Seven Year Term Lenders, and not 

 

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any other Lenders, 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, but only with, the written consent of the Requisite Seven Year Term Lenders (and, in the case of an amendment to any Loan Document, the written consent of each Loan Party a party thereto).

 

(d)           Notwithstanding the foregoing, without the prior written consent of each Lender adversely affected thereby, no amendment, waiver or consent shall do any of the following:

 

(i)            subject the Lenders to any additional obligations;

 

(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;

 

(iii)          reduce the amount of any Fees payable to the Lenders hereunder or postpone any date fixed for payment thereof;

 

(iv)          modify the definition of the term “Termination Date”, “Five Year Term Loan Termination Date”, “Seven Year Term Loan Termination Date” or otherwise postpone any date fixed for any payment of any principal of, or interest on, any Loans or any other Obligations (including the waiver of any Default or Event of Default as a result of the nonpayment of any such Obligations as and when due);

 

(v)           amend or otherwise modify the provisions of Section 3.2. or the definition of the term “Commitment Percentage”;

 

(vi)          modify the definition of the term “Requisite Lenders”, “Requisite Five Year Term Lenders”, “Requisite Seven Year Term Lenders” or “Supermajority Lenders” or otherwise modify in any other manner the number or percentage of the Lenders required to make any determinations or waive any rights hereunder or to modify any provision hereof, including without limitation, any modification of this Section 12.6. if such modification would have such effect;

 

(vii)         release any Guarantor from its obligations under the Guaranty (except as otherwise permitted under Section 7.12.(c)); or

 

(viii)        increase the number of Interest Periods permitted with respect to Loans under Section 2.3.

 

(e)           No amendment, waiver or consent, unless in writing and signed by the Administrative Agent, in such capacity, 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 any of the other Loan Documents.  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.

 

(f)            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.  Except as otherwise provided in Section 11.5., no 

 

79

 

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 Borrower, any other Loan Party or any other Person subsequent to the occurrence of such Event of Default.  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 any other or further notice or demand in similar or other circumstances.

 

(g)           If the Borrower enters into any amendment, supplement or other modification of the Revolving Credit Agreement or any other Loan Document (as defined in the Revolving Credit Agreement) that amends or modifies the covenants, events of default, acceleration rights or other material terms of the Revolving Credit Agreement (a “Revolving Credit Agreement Amendment”), and (i) a “Lender” under and as defined in the Revolving Credit Agreement that is also a Lender hereunder (a “Common Lender”) expressly approves the Revolving Credit Agreement Amendment, and (ii) the Borrower, the Administrative Agent and the Lenders desire to amend this Agreement or the Loan Documents, as applicable upon identical terms, then such Common Lender shall be deemed to have approved of such amendment to this Agreement or the Loan Documents, as applicable.

 

Section 12.7.  Nonliability of Administrative Agent and Lenders.

 

The relationship between the Borrower, on the one hand, and the Lenders and the Administrative Agent, on the other hand, shall be solely that of borrower and lender.  Neither the Administrative Agent nor any Lender shall have any fiduciary responsibilities to 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 or any Lender to any Lender, the Borrower, any Subsidiary or any other Loan Party.  Neither the Administrative Agent nor any Lender undertakes any responsibility to the Borrower to review or inform the Borrower of any matter in connection with any phase of the Borrower’s business or operations.  In connection with all aspects of each transaction contemplated hereby, the Borrower and each other Loan Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that (a) the credit facilities provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Borrower, each other Loan Party and their respective Affiliates, on the one hand, and the Administrative Agent and the Lenders, on the other hand; (b) neither the Administrative Agent nor any Lender has assumed or will assume any advisory, agency or fiduciary responsibility in favor of the Borrower or any other Loan Party with respect to any of the transactions contemplated hereby or the process leading hereto (irrespective of whether the Administrative Agent, any Lender or any of their respective Affiliates has advised or is currently advising the Borrower, any other Loan Party or any of their respective Affiliates on other matters) and neither the Administrative Agent nor any Lender has any obligation to the Borrower, any other Loan Party or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (c) the Administrative Agent, the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower, the other Loan Parties and their respective Affiliates, and neither the Administrative Agent nor any Lender has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship.

 

80

 

Section 12.8.  Confidentiality.

 

The Administrative Agent and each Lender shall use reasonable efforts to assure that information about the Parent, the Borrower, the other Loan Parties and other Subsidiaries, and the respective properties thereof and their operations, affairs and financial condition, not generally disclosed to the public, which is furnished to the Administrative Agent or any Lender pursuant to the provisions of this Agreement or any other Loan Document, is used only for the purposes of this Agreement and the other Loan Documents and shall not be divulged to any Person other than the Administrative Agent, the Lenders, and their respective agents who are actively and directly participating in the evaluation, administration or enforcement of the Loan Documents and other transactions between the Administrative Agent or such Lender, as applicable, and the Borrower, but in any event the Administrative Agent and the Lenders may make disclosure:  (a) to any of their respective Affiliates (provided they shall agree to keep such information confidential in accordance with the terms of this Section 12.8.); (b) as reasonably requested by any potential or actual Assignee, Participant or other transferee in connection with the contemplated transfer of any Commitment or participations therein as permitted hereunder (provided they shall agree to keep such information confidential in accordance with the terms of this Section); (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; provided, however, if the Administrative Agent or a Lender receives a summons or subpoena to disclose any such confidential information to any Person, the Administrative Agent or such Lender, as applicable, shall, if legally permitted, endeavor to notify the Borrower thereof as soon as possible after receipt of such request, summons or subpoena and the Borrower shall be afforded an opportunity to seek protective orders, or such other confidential treatment of such disclosed information, as the Borrower and the Administrative Agent or such Lender, as applicable, may deem reasonable; (d) to the Administrative Agent’s or such Lender’s independent auditors and other professional advisors (provided they shall be notified of the confidential nature of the information); (e) after the happening and during the continuance of an Event of Default, to any other Person, in connection with the exercise by the Administrative Agent or the Lenders of rights hereunder or under any of the other Loan Documents; (f) upon Borrower’s prior consent (which consent shall not be unreasonably withheld), to any contractual counter-parties to any swap or similar hedging agreement or to any rating agency; and (g) to the extent such information (x) becomes publicly available other than as a result of a breach of this Section actually known to such Lender to be such a breach or (y) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower or any Affiliate.  Notwithstanding the foregoing, the Administrative Agent and each Lender may disclose any such confidential information, without notice to the Borrower or any other Loan Party, to Governmental Authorities in connection with any regulatory examination of the Administrative Agent or such Lender or in accordance with the regulatory compliance policy of the Administrative Agent or such Lender.

 

Section 12.9.  Indemnification.

 

(a)           The Borrower shall and hereby agrees to indemnify, defend and hold harmless the Administrative Agent, each of the Lenders, any Affiliate of the Administrative Agent or any Lender, and their respective directors, officers, shareholders, agents, employees and counsel (each referred to herein as an “Indemnified Party”) from and against any and all of the following (collectively, the “Indemnified Costs”):  losses, costs, claims, damages, liabilities, deficiencies, judgments or reasonable expenses of every kind and nature (including, without limitation, amounts paid in settlement, court costs and the reasonable fees and disbursements of counsel incurred in connection with any litigation, investigation, claim or proceeding or any advice rendered in connection therewith, but excluding losses, costs, claims, damages, liabilities, deficiencies, judgments or expenses indemnification in respect of which is specifically covered by Section 3.12. or 4.1. or expressly excluded from the coverage of such Section 3.12. or 4.1.) incurred by an Indemnified Party in connection with, arising out of, or by reason of, 

 

81

 

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 hereunder; (iii) any actual or proposed use by the Borrower of the proceeds of the Loans; (iv) the Administrative Agent’s or any Lender’s entering into this Agreement; (v) the fact that the Administrative Agent and the Lenders have established the credit facility evidenced hereby in favor of the Borrower; (vi) the fact that the Administrative Agent 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 Borrower and the Subsidiaries; (vii) the fact that the Administrative Agent and the Lenders are material creditors of the Borrower and are alleged to influence directly or indirectly the business decisions or affairs of the Borrower and the Subsidiaries or their financial condition; (viii) the exercise of any right or remedy the Administrative Agent 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 reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof by, the Administrative Agent or any Lender as a result of conduct of the Borrower, any other Loan Party or any Subsidiary that violates a sanction enforced by the OFAC; or (x) any violation or non-compliance by the Borrower or any 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 Borrower or its Subsidiaries (or its respective properties) (or the Administrative Agent and/or the Lenders 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 (A) any acts or omissions of such Indemnified Party in connection with matters described in this subsection to the extent arising from the gross negligence or willful misconduct of such Indemnified Party, as determined by a court of competent jurisdiction in a final, non-appealable judgment or (B) Indemnified Costs to the extent arising directly out of or resulting directly from claims of one or more Indemnified Parties against another Indemnified Party.

 

(b)           The Borrower’s indemnification obligations under this Section 12.9. 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 regard, 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 Borrower or any Subsidiary, any shareholder of the Borrower 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 Borrower or any Subsidiary or by any Governmental Authority. If indemnification is to be sought hereunder by an Indemnified Party, then such Indemnified Party shall notify the Borrower of the commencement of any Indemnity Proceeding; provided, however, that the failure to so notify the Borrower shall not relieve the Borrower from any liability that it may have to such Indemnified Party pursuant to this Section 12.9.

 

(c)           This indemnification shall apply to any Indemnity Proceeding arising during the pendency of any bankruptcy proceeding filed by or against the Borrower and/or any Subsidiary.

 

(d)           All out-of-pocket fees and expenses of, and all amounts paid to third-persons by, an Indemnified Party shall be advanced by the Borrower at the request of such Indemnified Party notwithstanding any claim or assertion by the Borrower that such Indemnified Party is not entitled to indemnification hereunder, upon receipt of an undertaking by such Indemnified Party that such 

 

82

 

Indemnified Party will reimburse the Borrower if it is actually and finally determined by a court of competent jurisdiction that such Indemnified Party is not so entitled to indemnification hereunder.

 

(e)           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.

 

(f)            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.

 

(g)           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 other of their obligations set forth in this Agreement or any other Loan Document to which it is a party.

 

(h)           References in this Section to “Lender” or “Lenders” shall be deemed to include such Persons (and their Affiliates) in their capacity as Specified Derivatives Providers.

 

Section 12.10.  Termination; Survival.

 

This Agreement shall terminate at such time as all Obligations have been paid and satisfied in full.  The indemnities to which the Administrative Agent and the Lenders are entitled under the provisions of Sections 3.12., 4.1., 4.4., 11.7., 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 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.

 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions or affecting the validity or enforceability of such provision in any other jurisdiction.

 

83

 

Section 12.12.  GOVERNING LAW.

 

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 12.13.  Counterparts.

 

This Agreement and any amendments, waivers, consents or supplements may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument.

 

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.

 

Section 12.15.  Limitation of Liability.

 

Neither the Administrative Agent nor any Lender, nor any Affiliate, officer, director, employee, attorney, or agent of the Administrative Agent or any Lender shall have any liability with respect to, and the Borrower hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by the Borrower in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or any of the other Loan Documents.  The Borrower hereby waives, releases, and agrees not to sue the Administrative Agent or any Lender or any of the Administrative Agent’s or any Lender’s Affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or financed hereby.

 

Section 12.16.  Entire Agreement.

 

This Agreement, the Notes, and the other Loan Documents referred to herein 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.  There are no oral agreements among the parties hereto.

 

Section 12.17.  Construction.

 

The Borrower, the Parent, each Lender and the Administrative Agent 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 that this Agreement and the other Loan Documents shall be construed as if jointly drafted by the Borrower, the Parent, each Lender and the Administrative Agent.

 

[Signatures on Following Pages]

 

84

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Term Loan Agreement to be executed by their authorized officers all as of the day and year first above written.

 

	
 
    	
U-STORE-IT,   L.P.
    
	
 
    	
 
    
	
 
    	
By:   U-Store-It Trust, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Jeffrey P. Foster
    
	
 
    	
 
    	
Name:
    	
Jeffrey   P. Foster
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President, Chief Legal Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
U-STORE-IT   TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey P. Foster
    
	
 
    	
 
    	
Name:
    	
Jeffrey   P. Foster
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President, Chief Legal Officer
    

 

[Signatures Continued on Next Page]

 

 

[Signature Page to Term Loan Agreement with U-Store-It, L.P.]

 

 

	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION, 
   as Administrative Agent and as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Antoinette G. Perry
    
	
 
    	
 
    	
Name:
    	
Antoinette   G. Perry
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

 

[Signature Page to Term Loan Agreement with U-Store-It, L.P.]

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Shari L. Reams-Henofer
    
	
 
    	
 
    	
Name:
    	
Shari   L. Reams-Henofer
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

 

[Signature Page to Term Loan Agreement with U-Store-It, L.P.]

 

 

	
 
    	
U.S.   Bank National Association
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Renee Lewis
    
	
 
    	
 
    	
Name:
    	
Renee   Lewis
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

 

[Signature Page to Term Loan Agreement with U-Store-It, L.P.]

 

 

	
 
    	
SUNTRUST   BANK
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nancy B. Richards
    
	
 
    	
 
    	
Name:
    	
Nancy   B. Richards
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

 

[Signature Page to Term Loan Agreement with U-Store-It, L.P.]

 

 

	
 
    	
REGIONS   BANK
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul E. Burgan
    
	
 
    	
 
    	
Name:
    	
Paul   E. Burgan
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

 

[Signature Page to Term Loan Agreement with U-Store-It, L.P.]

 

 

	
 
    	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael W. Edwards
    
	
 
    	
 
    	
Name:
    	
Michael   W. Edwards
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

 

[Signature Page to Term Loan Agreement with U-Store-It, L.P.]

 

 

	
 
    	
RBS   CITIZENS, N.A. d/b/a CHARTER ONE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michele S. Jawyn
    
	
 
    	
 
    	
Name:
    	
Michele   S. Jawyn
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

 

Schedule 1.1.(A)

 

List of Loan Parties (other than the Parent and the Borrower)

 

 

USI II, LLC

YSI I LLC

YSI XXIX LP

YSI XXIX GP LLC

 

 

SCHEDULE 1.1(B)

 

Lender Commitments

 

	
Lender
    	
 
    	
Five Year Term
   Commitment
    	
 
    	
Seven Year Term
   Commitment
    	
 
    	
Aggregate
   Commitment
    	
 
    
	
Wells Fargo Bank, National Association
    	
 
    	
$
    	
20,000,000
    	
 
    	
$
    	
40,000,000
    	
 
    	
$
    	
60,000,000
    	
 
    
	
PNC Bank, National Association
    	
 
    	
$
    	
15,000,000
    	
 
    	
$
    	
35,000,000
    	
 
    	
$
    	
50,000,000
    	
 
    
	
U.S. Bank National Association
    	
 
    	
$
    	
15,000,000
    	
 
    	
$
    	
15,000,000
    	
 
    	
$
    	
30,000,000
    	
 
    
	
SunTrust Bank
    	
 
    	
$
    	
10,000,000
    	
 
    	
$
    	
10,000,000
    	
 
    	
$
    	
20,000,000
    	
 
    
	
Regions Bank
    	
 
    	
$
    	
20,000,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
20,000,000
    	
 
    
	
Bank of America, N.A.
    	
 
    	
$
    	
10,000,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
10,000,000
    	
 
    
	
RBS Citizens, N.A. d/b/a Charter One
    	
 
    	
$
    	
10,000,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
10,000,000
    	
 
    
	
Total:
    	
 
    	
$
    	
100,000,000.00
    	
 
    	
$
    	
100,000,000.00
    	
 
    	
$
    	
200,000,000.00
    	
 
    

 

 

Schedule 6.1.(b)

 

Ownership Structure

 

Part I: Subsidiaries

 

	
Subsidiary
    	
 
    	
Jurisdiction of 
   Organization
    	
 
    	
Holders of Equity
   Interest in
   Subsidiary
    	
 
    	
Type of Equity Interests 
   Held
    	
 
    	
Percentage of
   Ownership
    	
 
    	
Type of
   Subsidiary
    
	
U-Store-It,   L.P.
    	
 
    	
Delaware
    	
 
    	
Parent; Others
    	
 
    	
Parent: GP interests Others: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Loan   Party
    
	
Lantana   Property Owner’s Association, Inc.
    	
 
    	
Florida
    	
 
    	
Borrower
    	
 
    	
Shares
    	
 
    	
100%
    	
 
    	
Excluded
    
	
U-Store-It   Development LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
U-Store-It   Mini Warehouse Co.
    	
 
    	
Ohio
    	
 
    	
Borrower
    	
 
    	
Shares
    	
 
    	
100%
    	
 
    	
Excluded
    
	
U-Store-It   Trust Luxembourg S.ar.l.
    	
 
    	
Luxembourg
    	
 
    	
Borrower
    	
 
    	
Shares
    	
 
    	
100%
    	
 
    	
Excluded
    
	
USI   II, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Loan   Party
    
	
USI   Overseas Development Holding, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
USI   Overseas Development LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
USIFB   LP
    	
 
    	
United   Kingdom
    	
 
    	
USIFB LLP; Borrower
    	
 
    	
USIFB LLP: GP interests Borrower: LP interests
    	
 
    	
USIFB LLP: 97% Borrower: 3%
    	
 
    	
Excluded
    
	
USIFB   LLP
    	
 
    	
United   Kingdom
    	
 
    	
Borrower, Ian Connolly and Hugh Knowles
    	
 
    	
Partnership interests.
    	
 
    	
Borrower: 50.02% Connolly: 24.99% Knowles: 24.99%
    	
 
    	
Excluded
    
	
YASKY   LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   I LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Loan   Party
    
	
YSI   II LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   III LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   IV LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   IX GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   IX LP
    	
 
    	
Delaware
    	
 
    	
YSI IX GP LLC; YSI IX LP LLC
    	
 
    	
YSI IX GP LLC: GP interests YSI IX LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   IX LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   Management LLC
    	
 
    	
Delaware
    	
 
    	
Parent
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   V LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   VI LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   VII GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   VII LP
    	
 
    	
Delaware
    	
 
    	
YSI VII GP LLC; YSI VII LP LLC
    	
 
    	
YSI VII GP LLC: GP interests YSI VII LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   VII LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   VIII GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   VIII LP
    	
 
    	
Delaware
    	
 
    	
YSI VIII GP 
    	
 
    	
YSI VIII GP LLC: 
    	
 
    	
GP interests: 100% 
    	
 
    	
Excluded
    

 

 

	
Subsidiary
    	
 
    	
Jurisdiction of 
   Organization
    	
 
    	
Holders of Equity
   Interest in
   Subsidiary
    	
 
    	
Type of Equity Interests 
   Held
    	
 
    	
Percentage of
   Ownership
    	
 
    	
Type of
   Subsidiary
    
	
 
    	
 
    	
 
    	
 
    	
LLC; YSI VIII LP LLC
    	
 
    	
GP interests YSI VIII LP LLC: LP interests
    	
 
    	
LP interests: 100%
    	
 
    	
 
    
	
YSI   VIII LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   X GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   X LP
    	
 
    	
Delaware
    	
 
    	
YSI X GP LLC; YSI X LP LLC
    	
 
    	
YSI X GP LLC: GP interests YSI X LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   X LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XI GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XI LP
    	
 
    	
Delaware
    	
 
    	
YSI XI GP LLC; YSI XI LP LLC
    	
 
    	
YSI XI GP LLC: GP interests YSI XI LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XI LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XII GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XII LP
    	
 
    	
Delaware
    	
 
    	
YSI XII GP LLC; YSI XII LP LLC
    	
 
    	
Partnership Interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XII LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XIII GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XIII LP
    	
 
    	
Delaware
    	
 
    	
YSI XIII GP LLC; YSI XIII LP LLC
    	
 
    	
YSI XIII GP LLC: GP interests YSI XIII LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XIII LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XIV GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XIV LP
    	
 
    	
Delaware
    	
 
    	
YSI XIV GP LLC; YSI XIV LP LLC
    	
 
    	
YSI XIV GP LLC: GP interests YSI XIV LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XIV LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XV LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XVI LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XVII GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XVII LP
    	
 
    	
Delaware
    	
 
    	
YSI XVII GP LLC; YSI XVII LP LLC
    	
 
    	
YSI XVII GP LLC: GP interests YSI XVII LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XVII LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XX GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XX LP
    	
 
    	
Delaware
    	
 
    	
YSI XX GP LLC; YSI XX LP LLC
    	
 
    	
YSI XX GP LLC: GP interests YSI XX LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XX LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXII LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXIX GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Loan   Party
    
	
YSI   XXIX LP
    	
 
    	
Delaware
    	
 
    	
YSI XXIX GP LLC; YSI XXIX LP LLC
    	
 
    	
YSI XXIX GP LLC: GP interests YSI XXIX LP LLC:
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Loan   Party
    

 

 

	
Subsidiary
    	
 
    	
Jurisdiction of 
   Organization
    	
 
    	
Holders of Equity
   Interest in
   Subsidiary
    	
 
    	
Type of Equity Interests 
   Held
    	
 
    	
Percentage of
   Ownership
    	
 
    	
Type of
   Subsidiary
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
LP interests
    	
 
    	
 
    	
 
    	
 
    
	
YSI   XXIX LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXV GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXV LP
    	
 
    	
Delaware
    	
 
    	
YSI XXV GP LLC; YSI XXV LP LLC
    	
 
    	
YSI XXV GP LLC: GP interests YSI XXV LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XXV LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXVI GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXVI LP
    	
 
    	
Delaware
    	
 
    	
YSI XXVI GP LLC; YSI XXVI LP LLC
    	
 
    	
YSI XXVI GP LLC: GP interests YSI XXVI LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XXVI LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXVII GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXVII LP
    	
 
    	
Delaware
    	
 
    	
YSI XXVII GP LLC; YSI XXVII LP LLC
    	
 
    	
YSI XXVII GP LLC: GP interests YSI XXVII LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XXVII LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXVIII GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXVIII LP
    	
 
    	
Delaware
    	
 
    	
YSI XXVIII GP LLC; YSI XXVIII LP LLC
    	
 
    	
YSI XXVIII GP LLC: GP interests YSI XXVIII LP LLC: LP interests
    	
 
    	
GP interests: 100% LP interests: 100%
    	
 
    	
Excluded
    
	
YSI   XXVIII LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXX LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXI, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXII, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXIII, LLC
    	
 
    	
Delaware
    	
 
    	
YSI XXXIIIA, LLC
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXIIIA, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXIV, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXV, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXVI, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXVII, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXVIII, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXIX, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXX, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXXI, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXXII, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXXIII, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXXIV, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXXV, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXXVI, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXXVII, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XXXXVIII, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   XLIX, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   L, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   Venture LP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   Venture GP LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI-Hart   Limited Partnership
    	
 
    	
Delaware
    	
 
    	
YSI Venture 
    	
 
    	
YSI Venture GP 
    	
 
    	
50%
    	
 
    	
Excluded
    

 

 

	
Subsidiary
    	
 
    	
Jurisdiction of 
   Organization
    	
 
    	
Holders of Equity
   Interest in
   Subsidiary
    	
 
    	
Type of Equity Interests 
   Held
    	
 
    	
Percentage of
   Ownership
    	
 
    	
Type of
   Subsidiary
    
	
 
    	
 
    	
 
    	
 
    	
GP LLC; YSI Venture LP LLC
    	
 
    	
LLC: GP interests YSI Venture LP LLC: LP interests
    	
 
    	
 
    	
 
    	
 
    
	
YSI   Hart TRS Inc.
    	
 
    	
Delaware
    	
 
    	
YSI-Hart Limited Partnership
    	
 
    	
Common Shares
    	
 
    	
100%
    	
 
    	
Excluded
    
	
Storage   Asset Management, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
Property   Guard, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    
	
YSI   Burke Lake, LLC
    	
 
    	
Delaware
    	
 
    	
Borrower
    	
 
    	
LLC interests
    	
 
    	
100%
    	
 
    	
Excluded
    

 

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, any such Person, and the following additional items:

 

·                  Existing equity compensation plans described on the Parent’s Form 10-K for the fiscal year ending December 31, 2010.

 

·                  Pursuant to the Second Amended and Restated Agreement of Limited Partnership of the Borrower, partnership units may be redeemed for cash, or at the Parent’s option, common shares on a one-for-one basis.

 

·                  Outstanding awards granted under the Parent’s equity compensation plans currently consist of Time Vested Restricted Share Awards, Performance-Vested Restricted Share Awards and Non-Qualified Stock Option Awards. Certain executive officers of the Parent entered into amended and restated employment agreements in December 2008 and June 2010 pursuant to which such executive officers are entitled to participate in the Parent’s equity compensation plans. The Parent’s equity compensation plans are more fully described in the Parent’s Proxy Statement dated April 13, 2009 and the Parent’s Annual Report on Form 10-K for the year ended December 31, 2010.

 

·                  Certain trustees of the Parent have received deferred shares under the U-Store-It Trust Deferred Trustees Plan.  The deferred shares are convertible to common shares of the Parent on a one-for-one basis following termination of service.  Until converted to common shares, the deferred shares have dividend equivalent reinvestment rights.

 

·                  The Parent filed a Registration Statement on Form S-3 in March 2007 (and a post-effective amendment thereto in August 2009) to satisfy all outstanding registration rights.

 

·                  Pursuant to a Sales Agreement with Cantor Fitzgerald & Co., the Parent has reserved 10 million common shares that may be issued from time to time at the market offerings in connection with the Parent’s controlled equity offering program.

 

 

Part II: Unconsolidated Affiliates of Parent

 

	
Unconsolidated Affiliate
    	
 
    	
Type of Legal
   Entity
    	
 
    	
Equity Interests Held by
   Parent
    
	
USIFB   LLP
    	
 
    	
Limited Partnership
    	
 
    	
50%
    

 

Part III:

 

Existing Investments in Subsidiaries:

 

None.

 

 

Schedule 6.1.(f)

 

Title to Properties; Liens

 

Part I: Real Property

 

See attached.

 

 

	
Facility #
    	
 
    	
Street
    	
 
    	
City
    	
 
    	
State
    	
 
    	
Zip
    	
 
    	
County
    	
 
    	
Owner
    
	
200
    	
 
    	
630   WEST CAMINO CASA VERDE
    	
 
    	
GREEN   VALLEY
    	
 
    	
AZ
    	
 
    	
85614
    	
 
    	
PIMA
    	
 
    	
YSI   XXV LP
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
201
    	
 
    	
480   S. ARIZONA AVENUE
    	
 
    	
CHANDLER
    	
 
    	
AZ
    	
 
    	
85225
    	
 
    	
MARICOPA
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
202
    	
 
    	
3899   N. ORACLE RD. I
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85705
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
203
    	
 
    	
3680   W ORANGE GROVE RD
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85741
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
204
    	
 
    	
2424   N. ORACLE RD. II
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85705
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
205
    	
 
    	
2545   S SIXTH AVE
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85713
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
206
    	
 
    	
2855   S PANTANO RD
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85730
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
207
    	
 
    	
7070   E SPEEDWAY BLVD
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85710
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
208
    	
 
    	
8361   E. BROADWAY BLVD
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85710
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
210
    	
 
    	
5550   S. PALO VERDE
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85706
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
211
    	
 
    	
975   S. PRUDENCE
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85710
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
212
    	
 
    	
519   E PRINCE RD
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85705
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
213
    	
 
    	
3955   E. 29TH ST
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85711
    	
 
    	
PIMA
    	
 
    	
YSI   XX LP
    
	
214
    	
 
    	
6560   E. TANQUE VERDE RD.
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85715
    	
 
    	
PIMA
    	
 
    	
U-Store-It,   L.P.
    
	
217
    	
 
    	
275   S PROSPECTORS DR
    	
 
    	
DIAMOND   BAR
    	
 
    	
CA
    	
 
    	
91765
    	
 
    	
LOS   ANGELES
    	
 
    	
U-Store-It,   L.P.
    
	
218
    	
 
    	
6491   MAPLE AVE
    	
 
    	
WESTMINSTER
    	
 
    	
CA
    	
 
    	
92683
    	
 
    	
ORANGE
    	
 
    	
YSI   XXVI LP
    
	
219
    	
 
    	
2620   FLORIN RD
    	
 
    	
SACRAMENTO
    	
 
    	
CA
    	
 
    	
95822
    	
 
    	
SACRAMENTO
    	
 
    	
YSI   XX LP
    
	
220
    	
 
    	
7245   55TH ST
    	
 
    	
SACRAMENTO
    	
 
    	
CA
    	
 
    	
95823
    	
 
    	
SACRAMENTO
    	
 
    	
YSI   XX LP
    
	
221
    	
 
    	
900   ORLANDO AVE
    	
 
    	
ROSEVILLE
    	
 
    	
CA
    	
 
    	
95661
    	
 
    	
PLACER
    	
 
    	
YSI   XX LP
    
	
222
    	
 
    	
10651   WHITE ROCK RD
    	
 
    	
RANCHO   CORDOVA
    	
 
    	
CA
    	
 
    	
95670
    	
 
    	
SACRAMENTO
    	
 
    	
YSI   XX LP
    
	
223
    	
 
    	
4950   WATT AVE
    	
 
    	
N.   HIGHLANDS
    	
 
    	
CA
    	
 
    	
95660
    	
 
    	
SACRAMENTO
    	
 
    	
YSI   XX LP
    
	
224
    	
 
    	
9360   GREENBACK LANE
    	
 
    	
ORANGEVALE
    	
 
    	
CA
    	
 
    	
95662
    	
 
    	
SACRAMENTO
    	
 
    	
YSI   XX LP
    
	
225
    	
 
    	
775   N 16TH ST
    	
 
    	
SACRAMENTO
    	
 
    	
CA
    	
 
    	
95811
    	
 
    	
SACRAMENTO
    	
 
    	
YSI   XX LP
    
	
226
    	
 
    	
7562   GREENBACK LANE
    	
 
    	
CITRUS   HEIGHTS
    	
 
    	
CA
    	
 
    	
95610
    	
 
    	
SACRAMENTO
    	
 
    	
YSI   XX LP
    
	
227
    	
 
    	
946   E RANCHEROS DR
    	
 
    	
SAN   MARCOS
    	
 
    	
CA
    	
 
    	
92069
    	
 
    	
SAN   DIEGO
    	
 
    	
YSI   XXVI LP
    
	
228
    	
 
    	
11402   CHEROKEE ST
    	
 
    	
NORTHGLENN
    	
 
    	
CO
    	
 
    	
80234
    	
 
    	
ADAMS
    	
 
    	
YSI   XX LP
    
	
229
    	
 
    	
8444   N. PECOS ST
    	
 
    	
FEDERAL   HTS.
    	
 
    	
CO
    	
 
    	
80260
    	
 
    	
ADAMS
    	
 
    	
YSI   XX LP
    
	
230
    	
 
    	
10303   E WARREN AVE
    	
 
    	
DENVER
    	
 
    	
CO
    	
 
    	
80247
    	
 
    	
ARAPAHOE
    	
 
    	
YSI   XX LP
    
	
231
    	
 
    	
16845   MOUNT VERNON RD.
    	
 
    	
GOLDEN
    	
 
    	
CO
    	
 
    	
80401
    	
 
    	
JEFFERSON
    	
 
    	
YSI   XX LP
    
	
232
    	
 
    	
5353   E. COUNTY LINE RD
    	
 
    	
CENTENNIAL
    	
 
    	
CO
    	
 
    	
80122
    	
 
    	
ARAPAHOE
    	
 
    	
YSI   XX LP
    
	
233
    	
 
    	
2001   GIRARD BLVD SE
    	
 
    	
ALBUQUERQUE
    	
 
    	
NM
    	
 
    	
87106
    	
 
    	
BERNALILLO
    	
 
    	
YSI   XX LP
    
	
234
    	
 
    	
11801   MONTGOMERY BLVD
    	
 
    	
ALBUQUERQUE
    	
 
    	
NM
    	
 
    	
87111
    	
 
    	
BERNALILLO
    	
 
    	
YSI   XX LP
    
	
236
    	
 
    	
7440   CENTRAL AVE
    	
 
    	
ALBUQUERQUE
    	
 
    	
NM
    	
 
    	
87108
    	
 
    	
BERNALILLO
    	
 
    	
YSI   XX LP
    
	
237
    	
 
    	
304   SOUTH 6TH ST
    	
 
    	
CARLSBAD
    	
 
    	
NM
    	
 
    	
88220
    	
 
    	
EDDY
    	
 
    	
YSI   XXV LP
    
	
238
    	
 
    	
1010   S. DIAMOND AVE
    	
 
    	
DEMING
    	
 
    	
NM
    	
 
    	
88030
    	
 
    	
LUNA
    	
 
    	
YSI   XXV LP
    
	
239
    	
 
    	
1100   N. LOVE ST
    	
 
    	
LOVINGTON
    	
 
    	
NM
    	
 
    	
88260
    	
 
    	
LEA
    	
 
    	
YSI   XXV LP
    
	
240
    	
 
    	
1200   N. LOVE ST
    	
 
    	
LOVINGTON
    	
 
    	
NM
    	
 
    	
88260
    	
 
    	
LEA
    	
 
    	
YSI   XXV LP
    
	
241
    	
 
    	
1100   E. MADRID AVE
    	
 
    	
LAS   CRUCES
    	
 
    	
NM
    	
 
    	
88001
    	
 
    	
DONA   ANA
    	
 
    	
U-Store-It,   L.P.
    
	
242
    	
 
    	
11732   HIGHWAY 180 E
    	
 
    	
SILVER   CITY
    	
 
    	
NM
    	
 
    	
88061
    	
 
    	
GRANT
    	
 
    	
YSI   XXV LP
    
	
243
    	
 
    	
801   N HIGHWAY 51
    	
 
    	
TRUTH   OR CONSQ.
    	
 
    	
NM
    	
 
    	
87901
    	
 
    	
SIERRA
    	
 
    	
YSI   XXV LP
    
	
244
    	
 
    	
4811   CENTRAL AVENUE PIKE
    	
 
    	
KNOXVILLE
    	
 
    	
TN
    	
 
    	
37912
    	
 
    	
KNOX
    	
 
    	
YSI   XXX LLC
    
	
245
    	
 
    	
4709   CHAPMAN HIGHWAY
    	
 
    	
KNOXVILLE
    	
 
    	
TN
    	
 
    	
37920
    	
 
    	
KNOX
    	
 
    	
YSI   XXX LLC
    
	
246
    	
 
    	
8713   UNICORN DRIVE
    	
 
    	
KNOXVILLE
    	
 
    	
TN
    	
 
    	
37923
    	
 
    	
KNOX
    	
 
    	
YSI   XXX LLC
    
	
247
    	
 
    	
142   AIRPORT PLAZA DR
    	
 
    	
ALCOA
    	
 
    	
TN
    	
 
    	
37701
    	
 
    	
BLOUNT
    	
 
    	
YSI   XXX LLC
    
	
248
    	
 
    	
7777   MORIARTY RD
    	
 
    	
CORDOVA
    	
 
    	
TN
    	
 
    	
38018
    	
 
    	
SHELBY
    	
 
    	
YSI   XXVI LP
    
	
249
    	
 
    	
5141   AMERICAN WAY
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38115
    	
 
    	
SHELBY
    	
 
    	
YSI   XXVI LP
    
	
250
    	
 
    	
6390   WINCHESTER RD.
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38115
    	
 
    	
SHELBY
    	
 
    	
YSI   XXVI LP
    
	
251
    	
 
    	
4705   WINCHESTER RD.
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38118
    	
 
    	
SHELBY
    	
 
    	
YSI   XXVI LP
    
	
252
    	
 
    	
1500   LOMALAND DR
    	
 
    	
EL   PASO
    	
 
    	
TX
    	
 
    	
79935
    	
 
    	
EL   PASO
    	
 
    	
YSI   XX LP
    

 

 

	
253
    	
 
    	
10642   MONTANA AVE
    	
 
    	
EL   PASO
    	
 
    	
TX
    	
 
    	
79935
    	
 
    	
EL   PASO
    	
 
    	
YSI   XX LP
    
	
254
    	
 
    	
9447   DIANA DR
    	
 
    	
EL   PASO
    	
 
    	
TX
    	
 
    	
79924
    	
 
    	
EL   PASO
    	
 
    	
YSI   XX LP
    
	
255
    	
 
    	
5201   N MESA ST
    	
 
    	
EL   PASO
    	
 
    	
TX
    	
 
    	
79912
    	
 
    	
EL   PASO
    	
 
    	
YSI   XX LP
    
	
256
    	
 
    	
301   N. CLARK DR
    	
 
    	
EL   PASO
    	
 
    	
TX
    	
 
    	
79905
    	
 
    	
EL   PASO
    	
 
    	
YSI   XXV LP
    
	
257
    	
 
    	
11565   JAMES WATT DR
    	
 
    	
EL   PASO
    	
 
    	
TX
    	
 
    	
79936
    	
 
    	
EL   PASO
    	
 
    	
YSI   XXV LP
    
	
258
    	
 
    	
741   N HARVEY MITCHELL PKWY
    	
 
    	
BRYAN
    	
 
    	
TX
    	
 
    	
77807
    	
 
    	
BRAZOS
    	
 
    	
YSI   XXIX LP
    
	
259
    	
 
    	
3412   GARTH RD
    	
 
    	
BAYTOWN
    	
 
    	
TX
    	
 
    	
77521
    	
 
    	
HARRIS
    	
 
    	
YSI   XXIX LP
    
	
260
    	
 
    	
11702   BEACHNUT STREET
    	
 
    	
HOUSTON
    	
 
    	
TX
    	
 
    	
77072
    	
 
    	
HARRIS
    	
 
    	
YSI   XXIX LP
    
	
261
    	
 
    	
10601   W. FAIRMONT PKWY
    	
 
    	
LA   PORTE
    	
 
    	
TX
    	
 
    	
77571
    	
 
    	
HARRIS
    	
 
    	
YSI   XXIX LP
    
	
262
    	
 
    	
2150   WIRT ROAD
    	
 
    	
HOUSTON
    	
 
    	
TX
    	
 
    	
77055
    	
 
    	
HARRIS
    	
 
    	
YSI   XXIX LP
    
	
263
    	
 
    	
9900   ROWLETT ROAD
    	
 
    	
HOUSTON
    	
 
    	
TX
    	
 
    	
77075
    	
 
    	
HARRIS
    	
 
    	
YSI   XXVII LP
    
	
264
    	
 
    	
7001   SYNOTT ROAD
    	
 
    	
HOUSTON
    	
 
    	
TX
    	
 
    	
77083
    	
 
    	
HARRIS
    	
 
    	
YSI   XXVIII LP
    
	
265
    	
 
    	
104   HOLLEMAN DRIVE
    	
 
    	
COLLEGE   STATION
    	
 
    	
TX
    	
 
    	
77840
    	
 
    	
BRAZOS
    	
 
    	
YSI   XXVIII LP
    
	
267
    	
 
    	
4640   S 900 EAST
    	
 
    	
MURRAY
    	
 
    	
UT
    	
 
    	
84117
    	
 
    	
SALT   LAKE
    	
 
    	
YSI   XX LP
    
	
268
    	
 
    	
350   S REDWOOD RD
    	
 
    	
SALT   LAKE CITY
    	
 
    	
UT
    	
 
    	
84104
    	
 
    	
SALT   LAKE
    	
 
    	
YSI   XX LP
    
	
269
    	
 
    	
3528   S 300 WEST
    	
 
    	
SALT   LAKE CITY
    	
 
    	
UT
    	
 
    	
84115
    	
 
    	
SALT   LAKE
    	
 
    	
YSI   XX LP
    
	
270
    	
 
    	
5174   COMMERCE DR
    	
 
    	
MURRAY
    	
 
    	
UT
    	
 
    	
84107
    	
 
    	
SALT   LAKE
    	
 
    	
YSI   XX LP
    
	
272
    	
 
    	
536   N. POWER ROAD
    	
 
    	
MESA
    	
 
    	
AZ
    	
 
    	
85205
    	
 
    	
MARICOPA
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
273
    	
 
    	
3026   S. COUNTRY CLUB DRIVE
    	
 
    	
MESA
    	
 
    	
AZ
    	
 
    	
85210
    	
 
    	
MARICOPA
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
274
    	
 
    	
909   S. COUNTRY CLUB DRIVE
    	
 
    	
MESA
    	
 
    	
AZ
    	
 
    	
85210
    	
 
    	
MARICOPA
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
275
    	
 
    	
1844   N. 43RD AVE.
    	
 
    	
PHOENIX
    	
 
    	
AZ
    	
 
    	
85009
    	
 
    	
MARICOPA
    	
 
    	
U-Store-It,   L.P.
    
	
276
    	
 
    	
3122   E. WASHINGTON STREET
    	
 
    	
PHOENIX
    	
 
    	
AZ
    	
 
    	
85034
    	
 
    	
MARICOPA
    	
 
    	
U-Store-It,   L.P.
    
	
276-2 
   Annex/E
   xpansion
    	
 
    	
3036   E. WASHINGTON STREET
    	
 
    	
PHOENIX
    	
 
    	
AZ
    	
 
    	
85034
    	
 
    	
MARICOPA
    	
 
    	
U-Store-It,   L.P.
    
	
277
    	
 
    	
198   W. ARTESIA BLVD.
    	
 
    	
LONG   BEACH
    	
 
    	
CA
    	
 
    	
90805
    	
 
    	
LOS   ANGELES
    	
 
    	
U-Store-It,   L.P.
    
	
279
    	
 
    	
1400   S. GENE AUTRY TRAIL
    	
 
    	
PALM   SPRINGS
    	
 
    	
CA
    	
 
    	
92264
    	
 
    	
RIVERSIDE
    	
 
    	
U-Store-It,   L.P.
    
	
280
    	
 
    	
401 &   500 RADIO ROAD
    	
 
    	
PALM   SPRINGS
    	
 
    	
CA
    	
 
    	
92262
    	
 
    	
RIVERSIDE
    	
 
    	
U-Store-It,   L.P.
    
	
281
    	
 
    	
67650-67714   E. RAMON ROAD
    	
 
    	
CATHEDRAL   CITY
    	
 
    	
CA
    	
 
    	
92234
    	
 
    	
RIVERSIDE
    	
 
    	
U-Store-It,   L.P.
    
	
282
    	
 
    	
210   W. BONNIE VIEW
    	
 
    	
RIALTO
    	
 
    	
CA
    	
 
    	
92376
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YSI   XXXXVIII LLC
    
	
283
    	
 
    	
7600   ARLINGTON AVENUE
    	
 
    	
RIVERSIDE
    	
 
    	
CA
    	
 
    	
92503
    	
 
    	
RIVERSIDE
    	
 
    	
YSI   XXXXVIII LLC
    
	
284
    	
 
    	
4011   FAIRGROUNDS STREET
    	
 
    	
RIVERSIDE
    	
 
    	
CA
    	
 
    	
92501
    	
 
    	
RIVERSIDE
    	
 
    	
U-Store-It,   L.P.
    
	
285
    	
 
    	
2828   W. 5TH STREET
    	
 
    	
SANTA   ANA
    	
 
    	
CA
    	
 
    	
92703
    	
 
    	
ORANGE
    	
 
    	
U-Store-It,   L.P.
    
	
286
    	
 
    	
9180   JAMACHA ROAD
    	
 
    	
SPRING   VALLEY
    	
 
    	
CA
    	
 
    	
91977
    	
 
    	
SAN   DIEGO
    	
 
    	
YSI   XXXXVIII LLC
    
	
287
    	
 
    	
401   S. WATERMAN AVE.
    	
 
    	
SAN   BERNARDINO
    	
 
    	
CA
    	
 
    	
92408
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YSI   XXXXVIII LLC
    
	
288
    	
 
    	
601   S. WATERMAN AVE.
    	
 
    	
SAN   BERNARDINO
    	
 
    	
CA
    	
 
    	
92408
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YSI   XXXXVIII LLC
    
	
289
    	
 
    	
1450   W. 23RD ST.
    	
 
    	
SAN   BERNARDINO
    	
 
    	
CA
    	
 
    	
92411
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YSI   XXXXVIII LLC
    
	
290
    	
 
    	
1441   E. BASELINE ST.
    	
 
    	
SAN   BERNARDINO
    	
 
    	
CA
    	
 
    	
92410
    	
 
    	
SAN   BERNARDINO
    	
 
    	
U-Store-It,   L.P.
    
	
291
    	
 
    	
72500   VARNER ROAD
    	
 
    	
THOUSAND   PALMS
    	
 
    	
CA
    	
 
    	
92276
    	
 
    	
RIVERSIDE
    	
 
    	
U-Store-It,   L.P.
    
	
292
    	
 
    	
2645   S. NELLIS BLVD.
    	
 
    	
LAS   VEGAS
    	
 
    	
NV
    	
 
    	
89121
    	
 
    	
CLARK
    	
 
    	
U-Store-It,   L.P.
    
	
293
    	
 
    	
7370   W. CHEYENNE AVE.
    	
 
    	
LAS   VEGAS
    	
 
    	
NV
    	
 
    	
89129
    	
 
    	
CLARK
    	
 
    	
U-Store-It,   L.P.
    

 

 

	
295
    	
 
    	
1220   SPRING STUEBNER RD
    	
 
    	
SPRING
    	
 
    	
TX
    	
 
    	
77373
    	
 
    	
HARRIS
    	
 
    	
U-Store-It,   L.P.
    
	
296
    	
 
    	
8716   JEFFERSON DAVIS HWY
    	
 
    	
FREDRICKSBURG
    	
 
    	
VA
    	
 
    	
22407
    	
 
    	
SPOTSYLDANIA
    	
 
    	
YSI   XXXV LLC
    
	
297
    	
 
    	
20   PLANTATION DRIVE - SUITE 151
    	
 
    	
FREDRICKSBURG
    	
 
    	
VA
    	
 
    	
22406
    	
 
    	
STAFFORD
    	
 
    	
YSI   XXXV LLC
    
	
298
    	
 
    	
1100   E. MADRID AVE
    	
 
    	
LAS   CRUCES
    	
 
    	
NM
    	
 
    	
88001
    	
 
    	
DONA   ANA
    	
 
    	
U-Store-It,   L.P.
    
	
302
    	
 
    	
15120   NE 6TH AVENUE
    	
 
    	
MIAMI
    	
 
    	
FL
    	
 
    	
33162
    	
 
    	
DADE
    	
 
    	
YSI   VI LLC
    
	
303
    	
 
    	
5500   NW 15TH STREET II
    	
 
    	
MARGATE
    	
 
    	
FL
    	
 
    	
33063
    	
 
    	
PALM   BEACH
    	
 
    	
YASKY   LLC
    
	
304
    	
 
    	
4080   RAVENSWOOD ROAD
    	
 
    	
DANIA
    	
 
    	
FL
    	
 
    	
33312
    	
 
    	
BROWARD
    	
 
    	
U-Store-It,   L.P.
    
	
305
    	
 
    	
330   BUSINESS PARK WAY
    	
 
    	
ROYAL   PALM
    	
 
    	
FL
    	
 
    	
33411
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    
	
310
    	
 
    	
23711   MILES ROAD
    	
 
    	
WARRENVILLE
    	
 
    	
OH
    	
 
    	
44128
    	
 
    	
CUYAHOGA
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
311
    	
 
    	
60   LITTELL ROAD
    	
 
    	
E.   HANOVER
    	
 
    	
NJ
    	
 
    	
07936
    	
 
    	
MORRIS
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
312
    	
 
    	
1951   EAST LINDEN AVENUE
    	
 
    	
LINDEN
    	
 
    	
NJ
    	
 
    	
07036
    	
 
    	
UNION
    	
 
    	
USI   II, LLC
    
	
313
    	
 
    	
1242   ROUTE 70
    	
 
    	
BRICK
    	
 
    	
NJ
    	
 
    	
08724
    	
 
    	
OCEAN
    	
 
    	
USI   II, LLC
    
	
315
    	
 
    	
601   SOUTH AVENUE
    	
 
    	
CRANFORD
    	
 
    	
NJ
    	
 
    	
07016
    	
 
    	
UNION
    	
 
    	
YSI   XXXI LLC
    
	
316
    	
 
    	
282   CHAPEL ROAD
    	
 
    	
S.   WINDSOR
    	
 
    	
CT
    	
 
    	
06074
    	
 
    	
HARTFORD
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
317
    	
 
    	
90   ROWE AVENUE
    	
 
    	
MILFORD
    	
 
    	
CT
    	
 
    	
06461
    	
 
    	
NEW   HAVEN
    	
 
    	
USI   II, LLC
    
	
318
    	
 
    	
868   FLANDERS ROAD
    	
 
    	
MYSTIC
    	
 
    	
CT
    	
 
    	
06355
    	
 
    	
NEW   LONDON
    	
 
    	
USI   II, LLC
    
	
322
    	
 
    	
200   SR 206 EAST
    	
 
    	
ST.   AUGUSTINE
    	
 
    	
FL
    	
 
    	
32086
    	
 
    	
ST.   JOHN
    	
 
    	
U-Store-It,   L.P.
    
	
323
    	
 
    	
1678   SOUTH 8TH STREET
    	
 
    	
FERNANDINA
    	
 
    	
FL
    	
 
    	
32034
    	
 
    	
NASSAU
    	
 
    	
U-Store-It,   L.P.
    
	
325
    	
 
    	
5501   NW 15TH STREET I
    	
 
    	
MARGATE
    	
 
    	
FL
    	
 
    	
33063
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    
	
326
    	
 
    	
522   COTTAGE GROVE ROAD
    	
 
    	
BLOOMFIELD
    	
 
    	
CT
    	
 
    	
06002
    	
 
    	
HARTFORD
    	
 
    	
U-Store-It,   L.P.
    
	
328
    	
 
    	
1700   LINDEN AVENUE
    	
 
    	
KNOXVILLE
    	
 
    	
TN
    	
 
    	
37917
    	
 
    	
KNOX
    	
 
    	
YSI   XXXVIII LLC
    
	
332
    	
 
    	
7200   OLD CHENEY HIGHWAY
    	
 
    	
ORLANDO
    	
 
    	
FL
    	
 
    	
32807
    	
 
    	
ORANGE
    	
 
    	
U-Store-It,   L.P.
    
	
334
    	
 
    	
3731   SHOTSMAN LANE
    	
 
    	
KNOXVILLE
    	
 
    	
TN
    	
 
    	
37918
    	
 
    	
KNOX
    	
 
    	
U-Store-It,   L.P.
    
	
336
    	
 
    	
44618   PECHANGA PKWY
    	
 
    	
TEMECULA
    	
 
    	
CA
    	
 
    	
92592
    	
 
    	
RIVERSIDE   COUNTY
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
337
    	
 
    	
4145   STATE ROUTE 741 SOUTH
    	
 
    	
MASON
    	
 
    	
OH
    	
 
    	
45040
    	
 
    	
RIVERSIDE
    	
 
    	
U-Store-It,   L.P.
    
	
340
    	
 
    	
7028   NORTH DYSART ROAD
    	
 
    	
GLENDALE
    	
 
    	
AZ
    	
 
    	
85307
    	
 
    	
MARICOPA
    	
 
    	
U-Store-It,   L.P.
    
	
347
    	
 
    	
201   SOUTH PLUMER AVENUE
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85719
    	
 
    	
PIMA
    	
 
    	
U-Store-It,   L.P.
    
	
348
    	
 
    	
3265   EAST SPEEDWAY
    	
 
    	
TUCSON
    	
 
    	
AZ
    	
 
    	
85716
    	
 
    	
PIMA
    	
 
    	
YSI   XXXXIII LLC
    
	
349
    	
 
    	
11000   NORTH 115TH STREET
    	
 
    	
SCOTTSDALE
    	
 
    	
AZ
    	
 
    	
85259
    	
 
    	
MARICOPA
    	
 
    	
U-Store-It,   L.P.
    
	
354
    	
 
    	
2349   TRADE CENTER WAY
    	
 
    	
NAPLES
    	
 
    	
FL
    	
 
    	
34109
    	
 
    	
COLLIER
    	
 
    	
U-Store-It,   L.P.
    
	
359
    	
 
    	
4540   WALKER BLVD.
    	
 
    	
KNOXVILLE
    	
 
    	
TN
    	
 
    	
37917
    	
 
    	
KNOX
    	
 
    	
U-Store-It,   L.P.
    
	
362
    	
 
    	
950   TRINITY ROAD
    	
 
    	
RALEIGH
    	
 
    	
NC
    	
 
    	
27607
    	
 
    	
WAKE
    	
 
    	
U-Store-It,   L.P.
    
	
364
    	
 
    	
3831   REDWING CIRCLE
    	
 
    	
DECATUR
    	
 
    	
GA
    	
 
    	
30032
    	
 
    	
DEKALB
    	
 
    	
U-Store-It,   L.P.
    
	
365
    	
 
    	
1500   BRUSH ROAD
    	
 
    	
EUCLID
    	
 
    	
OH
    	
 
    	
44143
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
366
    	
 
    	
23640   LAKELAND BOULEVARD
    	
 
    	
EUCLID
    	
 
    	
OH
    	
 
    	
44132
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
367
    	
 
    	
6801   ENGLE ROAD
    	
 
    	
MIDDLEBURG   HEIGHTS
    	
 
    	
OH
    	
 
    	
44130
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
368
    	
 
    	
24000   LORAIN ROAD
    	
 
    	
N.   OLMSTED
    	
 
    	
OH
    	
 
    	
44070
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
369
    	
 
    	
1501   ROUTE 12
    	
 
    	
GALES   FERRY
    	
 
    	
CT
    	
 
    	
06335
    	
 
    	
NEW   LONDON
    	
 
    	
U-Store-It,   L.P.
    
	
370
    	
 
    	
171   CEDAR STREET
    	
 
    	
BRANFORD
    	
 
    	
CT
    	
 
    	
06405
    	
 
    	
NEW   HAVEN
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
371
    	
 
    	
1238   WEST BASELINE
    	
 
    	
RIALTO
    	
 
    	
CA
    	
 
    	
92376
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
372
    	
 
    	
277   ROUTE 46
    	
 
    	
PARSIPPANY
    	
 
    	
NJ
    	
 
    	
07054
    	
 
    	
MORRIS
    	
 
    	
YSI   XXXI LLC
    

 

 

	
401
    	
 
    	
28266   ECORSE ROAD
    	
 
    	
ROMULUS
    	
 
    	
MI
    	
 
    	
48174
    	
 
    	
WAYNE
    	
 
    	
YASKY   LLC
    
	
408
    	
 
    	
5008   WEST W.T. HARRIS BLVD
    	
 
    	
CHARLOTTE
    	
 
    	
NC
    	
 
    	
28269
    	
 
    	
MECKLENBURG
    	
 
    	
U-Store-It,   L.P.
    
	
409
    	
 
    	
115   AMSDELL ROAD
    	
 
    	
MERRITT   ISLAND
    	
 
    	
FL
    	
 
    	
32952
    	
 
    	
BREVARD
    	
 
    	
YASKY   LLC
    
	
410
    	
 
    	
13290   ST. RD. 84
    	
 
    	
DAVIE
    	
 
    	
FL
    	
 
    	
33325
    	
 
    	
BROWARD
    	
 
    	
YSI   II LLC
    
	
443
    	
 
    	
28429   LORAIN ROAD
    	
 
    	
N.   OLMSTED
    	
 
    	
OH
    	
 
    	
44070
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
444
    	
 
    	
7986   SOUTHERN BOULEVARD
    	
 
    	
BOARDMAN
    	
 
    	
OH
    	
 
    	
44512
    	
 
    	
MOHONING
    	
 
    	
U-Store-It,   L.P.
    
	
446
    	
 
    	
4820   FRANK ROAD NW
    	
 
    	
N.   CANTON
    	
 
    	
OH
    	
 
    	
44720
    	
 
    	
STARK
    	
 
    	
U-Store-It,   L.P.
    
	
447
    	
 
    	
5920   HIGH LINE AVE. NW
    	
 
    	
N.   CANTON
    	
 
    	
OH
    	
 
    	
44720
    	
 
    	
STARK
    	
 
    	
U-Store-It,   L.P.
    
	
448
    	
 
    	
2200   HERITAGE DRIVE
    	
 
    	
LAKELAND
    	
 
    	
FL
    	
 
    	
33801
    	
 
    	
POLK
    	
 
    	
YASKY   LLC
    
	
450
    	
 
    	
10100   SW 216TH STREET
    	
 
    	
MIAMI
    	
 
    	
FL
    	
 
    	
33190
    	
 
    	
DADE
    	
 
    	
YSI   II LLC
    
	
451
    	
 
    	
11400   EAST TAMIAMI TRAIL
    	
 
    	
NAPLES
    	
 
    	
FL
    	
 
    	
34113
    	
 
    	
COLLIER
    	
 
    	
YASKY   LLC
    
	
453
    	
 
    	
820   WEST CENTRE STREET
    	
 
    	
PORTAGE
    	
 
    	
MI
    	
 
    	
49024
    	
 
    	
KALAMAZOO
    	
 
    	
U-Store-It,   L.P.
    
	
454
    	
 
    	
3040   SHAFFER STREET SE
    	
 
    	
GRAND   RAPIDS
    	
 
    	
MI
    	
 
    	
49512
    	
 
    	
KENT
    	
 
    	
YASKY   LLC
    
	
455
    	
 
    	
2621   BURLINGAME AVE
    	
 
    	
WYOMING
    	
 
    	
MI
    	
 
    	
49509
    	
 
    	
KENT
    	
 
    	
YASKY   LLC
    
	
458
    	
 
    	
123   SOUTH MERIDIAN ROAD
    	
 
    	
YOUNGSTOWN
    	
 
    	
OH
    	
 
    	
44509
    	
 
    	
MOHONING
    	
 
    	
YASKY   LLC
    
	
459
    	
 
    	
3485   DOMESTIC AVENUE
    	
 
    	
NAPLES
    	
 
    	
FL
    	
 
    	
34104
    	
 
    	
COLLIER
    	
 
    	
YSI   XXXXIV LLC
    
	
460
    	
 
    	
22075   HIGHWAY 18 I
    	
 
    	
APPLE   VALLEY
    	
 
    	
CA
    	
 
    	
92307
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YSI   II LLC
    
	
461
    	
 
    	
18690   HIGHWAY 18 II
    	
 
    	
APPLE   VALLEY
    	
 
    	
CA
    	
 
    	
92307
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YSI   VI LLC
    
	
471
    	
 
    	
950   NORTH TIPPECANOE
    	
 
    	
SAN   BERNARDINO
    	
 
    	
CA
    	
 
    	
92410
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YASKY   LLC
    
	
473
    	
 
    	
802   WEST 40TH STREET I
    	
 
    	
SAN   BERNARDINO
    	
 
    	
CA
    	
 
    	
92407
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YASKY   LLC
    
	
474
    	
 
    	
700   WEST 40TH STREET II
    	
 
    	
SAN   BERNARDINO
    	
 
    	
CA
    	
 
    	
92407
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YASKY   LLC
    
	
479
    	
 
    	
5650   NAPLES BOULEVARD
    	
 
    	
NAPLES
    	
 
    	
FL
    	
 
    	
34109
    	
 
    	
COLLIER
    	
 
    	
YSI   VI LLC
    
	
481
    	
 
    	
11500   SOUTH HARRELL’S FERRY ROAD
    	
 
    	
BATON   ROUGE
    	
 
    	
LA
    	
 
    	
70816
    	
 
    	
E.   BATON ROUGE PARISH
    	
 
    	
U-Store-It,   L.P.
    
	
482
    	
 
    	
9530   DAWNADELE AVENUE
    	
 
    	
BATON   ROUGE
    	
 
    	
LA
    	
 
    	
70809
    	
 
    	
E.   BATON ROUGE PARISH
    	
 
    	
YASKY   LLC
    
	
484
    	
 
    	
550   HARPER STREET
    	
 
    	
STUART
    	
 
    	
FL
    	
 
    	
34994
    	
 
    	
MARTIN
    	
 
    	
YSI   VI LLC
    
	
485
    	
 
    	
8848   KINGSTON PIKE
    	
 
    	
KNOXVILLE
    	
 
    	
TN
    	
 
    	
37923
    	
 
    	
KNOX
    	
 
    	
YSI   XXXVIII LLC
    
	
486
    	
 
    	
4318   MIDDLEBROOK PK.
    	
 
    	
KNOXVILLE
    	
 
    	
TN
    	
 
    	
37917
    	
 
    	
KNOX
    	
 
    	
YSI   XXXVIII LLC
    
	
493
    	
 
    	
514   AMMUNITION ROAD
    	
 
    	
FALLBROOK
    	
 
    	
CA
    	
 
    	
92028
    	
 
    	
SAN   DIEGO
    	
 
    	
U-Store-It,   L.P.
    
	
495
    	
 
    	
365   TEGARDEN ROAD/WASHINGTON
    	
 
    	
GULFPORT
    	
 
    	
MS
    	
 
    	
39507
    	
 
    	
HARRISON
    	
 
    	
YSI   VI LLC
    
	
496
    	
 
    	
708   MONTLIMAR PARK
    	
 
    	
MOBILE
    	
 
    	
AL
    	
 
    	
36693
    	
 
    	
MOBILE
    	
 
    	
YASKY   LLC
    
	
497
    	
 
    	
10755   PEMBROKE PINES
    	
 
    	
PEMBROKE   PINES
    	
 
    	
FL
    	
 
    	
33025
    	
 
    	
BROWARD
    	
 
    	
YSI   II LLC
    
	
498
    	
 
    	
307   EAST HANOVER AVENUE
    	
 
    	
MORRIS   TWP
    	
 
    	
NJ
    	
 
    	
07960
    	
 
    	
MORRIS
    	
 
    	
YSI   II LLC
    
	
504
    	
 
    	
3333   CLEVELAND AVENUE
    	
 
    	
FT.   MYERS
    	
 
    	
FL
    	
 
    	
33901
    	
 
    	
LEE
    	
 
    	
YASKY   LLC
    
	
505
    	
 
    	
411   ANDERSON AVENUE
    	
 
    	
FAIRVIEW
    	
 
    	
NJ
    	
 
    	
07022
    	
 
    	
BERGEN
    	
 
    	
YSI   XXXI LLC
    
	
506
    	
 
    	
8250   NORTH TAMIAMI TRAIL
    	
 
    	
SARASOTA
    	
 
    	
FL
    	
 
    	
34243
    	
 
    	
SARASOTA
    	
 
    	
YASKY   LLC
    
	
511
    	
 
    	
349   WEST HILLSBORO BOULEVARD
    	
 
    	
DEERFIELD   BEACH
    	
 
    	
FL
    	
 
    	
33441
    	
 
    	
PALM   BEACH
    	
 
    	
YASKY   LLC
    
	
512
    	
 
    	
4720   WARRENSVILLE CENTER ROAD I
    	
 
    	
N.   RANDALL
    	
 
    	
OH
    	
 
    	
44128
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
513
    	
 
    	
240   BAYSHORE ROAD
    	
 
    	
N.   BABYLON
    	
 
    	
NY
    	
 
    	
11703
    	
 
    	
SUFFOLK
    	
 
    	
YSI   I LLC
    
	
514
    	
 
    	
193   LITCHFIELD STREET
    	
 
    	
LEOMINSTER
    	
 
    	
MA
    	
 
    	
01453
    	
 
    	
WORCESTER
    	
 
    	
YSI   II LLC
    

 

 

	
515
    	
 
    	
3901   RIVERLAND ROAD
    	
 
    	
FT.   LAUDERDALE
    	
 
    	
FL
    	
 
    	
33312
    	
 
    	
BROWARD
    	
 
    	
YSI   II LLC
    
	
516
    	
 
    	
301   N.E. PINE ISLAND ROAD
    	
 
    	
CAPE   CORAL
    	
 
    	
FL
    	
 
    	
33909
    	
 
    	
LEE
    	
 
    	
U-Store-It,   L.P.
    
	
518
    	
 
    	
255   CENTER STREET
    	
 
    	
MANCHESTER
    	
 
    	
CT
    	
 
    	
06040
    	
 
    	
HARTFORD
    	
 
    	
YSI   II LLC
    
	
519
    	
 
    	
260   GEORGE WASHINGTON RD.
    	
 
    	
ENFIELD
    	
 
    	
CT
    	
 
    	
06082
    	
 
    	
HARTFORD
    	
 
    	
YSI   II LLC
    
	
520
    	
 
    	
425   DELSEA DRIVE
    	
 
    	
SEWELL
    	
 
    	
NJ
    	
 
    	
08080
    	
 
    	
GLOUCESTER
    	
 
    	
U-Store-It,   L.P.
    
	
521
    	
 
    	
7358   BOYNTON BEACH BLVD.
    	
 
    	
BOYNTON   BEACH
    	
 
    	
FL
    	
 
    	
33437
    	
 
    	
PALM   BEACH
    	
 
    	
YSI   VI LLC
    
	
522
    	
 
    	
19200   US HWY 441
    	
 
    	
BOCA   RATON
    	
 
    	
FL
    	
 
    	
33498
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    
	
523
    	
 
    	
4200   FOREST HILL BLVD.
    	
 
    	
W.   PALM BEACH
    	
 
    	
FL
    	
 
    	
33406
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    
	
525
    	
 
    	
6100   W. ATLANTIC AVE.
    	
 
    	
DELRAY   BEACH
    	
 
    	
FL
    	
 
    	
33484
    	
 
    	
PALM   BEACH
    	
 
    	
YASKY   LLC
    
	
526
    	
 
    	
382   W. HARDEN ST
    	
 
    	
BURLINGTON
    	
 
    	
NC
    	
 
    	
27215
    	
 
    	
ALAMANCE
    	
 
    	
YASKY   LLC
    
	
527
    	
 
    	
920   W. CHATHAM ST
    	
 
    	
CARY
    	
 
    	
NC
    	
 
    	
27511
    	
 
    	
WAKE
    	
 
    	
YASKY   LLC
    
	
528
    	
 
    	
5921   WILKINSON
    	
 
    	
BELMONT
    	
 
    	
NC
    	
 
    	
28012
    	
 
    	
GASTON
    	
 
    	
U-Store-It,   L.P.
    
	
532
    	
 
    	
43357   DIVISION STREET
    	
 
    	
LANCASTER
    	
 
    	
CA
    	
 
    	
93535
    	
 
    	
LOS   ANGELES
    	
 
    	
YSI   VI LLC
    
	
533
    	
 
    	
1226   S. MEBANE ST
    	
 
    	
BURLINGTON
    	
 
    	
NC
    	
 
    	
27215
    	
 
    	
ALAMANCE
    	
 
    	
U-Store-It,   L.P.
    
	
534
    	
 
    	
950   CROSSTOWN DRIVE
    	
 
    	
PEACHTREE   CITY
    	
 
    	
GA
    	
 
    	
30269
    	
 
    	
FAYETTE
    	
 
    	
U-Store-It,   L.P.
    
	
535
    	
 
    	
4771   S. ATLANTA ROAD
    	
 
    	
SMYRNA
    	
 
    	
GA
    	
 
    	
30080
    	
 
    	
COBB
    	
 
    	
U-Store-It,   L.P.
    
	
536
    	
 
    	
411   S. MAIN STREET
    	
 
    	
ALPHARETTA
    	
 
    	
GA
    	
 
    	
30004
    	
 
    	
FULTON
    	
 
    	
U-Store-It,   L.P.
    
	
537
    	
 
    	
775   BROWNSWITCH ROAD
    	
 
    	
SLIDELL
    	
 
    	
LA
    	
 
    	
70458
    	
 
    	
E.   TAMMANY PARISH
    	
 
    	
YSI   II LLC
    
	
538
    	
 
    	
3345   MEDLOCK BRIDGE ROAD
    	
 
    	
NORCROSS
    	
 
    	
GA
    	
 
    	
30092
    	
 
    	
GWINNETT
    	
 
    	
YSI   II LLC
    
	
539
    	
 
    	
2801   HARRISON STREET
    	
 
    	
BELLWOOD
    	
 
    	
IL
    	
 
    	
60104
    	
 
    	
COOK
    	
 
    	
YSI   VI LLC
    
	
540
    	
 
    	
8432   PULASKI HIGHWAY
    	
 
    	
BALTIMORE
    	
 
    	
MD
    	
 
    	
21237
    	
 
    	
BALTIMORE
    	
 
    	
YSI   VI LLC
    
	
541
    	
 
    	
8704   CHERRY LANE
    	
 
    	
LAUREL
    	
 
    	
MD
    	
 
    	
20707
    	
 
    	
PRINCE   GEORGE’S
    	
 
    	
YSI   I LLC
    
	
542
    	
 
    	
6256   BRANCH AVENUE
    	
 
    	
TEMPLE   HILLS
    	
 
    	
MD
    	
 
    	
20748
    	
 
    	
PRINCE   GEORGE’S
    	
 
    	
YSI   II LLC
    
	
545
    	
 
    	
3895   NEW RODGERS ROAD
    	
 
    	
LEVITTOWN
    	
 
    	
PA
    	
 
    	
19056
    	
 
    	
BUCK’S
    	
 
    	
YSI   I LLC
    
	
551
    	
 
    	
2220   WATSON WAY
    	
 
    	
VISTA
    	
 
    	
CA
    	
 
    	
92083
    	
 
    	
SAN   DIEGO
    	
 
    	
YSI   II LLC
    
	
552
    	
 
    	
1820   FRONTAGE ROAD
    	
 
    	
CHERRY   HILL
    	
 
    	
NJ
    	
 
    	
8034
    	
 
    	
CAMDEN
    	
 
    	
U-Store-It,   L.P.
    
	
553
    	
 
    	
6600   DELILAH ROAD
    	
 
    	
EGG   HARBOR TOWNSHIP
    	
 
    	
NJ
    	
 
    	
8234
    	
 
    	
ATLANTIC
    	
 
    	
U-Store-It,   L.P.
    
	
554
    	
 
    	
2623   FIRE RD
    	
 
    	
EGG   HARBOR TOWNSHIP
    	
 
    	
NJ
    	
 
    	
8234
    	
 
    	
ATLANTIC
    	
 
    	
U-Store-It,   L.P.
    
	
555
    	
 
    	
130   LINCOLN ST.
    	
 
    	
BRIGHTON
    	
 
    	
MA
    	
 
    	
2135
    	
 
    	
SUFFOLK
    	
 
    	
U-Store-It,   L.P.
    
	
556
    	
 
    	
968   MASSACHUSETTS AVE.
    	
 
    	
BOSTON
    	
 
    	
MA
    	
 
    	
02118
    	
 
    	
SUFFOLK
    	
 
    	
U-Store-It,   L.P.
    
	
557
    	
 
    	
138-54   94TH AVENUE
    	
 
    	
JAMAICA
    	
 
    	
NY
    	
 
    	
11435
    	
 
    	
NEW   YORK
    	
 
    	
YSI   II LLC
    
	
558
    	
 
    	
395   BROOK AVENUE
    	
 
    	
BRONX
    	
 
    	
NY
    	
 
    	
10454
    	
 
    	
 
    	
 
    	
U-Store-It,   L.P.
    
	
559
    	
 
    	
2887   ATLANTIC BLVD
    	
 
    	
BROOKLYN
    	
 
    	
NY
    	
 
    	
11207
    	
 
    	
KINGS
    	
 
    	
U-Store-It,   L.P.
    
	
560
    	
 
    	
122-20   MERRICK BLVD
    	
 
    	
QUEENS
    	
 
    	
NY
    	
 
    	
11434
    	
 
    	
 
    	
 
    	
U-Store-It,   L.P.
    
	
561
    	
 
    	
1125   WYCKOFF AVENUE
    	
 
    	
RIDGEWOOD
    	
 
    	
NY
    	
 
    	
11385
    	
 
    	
 
    	
 
    	
U-Store-It,   L.P.
    
	
562
    	
 
    	
3040   AUSTIN PEAY HGWY
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38128
    	
 
    	
SHELBY
    	
 
    	
YSI   XXXXI LLC
    
	
563
    	
 
    	
80   SOUTH KENSICO
    	
 
    	
WHITE   PLAINS
    	
 
    	
NY
    	
 
    	
10601
    	
 
    	
WESTCHESTER
    	
 
    	
U-Store-It,   L.P.
    
	
570
    	
 
    	
22465   INDIAN BRIDGE ROAD
    	
 
    	
CALIFORNIA
    	
 
    	
MD
    	
 
    	
20619
    	
 
    	
SAINT   MARY’S
    	
 
    	
U-Store-It,   L.P.
    
	
571
    	
 
    	
8001   SNOUFFER SCHOOL ROAD
    	
 
    	
GAITHERSBURG
    	
 
    	
MD
    	
 
    	
20879
    	
 
    	
MONTGOMERY
    	
 
    	
YSI   IV LLC
    
	
572
    	
 
    	
6915   MANATEE AVE.
    	
 
    	
BRADENTON
    	
 
    	
FL
    	
 
    	
34209
    	
 
    	
MANATEE
    	
 
    	
U-Store-It,   L.P.
    
	
573
    	
 
    	
7501   S. DIXIE HIGHWAY
    	
 
    	
W.   PALM BEACH
    	
 
    	
FL
    	
 
    	
33405
    	
 
    	
PALM   BEACH
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
574
    	
 
    	
2010   NE 7TH AVENUE
    	
 
    	
DANIA   BEACH
    	
 
    	
FL
    	
 
    	
33004
    	
 
    	
BROWARD
    	
 
    	
U-Store-It,   L.P.
    
	
588
    	
 
    	
2700   POPLAR AVENUE
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38112
    	
 
    	
SHELBY
    	
 
    	
YSI   VI LLC
    
	
592
    	
 
    	
242   SOUTH SALEM
    	
 
    	
RANDOLPH
    	
 
    	
NJ
    	
 
    	
07869
    	
 
    	
MORRIS
    	
 
    	
YSI   II LLC
    

 

 

	
595
    	
 
    	
6120   LITTLE OX ROAD
    	
 
    	
Fairfax   Station
    	
 
    	
VA
    	
 
    	
22039
    	
 
    	
FAIRFAX
    	
 
    	
YSI   Burke Lake, LLC
    
	
596
    	
 
    	
13800   MCLEAREN ROAD
    	
 
    	
Herndon
    	
 
    	
VA
    	
 
    	
20171
    	
 
    	
FAIRFAX
    	
 
    	
U-Store-It,   L.P.
    
	
597
    	
 
    	
8621   SUNNYGATE DRIVE
    	
 
    	
MANASSAS
    	
 
    	
VA
    	
 
    	
20109
    	
 
    	
PRINCE   WILLIAM
    	
 
    	
U-Store-It,   L.P.
    
	
598
    	
 
    	
1200   UPSHUR ST NW
    	
 
    	
WASHINGTON
    	
 
    	
DC
    	
 
    	
20011
    	
 
    	
DISTRICT   OF COLUMBIA
    	
 
    	
YSI   XXXIII LLC
    
	
599
    	
 
    	
501   CALLOWHILL STREET
    	
 
    	
PHILADELPHIA
    	
 
    	
PA
    	
 
    	
19123
    	
 
    	
PHILADELPHIA
    	
 
    	
YSI   II LLC
    
	
600
    	
 
    	
21   W. 209 LAKE ST.
    	
 
    	
ADDISON
    	
 
    	
IL
    	
 
    	
60101
    	
 
    	
DU   PAGE
    	
 
    	
U-Store-It,   L.P.
    
	
601
    	
 
    	
3606   GABRIELLE LANE
    	
 
    	
AURORA
    	
 
    	
IL
    	
 
    	
60504
    	
 
    	
DU   PAGE
    	
 
    	
U-Store-It,   L.P.
    
	
602
    	
 
    	
25W630   ARMY TRAIL RD.
    	
 
    	
HANOVER   PARK
    	
 
    	
IL
    	
 
    	
60133
    	
 
    	
DU   PAGE
    	
 
    	
YSI   VI LLC
    
	
603
    	
 
    	
900   E. DEVON AVE.
    	
 
    	
BARTLETT
    	
 
    	
IL
    	
 
    	
60103
    	
 
    	
COOK
    	
 
    	
U-Store-It,   L.P.
    
	
604
    	
 
    	
1950   S. MT. PROSPECT RD.
    	
 
    	
DES   PLAINES
    	
 
    	
IL
    	
 
    	
60018
    	
 
    	
COOK
    	
 
    	
YSI   XXXXVI LLC
    
	
605
    	
 
    	
1750   BUSSE RD.
    	
 
    	
ELK   GROVE VILLAGE
    	
 
    	
IL
    	
 
    	
60007
    	
 
    	
COOK
    	
 
    	
U-Store-It,   L.P.
    
	
606
    	
 
    	
1718   WAUKEGAN RD.
    	
 
    	
GLENVIEW
    	
 
    	
IL
    	
 
    	
60025
    	
 
    	
COOK
    	
 
    	
U-Store-It,   L.P.
    
	
607
    	
 
    	
3501   WASHINGTON ST.
    	
 
    	
GURNEE
    	
 
    	
IL
    	
 
    	
60031
    	
 
    	
 
    	
 
    	
U-Store-It,   L.P.
    
	
608
    	
 
    	
16731   S. HALSTED ST.
    	
 
    	
HARVEY
    	
 
    	
IL
    	
 
    	
60426
    	
 
    	
COOK
    	
 
    	
U-Store-It,   L.P.
    
	
609
    	
 
    	
2114   OAK LEAF ST.
    	
 
    	
JOLIET
    	
 
    	
IL
    	
 
    	
60436
    	
 
    	
WILL
    	
 
    	
U-Store-It,   L.P.
    
	
610
    	
 
    	
20825   N. RAND RD
    	
 
    	
KILDEER
    	
 
    	
IL
    	
 
    	
60047
    	
 
    	
LAKE
    	
 
    	
U-Store-It,   L.P.
    
	
611
    	
 
    	
1245   S. HIGHLAND AVE.
    	
 
    	
LOMBARD
    	
 
    	
IL
    	
 
    	
60148
    	
 
    	
DU   PAGE
    	
 
    	
U-Store-It,   L.P.
    
	
612
    	
 
    	
1551   W. ALGONQUIN RD.
    	
 
    	
MT.   PROSPECT
    	
 
    	
IL
    	
 
    	
60056
    	
 
    	
COOK
    	
 
    	
U-Store-It,   L.P.
    
	
613
    	
 
    	
1080   S. BUTTERFIELD RD.
    	
 
    	
MUNDELEIN
    	
 
    	
IL
    	
 
    	
60060
    	
 
    	
LAKE
    	
 
    	
U-Store-It,   L.P.
    
	
614
    	
 
    	
3301   W. BUCKLEY RD.
    	
 
    	
N.   CHICAGO
    	
 
    	
IL
    	
 
    	
60064
    	
 
    	
LAKE
    	
 
    	
U-Store-It,   L.P.
    
	
615
    	
 
    	
14203   SOUTH ROUTE 59
    	
 
    	
PLAINFIELD
    	
 
    	
IL
    	
 
    	
60544
    	
 
    	
WILL
    	
 
    	
U-Store-It,   L.P.
    
	
616
    	
 
    	
1730   W. IRVING PARK RD.
    	
 
    	
SCHAUMBURG
    	
 
    	
IL
    	
 
    	
60193
    	
 
    	
COOK
    	
 
    	
U-Store-It,   L.P.
    
	
617
    	
 
    	
1089   EAST AVE.
    	
 
    	
STREAMWOOD
    	
 
    	
IL
    	
 
    	
60107
    	
 
    	
DU   PAGE
    	
 
    	
YASKY   LLC
    
	
618
    	
 
    	
665   S. GREEN BAY RD.
    	
 
    	
WAUKEGAN
    	
 
    	
IL
    	
 
    	
60085
    	
 
    	
LAKE
    	
 
    	
U-Store-It,   L.P.
    
	
619
    	
 
    	
27W125   NORTH AVE.
    	
 
    	
WEST   CHICAGO
    	
 
    	
IL
    	
 
    	
60185
    	
 
    	
DU   PAGE
    	
 
    	
YSI   VI LLC
    
	
620
    	
 
    	
143   W. 61ST ST.
    	
 
    	
WESTMONT
    	
 
    	
IL
    	
 
    	
60559
    	
 
    	
DU   PAGE
    	
 
    	
U-Store-It,   L.P.
    
	
621
    	
 
    	
1004   S. MILWAUKEE RD
    	
 
    	
WHEELING
    	
 
    	
IL
    	
 
    	
60090
    	
 
    	
COOK
    	
 
    	
YASKY   LLC
    
	
622
    	
 
    	
1042   S. MILWAUKEE RD
    	
 
    	
WHEELING
    	
 
    	
IL
    	
 
    	
60090
    	
 
    	
COOK
    	
 
    	
YSI   III LLC
    
	
623
    	
 
    	
8000   SOUTH ROUTE 53
    	
 
    	
WOODRIDGE
    	
 
    	
IL
    	
 
    	
60517
    	
 
    	
DU   PAGE
    	
 
    	
YSI   L LLC
    
	
624
    	
 
    	
2922   SOUTH 5TH COURT
    	
 
    	
MILWAUKEE
    	
 
    	
WI
    	
 
    	
53207
    	
 
    	
MILWAUKEE
    	
 
    	
U-Store-It,   L.P.
    
	
625
    	
 
    	
3601   W. 96TH STREET
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46268
    	
 
    	
MARION
    	
 
    	
U-Store-It,   L.P.
    
	
626
    	
 
    	
920   W. COUNTY LINE RD.
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46217
    	
 
    	
MARION
    	
 
    	
U-Store-It,   L.P.
    
	
627
    	
 
    	
9685   FALL CREEK RD.
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46256
    	
 
    	
MARION
    	
 
    	
U-Store-It,   L.P.
    
	
628
    	
 
    	
3912   N. GLEN ARM RD.
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46254
    	
 
    	
MARION
    	
 
    	
U-Store-It,   L.P.
    
	
629
    	
 
    	
8270   N. MICHIGAN RD.
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46268
    	
 
    	
MARION
    	
 
    	
U-Store-It,   L.P.
    
	
630
    	
 
    	
3380   N. POST RD.
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46226
    	
 
    	
MARION
    	
 
    	
YASKY   LLC
    
	
631
    	
 
    	
2251   N. SHADELAND AVE.
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46219
    	
 
    	
MARION
    	
 
    	
U-Store-It,   L.P.
    
	
632
    	
 
    	
551   E. STOVER AVE.
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46227
    	
 
    	
MARION
    	
 
    	
U-Store-It,   L.P.
    
	
633
    	
 
    	
5425   N. TACOMA
    	
 
    	
INDIANAPOLIS
    	
 
    	
IN
    	
 
    	
46220
    	
 
    	
MARION
    	
 
    	
U-Store-It,   L.P.
    
	
634
    	
 
    	
435   CONGRESS PARK DR.
    	
 
    	
CENTERVILLE
    	
 
    	
OH
    	
 
    	
45459
    	
 
    	
MONTGOMERY
    	
 
    	
U-Store-It,   L.P.
    
	
635
    	
 
    	
8501   SPRINGBORO PIKE
    	
 
    	
MIAMISBURG
    	
 
    	
OH
    	
 
    	
45342
    	
 
    	
MONTGOMERY
    	
 
    	
U-Store-It,   L.P.
    
	
636
    	
 
    	
426   N. SMITHVILLE RD.
    	
 
    	
DAYTON
    	
 
    	
OH
    	
 
    	
45431
    	
 
    	
MONTGOMERY
    	
 
    	
YSI   VI LLC
    
	
637
    	
 
    	
60   WESTPARK DR.
    	
 
    	
CENTERVILLE
    	
 
    	
OH
    	
 
    	
45459
    	
 
    	
MONTGOMERY
    	
 
    	
YSI   VI LLC
    
	
638
    	
 
    	
6512   14TH STREET
    	
 
    	
BRADENTON
    	
 
    	
FL
    	
 
    	
34207
    	
 
    	
MANATEE
    	
 
    	
U-Store-It,   L.P.
    
	
639
    	
 
    	
14902   N. 12TH ST.
    	
 
    	
LUTZ
    	
 
    	
FL
    	
 
    	
33549
    	
 
    	
HILLSBOROUGH
    	
 
    	
U-Store-It,   L.P.
    
	
640
    	
 
    	
1402   E. BEARSS AVE.
    	
 
    	
LUTZ
    	
 
    	
FL
    	
 
    	
33549
    	
 
    	
HILLSBOROUGH
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
641
    	
 
    	
540   S. VOLUSIA AVE.
    	
 
    	
ORANGE   CITY
    	
 
    	
FL
    	
 
    	
32763
    	
 
    	
VOLUSIA
    	
 
    	
U-Store-It,   L.P.
    
	
643
    	
 
    	
3700   FOHL ST.
    	
 
    	
CANTON
    	
 
    	
OH
    	
 
    	
44706
    	
 
    	
STARK
    	
 
    	
U-Store-It,   L.P.
    

 

 

	
644
    	
 
    	
5681   E. HARBOR RD.
    	
 
    	
MARBLEHEAD
    	
 
    	
OH
    	
 
    	
43440
    	
 
    	
OTTAWA
    	
 
    	
U-Store-It,   L.P.
    
	
645
    	
 
    	
5440   S. MARGINAL RD.
    	
 
    	
CLEVELAND
    	
 
    	
OH
    	
 
    	
44114
    	
 
    	
CUYAHOGA
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
646
    	
 
    	
3785   SHILOH SPRINGS RD.
    	
 
    	
DAYTON
    	
 
    	
OH
    	
 
    	
45426
    	
 
    	
MONTGOMERY
    	
 
    	
U-Store-It,   L.P.
    
	
647
    	
 
    	
5136   E. LINCOLN ST.
    	
 
    	
CANTON
    	
 
    	
OH
    	
 
    	
44730
    	
 
    	
STARK
    	
 
    	
U-Store-It,   L.P.
    
	
649
    	
 
    	
10645   LEUER AVE.
    	
 
    	
CLEVELAND
    	
 
    	
OH
    	
 
    	
44108
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
650
    	
 
    	
7100   COLUMBUS RD.
    	
 
    	
LOUISVILLE
    	
 
    	
OH
    	
 
    	
44641
    	
 
    	
STARK
    	
 
    	
U-Store-It,   L.P.
    
	
651
    	
 
    	
6784   HOPKINS RD.
    	
 
    	
MENTOR
    	
 
    	
OH
    	
 
    	
44060
    	
 
    	
LAKE
    	
 
    	
U-Store-It,   L.P.
    
	
652
    	
 
    	
4376   N. RIDGE RD.
    	
 
    	
PERRY
    	
 
    	
OH
    	
 
    	
44081
    	
 
    	
LAKE
    	
 
    	
U-Store-It,   L.P.
    
	
655
    	
 
    	
24360   SPERRY DR.
    	
 
    	
WESTLAKE
    	
 
    	
OH
    	
 
    	
44145
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
656
    	
 
    	
38255   ST. CLAIR AVE.
    	
 
    	
WILLOUGHBY
    	
 
    	
OH
    	
 
    	
44094
    	
 
    	
LAKE
    	
 
    	
U-Store-It,   L.P.
    
	
658
    	
 
    	
1040   HORTONS LANE
    	
 
    	
SOUTHOLD
    	
 
    	
NY
    	
 
    	
11971
    	
 
    	
SUFFOLK
    	
 
    	
YSI   XXXII LLC
    
	
659
    	
 
    	
99   MILL RD.
    	
 
    	
RIVERHEAD
    	
 
    	
NY
    	
 
    	
11901
    	
 
    	
SUFFOLK
    	
 
    	
YSI   XXXII LLC
    
	
660
    	
 
    	
23   S. MAIN STREET
    	
 
    	
E.   WINDSOR
    	
 
    	
CT
    	
 
    	
06088
    	
 
    	
HARTFORD
    	
 
    	
YASKY   LLC
    
	
661
    	
 
    	
510   N. MAIN ST.
    	
 
    	
MANCHESTER
    	
 
    	
CT
    	
 
    	
06042
    	
 
    	
HARTFORD
    	
 
    	
YSI   VI LLC
    
	
662
    	
 
    	
873   MAIN ST.
    	
 
    	
MONROE
    	
 
    	
CT
    	
 
    	
06468
    	
 
    	
FAIRFIELD
    	
 
    	
YSI   VI LLC
    
	
663
    	
 
    	
175   COSTELLO ROAD
    	
 
    	
NEWINGTON
    	
 
    	
CT
    	
 
    	
06111
    	
 
    	
HARTFORD
    	
 
    	
YSI   VI LLC
    
	
664
    	
 
    	
26   MASELLI RD.
    	
 
    	
NEWINGTON
    	
 
    	
CT
    	
 
    	
06111
    	
 
    	
HARTFORD
    	
 
    	
YSI   VI LLC
    
	
665
    	
 
    	
99   HAMILTON AVE.
    	
 
    	
STAMFORD
    	
 
    	
CT
    	
 
    	
06902
    	
 
    	
FAIRFIELD
    	
 
    	
YSI   VI LLC
    
	
666
    	
 
    	
167-3   ELM ST.
    	
 
    	
OLD   SAYBROOK
    	
 
    	
CT
    	
 
    	
06475
    	
 
    	
MIDDLESEX
    	
 
    	
YSI   VI LLC
    
	
667
    	
 
    	
201   LAKE AVENUE
    	
 
    	
BRISTOL
    	
 
    	
CT
    	
 
    	
06010
    	
 
    	
HARTFORD
    	
 
    	
YSI   VI LLC
    
	
668
    	
 
    	
35   WINTHROP AVE.
    	
 
    	
NEW   ROCHELLE
    	
 
    	
NY
    	
 
    	
10801
    	
 
    	
WESTCHESTER
    	
 
    	
YASKY   LLC
    
	
669
    	
 
    	
45   SCHOOLHOUSE ROAD
    	
 
    	
OLD   SAYBROOK
    	
 
    	
CT
    	
 
    	
06475
    	
 
    	
MIDDLESEX
    	
 
    	
YSI   VI LLC
    
	
671
    	
 
    	
100   MERCANTILE COURT
    	
 
    	
OCOEE
    	
 
    	
FL
    	
 
    	
34761
    	
 
    	
ORANGE
    	
 
    	
YSI   XXXXII LLC
    
	
672
    	
 
    	
8680   STONEBROOK PKWY
    	
 
    	
FRISCO
    	
 
    	
TX
    	
 
    	
75034
    	
 
    	
COLLIN
    	
 
    	
YASKY   LLC
    
	
673
    	
 
    	
10121   WARREN PKWY
    	
 
    	
FRISCO
    	
 
    	
TX
    	
 
    	
75035
    	
 
    	
COLLIN
    	
 
    	
YSI   V LLC
    
	
674
    	
 
    	
30W330   BUTTERFIELD
    	
 
    	
WARRENVILLE
    	
 
    	
IL
    	
 
    	
60555
    	
 
    	
DU   PAGE
    	
 
    	
YASKY   LLC
    
	
675
    	
 
    	
12408   INDUSTRIAL DRIVE EAST
    	
 
    	
PLAINFIELD
    	
 
    	
IL
    	
 
    	
60544
    	
 
    	
WILL
    	
 
    	
U-Store-It,   L.P.
    
	
676
    	
 
    	
3686   OLD GERMANTOWN ROAD
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38125
    	
 
    	
SHELBY
    	
 
    	
YSI   XXXXI LLC
    
	
677
    	
 
    	
3577   NEW GETWELL ROAD
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38118
    	
 
    	
SHELBY
    	
 
    	
U-Store-It,   L.P.
    
	
678
    	
 
    	
9275   MACON ROAD
    	
 
    	
CORDOVA
    	
 
    	
TN
    	
 
    	
38016
    	
 
    	
SHELBY
    	
 
    	
YSI   XXXX LLC
    
	
679
    	
 
    	
6140   E. SHELBY DRIVE
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38141
    	
 
    	
SHELBY
    	
 
    	
U-Store-It,   L.P.
    
	
680
    	
 
    	
9500   FRISCO STREET
    	
 
    	
FRISCO
    	
 
    	
TX
    	
 
    	
75034
    	
 
    	
COLLIN
    	
 
    	
U-Store-It,   L.P.
    
	
685
    	
 
    	
838   N. LOOP 1604 EAST
    	
 
    	
SAN   ANTONIO
    	
 
    	
TX
    	
 
    	
78232
    	
 
    	
BEXAR
    	
 
    	
U-Store-It,   L.P.
    
	
688
    	
 
    	
8252   WESTHEIMER ROAD
    	
 
    	
HOUSTON
    	
 
    	
TX
    	
 
    	
77063
    	
 
    	
HARRIS
    	
 
    	
U-Store-It,   L.P.
    
	
687
    	
 
    	
13340   FM 1960 ROAD W
    	
 
    	
HOUSTON
    	
 
    	
TX
    	
 
    	
77065
    	
 
    	
HARRIS
    	
 
    	
YSI   XVII LP
    
	
692
    	
 
    	
19500   WEST DIXIE HWY
    	
 
    	
MIAMI
    	
 
    	
FL
    	
 
    	
33180
    	
 
    	
MIAMI-DADE
    	
 
    	
U-Store-It,   L.P.
    
	
693
    	
 
    	
1015   N. APOPKA VINELAND ROAD
    	
 
    	
ORLANDO
    	
 
    	
FL
    	
 
    	
32818
    	
 
    	
ORANGE
    	
 
    	
U-Store-It,   L.P.
    
	
694
    	
 
    	
3651   ALAFAYA TRAIL
    	
 
    	
OVIEDO
    	
 
    	
FL
    	
 
    	
32765
    	
 
    	
ORANGE
    	
 
    	
U-Store-It,   L.P.
    
	
695
    	
 
    	
4554   E. HOFFNER AVENUE
    	
 
    	
ORLANDO
    	
 
    	
FL
    	
 
    	
32812
    	
 
    	
ORANGE
    	
 
    	
U-Store-It,   L.P.
    
	
696
    	
 
    	
3508   S. ORLANDO DRIVE
    	
 
    	
SANFORD
    	
 
    	
FL
    	
 
    	
32773
    	
 
    	
SEMINOLE
    	
 
    	
U-Store-It,   L.P.
    
	
697
    	
 
    	
3313   STONE MOUNTAIN HWY
    	
 
    	
SNELLVILLE
    	
 
    	
GA
    	
 
    	
30078
    	
 
    	
GWINNETT
    	
 
    	
U-Store-It,   L.P.
    
	
698
    	
 
    	
3495   LAWRENCEVILLE SUWANEE RD
    	
 
    	
SUWANEE
    	
 
    	
GA
    	
 
    	
30024
    	
 
    	
GWINNETT
    	
 
    	
U-Store-It,   L.P.
    
	
700
    	
 
    	
55   COMMERCIAL STREET
    	
 
    	
MEDFORD
    	
 
    	
MA
    	
 
    	
02155
    	
 
    	
MIDDLESEX
    	
 
    	
YSI   XXXXVII LLC
    
	
701
    	
 
    	
1985   OSTREMS WAY
    	
 
    	
SAN   BERNARDINO
    	
 
    	
CA
    	
 
    	
92407
    	
 
    	
SAN   BERNARDINO
    	
 
    	
YSI   VI LLC
    
	
702
    	
 
    	
4309   EHRLICH ROAD
    	
 
    	
TAMPA
    	
 
    	
FL
    	
 
    	
33624
    	
 
    	
HILLSBOROUGH
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
703
    	
 
    	
3730   S. ORANGE AVE.
    	
 
    	
ORLANDO
    	
 
    	
FL
    	
 
    	
32806
    	
 
    	
ORANGE
    	
 
    	
YSI   VI LLC
    

 

 

	
705
    	
 
    	
12560   MILITARY TRAIL
    	
 
    	
BOYNTON   BEACH
    	
 
    	
FL
    	
 
    	
33436
    	
 
    	
PALM   BEACH
    	
 
    	
YASKY   LLC
    
	
706
    	
 
    	
15910   PEARL ROAD
    	
 
    	
STRONGSVILLE
    	
 
    	
OH
    	
 
    	
44136
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
708
    	
 
    	
8585   TOUCHTON ROAD
    	
 
    	
JACKSONVILLE
    	
 
    	
FL
    	
 
    	
32216
    	
 
    	
DUVAL
    	
 
    	
U-Store-It,   L.P.
    
	
709
    	
 
    	
11570   BEACH BLVD
    	
 
    	
JACKSONVILLE
    	
 
    	
FL
    	
 
    	
32246
    	
 
    	
DUVAL
    	
 
    	
U-Store-It,   L.P.
    
	
710
    	
 
    	
8121   POINT MEADOWS DR.
    	
 
    	
JACKSONVILLE
    	
 
    	
FL
    	
 
    	
32256
    	
 
    	
DUVAL
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
712
    	
 
    	
1531   MONTIEL ROAD
    	
 
    	
ESCONDIDO
    	
 
    	
CA
    	
 
    	
92026
    	
 
    	
SAN   DIEGO
    	
 
    	
YSI   XXXXVIII LLC
    
	
713
    	
 
    	
28401   RANCHO CALIFORNIA RD.
    	
 
    	
TEMECULA
    	
 
    	
CA
    	
 
    	
92590
    	
 
    	
RIVERSIDE
    	
 
    	
YSI   XXXXVIII LLC
    
	
714
    	
 
    	
105   OLD PEACHTREE ROAD
    	
 
    	
SUWANEE
    	
 
    	
GA
    	
 
    	
30024
    	
 
    	
GWINNETT
    	
 
    	
U-Store-It,   L.P.
    
	
720
    	
 
    	
1201   N. STATE ROAD 7
    	
 
    	
ROYAL   PALM
    	
 
    	
FL
    	
 
    	
33411
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    
	
721
    	
 
    	
6550   SW 160TH AVE.
    	
 
    	
SW   RANCHES
    	
 
    	
FL
    	
 
    	
33331
    	
 
    	
BROWARD
    	
 
    	
YSI   XXXIX LLC
    
	
722
    	
 
    	
12701   SW 124TH STREET
    	
 
    	
KENDALL
    	
 
    	
FL
    	
 
    	
33186
    	
 
    	
DADE
    	
 
    	
YSI   XXXIII LLC
    
	
723
    	
 
    	
3024   PLUMMER COVE ROAD
    	
 
    	
JACKSONVILLE
    	
 
    	
FL
    	
 
    	
32223
    	
 
    	
DUVAL
    	
 
    	
U-Store-It,   L.P.
    
	
724
    	
 
    	
645   PARK STREET
    	
 
    	
JACKSONVILLE
    	
 
    	
FL
    	
 
    	
32204
    	
 
    	
DUVAL
    	
 
    	
U-Store-It,   L.P.
    
	
725
    	
 
    	
409   S. MCCLINTOCK DRIVE
    	
 
    	
TEMPE
    	
 
    	
AZ
    	
 
    	
85281
    	
 
    	
MARICOPA
    	
 
    	
YASKY   LLC
    
	
726
    	
 
    	
1040   GRAND STREET
    	
 
    	
HOBOKEN
    	
 
    	
NJ
    	
 
    	
07030
    	
 
    	
HUDSON
    	
 
    	
YSI   XXXI LLC
    
	
727
    	
 
    	
343   W. GRAND STREET
    	
 
    	
ELIZABETH
    	
 
    	
NJ
    	
 
    	
07202
    	
 
    	
UNION
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
728
    	
 
    	
1234   ROUTE 46 (CLIFTON)
    	
 
    	
CLIFTON
    	
 
    	
NJ
    	
 
    	
07013
    	
 
    	
PASSAIC
    	
 
    	
YASKY   LLC
    
	
735
    	
 
    	
380   E. GARDEN OF THE GODS RD
    	
 
    	
COLORADO   SPRINGS
    	
 
    	
CO
    	
 
    	
80907
    	
 
    	
EL   PASO
    	
 
    	
U-Store-It,   L.P.
    
	
737
    	
 
    	
1201   N. HIGHWAY 377
    	
 
    	
ROANOKE
    	
 
    	
TX
    	
 
    	
76262
    	
 
    	
DENTON
    	
 
    	
YSI   XXXIV LLC
    
	
738
    	
 
    	
1720   LOY LAKE ROAD
    	
 
    	
SHERMAN
    	
 
    	
TX
    	
 
    	
75090
    	
 
    	
GRAYSON
    	
 
    	
YSI   XII LP
    
	
739
    	
 
    	
812   N. MCDONALD STREET
    	
 
    	
MCKINNEY
    	
 
    	
TX
    	
 
    	
75069
    	
 
    	
COLLIN
    	
 
    	
YSI   XIII LP
    
	
740
    	
 
    	
6017   INTERSTATE 30
    	
 
    	
GREENVILLE
    	
 
    	
TX
    	
 
    	
75402
    	
 
    	
HUNT
    	
 
    	
U-Store-It,   L.P.
    
	
741
    	
 
    	
8800   DAVIS BLVD.
    	
 
    	
KELLER
    	
 
    	
TX
    	
 
    	
76248
    	
 
    	
TARRANT
    	
 
    	
YSI   XI LP
    
	
742
    	
 
    	
1700   US HIGHWAY 75
    	
 
    	
SHERMAN
    	
 
    	
TX
    	
 
    	
75090
    	
 
    	
GRAYSON
    	
 
    	
YSI   XIV LP
    
	
743
    	
 
    	
8123   WESLEY STREET
    	
 
    	
GREENVILLE
    	
 
    	
TX
    	
 
    	
75402
    	
 
    	
HUNT
    	
 
    	
U-Store-It,   L.P.
    
	
744
    	
 
    	
1700   S. CENTRAL EXPRESSWAY
    	
 
    	
MCKINNEY
    	
 
    	
TX
    	
 
    	
75070
    	
 
    	
COLLIN
    	
 
    	
YSI   X LP
    
	
745
    	
 
    	
5637   BASSWOOD BLVD.
    	
 
    	
FORTH   WORTH
    	
 
    	
TX
    	
 
    	
76137
    	
 
    	
TARRANT
    	
 
    	
YSI   XXXIV LLC
    
	
746
    	
 
    	
4097   ROSEMEADE PKWY
    	
 
    	
DALLAS
    	
 
    	
TX
    	
 
    	
75287
    	
 
    	
COLLIN
    	
 
    	
YSI   XXXIV LLC
    
	
747
    	
 
    	
6612   DAVIS BLVD.
    	
 
    	
N.   RICHLAND HILLS
    	
 
    	
TX
    	
 
    	
76182
    	
 
    	
TARRANT
    	
 
    	
YSI   XXXIV LLC
    
	
748
    	
 
    	
12006   RR 620 N
    	
 
    	
AUSTIN
    	
 
    	
TX
    	
 
    	
78750
    	
 
    	
WILLIAMSON
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
749
    	
 
    	
2375   ARAPAHO ROAD
    	
 
    	
GARLAND
    	
 
    	
TX
    	
 
    	
75044
    	
 
    	
DALLAS
    	
 
    	
YSI   XXXIV LLC
    
	
750
    	
 
    	
9238   WEST I-10
    	
 
    	
SAN   ANTONIO
    	
 
    	
TX
    	
 
    	
78230
    	
 
    	
BEXAR
    	
 
    	
U-Store-It,   L.P.
    
	
751
    	
 
    	
610   E. STASSNEY LANE
    	
 
    	
AUSTIN
    	
 
    	
TX
    	
 
    	
78745
    	
 
    	
TRAVIS
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
752
    	
 
    	
1761   EASTCHASE PARKWAY
    	
 
    	
FORTH   WORTH
    	
 
    	
TX
    	
 
    	
76120
    	
 
    	
TARRANT
    	
 
    	
YSI   XXXIV LLC
    
	
753
    	
 
    	
10025   MANCHACA ROAD
    	
 
    	
AUSTIN
    	
 
    	
TX
    	
 
    	
78748
    	
 
    	
TRAVIS
    	
 
    	
YSI   XXXIII LLC
    
	
754
    	
 
    	
8749   WADE BLVD.
    	
 
    	
FRISCO
    	
 
    	
TX
    	
 
    	
75034
    	
 
    	
COLLIN
    	
 
    	
YSI   XXXIV LLC
    
	
755
    	
 
    	
1455   N. HIGHWAY 287
    	
 
    	
MANSFIELD
    	
 
    	
TX
    	
 
    	
76063
    	
 
    	
TARRANT
    	
 
    	
YSI   XXXIV LLC
    
	
756
    	
 
    	
11303   W. LOOP 1604 NORTH
    	
 
    	
SAN   ANTONIO
    	
 
    	
TX
    	
 
    	
78254
    	
 
    	
BEXAR
    	
 
    	
U-Store-It,   L.P.
    
	
757
    	
 
    	
19395   SW 106TH AVE.
    	
 
    	
MIAMI
    	
 
    	
FL
    	
 
    	
33157
    	
 
    	
DADE
    	
 
    	
U-Store-It,   L.P.
    
	
758
    	
 
    	
3300   PARK ROAD
    	
 
    	
BENICIA
    	
 
    	
CA
    	
 
    	
94510
    	
 
    	
SOLANO
    	
 
    	
U-Store-It,   L.P.
    
	
759
    	
 
    	
3101   VALLEY AVENUE
    	
 
    	
PLEASANTON
    	
 
    	
CA
    	
 
    	
94566
    	
 
    	
CONTRA   COSTA
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
760
    	
 
    	
541   HARBOR BLVD.
    	
 
    	
W.   SACRAMENTO
    	
 
    	
CA
    	
 
    	
95691
    	
 
    	
YOLO
    	
 
    	
YSI   XXXIII LLC
    
	
761
    	
 
    	
40410   CALIFORNIA OAKS ROAD
    	
 
    	
MURRIETA
    	
 
    	
CA
    	
 
    	
92562
    	
 
    	
RIVERSIDE
    	
 
    	
YSI   XXXXVIII LLC
    

 

 

	
762
    	
 
    	
1625   W. VISTA WAY
    	
 
    	
VISTA
    	
 
    	
CA
    	
 
    	
92083
    	
 
    	
SAN   DIEGO
    	
 
    	
U-Store-It,   L.P.
    
	
763
    	
 
    	
301   S. LEMON CREEK
    	
 
    	
WALNUT
    	
 
    	
CA
    	
 
    	
91789
    	
 
    	
LOS   ANGELES
    	
 
    	
U-Store-It,   L.P.
    
	
764
    	
 
    	
1058   MURFREESBORO ROAD
    	
 
    	
NASHVILLE
    	
 
    	
TN
    	
 
    	
37217
    	
 
    	
DAVIDSON
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
765
    	
 
    	
1202   ANTIOCH PIKE
    	
 
    	
NASHVILLE
    	
 
    	
TN
    	
 
    	
37211
    	
 
    	
DAVIDSON
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
766
    	
 
    	
2825   LEBANON PIKE ROAD
    	
 
    	
NASHVILLE
    	
 
    	
TN
    	
 
    	
37214
    	
 
    	
DAVIDSON
    	
 
    	
YSI   HART LIMITED PARTNERSHIP
    
	
767
    	
 
    	
4815   TROUSDALE DR.
    	
 
    	
NASHVILLE
    	
 
    	
TN
    	
 
    	
37220
    	
 
    	
DAVIDSON
    	
 
    	
YSI   XXXXV LLC
    
	
768
    	
 
    	
2757   MURFREESBORO ROAD
    	
 
    	
ANTIOCH
    	
 
    	
TN
    	
 
    	
37013
    	
 
    	
DAVIDSON
    	
 
    	
U-Store-It,   L.P.
    
	
769
    	
 
    	
6790   FEDERAL BLVD.
    	
 
    	
DENVER
    	
 
    	
CO
    	
 
    	
80221
    	
 
    	
ADAMS
    	
 
    	
U-Store-It,   L.P.
    
	
772
    	
 
    	
2310   S. CIRCLE DRIVE
    	
 
    	
COLORADO   SPRINGS
    	
 
    	
CO
    	
 
    	
80910
    	
 
    	
EL   PASO
    	
 
    	
YSI   XV LLC
    
	
773
    	
 
    	
3595   ANDERSON FARM ROAD
    	
 
    	
AUSTELL
    	
 
    	
GA
    	
 
    	
30106
    	
 
    	
COBB
    	
 
    	
YSI   XXXVII LLC
    
	
774
    	
 
    	
1236   TEXAS STREET
    	
 
    	
LEWISVILLE
    	
 
    	
TX
    	
 
    	
75057
    	
 
    	
DENTON
    	
 
    	
YSI   VIII LP
    
	
775
    	
 
    	
201   S. I-35 EAST
    	
 
    	
DENTON
    	
 
    	
TX
    	
 
    	
76205
    	
 
    	
DENTON
    	
 
    	
YSI   IX LP
    
	
776
    	
 
    	
1350   N. FIRST STREET
    	
 
    	
GARLAND
    	
 
    	
TX
    	
 
    	
75040
    	
 
    	
DALLAS
    	
 
    	
YSI   VII LP
    
	
777
    	
 
    	
43   OLD OLDEN AVENUE
    	
 
    	
HAMILTON
    	
 
    	
NJ
    	
 
    	
08610
    	
 
    	
MERCER
    	
 
    	
U-Store-It,   L.P.
    
	
778
    	
 
    	
6446   EAST MAIN STREET
    	
 
    	
REYNOLDSBURG
    	
 
    	
OH
    	
 
    	
43068
    	
 
    	
FRANKLIN
    	
 
    	
U-Store-It,   L.P.
    
	
779
    	
 
    	
5252   NIKE DRIVE
    	
 
    	
HILLIARD
    	
 
    	
OH
    	
 
    	
43026
    	
 
    	
FRANKLIN
    	
 
    	
U-Store-It,   L.P.
    
	
780
    	
 
    	
3300   SOUTHWEST BLVD.
    	
 
    	
GROVE   CITY
    	
 
    	
OH
    	
 
    	
43123
    	
 
    	
FRANKLIN
    	
 
    	
U-Store-It,   L.P.
    
	
781
    	
 
    	
5411   W. BROAD STREET
    	
 
    	
COLUMBUS
    	
 
    	
OH
    	
 
    	
43228
    	
 
    	
FRANKLIN
    	
 
    	
U-Store-It,   L.P.
    
	
901
    	
 
    	
1324   HIRD AVENUE
    	
 
    	
LAKEWOOD
    	
 
    	
OH
    	
 
    	
44107
    	
 
    	
CUYAHOGA
    	
 
    	
U-Store-It,   L.P.
    
	
913
    	
 
    	
6788   LANTANA ROAD
    	
 
    	
LAKE   WORTH
    	
 
    	
FL
    	
 
    	
33467
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    
	
7266
    	
 
    	
6000   WELCH DRIVE
    	
 
    	
EL   PASO
    	
 
    	
TX
    	
 
    	
79905
    	
 
    	
EL   PASO
    	
 
    	
YSI   XXV LP
    
	
7270
    	
 
    	
5180   COMMERCE DRIVE
    	
 
    	
MURRAY
    	
 
    	
UT
    	
 
    	
84107
    	
 
    	
SALT   LAKE
    	
 
    	
YSI   XX LP
    
	
7280
    	
 
    	
401 &500   RADIO ROAD BP
    	
 
    	
PALM   SPRINGS
    	
 
    	
CA
    	
 
    	
92262
    	
 
    	
RIVERSIDE
    	
 
    	
U-Store-It,   L.P.
    
	
7281
    	
 
    	
67650-67714   E. RAMON ROAD
    	
 
    	
CATHEDRAL   CITY
    	
 
    	
CA
    	
 
    	
92234
    	
 
    	
RIVERSIDE
    	
 
    	
U-Store-It,   L.P.
    
	
7292
    	
 
    	
2645   S. NELLS BLVD
    	
 
    	
LAS   VEGAS
    	
 
    	
NV
    	
 
    	
89121
    	
 
    	
CLARK
    	
 
    	
U-Store-It,   L.P.
    
	
7303
    	
 
    	
5500   NW 15TH STREET
    	
 
    	
MARGATE
    	
 
    	
FL
    	
 
    	
33063
    	
 
    	
PALM   BEACH
    	
 
    	
YASKY   LLC
    
	
7305
    	
 
    	
BUSINESS   PARKWAY BP
    	
 
    	
ROYAL   PALM
    	
 
    	
FL
    	
 
    	
33411
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    
	
7325
    	
 
    	
5501   NW 15TH STREET I BP
    	
 
    	
MARGATE
    	
 
    	
FL
    	
 
    	
33063
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    
	
7496
    	
 
    	
708   MONTLIMAR PARK BP
    	
 
    	
MOBILE
    	
 
    	
AL
    	
 
    	
36619
    	
 
    	
MOBILE
    	
 
    	
YASKY   LLC
    
	
7541
    	
 
    	
CHERRY   LANE BP
    	
 
    	
LAUREL
    	
 
    	
MD
    	
 
    	
20707
    	
 
    	
PRINCE   GEORGE’S
    	
 
    	
YSI   I LLC
    
	
7679
    	
 
    	
6140   E. SHELBY DRIVE BP
    	
 
    	
MEMPHIS
    	
 
    	
TN
    	
 
    	
38141
    	
 
    	
SHELBY
    	
 
    	
U-Store-It,   L.P.
    
	
7680
    	
 
    	
9500   FRISCO STREET
    	
 
    	
FRISCO
    	
 
    	
TX
    	
 
    	
75034
    	
 
    	
COLLIN
    	
 
    	
U-Store-It,   L.P.
    
	
7687
    	
 
    	
13340   FM 1960 ROAD W
    	
 
    	
HOUSTON
    	
 
    	
TX
    	
 
    	
77065
    	
 
    	
HARRIS
    	
 
    	
YSI   XVII LP
    
	
7913
    	
 
    	
LANTANA   ROAD BP
    	
 
    	
LAKE   WORTH
    	
 
    	
FL
    	
 
    	
33467
    	
 
    	
PALM   BEACH
    	
 
    	
U-Store-It,   L.P.
    

 

 

Part II: Permitted Liens

 

None.

 

 

Schedule 6.1.(g)

 

Existing Indebtedness

 

1.               Existing Indebtedness includes all of the Indebtedness of the Parent and its Subsidiaries disclosed on the Parent’s Form 10-K for the fiscal year ending December 31, 2010, including, without limitation, the Revolving Credit Agreement.

 

2.               Various other mortgage Indebtedness set forth in the chart below:

 

	
Borrower
    	
 
    	
Lender
    	
 
    	
Property
    	
 
    	
Amount
    	
 
    
	
YSI   XXXI, LLC
    	
 
    	
Bank   of Smithtown
    	
 
    	
Hudson   County, New Jersey
    	
 
    	
$
    	
2,300,000
    	
 
    
	
YSI   XXXI, LLC
    	
 
    	
Bank   of Smithtown
    	
 
    	
Morris   County, New Jersey
    	
 
    	
$
    	
4,050,000
    	
 
    
	
YSI   XXXI, LLC
    	
 
    	
Bank   of Smithtown
    	
 
    	
Bergen   County, New Jersey
    	
 
    	
$
    	
1,850,000
    	
 
    
	
YSI   XXXI, LLC
    	
 
    	
Bank   of Smithtown
    	
 
    	
Union   County, New Jersey
    	
 
    	
$
    	
5,800,000
    	
 
    
	
YSI   XXXII, LLC
    	
 
    	
Bank   of Smithtown
    	
 
    	
Suffolk   County, New York
    	
 
    	
$
    	
2,700,000
    	
 
    
	
YSI   XXXII, LLC
    	
 
    	
Bank   of Smithtown
    	
 
    	
Suffolk   County, New York
    	
 
    	
$
    	
3,500,000
    	
 
    
	
YSI   XXXV, LLC
    	
 
    	
WashingtonFirst   Bank
    	
 
    	
Spotsylvania   and Stafford Counties, Virginia
    	
 
    	
$
    	
4,500,000
    	
 
    
	
YSI   XXXIV, LLC
    	
 
    	
ViewPoint   Bank
    	
 
    	
Tarrant,   Denton, Collin and Dallas Counties, Texas
    	
 
    	
$
    	
15,000,000
    	
 
    
	
YSI   XXXVII, LLC
    	
 
    	
Resurgens   Bank
    	
 
    	
Cobb   County, Georgia
    	
 
    	
$
    	
2,255,000
    	
 
    
	
YSI   XXXIX, LLC
    	
 
    	
Pacific   National Bank
    	
 
    	
Broward   County, Florida
    	
 
    	
$
    	
4,000,000
    	
 
    
	
YSI   XXXXV, LLC
    	
 
    	
Capstar   Bank
    	
 
    	
Davidson   County, Tennessee
    	
 
    	
$
    	
5,540,000
    	
 
    
	
YSI   XXXIII, LLC
    	
 
    	
Minnesota   Life Insurance Company
    	
 
    	
Miami-Dade   County, Florida; Washington, D.C.; Travis County, Texas; Yolo County,   California.
    	
 
    	
$
    	
11,602,488.43
    	
 
    
	
YSI   XXXXVIII, LLC
    	
 
    	
Nara   Bank
    	
 
    	
San   Diego, San Bernardino and Riverside Counties, California
    	
 
    	
$
    	
25,700,000
    	
 
    
	
YSI   Burke Lake, LLC
    	
 
    	
Wells   Fargo Bank, N.A.
    	
 
    	
Fairfax   County, Virginia
    	
 
    	
$
    	
7,510,182.80
    	
 
    

 

 

Schedule 6.1.(h)

 

Material Contracts

 

1.               Material Contracts include those disclosed in the Parent’s Form 10-K for the fiscal year ending December 31, 2010.

 

 

Schedule 6.1.(i)

 

Litigation

 

None.

 

 

Schedule 9.6.

 

Existing Negative Pledges

 

None.

 

 

EXHIBIT A

 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

This Assignment and Acceptance Agreement (the “Assignment and Acceptance Agreement”) 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 Acceptance Agreement 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 guarantees 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 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 Acceptance Agreement, 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-1

 

	
1.
    	
 
    	
Assignor[s]:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Assignee[s]:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
[for   each Assignee, indicate [Affiliate][Approved Fund] of [identify   Lender]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Borrower(s):
    	
 
    	
U-STORE-IT,   L.P.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Administrative   Agent:
    	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as the Administrative Agent under the   Credit Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Credit   Agreement:
    	
 
    	
Term   Loan Agreement dated as of June 20, 2011 among U-STORE-IT, L.P.,   U-STORE-IT TRUST, the Lenders parties thereto, WELLS FARGO BANK, NATIONAL   ASSOCIATION, as Administrative Agent, and the other parties thereto
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Assigned   Interest[s]:
    	
 
    	
 
    

 

	
Assignor[s](5) 
    	
 
    	
Assignee[s](6)
    	
 
    	
Facility
   Assigned(7)
    	
 
    	
Aggregate Amount

of Commitment/
   Loans for all
   Lenders(8)
    	
 
    	
Amount of
   Commitment/
   Loans Assigned(9)
    	
 
    	
Percentage Assigned
   of Commitment/
   Loans(10)
    	
 
    	
CUSIP
   Number
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
$
    	
 
    	
 
    	
%
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
$
    	
 
    	
 
    	
%
    	
 
    	
 
    

 

	
[7.
    	
 
    	
Trade   Date:
    	
 
    	
         ](11)
    

 

(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 (“Five Year Term Commitment” or “Seven Year Term Commitment”)

 

(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)                                 In the case of an assignment of the entire remaining amount of the Loans at the time owing to the assigning Lender 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.  In any case not described in the immediately preceding sentence, the aggregate amount of the outstanding principal balance of the Loans of such Lender shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Default or Event of Default shall exist, the Borrower otherwise consents.

 

(10)                          Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

(11)                          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-2

 

Effective Date:                                   , 20       [TO BE INSERTED BY THE 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 Acceptance Agreement are hereby agreed to:

 

	
 
    	
ASSIGNOR[S](12)
    
	
 
    	
 
    
	
 
    	
[NAME   OF ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
[NAME   OF ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
ASSIGNEE[S](13)
    
	
 
    	
 
    
	
 
    	
[NAME   OF ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
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(12)                          Add additional signature blocks as needed.

 

(13)                          Add additional signature blocks as needed.

 

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[Consented   to and](14) Accepted:
    	
 
    
	
 
    	
 
    
	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as   Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
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[Consented   to:](15)
    	
 
    
	
 
    	
 
    
	
[NAME   OF RELEVANT PARTY]
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

(14)                          To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

 

(15)                          To be added only if the consent of the Borrower and/or other parties is required by the terms of the Credit Agreement.

 

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ANNEX 1

 

[                      ](16)

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

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 and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Acceptance Agreement and to consummate the transactions contemplated hereby; 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 Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of the Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of the 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 Acceptance Agreement 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 assignee under Section 12.5.(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 12.5.(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date specified for this Assignment and Acceptance Agreement, 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 Acceptance Agreement and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent 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 Acceptance Agreement and to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached to the Assignment and Acceptance Agreement 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 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.

 

(16)                          Describe Credit Agreement at option of Administrative Agent.

 

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2.  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 Acceptance Agreement.  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 Acceptance Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Acceptance Agreement 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 Acceptance Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Acceptance Agreement.  This Assignment and Acceptance Agreement shall be governed by, and construed in accordance with, the law of the State of North Carolina.

 

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EXHIBIT B

 

FORM OF GUARANTY

 

THIS GUARANTY dated as of June     , 2011, executed and delivered by each of the undersigned and the other Persons from time to time party hereto pursuant to the execution and delivery of an Accession Agreement in the form of Annex I hereto (all of the undersigned, together with such other Persons each a “Guarantor” and collectively, the “Guarantors”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the Lenders under that certain Term Loan Agreement dated as of June 20, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among U-STORE-IT, L.P. (the “Borrower”), U-Store-It Trust (the “Parent”), the financial institutions party thereto and their assignees under Section 12.5.(b) thereof (the “Lenders”), the Administrative Agent, and the other parties thereto.

 

WHEREAS, pursuant to the Credit Agreement, the Administrative Agent and the Lenders have agreed to make available to the Borrower certain financial accommodations on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS, the Borrower and each of the Guarantors, 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 Administrative Agent and the Lenders through their collective efforts;

 

WHEREAS, each Guarantor acknowledges that it will receive direct and indirect benefits from the Administrative Agent and the Lenders making such financial accommodations available to the Borrower under the Credit Agreement and, accordingly, each Guarantor is willing to guarantee the Borrower’s obligations to the Administrative Agent and the Lenders on the terms and conditions contained herein; and

 

WHEREAS, the execution and delivery of this Guaranty by each Guarantor is a condition to the Administrative Agent and the Lenders making such financial accommodations to the Borrower.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each Guarantor, each Guarantor agrees as follows:

 

Section 1.  Guaranty.  Each 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 Obligations”):  (a) all indebtedness, liabilities, obligations, covenants and duties owing by the Borrower to any Lender or the Administrative Agent under or in connection with the Credit Agreement and any other Loan Document, including without limitation, the repayment of all principal of the Loans, and the payment of all interest, Fees, charges, reasonable attorneys’ fees and other amounts payable to any Lender or the Administrative Agent thereunder or in connection therewith (including, to the extent permitted by Applicable Law, interest, Fees and other amounts that would accrue and become due after the filing of a case or other proceeding under the Bankruptcy Code (as defined below) or other similar Applicable Law but for the commencement of such case or proceeding, whether or not such amounts are allowed or allowable in whole or in part in such case or proceeding); (b) any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (c) all other Obligations; and (d) all expenses, including, without limitation, reasonable attorneys’ fees and disbursements, that are incurred by

 

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any of the Lenders or the Administrative Agent in the enforcement of any of the foregoing or any obligation of such Guarantor hereunder.

 

Section 2.  Guaranty of Payment and Not of Collection.  This Guaranty is a guaranty of payment, and not of collection, and a debt of each Guarantor for its own account.  Accordingly, none of the Administrative Agent or the Lenders shall be obligated or required before enforcing this Guaranty against any Guarantor:  (a) to pursue any right or remedy any of them may have against the Borrower, any other Guarantor or any other Person or commence any suit or other proceeding against the Borrower, any other Guarantor 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 Guarantor or any other Person; or (c) to make demand of the Borrower, any other Guarantor or any other Person.

 

Section 3.  Guaranty Absolute.  Each 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 Administrative Agent or the Lenders with respect thereto.  The liability of each 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 such 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, or any other document or instrument evidencing or relating to any Guarantied Obligations, or (iv) any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action or inaction under or in respect of, the Credit Agreement, any of the other Loan Documents, or any other documents, instruments or agreements relating to the Guarantied Obligations or any other instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;

 

(b)           any lack of validity or enforceability of the Credit Agreement, any of the other Loan Documents, or any other document, instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;

 

(c)           any furnishing to the Administrative Agent or the Lenders of any security for the Guarantied Obligations;

 

(d)           any settlement or compromise of any of the Guarantied Obligations or any liability of any other party with respect to the Guarantied Obligations, or any subordination of the payment 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 such 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 such Guarantor’s subrogation rights, if any, against the Borrower to recover payments made under this Guaranty;

 

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(g)           any application of sums paid by the Borrower, any other Guarantor or any other Person with respect to the liabilities of the Borrower to the Administrative Agent or the Lenders, regardless of what liabilities of the Borrower remain unpaid;

 

(h)           any defect, limitation or insufficiency in the borrowing powers of the Borrower or in the exercise thereof;

 

(i)            any defense, set-off, claim or counterclaim (other than indefeasible payment and performance in full) which may at any time be available to or be asserted by the Borrower, any other Loan Party or any other Person against the Administrative Agent or any Lender;

 

(j)            any change in the corporate existence, structure or ownership of the Borrower or any other Loan Party;

 

(k)           any statement, representation or warranty made or deemed made by or on behalf of the Borrower, any Guarantor or any other Loan Party under any Loan Document, or any amendment hereto or thereto, proves to have been incorrect or misleading in any respect; or

 

(l)            any other circumstance which might otherwise constitute a defense available to, or a discharge of, a Guarantor hereunder (other than indefeasible payment and performance in full).

 

Section 4.  Action with Respect to Guarantied Obligations.  The Administrative Agent and the Lenders may, at any time and from time to time, without the consent of, or notice to, any Guarantor, and without discharging any 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 the Credit Agreement or any other Loan Document; (c) release any other Loan Party or other Person liable in any manner for the payment or collection of the Guarantied Obligations; (d) exercise, or refrain from exercising, any rights against the Borrower, any other Guarantor or any other Person; and (e) apply any sum, by whomsoever paid or however realized, to the Guarantied Obligations in such order as the Lenders shall elect.

 

Section 5.  Representations and Warranties.  Each Guarantor hereby makes to the Administrative Agent and the Lenders all of the representations and warranties made by the Borrower with respect to or in any way relating to such Guarantor in the Credit Agreement and the other Loan Documents, as if the same were set forth herein in full.

 

Section 6.  Covenants.  Each Guarantor will comply with all covenants which the Borrower is to cause such Guarantor to comply with under the terms of the Credit Agreement or any of the other Loan Documents.

 

Section 7.  Waiver.  Each 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 such Guarantor or which otherwise might operate to discharge such Guarantor from its obligations hereunder.

 

Section 8.  Inability to Accelerate Loan.  If the Administrative Agent and/or the Lenders are prevented under Applicable Law or otherwise from demanding or accelerating payment of any of the Guarantied Obligations by reason of any automatic stay or otherwise, the Administrative Agent and/or the

 

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Lenders shall be entitled to receive from each 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 of the Lenders 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 Lender 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 Lender with any such claimant (including the Borrower or a trustee in bankruptcy for the Borrower), then and in such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding on it, notwithstanding any revocation hereof or the cancellation of the Credit Agreement, any of the other Loan Documents, or any other instrument evidencing any liability of the Borrower, and such Guarantor shall be and remain liable to the Administrative Agent or such Lender 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 Lender.

 

Section 10.  Subrogation.  Upon the making by any Guarantor of any payment hereunder for the account of the Borrower, such Guarantor shall be subrogated to the rights of the payee against the Borrower; provided, however, that such 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 such Guarantor may have against the Borrower arising by reason of any payment or performance by such Guarantor pursuant to this Guaranty, unless and until all of the Guarantied Obligations have been indefeasibly paid and performed in full.  If any amount shall be paid to such Guarantor on account of or in respect of such subrogation rights or other claims or causes of action, such Guarantor shall hold such amount in trust for the benefit of the Administrative Agent and the Lenders and shall forthwith pay such amount to the Administrative Agent to be credited and applied against the Guarantied Obligations, whether matured or unmatured, in accordance with the terms of the Credit Agreement or to be held by the Administrative Agent as collateral security for any Guarantied Obligations existing.

 

Section 11.  Payments Free and Clear.  All sums payable by each 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), and if any Guarantor is required by Applicable Law or by a Governmental Authority to make any such deduction or withholding, such 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 Loan Documents or Applicable Law and not by way of limitation of any such rights, each Guarantor hereby authorizes the Administrative Agent, each Lender and any of their respective Affiliates, at any time while an Event of Default exists, 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 Lender or an Affiliate of a Lender 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 the Administrative Agent, such Lender, or any Affiliate of the Administrative Agent or such Lender, to or for the credit or the account of such Guarantor against and on account of any of the Guarantied Obligations, although such obligations shall be contingent or unmatured.

 

Section 13.  Subordination.  Each Guarantor hereby expressly covenants and agrees for the benefit of the Administrative Agent and the Lenders that all obligations and liabilities of the Borrower to

 

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such Guarantor of whatever description, including without limitation, all intercompany receivables of such Guarantor from the Borrower (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 no Guarantor shall accept any direct or indirect payment (in cash, property or securities, by setoff or otherwise) from the Borrower on account of or in any manner in respect of any Junior Claim until all of the Guarantied Obligations have been indefeasibly paid in full.

 

Section 14.  Avoidance Provisions.  It is the intent of each Guarantor, the Administrative Agent and the Lenders that in any Proceeding, such Guarantor’s maximum obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Administrative Agent and the Lenders) to be avoidable or unenforceable against such 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 such Guarantor hereunder (or any other obligations of such Guarantor to the Administrative Agent and the Lenders) shall be determined in any such Proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the extent that the obligations of any Guarantor hereunder would otherwise be subject to avoidance under the Avoidance Provisions, the maximum Guarantied Obligations for which such 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 such Guarantor hereunder (or any other obligations of such Guarantor to the Administrative Agent and the Lenders), to be subject to avoidance under the Avoidance Provisions.  This Section is intended solely to preserve the rights of the Administrative Agent and the Lenders hereunder to the maximum extent that would not cause the obligations of any Guarantor hereunder to be subject to avoidance under the Avoidance Provisions, and no Guarantor or any other Person shall have any right or claim under this Section as against the Administrative Agent and the Lenders that would not otherwise be available to such Person under the Avoidance Provisions.

 

Section 15.  Information.  Each Guarantor assumes all responsibility for being and keeping itself informed of the financial condition of the Borrower and the other Guarantors, 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 such Guarantor assumes and incurs hereunder, and agrees that neither the Administrative Agent nor any of the Lenders shall have any duty whatsoever to advise any Guarantor of information regarding such circumstances or risks.

 

Section 16.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

SECTION 17.  WAIVER OF JURY TRIAL.

 

(a)           EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG ANY GUARANTOR, THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS 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, EACH OF THE LENDERS, THE ADMINISTRATIVE AGENT AND EACH GUARANTOR HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE

 

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IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG ANY GUARANTOR, THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

 

(b)           EACH OF THE GUARANTORS, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY AGREES THAT ANY FEDERAL DISTRICT COURT AND ANY STATE COURT LOCATED IN CHARLOTTE, NORTH CAROLINA SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG ANY GUARANTOR, THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  EACH GUARANTOR AND EACH OF THE LENDERS EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES.  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 PARTY OR THE ENFORCEMENT BY ANY 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 LOAN 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 Lender may maintain books and accounts setting forth the amounts of principal, interest and other sums paid and payable with respect to the Guarantied Obligations, and in the case of any dispute relating to any of the outstanding amount, payment or receipt of any of the Guarantied Obligations or otherwise, the entries in such books and accounts shall be deemed conclusive evidence of the amounts and other matters set forth herein, absent manifest error.  The failure of the Administrative Agent or any Lender to maintain such books and accounts shall not in any way relieve or discharge any 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 of the Lenders in the exercise of any right or remedy it may have against any Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the Administrative Agent or any of the Lenders 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.  This Guaranty shall remain in full force and effect until indefeasible payment in full of the Guarantied Obligations and the other Obligations and the termination or cancellation of the Credit Agreement in accordance with its terms.

 

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Section 21.  Successors and Assigns.  Each reference herein to the Administrative Agent or the Lenders 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 each Guarantor shall be deemed to include such Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding.  The Lenders may, in accordance with the applicable provisions of the Credit Agreement, 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, any Guarantor and without releasing, discharging or modifying any Guarantor’s obligations hereunder.  Subject to Section 12.8. of the Credit Agreement, each Guarantor hereby consents to the delivery by the Administrative Agent or any Lender to any Assignee or Participant (or any prospective Assignee or Participant) of any financial or other information regarding the Borrower or any Guarantor.  No Guarantor may assign or transfer its rights or obligations hereunder to any Person without the prior written consent of the Administrative Agent and the Lenders and any such assignment or other transfer to which the Administrative Agent and the Lenders have not so consented shall be null and void.

 

Section 22.  JOINT AND SEVERAL OBLIGATIONS.  THE OBLIGATIONS OF THE GUARANTORS HEREUNDER SHALL BE JOINT AND SEVERAL, AND ACCORDINGLY, EACH GUARANTOR CONFIRMS THAT IT IS LIABLE FOR THE FULL AMOUNT OF THE “GUARANTIED OBLIGATIONS” AND ALL OF THE OBLIGATIONS AND LIABILITIES OF EACH OF THE OTHER GUARANTORS HEREUNDER.

 

Section 23.  Amendments.  This Guaranty may not be amended except in a writing signed by the Requisite Lenders (or all of the Lenders if required under the terms of the Credit Agreement), the Administrative Agent and each Guarantor.

 

Section 24.  Payments.  All payments to be made by any Guarantor pursuant to this Guaranty shall be made in Dollars, in immediately available funds to the Administrative Agent at the Principal Office, not later than 2:00 p.m. on the date of demand therefor.

 

Section 25.  Notices.  All notices, requests and other communications hereunder shall be in writing (including facsimile transmission or similar writing) and shall be given (a) to each Guarantor at its address set forth below its signature hereto, (b) to the Administrative Agent or any Lender at its respective address for notices provided for in the Credit Agreement, 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; (ii) if telecopied, when transmitted; or (iii) if hand delivered, when delivered; provided, however, that any notice of a change of address for notices shall not be effective until received.

 

Section 26.  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 27.  Headings.  Section headings used in this Guaranty are for convenience only and shall not affect the construction of this Guaranty.

 

Section 28.  Limitation of Liability.  Neither the Administrative Agent nor any of the Lenders, nor any Affiliate, officer, director, employee, attorney, or agent of the Administrative Agent or any of the Lenders, shall have any liability with respect to, and each Guarantor hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by a Guarantor in connection with, arising out of, or in any way related to, this Guaranty or any of the other Loan Documents, or any of the transactions contemplated by this Guaranty,

 

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the Credit Agreement or any of the other Loan Documents.  Each Guarantor hereby waives, releases, and agrees not to sue the Administrative Agent or any of the Lenders or any of the Administrative Agent’s or of any Lenders’, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Guaranty, the Credit Agreement or any of the other Loan Documents, or any of the transactions contemplated by Credit Agreement or financed thereby.

 

Section 29.  Definitions.  (a) For the purposes of this Guaranty:

 

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights.

 

“Proceeding” means any of the following:  (i) a voluntary or involuntary case concerning any 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 any 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 any Guarantor; (iv) any 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) any Guarantor makes a general assignment for the benefit of creditors; (vii) any 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) any Guarantor shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; (ix) any 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 any Guarantor for the purpose of effecting any of the foregoing.

 

(b)           Terms not otherwise defined herein are used herein with the respective meanings given them in the Credit Agreement.

 

[Signature on Next Page]

 

B-8

 

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

 

	
 
    	
[GUARANTORS]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address   for Notices:
    
	
 
    	
 
    
	
 
    	
c/o   U-Store-It Trust
    
	
 
    	
460   Swedesford Road, Suite 3000
    
	
 
    	
Wayne,   Pennsylvania 19087
    
	
 
    	
Attn:   Chief Financial Officer
    
	
 
    	
Telecopy   Number: (610) 293-5720
    
	
 
    	
Telephone   Number: (610) 293-5700
    

 

B-9

 

ANNEX I

 

FORM OF ACCESSION AGREEMENT

 

THIS ACCESSION AGREEMENT dated as of                   , 20    , executed and delivered by                                  , a                           (the “New Guarantor”), in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the Lenders under that certain Term Loan Agreement dated as of June 20, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among U-STORE-IT, L.P. (the “Borrower”), U-Store-It Trust, the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), the Administrative Agent, and the other parties thereto.

 

WHEREAS, pursuant to the Credit Agreement, the Administrative Agent and the Lenders have agreed to make available to the Borrower certain financial accommodations on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS, the Borrower, the New Guarantor, and the existing Guarantors, 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 Administrative Agent and the Lenders through their collective efforts;

 

WHEREAS, the New Guarantor acknowledges that it will receive direct and indirect benefits from the Administrative Agent and the Lenders making such financial accommodations available to the Borrower under the Credit Agreement and, accordingly, the New Guarantor is willing to guarantee the Borrower’s obligations to the Administrative Agent and the Lenders on the terms and conditions contained herein; and

 

WHEREAS, the New Guarantor’s execution and delivery of this Agreement is a condition to the Administrative Agent and the Lenders 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 New Guarantor, the New Guarantor agrees as follows:

 

Section 1.  Accession to Guaranty.  The New Guarantor hereby agrees that it is a “Guarantor” under that certain Guaranty dated as of June    , 2011 (as amended, supplemented, restated or otherwise modified from time to time, the “Guaranty”), made by each Subsidiary of the Borrower a party thereto in favor of the Administrative Agent and the Lenders and assumes all obligations of a “Guarantor” thereunder and agrees to be bound thereby, all as if the New Guarantor had been an original signatory to the Guaranty.  Without limiting the generality of the foregoing, the New Guarantor hereby:

 

(a)           irrevocably and unconditionally guarantees the due and punctual payment and performance when due, whether at stated maturity, by acceleration or otherwise, of all Guarantied Obligations (as defined in the Guaranty);

 

(b)           makes to the Administrative Agent and the Lenders as of the date hereof each of the representations and warranties contained in Section 5 of the Guaranty and agrees to be bound by each of the covenants contained in Section 6 of the Guaranty; and

 

B-10

 

(c)           consents and agrees to each provision set forth in the Guaranty.

 

SECTION 2.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 3.  Definitions.  Capitalized terms used herein and not otherwise defined herein shall have their respective defined meanings given them in the Credit Agreement.

 

[Signatures on Next Page]

 

B-11

 

IN WITNESS WHEREOF, the New Guarantor has caused this Accession Agreement to be duly executed and delivered under seal by its duly authorized officers as of the date first written above.

 

	
 
    	
[NEW   GUARANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
Address   for Notices:
    
	
 
    	
 
    
	
 
    	
c/o   U-Store-It Trust
    
	
 
    	
460   Swedesford Road, Suite 3000
    
	
 
    	
Wayne,   Pennsylvania 19087
    
	
 
    	
Attn:   Chief Financial Officer
    
	
 
    	
Telecopy   Number: (610) 293-5720
    
	
 
    	
Telephone   Number: (610) 293-5700
    
	
 
    	
 
    
	
Accepted:
    	
 
    
	
 
    	
 
    
	
Wells   Fargo Bank, National Association, as Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    	
 
    

 

B-12

 

EXHIBIT C

 

FORM OF NOTICE OF BORROWING

 

                 , 20      

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent

c/o Wells Fargo Real Estate Banking Group

200 Public Square - Suite 3200

Cleveland, OH 44114

Attention:  Greg Ward

 

Ladies and Gentlemen:

 

Reference is made to that certain Term Loan Agreement dated as of June 20, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among U-STORE-IT, L.P. (the “Borrower”), U-Store-It Trust (the “Parent”), the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), WELLS 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.(c) of the Credit Agreement, the Borrower hereby requests that the Lenders make [Five Year][Seven Year] Term Loans to the Borrower in an aggregate principal amount equal to $                               .

 

2.                                       The Borrower requests that such Loans be made available to the Borrower on                         , 20     .

 

3.                                       The Borrower hereby requests that the requested Loans all be of the following Type:

 

[Check one box only]

 

o            Base Rate Loans

o            LIBOR Loans, each with an initial Interest Period for a duration of:

 

[Check one box only]

 

o            1 month

o            3 months

o            6 months

 

4.                                       The proceeds of this borrowing of such Loans will be used for purposes that are consistent with the terms of Section 7.8. of the Credit Agreement.

 

5.                                       The Borrower requests that the proceeds of this borrowing of such Loans be made available to the Borrower by                                                    .

 

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 Loans and after giving effect thereto, (a) no Default or Event of Default exists or shall exist, and (b) the representations and warranties

 

C-1

 

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, are and shall be true and correct in all material respects, 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 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 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 Loans are made.

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Borrowing as of the date first written above.

 

	
 
    	
U-STORE-IT,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
U-Store-It   Trust, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    

 

C-2

 

EXHIBIT D

 

FORM OF NOTICE OF CONTINUATION

 

                    , 20      

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent

c/o Wells Fargo Real Estate Banking Group

200 Public Square - Suite 3200

Cleveland, OH 44114

Attention:  Greg Ward

 

Ladies and Gentlemen:

 

Reference is made to that certain Term Loan Agreement dated as of June 20, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among U-STORE-IT, L.P. (the “Borrower”), U-Store-It Trust (the “Parent”), the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), WELLS 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 2.6. of the Credit Agreement, the Borrower hereby requests a Continuation of a borrowing of LIBOR Loans under the Credit Agreement, and in that connection 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 LIBOR Loans to be Continued pursuant hereto are:

 

[Check the relevant box]

 

o            Five Year Term Loans

o            Seven Year Term Loans

 

3.                                       The aggregate principal amount of LIBOR Loans subject to the requested Continuation is $                                        and was originally borrowed by the Borrower on                          , 20    .

 

4.                                       The portion of such principal amount subject to such Continuation is $                                             .

 

5.                                       The current Interest Period for each of the LIBOR Loans subject to such Continuation ends on                                , 20     .

 

D-1

 

6.                                       The duration of the new Interest Period for each of such Loans or portion thereof subject to such Continuation is:

 

[Check one box only]

 

o            1 month

o            3 months

o            6 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 requested Continuation and 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 Parent, 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 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 on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.

 

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 2.6. of the Credit Agreement.

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Continuation as of the date first written above.

 

	
 
    	
U-STORE-IT,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
U-Store-It   Trust, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    

 

D-2

 

EXHIBIT E

 

FORM OF NOTICE OF CONVERSION

 

                   , 20    

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent

c/o Wells Fargo Real Estate Banking Group

200 Public Square - Suite 3200

Cleveland, OH 44114

Attention:  Greg Ward

 

Ladies and Gentlemen:

 

Reference is made to that certain Term Loan Agreement dated as of June 20, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among U-STORE-IT, L.P. (the “Borrower”), U-Store-It Trust (the “Parent”), the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), WELLS 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 2.7. 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 that connection 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.                                       Loans to be Converted pursuant hereto are:

 

	
[Check the relevant box]
    	
o
    	
Five   Year Term Loans
    
	
 
    	
o
    	
Seven   Year Term Loans
    

 

3.                                       The Loans to be Converted pursuant hereto are currently(1):

 

	
[Check one box only]
    	
o
    	
Base   Rate Loans
    
	
 
    	
o
    	
LIBOR   Loans
    

 

4.                                       The aggregate principal amount of Loans subject to the requested Conversion is $                         and was originally borrowed by the Borrower on                         , 20     .

 

5.                                       The portion of such principal amount subject to such Conversion is $                               .

 

(1)  A Base Rate Loan may not be Converted to a LIBOR Loan if a Default or Event of Default shall exist.

 

E-1

 

6.                                       The amount of such Loans to be so Converted is to be converted into Loans of the following Type:

 

[Check one box only]

 

o            Base Rate Loans

o            LIBOR Loans, each with an initial Interest Period for a duration of:

 

[Check one box only]

 

o            1 month

o            3 months

o            6 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 requested Conversion and after giving effect thereto, (a) no Default or Event of Default exists or will exist (provided the certification under this clause (a) shall not be made in connection with the Conversion of a Loan into a Base Rate Loan), and (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, are and shall be true and correct in all material respects, 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 on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.

 

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 2.7. of the Credit Agreement.

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Conversion as of the date first written above.

 

	
 
    	
U-STORE-IT,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
U-Store-It   Trust, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    

 

E-2

 

EXHIBIT F

 

FORM OF FIVE YEAR TERM NOTE

 

	
$
    	
, 20    
    

 

FOR VALUE RECEIVED, the undersigned, U-STORE-IT, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”), hereby promises to pay to                                (the “Lender”) or its registered assigns, in care of WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”) at WELLS FARGO BANK, NATIONAL ASSOCIATION, c/o Wells Fargo Real Estate Banking Group, 200 Public Square-Suite 3200, Cleveland, Ohio 44114, 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 unpaid principal amount of the Term Loans made by the Lender to the Borrower under the Credit Agreement (as herein defined)), 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.

 

The date and amount of the Term Loans made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof, provided that the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower to make a payment when due of any amount owing under the Credit Agreement or hereunder in respect of the Term Loans made by the Lender.

 

This Five Year Term Note (the “Note”) is one of the Five Year Term Notes referred to in the Term Loan Agreement dated as of June 20, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, U-Store-It Trust, the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), 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.

 

The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of Loans upon the terms and conditions specified therein.

 

Except as permitted by Section 12.5. of the Credit Agreement, this Note may not be assigned by the Lender to any Person.

 

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

The Borrower hereby waives presentment for payment, demand, notice of demand, notice of non-payment, protest, notice of protest and all other similar notices.

 

Time is of the essence for this Note.

 

F-1

 

IN WITNESS WHEREOF, the undersigned has executed and delivered this Five Year Term Note under seal as of the date first written above.

 

	
 
    	
U-STORE-IT,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
U-Store-It   Trust, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

F-2

 

SCHEDULE TO NOTE

 

This Note evidences the Five Year Term Loan made under the within-described Credit Agreement to the Borrower, on the date, in the principal amount, bearing interest at the rates and maturing on the dates set forth below, subject to the payments and prepayments of principal set forth below:

 

	
Date of
   Loan
    	
 
    	
Principal
   Amount of
   Loan
    	
 
    	
Amount
   Paid or
   Prepaid
    	
 
    	
Unpaid

Principal

Amount
    	
 
    	
Notation
   Made By
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

F-3

 

EXHIBIT G

 

FORM OF SEVEN YEAR TERM NOTE

 

	
$
    	
,   20
    

 

FOR VALUE RECEIVED, the undersigned, U-STORE-IT, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”), hereby promises to pay to                                          (the “Lender”) or its registered assigns, in care of WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”) at WELLS FARGO BANK, NATIONAL ASSOCIATION, c/o Wells Fargo Real Estate Banking Group, 200 Public Square-Suite 3200, Cleveland, Ohio 44114, 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 unpaid principal amount of the Term Loans made by the Lender to the Borrower under the Credit Agreement (as herein defined)), 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.

 

The date and amount of the Term Loans made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof, provided that the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower to make a payment when due of any amount owing under the Credit Agreement or hereunder in respect of the Term Loans made by the Lender.

 

This Seven Year Term Note (the “Note”) is one of the Seven Year Term Notes referred to in the Term Loan Agreement dated as of June 20, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, U-Store-It Trust, the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), 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.

 

The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of Loans upon the terms and conditions specified therein.

 

Except as permitted by Section 12.5. of the Credit Agreement, this Note may not be assigned by the Lender to any Person.

 

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

The Borrower hereby waives presentment for payment, demand, notice of demand, notice of non-payment, protest, notice of protest and all other similar notices.

 

Time is of the essence for this Note.

 

G-1

 

IN WITNESS WHEREOF, the undersigned has executed and delivered this Seven Year Term Note under seal as of the date first written above.

 

	
 
    	
U-STORE-IT,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
U-Store-It   Trust, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

G-2

 

SCHEDULE TO NOTE

 

This Note evidences the Seven Year Term Loan made under the within-described Credit Agreement to the Borrower, on the date, in the principal amount, bearing interest at the rates and maturing on the dates set forth below, subject to the payments and prepayments of principal set forth below:

 

	
Date of
   Loan
    	
 
    	
Principal
   Amount of
   Loan
    	
 
    	
Amount
   Paid or
   Prepaid
    	
 
    	
Unpaid
   Principal
   Amount
    	
 
    	
Notation
   Made By
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

G-3

 

EXHIBIT H

 

FORM OF OPINION OF COUNSEL

 

[LETTERHEAD OF COUNSEL TO THE LOAN PARTIES]

 

June     , 2011

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent

c/o Wells Fargo Real Estate Banking Group

200 Public Square - Suite 3200

Cleveland, OH 44114

 

The Lenders party to the Credit Agreement referred to below

 

Ladies and Gentlemen:

 

We have acted as counsel to U-STORE-IT, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”) and U-Store-It Trust, a real estate investment trust formed under the laws of the State of Maryland (the “Parent”), in connection with the negotiation, execution and delivery of that certain Term Loan Agreement dated as of June 20, 2011 (the “Credit Agreement”), by and among the Borrower, the Parent, the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”), and the other parties thereto.  We have also acted as counsel to each of the Guarantors listed on Schedule 1 attached hereto (the “Guarantors”; together with the Borrower and the Parent, the “Loan Parties”), in connection with the Guaranty and the other Loan Documents identified below to which they are party.  Capitalized terms not otherwise defined herein have the respective meaning given them in the Credit Agreement.

 

In these capacities, we have reviewed executed copies of the following:

 

(a)                                  the Credit Agreement;

 

(b)                                 the Notes;

 

(c)                                  the Guaranty;

 

[list other applicable Loan Documents]; and

 

The documents and instruments set forth in items (a) through [(c)] above are referred to herein as the “Loan Documents”.

 

In addition to the foregoing, we have reviewed the [articles or certificate of incorporation, by-laws, declaration of trust, partnership agreement and limited liability company operating agreement, as applicable,] of each Loan Party and certain resolutions of the board of trustees or directors, as applicable, of each Loan Party (collectively, the “Organizational Documents”) and have also examined originals or

 

H-1

 

copies, certified or otherwise identified to our satisfaction, of such documents, corporate records, and other instruments, and made such other investigations of law and fact, as we have deemed necessary or advisable for the purposes of rendering this opinion.  In our examination of documents, we assumed the genuineness of all signatures on documents presented to us as originals (other than the signatures of officers of the Loan Parties) and the conformity to originals of documents presented to us as conformed or reproduced copies.

 

Based upon the foregoing, and subject to all of the qualifications and assumptions set forth herein, we are of the opinion that:

 

1.             The Borrower is a limited partnership, duly organized, validly existing and in good standing under the laws of the State of Delaware, and has the power to execute and deliver, and to perform its obligations under, the Loan Documents to which it is a party, to own and use its assets, and to conduct its business as presently conducted.

 

2.             Each Guarantor is a [corporation, trust, partnership or limited liability company, as applicable,] duly organized or formed, validly existing and in good standing under the laws of the State of its organization or formation and has the power to execute and deliver, and to perform its obligations under, the Loan Documents to which it is a party, to own and use its assets, and to conduct its business as presently conducted.

 

3.             Each Loan Party has duly authorized the execution and delivery of the Loan Documents to which it is a party and the performance by such Loan Party of all of its obligations under each such Loan Document.

 

4.             Each Loan Party has duly executed and delivered the Loan Documents to which it is a party.

 

5.             Each Loan Document is a valid and binding obligation of each Loan Party which is a party thereto, enforceable against each such Loan Party in accordance with its terms, except as such enforceability may be limited by:  (a) applicable bankruptcy, insolvency, reorganization, moratorium, arrangement or similar laws relating to or affecting the enforcement of creditors’ rights generally and (b) the fact that equitable remedies or relief (including, but not limited to, the remedy of specific performance) are subject to the discretion of the court before which any such remedies or relief may be sought.

 

6.             The execution and delivery by each Loan Party of the Loan Documents to which it is a party do not, and if each Loan Party were now to perform its obligations under such Loan Documents, such performance would not, result in any:

 

(a)           violation of such Loan Party’s Organizational Documents;

 

(b)           violation of any existing federal or state constitution, statute, regulation, rule, order, or law to which such Loan Party or its assets are subject;

 

(c)           breach or violation of or default under, any agreement, instrument, indenture or other document evidencing any indebtedness for money borrowed or to our knowledge any other material agreement to which such Loan Party is bound or under which a Loan Party or its assets is subject;

 

H-2

 

(d)           creation or imposition of a lien or security interest in, on or against the assets of such Loan Party under any agreement, instrument, indenture or other document evidencing any indebtedness for money borrowed or any other material agreement to which, to our knowledge, such Loan Party is bound or under which a Loan Party or its assets is subject; or

 

(e)           violation of any judicial or administrative decree, writ, judgment or order to which, to our knowledge, such Loan Party or its assets are subject.

 

7.             The execution, delivery and performance by each Loan Party of each Loan Document to which it is a party, and the consummation of the transactions thereunder, do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority of the United States of America or the States of Delaware or [                      ].

 

8.             To our knowledge, (a) there are no judgments outstanding against any of the Loan Parties or affecting any of their respective assets, nor is there any litigation or other proceeding against any of the Loan Parties or its assets pending or overtly threatened, could reasonably be expected to have a materially adverse effect on the validity or enforceability of any of the Loan Documents, (b) no Loan Party is subject to any bankruptcy or other insolvency proceedings or any assignment for the benefit of creditors and (c) no Loan Party is operating under or subject to any receiver, trustee or similar entity for the benefit of creditors.

 

9.             None of the Loan Parties is, or, after giving effect to any Loan will be, subject to regulation under the Investment Company Act of 1940 or to any federal or state statute or regulation limiting its ability to incur indebtedness for borrowed money.

 

10.           Assuming that Borrower applies the proceeds of the Loans as provided in the Credit Agreement, the transactions contemplated by the Loan Documents do not violate the provisions of Regulations T, U or X of the Board of Governors of the Federal Reserve System of the United States of America.

 

11.           The consideration to be paid to the Administrative Agent and the Lenders for the financial accommodations to be provided to the Loan Parties pursuant to the Credit Agreement does not violate any law of the States of North Carolina or [                ] relating to interest and usury.

 

This opinion is limited to the laws of the States of [                ] and North Carolina and the federal laws of the United States of America, and we express no opinions with respect to the law of any other jurisdiction.

 

[Other Customary Qualifications/Assumptions/Limitations]

 

This opinion is furnished to you solely for your benefit in connection with the consummation of the transactions contemplated by the Credit Agreement and may not be relied upon by any other Person, other than an Assignee of a Lender, or for any other purpose without our express, prior written consent.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
[NAME   OF LAW FIRM]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
A Partner
    

 

H-3

 

SCHEDULE 1

 

Guarantors

 

	
Name
    	
 
    	
Jurisdiction of Formation
    	
 
    	
Jurisdictions of Foreign
   Qualification
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-4

 

EXHIBIT I

 

FORM OF COMPLIANCE CERTIFICATE

 

              , 20    

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent

c/o Wells Fargo Real Estate Banking Group

200 Public Square - Suite 3200

Cleveland, OH 44114

 

Each of the Lenders Party to the Credit Agreement referred to below

 

Ladies and Gentlemen:

 

Reference is made to that certain Term Loan Agreement dated as of June 20, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among U-STORE-IT, L.P. (the “Borrower”), U-Store-It Trust (the “Parent”) the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), WELLS 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 8.3. of the Credit Agreement, the undersigned hereby certifies to the Administrative Agent and the Lenders as follows:

 

(1)           The undersigned is the                                      (1) 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)           To the best of the undersigned’s knowledge, information and belief after due inquiry, no Default or Event of Default exists [If such is not the case, specify such Default or Event of Default 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)           To the best of the undersigned’s knowledge, information and belief after due inquiry, the representations and warranties made or deemed made by the Parent, the Borrower and the other Loan Parties in the Loan Documents to which any is a party, are true and correct in all material respects on and as of the date hereof 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 on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.

 

(1)  Must be the chief financial officer, treasurer, or chief accounting officer of the Parent.

 

I-1

 

(5)           Attached hereto as Schedule 1 are reasonably detailed calculations establishing whether the Parent and the Borrower were in compliance with the covenants contained in Sections 9.1., 9.2., and 9.4. of the Credit Agreement as of the end of the relevant quarterly accounting period, fiscal year, or other fiscal period covered by the financial statements furnished along with this certificate.

 

IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date first above written.

 

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
,
    
	
 
    	
the                                         of the Parent
    
					

 

I-2

 

Schedule 1

 

[Calculations to be Attached]

 

I-3

 

Loan Number:              

 

EXHIBIT J

 

TRANSFER AUTHORIZER DESIGNATION

(For Disbursement of Loan Proceeds by Funds Transfer)

 

 

o  NEW  o  REPLACE PREVIOUS DESIGNATION  o  ADD  o  CHANGE  o  DELETE LINE NUMBER                  

 

The following representatives of U-STORE-IT, L.P. (“Borrower”) are authorized to request the disbursement of the proceeds of Loans and initiate funds transfers for Loan Number [                   ] assigned to the term loan facility evidenced by the Term Loan Agreement dated June 20, 2011, among the Borrower, U-Store-It Trust, each of the financial institutions initially a signatory thereto together with their assignees under Section 12.5. thereof (the “Lenders”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as the Administrative Agent for the Lenders (the “Administrative Agent”) and the other parties thereto.  The Administrative Agent is authorized to rely on this Transfer Authorizer Designation until it has received a new Transfer Authorizer Designation signed by Borrower, even in the event that any or all of the foregoing information may have changed.

 

 

	
Name
    	
 
    	
Title
    	
 
    	
Maximum
   Wire
   Amount(1)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Christopher   Marr
    	
 
    	
President   and Chief Investment Officer
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Timothy   M. Martin
    	
 
    	
Chief   Financial Officer
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Jeffrey   P. Foster
    	
 
    	
Senior   Vice President, Chief Legal Officer and Secretary
    	
 
    	
 
    

 

[Continued on next page]

 

(1)  Maximum wire amount may not exceed the aggregate amount of the Commitments.

 

J-1

 

Loan Number:             

 

Beneficiary Bank and Account Holder Information

 

1.

	
Transfer Funds to (Receiving Party Account Name):
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Receiving Party Account Number:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Receiving Bank Name, City and State:
    	
 
    	
Receiving Bank Routing (ABA) Number
    
	
 
    	
 
    	
 
    
	
Maximum Transfer Amount:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Further Credit Information/Instructions:
    	
 
    	
 
    

 

2.

	
Transfer Funds to (Receiving Party Account Name):
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Receiving Party Account Number:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Receiving Bank Name, City and State:
    	
 
    	
Receiving Bank Routing (ABA) Number
    
	
 
    	
 
    	
 
    
	
Maximum Transfer Amount:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Further Credit Information/Instructions:
    	
 
    	
 
    

 

3.

 

	
Transfer Funds to (Receiving Party Account Name):
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Receiving Party Account Number:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Receiving Bank Name, City and State:
    	
 
    	
Receiving Bank Routing (ABA) Number
    
	
 
    	
 
    	
 
    
	
Maximum Transfer Amount:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Further Credit Information/Instructions:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

J-2

 

Loan Number:                

 

Date:                    , 2011

 

“BORROWER”

 

U-STORE-IT, L.P.

 

By:  U-Store-It Trust, its general partner

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
					

 

J-3Exhibit 10.1

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

 

CREDIT AGREEMENT

 

Dated as of June 16, 2011

 

among

 

STATION CASINOS LLC
 as Borrower,

 

DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH
 JPMORGAN CHASE BANK, N.A.
 and
 THE INSTITUTIONS FROM TIME TO TIME PARTY HERETO
 as Lenders

 

DEUTSCHE BANK AG NEW YORK BRANCH
 as L/C Issuer

 

and

 

DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH
 as Administrative Agent

 

 

DEUTSCHE BANK SECURITIES INC.
 and

J.P. MORGAN SECURITIES LLC
 as Joint Lead Arrangers and Joint Bookrunners

 

 

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
ARTICLE I   Definitions and Accounting Terms
    	
2
    
	
 
    	
 
    
	
SECTION 1.01. Defined Terms
    	
2
    
	
SECTION 1.02. Other Interpretive Provisions
    	
61
    
	
SECTION 1.03. Accounting Terms; Calculations
    	
62
    
	
SECTION 1.04. Rounding
    	
62
    
	
SECTION 1.05. References to Agreements,   Laws, etc.
    	
62
    
	
SECTION 1.06. Times of Day
    	
63
    
	
SECTION 1.07. Timing of Payment or Performance
    	
63
    
	
 
    	
 
    
	
ARTICLE II The   Revolving Credit Commitments and Credit Extensions
    	
63
    
	
 
    	
 
    
	
SECTION 2.01. The Loans
    	
63
    
	
SECTION 2.02. Borrowings, Conversions and Continuations   of Loans
    	
64
    
	
SECTION 2.03. Letters of Credit
    	
65
    
	
SECTION 2.04. Swing Line Loans
    	
74
    
	
SECTION 2.05. Prepayments
    	
76
    
	
SECTION 2.06. Increase, Termination or Reduction of   Revolving Credit Commitments
    	
85
    
	
SECTION 2.07. Repayment of Loans
    	
86
    
	
SECTION 2.08. Interest
    	
86
    
	
SECTION 2.09. Fees
    	
88
    
	
SECTION 2.10. Computation of Interest and Fees
    	
89
    
	
SECTION 2.11. Evidence of Indebtedness
    	
89
    
	
SECTION 2.12. Payments Generally
    	
90
    
	
SECTION 2.13. Sharing of Payments
    	
92
    
	
SECTION 2.14. Maturity Date Extension
    	
93
    
	
SECTION 2.15. [Reserved.]
    	
93
    
	
SECTION 2.16. Defaulting Lenders
    	
93
    
	
 
    	
 
    
	
ARTICLE III   Taxes, Increased Costs Protection and Illegality
    	
95
    
	
 
    	
 
    
	
SECTION 3.01. Taxes
    	
95
    
	
SECTION 3.02. Illegality
    	
98
    
	
SECTION 3.03. Inability to Determine Rates
    	
98
    
	
SECTION 3.04. Increased Cost and Reduced Return;   Capital Adequacy; Reserves on Eurodollar Loans
    	
98
    
	
SECTION 3.05. Funding Losses
    	
100
    
	
SECTION 3.06. Matters Applicable to All Requests for   Compensation
    	
100
    
	
SECTION 3.07. Replacement of Lenders under Certain   Circumstances
    	
101
    
	
SECTION 3.08. Survival
    	
102
    
	
 
    	
 
    
	
ARTICLE IV   Conditions Precedent to Credit Extensions
    	
103
    
	
 
    	
 
    
	
SECTION 4.01. Conditions of Initial Credit Extension
    	
103
    
	
SECTION 4.02. Conditions to All Credit Extensions
    	
106
    

 

i

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

	
ARTICLE V   Representations and Warranties
    	
108
    
	
 
    	
 
    
	
SECTION 5.01. Existence, Qualification and Power;   Compliance with Laws
    	
108
    
	
SECTION 5.02. Authorization; No Contravention
    	
108
    
	
SECTION 5.03. Governmental Authorization; Other   Consents
    	
108
    
	
SECTION 5.04. Binding Effect
    	
109
    
	
SECTION 5.05. Financial Statements; No Material   Adverse Effect
    	
109
    
	
SECTION 5.06. Litigation
    	
110
    
	
SECTION 5.07. No Default
    	
111
    
	
SECTION 5.08. Ownership of Property; Liens
    	
111
    
	
SECTION 5.09. Environmental Compliance
    	
112
    
	
SECTION 5.10. Taxes
    	
113
    
	
SECTION 5.11. ERISA Compliance
    	
114
    
	
SECTION 5.12. Subsidiaries; Equity Interests
    	
114
    
	
SECTION 5.13. Margin Regulations; Investment Company   Act
    	
115
    
	
SECTION 5.14. Disclosure
    	
115
    
	
SECTION 5.15. Intellectual Property; Licenses, etc.
    	
115
    
	
SECTION 5.16. Solvency
    	
116
    
	
SECTION 5.17. Maintenance of Insurance
    	
116
    
	
SECTION 5.18. Labor Matters
    	
117
    
	
SECTION 5.19. Restructuring Transactions Documentation
    	
117
    
	
SECTION 5.20. Collateral
    	
117
    
	
SECTION 5.21. Location of Real Property
    	
117
    
	
SECTION 5.22. Permits
    	
117
    
	
SECTION 5.23. Fiscal Year
    	
118
    
	
SECTION 5.24. Patriot Act
    	
118
    
	
SECTION 5.25. Use of Proceeds
    	
118
    
	
SECTION 5.26. OpCo Cost Allocation
    	
118
    
	
 
    	
 
    
	
ARTICLE VI   Affirmative Covenants
    	
119
    
	
 
    	
 
    
	
SECTION 6.01. Financial Statements
    	
119
    
	
SECTION 6.02. Certificates; Other Information
    	
121
    
	
SECTION 6.03. Notices
    	
124
    
	
SECTION 6.04. Payment of Obligations
    	
125
    
	
SECTION 6.05. Preservation of Existence, Etc.
    	
125
    
	
SECTION 6.06. Maintenance of Properties; Employees
    	
125
    
	
SECTION 6.07. Maintenance of Insurance
    	
125
    
	
SECTION 6.08. Compliance with Laws
    	
126
    
	
SECTION 6.09. Books and Records; Quarterly Conference   Calls
    	
126
    
	
SECTION 6.10. Inspection Rights
    	
126
    
	
SECTION 6.11. Covenant to Guarantee Obligations and   Give Security
    	
127
    
	
SECTION 6.12. Compliance with Environmental Laws
    	
129
    
	
SECTION 6.13. Further Assurances and Post-Closing   Conditions
    	
129
    
	
SECTION 6.14. Designation of Subsidiaries
    	
130
    
	
SECTION 6.15. Information Regarding Collateral
    	
132
    
	
SECTION 6.16. Corporate Separateness
    	
133
    

 

ii

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

	
SECTION 6.17. Interest Rate Protection
    	
133
    
	
SECTION 6.18. Management Agreement
    	
133
    
	
SECTION 6.19. Unrestricted Subsidiaries
    	
136
    
	
SECTION 6.20. Equity Issuances
    	
137
    
	
SECTION 6.21. Subsidiary Cost Allocation Agreements
    	
137
    
	
SECTION 6.22. Maintenance of Ratings
    	
137
    
	
 
    	
 
    
	
ARTICLE VII Negative   Covenants
    	
138
    
	
 
    	
 
    
	
SECTION 7.01. Liens
    	
138
    
	
SECTION 7.02. Investments
    	
141
    
	
SECTION 7.03. Indebtedness
    	
146
    
	
SECTION 7.04. Fundamental Changes
    	
148
    
	
SECTION 7.05. Dispositions
    	
149
    
	
SECTION 7.06. Restricted Payments
    	
151
    
	
SECTION 7.07. Change in Nature of Business
    	
153
    
	
SECTION 7.08. Transactions with Affiliates
    	
153
    
	
SECTION 7.09. Burdensome Agreements
    	
153
    
	
SECTION 7.10. Use of Proceeds
    	
154
    
	
SECTION 7.11. Financial Covenants
    	
155
    
	
SECTION 7.12. Accounting Changes
    	
155
    
	
SECTION 7.13. Prepayments, etc. of Indebtedness;   Material Contracts
    	
156
    
	
SECTION 7.14. Equity Interests of the Borrower and   Restricted Subsidiaries
    	
158
    
	
SECTION 7.15. The Holding Companies
    	
158
    
	
SECTION 7.16. Capital Expenditures
    	
158
    
	
SECTION 7.17. Sale-Leaseback Transactions
    	
159
    
	
SECTION 7.18. Unrestricted Subsidiary Covenants
    	
159
    
	
SECTION 7.19. Real Property Leases
    	
161
    
	
 
    	
 
    
	
ARTICLE VIII Events   of Default and Remedies
    	
163
    
	
 
    	
 
    
	
SECTION 8.01. Events of Default
    	
163
    
	
SECTION 8.02. Remedies Upon Event of Default
    	
168
    
	
SECTION 8.03. [Reserved]
    	
168
    
	
SECTION 8.04. Application of Funds
    	
168
    
	
SECTION 8.05. Borrower’s Right to Cure
    	
170
    
	
 
    	
 
    
	
ARTICLE IX   Administrative Agent and Other Agents
    	
170
    
	
 
    	
 
    
	
SECTION 9.01. Appointment and Authorization of Agents
    	
170
    
	
SECTION 9.02. Delegation of Duties
    	
171
    
	
SECTION 9.03. Liability of Agents
    	
172
    
	
SECTION 9.04. Reliance by Agents
    	
172
    
	
SECTION 9.05. Notice of Default
    	
173
    
	
SECTION 9.06. Credit Decision; Disclosure of   Information by Agents
    	
173
    
	
SECTION 9.07. Indemnification of Agents
    	
174
    
	
SECTION 9.08. Agents in their Individual Capacities
    	
174
    

 

iii

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

	
SECTION 9.09. Successor Agents
    	
175
    
	
SECTION 9.10. Administrative Agent May File   Proofs of Claim
    	
176
    
	
SECTION 9.11. Collateral and Guaranty Matters
    	
176
    
	
SECTION 9.12. Appointment of Supplemental   Administrative Agents
    	
178
    
	
 
    	
 
    
	
ARTICLE X   Miscellaneous
    	
179
    
	
 
    	
 
    
	
SECTION 10.01. Amendments, etc.
    	
179
    
	
SECTION 10.02. Notices and Other Communications;   Facsimile Copies
    	
181
    
	
SECTION 10.03. No Waiver; Cumulative Remedies
    	
182
    
	
SECTION 10.04. Attorney Costs, Expenses and Taxes
    	
182
    
	
SECTION 10.05. Indemnification by the Borrower
    	
183
    
	
SECTION 10.06. Payments Set Aside
    	
184
    
	
SECTION 10.07. Successors and Assigns
    	
184
    
	
SECTION 10.08. Confidentiality
    	
189
    
	
SECTION 10.09. Setoff
    	
190
    
	
SECTION 10.10. Interest Rate Limitation
    	
191
    
	
SECTION 10.11. Counterparts
    	
191
    
	
SECTION 10.12. Integration
    	
192
    
	
SECTION 10.13. Survival of Representations and   Warranties
    	
192
    
	
SECTION 10.14. Severability
    	
192
    
	
SECTION 10.15. Tax Forms
    	
192
    
	
SECTION 10.16. GOVERNING LAW
    	
194
    
	
SECTION 10.17. WAIVER OF RIGHT TO TRIAL BY JURY
    	
195
    
	
SECTION 10.18. Binding Effect
    	
195
    
	
SECTION 10.19. Lender Action
    	
195
    
	
SECTION 10.20. Acknowledgments
    	
195
    
	
SECTION 10.21. USA PATRIOT Act
    	
196
    
	
SECTION 10.22. Gaming Authorities and Liquor   Authorities
    	
196
    
	
SECTION 10.23. Certain Matters Affecting Lenders
    	
196
    
	
SECTION 10.24. [Reserved]
    	
197
    
	
SECTION 10.25. Qualified IPO
    	
197
    
	
SECTION 10.26. Tranche B-3 Securities Exchange
    	
197
    
	
SECTION 10.27. The Platform
    	
199
    

 

iv

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

SCHEDULES

 

	
1.01A
    	
Disqualified   Institutions
    
	
1.01B
    	
List   of Closing Documents
    
	
1.01C
    	
Unrestricted   Subsidiaries
    
	
1.01D
    	
[Reserved]
    
	
1.01E
    	
Material   Contracts
    
	
1.01F
    	
BlockerCos
    
	
2.01
    	
Revolving   Credit Commitments; Term Loan Distribution Amounts
    
	
2.03
    	
Existing   Letters of Credit
    
	
5.03
    	
Consents
    
	
5.05
    	
Certain   Liabilities
    
	
5.08(f)
    	
Real   Property Leases
    
	
5.10(b)
    	
Tax   Examinations
    
	
5.12
    	
Subsidiaries   and Other Equity Investments
    
	
5.15
    	
Intellectual   Property
    
	
5.17
    	
Insurance
    
	
5.19
    	
Restructuring   Transactions Documentation
    
	
5.21
    	
Location   of Real Property
    
	
7.01(b)
    	
Existing   Liens
    
	
7.02(f)
    	
Existing   Investments
    
	
7.03(b)
    	
Existing   Indebtedness
    
	
7.08
    	
Transactions   with Affiliates
    
	
7.09
    	
Existing   Restrictions
    
	
10.02
    	
Administrative   Agent’s Office, Certain Addresses for Notices
    

 

v

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

EXHIBITS

 

	
A
    	
Committed   Loan Notice
    
	
B
    	
Swing   Line Loan Notice
    
	
C-1
    	
Tranche   B-1 Term Note
    
	
C-2
    	
Tranche   B-2 Term Note
    
	
C-3
    	
Tranche   B-3 Term Note
    
	
C-4
    	
Revolving   Credit Note
    
	
C-5
    	
Swing   Line Note
    
	
D
    	
Compliance   Certificate
    
	
E
    	
Assignment   and Assumption
    
	
F
    	
Guaranty
    
	
G-1
    	
Security   Agreement
    
	
G-2
    	
Pledge   Agreement
    
	
G-3
    	
Shareholder   Pledge Agreement
    
	
H
    	
Mortgage
    
	
I
    	
Intellectual   Property Security Agreements
    
	
J-1
    	
Opinion   Matters — New York Counsel to Loan Parties
    
	
J-2
    	
Opinion   Matters — Nevada Counsel to Loan Parties
    
	
K
    	
Intercompany   Note
    
	
L
    	
Insurance   Requirements
    
	
M
    	
Non-Disturbance   Agreement
    
	
N
    	
Access/Cooperation   Covenants
    
	
O-1
    	
Fixed   Rate Conversion Notice
    
	
O-2
    	
Fixed   Rate Conversion Effective Date Notice
    
	
O-3
    	
Monthly   Interest Notice
    
	
P
    	
Tranche   B-3 Securities Exchange Notice
    
	
Q
    	
Terms   of Exchange Securities
    

 

vi

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

CREDIT AGREEMENT

 

This CREDIT AGREEMENT (this “Agreement”) is entered into as of June 16, 2011 among STATION CASINOS LLC, a Nevada limited liability company (the “Borrower”), DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH, as Administrative Agent (in such capacity, together with any successor thereto, the “Administrative Agent”), DEUTSCHE BANK AG NEW YORK BRANCH, as L/C Issuer, and each lender from time to time party hereto (collectively, the “Lenders” and, individually, a “Lender”).  All capitalized terms used herein and defined in Section 1.01 are used herein as therein defined.

 

PRELIMINARY STATEMENTS

 

WHEREAS, on July 28, 2009, Station Casinos, Inc., a Nevada corporation (“Old OpCo”), FCP PropCo, LLC, a Delaware limited liability company (“Old PropCo”), and several of their Affiliates (collectively, the “Debtors”) commenced their bankruptcy cases (collectively, the “Chapter 11 Cases”) as debtors and debtors in possession by filing voluntary petitions under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Nevada (the “Bankruptcy Court”);

 

WHEREAS, on March 24, 2010, the Debtors filed with the Bankruptcy Court the Plan of Reorganization and the Disclosure Statement;

 

WHEREAS, on August 27, 2010, the Bankruptcy Court entered the Confirmation Order confirming the Plan of Reorganization;

 

WHEREAS, pursuant to the Plan of Reorganization, the Debtors have implemented (or substantially simultaneously with the Closing Date will implement) the Restructuring Transactions;

 

WHEREAS, simultaneously with the substantial consummation (as defined in Section 1101(2) of the Bankruptcy Code) of the Plan of Reorganization, (a) in partial consideration of the New PropCo Acquired Assets Transfers occurring pursuant to the Plan of Reorganization, the Lenders shall be deemed to hold the Term Loans hereunder in an initial aggregate amount of $1,600,000,000 and (b) the Lenders have agreed, on the terms and subject to the conditions set forth herein, to extend credit to the Borrower in the form of a Revolving Credit Facility in an initial aggregate amount of $100,000,000.  The Revolving Credit Facility may include one or more Swing Line Loans and one or more Letters of Credit from time to time; and

 

WHEREAS, the proceeds of the Revolving Credit Loans and Swing Line Loans will be used (a) to fund a portion of the consideration paid by the Borrower on the Closing Date in respect of the OpCo Acquisition and (b) for working capital and other general corporate purposes of the Borrower and the Restricted Subsidiaries, including the financing of the GVR Acquisition and Permitted Acquisitions and other Investments to the extent permitted under Section 7.02.  Letters of Credit will be used for general corporate purposes of the Borrower, the Restricted Subsidiaries and, to the extent permitted under Sections 2.03(a) and 7.02, Unrestricted Subsidiaries.

 

1

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

 

ARTICLE I

 

Definitions and Accounting Terms

 

SECTION 1.01.  Defined Terms.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

“Acquired EBITDA” means, with respect to any Acquired Entity or Business or any Converted Restricted Subsidiary for any period, the amount for such period of Consolidated EBITDA of such Acquired Entity or Business or Converted Restricted Subsidiary (determined as if references to the Borrower and the Restricted Subsidiaries in the definition of “Consolidated EBITDA” (and in the component financial definitions used therein) were references to such Acquired Entity or Business or Converted Restricted Subsidiary and its Subsidiaries and without regard to clauses (A)(5) and (A)(6) of such definition or the last sentence of the definition of “Consolidated Net Income”), all as determined on a consolidated basis for such Acquired Entity or Business or Converted Restricted Subsidiary in accordance with GAAP.

 

“Acquired Entity or Business” has the meaning specified in the definition of the term “Consolidated EBITDA”.

 

“Acquisition” means the acquisition of assets and the assumption of certain liabilities, in each case pursuant to, and in accordance with the terms of, the Acquisition Agreement.

 

“Acquisition Agreement” means that certain Asset Purchase Agreement, dated as of June 7, 2010, among Old OpCo, certain subsidiaries party thereto and FG Opco Acquisitions LLC.

 

“Acquisition Documents” means the Acquisition Agreement and all other agreements and documents relating to the Acquisition.

 

“Adjusted LIBO Rate” means, with respect to any Eurodollar Loan for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100,000 of 1%) equal to the product of (a) the LIBO Rate in effect for such Interest Period and (b) Statutory Reserves, to the extent applicable to any Lender.

 

“Administrative Agent” has the meaning specified in the preamble hereto.

 

“Administrative Agent’s Office” means the Administrative Agent’s address as set forth on Schedule 10.02 or such other address as the Administrative Agent may from time to time notify the Borrower and the Lenders.

 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

2

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Affiliate” means (a) with respect to any 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; provided, that as to any Loan Party or any Subsidiary thereof, the term “Affiliate” shall expressly exclude the Persons constituting Lenders as of the Closing Date and their respective Affiliates and (b) with respect to any Loan Party or any Subsidiary thereof, (i) Frank J. Fertitta III and his spouse, their respective parents and grandparents and any lineal descendants (including adopted children and their lineal descendants) of any of the foregoing, (ii) Lorenzo J. Fertitta and his spouse, their respective parents and grandparents and any lineal descendants (including adopted children and their lineal descendants) of any of the foregoing, (iii) any Affiliate of any Person described in the foregoing clauses (i) and (ii) or (iv) any personal investment vehicle, trust or entity owned by, or established for the benefit of, or the estate of, any Person described in the foregoing clauses (i) and (ii).  “Control” means the possession, directly or indirectly, of the power to (x) vote more than fifty percent (50%) of the outstanding voting interests of a Person or (y) 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.  For purposes of this Agreement, each of Holdco and VoteCo shall be deemed to Control the Borrower.

 

“Agent-Related Persons” means the Agents, together with their respective Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates.

 

“Agents” means, collectively, the Administrative Agent and the Supplemental Administrative Agents (if any).

 

“Aggregate Commitments” means, at any time, the Revolving Credit Commitments of all the Lenders at such time.

 

“Aggregate Consideration” means, with respect to any Permitted Acquisition, the aggregate amount of consideration (cash and noncash and including the fair market value of all Equity Interests issued or transferred to the sellers thereof, all indemnities, earnouts and other contingent payment obligations to, and the aggregate amounts paid or to be paid under noncompete, consulting and other affiliated agreements with, the sellers thereof, all write-downs of property and reserves for liabilities with respect thereto and all assumptions of debt, liabilities and other obligations in connection therewith (other than assumptions of debt, liabilities and other obligations by Unrestricted Subsidiaries)) paid by the Borrower and the Restricted Subsidiaries in respect thereof.

 

“Agreement” means this Credit Agreement.

 

“Applicable Clawback Amount” means, with respect to any capital contribution to, or any sale or issuance of its Equity Interests by, the Borrower or Holdco, an amount equal to 20% of the Net Cash Proceeds thereof (other than Net Cash Proceeds (except Net Cash Proceeds from a Qualified IPO) used by the Borrower or a Restricted Subsidiary to make a Permitted Acquisition, Investment or Capital Expenditure in accordance with Section 2.05(b)(iv)(D)).

 

3

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Applicable ECF Percentage” means, at any time, 75%; provided that, so long as no Default has then occurred and is continuing, if the Total Leverage Ratio is (i) less than 6.00:1.00 but greater than or equal to 4.00:1.00 (as set forth in the Compliance Certificate delivered pursuant to Section 6.02(b) for the fiscal quarter or fiscal year, as applicable, then last ended), the “Applicable ECF Percentage” shall instead be 50%, and (ii) less than 4.00:1.00 (as set forth in the Compliance Certificate delivered pursuant to Section 6.02(b) for the fiscal quarter or fiscal year, as applicable, then last ended), the “Applicable ECF Percentage” shall instead be 25%.

 

“Applicable Rate” means a percentage per annum equal to:

 

(a)           with respect to the Revolving Loans and Swing Line Loans, (A) for Eurodollar Loans, 3.00% and (B) for Base Rate Loans, 2.00%;

 

(b)           with respect to the Tranche B-1 Term Loans:

 

(i)            for the period from and after the Closing Date to the third anniversary of the Closing Date, (A) for Eurodollar Loans, 3.00% and (B) for Base Rate Loans, 2.00%;

 

(ii)           from and after the third anniversary of the Closing Date to the fifth anniversary of the Closing Date, (A) for Eurodollar Loans, 3.50% and (B) for Base Rate Loans, 2.50%;

 

(iii)          from and after the fifth anniversary of the Closing Date to the sixth anniversary of the Closing Date (A) for Eurodollar Loans, 4.50% and (B) for Base Rate Loans, 3.50%; and

 

(iv)          from and after the sixth anniversary of the Closing Date, (A) for Eurodollar Loans, 5.50% and (B) for Base Rate Loans, 4.50%;

 

(c)           with respect to the Tranche B-2 Term Loans, (A) for Eurodollar Loans, 4.0% and (B) for Base Rate Loans, 3.0%; and

 

(d)           with respect to the Tranche B-3 Term Loans:

 

(i)            for the period from and after the Closing Date to the first anniversary of the Closing Date, (A) for Eurodollar Loans, 1.80% and (B) for Base Rate Loans, 0.80%;

 

(ii)           from and after the first anniversary of the Closing Date to the second anniversary of the Closing Date, (A) for Eurodollar Loans, 1.81% and (B) for Base Rate Loans, 0.81%;

 

(iii)          from and after the second anniversary of the Closing Date to the third anniversary of the Closing Date, (A) for Eurodollar Loans, 1.82% and (B) for Base Rate Loans, 0.82%;

 

4

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(iv)          from and after the third anniversary of the Closing Date to the fifth anniversary of the Closing Date (A) for Eurodollar Loans, 3.02% and (B) for Base Rate Loans, 2.02%;

 

(v)           from and after the fifth anniversary of the Closing Date to the sixth anniversary of the Closing Date (A) for Eurodollar Loans, 5.37% and (B) for Base Rate Loans, 4.37%; and

 

(vi)          from and after the sixth anniversary of the Closing Date, (A) for Eurodollar Loans, 7.69% and (B) for Base Rate Loans, 6.69%; and.

 

(e)         with respect to Letter of Credit fees, 3.00%; and

 

(f)          with respect to commitment fees, 0.50%.

 

“Appropriate Lender” means, at any time, (a) with respect to Loans of any Class, the Lenders of such Class, (b) with respect to Letters of Credit, (i) the relevant L/C Issuers and (ii) the Revolving Credit Lenders and (c) with respect to the Swing Line Facility, (i) the Swing Line Lender and (ii) if any Swing Line Loans are outstanding pursuant to Section 2.04(a), the Revolving Credit Lenders.

 

“Approved Assignee” means, with respect to any assignment of the rights, interests and obligations of a Revolving Credit Lender hereunder, a Person that is at the time of such assignment (a) a commercial bank organized or licensed under the laws of the United States or any state thereof having a combined capital and surplus in excess of $250,000,000, (b) a commercial bank organized under the laws of any other country that is a member of the Organization of Economic Cooperation and Development, or a political subdivision of any such country, having a combined capital and surplus in excess of $250,000,000 or (c) a finance company, insurance company or other financial institution or fund (whether a corporation, partnership trust or other entity) that is engaged in the making, purchasing or otherwise investing in commercial loans and having (i) a combined capital and surplus or shareholders’ equity of at least $250,000,000 or (ii) total assets in excess of $1,000,000,000, and, in all cases, a Person who has not been denied a license or found unsuitable by a Gaming Authority in any jurisdiction.

 

“Approved Bank” has the meaning specified in clause (b) of the definition of “Cash Equivalents.”

 

“Approved Fund” means any Fund that is administered, advised or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers, advises or manages a Lender.

 

“Assignees” has the meaning specified in Section 10.07(b).

 

“Assignment and Assumption” means an Assignment and Assumption substantially in the form of Exhibit E.

 

“Attorney Costs” means and includes all reasonable fees, expenses and disbursements of any law firm or other external legal counsel.

 

5

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Auto-Renewal Letter of Credit” has the meaning specified in Section 2.03(b)(iii).

 

“Availability” means, as of any date of determination, the amount by which the aggregate Revolving Credit Commitments exceeds the aggregate Revolving Credit Exposure of the Revolving Credit Lenders as of such date.

 

“Availability Period” means the period from (but excluding) the Closing Date to (but excluding) the earlier of the Maturity Date and the date of termination of the Revolving Credit Commitments.

 

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now and/or hereinafter in effect, or any successor thereto.

 

“Bankruptcy Court” has the meaning specified in the recitals hereto.

 

“Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 1/2 of 1% and (c) the Adjusted LIBO Rate for a Eurodollar Loan with a one-month Interest Period commencing on such day plus 1.0%.  For purposes of this definition, the Adjusted LIBO Rate shall be determined using the LIBO Rate as otherwise determined by the Administrative Agent in accordance with the definition of “LIBO Rate”, except that (x) if a given day is a Business Day, such determination shall be made on such day (rather than two Business Days prior to the commencement of an Interest Period) or (y) if a given day is not a Business Day, the LIBO Rate for such day shall be the rate determined by the Administrative Agent pursuant to preceding clause (x) for the most recent Business Day preceding such day.  Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Rate or the Adjusted LIBO Rate shall be effective as of the opening of business on the day of such change in the Prime Rate, the Federal Funds Rate or the Adjusted LIBO Rate, respectively.

 

“Base Rate Loan” means a Loan that bears interest based on the Base Rate.

 

“BlockerCos” means the collective reference to the entities identified on Schedule 1.01F hereto and their permitted corporate successors by operation of law and “BlockerCo” means any one of them.

 

“Board” means the Board of Governors of the Federal Reserve System of the United States of America.

 

“Bona Fide Business Purpose” means the acquisition, maintenance, operation or improvement of new or existing assets consistent with the line of business conducted by the Borrower and its Subsidiaries on the date hereof or any business reasonably related or ancillary thereto (including, without limitation, the development of real property), including, by way of illustration only, current Capital Expenditures, payment of operating costs then due and owing, payment of taxes and scheduled debt service then due and owing and payments due in connection with property development.

 

6

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Borrower Parties” means the collective reference to the Borrower and the Restricted Subsidiaries, and “Borrower Party” means any one of them.

 

“Borrower” has the meaning specified in the preamble hereto.

 

“Borrower/IP Holdco License Agreement” means that certain IP Holdco to PropCo License Agreement, dated as of the date hereof, among the Borrower and IP Holdco.

 

“Borrower Materials” has the meaning specified in Section 6.02.

 

“Borrowing” means a Revolving Credit Borrowing or a Swing Line Borrowing, as the context may require.

 

“Boulder LLC” means NP Boulder LLC, a Nevada limited liability company.

 

“Budget” has the meaning specified in Section 6.01(f).

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized or required by law to close in New York City; provided, however, that when used in connection with a Eurodollar Loan (including with respect to all notices and determinations in connection therewith and any payments of principal, interest or other amounts thereon), the term “Business Day” shall also exclude any day on which banks are not open for dealings in Dollar deposits in the London interbank market.

 

“Cage Cash” means all so-called “cage cash” that the Borrower and the Restricted Subsidiaries maintain within a Hotel/Casino Facility.

 

“Capital Expenditures” means, for any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities) by the Borrower and the Restricted Subsidiaries during such period that, in conformity with GAAP, are or are required to be included as additions during such period to property, plant or equipment reflected in the consolidated balance sheet of the Borrower and the Restricted Subsidiaries, provided that the term “Capital Expenditures” shall not include (i) expenditures made in connection with the replacement, substitution, restoration or repair of assets to the extent financed with (x) insurance proceeds paid on account of the loss of or damage to the assets being replaced, restored or repaired or (y) awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced, (ii) the purchase price of equipment that is purchased simultaneously with the trade-in of existing equipment to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of such equipment for the equipment being traded in at such time, (iii) the purchase of plant, property, equipment or software to the extent financed with proceeds of Dispositions that are not required to be applied to prepay Loans pursuant to Section 2.05, (iv) expenditures that are accounted for as capital expenditures by the Borrower or any Restricted Subsidiary and that actually are paid for by a Person other than the Borrower or any Restricted Subsidiary and for which neither the Borrower nor any Restricted Subsidiary has provided or is required to provide or incur, directly or indirectly, any consideration or obligation to such Person or any other Person (whether before, during or after such period), (v) the book value of any asset owned by the Borrower or any Restricted Subsidiary prior to or during such period to the extent that such book value is included as a capital expenditure during such period as a result of such 

 

7

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Person reusing or beginning to reuse such asset during such period without a corresponding expenditure actually having been made in such period; provided that (x) any expenditure necessary in order to permit such asset to be reused shall be included as a Capital Expenditure during the period in which such expenditure actually is made and (y) such book value shall have been included in Capital Expenditures when such asset was originally acquired, or (vi) expenditures that constitute Permitted Acquisitions.

 

“Capitalized Lease Indebtedness” means, on any date, in respect of any Capitalized 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.

 

“Capitalized Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases; provided that for all purposes hereunder the amount of obligations under any Capitalized Lease shall be the amount thereof accounted for as a liability in accordance with GAAP.

 

“Cash Collateral” has the meaning specified in Section 2.03(g).

 

“Cash Collateral Account” means a blocked account at DBTCA (or another commercial bank selected in compliance with Section 9.09) in the name of the Administrative Agent and under the sole dominion and control of the Administrative Agent, and otherwise established in a manner reasonably satisfactory to the Administrative Agent.

 

“Cash Collateralize” has the meaning specified in Section 2.03(g).

 

“Cash Equivalents” means any of the following types of Investments, to the extent owned by the Borrower or any Restricted Subsidiary:

 

(a)           readily marketable obligations issued or directly and fully guaranteed or insured by the government or any agency or instrumentality of the United States having average maturities of not more than 12 months from the date of acquisition thereof; provided that the full faith and credit of the United States is pledged in support thereof;

 

(b)           time deposits with, or insured certificates of deposit or bankers’ acceptances of, any commercial bank that (i) is a Lender as of the Closing Date or (ii)(A) is organized under the Laws of the United States, any state thereof or the District of Columbia or is the principal banking Subsidiary of a bank holding company organized under the Laws of the United States, any state thereof or the District of Columbia, and is a member of the Federal Reserve System, and (B) has combined capital and surplus of at least $500,000,000 (any such bank in the foregoing clauses (i) or (ii) being an “Approved Bank”), in each case with average maturities of not more than 12 months from the date of acquisition thereof;

 

(c)           investments in commercial paper maturing within 12 months from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody’s;

 

8

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(d)           fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with an Approved Bank; and

 

(e)           Investments in money market funds that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P or Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000.

 

“Cash Management Banks” means any Lender or any Affiliate of a Lender providing Cash Management Services to the Borrower or any Restricted Subsidiary.

 

“Cash Management Obligations” means obligations owed by the Borrower or any Restricted Subsidiary to any Cash Management Bank in respect of any Cash Management Services, except to the extent that such Cash Management Bank, on the one hand, and the Borrower or the applicable Restricted Subsidiary, on the other hand, agree in writing that any such obligations shall not be secured by any Lien on the Collateral and such Persons shall have delivered such writing to the Administrative Agent.

 

“Cash Management Services” means treasury, depository and/or cash management services or any automated clearing house transfer services, provision and operation of sweep accounts and zero balance accounts, provision of tax payment services and controlled disbursement services and performance of cash and coin delivery orders.

 

“Casualty Event” means any event that gives rise to the receipt by the Borrower or any Restricted Subsidiary of any insurance proceeds or condemnation awards in respect of any equipment, fixed assets or real property (including any improvements thereon) to replace or repair such equipment, fixed assets or real property.

 

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as subsequently amended.

 

“CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability Information System maintained by the U.S. Environmental Protection Agency.

 

“Change of Control” means:

 

(a)                                  prior to the occurrence of a Qualified IPO, (i) Holdco and VoteCo at any time shall cease to own directly one hundred percent (100%) of the Equity Interests of the Borrower, (ii)(A) Fertitta Holders shall fail to collectively beneficially own, directly or indirectly, Equity Interests in Holdco representing at least 21.5% of the aggregate equity value represented by the Equity Interests in Holdco on a fully diluted basis and (B) any person, entity or “group” (within the meaning of Section 13(d) of the Exchange Act) (other than Persons constituting Lenders as of the Closing Date and their respective Affiliates) shall own, directly or indirectly, beneficially or of record, Equity Interests in Holdco that represent a greater percentage of the aggregate equity value represented by the Equity Interests in Holdco on a fully diluted basis than the percentage beneficially owned, directly or

 

9

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

indirectly, by Fertitta Holders or (iii) the managers of VoteCo nominated or appointed by Fertitta Holders shall cease to constitute at least thirty seven and one-half percent (37.5%) of the voting power of the board of managers of VoteCo;

 

(b)                                 after the occurrence of a Qualified IPO, (i) Fertitta Holders shall fail to collectively beneficially own, directly or indirectly, Equity Interests in the Borrower representing at least 21.5% of the aggregate direct or indirect ordinary voting power and aggregate equity value represented by Equity Interests in the Borrower on a fully diluted basis and (ii) any person, entity or “group” (within the meaning of Section 13(d) of the Exchange Act) (other than Persons constituting Lenders as of the Closing Date and their respective Affiliates) shall own, directly or indirectly, beneficially or of record, Equity Interests in the Borrower representing a percentage of the aggregate direct or indirect ordinary voting power or economic interest on a fully diluted basis greater than the percentage of the ordinary voting power or economic interest in respect of which Fertitta Holders are collectively the direct or indirect beneficial owners; or

 

(c)                                  any “change of control” (or any comparable term) in any document pertaining to any Indebtedness of any Holding Company, the Borrower or any Restricted Subsidiary with an aggregate principal amount or liquidation preference in excess of the Threshold Amount.

 

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority, or (c) the making or issuance of any request, rules, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; provided however, that notwithstanding anything herein to the contrary,(i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof, and (ii) all requests, rules, guidelines, requirements and 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 “Change in Law” regardless of the date enacted, adopted, issued or implemented.

 

“Chapter 11 Cases” has the meaning specified in the recitals hereto.

 

“Charges” has the meaning specified in Section 10.10.

 

“Class” (a) when used with respect to Lenders, refers to whether such Lenders are Revolving Credit Lenders, Tranche B-1 Term Lenders, Tranche B-2 Term Lenders or Tranche B-3 Term Lenders, (b) when used with respect to Loans or a Borrowing, refers to whether such Loans, or the Loans comprising such Borrowing, are Revolving Credit Loans, Swing Line Loans, Tranche B-1 Term Loans, Tranche B-2 Term Loans or Tranche B-3 Term Loans and (c) when used with respect to any commitment, refers to a Revolving Credit Commitment.

 

10

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Closing Date” means June 17, 2011.

 

“Closing Date Prepayment” has the meaning specified in Section 2.05(b)(viii).

 

“Code” means the U.S. Internal Revenue Code of 1986 and rules and regulations related thereto.

 

“Collateral” means all the “Collateral” as defined in any Collateral Document and shall include the Mortgaged Properties.

 

“Collateral and Guarantee Requirement” means, at any time, subject to applicable Gaming Laws, the requirement that:

 

(a)           the Administrative Agent shall have received each Collateral Document required to be delivered (i) on the Closing Date pursuant to this Agreement, or (ii) at any other time pursuant to Section 6.11 at the time so required, duly executed by each Loan Party party thereto;

 

(b)           all Obligations shall have been unconditionally guaranteed by the Borrower (in the case of Obligations under clauses (y) and (z) of the first sentence of the definition thereof) and each Restricted Subsidiary of the Borrower;

 

(c)           the Obligations and the Guaranty shall have been secured by a first-priority security interest (subject only to non-consensual Permitted Liens) in (i) all the Equity Interests of the Borrower and (ii) all the Equity Interests in each other Person directly owned by the Borrower or any Guarantor (including, without limitation, all Equity Interests in each Restricted Subsidiary, OpCo Holdings, LandCo Holdings, GVR Holdco 3 and each other Unrestricted Subsidiary), but excluding, in the case of clause (ii), (x) to the extent prohibited by law or, with the consent of the Administrative Agent, such consent not to be unreasonably withheld, by the applicable management contract, Equity Interests in Native American Subsidiaries and (y) Equity Interests in any joint venture not constituting a Restricted Subsidiary if such security interest would violate any financing agreement of such joint venture (it being understood and agreed that in the event any such restriction exists, the Administrative Agent and the applicable Loan Party shall agree upon an alternative structure (such as an intermediate holding company constituting a Restricted Subsidiary) to effect the equivalent of an indirect pledge of such joint venture interest);

 

(d)           except to the extent otherwise permitted hereunder or under any Collateral Document, the Obligations and the Guaranty shall have been secured by a first-priority security interest (subject only to Permitted Liens) in, and mortgages on, substantially all tangible and intangible assets of the Borrower and each Restricted Subsidiary now or hereafter acquired (including accounts, inventory, equipment, investment property, contract rights, intellectual property, other general intangibles, deposit accounts, securities accounts, owned and leased real property and proceeds of the foregoing); provided that (x) security interests in real property shall be limited to the Mortgaged Properties as of the Closing Date and owned real property that is either (i) contiguous to any Mortgaged Property and the Administrative Agent reasonably determines that the

 

11

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

value of the applicable Mortgaged Property is materially increased by encumbering such contiguous property and such material increase in value outweighs the costs and expenses associated with encumbering such contiguous property or (ii) has a Fair Market Value in excess of $1,000,000 and Leasehold Interests of the Borrower or any Restricted Subsidiary under material ground leases and (y) security interests in the assets of Native American Subsidiaries, including the Native American Contracts and real property interests of such Native American Subsidiaries, shall, to the extent prohibited by law or, with the consent of the Administrative Agent, such consent not to be unreasonably withheld, by the applicable management contract, be excluded (provided, however, that security interests shall be granted in respect of all rights to receive (and all proceeds thereof) income, reimbursements, repayments, cash flows and any other distributions attributable to such assets);

 

(e)           each deposit account and securities account of the Borrower and each Restricted Subsidiary thereof (other than Excluded Accounts) shall be subject to a Control Agreement in favor of the Administrative Agent;

 

(f)            none of the Collateral shall be subject to any Liens other than Permitted Liens; and

 

(g)           the Administrative Agent shall have received (i) counterparts of a Mortgage with respect to each owned or leased property described in paragraph (d) above or required to be delivered pursuant to Section 6.11 (collectively, the “Mortgaged Properties”) duly executed and delivered by the record owner or lessee, as applicable, of such property, (ii) a policy or policies of title insurance issued by a nationally recognized title insurance company insuring the Lien of each such Mortgage as a valid first priority Lien on the property described therein, free of any other Liens except Permitted Liens, together with such endorsements, coinsurance and reinsurance as the Administrative Agent may reasonably request from time to time, (iii) such surveys, abstracts, appraisals, legal opinions and other documents as the Administrative Agent may reasonably request with respect to any such Mortgaged Property, (iv) flood certificates covering each Mortgaged Property in form and substance reasonably acceptable to the Administrative Agent, certified to the Administrative Agent in its capacity as such and certifying whether or not each such Mortgaged Property is located in a flood hazard zone by reference to the applicable FEMA map and (v) with respect to each such Mortgaged Property, either (A) a letter or other written evidence with respect to such Mortgaged Property from the appropriate Governmental Authorities concerning current status of compliance with applicable zoning and building laws, (B) an ALTA 3.1 zoning endorsement for the applicable Mortgage Policy or (C) a zoning report prepared by The Planning Zoning Resource Corporation indicating that such Mortgaged Property is in material compliance with applicable zoning and building laws.

 

The foregoing definition shall not require the creation or perfection of pledges of or security interests in, or the obtaining of title insurance or surveys with respect to, particular assets if and for so long as, in the sole and absolute discretion of the Administrative Agent after consultation with the Borrower (confirmed in writing by notice to the Borrower), the cost of creating or perfecting such pledges or security interests in such assets or obtaining title insurance

 

12

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

or surveys in respect of such assets shall be excessive in view of the benefits to be obtained by the Lenders therefrom.  The Administrative Agent may grant extensions of time for the perfection of security interests in or the obtaining of title insurance with respect to particular assets (including extensions beyond the Closing Date for the perfection of security interests in the assets of the Loan Parties on such date) where it determines in its sole and absolute discretion, in consultation with the Borrower, that perfection cannot be accomplished without undue effort or expense by the time or times at which it would otherwise be required by this Agreement or the Collateral Documents.

 

Notwithstanding the foregoing provisions of this definition or anything in this Agreement or any other Loan Document to the contrary, (a) Liens required to be granted from time to time pursuant to the Collateral and Guarantee Requirement shall be subject to exceptions and limitations set forth in the Collateral Documents to the extent appropriate and agreed between the Administrative Agent and the Borrower and (b) the Collateral shall not include Excluded Assets.

 

“Collateral Documents” means, collectively, the Security Agreement, the Pledge Agreement, the Shareholder Pledge Agreement, the Intellectual Property Security Agreements, the Mortgages, the Control Agreements, each of the mortgages, collateral assignments, Security Agreement Supplements, Pledge Agreement Supplements, security agreements, pledge agreements, control agreements, amendments to or reaffirmation of any of the foregoing or other similar agreements delivered to the Administrative Agent and the Lenders from time to time pursuant to Section 4.01(a)(iii), Section 6.11 or 6.13, the Guaranty, each Guaranty Supplement and each of the other agreements, instruments or documents, and any amendments to or reaffirmations of any of the foregoing, that creates or purports to create or perfect a Lien or Guarantee in favor of the Administrative Agent for the benefit of the Secured Parties.

 

“Committed Loan Notice” means a notice of (a) a Revolving Credit Borrowing, (b) a conversion of Loans from one Type to the other, or (c) a continuation of Eurodollar Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A.

 

“Compensation Period” has the meaning specified in Section 2.12(c)(ii).

 

“Compliance Certificate” means a certificate substantially in the form of Exhibit D.

 

“Confirmation Order” means the confirmation order issued by the Bankruptcy Court in relation to the Chapter 11 Cases confirming the Plan of Reorganization.

 

“Consolidated Cash Interest Expense” means, for any period, the cash interest expense, net of cash interest income, of the Borrower and the Restricted Subsidiaries for such period with respect to all outstanding Indebtedness of the Borrower and the Restricted Subsidiaries; provided that (a) for purposes of Sections 2.14, 4.02(d), 6.14(a), 7.02(i)(H), 7.02(n), 7.03(e) and 7.11, there shall be included in determining Consolidated Cash Interest Expense for any period the cash interest expense (or income) of any Acquired Entity or Business acquired during such period and of any Converted Restricted Subsidiary converted during such period, in each case based on the cash interest expense (or income) relating to any Indebtedness

 

13

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

incurred or assumed as part of an acquisition of an Acquired Entity or Business or as part of the conversion of a Converted Restricted Subsidiary for such period (including the portion thereof occurring prior to such acquisition or conversion) assuming any Indebtedness incurred or repaid in connection with any such acquisition had been incurred or repaid on the first day of such period and (b) for purposes of Sections 2.14, 4.02(d), 6.14(a), 7.02(i)(H), 7.02(n), 7.03(e) and 7.11, there shall be excluded from determining Consolidated Cash Interest Expense for any period the cash interest expense (or income) of any Sold Entity or Business disposed of or re-designated during such period, based on the cash interest expense (or income) relating to any Indebtedness relieved or repaid in connection with any such disposition of such Sold Entity or Business for such period (including the portion thereof occurring prior to such disposal) assuming such debt relieved or repaid in connection with such disposition has been relieved or repaid on the first day of such period; provided that for purposes of determining compliance with Section 7.11(b) at any time a Default Quarter is included in the Test Period then most recently ended prior to a date of determination, the aggregate principal amount of the Loans repaid pursuant to Section 2.05(b)(iv) with the proceeds of a Permitted Equity Issuance consummated in reliance on Section 8.05 during such Default Quarter shall be deemed to be outstanding during such Test Period and any cash interest expense of the Borrower and its Restricted Subsidiaries for such Test Period in respect of such “outstanding” Loans shall be included as “Consolidated Cash Interest Expense” during such Test Period (as if such “outstanding” Loans bore interest at the average rate applicable to Term Loans outstanding during such Test Period).  Notwithstanding anything to the contrary contained herein, for purposes of determining Consolidated Cash Interest Expense for any period ending prior to the first anniversary of the Closing Date, Consolidated Cash Interest Expense shall be an amount equal to actual Consolidated Cash Interest Expense from the Closing Date through the date of determination multiplied by a fraction the numerator of which is 365 and the denominator of which is the number of days from the Closing Date through the date of determination.

 

“Consolidated EBITDA” means, for any period, the Consolidated Net Income for such period:

 

(a)           plus, without duplication and solely to the extent already deducted (and not added back) in arriving at such Consolidated Net Income, the sum of the following amounts for such period:

 

(i)            Consolidated Interest Expense;

 

(ii)           income tax expense (if any);

 

(iii)          depreciation and amortization;

 

(iv)          non-cash impairment losses;

 

(v)           non-operating, non-recurring losses on the sale of assets;

 

(vi)          losses attributable to the early extinguishment of Indebtedness;

 

(vii)         losses attributable to hedging obligations or other derivative instruments; and

 

14

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(viii)        expenses actually reimbursed in cash by an Unrestricted Subsidiary pursuant to a Subsidiary Cost Allocation Agreement;

 

(b)          minus, without duplication and solely to the extent included in arriving at such Consolidated Net Income, the sum of the following amounts for such period:

 

(i)            non-operating, non-recurring gains on the sale of assets;

 

(ii)           gains attributable to the early extinguishment of Indebtedness;

 

(iii)          gains attributable to hedging obligations or other derivative instruments; and

 

(iv)          distributions made by the Borrower to the Holding Companies during such period pursuant to Sections 7.06(f) and (g);

 

in each case, as determined on a consolidated basis for the Borrower and the Restricted Subsidiaries in accordance with GAAP; provided that, without duplication:

 

(A)          the following additional items shall be added to Consolidated EBITDA for such period (solely to the extent already deducted (and not added back) in arriving at such Consolidated Net Income): (1) Pre-Opening Expenses, (2) cash restructuring charges or reserves (including restructuring costs related to acquisitions and to closure/consolidation of facilities) incurred after the Closing Date and unusual or non-recurring charges (other than Pre-Opening Expenses), including severance, relocation costs and curtailments or modifications to pension and post-retirement employee benefit plans; provided, that the aggregate amount added-back pursuant to this clause (2) with respect to any period (including with respect to any Acquired EBITDA) shall not exceed 2.5% of Consolidated EBITDA for such period, (3) non-cash charges in respect of equity compensation, (4) other non-operating non-recurring Non-Cash Charges, (5) the Base Management Fee (as defined in the Management Agreement) for such period, (6) expenses incurred by the Borrower and the Restricted Subsidiaries after the Closing Date and during such period in respect of the Restructuring Transactions, so long as the aggregate amount of all such expenses added back pursuant to this clause (6) for all periods does not exceed $5,000,000 and (7) payments made by the Borrower to Holdco pursuant to the Holding Company Tax Sharing Agreement (net of Subsidiary Tax Sharing Payments);

 

(B)           the following additional item shall be added to Consolidated EBITDA for such period: the aggregate amount of distributions received by the Borrower and the Restricted Subsidiaries from joint ventures and Unrestricted Subsidiaries during such period (other than, for the avoidance of doubt, Subsidiary Tax Sharing Payments and payments made by Unrestricted Subsidiaries pursuant to the Subsidiary Cost Allocation Agreements),

 

(C)           the following additional item shall be deducted from Consolidated EBITDA for such period (solely to the extent included in arriving at such

 

15

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Consolidated Net Income): other extraordinary non-cash gains (excluding any non-cash gain to the extent it represents the reversal of an accrual or reserve for a potential cash item that reduced Consolidated EBITDA in any prior period);

 

(D)          there shall be included in determining Consolidated EBITDA for any period, (1) the Acquired EBITDA of any Person, property, business or asset acquired by the Borrower or any Restricted Subsidiary during such period (but not the Acquired EBITDA of any related Person, property, business or assets to the extent not so acquired), to the extent not subsequently sold, transferred or otherwise disposed by the Borrower or such Restricted Subsidiary (each such Person, property, business or asset acquired and not subsequently so disposed of, an “Acquired Entity or Business”), and the Acquired EBITDA of any Unrestricted Subsidiary that is converted into a Restricted Subsidiary during such period (each, a “Converted Restricted Subsidiary”), in each case based on the actual Acquired EBITDA of such Acquired Entity or Business or Converted Restricted Subsidiary for such period (including the portion thereof occurring prior to such acquisition or conversion) and (2) for the purposes of Sections 2.14, 4.02(d), 6.14(a), 7.02(i)(H), 7.02(n), 7.03(e) and 7.11, an adjustment in respect of each Acquired Entity or Business or Converted Restricted Subsidiary equal to the amount of the Pro Forma Adjustment with respect to such Acquired Entity or Business or Converted Restricted Subsidiary for such period (including the portion thereof occurring prior to such acquisition or conversion) as specified in a certificate executed by a Responsible Officer of the Borrower and delivered to the Lenders and the Administrative Agent;

 

(E)           there shall be excluded in determining Consolidated EBITDA for any period the Disposed EBITDA of any Person, property, business or asset sold, transferred or otherwise disposed of by the Borrower or any Restricted Subsidiary (including for such purpose, any Restricted Subsidiary re-designated as an Unrestricted Subsidiary pursuant to Section 6.14) during such period (each such Person, property, business or asset so sold, disposed of or re-designated, a “Sold Entity or Business”), based on the actual Disposed EBITDA of such Sold Entity or Business for such period (including the portion thereof occurring prior to such sale, transfer, disposition or re-designation, but excluding any shared expenses allocated to such Sold Entity or Business that will continue to be incurred by the Borrower and the Restricted Subsidiaries following any such disposition); and

 

(F)           there shall be included in determining Consolidated EBITDA for any period the New Property EBITDA for such period of any New Property, to the extent not subsequently sold, transferred or otherwise disposed of by the Borrower or the Restricted Subsidiary that owns such New Property.

 

Notwithstanding anything to the contrary contained herein, for purposes of determining Consolidated EBITDA for any period ending prior to the first anniversary of the Closing Date, Consolidated EBITDA shall be an amount equal to actual Consolidated EBITDA from the Closing Date through the date of determination multiplied by a fraction the numerator of which

 

16

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

is 365 and the denominator of which is the number of days from the Closing Date through the date of determination.

 

“Consolidated Interest Expense” means, for any period, the interest expense, net of interest income, of the Borrower and the Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” means, for any period, the net income (loss) of the Borrower and the Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP (after deduction of the Base Management Fee (as defined in the Management Agreement) for such period but prior to any deduction of the Incentive Management Fee (as defined in the Management Agreement) for such period), excluding, without duplication, the cumulative effect of a change in accounting principles during such period to the extent included in the determination of Consolidated Net Income.  There shall be excluded from Consolidated Net Income for any period the purchase accounting effects of adjustments to property and equipment, software and other intangible assets and deferred revenue (including the effects of such adjustments pushed down to the Borrower and the Restricted Subsidiaries) as a result of any Permitted Acquisitions, or the amortization or write-off of any amounts thereof.  There shall be excluded from Consolidated Net Income the income (or loss) of any Person that is not a Restricted Subsidiary (including joint venture investments recorded using the equity method and dividends and distributions paid to the Borrower or a Restricted Subsidiary during such period).  For the avoidance of doubt, the calculation of Consolidated Net Income for the purposes hereunder shall include deductions (without duplication) for any and all costs and expenses of IP Holdco to the extent actually incurred (or reimbursed) by the Borrower and/or any Restricted Subsidiary.

 

“Consolidated Total Debt” means, as of any date of determination, the aggregate principal amount of Indebtedness of the Borrower and the Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP (but excluding the effects of any discounting of Indebtedness resulting from the application of purchase accounting in connection with any Permitted Acquisition), consisting of Indebtedness for borrowed money, obligations in respect of Capitalized Leases (but excluding, for the avoidance of doubt, amounts payable under operating leases), debt obligations evidenced by promissory notes or similar instruments, the maximum amount (after giving effect to any prior drawings or reductions which may have been reimbursed) of all letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds, performance bonds and similar instruments issued or created by or for the account of such Persons, all obligations to pay the deferred purchase price of property or services (other than (i) trade accounts payable in the ordinary course of business and (ii) any earn-out obligation until such obligation becomes a liability on the balance sheet in accordance with GAAP) and, without duplication, all Guarantees (other than the LandCo Support Agreement) with respect to outstanding Indebtedness of the types described above; provided that for purposes of determining compliance with Section 7.11(a) at any time a Default Quarter is included in the Test Period then most recently ended prior to a date of determination, the aggregate principal amount of the Loans repaid pursuant to Section 2.05(b)(iv) with the proceeds of a Permitted Equity Issuance consummated in reliance on Section 8.05 during such Default Quarter shall be deemed to be outstanding and included as “Consolidated Total Debt” at such time.

 

17

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Consolidated Working Capital” means, at any date, the excess of (a) the sum of all amounts (other than cash and Cash Equivalents) that would, in conformity with GAAP, be set forth opposite the caption “total current assets” (or any like caption) on a consolidated balance sheet of the Borrower and the Restricted Subsidiaries at such date over (b) the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption “total current liabilities” (or any like caption) on a consolidated balance sheet of the Borrower and the Restricted Subsidiaries on such date, including deferred revenue but excluding, without duplication, (i) the current portion of any Funded Debt, (ii) all Indebtedness consisting of Loans and L/C Obligations to the extent otherwise included therein, (iii) the current portion of interest and (iv) the current portion of current and deferred income taxes, if any.

 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

“Control”, “Controlled” and “Controlling” have the meanings specified in the definition of “Affiliate.”

 

“Control Agreement” means a tri-party deposit account or securities account control agreement by and among the applicable Loan Party, the Administrative Agent and the depository or securities intermediary, and each in form and substance reasonably satisfactory to the Administrative Agent and in any event providing to the Administrative Agent “control” of such deposit account or securities account within the meaning of Articles 8 and 9 of the UCC.

 

“Converted Restricted Subsidiary” has the meaning specified in the definition of “Consolidated EBITDA.”

 

“Core Property” means, collectively, (a) the hotel, resort and casino properties commonly known as Palace Station, Boulder Station, Sunset Station and Red Rock Casino, Resort and Spa and (b) each casino or hotel property hereafter owned or operated by the Borrower or a Restricted Subsidiary (but not any such property owned by an Unrestricted Subsidiary) whose individual Consolidated EBITDA (determined in a manner acceptable to the Administrative Agent) for the then most recently ended twelve-month period for which financial statements are then available exceeds $10,000,000, excluding any real property or improvements that have been released from the Liens of the Administrative Agent in accordance with the terms of the Loan Documents.

 

“Credit Extension” means each of the following:  (a) a Borrowing and (b) an L/C Credit Extension.

 

“Cumulative Excess Cash Flow” means, at any time, an amount equal to (a)(i) Excess Cash Flow (which may be less than zero) for each fiscal year completed since the Closing Date with respect to which the related financial statements and Compliance Certificate have been delivered pursuant to Sections 6.01(a) and 6.02(b), respectively (commencing with the fiscal year ended December 31, 2011 for the fiscal quarters ending September 30, 2011 through December 31, 2011), minus (ii) the aggregate principal amount of all Term Loans voluntarily repaid pursuant to Section 2.05(a) which reduced the amount of the mandatory repayment of

 

18

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Term Loans pursuant to Section 2.05(b)(i)(B) with respect to such fiscal year by operation of clause (B)(2) thereof minus (iii) the aggregate amount by which the mandatory repayments of Term Loans pursuant to Section 2.05(b)(i)(B) with respect to such fiscal year were reduced by operation of the first proviso thereto plus (b)(i) Excess Cash Flow (which may be less than zero) for each fiscal quarter completed since the Closing Date with respect to which the financial statements and Compliance Certificate for the related fiscal year have not been so delivered (commencing with the fiscal quarter ended September 30, 2011) minus (ii) the aggregate principal amount of all Term Loans voluntarily repaid pursuant to Section 2.05(a) which reduced the amount of the mandatory repayments of Term Loans pursuant to Section 2.05(b)(i)(A) with respect to each such fiscal quarter by operation of clause (B) thereof minus (iii) the aggregate amount by which the mandatory repayments of Term Loans pursuant to Section 2.05(b)(i)(A) with respect to each such fiscal quarter were reduced by operation of the first proviso thereto.

 

“Cure Note Indebtedness” has the meaning specified in Section 7.03(u).

 

“DBCI” means Deutsche Bank AG Cayman Islands Branch and any successor thereto by merger, consolidation or otherwise.

 

“DBNY” means Deutsche Bank AG New York Branch and any successor thereto by merger, consolidation or otherwise.

 

“DBTCA” means Deutsche Bank Trust Company Americas and any successor thereto by merger, consolidation or otherwise.

 

“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 debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

 

“Debtors” has the meaning specified in the recitals hereto.

 

“Declined Prepayment Amount” has the meaning specified in Section 2.05(b)(x).

 

“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

 

“Default Quarter” has the meaning specified in Section 8.05.

 

“Default Rate” means an interest rate equal to (a) the Base Rate plus (b) the Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2.0% per annum; provided that with respect to a Eurodollar Loan or any Fixed Rate Tranche B-3 Term Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2.0% per annum, in each case, to the fullest extent permitted by applicable Laws.

 

19

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Revolving Credit Loans, participations in L/C Obligations or participations in Swing Line Loans required to be funded by it hereunder within one (1) Business Day of the date required to be funded by it hereunder, unless the subject of a good faith dispute or subsequently cured, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one (1) Business Day of the date when due, unless the subject of a good faith dispute or subsequently cured, (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding or takeover by a regulatory authority, or (d) has notified the Borrower, the Administrative Agent, an L/C Issuer, the Swing Line Lender or any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other agreements in which it commits to extend credit, provided that, for purposes of the L/C Back-Stop Arrangements, the term “Defaulting Lender” shall include (i) any Lender with an Affiliate that (x) Controls (within the meaning specified in the definition of “Affiliate”) such Lender and (y) has been deemed insolvent or become subject to a bankruptcy proceeding or takeover by a regulatory authority, (ii) any Lender that previously constituted a “Defaulting Lender” under this Agreement, unless such Lender has ceased to constitute a “Defaulting Lender” for a period of at least 90 consecutive days, (iii) any Lender which the Administrative Agent, an L/C Issuer or the Swing Line Lender believes in good faith to have defaulted under two or more other credit facilities to which such Lender is a party, (iv) any Lender that has, for three or more Business Days from receipt, failed to confirm in writing to the Administrative Agent, in response to a written request of the Administrative Agent, that it will comply with its funding obligations hereunder and (v) any Lender that has failed to fund any portion of the Revolving Credit Loans, participations in L/C Obligations or participations in Swing Line Loans within one (1) Business Day of the date DBCI (in its capacity as a Lender) has funded its portion thereof, unless such Lender has cured such failure and remained compliant for a period of at least 90 consecutive days.  The Administrative Agent shall use commercially reasonable efforts to promptly notify the Borrower of any determination that a Lender shall have become a “Defaulting Lender” hereunder; provided that the failure of the Administrative Agent to give any such notice shall not limit or otherwise affect the obligations of the Borrower or any Lender (including any Defaulting Lender) under this Agreement and the other Loan Documents.

 

“Disclosure Statement” means that certain “Disclosure Statement” in respect of Old OpCo and certain of its affiliates and the Plan of Reorganization described therein in the form approved by the Bankruptcy Court on July 29, 2010 (including all exhibits attached thereto).

 

“Disposed EBITDA” means, with respect to any Sold Entity or Business for any period, the amount for such period of Consolidated EBITDA of such Sold Entity or Business (determined as if references to the Borrower and the Restricted Subsidiaries in the definition of “Consolidated EBITDA” (and in the component financial definitions used therein) were references to such Sold Entity or Business and its Subsidiaries and without regard to clauses (A)(5) and (A)(6) of such definition or the last sentence of the definition of “Consolidated Net Income”), all as determined on a consolidated basis for such Sold Entity or Business in accordance with GAAP.

 

20

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction and any sale of Equity Interests) 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; provided that “Disposition” and “Dispose” shall not be deemed to include any issuance by any of the Holding Companies or (in connection with a Qualified IPO) the Borrower of any of its respective Equity Interests to another Person.

 

“Disqualified Equity Interests” means any Equity Interest that, by its terms (or by the terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Revolving Credit Commitments), (b) is redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part, (c) provides for the scheduled payments of dividends in cash, or (d) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety-one (91) days after the eighth anniversary of the Closing Date.

 

“Disqualified Institution” has the meaning specified in Schedule 1.01A.

 

“Dollar” and “$” mean lawful money of the United States.

 

“Domestic Subsidiary” means any Subsidiary that is organized under the Laws of the United States, any state thereof or the District of Columbia.

 

“Eligible Assignee” means any Assignee permitted by and consented to in accordance with Section 10.07(b).

 

“Environmental Laws” means any and all Federal, state, and local statutes, Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution, the protection of the environment, natural resources, or, to the extent relating to exposure to Hazardous Materials, human health or to the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual

 

21

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law.

 

“Equity Interests” means, with respect to any Person, all of the shares, interests, rights, participations or other equivalents (however designated) of capital stock of, or membership interests, member’s interests, limited liability company interests or other economic, ownership or profit interests or units in, such Person and all of the warrants, options or other rights for the purchase, acquisition or exchange from such Person of any of the foregoing (including through convertible securities).

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) that is under common control with any Loan Party within the meaning of Section 414 of the Code or Section 4001 of ERISA.

 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) incurrence of a liability with respect to a withdrawal by any Loan Party or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) incurrence of a liability with respect to a complete or partial withdrawal by any Loan Party or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate a Pension Plan, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (f) the imposition of any liability under Title IV of ERISA, other than for funding contributions in the ordinary course or PBGC premiums due but not delinquent under Section 4007 of ERISA, upon any Loan Party or any ERISA Affiliate; or (g) the failure of any Pension Plan to satisfy the minimum funding standard required for any plan year or part thereof under Section 412 of the Code or Section 302 of ERISA or a waiver of such standard or extension of any amortization period is sought or granted under Section 412 of the Code or Section 303 or 304 of ERISA.

 

“Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.

 

“Event of Default” has the meaning specified in Section 8.01.

 

22

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Excess Cash Flow” means, for any period, an amount equal to the excess of:

 

(a)           the sum, without duplication, of:

 

(i)            Consolidated Net Income for such period,

 

(ii)           an amount equal to the amount of all Non-Cash Charges (including depreciation and amortization and non-cash losses on Dispositions) incurred during such period to the extent deducted in arriving at such Consolidated Net Income,

 

(iii)          decreases in Consolidated Working Capital, base stock and long-term account receivables for such period (other than any such decreases arising from acquisitions by the Borrower and the Restricted Subsidiaries during such period),

 

(iv)          the amount of income tax expense deducted in determining Consolidated Net Income for such period (if any),

 

(v)           the excess, if any, of (A) the aggregate amount of Subsidiary Tax Sharing Payments received by the Borrower during such period over (B) the sum of (1) the amount of cash income taxes (if any) paid by the Borrower and its Restricted Subsidiaries in such period plus (2) the aggregate amount of payments by the Borrower to Holdco pursuant to the Holding Company Tax Sharing Agreement during such period (other than payments in respect of Subsidiary Tax Distribution Shortfalls),

 

(vi)          the amount of cash payments received by the Borrower from Unrestricted Subsidiaries pursuant to the Subsidiary Cost Allocation Agreements during such period with respect to expenses deducted in the determination of Consolidated Net Income, and

 

(vii)         the aggregate amount of distributions received by the Borrower and its Restricted Subsidiaries from joint ventures and Unrestricted Subsidiaries during such period (other than Subsidiary Tax Sharing Payments and payments pursuant to the Subsidiary Cost Allocation Agreements),

 

less

 

(b)           the sum, without duplication, of:

 

(i)            an amount equal to the amount of all non-cash credits included in arriving at such Consolidated Net Income,

 

(ii)           the amount of Capital Expenditures made in cash or accrued during such period pursuant to Section 7.16, except to the extent that (A) such Capital Expenditures were financed with the proceeds of asset sales, sales or issuances of Equity Interests, capital contributions or Indebtedness (other than the Revolving

 

23

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Credit Facility), in each case other than to the extent such proceeds were included in arriving at such Consolidated Net Income, (B) such cash Capital Expenditures were accrued during a prior period or (C) such accrued Capital Expenditures exceed $15,000,000,

 

(iii)          the aggregate amount of all principal payments of Indebtedness of the Borrower and the Restricted Subsidiaries (including (A) the principal component of payments in respect of Capitalized Leases and (B) the amount of any mandatory prepayment of Term Loans pursuant to Section 2.05(b)(ii) to the extent required due to a Disposition that resulted in an increase to Consolidated Net Income and not in excess of the amount of such increase) made during such period (other than (w) prepayments in respect of any revolving credit facility (including the Revolving Credit Facility) to the extent there is not an equivalent permanent reduction in commitments thereunder, (x) optional prepayments of the Term Loans,  (y) mandatory prepayments of the Term Loans pursuant to Section 2.05(b)(i) and (z) Installment Payments pursuant to Section 2.07), in each case except to the extent financed with the proceeds of asset sales (except as provided in subclause (B) of this paragraph (iii)), sales or issuances of Equity Interests, capital contributions, insurance or Indebtedness (other than the Revolving Credit Facility), in each case other than to the extent such proceeds were included in arriving at such Consolidated Net Income,

 

(iv)          an amount equal to the aggregate net non-cash gain on Dispositions by the Borrower and the Restricted Subsidiaries during such period to the extent included in arriving at such Consolidated Net Income,

 

(v)           increases in Consolidated Working Capital, base stock and long-term account receivables for such period (other than any such increases arising from acquisitions by the Borrower and the Restricted Subsidiaries during such period),

 

(vi)          the excess, if any, of (A) the sum of (1) the amount of cash taxes (if any) actually paid by the Borrower and its Restricted Subsidiaries during such period plus (2) the aggregate amount of payments by the Borrower to Holdco pursuant to the Holding Company Tax Sharing Agreement during such period (other than payments in respect of Subsidiary Tax Distribution Shortfalls) over (B) the aggregate amount of Subsidiary Tax Sharing Payments received by the Borrower during such period,

 

(vii)         the aggregate amount of any premium, make-whole or penalty payments actually paid in cash by the Borrower and the Restricted Subsidiaries during such period that are required to be made in connection with any prepayment of Indebtedness (other than any Indebtedness that is unsecured or subordinated (in “right of payment” or on a “lien priority” basis) to the Obligations),

 

24

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(viii)        the amount of the Incentive Management Fee (as defined in the Management Agreement) actually paid in cash during such period,

 

(ix)           the amount of distributions made by the Borrower to the Holding Companies pursuant to Sections 7.06(f) and (g), and

 

(x)            any Net Cash Proceeds for which the Borrower provides notice of its intent to reinvest, use or apply such Net Cash Proceeds in accordance with Section 2.05(b)(ii)(B) or (C) or Section 2.05(b)(iv)(D), in each case solely to the extent such Net Cash Proceeds result in an increase to Consolidated Net Income and not in excess of the amount of such increase.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Exchange Securities” has the meaning specified in Section 10.26(a).

 

“Excluded Accounts” means (a) payroll accounts so long as such payroll accounts are zero balance deposit accounts, (b) withholding tax and fiduciary accounts, (c) other deposit accounts of the Borrower and the Restricted Subsidiaries with individual average daily balances of less than $200,000 and an aggregate balance of less than $1,000,000 and (d) securities accounts of the Borrower and the Restricted Subsidiaries with individual average daily balances of less than $200,000 and an aggregate balance of less than $1,000,000.

 

“Excluded Assets” means, collectively, the Excluded Assets (as defined in the Security Agreement) (excluding the assets set forth in clause (c) of the definition of “General Excluded Assets” therein) and the Excluded Assets (as defined in the Pledge Agreement).

 

“Excluded Taxes” has the meaning specified in Section 3.01(a).

 

“Existing Letters of Credit” has the meaning specified in Section 2.03(a)(i).

 

“Extension Date” means the date occurring on (i) the fifth anniversary of the Closing Date and (ii) to the extent the Maturity Date is extended pursuant to Section 2.14 on the fifth anniversary of the Closing Date, the sixth anniversary of the Closing Date.

 

“Extension Request” has the meaning specified in Section 2.14.

 

“Facility” means the Term Loan Facility, the Revolving Credit Facility, the Swing Line Sublimit or the Letter of Credit Sublimit, as the context may require.

 

“Fair Market Value” means, with respect to any asset or liability, the fair market value of such asset or liability as determined by the Borrower in good faith; provided that if the fair market value is equal to or exceeds $10,000,000, such determination shall be approved by the board of managers of the Borrower.

 

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates (rounded upwards, if necessary, to the next 1/100 of 1%) on overnight Federal funds transactions with members of the Federal Reserve System arranged by

 

25

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to JPMCB on such day on such transactions as determined by the Administrative Agent.

 

“Fee Letter” means the Agency Fee Letter dated as of the date hereof, between the Borrower and the Administrative Agent.

 

“Fertitta Brothers” means Frank J. Fertitta III and Lorenzo J. Fertitta.

 

“Fertitta Entertainment” means Fertitta Entertainment LLC, a Delaware limited liability company.

 

“Fertitta Family Entity” means any trust or entity one hundred percent (100%) owned and Controlled by or established for the sole benefit of, or the estate of, any of Frank J. Fertitta III or Lorenzo J. Fertitta or their spouses or lineal descendants (including, without limitation, adopted children and their lineal descendants).

 

“Fertitta Holder” means (a) Frank J. Fertitta III or Lorenzo J. Fertitta or any of their spouses or lineal descendants (including, without limitation, adopted children and their lineal descendants) or (b) a Fertitta Family Entity.

 

“FF&E” means all furniture, furnishings, fixtures, equipment and all other items of tangible personal property customarily used primarily in connection with the operation of the Mortgaged Properties.

 

“Fixed Rate Conversion Effective Date” means the date specified as the “Fixed Rate Conversion Effective Date” in a Fixed Rate Conversion Effective Date Notice.

 

“Fixed Rate Conversion Effective Date Notice” has the meaning specified in Section 2.08(b)(i).

 

“Fixed Rate Conversion Notice” has the meaning specified in Section 2.08(b)(i).

 

“Fixed Rate Determination Date” means the third Business Day from and after the Closing Date.

 

“Fixed Rate Tranche B-3 Term Loans” has the meaning specified in Section 2.08(b)(i).

 

“Foreign Lender” has the meaning specified in Section 10.15(a)(i).

 

“Foreign Subsidiary” of any Person means any Subsidiary of such Person that is not a Domestic Subsidiary.

 

26

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course.

 

“Funded Debt” means all Indebtedness of the Borrower and the Restricted Subsidiaries for borrowed money that matures more than one year from the date of its creation or matures within one year from such date that is renewable or extendable, at the option of such Person, to a date more than one year from such date or arises under a revolving credit or similar agreement that obligates the lender or lenders to extend credit during a period of more than one year from such date, including Indebtedness in respect of the Loans.

 

“GAAP” means generally accepted accounting principles in the United States of America, as in effect from time to time; provided, however, that if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the Closing Date in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

 

“Gaming” or “gaming” has the meaning ascribed to such term in Nevada Revised Statutes Section 463.0153.

 

“Gaming Authority” means any applicable governmental, regulatory or administrative state or local agency, authority, board, bureau, commission, department or instrumentality of any nature whatsoever involved in the supervision or regulation of casinos, gaming and gaming activities, including, without limitation, in the State of Nevada, the Nevada Gaming Commission, the Nevada State Gaming Control Board, and any of their respective successors or replacements.

 

“Gaming Law” means all Laws pursuant to which a Gaming Authority possesses licensing, permit or regulatory authority over casinos, gaming and gaming activities conducted within its jurisdiction, or the ownership of an entity engaged therein.

 

“Gaming Permits” means, collectively, every license, permit, approval, registration, finding of suitability, waiver, exemption or other authorization required to own, operate and otherwise conduct non-restricted gaming operations granted or issued by any Gaming Authority and any other applicable Governmental Authorities.

 

“Governmental Approvals” means all permits, licenses, consents, approvals, declarations, concessions, orders, filings, notices, findings of suitability, entitlements, waivers, variances, certificates and other authorizations granted or issued by any agency(ies) of the City of Las Vegas, Nevada, the City of Henderson, Nevada, Clark County, Nevada, the State of Nevada and the United States necessary for the operation of the Mortgaged Properties (including, without limitation, as required under any Gaming Laws).

 

27

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative tribunal, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including, without limitation, all Gaming Authorities.

 

“Granting Lender” has the meaning specified in Section 10.07(h).

 

“Ground Lease Properties” means, collectively, each Individual Property of which the Borrower or a Restricted Subsidiary is a tenant under a Ground Lease.

 

“Ground Leases” has the meaning provided in the Mortgages, collectively.

 

“Guarantee” means, as to any Person, without duplication, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other monetary obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other monetary obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance of such Indebtedness or other monetary obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other monetary obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other monetary obligation of any other Person, whether or not such Indebtedness or other monetary obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business, or customary and reasonable indemnity obligations entered into in connection with any acquisition or Disposition of assets permitted under this Agreement (other than such obligations with respect to Indebtedness).  The term “Guarantee” as a verb has a corresponding meaning.

 

“Guarantor” means each Restricted Subsidiary.

 

“Guaranty” means, collectively, (a) the Guaranty Agreement made by each Restricted Subsidiary and the Borrower in favor of the Administrative Agent on behalf of the Secured Parties, substantially in the form of Exhibit F and (b) each other guaranty and guaranty supplement delivered pursuant to Section 6.11.

 

“Guaranty Supplement” has the meaning provided in the Guaranty.

 

“GVR” means Station GVR Acquisition, LLC, a Nevada limited liability company.

 

28

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“GVR Acquisition” the purchase, acquisition and assumption by GVR of certain of the assets and liabilities of GVR Seller pursuant to the GVR Acquisition Agreement and Sections 363 and 365 of the Bankruptcy Code as part of a pre-arranged Chapter 11 plan of reorganization for the GVR Seller.

 

“GVR Acquisition Consummation Date” means the date of the consummation of the GVR Acquisition.

 

“GVR Acquisition Agreement” means that certain Asset Purchase Agreement, dated as of March 9, 2011, between GVR and the GVR Seller, as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms.

 

“GVR Cost Allocation Agreement” means that certain Cost Allocation Agreement, dated as of the GVR Acquisition Consummation Date, among the Borrower, GVR Holdco 1, and GVR Holdco 1’s Subsidiaries party thereto from time to time.

 

“GVR Credit Agreement” means (a) that certain First Lien Credit Agreement, dated as of the GVR Acquisition Consummation Date, among GVR, GVR Holdco 1, the lenders party thereto and Jefferies Finance LLC, as administrative agent, (b) that certain Second Lien Credit Agreement, dated as of the GVR Acquisition Consummation Date, among GVR, GVR Holdco 1, the lenders party thereto and Jefferies Finance LLC, as administrative agent and (c) any other credit agreement, loan agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of any Indebtedness or other financial accommodation that has been incurred to extend, renew, refinance or replace (whether by the same or different banks) in whole or in part (under one or more agreements) the Indebtedness and other obligations outstanding under the credit agreements referred to in clauses (a) and (b) above or any other agreement or instrument referred to in this clause (c), in each case to the extent permitted by this Agreement.

 

“GVR Entities” means, collectively, GVR Holdco 3 and its Subsidiaries.

 

“GVR Holdco 1” means GVR Holdco 1 LLC, a Nevada limited liability company.

 

“GVR Holdco 2” means GVR Holdco 2 LLC, a Nevada limited liability company.

 

“GVR Holdco 3” means GVR Holdco 3 LLC, a Nevada limited liability company.

 

“GVR Holding Company” means any of GVR Holdco 1, GVR Holdco 2 or GVR Holdco 3.

 

“GVR Loan Documents” means the Loan Documents (as defined in the GVR Credit Agreement).

 

“GVR Option” means the option of the Greenspun Entities (as defined in the Settlement Agreement referred to below) to purchase direct or indirect Equity Interests in Station

 

29

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

GVR Acquisition, LLC, as set forth in the Settlement Agreement dated as of May 25, 2010., among Fertitta Gaming LLC, and G.C. Gaming, LLC, GCR Gaming, LLC and G.C. Aliante, LLC.

 

“GVR Seller” means Green Valley Ranch Gaming, LLC, a Nevada limited liability company.

 

“GVR Tax Sharing Agreement” means that certain Tax Sharing Agreement, dated as of the GVR Acquisition Consummation Date, among the Borrower, GVR Holdco 2 and any other signatory party thereto.

 

“GVR Transition Services Agreement” means the Transition Services Agreement, dated as of the GVR Acquisition Consummation Date, among FE GVR Management LLC, GVR, the Borrower, and any other signatory party thereto.

 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

 

“Hedge Bank” means any Person that is a Lender or an Affiliate of a Lender at the time it enters into a Secured Hedge Agreement, in its capacity as a party thereto, and such Person’s successors and assigns.

 

“Holdco” means Station Holdco LLC, a Delaware limited liability company.

 

“Holdco Convertible Indebtedness” has the meaning specified in Section 7.03(t).

 

“Holding Company Tax Sharing Agreement” means that certain Tax Sharing Agreement, dated as of the date hereof, between the Borrower and Holdco.

 

“Holding Companies” means, collectively, Holdco and VoteCo.

 

“Honor Date” has the meaning specified in Section 2.03(c)(i).

 

“Hotel/Casino Facilities” means, collectively, the hotel and gaming or casino facilities located on the Mortgaged Properties, together with all pools, parking lots and other facilities and amenities related to any of the foregoing.

 

“Improvements” has the meaning set forth in the Mortgages, collectively.

 

30

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

 

(a)           obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)           the maximum amount (after giving effect to any prior drawings or reductions which may have been reimbursed) of all letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds, performance bonds and similar instruments issued or created by or for the account of such Person;

 

(c)           net obligations of such Person under any Swap Contract (or, to the extent of any related Swap Contracts entered into with the same counterparty and which provide that amounts due thereunder may be set off among such Swap Contracts, the net obligations of such Person under all such related Swap Contracts);

 

(d)           all obligations of such Person to pay the deferred purchase price of property or services (other than (i) trade accounts payable in the ordinary course of business and (ii) any earn-out obligation until such obligation becomes a liability on the balance sheet of such Person in accordance with GAAP);

 

(e)           indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements and mortgage, industrial revenue bond, industrial development bond and similar financings), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;

 

(f)            all Capitalized Lease Indebtedness;

 

(g)           all obligations of such Person in respect of Disqualified Equity Interests;

 

(h)           obligations under Support Agreements; and

 

(i)            all Guarantees of such Person in respect of any of the foregoing.

 

For all purposes hereof, the Indebtedness of any Person shall (A) include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, except to the extent such Person’s liability for such Indebtedness is otherwise limited and only to the extent such Indebtedness would be included in the calculation of Consolidated Total Debt and (B) exclude the obligations of the Borrower under the LandCo Support Agreement.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value as of such date.  The amount of Indebtedness represented by Guarantees and Support Agreements shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee or Support Agreement is made or, if not stated or determinable, the maximum reasonably

 

31

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

anticipated liability in respect thereof as determined by the guaranteeing Person in good faith; provided, that in no event shall such amount be less than the amount required to be reflected in the consolidated balance sheet of the Person providing such Guarantee or Support Agreement in accordance with GAAP (including Financial Standards Board Statement No. 5).  The amount of Indebtedness of any Person for purposes of clause (e) shall be deemed to be equal to the lesser of (i) the aggregate unpaid amount of such Indebtedness and (ii) the Fair Market Value of the property encumbered thereby.

 

“Indemnified Liabilities” has the meaning specified in Section 10.05.

 

“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 under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Indemnitees” has the meaning specified in Section 10.05.

 

“Individual Property” means the “Site” as defined in each Mortgage, severally.

 

“Information” has the meaning specified in Section 10.08.

 

“Initial Tranche B-3 Term Lenders” means the Lenders constituting the Tranche B-3 Term Lenders as of the Closing Date.

 

“Installment Payment” means a Tranche B-1 Installment Payment or Tranche B-2 Installment Payment.

 

“Installment Payment Reserve Account” has the meaning specified in Section 2.05(b)(x).

 

“Intellectual Property Security Agreements” means the Intellectual Property Security Agreements, substantially in the form of Exhibit I.

 

“Intercompany Note” means the global intercompany note, substantially in the form of Exhibit K.

 

“Interest Coverage Ratio” means, with respect to the Borrower and the Restricted Subsidiaries on a consolidated basis, for any Test Period, the ratio of (i) Consolidated EBITDA for such Test Period to (ii) Consolidated Cash Interest Expense for such Test Period.

 

“Interest Payment Date” means (a) as to any Loan (other than a Tranche B-3 Term Loan), the last Business Day of each calendar month and the Maturity Date, (b) as to any Swing Line Loan, the day that such Loan is required to be repaid and (c) as to any Tranche B-3 Term Loan, (i) prior to receipt by the Borrower of a Monthly Interest Notice, each December 15th and June 15th of each calendar year and the Tranche B-3 Maturity Date and (ii) from and after the receipt by the Borrower of a Monthly Interest Notice, the last Business Day of each calendar month and the Tranche B-3 Maturity Date.

 

32

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Interest Period” means, as to each Eurodollar Loan, the period commencing on the date such Eurodollar Loan is disbursed or converted to or continued as a Eurodollar Loan and ending one, two, three or six months after the date of such Loan as selected by the Borrower in its Committed Loan Notice; provided that:

 

(a)           any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

 

(b)           any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period;

 

(c)           (i) with respect to any Revolving Loan, Tranche B-1 Term Loan or Tranche B-2 Term Loan, no Interest Period shall extend beyond the Maturity Date and (ii) with respect to any Tranche B-3 Term Loan, no Interest Period shall extend beyond the Tranche B-3 Maturity Date; and

 

(d)           with respect to any Tranche B-3 Term Loan as to which a Monthly Interest Notice has not been delivered, only three-month Interest Periods shall be available hereunder.

 

“Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests or debt or other securities of another Person (including by way of merger or consolidation), (b) a loan, advance or capital contribution to, Guarantee or assumption of Indebtedness of, or purchase or other acquisition of any other debt or equity participation or interest in, 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 all or a substantial part of the property and assets or business of another Person or assets constituting a business unit, line of business or division of such Person.  Subject to Section 6.14 (in the case of deemed Investments in Unrestricted Subsidiaries), for purposes of covenant compliance, the amount of any Investment shall be the amount actually invested (in the case of any non-cash asset invested, taking the Fair Market Value thereof at the time the investment is made), without adjustment for subsequent increases or decreases in the value of such Investment.  For purpose hereof, payments made by the Borrower pursuant to the LandCo Support Agreement shall not constitute an Investment.

 

“Investment Bank” has the meaning specified in Section 10.26(a).

 

“IP Holdco” means NP IP Holdings LLC, a Nevada limited liability company.

 

“IP Holdco Transition Date” means earlier of (a) the date on which all commitments and letters of credit (if any) under the OpCo Credit Agreement shall have terminated and all loans and other obligations (other than customary indemnity obligations and expense reimbursement obligations not then due and payable that expressly survive the

 

33

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

termination thereof) shall have been paid in full in cash or (b) the date on which the Transition Period (as defined in the OpCo Transition Services Agreement) shall have terminated.

 

“IP Rights” has the meaning specified in Section 5.15.

 

“IRS” means the United States Internal Revenue Service.

 

“Joint Lead Arrangers” means Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.

 

“JPMCB” means JPMorgan Chase Bank, N.A. and any successor thereto by merger, consolidation or otherwise.

 

“Land” has the meaning set forth in the Mortgages, collectively.

 

“LandCo” means CV PropCo, LLC, a Nevada limited liability company.

 

“LandCo Assets Transfer” means the transfers of properties and assets occurring on the Closing Date pursuant to the LandCo Assets Transfer Documents, including the transfer of the Equity Interests of LandCo to the Borrower.

 

“LandCo Assets Transfer Documents” means (a) that certain LandCo Assets Transfer Agreement (SCI Assets), dated as of the date hereof, among Old OpCo, as seller, and LandCo, as designated collateral transferee, (b) that certain LandCo Assets Transfer Agreement (Subsidiary Assets), dated as of the date hereof, among Tropicana Station, Inc. and Tropicana Acquisitions, Inc., as sellers, and LandCo, as designated collateral transferee, and (c) Proposal and Agreement With Respect to Acceptance of Certain Collateral Pursuant to Section 9-620 of the UCC, dated as of the date hereof, among LandCo Holdings, LandCo, Holdco, VoteCo, Fertitta Partners, LLC and Deutsche Bank Trust Company Americas.

 

“LandCo Cost Allocation Agreement” means that certain Cost Sharing Agreement, dated as of June 16, 2011, by and among the Borrower, LandCo, LandCo Holdings, NP Tropicana LLC and any other parties signatory thereto.

 

“LandCo Credit Agreement” means (a) that certain Amended and Restated Credit Agreement, dated as of the date hereof, among LandCo, the lenders party thereto and DBCI, as administrative agent and (b) any other credit agreement, loan agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of any Indebtedness or other financial accommodation that has been incurred to extend, renew, refinance or replace (whether by the same or different banks) in whole or in part (under one or more agreements) the Indebtedness and other obligations outstanding under the LandCo Credit Agreement referred to in clause (a) above or any other agreement or instrument referred to in this clause (b).

 

“LandCo Holdings” means NP Landco Holdco LLC, a Nevada limited liability company.

 

34

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“LandCo Holdings LLC Agreement” means the  Amended and Restated Limited Liability Company Agreement of NP Landco Holdco LLC dated the date hereof.

 

“LandCo Loan Documents” means the Loan Documents (as defined in the LandCo Credit Agreement).

 

“LandCo Support Agreement” means that certain Limited Support Agreement and Recourse Guaranty, dated as of the date hereof, executed by the Borrower.

 

“Las Vegas Locals Market” means any area within the Las Vegas, Nevada city limits or within a 50 mile radius of the intersection of Las Vegas Boulevard South and Charleston Boulevard in Las Vegas, Nevada other than (x) the area bordered by Sunset Road on the south, the I-15 freeway on the west, Charleston Boulevard on the north and Paradise Road on the east, and (y) the Las Vegas Hilton and related landholdings.

 

“Laws” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes 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, 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 (including, without limitation, any Gaming Law or Liquor Law).

 

“L/C Advance” means, with respect to each Revolving Credit Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with its Pro Rata Share.

 

“L/C Back-Stop Arrangements” has the meaning provided in Section 2.16.

 

“L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Revolving Credit Borrowing.

 

“L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the renewal or increase of the amount thereof.

 

“L/C Issuer” means DBNY and any Lender that becomes an L/C Issuer in accordance with Section 2.03(k) or 10.07(j), in each case, in its capacity as an issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“L/C Obligations” means, as at any date of determination, the aggregate undrawn amount of all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings.

 

“Leasehold Estate” means the estate in the applicable Mortgaged Properties created by each Ground Lease.

 

35

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Lender” means each Person from time to time party hereto as a Lender, including any Person that becomes party hereto pursuant to an Assignment and Assumption and, as the context requires, includes each L/C Issuer and the Swing Line Lender, and their respective successors and assigns as permitted hereunder, each of which is referred to herein as a “Lender.”

 

“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent.

 

“Letter of Credit” means any letter of credit issued hereunder.  A Letter of Credit may be a commercial letter of credit or a standby letter of credit.

 

“Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the relevant L/C Issuer.

 

“Letter of Credit Expiration Date” means the day that is five (5) Business Days prior to the Maturity Date (or, if such day is not a Business Day, the next preceding Business Day).

 

“Letter of Credit Exposure” means, at any time, the L/C Obligations at such time. The Letter of Credit Exposure of any Revolving Credit Lender at any time shall be its Pro Rata Share of the L/C Obligations at such time.

 

“Letter of Credit Sublimit” means an amount equal to the lesser of (a) $10,000,000 (provided a Defaulting Lender’s Pro Rata Share of the L/C Obligations subject to L/C Back-Stop Arrangements shall not apply to reduce this $10,000,000 sublimit) and (b) the aggregate amount of the Revolving Credit Commitments.  The Letter of Credit Sublimit is part of, and not in addition to, the Revolving Credit Facility.

 

“LIBO Rate” means, with respect to any Eurodollar Loan for any Interest Period, the rate for eurodollar deposits with maturity comparable to such Interest Period appearing on Reuters Screen LIBOR01 Page at approximately 11:00 a.m. (London Time) on the date two Business Days prior to the beginning of such Interest Period; provided that, to the extent that an interest rate is not ascertainable pursuant to the foregoing provisions of this definition, the “LIBO Rate” shall be the interest rate per annum determined by the Administrative Agent to be the average of the rates per annum at which deposits in dollars are offered for such relevant Interest Period to major banks in the London interbank market in London, England by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of such Interest Period.

 

“License Revocation” means (i) the denial, revocation or suspension of any Material Nevada Governmental Approval of the Manager, Fertitta Entertainment or any Loan Party by any Governmental Authority; or (ii) the filing of a disciplinary complaint by a Governmental Authority seeking the denial, revocation or suspension of any Material Nevada Governmental Approval of the Manager, Fertitta Entertainment or any Loan Party; provided, that each of the Manager, Fertitta Entertainment and the applicable Loan Parties shall have the greater of (a) ninety (90) days from the date of filing of such disciplinary complaint or (b) such

 

36

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

time period as may be granted by the applicable Governmental Authority to cure any event or deficiency giving rise to the filing of such disciplinary complaint such that the complaint is dismissed or settled without a denial, revocation or suspension of such Material Nevada Governmental Approval.  Notwithstanding any applicable cure period set forth in clause (ii) above, if a Material Nevada Governmental Approval of the Manager, Fertitta Entertainment or any Loan Party is denied, revoked or suspended by any Governmental Authority, a “License Revocation” shall be deemed to have occurred on the effective date of such denial, revocation or suspension.

 

“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any Capitalized Lease having substantially the same economic effect as any of the foregoing).

 

“Liquidity” means, as of any date of determination, the sum of (a) Availability as of such date and (b) the aggregate amount of Unrestricted cash and Cash Equivalents maintained by the Borrower and the Restricted Subsidiaries as of such date.

 

“Liquor Authorities” means, in any jurisdiction in which the Borrower or any of its Subsidiaries sells and distributes liquor, the applicable alcoholic beverage commission or other Governmental Authority responsible for interpreting, administering and enforcing the Liquor Laws.

 

“Liquor Laws” means the Laws applicable to or involving the sale and distribution of liquor by the Borrower or any of its Subsidiaries in any jurisdiction, as in effect from time to time, including the policies, interpretations and administration thereof by the applicable Liquor Authorities.

 

“Loan” means an extension of credit by a Lender to the Borrower under Article 2 in the form of a Tranche B-1 Term Loan, Tranche B-2 Term Loan, Tranche B-3 Term Loan, Revolving Credit Loan or a Swing Line Loan.

 

“Loan Documents” means, collectively, (i) this Agreement, (ii) the Notes, (iii) the Guaranty, (iv) the Collateral Documents, (v) each Letter of Credit Application, (vi) other than for purposes of Section 10.01, the Fee Letter and (vii) the Management Subordination Agreement.

 

“Loan Parties” means, collectively, the Borrower, each Restricted Subsidiary and each Holding Company.

 

“Management Agreement” means that certain Management Agreement, dated as of the date hereof, between the Borrower and the Manager.

 

“Management Agreement Guaranty” means that certain Guaranty, dated as of the date hereof, executed by Fertitta Entertainment in favor of the Borrower.

 

37

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Management Subordination Agreement” means that certain Subordination of Management Agreement, dated as of the date hereof, among the Borrower, the Manager and the Administrative Agent.

 

“Manager” means FE PropCo Management LLC, a Delaware limited liability company.

 

“Manager Allocation Agreement” means that certain Manager Allocation Agreement, dated as of the date hereof, among Fertitta Entertainment, the Manager, certain other Subsidiaries of Fertitta Entertainment and the Borrower.

 

“Manager Documents” means the Management Agreement, the Management Agreement Guaranty and the Manager Allocation Agreement.

 

“Master Agreement” has the meaning specified in the definition of “Swap Contract.”

 

“Material Adverse Effect” means any change, occurrence, event, circumstance or development that has had or could reasonably be expected to have a material adverse effect on (a) the business, property, condition (financial or otherwise), operation or performance of the Borrower and its Restricted Subsidiaries, taken as a whole, (b) the ability of the Borrower and its Restricted Subsidiaries, taken as a whole, to perform their payment obligations under the Loan Documents as and when such obligations are required to be performed thereunder, (c) the validity or enforceability of any of the Loan Documents or the rights and remedies of the Administrative Agent and other Secured Parties or (d) the Liens in favor of the Administrative Agent on the Collateral or the priority of such Liens.

 

“Material Contracts” means (i) each of the Manager Documents, the Management Subordination Agreement, the Subsidiary Cost Allocation Agreements, the Transition Services Agreements, the Holding Company Tax Sharing Agreement, the Subsidiary Tax Sharing Agreements and the Borrower/IP Holdco License Agreement, (ii) the Non-Compete Agreement, (iii) each agreement evidencing Indebtedness (other than any intercompany Indebtedness among the Borrower and the Restricted Subsidiaries) for borrowed money in an amount equal to or greater than the Threshold Amount and (iv) each other contract set forth on Schedule 1.01E, in each case as in effect on the date hereof or as amended, restated, supplemented or otherwise modified in accordance with the provisions of the Loan Documents.

 

“Material Nevada Governmental Approval” means any material Governmental Approval (including any Nevada Gaming License) issued by any Governmental Authority including any agency(ies) of the City of Las Vegas, Nevada; the City of Henderson, Nevada; Clark County, Nevada; or the State of Nevada, the denial, revocation or suspension of which would have a Material Adverse Effect.

 

“Material Real Property Lease” means (i) any Real Property Lease to a single Tenant covering 10,000 square feet or more of rentable area of any Individual Property and (ii) the Material Real Property Leases (including all amendments and supplements thereto) designated as such on Schedule 5.08(f); provided, that no Real Property Lease that relates solely

 

38

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

to a restaurant, movie theatre or night club or relates solely to a short-term lease of a parking lot shall constitute a Material Real Property Lease.

 

“Maturity Date” means the date occurring on the fifth anniversary of the Closing Date, as such date may be extended pursuant to Section 2.14, or such earlier date that the Loans become due as a result of acceleration or otherwise.

 

“Maximum Rate” has the meaning specified in Section 10.10.

 

“Monthly Interest Notice” has the meaning specified in Section 2.08(d)(ii).

 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

 

“Mortgage” means, collectively, the deeds of trust, trust deeds, hypothecs and mortgages made by the Loan Parties in favor or for the benefit of the Administrative Agent on behalf of the Secured Parties substantially in the form of Exhibit H (with such changes as may be customary to account for local Law matters), and any other mortgages executed and delivered pursuant to Section 6.11 or 6.13.

 

“Mortgage Policies” has the meaning specified in Section 6.13(b)(ii).

 

“Mortgaged Properties” has the meaning specified in paragraph (g) of the definition of “Collateral and Guarantee Requirement.”

 

“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

 

“Native American Contracts” means contracts between the Borrower or any of its Restricted Subsidiaries and Native American tribes, bands or other forms of government, or their agencies and instrumentalities, related to the development, construction, management or operation of gaming, lodging and other related businesses.

 

“Native American Subsidiary” means each Subsidiary of the Borrower which is hereafter designated as such from time to time by written notice to the Administrative Agent in a manner consistent with the provisions of Section 6.14(b); provided, that no such Subsidiary shall be so designated (a) unless at all times such Subsidiary is engaging exclusively in the business of managing, constructing, developing, servicing, and otherwise supporting gaming, lodging and other related businesses under the auspices of a Native American tribe, band or other forms of government, (b) unless at all times it does not own any interest in any Core Property or any Equity Interests in any Person that is not itself a Native American Subsidiary or (c) when any Default has occurred and is continuing.  Solely for the purposes of (i) the definition of “Excluded Assets” set forth in the Pledge Agreement and (ii) clause (c) of the definition of “Collateral and Guarantee Requirement” set forth herein, “Native American Subsidiary” shall include any Person (other than a Subsidiary) in which the Borrower or a Restricted Subsidiary holds an Equity Interest that is designated as such by the Borrower; provided, that (A) no such Person shall be so designated unless at all times such Person is engaging exclusively in the business of

 

39

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

managing, constructing, developing, servicing, and otherwise supporting gaming, lodging and other related businesses under the auspices of a Native American tribe, band or other forms of government and (B) the Borrower shall not make any such designation at any time that a Default has occurred and is continuing.

 

“Net Cash Proceeds” means:

 

(a)           with respect to the Disposition of any asset by the Borrower or any Restricted Subsidiary or any Casualty Event, the remainder, if any, of (i) the sum of cash and Cash Equivalents received in connection with such Disposition or Casualty Event (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received and, with respect to any Casualty Event, any insurance proceeds or condemnation awards in respect of such Casualty Event actually received by or paid to or for the account of the Borrower or any Restricted Subsidiary) minus (ii) the sum of (A) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness that is secured by the asset subject to such Disposition or Casualty Event and that is required to be repaid (and is timely repaid) in connection with such Disposition or Casualty Event (other than Indebtedness under the Loan Documents), (B) the reasonable out-of-pocket expenses (including attorneys’ fees, investment banking fees, survey costs, title insurance premiums, and related search and recording charges, transfer taxes, deed or mortgage recording taxes, other customary expenses and brokerage, consultant and other customary fees) actually incurred by the Borrower or such Restricted Subsidiary in connection with such Disposition or Casualty Event, (C) taxes paid or reasonably estimated to be actually payable in connection therewith and (D) any reserve for adjustment in respect of (x) the sale price of such asset or assets established in accordance with GAAP and (y) any liabilities associated with such asset or assets and retained by the Borrower or any Restricted Subsidiary after such sale or other Disposition thereof, including pension and other post-employment benefit liabilities and liabilities related to environmental matters or against any indemnification obligations associated with such transaction and it being understood that “Net Cash Proceeds” shall include any cash or Cash Equivalents (i) received upon the Disposition of any non-cash consideration received by the Borrower or any Restricted Subsidiary in any such Disposition and (ii) upon the reversal (without the satisfaction of any applicable liabilities in cash in a corresponding amount) of any reserve described in clause (D) of this clause (a) or, if such liabilities have not been satisfied in cash and such reserve is not reversed within three hundred and sixty-five (365) days after such Disposition or Casualty Event, the amount of such reserve; provided that (x) no net cash proceeds calculated in accordance with the foregoing realized in a single transaction or series of related transactions shall constitute Net Cash Proceeds unless such net cash proceeds shall exceed $2,500,000 and (y) no such net cash proceeds shall constitute Net Cash Proceeds under this clause (a) in any fiscal year until the aggregate amount of all such net cash proceeds in such fiscal year shall exceed $5,000,000 (and thereafter only net cash proceeds in excess of such amount shall constitute Net Cash Proceeds under this clause (a));

 

40

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(b)           with respect to the incurrence or issuance of any Indebtedness by the Borrower or any Restricted Subsidiary, the excess, if any, of (i) the sum of the cash received by the Borrower or such Restricted Subsidiary in connection with such incurrence or issuance over (ii) the investment banking fees, underwriting discounts, commissions, costs and other reasonable out-of-pocket expenses and other customary expenses, incurred by the Borrower or such Restricted Subsidiary in connection with such incurrence or issuance; and

 

(c)           with respect to the sale or issuance of any Equity Interests by, or any capital contribution to, any Person (including any Permitted Equity Issuance), an amount equal to the excess, if any, of (i) the sum of the cash received by such Person in connection with such sale, issuance or contribution over (ii) the investment banking fees, underwriting discounts, commissions, costs and other reasonable out-of-pocket expenses and other customary expenses, incurred by such Person in connection with such sale, issuance or contribution.

 

“Nevada Gaming License” means all licenses, consents, permits, approvals, authorizations, registrations, findings of suitability, franchises and entitlements issued by any Nevada Gaming Authority necessary for or relating to the conduct of activities under the Gaming Laws within the State of Nevada.

 

“New PropCo Acquired Assets Transfer Documents” means that certain New PropCo Transfer Agreement, dated as of the date hereof, among Old PropCo, as seller, the Mortgage Lenders (as defined in the Plan of Reorganization) party thereto and the Borrower, as designated collateral transferee.

 

“New PropCo Acquired Assets Transfers” means the transfers of the New PropCo Acquired Assets (as defined in the Plan of Reorganization) to the Borrower and its Restricted Subsidiaries as designees of the Lenders (in their capacities as the Mortgage Lenders under (and as defined in) the Plan of Reorganization) pursuant to the Plan of Reorganization and the New PropCo Acquired Assets Transfer Documents.

 

“New Property” means, with respect to any period, any new hotel and/or casino and related amenities (as opposed to any expansion to existing properties) opened for business to the public by the Borrower or its Restricted Subsidiaries during such period.

 

“New Property EBITDA” means, with respect to any New Property for any period, the amount for such period of Consolidated EBITDA of such New Property (determined as if references to the Borrower and the Restricted Subsidiaries in the definition of “Consolidated EBITDA” (and in the component financial definitions used therein) were references to the Person that owns such New Property and its applicable Subsidiaries), all as determined on a consolidated basis for such New Property; provided that, for any period, if the New Property was not opened on the first day of such period, then the New Property EBITDA for such period shall be equal to (i) the actual Consolidated EBITDA for such New Property during such period as determined above, divided by (ii) the number of days during such period from and after the opening of such New Property, times (iii) the total number of days in such period.

 

41

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“New Real Property Lease” has the meaning specified in Section 7.19(a).

 

“Non-Cash Charges” means (a) non-cash losses on asset sales, disposals or abandonments, (b) any non-cash impairment charge or asset write-off related to intangible assets, long-lived assets, and investments in debt and equity securities pursuant to GAAP, (c) all non-cash losses from investments recorded using the equity method, (d) stock-based awards compensation expense, and (e) other non-cash charges (provided that if any non-cash charges referred to in this clause (e) represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from Consolidated EBITDA or Excess Cash Flow, as applicable, to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period).

 

“Non-Compete Agreement” means that certain Non-Competition Agreement, dated as of the date hereof, among the Borrower, Holdco, Fertitta Entertainment, the Manager, FE Opco Management LLC, Frank J. Fertitta III, Lorenzo J. Fertitta, German American Capital Corporation and JPMCB.

 

“Non-Consenting Lenders” has the meaning specified in Section 3.07(d).

 

“Non-Disturbance Agreement” has the meaning specified in Section 7.19(g).

 

“Nonrenewal Notice Date” has the meaning specified in Section 2.03(b)(iii).

 

“Not Otherwise Applied” means, with reference to any amount of Net Cash Proceeds of any Permitted Equity Issuance or of Cumulative Excess Cash Flow, that such amount (a) was not required to be applied to prepay the Term Loans pursuant to Section 2.05(b)(i) or Section 2.05(b)(iv) and (b) was not previously taken into account in permitting a transaction under the Loan Documents where such permissibility is (or may have been) contingent on receipt of such amount or utilization of such amount for a specified purpose.  For the avoidance of doubt, the aggregate amount of Investments, Capital Expenditures and payments under the Holding Company Tax Sharing Agreement in respect of Subsidiary Tax Distribution Shortfalls made in reliance on the amount of Net Cash Proceeds or Cumulative Excess Cash Flow, as applicable, pursuant to Sections 7.02(i), 7.02(n), 7.08(f) and/or 7.16(c) shall reduce the amount “Not Otherwise Applied” of any Net Cash Proceeds or Cumulative Excess Cash Flow, as applicable.  The Borrower shall promptly notify the Administrative Agent of any application of such amount as contemplated by (b) above.

 

“Note” means a Tranche B-1 Term Note, Tranche B-2 Term Note, Tranche B-3 Term Note, a Revolving Credit Note or a Swing Line Note, as the context may require.

 

“Notice of Intent to Cure” has the meaning specified in Section 6.02(b).

 

“NPL” means the National Priorities List under CERCLA.

 

“Obligations” means all (x) advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party and its Subsidiaries arising under any Loan Document or otherwise with respect to any Revolving Credit Commitment, any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due

 

42

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

or to become due, now existing or hereafter arising, (y) obligations of the Borrower or any Restricted Subsidiary under any Secured Hedge Agreement and (z) Cash Management Obligations and including, in each of clauses (x), (y) and (z), interest and fees that accrue after the commencement by or against any Loan Party or Subsidiary of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.  Without limiting the generality of the foregoing, the Obligations of the Loan Parties under the Loan Documents (and of their Subsidiaries to the extent they have obligations under the Loan Documents) include (a) the obligation (including guarantee obligations) to pay principal, interest, Letter of Credit commissions, reimbursement obligations, charges, expenses, fees, Attorney Costs, indemnities and other amounts payable by any Loan Party or its Subsidiaries under any Loan Document and (b) the obligation of any Loan Party or any of its Subsidiaries to reimburse any amount in respect of any of the foregoing that any Lender, in its sole discretion, may elect to pay or advance on behalf of such Loan Party or such Subsidiary.

 

“Old OpCo” has the meaning specified in the recitals hereto.

 

“Old OpCo Audited Financial Statements” means the audited consolidated balance sheets of Old OpCo and its Subsidiaries as of December 31, 2008 and December 31, 2009 and the related audited consolidated statements of income, stockholders’ equity and cash flows for Old OpCo and its Subsidiaries for the fiscal years ended December 31, 2008 and December 31, 2009.

 

“Old OpCo Unaudited Financial Statements” means the unaudited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of Old OpCo and its Subsidiaries for (a) each fiscal quarter of Old OpCo ended after December 31, 2009 and at least forty-five (45) days before the Closing Date and (b) to the extent reasonably available, each fiscal month after the most recent fiscal period for which financial statements were received by the Administrative Agent and the Lenders as described above and ended at least thirty (30) days before the Closing Date, which financial statements described in clause (a) shall be prepared in accordance with GAAP (but excluding footnotes).

 

“Old PropCo” has the meaning specified in the recitals hereto.

 

“Old PropCo Unaudited Financial Statements” means (a) quarterly revenue reports in respect of Old PropCo’s property reporting Portfolio Four-Wall EBITDAR (as defined in the Loan and Security Agreement dated as of November 7, 2007) of Old PropCo and its Subsidiaries for the fiscal quarter ended June 30, 2010 and for each subsequent fiscal quarter ended at least forty-five (45) days before the Closing Date and (b) to the extent reasonably available, monthly revenue reports in respect of Old PropCo’s property reporting Portfolio Four-Wall EBITDAR of Old PropCo and its Subsidiaries for each fiscal month after the most recent fiscal quarter for which revenue reports were received by the Administrative Agent and the Lenders as described pursuant to the foregoing clause (a) and ended at least thirty (30) days before the Closing Date.

 

“OpCo” means NP Opco LLC, a Nevada limited liability company.

 

43

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“OpCo Acquisition” means the acquisition by the Borrower of 100% of the outstanding Equity Interests of OpCo Holdings and the acquisition of assets and assumption of liabilities by OpCo and its Subsidiaries pursuant to the Acquisition.

 

“OpCo Cost Allocation Agreement” means that certain Cost Allocation Agreement, dated as of the date hereof, among the Borrower, OpCo Holdings, and the Subsidiaries of OpCo Holdings party thereto from time to time.

 

“OpCo Credit Agreement” means (a) that certain Credit Agreement, dated as of the date hereof, among OpCo, the lenders party thereto and DBCI, as administrative agent and (b) any other credit agreement, loan agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of any Indebtedness or other financial accommodation that has been incurred to extend, renew, refinance or replace (whether by the same or different banks) in whole or in part (under one or more agreements) the Indebtedness and other obligations outstanding under the OpCo Credit Agreement referred to in clause (a) above or any other agreement or instrument referred to in this clause (b), in each case to the extent permitted by this Agreement.

 

“OpCo Holdings” means NP Opco Holdings LLC, a Nevada limited liability company.

 

“OpCo/IP Holdco License Agreement” means that certain IP Holdco to OpCo License Agreement, dated as of the date hereof, among OpCo and its Subsidiaries and IP Holdco.

 

“OpCo Loan Documents” means the Loan Documents (as defined in the OpCo Credit Agreement).

 

“OpCo Tax Sharing Agreement” means that certain Tax Sharing Agreement, dated as of the date hereof, among the Borrower, OpCo and any other parties signatory thereto.

 

“OpCo Transition Services Agreement” means the Transition Services Agreement, dated as of the date hereof, among Holdco, the Borrower, OpCo Holdings and its Subsidiaries.

 

“Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and, if applicable, any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

 

“Other Taxes” has the meaning specified in Section 3.01(b).

 

44

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Outstanding Amount” means (a) with respect to the Tranche B-1 Term Loans, Tranche B-2 Term Loans, Tranche B-3 Term Loans, Revolving Credit Loans and Swing Line Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Tranche B-1 Term Loans, Tranche B-2 Term Loans, Tranche B-3 Term Loans, Revolving Credit Loans (including any refinancing of outstanding unpaid drawings under Letters of Credit or L/C Credit Extensions as a Revolving Credit Borrowing) or Swing Line Loans, as the case may be, occurring on such date; and (b) with respect to any L/C Obligations on any date, the aggregate outstanding amount thereof on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes thereto as of such date, including as a result of any reimbursements of outstanding unpaid drawings under any Letters of Credit (including any refinancing of outstanding unpaid drawings under Letters of Credit or L/C Credit Extensions as a Revolving Credit Borrowing) or any reductions in the maximum amount available for drawing under Letters of Credit taking effect on such date.

 

“Overpayment Amount” has the meaning specified in Section 2.05(b)(i)(B).

 

“Palace LLC” means NP Palace LLC, a Nevada limited liability company.

 

“Participant” has the meaning specified in Section 10.07(e).

 

“Patriot Act” has the meaning specified in Section 10.21.

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Section 412 of the Code or Section 302 or Title IV of ERISA and is sponsored or maintained by any Loan Party or any ERISA Affiliate or to which any Loan Party or any ERISA Affiliate contributes or has an obligation to contribute.

 

“Permits” means any and all franchises, licenses, leases, permits, approvals, notifications, certifications, registrations, authorizations, exemptions, qualifications, easements, rights of way, Liens and other rights, privileges and approvals required under any applicable Law (including, without limitation, Gaming Permits and permits required under Liquor Laws).

 

“Permitted Acquisition” has the meaning specified in Section 7.02(i).

 

“Permitted Holdco Convertible Indebtedness Equity Issuance” means any issuance of Equity Interests by Holdco in connection with the conversion, repayment, prepayment, redemption, purchase or other satisfaction of any Holdco Convertible Indebtedness.

 

“Permitted Equity Issuance” means (i) any issuance of Qualified Equity Interests by any one or more of the Holding Companies prior to a Qualified IPO by the Borrower, (ii) any issuance of Qualified Equity Interests by the Borrower or Holdco in respect of a Qualified IPO and (iii) any issuance of Qualified Equity Interests by the Borrower following a Qualified IPO by the Borrower.

 

45

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Permitted Lien” means each Lien permitted under Section 7.01.

 

“Permitted Refinancing” means, with respect to any Person, any modification, refinancing, replacement, refunding, renewal or extension of any Indebtedness of such Person; provided that (a) the principal amount (or accreted value, if applicable) thereof does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness so modified, refinanced, replaced, refunded, renewed or extended except by an amount equal to unpaid accrued interest and premium thereon plus other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such modification, refinancing, replacement, refunding, renewal or extension and by an amount equal to any existing commitments unutilized thereunder, (b) other than with respect to a Permitted Refinancing in respect of Indebtedness permitted pursuant to Section 7.03(e), such modification, refinancing, replacement, refunding, renewal or extension has a final maturity date equal to or later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being modified, refinanced, replaced, refunded, renewed or extended, (c) other than with respect to a Permitted Refinancing in respect of Indebtedness permitted pursuant to Section 7.03(e), at the time thereof, no Event of Default shall have occurred and be continuing, and (d) if such Indebtedness being modified, refinanced, replaced, refunded, renewed or extended is Indebtedness permitted pursuant to Section 7.03(b) or (v), (i) to the extent such Indebtedness being modified, refinanced, replaced, refunded, renewed or extended is subordinated in right of payment to the Obligations, such modification, refinancing, replacement, refunding, renewal or extension is subordinated in right of payment to the Obligations on terms at least as favorable to the Lenders as those contained in the documentation governing the Indebtedness being modified, refinanced, replaced, refunded, renewed or extended, (ii) to the extent such Indebtedness being modified, refinanced, replaced, refunded, renewed or extended is secured by Liens that are subordinated to the Liens securing the Obligations, such modification, refinancing, replacement, refunding, renewal or extension is unsecured or secured by Liens that are subordinated to the Liens securing the Obligations on terms at least as favorable to the Lenders as those contained in the documentation (including any intercreditor or similar agreements) governing the Indebtedness being modified, refinanced, replaced, refunded, renewed or extended, (iii) the terms and conditions of any such modified, refinanced, replaced, refunded, renewed or extended Indebtedness, taken as a whole, are not materially less favorable to the interests of the Lenders than the terms and conditions of the Indebtedness being modified, refinanced, replaced, refunded, renewed or extended; provided that a certificate of a Responsible Officer of the Borrower delivered to the Administrative Agent at least five Business Days prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such Indebtedness and drafts of the documentation relating thereto, stating that the Borrower has determined in good faith that such terms and conditions satisfy the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the foregoing requirement unless the Administrative Agent notifies the Borrower within such five Business Day period that it disagrees with such determination (including a reasonable description of the basis upon which it disagrees) and (iv) such modification, refinancing, replacement, refunding, renewal or extension is incurred by the Person who is the obligor of the Indebtedness being modified, refinanced, replaced, refunded, renewed or extended.

 

46

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

 

“Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by any Loan Party or, with respect to any such plan that is subject to Section 412 of the Code or Section 302 or Title IV of ERISA, any ERISA Affiliate.

 

“Plan Effective Date” means the “Effective Date” of (and as defined in) the Plan of Reorganization.

 

“Plan of Reorganization” means the joint plan of reorganization in the form attached as Exhibit A to the Disclosure Statement, without regard to any modifications thereto made on or prior to the Closing Date that are adverse to the interests of the Lenders in any material respect (as reasonably determined by the Required Lenders in their good faith discretion), unless approved in writing by the Administrative Agent (acting at the direction of the Required Lenders), as the same may be amended, modified and/or supplemented after the Closing Date in accordance with the terms hereof.

 

“Platform” has the meaning specified in Section 6.02.

 

“Pledge Agreement” means, collectively, the Pledge Agreement executed by the Borrower and the Restricted Subsidiaries, substantially in the form of Exhibit G-2, together with each Pledge Agreement Supplement executed and delivered pursuant to Section 6.11.

 

“Pledge Agreement Supplement” has the meaning specified in the Pledge Agreement.

 

“Post-Acquisition Period” means, with respect to any Permitted Acquisition or conversion of an Unrestricted Subsidiary to a Converted Restricted Subsidiary, the period beginning on the date such Permitted Acquisition or conversion of an Unrestricted Subsidiary to a Converted Restricted Subsidiary is consummated and ending on the last day of the fourth full consecutive fiscal quarter immediately following the date on which such Permitted Acquisition or conversion of an Unrestricted Subsidiary to a Converted Restricted Subsidiary is consummated.

 

“Pre-Opening Expenses” means, with respect to any fiscal period, the amount of expenses (other than Consolidated Interest Expense) classified as “pre-opening expenses” on the applicable financial statements of the Borrower and its Restricted Subsidiaries for that period, prepared in accordance with GAAP consistently applied.

 

“Prepetition Credit Agreement” means that certain Amended and Restated Loan and Security Agreement, dated as of March 19, 2008, among Old PropCo, German American Capital Corporation and JPMCB, as amended, supplemented or otherwise modified prior to the Closing Date.

 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by DBTCA as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective as of the opening of business on the date such change 

 

47

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

is publicly announced as being effective.  The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually available.

 

“Principal BlockerCos” means PB Investor I LLC, a Delaware limited liability company, and PB Investor II LLC, a Delaware limited liability company.

 

“Pro Forma Adjustment” means, for any Test Period that includes all or any part of a fiscal quarter included in any Post-Acquisition Period, with respect to the Acquired EBITDA of the applicable Acquired Entity or Business or a Converted Restricted Subsidiary or the Consolidated EBITDA of the Borrower, the pro forma increase or decrease in such Acquired EBITDA or such Consolidated EBITDA, as the case may be, projected by the Borrower in good faith as a result of actions taken during such Post-Acquisition Period for the purposes of realizing reasonably identifiable and factually supportable cost savings in connection with the combination of the operations of such Acquired Entity or Business or such Converted Restricted Subsidiary with the operations of the Borrower and the Restricted Subsidiaries, net of, in the case of any increase in such Acquired EBITDA or Consolidated EBITDA, the amount of actual benefits realized during such Test Period from such actions; provided that for purposes of projecting such pro forma increase or decrease to such Acquired EBITDA or such Consolidated EBITDA, as the case may be, it may be assumed that the cost savings related to actions taken during such Post-Acquisition Period will be realizable during the entirety of such Test Period; provided  further,  however, that (A) such cost savings shall be projected by the Borrower in good faith to be realized within such Post-Acquisition Period, (B) such cost savings must be able to be accounted for as adjustments pursuant to Article 11 of Regulation S-X under the Securities Act, (C) any cost savings that are not actually realized during such Post-Acquisition Period may no longer be included as a “Pro Forma Adjustment” after the end of the last day of such Post-Acquisition Period, (D) such actions giving rise to such cost savings shall actually have been taken during the Post-Acquisition Period, (E) no amounts included shall be included in the determination of the “Pro Forma Adjustment” to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA with respect to such period and (F) no Pro Forma Adjustment shall be added back in the computation of Consolidated EBITDA for such Test Period for purposes of calculating the Applicable ECF Percentage.

 

“Pro Forma Balance Sheets” has the meaning specified in Section 5.05(a)(ii).

 

“Pro Forma Basis”, “Pro Forma Compliance” and “Pro Forma Effect” mean, with respect to compliance with any test or covenant hereunder, that (A) to the extent applicable, the Pro Forma Adjustment shall have been made and (B) all Specified Transactions and the following transactions in connection therewith shall be deemed to have occurred as of the first day of the applicable period of measurement in such test or covenant:  (a) income statement items (whether positive or negative) attributable to the property or Person subject to such Specified Transaction, (i) in the case of a Disposition of all or substantially all Equity Interests in any Subsidiary of the Borrower or any division, product line, or facility used for operations of the Borrower or any of its Subsidiaries, shall be excluded, and (ii) in the case of a Permitted Acquisition, conversion of an Unrestricted Subsidiary to a Converted Restricted Subsidiary or Investment described in the definition of “Specified Transaction”, shall be included, (b) any retirement or repayment of Indebtedness, and (c) any Indebtedness (other than intercompany Indebtedness among the Borrower and the Restricted Subsidiaries) incurred or assumed by the 

 

48

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Borrower or any of the Restricted Subsidiaries in connection therewith and if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate which is or would be in effect with respect to such Indebtedness as at the relevant date of determination; provided that, without limiting the application of the Pro Forma Adjustment pursuant to clause (A) above, the foregoing pro forma adjustments may be applied to any such test or covenant solely to the extent that such adjustments are consistent with the definition of “Consolidated EBITDA” and give effect to events (including operating expense reductions) that are (i) (x) directly attributable to such transaction, (y) expected to have a continuing impact on the Borrower and the Restricted Subsidiaries and (z) factually supportable or (ii) otherwise consistent with the definition of “Pro Forma Adjustment”; provided, further, that, for avoidance of doubt, no pro forma adjustments shall apply to the consummation of the Restructuring Transactions.  In the case of any determination of Pro Forma Compliance with, or any calculation on a Pro Forma Basis of, the financial covenants set forth in Section 7.11 pursuant to Sections 2.14, 4.02(d), 6.14(a), 7.02(i)(H), 7.02(n) or 7.03(e) prior to December 31, 2012, such determination or calculation shall be made as if Section 7.11 were applicable during such period and using the bracketed financial covenant levels set forth in Section 7.11.

 

“Pro Forma Financial Statements” has the meaning specified in Section 5.05(a)(ii).

 

“Pro Forma Opening Projections” means forecasts prepared by the Borrower, in form and substance and detail reasonably acceptable to the Administrative Agent, including projected balance sheets, income statements and cash flow statements for the Borrower and the Restricted Subsidiaries on a monthly basis for the first fiscal year following the Closing Date, on a quarterly basis for the second fiscal year following the Closing Date and on an annual basis for the five fiscal years thereafter, accompanied by a certificate of a Responsible Officer of the Borrower stating that such forecasts are based on reasonable estimates, information and assumptions, and that such Responsible Officer has no reason to believe that such forecasts are incorrect or misleading in any material respect.

 

“Pro Rata Share” means (i) with respect to each Revolving Credit Lender at any time a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of the Revolving Credit Commitment of such Revolving Credit Lender at such time and the denominator of which is the amount of the Aggregate Commitments of all Revolving Credit Lenders under the Revolving Credit Facility at such time; provided that if such Revolving Credit Commitment has been terminated, then the Pro Rata Share of each Revolving Credit Lender shall be determined based on the Pro Rata Share of such Revolving Credit Lender immediately prior to such termination and after giving effect to any subsequent assignments made pursuant to the terms hereof; provided, further, that in the case of Section 2.16 when a Defaulting Lender shall exist, “Pro Rata Share” shall mean the percentage of the Aggregate Commitments (disregarding any Defaulting Lender’s Revolving Credit Commitment) represented by such Revolving Credit Lender’s Revolving Credit Commitment and (ii) with respect to each Term Lender of any Class at any time a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the aggregate outstanding principal amount of the Term Loans of such Class of such Term Lender at such time and the 

 

49

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

denominator of which is the aggregate outstanding principal amount of all Term Loans of such Class of all Term Lenders at such time.

 

“Public Lender” has the meaning specified in Section 6.02.

 

“Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity Interests.

 

“Qualified IPO” means a “Qualified Public Offering” as defined in the Equityholders Agreement, dated as of the date hereof, among Holdco and each holder of Equity Interests thereof, VoteCo and each holder of Equity Interests thereof, the Borrower and its Subsidiaries and the Fertitta Brothers, as in effect on the Closing Date (as if each reference to “Newco” in such definition were a reference to either the Borrower, Holdco or any direct or indirect parent thereof).

 

“Real Property” means all Mortgaged Properties and all other real property owned or leased from time to time by any of the Borrower or any Restricted Subsidiary.

 

“Real Property Lease” means any lease, sublease or sub-sublease, letting, license, concession or other agreement (whether written or oral and whether now or hereafter in effect), pursuant to which any Person is granted by the Borrower or any Restricted Subsidiary a possessory interest in, or right to use or occupy all or any portion of any space in, any Mortgaged Property, and every modification, amendment or other agreement relating to such lease, sublease, sub-sublease, or other agreement entered into in connection with such lease, sublease, sub-sublease, or other agreement and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto.

 

“Real Property Lease Modification” has the meaning specified in Section 7.19(a).

 

“Real Property Leasing Standards” means the standards set forth on Schedule 5.08(f).

 

“Red Rock LLC” means NP Red Rock LLC, a Nevada limited liability company.

 

“Register” has the meaning specified in Section 10.07(d).

 

“Regulation T” means Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Regulation U” means Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Regulation X” means Regulation X of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Related Person” means, as to any Person, any of such Person’s employees, directors, officers or shareholders.

 

50

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Release Conditions” has the meaning specified in Section 9.11(b).

 

“Rents” means all rents, rent equivalents, moneys payable as damages or in lieu of rent or rent equivalents, royalties (including, without limitation, all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, deposits (including, without limitation, security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration of whatever form or nature received by or paid to or for the account of or benefit of Borrower or a Restricted Subsidiary from any and all sources arising from or attributable to a Mortgaged Property, including, but not limited to the Real Property Leases.

 

“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA or the regulations issued thereunder, other than events for which the thirty (30) day notice period has been waived.

 

“Request for Credit Extension” means (a) with respect to a Borrowing, conversion or continuation of Term Loans or Revolving Credit Loans, a Committed Loan Notice, (b) with respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required Lenders” means, as of any date of determination, Lenders having more than 50% of the sum of the (a) Total Outstandings (with the aggregate amount of each Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this definition) and (b) aggregate unused Revolving Credit Commitments; provided that the unused Revolving Credit Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders; provided, further, that, in the event that DBCI and its Affiliates hold, in the aggregate, more than 50% of the Total Outstandings and aggregate unused Revolving Credit Commitments, Required Lenders must include at least one Lender other than DBCI and its Affiliates.

 

“Responsible Officer” means the chief executive officer, president, vice president, principal accounting officer, treasurer or assistant treasurer or other similar officer of a Loan Party and, as to any document delivered on the Closing Date, any secretary or assistant secretary of a Loan Party.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, limited liability company, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 

“Restricted” means, when referring to cash or Cash Equivalents of the Borrower or any of its Restricted Subsidiaries, that such cash or Cash Equivalents (i) appear (or would be required to appear) as “restricted” on a consolidated balance sheet of the Borrower or of any such Restricted Subsidiary (unless such appearance is related to the Loan Documents or Liens created thereunder), (ii) are subject to any Lien in favor of any Person other than the Administrative Agent for the benefit of the Secured Parties (or the L/C Issuer or the Swing Line Lender, as applicable) or as permitted by Section 7.01(s) and clauses (i) and (ii) of Section 7.01(t), 

 

51

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(iii) constitute Cage Cash, (iv) are subject to pledge pursuant to the L/C Back-Stop Arrangements, (v) are maintained in a segregated deposit account pursuant to Section 6.20(b), (vi) are maintained in a cash collateral account pursuant to Section 2.05(b)(ii)(C) or (vii) are maintained in the Installment Payment Reserve Account pursuant to Sections 2.05(b)(x) and (xi).

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interest of any Holding Company, the Borrower or any Restricted Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such Equity Interest, or on account of any return of capital to any stockholders, partners or members (or the equivalent Persons thereof) of any Holding Company, the Borrower or any Restricted Subsidiary or any option, warrant or other right to acquire any such Equity Interests in any Holding Company, the Borrower or any Restricted Subsidiary.  For the avoidance of doubt, (i) payments made by the Borrower to the Manager pursuant to, and in accordance with, the Management Agreement and (ii) payments made pursuant to, and in accordance with, the Holding Company Tax Sharing Agreement, in each case, shall not constitute Restricted Payments.

 

“Restricted Subsidiary” means any Subsidiary of the Borrower other than an Unrestricted Subsidiary.

 

“Restructuring Transactions” means each of the transactions specified in Article V.B of the Plan of Reorganization.

 

“Restructuring Transactions Documentation” means all of the documentation entered into in connection with the Restructuring Transactions.

 

“Revolving Credit Availability” means, at any time, the amount by which the Aggregate Commitments at such time exceed the sum of (A) the Outstanding Amount of Revolving Credit Loans and (B) the Outstanding Amount of L/C Obligations at such time.

 

“Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving Credit Loans of the same Type and, in the case of Eurodollar Loans, having the same Interest Period, made by each of the Revolving Credit Lenders pursuant to Section 2.01(b).

 

“Revolving Credit Commitment” means, as to any Revolving Credit Lender, its obligation (subject to the terms and conditions of this Agreement) to (a) make Revolving Credit Loans to the Borrower from time to time pursuant to Section 2.01(b), (b) purchase participations in L/C Obligations in respect of Letters of Credit and (c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Revolving Credit Commitment” or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be increased pursuant to Section 2.06(a) and further adjusted from time to time in accordance with this Agreement.  The Aggregate Commitments of all Revolving Credit Lenders as of the Closing Date shall be (i) before giving effect to the increase pursuant to Section 2.06(a), $100,000,000 and (ii) after giving effect to the 

 

52

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

increase pursuant to Section 2.06(a), $125,000,000, as such amount may be further adjusted from time to time in accordance with the terms of this Agreement.

 

“Revolving Credit Exposure” means, at any time, as to each Revolving Credit Lender, the sum of the outstanding principal amount of such Revolving Credit Lender’s Revolving Credit Loans at such time and its Pro Rata Share of the L/C Obligations and the Swing Line Obligations at such time.

 

“Revolving Credit Facility” means, at any time, the aggregate amount of the Revolving Credit Commitments at such time.

 

“Revolving Credit Lender” means, at any time, any Lender that has a Revolving Credit Commitment at such time (or, after the termination thereof, Revolving Credit Exposure at such time).

 

“Revolving Credit Loan” has the meaning provided in Section 2.01(b).

 

“Revolving Credit Note” means a promissory note of the Borrower payable to any Revolving Credit Lender or its registered assigns, in substantially the form of Exhibit C-4, evidencing the aggregate Indebtedness of the Borrower to such Revolving Credit Lender resulting from the Revolving Credit Loans made by such Revolving Credit Lender.

 

“Revolving Obligations” means all Obligations (other than Obligations under clauses (y) and (z) of the first sentence of the definition of “Obligations”) relating to the Revolving Credit Loans, Swing Line Loans, Letters of Credit (including L/C Obligations) and the Revolving Credit Commitments.

 

“Rollover Amount” has the meaning specified in Section 7.16(b).

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Secured Hedge Agreement” means any Swap Contract permitted under Article 7 that is entered into by and between the Borrower or any Restricted Subsidiary and any Hedge Bank, except to the extent that the parties thereto agree in writing that such Swap Contract shall not be secured by any Liens on the Collateral and such parties have delivered such writing to the Administrative Agent.

 

“Secured Hedge Obligations” means all obligations of the Borrower or any Restricted Subsidiary arising under any Secured Hedge Agreement.

 

“Secured Parties” means, collectively, the Administrative Agent, the Lenders, each L/C Issuer, the Swing Line Lender, the Hedge Banks, the Cash Management Banks, the Supplemental Administrative Agents and each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.02.

 

53

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Security Agreement” means, collectively, the Security Agreement executed by the Borrower and the Restricted Subsidiaries, substantially in the form of Exhibit G-1, together with each Security Agreement Supplement executed and delivered pursuant to Section 6.11.

 

“Security Agreement Supplement” has the meaning specified in the Security Agreement.

 

“Shareholder Pledge Agreement” means the Shareholder Pledge Agreement executed by the Holding Companies, substantially in the form of Exhibit G-3.

 

“Sold Entity or Business” has the meaning specified in the definition of the term “Consolidated EBITDA.”

 

“Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person has not, does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital.  The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

“SPC” has the meaning specified in Section 10.07(h).

 

“Specified Transaction” means, with respect to any period, any Investment, Disposition, incurrence or repayment of Indebtedness, Restricted Payment, Subsidiary designation or other transaction that by the terms of this Agreement set forth elsewhere herein requires Pro Forma Compliance with a test or covenant hereunder or requires such test or covenant to be calculated on a Pro Forma Basis.

 

“Statutory Reserves” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentage (including any marginal, special, emergency or supplemental reserves) applicable on the interest rate determination date (expressed as a decimal) established by the Board and applicable to any member bank of the Federal Reserve System in respect of Eurocurrency Liabilities (as defined in Regulation D of the Board).

 

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned by such Person.  Unless otherwise specified, all

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Subsidiary Cost Allocation Agreement” means each of (i) the OpCo Cost Allocation Agreement, (ii) the LandCo Cost Allocation Agreement, (iii) the GVR Cost Allocation Agreement and (iv) each other cost allocation agreement between the Borrower and an Unrestricted Subsidiary entered into after the Closing Date in accordance with this Agreement.

 

“Subsidiary Tax Distribution Shortfall” has the meaning specified in the Holding Company Tax Sharing Agreement.

 

“Subsidiary Tax Sharing Agreement” means each of (i) the OpCo Tax Sharing Agreement, (ii) the GVR Tax Sharing Agreement and (iii) each other tax sharing agreement between the Borrower and an Unrestricted Subsidiary entered into after the Closing Date in accordance with this Agreement.

 

“Subsidiary Tax Sharing Payments” means (i) all payments received by the Borrower from Unrestricted Subsidiaries pursuant to Subsidiary Tax Sharing Agreements and (ii) all payments received by the Borrower from LandCo Holdings pursuant to Section 5.1(b) of the LandCo Holdings LLC Agreement.

 

“Substitute Lender” has the meaning specified in Section 10.23(a).

 

“Sunset LLC” means NP Sunset LLC, a Nevada limited liability company.

 

“Supplemental Administrative Agent” has the meaning specified in Section 9.12(a) and “Supplemental Administrative Agents” shall have the corresponding meaning.

 

“Support Agreement” means (a) the guaranty by the Borrower or a Restricted Subsidiary of the completion of the development, construction and opening of a new gaming facility by any Affiliate or Subsidiary of the Borrower (including a Native American Subsidiary) or of any gaming facility owned by others which is to be managed exclusively by any such Affiliate or Subsidiary and/or (b) the agreement by the Borrower or a Restricted Subsidiary to advance funds, property or services to or on behalf of an Affiliate or Subsidiary (including a Native American Subsidiary) in order to maintain the financial condition or level of any balance sheet item of such Subsidiary or Affiliate (including “keep well” or “make well” agreements) in connection with the development, construction and operations of a new gaming facility by such Subsidiary or Affiliate (or of any gaming facility owned by others which is to be managed exclusively by such Subsidiary or Affiliate); provided that such guaranty or agreement is entered into in connection with obtaining financing for such gaming facility or is required by a Governmental Authority.

 

“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

 

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contract has been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined by the Borrower as the mark-to-market value(s) for such Swap Contract, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

 

“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04.

 

“Swing Line Facility” means the revolving credit facility made available by the Swing Line Lender pursuant to Section 2.04.

 

“Swing Line Lender” means DBCI, in its capacity as provider of Swing Line Loans, or any successor swing line lender hereunder.

 

“Swing Line Loan” has the meaning specified in Section 2.04(a).

 

“Swing Line Loan Exposure” means, at any time, the Swing Line Obligations at such time. The Swing Line Loan Exposure of any Revolving Credit Lender at any time shall be its Pro Rata Share of the Swing Line Obligations at such time.

 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B.

 

“Swing Line Note” means a promissory note of the Borrower payable to the Swing Line Lender or its registered assigns, in substantially the form of Exhibit C-5, evidencing the aggregate Indebtedness of the Borrower to the Swing Line Lender resulting from the Swing Line Loans made by the Swing Line Lender.

 

“Swing Line Obligations” means, as at any date of determination, the aggregate principal amount of all Swing Line Loans outstanding.

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Swing Line Sublimit” means an amount equal to the lesser of (a) $10,000,000 and (b) the aggregate amount of the Revolving Credit Commitments.  The Swing Line Sublimit is part of, and not in addition to, the Revolving Credit Commitments.

 

“Tax Distribution True-Up Amount Payments” means distributions by Holdco to its members required pursuant to Section 5.2(c) of the Amended and Restated Limited Liability Company Agreement of Holdco as in effect on the date hereof.

 

“Taxes” has the meaning specified in Section 3.01(a).

 

“Tenant” means any Person leasing, subleasing or otherwise occupying any portion of any Mortgaged Property, other than the Borrower or any Restricted Subsidiary and its respective employees and agents.

 

“Term Lenders” means, collectively, the Tranche B-1 Term Lenders, the Tranche B-2 Term Lenders and the Tranche B-3 Term Lenders.

 

“Term Loan” means a Tranche B-1 Term Loan, Tranche B-2 Term Loan or Tranche B-3 Term Loan, as the context may require.

 

“Term Loan Facility” means all Term Loans made hereunder.

 

“Test Period” means, for any determination under this Agreement, the four consecutive fiscal quarters of the Borrower then last ended; provided that for purposes of any calculation of Consolidated Cash Interest Expense or Consolidated EBITDA for any “Test Period” ending prior to the first anniversary of the Closing Date, each of Consolidated Cash Interest Expense and Consolidated EBITDA shall be calculated in accordance with the last sentence appearing in the definition of “Consolidated Cash Interest Expense” and “Consolidated EBITDA”, respectively.

 

“Threshold Amount” means $15,000,000.

 

“Total Leverage Ratio” means, with respect to the Borrower and the Restricted Subsidiaries on a consolidated basis, for any Test Period, the ratio of (a) Consolidated Total Debt as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.

 

“Total Outstandings” means, at any time, the aggregate Outstanding Amount of all Loans and all L/C Obligations at such time.

 

“Tranche B-1 Installment Payment” has the meaning specified in Section 2.07(a)(i).

 

“Tranche B-1 Term Lender” means, at any time, any Lender that has a Tranche B-1 Term Loan at such time.

 

“Tranche B-1 Term Loan” has the meaning specified in Section 2.01(a).

 

57

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Tranche B-1 Term Loan Distribution” has the meaning provided in Section 2.01(a).

 

“Tranche B-1 Term Loan Distribution Amount” means, with respect to each Lender, the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Tranche B-1 Term Loan Distribution Amount,” which amount shall be the principal amount of the Tranche B-1 Term Loan such Lender shall be deemed to hold in partial consideration for the New PropCo Acquired Assets Transfers on the Closing Date pursuant to Section 2.01(a).  The aggregate amount of the Tranche B-1 Term Loan Distribution Amounts of all Term Lenders on the Closing Date (prior to giving effect to the Closing Date Prepayment) is $225,000,000.  After giving effect to the Closing Date Prepayment, the aggregate outstanding principal balance of the Tranche B-1 Term Loans will be $200,000,000.

 

“Tranche B-1 Term Note” means a promissory note of the Borrower payable to any Tranche B-1 Term Lender or its registered assigns, in substantially the form of Exhibit C-1, evidencing the aggregate Indebtedness of the Borrower to such Tranche B-1 Term Lender resulting from the Tranche B-1 Term Loans held or deemed held by such Tranche B-1 Term Lender.

 

“Tranche B-2 Installment Payment” has the meaning specified in Section 2.07(b)(i).

 

“Tranche B-2 Term Lender” means, at any time, any Lender that has a Tranche B-2 Term Loan at such time.

 

“Tranche B-2 Term Loan” has the meaning specified in Section 2.01(a).

 

“Tranche B-2 Term Loan Distribution” has the meaning provided in Section 2.01(a).

 

“Tranche B-2 Term Loan Distribution Amount” means, with respect to each Lender, the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Tranche B-2 Term Loan Distribution Amount,” which amount shall be the principal amount of the Tranche B-2 Term Loan such Lender shall be deemed to hold in partial consideration for the New PropCo Acquired Assets Transfers on the Closing Date pursuant to Section 2.01(a).  The aggregate amount of the Tranche B-2 Term Loan Distribution Amounts of all Term Lenders on the Closing Date is $750,000,000

 

“Tranche B-2 Term Note” means a promissory note of the Borrower payable to any Tranche B-2 Term Lender or its registered assigns, in substantially the form of Exhibit C-2, evidencing the aggregate Indebtedness of the Borrower to such Tranche B-2 Term Lender resulting from the Tranche B-2 Term Loans held or deemed held by such Tranche B-2 Term Lender.

 

“Tranche B-3 Fixed Interest Rate” means the sum of (a) the higher of (i) the rate for USD interest rate swaps with a five-year maturity, expressed as a percentage, which appears on ICAP Screen USD19901=RCM3 Page (on Reuters) on the Fixed Rate Determination Date as communicated in writing by the Administrative Agent to the Borrower and (ii) the

 

58

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Adjusted LIBO Rate for a Eurodollar Loan with a three-month Interest Period commencing on the Fixed Rate Conversion Effective Date plus (b) the Applicable Rate with respect to Tranche B-3 Term Loans.

 

“Tranche B-3 Maturity Date” means the date occurring on the seventh anniversary of the Closing Date, or such earlier date that the Loans become due as a result of acceleration or otherwise.

 

“Tranche B-3 Securities Exchange” has the meaning specified in Section 10.26(a).

 

“Tranche B-3 Securities Exchange Notice” has the meaning specified in Section 10.26(a).

 

“Tranche B-3 Term Lender” means, at any time, any Lender that has a Tranche B-3 Term Loan at such time.

 

“Tranche B-3 Term Loan” has the meaning specified in Section 2.01(a).

 

“Tranche B-3 Term Loan Distribution” has the meaning provided in Section 2.01(a).

 

“Tranche B-3 Term Loan Distribution Amount” means, with respect to each Lender, the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Tranche B-3 Term Loan Distribution Amount,” which amount shall be the principal amount of the Tranche B-3 Term Loan such Lender shall be deemed to hold in partial consideration for the New PropCo Acquired Assets Transfers on the Closing Date pursuant to Section 2.01(a).  The aggregate amount of the Tranche B-3 Term Loan Distribution Amounts of all Term Lenders on the Closing Date is $625,000,000.

 

“Tranche B-3 Term Note” means a promissory note of the Borrower payable to any Tranche B-3 Term Lender or its registered assigns, in substantially the form of Exhibit C-3, evidencing the aggregate Indebtedness of the Borrower to such Tranche B-3 Term Lender resulting from the Tranche B-3 Term Loans held or deemed held by such Tranche B-3 Term Lender.

 

“Transition Services Agreement” means each of (i) the OpCo Transition Services Agreement, (ii) the GVR Transition Services Agreement and (iii) each other transition services agreement between the Borrower and an Unrestricted Subsidiary entered into after the Closing Date in accordance with this Agreement.

 

“Type” means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Loan.

 

“Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as the same may from time to time be in effect in the State of New York or the Uniform Commercial Code (or similar code or statute) of another jurisdiction, to the extent it may be required to apply to any item or items of Collateral.

 

59

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“United States” and “U.S.”  mean the United States of America.

 

“Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

 

“Unrestricted” means, when referring to cash or Cash Equivalents of the Borrower or any of its Restricted Subsidiaries, that such cash or Cash Equivalents are not Restricted (it being understood for the avoidance of doubt that Cage Cash shall not be included in any calculation of Unrestricted cash and Cash Equivalents).

 

“Unrestricted Subsidiary” means (i) LandCo Holdings and each Subsidiary thereof, (ii) OpCo Holdings and each Subsidiary thereof, (iii) the GVR Entities, (iv) any other Subsidiary of the Borrower listed on Schedule 1.01C, (v) prior to the IP Holdco Transition Date, IP Holdco and (vi) any Subsidiary of the Borrower designated by the board of managers of the Borrower as an Unrestricted Subsidiary pursuant to Section 6.14 subsequent to the Closing Date (including any such Subsidiary created or acquired in connection with a Permitted Acquisition in accordance with Section 7.02(i)(G)), in each case, unless designated as a Restricted Subsidiary pursuant to Section 6.14.

 

“Unsuitable Lender” has the meaning specified in Section 10.23(a).

 

“U.S. Lender” has the meaning specified in Section 10.15(b).

 

“VoteCo” means Station VoteCo LLC, a Delaware limited liability company.

 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing:  (i) the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by (ii) the then outstanding principal amount of such Indebtedness.

 

“WF Indemnification Agreement” means the letter agreement between Wells Fargo Bank, N.A. and the Borrower and certain of the Borrower’s Affiliates relating to the assumption of liability by post-bankruptcy entities for pre-bankruptcy deposit accounts.

 

“wholly owned” means, with respect to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (x) director’s qualifying shares and (y) shares issued to foreign nationals to the extent required by applicable Law) are owned by such Person and/or by one or more wholly owned Subsidiaries of such Person.

 

“Withdrawal Period” has the meaning specified in Section 10.23(b).

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

SECTION 1.02.  Other Interpretive Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

 

(a)           The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

 

(b)           (i) The words “herein,” “hereto,” “hereof” and “hereunder” and words of similar import when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular provision thereof.

 

(ii)           Article, Section, Exhibit and Schedule references are to the Loan Document in which such reference appears.

 

(iii)          The terms “include,” “includes” and “including” are each by way of example and not limitation and shall be deemed to be followed by the phrase “without limitation.”

 

(iv)          The term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form.

 

(v)           Unless the context otherwise requires, any reference herein (A) to any Person shall be construed to include such Person’s successors and assigns and (B) to any Loan Party shall be construed to include such Loan Party as debtor and debtor-in-possession and any receiver or trustee for such Loan Party in any insolvency or liquidation proceeding

 

(c)           In the computation of periods of time from a specified date to a later specified date, unless otherwise specified herein, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including”.

 

(d)           Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

 

(e)           The words “asset” and “property” shall be construed as having the same meaning and effect and to refer to any and all rights and interests in tangible and intangible assets and properties of any kind whatsoever, whether real, personal or mixed, including cash, securities, Equity Interests, accounts and contract rights.

 

(f)            The words “to the knowledge of the Borrower” mean, when modifying a representation, warranty or other statement, that the fact or situation described therein is known by a Responsible Officer of the Borrower or with the exercise of reasonable due diligence under the circumstances (in accordance with the standards of what a reasonable Person in similar circumstances would have done) would have been known by a Responsible Officer of the Borrower.

 

61

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

SECTION 1.03.  Accounting Terms; Calculations.  (a) All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, applied in a manner consistent with that used in preparing the Old OpCo Audited Financial Statements for the fiscal year ended December 31, 2010, except as otherwise specifically prescribed herein.

 

(b)           Notwithstanding anything to the contrary herein, (i) for purposes of determining compliance with any financial test or financial covenant contained in this Agreement with respect to any Test Period during which any Specified Transaction occurs (or, for purposes of Sections 2.14, 4.02(d), 6.14(a), 7.02(i)(H), 7.02(n) and 7.03(e) only, thereafter and on or prior to the date of determination), the Total Leverage Ratio and Interest Coverage Ratio shall be calculated with respect to such Test Period and such Specified Transaction on a Pro Forma Basis and (ii) subject to the Pro Forma Basis adjustments described in clause (i), each financial test and financial covenant to be calculated pursuant to this Agreement shall be calculated in conformity with the Pro Forma Financial Statements and the calculations set forth on the Pro Forma Opening Projections.  The Administrative Agent shall have the right to request, review and audit all such information it determines necessary to confirm the financial, tax and other business assumptions  or determinations made in the calculation of any financial test or financial covenant described in the foregoing clause (ii); provided, that in the event of any dispute between the Borrower and the Administrative Agent regarding such calculations or determinations, such calculations or determinations shall be made by the Borrower’s independent registered public accounting firm or, if such accounting firm does not or cannot make such determination, another independent registered public accounting firm that as of the date of this Agreement is one of the “big four” accounting firms.

 

(c)           Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any election under Standards Codification 825-10-25 (previously referred to as Statement of Financial Accounting Standards 159) (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of any Holding Company, the Borrower or any of their respective Subsidiaries at “fair value”, as defined therein.

 

SECTION 1.04.  Rounding.  Any financial ratios required to be maintained by the Borrower pursuant to this Agreement (or required to be satisfied in order for a specific action to be permitted under this Agreement) shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

 

SECTION 1.05.  References to Agreements, Laws, etc.  Unless otherwise expressly provided herein, (a) references to Organization Documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, amendments and restatements, extensions, supplements, reaffirmations and other modifications thereto, but only to the extent that such amendments, restatements, amendments and restatements, extensions, supplements, reaffirmations and other

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

modifications are permitted by any Loan Document; and (b) references to any Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law.

 

SECTION 1.06.  Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to the time of day in New York, New York (daylight savings or standard, as applicable).

 

SECTION 1.07.  Timing of Payment or Performance.  When the payment of any obligation or the performance of any covenant, duty or obligation is stated to be due or performance required on a day which is not a Business Day, the date of such payment (other than as described in the definition of “Interest Period”) or performance shall extend to the immediately succeeding Business Day.

 

ARTICLE II

 

The Revolving Credit Commitments and Credit Extensions

 

SECTION 2.01.  The Loans.  (a) The Term Loans.  Subject to the terms and conditions set forth herein, on the Closing Date, each Lender shall be deemed to hold term loans received as consideration (in part) for the New PropCo Acquired Assets Transfers in an amount equal to (i) such Lender’s Tranche B-1 Term Loan Distribution Amount (each, a “Tranche B-1 Term Loan”), with each such Tranche B-1 Term Loan to be initially maintained as a Base Rate Loan (subject to conversion pursuant to Section 2.02) (the “Tranche B-1 Term Loan Distribution”), (ii) such Lender’s Tranche B-2 Term Loan Distribution Amount (each, a “Tranche B-2 Term Loan”), with each such Tranche B-2 Term Loan to be initially maintained as a Base Rate Loan (subject to conversion pursuant to Section 2.02) (the “Tranche B-2 Term Loan Distribution”) and (iii) such Lender’s Tranche B-3 Term Loan Distribution Amount (each, a “Tranche B-3 Term Loan”), with each such Tranche B-3 Term Loan to be initially maintained as a Base Rate Loan (the “Tranche B-3 Term Loan Distribution”).  Term Loans repaid or prepaid may not be reborrowed.  After the Closing Date, Term Loans may be Base Rate Loans or Eurodollar Loans, as further provided herein.

 

(b)           The Revolving Credit Borrowings.  Subject to the terms and conditions set forth herein, each Revolving Credit Lender severally agrees to make loans to the Borrower as elected by the Borrower pursuant to Section 2.02 (each such loan, a “Revolving Credit Loan”) from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s Revolving Credit Commitment; provided that after giving effect to any Revolving Credit Borrowing, the aggregate Outstanding Amount of the Revolving Credit Loans of any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations, plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Revolving Credit Commitment.  Within the limits of each Lender’s Revolving Credit Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.01(b), prepay under Section 2.05, and reborrow under this Section 2.01(b).

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Revolving Credit Loans may be Base Rate Loans or Eurodollar Loans, as further provided herein.

 

SECTION 2.02.  Borrowings, Conversions and Continuations of Loans.  (a) Each Revolving Credit Borrowing, each conversion of Term Loans or Revolving Credit Loans from one Type to the other, and each continuation of Eurodollar Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone.  Each such notice must be received by the Administrative Agent (i) not later than 12:30 p.m. three (3) Business Days prior to the requested date of any Borrowing of Eurodollar Loans or continuation thereof or any conversion of Base Rate Loans to Eurodollar Loans, and (ii) not later than 12:00 noon on the requested date of any Borrowing of Base Rate Loans (other than Base Rate Loans that are Swing Line Loans, which shall be noticed not later than 1:00 p.m. on the requested date of Borrowing) or conversion of any Eurodollar Loans to Base Rate Loans.  Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower.  Each Borrowing of, conversion to or continuation of Eurodollar Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof.  Each Committed Loan Notice (whether telephonic or written) shall specify (i) whether the Borrower is requesting a Revolving Credit Borrowing, a conversion of Term Loans or Revolving Credit Loans from one Type to the other, or a continuation of Eurodollar Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to which existing Term Loans or Revolving Credit Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of Loan in a Committed Loan Notice or fails to give a timely notice requesting a conversion or continuation, then the applicable Term Loans or Revolving Credit Loans shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurodollar Loans.  If the Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one (1) month (or, in the case of a Tranche B-3 Term Loan as to which a Monthly Interest Notice has not been delivered, three (3) months).

 

(b)           Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its Pro Rata Share of the applicable Class of Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any automatic conversion to Base Rate Loans or continuation described in Section 2.02(a).  In the case of each Borrowing, each Appropriate Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed Loan Notice.  Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the initial Credit Extension, Section 4.01), the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

by (i) crediting the account of the Borrower on the books of the Administrative Agent with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower; provided that if, on the date the Committed Loan Notice with respect to such Borrowing is given by the Borrower, there are Swing Line Loans or L/C Borrowings outstanding, then the proceeds of such Borrowing shall be applied, first, to the payment in full of any such L/C Borrowings, second, to the payment in full of any such Swing Line Loans, and third, to the Borrower as provided above.

 

(c)           Except as otherwise provided herein, a Eurodollar Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Loan unless the Borrower pays the amount due, if any, under Section 3.05 in connection therewith.  During the existence of (x) any Event of Default under Section 8.01(f), no Loans may be converted or continued as Eurodollar Loans and (y) any other Event of Default, the Administrative Agent or the Required Lenders may require that no Loans may be converted to or continued as Eurodollar Loans.

 

(d)           The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Eurodollar Loans upon determination of such interest rate.  The determination of the Adjusted LIBO Rate by the Administrative Agent shall be conclusive in the absence of manifest error.  At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in the DBTCA prime rate used in determining the Base Rate promptly following the public announcement of such change.

 

(e)           After giving effect to all Revolving Credit Borrowings, all conversions of Term Loans or Revolving Credit Loans from one Type to the other, and all continuations of Term Loans or Revolving Credit Loans as the same Type, there shall not be more than six (6) Interest Periods in effect.

 

(f)            The failure of any Lender to make the Loan to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Loan on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Loan to be made by such other Lender on the date of any Borrowing.

 

SECTION 2.03.  Letters of Credit.  (a) The Letter of Credit Commitment.  (i) Subject to the terms and conditions set forth herein, (A) each L/C Issuer agrees, in reliance upon the agreements of the other Revolving Credit Lenders set forth in this Section 2.03, (1) from time to time on any Business Day during the period from the Closing Date until the earlier of the Letter of Credit Expiration Date and the date of termination of the Revolving Credit Commitments, to issue Letters of Credit on a sight basis for the account of the Borrower (provided, that any Letter of Credit may be for the benefit of (a) LandCo, so long as LandCo constitutes a wholly owned Subsidiary of the Borrower or (b) any other Subsidiary of the Borrower; provided, further, to the extent that such other Subsidiary is not a Loan Party, such Letter of Credit shall be deemed an Investment in such other Subsidiary and shall only be issued so long as it is permitted under Section 7.02) and to amend or renew Letters of Credit previously issued by it, in accordance with Section 2.03(b), and (2) to honor drafts under the Letters of

 

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Credit, and (B) the Revolving Credit Lenders severally agree to participate in Letters of Credit issued pursuant to this Section 2.03; provided that no L/C Issuer shall be obligated to make any L/C Credit Extension with respect to any Letter of Credit, and no Lender shall be obligated to participate in any Letter of Credit if as of the date of such L/C Credit Extension, (x) the Revolving Credit Exposure of any Lender would exceed such Lender’s Revolving Credit Commitment or (y) the Outstanding Amount of the L/C Obligations would exceed the Letter of Credit Sublimit.  Within the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.  Schedule 2.03 sets forth a list of existing letters of credit outstanding as of the Closing Date (the “Existing Letters of Credit”) issued by DBNY for the account of the Company or a Subsidiary thereof.  On and after the Closing Date, the Existing Letters of Credit shall constitute Letters of Credit deemed to have been issued under this Agreement.

 

(ii)           An L/C Issuer shall be under no obligation to issue, renew, extend or amend any Letter of Credit if:

 

(A)          any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such L/C Issuer from issuing such Letter of Credit, or any Law applicable to such L/C Issuer or any directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such L/C Issuer shall prohibit, or direct that such L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such L/C Issuer with respect to such Letter of Credit any restriction, reserve or capital requirement (for which such L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon such L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date (for which such L/C Issuer is not otherwise compensated hereunder);

 

(B)           subject to Section 2.03(b)(iii), the expiry date of such requested Letter of Credit would occur more than twelve months after the date of issuance or last renewal, unless the Required Lenders have approved such expiry date;

 

(C)           the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Revolving Credit Lenders have approved such expiry date; or

 

(D)          the issuance of such Letter of Credit would violate any Laws binding upon such L/C Issuer.

 

(iii)          An L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) such L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit.

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(b)           Procedures for Issuance and Amendment of Letters of Credit; Auto-Renewal Letters of Credit.  (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered to an L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower.  Such Letter of Credit Application must be received by the relevant L/C Issuer and the Administrative Agent not later than 12:30 p.m. at least two (2) Business Days prior to the proposed issuance date or date of amendment, as the case may be; or, in each case, such later date and time as the relevant L/C Issuer may agree in a particular instance in its sole discretion.  In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the relevant L/C Issuer:  (a) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (b) the amount thereof; (c) the expiry date thereof; (d) the name and address of the beneficiary thereof; (e) the documents to be presented by such beneficiary in case of any drawing thereunder; (f) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; and (g) such other matters as the relevant L/C Issuer may reasonably request.  In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the relevant L/C Issuer (1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature of the proposed amendment; and (4) such other matters as the relevant L/C Issuer may reasonably request.

 

(ii)           Promptly after receipt of any Letter of Credit Application, the relevant L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, such L/C Issuer will provide the Administrative Agent with a copy thereof.  Upon receipt by the relevant L/C Issuer of confirmation from the Administrative Agent that the requested issuance or amendment is permitted in accordance with the terms hereof, then, subject to the terms and conditions hereof, such L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Borrower or enter into the applicable amendment, as the case may be.  Immediately upon the issuance of each Letter of Credit, each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the relevant L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Lender’s Pro Rata Share times the amount of such Letter of Credit.

 

(iii)          If the Borrower so requests in any applicable Letter of Credit Application, the relevant L/C Issuer shall agree to issue a standby Letter of Credit that has automatic renewal provisions (each, an “Auto-Renewal Letter of Credit”); provided that any such Auto-Renewal Letter of Credit must permit the relevant L/C Issuer to prevent any such renewal at least once in each twelve month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Nonrenewal Notice Date”) in each such twelve month period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the relevant L/C Issuer, the Borrower shall not be required to make a specific request to the relevant L/C Issuer for any such renewal.  Once an Auto-Renewal Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the relevant

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

L/C Issuer to permit the renewal of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date; provided that the relevant L/C Issuer shall not permit any such renewal if (A) the relevant L/C Issuer has determined that it would have no obligation at such time to issue such Letter of Credit in its renewed form under the terms hereof (by reason of the provisions of Section 2.03(a)(ii) or otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before the day that is five (5) Business Days before the Nonrenewal Notice Date from the Administrative Agent, any Revolving Credit Lender or the Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied.

 

(iv)          Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the relevant L/C Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.

 

(c)           Drawings and Reimbursements; Funding of Participations.  (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the relevant L/C Issuer shall notify promptly the Borrower and the Administrative Agent thereof.  Not later than 3:00 p.m. on the Business Day on which any payment is made by an L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower shall reimburse such L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing, together with interest on the amount so paid or disbursed by such L/C Issuer, to the extent not reimbursed on the date of such payment or disbursement.  If the Borrower fails to so reimburse such L/C Issuer by such time, the Administrative Agent shall promptly notify each Appropriate Lender of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such Appropriate Lender’s Pro Rata Share thereof.  In such event, the Borrower shall be deemed to have requested a Revolving Credit Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02 for the principal amount of Base Rate Loans but subject to the amount of the unutilized portion of the Revolving Credit Commitments of the Appropriate Lenders and the conditions set forth in Section 4.02 (other than the delivery of a Committed Loan Notice).  Any notice given by an L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

 

(ii)           Each Appropriate Lender (including any Lender acting as an L/C Issuer) shall upon any notice pursuant to Section 2.03(c)(i) make funds available to the Administrative Agent for the account of the relevant L/C Issuer, in Dollars, at the Administrative Agent’s Office for payments in an amount equal to its Pro Rata Share of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii), each Appropriate Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount and the Unreimbursed Amount shall be deemed to have been refinanced in such amount.  The Administrative Agent shall remit the funds so received to the relevant L/C Issuer.

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(iii)          With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving Credit Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the relevant L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate.  In such event, each Appropriate Lender’s payment to the Administrative Agent for the account of the relevant L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Section 2.03.

 

(iv)          Until each Appropriate Lender funds its Revolving Credit Loan or L/C Advance pursuant to this Section 2.03(c) to reimburse the relevant L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Pro Rata Share of such amount shall be solely for the account of the relevant L/C Issuer.

 

(v)           Each Revolving Credit Lender’s obligation to make Revolving Credit Loans or L/C Advances to reimburse an L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the relevant L/C Issuer, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided that each Revolving Credit Lender’s obligation to make Revolving Credit Loans pursuant to this Section 2.03(c) is subject to the conditions set forth in Section 4.02 (other than delivery by the Borrower of a Committed Loan Notice).  No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the relevant L/C Issuer for the amount of any payment made by such L/C Issuer under any Letter of Credit, together with interest as provided herein.

 

(vi)          If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of the relevant L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), such L/C Issuer shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to such L/C Issuer at a rate per annum equal to (i) from the date such payment is required through the first Business Day thereafter, the Federal Funds Rate from time to time in effect and (ii) thereafter, the rate applicable to Base Rate Loans.  A certificate of the relevant L/C Issuer submitted to any Revolving Credit Lender (through the Administrative Agent) with respect to any amounts owing under this Section 2.03(c)(vi) shall be conclusive absent manifest error.

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(d)           Repayment of Participations.

 

(i)            If, at any time after an L/C Issuer has made a payment under any Letter of Credit and has received from any Revolving Credit Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c), the Administrative Agent receives for the account of such L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Pro Rata Share thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s L/C Advance was outstanding) in the same funds as those received by the Administrative Agent.

 

(ii)           If any payment received by the Administrative Agent for the account of an L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the circumstances described in Section 10.06 (including pursuant to any settlement entered into by such L/C Issuer in its discretion), each Appropriate Lender shall pay to the Administrative Agent for the account of such L/C Issuer its Pro Rata Share thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to (i) from the date of such demand through the first Business Day thereafter, the Federal Funds Rate from time to time in effect and (ii) thereafter, the rate applicable to Base Rate Loans.

 

(e)           Obligations Absolute.  The obligation of the Borrower to reimburse the relevant L/C Issuer for each drawing under each Letter of Credit issued by it and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:

 

(i)            any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other agreement or instrument relating thereto;

 

(ii)           the existence of any claim, counterclaim, setoff, defense or other right that Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the relevant L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction;

 

(iii)          any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit;

 

(iv)          any payment by the relevant L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by the relevant L/C Issuer under such Letter of

 

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Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law;

 

(v)           any exchange, release or nonperfection of any Collateral, or any release or amendment or waiver of or consent to departure from the Guaranty or any other guarantee, for all or any of the Obligations of any Loan Party in respect of such Letter of Credit; or

 

(vi)          any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Loan Party;

 

provided that the foregoing shall not excuse any L/C Issuer from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are waived by the Borrower to the extent permitted by applicable Law) suffered by the Borrower that are caused by such L/C Issuer’s gross negligence or willful misconduct when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.

 

(f)            Role of L/C Issuers.  Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the relevant L/C Issuer shall not have any responsibility to obtain any document (other than any draft, demand, certificate or other document expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document.  None of the L/C Issuers, any Agent-Related Person nor any of the respective correspondents, participants or assignees of any L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Letter of Credit Application.  The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided that this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement.  None of the L/C Issuers, any Agent-Related Person, nor any of the respective correspondents, participants or assignees of any L/C Issuer, shall be liable or responsible for any of the matters described in clauses (i) through (vi) of Section 2.03(e); provided that anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against an L/C Issuer, and such L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by such L/C Issuer’s willful misconduct or gross negligence or such L/C Issuer’s willful or grossly negligent failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a draft, demand, certificate or other document strictly complying with the terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the foregoing, each L/C Issuer may accept documents that appear on their face to be in order, without

 

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responsibility for further investigation, regardless of any notice or information to the contrary, and no L/C Issuer shall be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a 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.

 

(g)           Cash Collateral.  (i) If an L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing and the conditions set forth in Section 4.02 to a Revolving Credit Borrowing cannot then be met, (ii) if, as of the Letter of Credit Expiration Date, any Letter of Credit may for any reason remain outstanding and partially or wholly undrawn, (iii) if any Event of Default occurs and is continuing and the Administrative Agent or the Required Lenders, as applicable, require the Borrower to Cash Collateralize the L/C Obligations pursuant to Section 8.02(c) or (iv) an Event of Default set forth under Section 8.01(f) occurs and is continuing, then the Borrower shall Cash Collateralize the then Outstanding Amount of all L/C Obligations (in an amount equal to 105% of such Outstanding Amount determined as of the date of such Event of Default, such L/C Borrowing or the Letter of Credit Expiration Date, as the case may be), and shall do so not later than 2:00 p.m. on (x) in the case of the immediately preceding clauses (i) through (iii), (1) the Business Day that the Borrower receives notice thereof, if such notice is received on such day prior to 12:00 Noon or (2) if clause (1) above does not apply, the Business Day immediately following the day that the Borrower receives such notice and (y) in the case of the immediately preceding clause (iv), the Business Day on which an Event of Default set forth under Section 8.01(f) occurs or, if such day is not a Business Day, the Business Day immediately succeeding such day.  For purposes hereof, “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the relevant L/C Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit account balances (“Cash Collateral”) pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent and the relevant L/C Issuer (which documents are hereby consented to by the Lenders).  Derivatives of such term have corresponding meanings.  The Borrower hereby grants to the Administrative Agent, for the benefit of the L/C Issuers and the Lenders, a security interest in all such cash, deposit accounts and all balances therein and all proceeds of the foregoing.  Cash Collateral shall be maintained in blocked accounts at DBTCA (or another commercial bank selected in compliance with Section 9.09) and may be invested in readily available Cash Equivalents.  If at any time the Administrative Agent determines that any funds held as Cash Collateral are subject to any right or claim of any Person other than the Administrative Agent (on behalf of the Secured Parties) or that the total amount of such funds is less than the aggregate Outstanding Amount of all L/C Obligations, the Borrower will, forthwith upon demand by the Administrative Agent, pay to the Administrative Agent, as additional funds to be deposited and held in the deposit accounts at DBTCA (or another commercial bank selected in compliance with Section 9.09) as aforesaid, an amount equal to the excess of (a) 105% of such aggregate Outstanding Amount over (b) the total amount of funds, if any, then held as Cash Collateral that the Administrative Agent reasonably determines to be free and clear of any such right and claim.  Upon the drawing of any Letter of Credit for which funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under applicable Law, to reimburse the relevant L/C Issuer.  To the extent the amount of any Cash Collateral exceeds 105% of the then Outstanding Amount of such L/C Obligations and so long

 

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as no Event of Default has occurred and is continuing, the excess shall be refunded to the Borrower.

 

(h)           Letter of Credit Fees.  The Borrower shall pay to the Administrative Agent for the account of each Revolving Credit Lender in accordance with its Pro Rata Share a Letter of Credit fee for each Letter of Credit issued pursuant to this Agreement equal to the Applicable Rate times the daily maximum amount then available to be drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of Credit if such maximum amount increases periodically pursuant to the terms of such Letter of Credit); provided that the Defaulting Lender’s Pro Rata Share of a Letter of Credit fee accruing during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower, so long as such Lender shall be a Defaulting Lender, except to the extent that such Letter of Credit fee shall otherwise have been due and payable by the Borrower prior to such time; provided, further, that no Defaulting Lender shall be entitled to its Pro Rata Share of a Letter of Credit fee accruing after such Lender became a Defaulting Lender, so long as such Lender shall be a Defaulting Lender.  Such Letter of Credit fees shall be computed on a monthly basis in arrears.  Such Letter of Credit fees shall be due and payable in Dollars on the last Business Day of each calendar month, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand.  If there is any change in the Applicable Rate during any fiscal quarter of the Borrower, the daily maximum amount of each Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such fiscal quarter that such Applicable Rate was in effect.

 

(i)            Fronting Fee and Documentary and Processing Charges Payable to L/C Issuers.  The Borrower shall pay directly to each L/C Issuer for its own account a fronting fee with respect to each Letter of Credit issued by it equal to 0.25% per annum (but in no event less than $500) of the daily maximum amount then available to be drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of Credit if such maximum amount increases periodically pursuant to the terms of such Letter of Credit).  Such fronting fees shall be (x) computed on a monthly basis in arrears and (y) due and payable on the last Business Day of each calendar month, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand.  In addition, the Borrower shall pay directly to each L/C Issuer for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of such L/C Issuer relating to letters of credit as from time to time in effect.  Such customary fees and standard costs and charges are due and payable within ten (10) Business Days of demand and are nonrefundable.

 

(j)            Conflict with Letter of Credit Application.  Notwithstanding anything else to the contrary in this Agreement, in the event of any conflict between the terms hereof and the terms of any Letter of Credit Application, the terms hereof shall control.

 

(k)           Addition of an L/C Issuer.  A Revolving Credit Lender may become an additional L/C Issuer hereunder pursuant to a written agreement among the Borrower, the Administrative Agent and such Revolving Credit Lender.  The Administrative Agent shall notify the Revolving Credit Lenders of any such additional L/C Issuer.

 

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SECTION 2.04.  Swing Line Loans.  (a) The Swing Line Loans.  Subject to the terms and conditions set forth herein, the Swing Line Lender agrees to make loans (each such loan, a “Swing Line Loan”) to the Borrower from time to time on any Business Day during the Availability Period in an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Pro Rata Share of the Outstanding Amount of Revolving Credit Loans and L/C Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Revolving Credit Commitment; provided that after giving effect to any Swing Line Loan, the aggregate Outstanding Amount of the Revolving Credit Loans of any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations, plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Revolving Credit Commitment then in effect; provided, further, that, the Borrower shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan.  Within the foregoing limits, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.04, prepay under Section 2.05, and reborrow under this Section 2.04.  Each Swing Line Loan shall be a Base Rate Loan.  Immediately upon the making of a Swing Line Loan, each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Lender’s Pro Rata Share times the amount of such Swing Line Loan.

 

(b)           Borrowing Procedures.  Each Swing Line Borrowing shall be made upon the Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by telephone.  Each such notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $100,000 or a whole multiple of $100,000 in excess thereof, and (ii) the requested borrowing date, which shall be a Business Day.  Each such telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower.  Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Revolving Credit Lender) (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the proviso to the first sentence of Section 2.04(a), or (B) that one or more of the applicable conditions specified in Section 4.02 is not then satisfied (provided that the Swing Line Lender shall not be obligated to comply with any such notice received after 2:00 p.m. on the Business Day preceding the date of the proposed Swing Line Borrowing), then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrower.

 

(c)           Refinancing of Swing Line Loans.  (i) The Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the Borrower (which hereby

 

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irrevocably authorizes the Swing Line Lender to so request on its behalf), that each Revolving Credit Lender make a Base Rate Loan in an amount equal to such Lender’s Pro Rata Share of the amount of Swing Line Loans then outstanding.  Such request shall be made in writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.02, without regard to the minimum and multiples specified therein for the principal amount of Base Rate Loans, but subject to the unutilized portion of the Revolving Credit Commitments and the conditions set forth in Section 4.02.  The Swing Line Lender shall furnish the Borrower with a copy of the applicable Committed Loan Notice promptly after delivering such notice to the Administrative Agent.  Each Revolving Credit Lender shall make an amount equal to its Pro Rata Share of the amount specified in such Committed Loan Notice available to the Administrative Agent in immediately available funds for the account of the Swing Line Lender at the Administrative Agent’s Office not later than 1:00 p.m. on the day specified in such Committed Loan Notice, whereupon, subject to Section 2.04(c)(ii), each Revolving Credit Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount and the outstanding Swing Line Loans shall be deemed to have been refinanced in such amount.  The Administrative Agent shall remit the funds so received to the Swing Line Lender.

 

(ii)           If for any reason any Swing Line Loan cannot be refinanced by such a Revolving Credit Borrowing in accordance with Section 2.04(c)(i), the request for Base Rate Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Revolving Credit Lenders fund its risk participation in the relevant Swing Line Loan and each Revolving Credit Lender’s payment to the Administrative Agent for the account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such participation.

 

(iii)          If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of the Swing Line Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lender at a rate per annum equal to (i) from the date such payment is required through the first Business Day thereafter, the Federal Funds Rate from time to time in effect and (ii) thereafter, the rate applicable to Base Rate Loans.  A certificate of the Swing Line Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.

 

(iv)          Each Revolving Credit Lender’s obligation to make Revolving Credit Loans or to purchase and fund risk participations in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided that each Revolving Credit Lender’s obligation to make Revolving

 

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Credit Loans pursuant to this Section 2.04(c) is subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall relieve or otherwise impair the obligation of the Borrower to repay Swing Line Loans, together with interest as provided herein.

 

(d)           Repayment of Participations.

 

(i)            At any time after any Revolving Credit Lender has purchased and funded a risk participation in a Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Lender its Pro Rata Share of such payment (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s risk participation was funded) in the same funds as those received by the Swing Line Lender.

 

(ii)           If any payment received by the Swing Line Lender in respect of principal or interest on any Swing Line Loan is required to be returned by the Swing Line Lender under any of the circumstances described in Section 10.06 (including pursuant to any settlement entered into by the Swing Line Lender in its discretion), each Revolving Credit Lender shall pay to the Swing Line Lender its Pro Rata Share thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to (i) from the date of such demand through the first Business Day thereafter, the Federal Funds Rate from time to time in effect and (ii) thereafter, the rate applicable to Base Rate Loans.  The Administrative Agent will make such demand upon the request of the Swing Line Lender.

 

(e)           Interest for Account of Swing Line Lender.  The Swing Line Lender shall be responsible for invoicing the Borrower for interest on the Swing Line Loans.  Until each Revolving Credit Lender funds its Base Rate Loan or risk participation pursuant to this Section 2.04 to refinance such Lender’s Pro Rata Share of any Swing Line Loan, interest in respect of such Pro Rata Share shall be solely for the account of the Swing Line Lender.

 

(f)            Payments Directly to Swing Line Lender.  The Borrower shall make all payments of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

 

SECTION 2.05.  Prepayments.

 

(a)           Optional. (i) The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Term Loans and Revolving Credit Loans in whole or in part without premium or penalty; provided that (1) such notice must be received by the Administrative Agent not later than 12:30 p.m. (A) three (3) Business Days prior to any date of prepayment of Eurodollar Loans and (B) on the date of prepayment of Base Rate Loans; (2) any prepayment of Eurodollar Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; (3) any prepayment of Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding, (4)

 

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each prepayment of Term Loans pursuant to this Section 2.05(a)(i) shall be applied first, to the outstanding principal balance of Tranche B-1 Term Loans, second, to the outstanding principal balance of the Tranche B-2 Term Loans and, subject to clause (6) below, third, to the outstanding principal balance of the Tranche B-3 Term Loans, (5) any such voluntary prepayment of the Tranche B-1 Term Loans or Tranche B-2 Term Loans shall be applied to the remaining scheduled principal payments thereof in reverse order of maturity and (6) no voluntary prepayment of the Tranche B-3 Term Loans shall be permitted prior to December 31, 2012 unless (x) the Release Conditions shall be satisfied on the date of such prepayment and (y) the Fixed Rate Conversion Effective Date has not occurred prior to the date of such prepayment.  Each such notice shall specify the date and amount of such prepayment and the Class(es) and Type(s) of Loans to be prepaid.  The Administrative Agent will promptly notify each Appropriate Lender of its receipt of each such notice, and of the amount of such Lender’s Pro Rata Share of such prepayment.  If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.  Any prepayment of a Eurodollar Loan shall be accompanied by all accrued interest thereon, together with any additional amounts required pursuant to Section 3.05.  Each prepayment of the Loans pursuant to this Section 2.05(a) shall be paid to the Appropriate Lenders in accordance with their respective Pro Rata Shares.

 

(ii)           The Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part without premium or penalty; provided that (1) such notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the date of the prepayment, and (2) any such prepayment shall be in a minimum principal amount of $100,000 or a whole multiple of $100,000 in excess thereof or, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and amount of such prepayment.  If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.

 

(iii)          Notwithstanding anything to the contrary contained in this Agreement, the Borrower may rescind any notice of prepayment under Section 2.05(a)(i) or 2.05(a)(ii) if such prepayment would have resulted from a refinancing of all of the Facilities, which refinancing shall not be consummated or shall otherwise be delayed.

 

(b)           Mandatory.

 

(i)            Excess Cash Flow.

 

(A)          Quarterly.  Subject to the second proviso of clause (B) of this Section 2.05(b)(i), no later than the earlier of (x) 45 days after the end of each fiscal quarter of the Borrower (commencing with the fiscal quarter ending September 30, 2011) and (y) the date on which the financial statements with respect to such fiscal quarter have been delivered pursuant to Section 6.01(b) and the related Compliance Certificate has been delivered pursuant to Section 6.02(b), the Borrower shall cause outstanding Tranche B-1 Term Loans and Tranche B-2 Term Loans to be prepaid in an amount equal to (A) the Applicable ECF

 

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Percentage of Excess Cash Flow (if positive) for such fiscal quarter minus (B) the aggregate amount of voluntary prepayments of the Term Loans made pursuant to Section 2.05(a) during such fiscal quarter minus (C) the aggregate amount of Installment Payments made during such fiscal quarter; provided, that the amount of such prepayment with respect to any fiscal quarter shall be reduced to the extent necessary such that, after giving effect thereto, Liquidity (or, if the Revolving Credit Facility shall be unavailable, Unrestricted cash and Cash Equivalents) as of the date of such prepayment shall not be less than $10,000,000.

 

(B)           Annual.  No later than the earlier of (x) 90 days after the end of each fiscal year of the Borrower (commencing with the fiscal year ending on December 31, 2011 for the fiscal quarters ending September 30, 2011 through December 30, 2011) and (y) the date on which the financial statements with respect to such fiscal year have been delivered pursuant to Section 6.01(a) and the related Compliance Certificate has been delivered pursuant to Section 6.02(b), the Borrower shall cause outstanding Tranche B-1 Term Loans and Tranche B-2 Term Loans to be prepaid in an amount equal to the excess, if any, of (A) the Applicable ECF Percentage of Excess Cash Flow, if any, for such fiscal year (determined based on the audited financial statements delivered with respect to such fiscal year) over (B) the sum of (1) the aggregate principal balance of Term Loans prepaid pursuant to Section 2.05(b)(i)(A) with respect to the fiscal quarters contained in such fiscal year plus (2) the aggregate amount of voluntary prepayments of the Term Loans made pursuant to Section 2.05(a) during such fiscal year plus (3) the aggregate amount of Installment Payments made during such fiscal year plus (4) the Overpayment Amount, if any, with respect to the previous fiscal year; provided, that the amount of such prepayment with respect to any fiscal year shall be reduced to the extent necessary such that, after giving effect thereto, Liquidity (or, if the Revolving Credit Facility shall be unavailable, Unrestricted cash and Cash Equivalents) as of the date of such prepayment shall not be less than $10,000,000; provided, further, that if (X) the sum of (1) the aggregate principal balance of Term Loans prepaid pursuant to Section 2.05(b)(i)(A) with respect to the fiscal quarters contained in such fiscal year plus (2) the aggregate amount of voluntary prepayments of the Term Loans made pursuant to Section 2.05(a) during such fiscal year plus (3) the aggregate amount of Installment Payments made during such fiscal year plus (4) the Overpayment Amount, if any, with respect to the previous fiscal year shall exceed (Y) the Applicable ECF Percentage of Excess Cash Flow, if any, for such fiscal year (determined based on the audited financial statements delivered with respect to such fiscal year) (such excess, an “Overpayment Amount”), the payments, if any, due from the Borrower with respect to each fiscal quarter of the following fiscal years pursuant to Section 2.05(b)(i)(A) shall be reduced in an amount equal to the lesser of (x) the payment due for such fiscal quarter and (y) the amount of remaining excess, until such excess is reduced to zero.

 

(ii)           (A) If (x) the Borrower or any Restricted Subsidiary Disposes of any property or assets (other than any Disposition of any property or assets permitted by Section 7.05(a) through (e), (g), (h), (i), (n) or (o)) or (y) any Casualty Event occurs,

 

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which in the aggregate results in the realization or receipt by the Borrower or such Restricted Subsidiary of Net Cash Proceeds, the Borrower shall cause the Tranche B-1 Term Loans and Tranche B-2 Term Loans to be prepaid on or prior to the date which is ten (10) Business Days after the date of the realization or receipt of such Net Cash Proceeds in an amount equal to 100% of all Net Cash Proceeds received; provided that no such prepayment shall be required pursuant to this Section 2.05(b)(ii)(A) with respect to such portion of such Net Cash Proceeds that the Borrower shall have, within 5 Business Days of such date of realization or receipt, given written notice to the Administrative Agent of its intent to reinvest or use such Net Cash Proceeds in accordance with Section 2.05(b)(ii)(B) or (C), as the case may be (which notice may only be provided if no Default has occurred and is then continuing); provided, that no such reinvestment right shall be available with respect to any Net Cash Proceeds received by the Borrower or any Restricted Subsidiary in respect of any Disposition of any Equity Interests of any Unrestricted Subsidiary.  If the Borrower or any Restricted Subsidiary receives any distributions pursuant to Section 6.19(c), the Borrower shall cause the Term Loans to be prepaid on or prior to the date which is ten (10) Business Days after the sale giving rise to such distribution in an amount equal to such distribution.

 

(B)           With respect to up to $15,000,000 of Net Cash Proceeds in the aggregate during any fiscal year of the Borrower realized or received with respect to Dispositions by the Borrower or any of its Restricted Subsidiaries (other than any Disposition specifically excluded from the application of Section 2.05(b)(ii)(A)), the Borrower and the Restricted Subsidiaries may reinvest all or any portion of such Net Cash Proceeds in assets useful for its business within one hundred eighty (180) days following receipt of such Net Cash Proceeds; provided, that (i) so long as a Default shall have occurred and be continuing, the Borrower and the Restricted Subsidiaries (x) shall not be permitted to make any such reinvestments (other than pursuant to a legally binding commitment that the Borrower or a Restricted Subsidiary entered into at a time when no Default is continuing) and (y) shall not be required to apply such Net Cash Proceeds which have been previously applied to prepay Revolving Credit Loans to the prepayment of Term Loans until such time as the relevant investment period has expired and no Default is continuing and (ii) if any Net Cash Proceeds are no longer intended to be or cannot be so reinvested at any time after delivery of a notice of reinvestment election or if any Net Cash Proceeds are not reinvested by the expiration of the relevant time period set forth above, an amount equal to any such Net Cash Proceeds shall be applied to the prepayment of the Term Loans as set forth in this Section 2.05(b)(ii) within five (5) Business Days after the Borrower reasonably determines that such Net Cash Proceeds are no longer intended to be or cannot be so reinvested or the expiration of such time period.

 

(C)           With respect to any Net Cash Proceeds realized or received with respect to any Casualty Event, the Borrower and the Restricted Subsidiaries may use all or any portion of such Net Cash Proceeds to replace or restore any properties or assets in respect of which such Net Cash Proceeds were paid (x) within fifteen (15) months following receipt of such Net Cash Proceeds or (y) if

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

the Borrower or a Restricted Subsidiary enters into a legally binding commitment to use such Net Cash Proceeds before the expiration of the fifteen (15) month period referred to in the preceding clause (x), within one hundred and eighty (180) days of the end of such 15-month period; provided that (i) the amount of such Net Cash Proceeds, together with other cash available to the Borrower and the Restricted Subsidiaries and permitted to be spent by them on Capital Expenditures during the relevant period pursuant to Section 7.16, equals at least 100% of the estimated cost of replacement or restoration of the properties or assets in respect of which such Net Cash Proceeds were paid as determined by the Borrower and as supported by such estimates or bids from contractors or subcontractors or such other supporting information as the Administrative Agent may reasonably request, (ii) the Borrower has delivered to the Administrative Agent a certificate of a Responsible Officer on or prior to the date of the required prepayment stating that such Net Cash Proceeds shall be used to replace or restore any properties or assets in respect of which such Net Cash Proceeds were paid (x) within fifteen (15) months following receipt of such Net Cash Proceeds or (y) if the Borrower or a Restricted Subsidiary enters into a legally binding commitment to use such Net Cash Proceeds before the expiration of the fifteen (15) month period referred to in the preceding clause (x), within one hundred and eighty (180) days of the end of such 15-month period (which certificate shall set forth the estimates of the Net Cash Proceeds to be so expended) and also certifying the Borrower’s determination as required by preceding clause (i) and certifying the sufficiency of business interruption insurance as required by succeeding clause (iii), (iii) the Borrower has delivered to the Administrative Agent such evidence as the Administrative Agent may reasonably request in form and substance reasonably satisfactory to the Administrative Agent establishing that the Borrower and the Restricted Subsidiaries have sufficient business interruption insurance and that the Borrower and the Restricted Subsidiaries will receive payments thereunder in such amounts and at such times as are necessary, together with other funds the Borrower and the Restricted Subsidiaries expect to be reasonably available to them, to satisfy all obligations and expenses of the Borrower and the Restricted Subsidiaries (including, without limitation, all debt service requirements, including pursuant to this Agreement), without any delay or extension thereof, for the period from the date of the respective casualty, condemnation or other event giving rise to the Casualty Event and continuing through the completion of the replacement or restoration of respective properties or assets, and (iv) the entire amount of the Net Cash Proceeds of such Casualty Event shall be deposited with the Administrative Agent pursuant to cash collateral arrangements reasonably satisfactory to the Borrower and the Administrative Agent whereupon such Net Cash Proceeds shall be disbursed at the direction of the Borrower from time to time as needed to pay actual costs incurred by the Borrower and the Restricted Subsidiaries in connection with the replacement or restoration of the respective properties or assets (pursuant to such certification requirements as may be reasonably established by the Administrative Agent), it being understood and agreed that at any time while an Event of Default has occurred and is continuing, the Required Lenders may direct the Administrative Agent (in which case the

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Administrative Agent shall, and is hereby authorized by the Borrower to, follow said directions) to apply any or all proceeds then on deposit pursuant to such cash collateral arrangements to the repayment of Obligations hereunder; provided, further, that (i) the aggregate amount applied to replace or rebuild assets of the Borrower and the Restricted Subsidiaries (other than assets consisting of casino space and assets therein) shall not exceed $37,500,000 with respect to any Casualty Event, (ii) so long as a Default shall have occurred and be continuing, (x) the Borrower and the Restricted Subsidiaries shall not be permitted to use any such Net Cash Proceeds (other than pursuant to a legally binding commitment that the Borrower or a Restricted Subsidiary entered into at a time when no Default is continuing) and (y) the Borrower shall not be required to apply such Net Cash Proceeds which have been previously applied to prepay Revolving Credit Loans to the prepayment of Term Loans until such time as the relevant use period has expired and no Default is continuing and (iii) if any Net Cash Proceeds are no longer intended to be or cannot be so used at any time after delivery of a notice of election to replace or restore or if any Net Cash Proceeds are not used by the expiration of the relevant time periods set forth above, an amount equal to any such Net Cash Proceeds shall be applied to the prepayment of the Term Loans as set forth in this Section 2.05(b)(ii) within five (5) Business Days after the Borrower reasonably determines that such Net Cash Proceeds are no longer intended to be or cannot be so used or the expiration of such time periods.

 

(D)          If the Borrower or any Restricted Subsidiary Disposes of any property or assets (other than any Disposition of any property or assets permitted by Section 7.05(a) through (e), (g), (h), (i), (n) or (o)) or (y)) and the outstanding principal balance of the Tranche B-1 Term Loans and Tranche B-2 Term Loans shall have been repaid in full prior to such Disposition (or shall be repaid in full using a portion of the Net Cash Proceeds thereof), the Borrower and the Restricted Subsidiaries will be required to apply an amount equal to all Net Cash Proceeds that are received from such Disposition (excluding amounts applied to repayment of the Term B-1 Loans and Term B-2 Loans) within 360 days of the receipt thereof either (1)  to reinvest in assets useful for its business or (2) to repay the Tranche B-3 Term Loans and/or (3) a combination of prepayment and reinvestment as permitted by the foregoing clauses (1) and (2), in each case as the Borrower shall select.

 

(iii)          If the Borrower or any Restricted Subsidiary incurs or issues any Indebtedness not expressly permitted to be incurred or issued pursuant to Section 7.03, the Borrower shall cause Loans (first, the Tranche B-1 Term Loans, second, the  Tranche B-2 Term Loans, third, the Swing Line Loans and fourth, the Revolving Credit Loans, but excluding the Tranche B-3 Term Loans) to be prepaid in an amount equal to 100% of all Net Cash Proceeds received therefrom on or prior to the date which is five (5) Business Days after the receipt of such Net Cash Proceeds.

 

(iv)          If any Holding Company, the Borrower or any Restricted Subsidiary receives any cash proceeds from any capital contribution or any sale or issuance of its Equity Interests (including any Permitted Equity Issuance pursuant to Section 8.05), the

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Borrower shall cause the Tranche B-1 Term Loans and Tranche B-2 Term Loans to be prepaid in an amount equal to 100% of all Net Cash Proceeds received therefrom (net of the Applicable Clawback Amount with respect thereto, as applicable) on or prior to the date which is five (5) Business Days after the receipt of such Net Cash Proceeds; provided, that no such prepayment shall be required with respect to:

 

(A)          issuances of Equity Interests to the Borrower or any Restricted Subsidiary by any Restricted Subsidiary of the Borrower;

 

(B)           any capital contribution to any Restricted Subsidiary of the Borrower made by the Borrower or any other Restricted Subsidiary;

 

(C)           (1) the Net Cash Proceeds of Permitted Equity Issuances occurring on the Closing Date to the extent applied to the Closing Date Prepayment, (2) the Net Cash Proceeds of any Permitted Holdco Convertible Indebtedness Equity Issuance to the extent applied to repay, prepay, redeem, purchase or otherwise satisfy any Holdco Convertible Indebtedness, (3) the Net Cash Proceeds of a Qualified IPO to the extent applied to payment by Holdco of Tax Distribution True-Up Amount Payments or (4) any contribution to the Borrower or its Subsidiaries with the proceeds of Cure Note Indebtedness to the extent applied to cure or prevent a Specified Event (as defined in the Equityholders Agreement); and

 

(D)          the Net Cash Proceeds attributable to Permitted Equity Issuances; provided, that (1) the Borrower shall have delivered to the Administrative Agent, on or prior to the date five (5) Business Days (or, in the case of a Qualified IPO, one hundred eighty (180) days) after such issuance, a written notice describing the specific Permitted Acquisition, Investment or Capital Expenditure to which the Net Cash Proceeds thereof shall be applied, (2) the Net Cash Proceeds thereof shall be applied within one hundred eighty (180) days of delivery of the notice described in the foregoing clause (1) to (x) pay the consideration in respect of a Permitted Acquisition to the extent permitted by Section 7.02(i), (y) make an Investment to the extent permitted by Section 7.02(n) or (z) make Capital Expenditures to the extent permitted by Section 7.16, which Permitted Acquisition, Investment or Capital Expenditure, as applicable, was described in the notice delivered pursuant to the foregoing clause (1), (3) such Net Cash Proceeds are maintained in a segregated deposit account subject to a Control Agreement in favor of the Administrative Agent until applied as described in the foregoing clause (2) and (4) if any Net Cash Proceeds are no longer intended to be or cannot be applied as described in the foregoing clause (2) at any time or if any Net Cash Proceeds are not so applied by the expiration of the relevant time period set forth above, an amount equal to any such Net Cash Proceeds shall be applied to the prepayment of the Tranche B-1 Term Loans and Tranche B-2 Term Loans as set forth in this Section 2.05(b)(iv) within five (5) Business Days after the Borrower reasonably determines that such Net Cash Proceeds are no longer intended to be or cannot be so applied or the expiration of such time period.

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(v)           In the event that (x) any GVR Holding Company shall Dispose of any Equity Interests of GVR Holdco 2, GVR Holdco 1 or GVR (other than to the Borrower or any of its wholly-owned Subsidiaries or to a Person that holds the Equity Interests of such Person on the Closing Date), or (y) GVR Holdco 2, GVR Holdco 1 or GVR shall sell or issue any of its respective Equity Interests (other than to the Borrower or any of its wholly-owned Subsidiaries or any Person that holds the Equity Interests of such Person on the Closing Date), then (A) the Borrower shall cause the applicable GVR Entities to distribute all Net Cash Proceeds of such Disposition, sale or issuance (other than Net Cash Proceeds received by GVR Holdco 1 or GVR to the extent such Net Cash Proceeds are required to be applied, and are applied, to prepayment of Indebtedness under the GVR Credit Agreement) to the Borrower and (B) the Borrower shall cause the Tranche B-1 Term Loans and Tranche B-2 Term Loans to be prepaid in an amount equal to 100% of such Net Cash Proceeds.

 

(vi)          If for any reason the aggregate Revolving Credit Exposures at any time exceeds the Aggregate Commitments then in effect, the Borrower shall promptly prepay or cause to be promptly prepaid Revolving Credit Loans and Swing Line Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided that the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(b)(vi) unless after the prepayment in full of the Revolving Credit Loans and Swing Line Loans the aggregate Revolving Credit Exposures exceeds the Aggregate Commitments then in effect.

 

(vii)         If at any time Unrestricted cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries exceeds $15,000,000 for any period of five consecutive Business Days, the Borrower shall immediately repay outstanding Revolving Credit Loans and/or Swing Line Loans on the last Business Day of such period (without a corresponding reduction in the Revolving Credit Commitments) in an amount equal to such excess.

 

(viii)        On the Closing Date, the Borrower shall prepay the Tranche B-1 Term Loans in an aggregate amount equal to $25,000,000 (such prepayment, the “Closing Date Prepayment”).  Such prepayment shall be applied to the remaining scheduled principal payments of the Tranche B-1 Term Loans in inverse order of maturity.

 

(ix)           Each prepayment of the Tranche B-1 Term Loans and Tranche B-2 Term Loans pursuant to clauses (i), (ii) (other than paragraph (D) thereof), (iii), (iv) or (v) of this Section 2.05(b) shall be applied (A) first, to prepay the next eight scheduled principal payments in respect of each of the Tranche B-1 Term Loans and the Tranche B-2 Loans on a pro rata basis in the order of maturity, (B) second, to prepay the remaining scheduled principal payments in respect of the Tranche B-1 Term Loans in inverse order of maturity and (C) third, to prepay the remaining scheduled principal payments in respect of the Tranche B-2 Term Loans in inverse order of maturity.

 

(x)            The Borrower shall notify the Administrative Agent in writing of any mandatory prepayment and/or commitment reduction required to be made pursuant to clauses (i), (ii), (iii), (iv) or (v) of this Section 2.05(b) at least three (3) Business Days

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

prior to the date of such prepayment and/or commitment reduction.  Each such notice shall specify the date of such prepayment and/or commitment reduction and provide a reasonably detailed calculation of the amount of such prepayment and/or commitment reduction and, in the case of any prepayment of the Term Loans, the application thereof to the remaining scheduled principal payments thereof.  The Administrative Agent will promptly notify each Appropriate Lender of the contents of the Borrower’s notice and of such Appropriate Lender’s Pro Rata Share of the prepayment and/or commitment reduction.  Any Term Lender may elect, by delivering written notice to the Administrative Agent and the Borrower no later than 5:00 p.m. one (1) Business Day after the date of such Term Lender’s receipt of notice from the Administrative Agent regarding such prepayment, that any mandatory prepayment of Installment Payments otherwise required to be made with respect to the Term Loans held by such Term Lender pursuant to Section 2.05(b) not be made (the aggregate amount of such prepayments of Installment Payments declined, the “Declined Prepayment Amount”). If a Term Lender fails to deliver notice setting forth such rejection of a prepayment to the Administrative Agent within the time frame specified above or such notice fails to specify the principal amount of the Installment Payments to be rejected, any such failure will be deemed an acceptance of the total amount of such mandatory prepayment of Term Loans.  In the event that the Declined Prepayment Amount is greater than $0, such Declined Prepayment Amount shall instead be deposited by the Borrower to a blocked account (the “Installment Payment Reserve Account”) at DBTCA (or another commercial bank selected in compliance with Section 9.09).

 

(xi)           The Borrower hereby grants to the Administrative Agent, for the benefit of Secured Parties, a security interest in the Installment Payment Reserve Account and all cash and balances therein and all proceeds of the foregoing, as security for the Obligations.  Cash maintained in the Installment Payment Reserve Account may be invested in readily available Cash Equivalents.  On the due date for any Installment Payments, the Administrative Agent shall apply funds on deposit in the Installment Payment Reserve Account to payment of such Installment Payments ratably to the extent of the funds on deposit therein.

 

(xii)          Each prepayment of Term Loans, Revolving Credit Loans and Swing Line Loans pursuant to this Section 2.05(b) shall be paid to the Appropriate Lenders entitled thereto in accordance with their respective Pro Rata Shares.

 

(c)           Funding Losses, Etc.  All prepayments under this Section 2.05 shall be made together with, in the case of any such prepayment of a Eurodollar Loan on a date other than the last day of an Interest Period thereof, any amounts owing in respect of such Eurodollar Loan pursuant to Section 3.05.  Notwithstanding any of the other provisions of this Section 2.05, so long as no Default shall have occurred and be continuing, if any prepayment of Eurodollar Loans is required to be made under Section 2.05(b), other than on the last day of the Interest Period thereof, in lieu of making any payment pursuant to Section 2.05(b) in respect of any such Eurodollar Loan other than on the last day of the Interest Period thereof, the Borrower may, in its sole discretion, deposit the amount of any such prepayment otherwise required to be made thereunder into a Cash Collateral Account until the last day of such Interest Period, at which time the Administrative Agent shall be authorized (without any further action by or

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

notice to or from the Borrower or any other Loan Party) to apply such amount to the prepayment of such Loans in accordance with Section 2.05(b).  Upon the occurrence and during the continuance of any Default, the Administrative Agent shall also be authorized (without any further action by or notice to or from the Borrower or any other Loan Party) to apply such amount to the prepayment of the outstanding Loans and Cash Collateralization of Letters of Credit in accordance with the applicable provisions of Section 2.05(b).

 

SECTION 2.06.  Increase, Termination or Reduction of Revolving Credit Commitments.

 

(a)           Increase of Revolving Credit Commitments Upon Closing Date Prepayment.  Upon the consummation of the Closing Date Prepayment in full on the Closing Date, without any further action by any party hereto, the Revolving Credit Commitment of each Revolving Credit Lender shall increase automatically by such Revolving Credit Lender’s Pro Rata Share of the amount of the Closing Date Prepayment.  After giving effect to such increase, as of the Closing Date, the Aggregate Commitments of all Revolving Credit Lenders shall be $125,000,000.

 

(b)           Optional.  The Borrower may, upon written notice to the Administrative Agent, terminate the unused Revolving Credit Commitments, or from time to time permanently reduce the unused Revolving Credit Commitments; provided that (i) any such notice shall be received by the Administrative Agent three (3) Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess thereof and (iii) if, after giving effect to any reduction of the Revolving Credit Commitments, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds the amount of the Revolving Credit Facility, such sublimit shall be automatically reduced by the amount of such excess.  The amount of any Revolving Credit Commitment reduction shall not be applied to the Letter of Credit Sublimit or the Swing Line Sublimit unless otherwise specified by the Borrower.  Notwithstanding the foregoing, the Borrower may rescind or postpone any notice of termination of the Revolving Credit Commitments if such termination would have resulted from a refinancing of the Revolving Credit Facility, which refinancing shall not be consummated or otherwise shall be delayed.

 

(c)           Application of Revolving Credit Commitment Reductions; Payment of Fees.  The Administrative Agent will promptly notify the Revolving Credit Lenders of any termination or reduction of unused portions of the Letter of Credit Sublimit, the Swing Line Sublimit or the Revolving Credit Commitments under this Section 2.06.  Upon any reduction of Revolving Credit Commitments, the Revolving Credit Commitment of each Revolving Credit Lender shall be reduced by such Lender’s Pro Rata Share of the amount by which such Revolving Credit Commitments are reduced.  All commitment fees accrued until the effective date of any termination or reduction of the Revolving Credit Commitments shall be paid on the effective date of such termination or reduction.

 

85

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

SECTION 2.07.  Repayment of Loans.

 

(a)           Tranche B-1 Term Loans.

 

(i)            The Borrower shall repay to the Administrative Agent for the ratable account of the Tranche B-1 Term Lenders, on the last Business Day of each calendar quarter, an aggregate principal amount equal to 0.25% of the aggregate principal amount of the Tranche B-1 Loans outstanding on the Closing Date (each such repayment, a “Tranche B-1 Installment Payment”).

 

(ii)           The Borrower shall repay to the Administrative Agent for the ratable account of the Tranche B-1 Term Lenders on the Maturity Date the aggregate principal amount of all Tranche B-1 Term Loans outstanding on such date.

 

(b)           Tranche B-2 Term Loans.

 

(i)            The Borrower shall repay to the Administrative Agent for the ratable account of the Tranche B-2 Term Lenders, on the last Business Day of each calendar quarter, an aggregate principal amount equal to 0.25% of the aggregate principal amount of the Tranche B-2 Loans outstanding on the Closing Date (each such repayment, a “Tranche B-2 Installment Payment”).

 

(ii)           The Borrower shall repay to the Administrative Agent for the ratable account of the Tranche B-2 Term Lenders on the Maturity Date the aggregate principal amount of all Tranche B-2 Term Loans outstanding on such date.

 

(c)           Tranche B-3 Term Loans.  The Borrower shall repay to the Administrative Agent for the ratable account of the Tranche B-3 Term Lenders on the Tranche B-3 Maturity Date the aggregate principal amount of all Tranche B-3 Term Loans outstanding on such date.

 

(d)           Revolving Credit Loans.  The Borrower shall repay to the Administrative Agent for the ratable account of the Revolving Credit Lenders on the Maturity Date the aggregate principal amount of all Revolving Credit Loans outstanding on such date.

 

(e)           Swing Line Loans.  The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) the date ten (10) Business Days after such Loan is made and (ii) the Maturity Date.

 

SECTION 2.08.  Interest.  (a) Floating Rate Loans.  Subject to the provisions of Section 2.08(b) and (c), (i) each Eurodollar Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Adjusted LIBO Rate for such Interest Period plus the Applicable Rate; (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable Borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate; and (iii) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from the applicable Borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate for Base Rate Loans.

 

86

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(b)           Fixed Rate Conversion.

 

(i)            The Administrative Agent may, with the consent or at the direction of all Initial Tranche B-3 Term Lenders, (A) deliver to the Borrower a written notice (a “Fixed Rate Conversion Notice”) substantially in the form of Exhibit O-1 hereto with respect to all or a portion of the Tranche B-3 Term Loans (such portion of the Tranche B-3 Term Loans, from and after the Fixed Rate Conversion Effective Date, the “Fixed Rate Tranche B-3 Term Loans”) and (B) at any time during the forty-five (45) days following delivery of a Fixed Rate Conversion Notice, deliver to the Borrower a written notice (a “Fixed Rate Conversion Effective Date Notice”) substantially in the form of Exhibit O-2 hereto, specifying the Fixed Rate Conversion Effective Date (and, if the Administrative Agent shall not deliver a Fixed Rate Conversion Notice during such period, such Fixed Rate Conversion Notice shall be deemed revoked); provided, that no Fixed Rate Conversion Notice may be delivered with respect to any portion of the Tranche B-3 Term Loans for which a Monthly Interest Notice has been given in accordance with Section 2.08(d) below and no Fixed Rate Conversion Notice may be given within thirty (30) days of the date on which a prior Fixed Rate Conversion Notice has been revoked.  If the Fixed Rate Tranche B-3 Term Loans shall be less than all outstanding Tranche B-3 Term Loans, each Tranche B-3 Term Lender shall (from and after the Fixed Rate Conversion Effective Date) be deemed to hold its ratable share of the Fixed Rate Tranche B-3 Term Loans and remaining Tranche B-3 Term Loans according to its Pro Rata Share.  The Administrative Agent may, with the consent or at the direction of all Initial Tranche B-3 Term Lenders, revoke or rescind any Fixed Rate Conversion Notice.  No more than one Fixed Rate Conversion Notice may be outstanding at any time and, from and after the Fixed Rate Conversion Effective Date for any Tranche B-3 Term Loans, no further Fixed Rate Conversion Notices may be given for the remaining Tranche B-3 Term Loans.

 

(ii)           From and after the Fixed Rate Conversion Effective Date, the Fixed Rate Tranche B-3 Term Loans shall bear interest on the outstanding principal amount thereof at a rate per annum equal to the Tranche B-3 Fixed Interest Rate.  Unless and until any Tranche B-3 Term Loans have become Fixed Rate Tranche B-3 Term Loans, such Tranche B-3 Term Loans shall bear interest in accordance with Section 2.08(a).

 

(c)           Default Rate.  The Borrower shall pay interest on (i) any past due amount of principal of any Loan due hereunder (and, on and after the occurrence of an Event of Default notified to the Borrower by the Administrative Agent (at the direction of the Required Lenders), the principal amount of all outstanding Loans and L/C Borrowings not then overdue) at a fluctuating interest rate per annum at all times equal to the Default Rate and (ii) any past due amount of interest, fees or other amounts (other than amounts subject to clause (i) above) at a rate per annum equal to the Base Rate plus the Applicable Rate for Base Rate Loans plus two percent (2.0%), in each case, to the fullest extent permitted by applicable Laws.  Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(d)           Interest Payment Date.

 

(i)            Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

 

(ii)           The Administrative Agent may, with the consent or at the direction of all Initial Tranche B-3 Term Lenders, deliver to the Borrower a written notice (a “Monthly Interest Notice”) substantially in the form of Exhibit O-3 hereto specifying that interest on all or a portion of the Tranche B-3 Term Loans not constituting Fixed Rate Tranche B-3 Term Loans shall thereafter be payable on a monthly basis; provided, that (A) no Monthly Interest Notice may delivered prior to December 31, 2011 and (B) any Tranche B-3 Term Loans as to which such a Monthly Interest Notice is given may not thereafter be converted into Fixed Rate Tranche B-3 Term Loans.  From and after receipt by the Borrower of a Monthly Interest Notice, Interest Payment Dates with respect to the portion of the Tranche B-3 Term Loans as to which such notice is given shall occur on a monthly basis in accordance with the definition of “Interest Payment Date” beginning with the Interest Period immediately following the end of the then-current Interest Period.

 

(e)           Until the day that is three (3) Business Days after the Closing Date, each Loan shall be a Base Rate Loan.

 

(f)            All computations of interest hereunder shall be made in accordance with Section 2.10.

 

SECTION 2.09.  Fees.  In addition to certain fees described in Sections 2.03(h) and (i):

 

(a)           Commitment Fee.  The Borrower shall pay to the Administrative Agent for the account of each Revolving Credit Lender in accordance with its Pro Rata Share, a commitment fee equal to the Applicable Rate with respect to commitment fees times the actual daily Revolving Credit Availability; provided that any commitment fee accrued with respect to the Revolving Credit Commitment of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower so long as such Lender shall be a Defaulting Lender except to the extent that such commitment fee shall otherwise have been due and payable by the Borrower prior to such time; provided, further, that no commitment fee shall accrue on the Revolving Credit Commitment of a Defaulting Lender so long as such Lender shall be a Defaulting Lender.  The commitment fee shall accrue at all times from the Closing Date until the Maturity Date, including at any time during which one or more of the conditions in Article 4 is not met, and shall be due and payable monthly in arrears on the last Business Day of each calendar month, commencing with the first such date to occur after the Closing Date, and on the Maturity Date.  The commitment fee shall be calculated monthly in arrears.

 

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(b)           Duration Fee.  The Borrower shall pay to the Administrative Agent for the account of each Tranche B-3 Term Lender in accordance with its Pro Rata Share, (i) on the fifth anniversary of the Closing Date, a duration fee equal to 1.00% of the aggregate outstanding principal amount of Tranche B-3 Term Loans (if any) as of such date and (ii) on the sixth anniversary of the Closing Date, a duration fee equal to 1.00% of the aggregate outstanding principal amount of Tranche B-3 Term Loans (if any) as of such date.

 

(c)           Other Fees.  The Borrower shall pay to the Agents the fees set forth in the Fee Letter and such other fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever (except as expressly agreed between the Borrower and the applicable Agent).

 

SECTION 2.10.  Computation of Interest and Fees.  All computations of interest for Base Rate Loans when the Base Rate is determined by the Prime Rate shall be made on the basis of a year of three hundred and sixty-five (365) days and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a three hundred and sixty (360) day year and actual days elapsed.  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid; provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear interest for one (1) day.  Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.SECTION 2.11.  Evidence of Indebtedness.  (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and evidenced by one or more entries in the Register maintained by the Administrative Agent, acting solely for purposes of Treasury Regulation Section 5f.103-1(c), as agent for the Borrower, in each case in the ordinary course of business.  The accounts or records maintained by the Administrative Agent and each Lender shall be prima facie evidence absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note or Notes payable to such Lender, which shall evidence such Lender’s Loans of the applicable Class or Classes in addition to such accounts or records.  Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.

 

(b)           In addition to the accounts and records referred to in Section 2.11(a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records and, in the case of the Administrative Agent, entries in the Register, evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing Line Loans.  In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters,

 

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the accounts and records of the Administrative Agent shall control in the absence of manifest error.

 

(c)           Entries made in good faith by the Administrative Agent in the Register pursuant to Sections 2.11(a) and (b), and by each Lender in its account or accounts pursuant to Sections 2.11(a) and (b), shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrower to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender, under this Agreement and the other Loan Documents, absent manifest error; provided that the failure of the Administrative Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrower under this Agreement and the other Loan Documents.

 

SECTION 2.12.  Payments Generally.  (a) All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  All payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute to each Lender its Pro Rata Share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent after 2:00 p.m. shall in each case be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.

 

(b)           If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be; provided that, if such extension would cause payment of interest on or principal of Eurodollar Loans to be made in the next succeeding calendar month, such payment shall be made on the immediately preceding Business Day.

 

(c)           Unless the Borrower or any Lender has notified the Administrative Agent, prior to the date any payment is required to be made by it to the Administrative Agent hereunder, that the Borrower or such Lender, as the case may be, will not make such payment, the Administrative Agent may assume that the Borrower or such Lender, as the case may be, has timely made such payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person entitled thereto.  If and to the extent that such payment was not in fact made to the Administrative Agent in immediately available funds, then:

 

(i)            if the Borrower failed to make such payment, each Lender shall forthwith on demand repay to the Administrative Agent the portion of such assumed payment that was made available to such Lender in immediately available funds, together with interest thereon in respect of each day from and including the date such amount was made available by the Administrative Agent to such Lender to the date such amount is repaid to

 

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the Administrative Agent in immediately available funds at the Federal Funds Rate from time to time in effect; and

 

(ii)           if any Lender failed to make such payment, such Lender shall forthwith on demand pay to the Administrative Agent the amount thereof in immediately available funds, together with interest thereon for the period from the date such amount was made available by the Administrative Agent to the Borrower to the date such amount is recovered by the Administrative Agent (the “Compensation Period”) at a rate per annum equal to (i) from the date such amount was made available through the first Business Day thereafter, the Federal Funds Rate from time to time in effect and (ii) thereafter, the rate applicable to the applicable Loan made to the Borrower.  When such Lender makes payment to the Administrative Agent (together with all accrued interest thereon), then such payment amount (excluding the amount of any interest which may have accrued and been paid in respect of such late payment) shall constitute such Lender’s Loan included in the applicable Borrowing.  If such Lender does not pay such amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent may make a demand therefor upon the Borrower, and the Borrower shall pay such amount to the Administrative Agent, together with interest thereon for the Compensation Period at a rate per annum equal to the rate of interest applicable to the applicable Borrowing.  Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Revolving Credit Commitment or to prejudice any rights which the Administrative Agent or the Borrower may have against any Lender as a result of any default by such Lender hereunder.

 

A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under this Section 2.12(c) shall be conclusive, absent manifest error.

 

(d)           If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article 2, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set forth in Article 4 are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.

 

(e)           The obligations of the Lenders hereunder to make Loans and to fund participations in Letters of Credit and Swing Line Loans are several and not joint.  The failure of any Lender to make any Loan or to fund any such participation on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or purchase its participation.

 

(f)            Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

 

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(g)           Whenever any payment received by the Administrative Agent under this Agreement or any of the other Loan Documents is insufficient to pay in full all amounts due and payable to the Administrative Agent and the Lenders under or in respect of this Agreement and the other Loan Documents on any date, such payment shall be distributed by the Administrative Agent and applied by the Administrative Agent and the Lenders to such due and payable amounts in the order of priority set forth in Section 8.04.  If the Administrative Agent receives funds for application to the Obligations of the Loan Parties under or in respect of the Loan Documents under circumstances for which the Loan Documents do not specify the manner in which such funds are to be applied, the Administrative Agent shall (i) apply such funds to amounts then due and payable in the order of priority set forth in Section 8.04 and (ii) thereafter, distribute such funds to each of the Lenders in accordance with such Lender’s pro rata share of the sum of (A) the Outstanding Amount of all Loans outstanding at such time and (B) the Outstanding Amount of all L/C Obligations outstanding at such time, in repayment or prepayment of such of the outstanding Loans or other Obligations then owing to such Lender.

 

SECTION 2.13.  Sharing of Payments.  If, other than as expressly provided elsewhere herein, any Lender shall obtain on account of the Loans of any Class made by it, or the participations in L/C Obligations and Swing Line Loans held by it, any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Administrative Agent of such fact, and (b) purchase from the other applicable Lenders such participations in the Loans of such Class made by them and/or such subparticipations in the participations in L/C Obligations or Swing Line Loans held by them, as the case may be, as shall be necessary to cause such purchasing Lender to share the excess payment in respect of such Loans or such participations, as the case may be, pro rata with each of them; provided that (x) if all or any portion of such excess payment is thereafter recovered from the purchasing Lender under any of the circumstances described in Section 10.06 (including pursuant to any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that extent be rescinded and each other applicable Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s ratable share (according to the proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered, without further interest thereon, (y) the provisions of this Section 2.13 shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including payments to an L/C Issuer pursuant to the L/C Back-Stop Arrangements) or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant (other than any Holding Company, the Borrower or any of its Subsidiaries), and (z) unless expressly provided in Section 8.04 to the contrary, nothing in this Section 2.13 shall be construed to limit the applicability of Section 8.04 in the circumstances where Section 8.04 is applicable in accordance with its terms.  The Borrower agrees that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by applicable Law, exercise all its rights of payment (including the right of setoff, but subject to Section 10.09) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation.  The Administrative Agent will keep records (which shall be conclusive and binding in the absence of manifest error) of participations purchased under this Section 2.13 and

 

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will in each case notify the Lenders following any such purchases or repayments.  Each Lender that purchases a participation pursuant to this Section 2.13 shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased.

 

SECTION 2.14.  Maturity Date Extension.  Prior to (but not less than 30 days nor more than 45 days prior to) the applicable Extension Date, the Borrower may make a written request to the Administrative Agent (each, an “Extension Request”), who shall forward a copy of each such request to each Lender, that the Maturity Date then in effect be extended to the date occurring twelve (12) months after such then existing Maturity Date.  Such request shall be accompanied by a certificate of a Responsible Officer of the Borrower certifying that, at the time such request is delivered (i) no Default has occurred and is continuing and (ii) the Borrower is in compliance on a Pro Forma Basis with (x) each of the covenants set forth in Section 7.11 and (y) in the case of the second Extension Request delivered pursuant to this Section 2.14 (i.e., in respect of the Extension Date described in clause (ii) of the definition thereof), a Total Leverage Ratio of less than 6.20:1.00, in each case as of the last day of the most recently ended Test Period (setting forth in reasonable detail the calculation required to establish such compliance).  Following the delivery of an Extension Request, if (a) on the Business Day preceding the applicable Extension Date, the Borrower shall have paid to the Administrative Agent (for the account of each Lender), a non-refundable extension fee with respect to such Extension Request equal to 1.00% of the sum of (x) the aggregate outstanding principal amount of Tranche B-1 Term Loans and Tranche B-2 Term Loans of such Lender on such day and (y) the Revolving Credit Commitment of such Lender on such day (or, after the termination thereof, the Revolving Credit Exposure of such Lender on such day), (b) as of such Extension Date, (i) no Default has occurred and is continuing and (ii) the representations and warranties of the Borrower and each other Loan Party contained in Article 5 or any other Loan Document shall be true and correct in all material respects on and as of such date (provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided, further that, any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such respective dates) and (c) the Borrower shall have delivered to the Administrative Agent an officer’s certificate of a Responsible Officer of the Borrower, dated as of the Extension Date, certifying that (I) the conditions set forth in the preceding clause (b) are satisfied and (II) the Borrower is in compliance on a Pro Forma Basis with (x) each of the covenants set forth in Section 7.11 and (y) in the case of the second Extension Request delivered pursuant to this Section 2.14 (i.e., in respect of the Extension Date described in clause (ii) of the definition thereof), a Total Leverage Ratio of less than 6.20:1.00, in each case as of the last day of the most recently ended Test Period (setting forth in reasonable detail the calculation required to establish such compliance), then the Maturity Date shall be automatically extended to the date occurring twelve (12) months after the then existing Maturity Date.  The Administrative Agent shall notify the Borrower and each Lender of the effectiveness of any such extension.

 

SECTION 2.15.  [Reserved.]

 

SECTION 2.16.  Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Revolving Credit Lender becomes a Defaulting Lender, then

 

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the following provisions shall apply for so long as such Revolving Credit Lender is a Defaulting Lender:

 

(a)           if any Swing Line Loan Exposure or Letter of Credit Exposure exists at the time a Revolving Credit Lender becomes a Defaulting Lender then:

 

(A)          all or any part of such Swing Line Loan Exposure and Letter of Credit Exposure shall be reallocated among the Revolving Credit Lenders that are not Defaulting Lenders in accordance with their respective Pro Rata Share but only to the extent (x) the sum of all Revolving Credit Exposures of all Revolving Credit Lenders that are not Defaulting Lenders plus such Defaulting Lender’s Swing Line Loan Exposure and Letter of Credit Exposure does not exceed the aggregate amount of all Revolving Credit Commitments of all Revolving Credit Lenders that are not Defaulting Lenders, (y) immediately following the reallocation to a Revolving Credit Lender that is not a Defaulting Lender, the Revolving Credit Exposure of such Revolving Credit Lender does not exceed its Revolving Credit Commitment at such time and (z) the conditions set forth in Sections 4.02(a) and (b) are satisfied at such time (it being understood that all references to a “Credit Extension” or similar language in such Section 4.02 shall be deemed to refer to the date of such reallocation);

 

(B)           if the reallocation described in clause (A) above cannot, or can only partially, be effected, the Borrower shall within one (1) Business Day following notice by the Administrative Agent (x) first, prepay the portion of such Swing Line Loan Exposure that has not been reallocated among the Revolving Credit Lenders that are not Defaulting Lenders pursuant to clause (A) above and (y) second, cash collateralize in a manner reasonably satisfactory to the applicable L/C Issuer such Defaulting Lender’s Letter of Credit Exposure (after giving effect to any partial reallocation pursuant to clause (A) above) in aggregate amount equal to 105% of such Defaulting Lender’s Letter of Credit Exposure for so long as such Letter of Credit Exposure is outstanding (the “L/C Back-Stop Arrangements”);

 

(C)           the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.03(h) with respect to such Defaulting Lender’s Letter of Credit Exposure;

 

(D)          if the Letter of Credit Exposure of the Revolving Credit Lenders that are not Defaulting Lenders is reallocated pursuant to clause (A) above, then the fees payable to the Revolving Credit Lenders pursuant to Section 2.03(h) shall be adjusted in accordance with the Pro Rata Shares of such Revolving Credit Lenders that are not Defaulting Lenders; and

 

(E)           if any Defaulting Lender’s Letter of Credit Exposure is neither cash collateralized nor reallocated pursuant to this Section 2.16(a), then, without prejudice to any rights or remedies of any L/C Issuer or any Revolving Credit Lender hereunder, all Letter of Credit fees payable under Section 2.03(h) with

 

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respect to such Defaulting Lender’s Letter of Credit Exposure shall be payable to the applicable L/C Issuer until such Letter of Credit Exposure is cash collateralized and/or reallocated; and

 

(b)           notwithstanding anything to the contrary contained in Section 2.03 or 2.04, so long as any Revolving Credit Lender is a Defaulting Lender, (i) the Swing Line Lender shall not be required to fund any Swing Line Loan and no L/C Issuer shall be required to issue, amend, renew or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Revolving Credit Commitments of the Revolving Credit Lenders that are not Defaulting Lenders and/or cash collateral has been provided by the Borrower in accordance with Section 2.16(a), and (ii) participating interests in any such newly issued, amended, renewed or increased Letter of Credit or newly made Swing Line Loan shall be allocated among Revolving Credit Lenders that are not Defaulting Lenders in a manner consistent with Section 2.16(a)(A) (and Defaulting Lenders shall not participate therein).

 

In the event that the Administrative Agent, the Borrower, each L/C Issuer and the Swing Line Lender each agrees that a Defaulting Lender has adequately remedied all matters that caused such Revolving Credit Lender to be a Defaulting Lender, then (i) the Swing Line Loan Exposure and Letter of Credit Exposure of the Revolving Credit Lenders shall be readjusted to reflect the inclusion of such Revolving Credit Lender’s Revolving Credit Commitments and on such date such Revolving Credit Lender shall purchase at par such of the Revolving Credit Loans of the other Revolving Credit Lenders as the Administrative Agent shall determine may be necessary in order for such Revolving Credit Lender to hold such Revolving Credit Loans in accordance with its Pro Rata Share and (ii) so long as no Event of Default then exists, all funds held as cash collateral pursuant to the L/C Back-Stop Arrangements shall thereafter be promptly returned to the Borrower. If the Revolving Credit Commitments have been terminated, all other Revolving Obligations have been paid in full and no Letters of Credit are outstanding, then, so long as no Event of Default then exists, all funds held as cash collateral pursuant to the L/C Back-Stop Arrangements shall thereafter be promptly returned to the Borrower.

 

ARTICLE III

 

Taxes, Increased Costs Protection and Illegality

 

SECTION 3.01.  Taxes.  (a) Except as provided in this Section 3.01, any and all payments by the Borrower (the term “Borrower” as used in this Article 3 being deemed to include any Subsidiary for whose account a Letter of Credit is issued or any other Loan Party making a payment under any Loan Document) to or for the account of any Agent or any Lender under any Loan Document shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and all liabilities (including additions to tax, penalties and interest) with respect thereto, whether now or hereafter imposed, levied, collected, withheld or assessed by any relevant Governmental Authority (“Taxes”), excluding, in the case of each Agent and each Lender, (i) taxes imposed on or measured by its net income and franchise (and similar) taxes imposed on it in lieu of net income taxes, by the jurisdiction (or any political subdivision thereof) under the Laws of which such Agent or such Lender, as the case may be, is organized or

 

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maintains a Lending Office, and all liabilities (including additions to tax, penalties and interest) with respect thereto, (ii) branch profits taxes imposed by the jurisdiction in which the Borrower is located, (iii) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 3.07(a)), any U.S. federal withholding Taxes resulting from any law in effect on the date such Foreign Lender becomes a party to this Agreement (or designates a new Lending Office) or is attributable to such Foreign Lender’s failure to comply with Section 10.15, except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to such withholding Taxes pursuant to this Section 3.01 and (iv) any withholding taxes imposed by Section 1471 through 1474 of the Code, as in effect as of the date of this Agreement, and any current or future Treasury Regulations or official interpretations thereof (all such Taxes described in (i) through (iv) being “Excluded Taxes”).  If any Taxes or Other Taxes are required to be deducted or withheld from or in respect of any sum payable under and in respect of any Loan Document to any Agent or any Lender, (i)  the sum payable shall be increased as necessary so that after making all required deductions and withholdings (including deductions and withholdings applicable to additional sums payable under this Section 3.01), each of such Agent and such Lender receives an amount equal to the sum it would have received had no such deductions or withholdings in respect of Indemnified Taxes or Other Taxes been made, (ii) the Borrower (or the applicable withholding agent, as the case may be) shall make such deductions or withholdings, (iii) the Borrower (or the applicable withholding agent, as the case may be) shall pay the full amount deducted to the appropriate Governmental Authority in accordance with applicable Laws, and (iv) within thirty (30) days after the date of such payment (or, if receipts or evidence are not available within thirty (30) days, as soon as possible thereafter), the Borrower (or the applicable withholding agent, as the case may be) shall furnish to such Agent or Lender (as the case may be) the original or a certified copy of a receipt evidencing payment thereof to the extent such a receipt is issued therefor, or other written proof of payment thereof that is reasonably satisfactory to the Administrative Agent.  If the Borrower fails to pay any Taxes or Other Taxes when due to the Governmental Authority or fails to remit to any Agent or any Lender the required receipts or other required documentary evidence, the Borrower shall indemnify such Agent and such Lender for any incremental taxes, interest or penalties that may become payable by such Agent or such Lender arising out of such failure.

 

(b)           In addition, the Borrower agrees to pay any and all present or future stamp, court or documentary taxes and any other excise, property, intangible, filing, or mortgage recording taxes or charges or similar levies which arise from any payment made under or in respect of any Loan Document or from the execution, delivery, performance, enforcement or registration of, from any performance, receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document (hereinafter referred to as “Other Taxes”).

 

(c)           (i)  The Borrower agrees to indemnify each Agent and each Lender for and hold it harmless against (A) the full amount of Indemnified Taxes and Other Taxes (including any Indemnified Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section 3.01) paid or payable by such Agent and such Lender and (B) any liability (including additions to tax, penalties, interest and expenses) arising therefrom or with respect thereto, in each case whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; provided such Agent or Lender, as the case may be, provides the Borrower with a written statement

 

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thereof setting forth in reasonable detail the basis and calculation of such amounts.  Payment under this Section 3.01(c)(i) shall be made within thirty (30) days after the date such Lender or such Agent makes a demand therefor.  Such written statement shall be conclusive of the amount so paid or payable absent manifest error.

 

(ii)           Each Lender shall severally indemnify the Agents (but only to the extent that the Borrower has not already indemnified such Agent for such amounts and without limiting the obligation of the Borrower to do so) for (A) the full amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section 3.01) attributable to such Lender paid by such Agent and (B) any liability (including additions to tax, penalties, interest and reasonable expenses) arising therefrom or with respect thereto, in each case whether or not such Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; provided such Agent provides such Lender with a written statement thereof setting forth in reasonable detail the basis and calculation of such amounts.  Payment under this Section 3.01(c)(ii) shall be made within thirty (30) days after the date such Agent makes a demand therefor.

 

(d)           If any Lender or Agent determines, in its sole discretion exercised in good faith, that it has received a refund in respect of any Taxes or Other Taxes as to which indemnification or additional amounts have been paid to it by the Borrower pursuant to this Section 3.01, it shall remit such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section 3.01 with respect to the Indemnified Taxes or Other Taxes giving rise to such refund plus any interest included in such refund by the relevant Governmental Authority attributable thereto) to the Borrower, net of all out-of-pocket expenses of such Lender or Agent, as the case may be and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of such Lender or Agent, as the case may be, agrees promptly to return such refund to such party in the event such party is required to repay such refund to the relevant Governmental Authority.  Such Lender or Agent, as the case may be, shall provide the Borrower with a written statement setting forth in reasonable detail the basis and calculation of the amounts required to be repaid to the relevant Governmental Authority. Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section 3.01 shall survive the termination of the Loan Documents.  Nothing herein contained shall interfere with the right of a Lender or Agent to arrange its tax affairs in whatever manner it thinks fit nor oblige any Lender or Agent to claim any tax refund or to make available its tax returns or disclose any information relating to its tax affairs or any computations in respect thereof or any other confidential information or require any Lender or Agent to do anything that would prejudice its ability to benefit from any other refunds, credits, reliefs, remissions or repayments to which it may be entitled.

 

(e)           Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 3.01(a) or (c) with respect to such Lender it will, if requested by the Borrower, use commercially reasonable efforts (subject to such Lender’s overall internal policies of general application and legal and regulatory restrictions) to designate another Lending Office for any Loan or Letter of Credit affected by such event if in the judgment of

 

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such Lender, such designation (i) would eliminate or reduce amounts payable pursuant to Section 3.01(a) or (c), as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.  Nothing in this Section 3.01(e) shall affect or postpone any of the Obligations of the Borrower or the rights of such Lender pursuant to Section 3.01(a) or (c).

 

SECTION 3.02.  Illegality.  If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Eurodollar Loans, or to determine or charge interest rates based upon the Adjusted LIBO Rate, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such Lender to make or continue Eurodollar Loans or to convert Base Rate Loans to Eurodollar Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Loans of such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Loans to such day, or promptly, if such Lender may not lawfully continue to maintain such Eurodollar Loans.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted and all amounts due, if any, in connection with such prepayment or conversion under Section 3.05.  Each Lender agrees to designate a different Lending Office if such designation will avoid the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender.

 

SECTION 3.03.  Inability to Determine Rates.  If the Required Lenders determine that for any reason adequate and reasonable means do not exist for determining the Adjusted LIBO Rate for any requested Interest Period with respect to a proposed Eurodollar Loan, or that the Adjusted LIBO Rate for any requested Interest Period with respect to a proposed Eurodollar Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, or that Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and the Interest Period of such Eurodollar Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, the obligation of the Lenders to make or maintain Eurodollar Loans shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Loans or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein.

 

SECTION 3.04.  Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Loans.  (a) If any Lender determines that as a result of any Change in Law (i) there shall be any increase in the cost to such Lender of agreeing to make or making, funding or maintaining Loans or (as the case may be) issuing or participating in Letters of Credit, or a reduction in the amount received or receivable by such Lender in connection with any of the foregoing (excluding for purposes of this Section 3.04(a) any such increased costs or reduction in

 

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amount resulting from reserve requirements contemplated by Section 3.04(c)) or (ii) any Lender shall be subject to any Taxes (other than (A) Indemnified Taxes, (B) Other Taxes and (C) Excluded Taxes) on its Loans, Letters of Credit, Revolving Credit Commitment or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto, then from time to time within fifteen (15) days after demand by such Lender setting forth in reasonable detail such increased costs (with a copy of such demand to the Administrative Agent given in accordance with Section 3.06), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such increased cost or reduction.

 

(b)           If any Lender determines that any Change in Law regarding capital requirements has the effect of reducing the rate of return on the capital of such Lender or any corporation controlling such Lender as a consequence of such Lender’s obligations hereunder (taking into consideration its policies with respect to capital adequacy and such Lender’s desired return on capital), then from time to time upon demand of such Lender setting forth in reasonable detail the charge and the calculation of such reduced rate of return (with a copy of such demand to the Administrative Agent given in accordance with Section 3.06), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such reduction within fifteen (15) days after receipt of such demand.

 

(c)           The Borrower shall pay to each Lender, (i) as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits, additional interest on the unpaid principal amount of each Eurodollar Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive in the absence of manifest error), and (ii) as long as such Lender shall be required to comply with any reserve ratio requirement or analogous requirement of any other central banking or financial regulatory authority imposed in respect of the maintenance of the Revolving Credit Commitments or the funding of the Eurodollar Loans, such additional costs (expressed as a percentage per annum and rounded upwards, if necessary, to the nearest five decimal places) equal to the actual costs allocated to such Revolving Credit Commitment or Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive absent manifest error) which in each case shall be due and payable on each date on which interest is payable on such Loan; provided the Borrower shall have received at least fifteen (15) days’ prior notice (with a copy to the Administrative Agent) of such additional interest or cost from such Lender.  If a Lender fails to give notice fifteen (15) days prior to the relevant Interest Payment Date, such additional interest or cost shall be due and payable fifteen (15) days from receipt of such notice.

 

(d)           Failure or delay on the part of any Lender to demand compensation pursuant to this Section 3.04 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to Section 3.04(a), (b) or (c) for any such increased cost or reduction incurred more than one hundred and eighty (180) days prior to the date that such Lender demands, or notifies the Borrower of its intention to demand, compensation therefor; provided, further, that, if the circumstance giving rise to such increased cost or reduction is retroactive, then such 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

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(e)           If any Lender requests compensation under this Section 3.04, then such Lender will, if requested by the Borrower, use commercially reasonable efforts to designate another Lending Office for any Loan or Letter of Credit affected by such event; provided that such efforts are made on terms that, in the reasonable judgment of such Lender, cause such Lender and its Lending Office(s) to suffer no material economic, legal or regulatory disadvantage; provided, further, that nothing in this Section 3.04(e) shall affect or postpone any of the Obligations of the Borrower or the rights of such Lender pursuant to Section 3.04(a), (b), (c) or (d).

 

SECTION 3.05.  Funding Losses.  Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense (but not loss of profit margin) incurred by it as a result of:

 

(a)           any continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); or

 

(b)           any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower;

 

including any loss or expense (but not loss of profit margin) arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained.

 

For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each Eurodollar Loan made by it at the Adjusted LIBO Rate for such Loan by a matching deposit or other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar Loan was in fact so funded.

 

SECTION 3.06.  Matters Applicable to All Requests for Compensation.  (a) Any Agent or any Lender claiming compensation under this Article 3 shall deliver a certificate to the Borrower setting forth the additional amount or amounts to be paid to it hereunder which shall be conclusive in the absence of manifest error.  In determining such amount, such Agent or such Lender may use any reasonable averaging and attribution methods.

 

(b)           With respect to any Lender’s claim for compensation under Section 3.01, 3.02, 3.03 or 3.04, the Borrower shall not be required to compensate such Lender for any amount incurred more than one hundred eighty (180) days prior to the date that such Lender notifies the Borrower of the event that gives rise to such claim; provided that, if the circumstance giving rise to such claim is retroactive, then such 180-day period referred to above shall be extended to include the period of retroactive effect thereof.  If any Lender requests compensation by the Borrower under Section 3.04, the Borrower may, by notice to such Lender (with a copy to the Administrative Agent), suspend the obligation of such Lender to make or continue from one Interest Period to another Eurodollar Loans, or to convert Base Rate Loans

 

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into Eurodollar Loans, until the event or condition giving rise to such request ceases to be in effect (in which case the provisions of Section 3.06(c) shall be applicable); provided that such suspension shall not affect the right of such Lender to receive the compensation so requested.

 

(c)           If the obligation of any Lender to make or continue from one Interest Period to another any Eurodollar Loan, or to convert Base Rate Loans into Eurodollar Loans shall be suspended pursuant to Section 3.06(b), such Lender’s Eurodollar Loans shall be automatically converted into Base Rate Loans on the last day(s) of the then current Interest Period(s) for such Eurodollar Loans (or, in the case of an immediate conversion required by Section 3.02, on such earlier date as required by Law) and, unless and until such Lender gives notice as provided below that the circumstances specified in Section 3.01, 3.02, 3.03 or 3.04 that gave rise to such conversion no longer exist:

 

(i)            to the extent that such Lender’s Eurodollar Loans have been so converted, all payments and prepayments of principal that would otherwise be applied to such Lender’s Eurodollar Loans shall be applied instead to its Base Rate Loans; and

 

(ii)           all Loans that would otherwise be made or continued from one Interest Period to another by such Lender as Eurodollar 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 Eurodollar Loans shall remain as Base Rate Loans.

 

(d)           If any Lender gives notice to the Borrower (with a copy to the Administrative Agent) that the circumstances specified in Section 3.01, 3.02, 3.03 or 3.04 that gave rise to the conversion of such Lender’s Eurodollar Loans pursuant to this Section 3.06 no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when Eurodollar Loans made by other Lenders are outstanding, 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 Eurodollar Loans, to the extent necessary so that, after giving effect thereto, all Loans held by the Lenders holding Eurodollar Loans and by such Lender are held pro rata (as to principal amounts, interest rate basis, and Interest Periods) in accordance with their respective Revolving Credit Commitments.

 

SECTION 3.07.  Replacement of Lenders under Certain Circumstances.  (a) If at any time (i) the Borrower becomes obligated to pay additional amounts or indemnity payments described in Section 3.01 or 3.04 as a result of any condition described in such Sections or any Lender ceases to make Eurodollar Loans as a result of any condition described in Section 3.02 or Section 3.04, (ii) any Revolving Credit Lender becomes a Defaulting Lender or (iii) any Lender becomes a Non-Consenting Lender, then the Borrower may, on ten (10) Business Days’ prior written notice to the Administrative Agent and such Lender, replace such Lender by causing such Lender to (and such Lender shall be obligated to) assign pursuant to Section 10.07(b) (with the assignment fee to be paid by the Borrower in such instance) all of its rights and obligations under this Agreement to one or more Eligible Assignees; provided that neither the Administrative Agent nor any Lender shall have any obligation to the Borrower to find a replacement Lender or other such Person; provided, further, that (A) in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such

 

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compensation or payments and (B) in the case of any such assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable Eligible Assignees shall have agreed to the applicable departure, waiver or amendment of the Loan Documents.

 

(b)           Any Lender being replaced pursuant to Section 3.07(a) above shall (i) execute and deliver an Assignment and Assumption with respect to such Lender’s Revolving Credit Commitment and outstanding Loans and participations in L/C Obligations and Swing Line Loans, and (ii) deliver any Notes evidencing such Loans to the Borrower or Administrative Agent.  Pursuant to such Assignment and Assumption, (A) the assignee Lender shall acquire all or a portion, as the case may be, of the assigning Lender’s Revolving Credit Commitment and outstanding Loans and participations in L/C Obligations and Swing Line Loans, (B) all obligations of the Borrower owing to the assigning Lender relating to the Loans and participations so assigned shall be paid in full at par by the assignee Lender to such assigning Lender concurrently with such Assignment and Assumption and (C) upon such payment and, if so requested by the assignee Lender, delivery to the assignee Lender of the appropriate Note or Notes executed by the Borrower, the assignee Lender shall become a Lender hereunder and the assigning Lender shall cease to constitute a Lender hereunder with respect to such assigned Loans, Revolving Credit Commitments and participations, except with respect to indemnification provisions under this Agreement, which shall survive as to such assigning Lender.  If the Lender being replaced does not comply with its obligations in the first sentence of this Section 3.07(b), then the Administrative Agent shall be entitled (but not obligated) and authorized to execute an Assignment and Assumption on behalf of such replaced Lender, and any such Assignment and Assumption so executed by the Administrative Agent and the assignee Lender shall be effective for purposes of this Section 3.07.

 

(c)           Notwithstanding anything to the contrary contained above, any Lender that acts as an L/C Issuer may not be replaced hereunder at any time that it has any Letter of Credit outstanding hereunder unless arrangements reasonably satisfactory to such L/C Issuer (including the furnishing of a back-up standby letter of credit in form and substance, and issued by an issuer reasonably satisfactory to such L/C Issuer or the depositing of cash collateral into a cash collateral account in amounts and pursuant to arrangements reasonably satisfactory to such L/C Issuer) have been made with respect to each such outstanding Letter of Credit and the Lender that acts as the Administrative Agent may not be replaced hereunder except in accordance with the terms of Section 9.09.

 

(d)           In the event that (i) the Borrower or the Administrative Agent has requested that the Lenders consent to a departure or waiver of any provisions of the Loan Documents or agree to any amendment thereto, (ii) the consent, waiver or amendment in question requires the agreement of all affected Lenders in accordance with the terms of Section 10.01 or all the Lenders with respect to a certain Class of the Loans and (iii) the Required Lenders have agreed to such consent, waiver or amendment, then any Lender who does not agree to such consent, waiver or amendment shall be deemed a “Non-Consenting Lender.”

 

SECTION 3.08.  Survival.  All of the Borrower’s obligations under this Article 3 shall survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder.

 

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ARTICLE IV

 

Conditions Precedent to Credit Extensions

 

SECTION 4.01.  Conditions of Initial Credit Extension.  The obligation of each Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditions precedent:

 

(a)           The Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party party thereto, each in form and substance reasonably satisfactory to the Administrative Agent and its legal counsel:

 

(i)            executed counterparts of this Agreement and the Guaranty;

 

(ii)           a Note executed by the Borrower in favor of each Lender party to this Agreement on the Closing Date that has requested a Note at least two Business Days in advance of the Closing Date;

 

(iii)          each Collateral Document set forth on Schedule 1.01B, duly executed by each Loan Party party thereto, together with:

 

(A)          certificates, if any, representing the Equity Interests constituting Collateral accompanied by undated stock powers executed in blank and instruments constituting Collateral indorsed in blank (provided that, to the extent required by applicable Law, all certificates representing such Equity Interests shall be held by, or on behalf of, the Administrative Agent in the State of Nevada);

 

(B)           opinions of counsel for the Loan Parties in states in which the Loan Parties are formed or the Mortgaged Properties are located, with respect to perfection of the Liens granted pursuant to the Collateral Documents (including the Mortgages) and any related filings, recordations or notices (including fixture filings), in each case, in form and substance reasonably satisfactory to the Administrative Agent;

 

(C)           evidence that all other actions, recordings and filings that the Administrative Agent may deem reasonably necessary to satisfy the Collateral and Guarantee Requirement (including UCC financing statements, other filings, recordations or notices and, with respect to the Mortgaged Properties, title insurance, surveys and environmental assessments referred to in the Collateral and Guarantee Requirement) shall have been taken, completed or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent; and

 

(D)          evidence that all approvals of the Pledge Agreement and the Shareholder Pledge Agreement required to be obtained from Gaming Authorities under applicable Gaming Laws in order for such agreements to become fully effective shall have been obtained and shall be in full force and effect;

 

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(iv)          executed counterparts of (A) the LandCo Credit Agreement and each other LandCo Loan Document and (B) the OpCo Credit Agreement and each other OpCo Loan Document in each case, together with evidence that all conditions precedent to effectiveness thereof  have been satisfied;

 

(v)           such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party on the Closing Date;

 

(vi)          (A) a legal opinion from Milbank, Tweed, Hadley & McCloy LLP, New York counsel to the Loan Parties, substantially in the form of Exhibit J-1 and (B) a legal opinion from Brownstein Hyatt Farber Schreck, LLP, Nevada counsel to the Loan Parties, substantially in the form of Exhibit J-2;

 

(vii)         a certificate signed by a Responsible Officer of the Borrower certifying that (A) there has been no change, effect, event or occurrence since the Plan Effective Date that has had or could reasonably be expected to have a Material Adverse Effect, (B) no Default shall exist, or would result from the Credit Extension on the Closing Date or from the application of the proceeds therefrom and (C) the representations and warranties of the Borrower and each other Loan Party contained in Article 5 or any other Loan Document shall be true and correct in all material respects on and as of the Closing Date;

 

(viii)        a certificate attesting to the Solvency of the Loan Parties (taken as a whole) after giving effect to the Restructuring Transactions, from the principal accounting officer of the Borrower;

 

(ix)           evidence that all insurance (including title insurance) required to be maintained pursuant to the Loan Documents has been obtained and is in effect and that the Administrative Agent has been named as lender loss payee or additional insured, as applicable, under each insurance policy with respect to such insurance as to which the Administrative Agent shall have requested to be so named;

 

(x)            certified copies of the Borrower/IP Holdco License Agreement, the OpCo/IP Holdco License Agreement, the Non-Compete Agreement, the Manager Documents, the OpCo Cost Allocation Agreement and the OpCo Transition Services Agreement, duly executed by the parties thereto, together with all other Material Contracts, each including certification by a Responsible Officer of the Borrower that such documents are in full force and effect as of the Closing Date;

 

(xi)           a Committed Loan Notice or Letter of Credit Application, as applicable, relating to the initial Credit Extension;

 

(xii)          certified copies of each of the Holding Company Tax Sharing Agreement and the OpCo Tax Sharing Agreement duly executed by all parties thereto which is in full force and effect on the Closing Date;

 

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(xiii)       all information and copies of all documents and papers, including records of each Loan Party proceedings, governmental approvals, good standing certificates and bring-down telegrams or facsimiles, if any, which the Administrative Agent reasonably may have requested in connection therewith, such documents and papers where appropriate to be certified by proper Loan Party or Governmental Authorities;

 

(xiv)        certified copies of all agreements entered into by the Holding Companies or any of their Subsidiaries governing the terms and relative rights of their Equity Interests and any agreements entered into by its shareholders relating to any such entity with respect to their Equity Interests; and

 

(xv)         each of the other documents, instruments and certificates set forth on Schedule 1.01B.

 

(b)           The Plan of Reorganization shall have been confirmed by the Bankruptcy Court pursuant to the Confirmation Order, which has terms and conditions reasonably satisfactory to the Lenders.  The Confirmation Order shall not be subject to a stay and the Plan Effective Date shall have occurred.

 

(c)           On the Closing Date, the New PropCo Acquired Assets Transfers shall have been consummated in accordance with the terms and conditions of the Plan of Reorganization, the New PropCo Acquired Assets Transfer Documents and all applicable Laws.  On the Closing Date, (x) the Administrative Agent shall have received true and correct copies of all New PropCo Acquired Assets Transfer Documents, in each case (to the extent requested by the Administrative Agent) certified as such by a Responsible Officer of the Borrower, (y) all such New PropCo Acquired Assets Transfer Documents and all terms and conditions thereof shall be in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders and (z) all such New PropCo Acquired Assets Transfer Documents shall be in full force and effect.  All conditions precedent to the New PropCo Acquired Assets Transfers, as set forth in the New PropCo Acquired Assets Transfer Documents, shall have been satisfied, and not waived unless consented to by the Administrative Agent and the Required Lenders, to the reasonable satisfaction of the Administrative Agent and the Required Lenders.

 

(d)           On the Closing Date, the Acquisition shall have been consummated in accordance with the terms and conditions of the Acquisition Documents and all applicable law.  On the Closing Date, (x) the Administrative Agent shall have received true and correct copies of all Acquisition Documents, in each case (to the extent requested by the Administrative Agent) certified as such by a Responsible Officer of the Borrower, (y) all such Acquisition Documents and all terms and conditions thereof shall be in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders and (z) all such Acquisition Documents shall be in full force and effect.  All conditions precedent to the Acquisition, as set forth in the Acquisition Documents, shall have been satisfied, and not waived unless consented to by the Administrative Agent and the Required Lenders, to the reasonable satisfaction of the Administrative Agent and the Required Lenders.

 

(e)           On the Closing Date, the LandCo Assets Transfer shall have been consummated in accordance with the terms and conditions of the Plan of Reorganization, the

 

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LandCo Assets Transfer Documents and all applicable Laws.  On the Closing Date, (x) the Administrative Agent shall have received true and correct copies of all LandCo Assets Transfer Documents, in each case (to the extent requested by the Administrative Agent) certified as such by a Responsible Officer of the Borrower, (y) all such LandCo Assets Transfer Documents and all terms and conditions thereof shall be in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders and (z) all such LandCo Assets Transfer Documents shall be in full force and effect.  All conditions precedent to the LandCo Assets Transfer, as set forth in the LandCo Assets Transfer Documents, shall have been satisfied, and not waived unless consented to by the Administrative Agent and the Required Lenders, to the reasonable satisfaction of the Administrative Agent and the Required Lenders.

 

(f)            The Administrative Agent shall have received satisfactory evidence of the completion of the Restructuring Transactions.

 

(g)           [Reserved].

 

(h)           All costs, fees and expenses required to be paid hereunder and under the other Loan Documents and invoiced before the Closing Date shall have been paid in full in cash.

 

(i)            The Administrative Agent and the Lenders shall have received (i) the Old OpCo Audited Financial Statements and the audit report for such financial statements and (ii) the Old OpCo Unaudited Financial Statements, which financial statements described in clauses (i) and (ii) shall be prepared in accordance with GAAP.  The Administrative Agent and the Lenders shall have received (to the extent requested by the Administrative Agent or any Lender) the Old PropCo Unaudited Financial Statements, which financial statements shall be prepared in accordance with GAAP.

 

(j)            The Administrative Agent and the Lenders shall have received (i) the Pro Forma Financial Statements and (ii) the Pro Forma Opening Projections.

 

(k)           All material Permits necessary in connection with the consummation of the transactions contemplated by the Loan Documents (including all necessary approvals under applicable Gaming Laws) and the continuing operations of the Borrower and its Subsidiaries (including shareholder and/or member approvals, if any) shall have been obtained on terms satisfactory to the Administrative Agent and the Lenders and shall be in full force and effect, and all applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions upon the consummation of the transactions contemplated by the Loan Documents.

 

SECTION 4.02.  Conditions to All Credit Extensions.  The obligation of each Lender to honor any Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Loans to the other Type, or a continuation of Eurodollar Loans) is subject to the following conditions precedent:

 

(a)           The representations and warranties of the Borrower and each other Loan Party contained in Article 5 or any other Loan Document shall be true and correct in all material respects on and as of the date of such Credit Extension; provided that, to the extent that such

 

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representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided, further that, any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such respective dates.

 

(b)           No Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds therefrom.

 

(c)           The Administrative Agent and, if applicable, the relevant L/C Issuer or the Swing Line Lender shall have received a Request for Credit Extension in accordance with the requirements hereof.

 

(d)           In the case of a Request for Credit Extension relating to the Revolving Credit Facility, the Borrower (i) shall be in compliance with each of the financial covenants set forth in Section 7.11, calculated on a Pro Forma Basis after giving effect to the requested Credit Extension and any other Specified Transaction that has occurred since the last day of the Test Period then most recently ended and (ii) in the case of any such requested Credit Extension in an amount equal to or greater than $10,000,000, shall have (A) delivered calculations (in reasonable detail and certified by any Person that is authorized to sign a Request for Credit Extension) to the Administrative Agent demonstrating compliance with the requirements of immediately preceding sub-clause (i) (with the determination of “Consolidated EBITDA” with respect to the final fiscal quarter included in the relevant Test Period for purposes of this clause (d) to be made on the basis of good faith estimates by the Borrower if (and only if) the financial statements for such Test Period have not yet been required to be delivered pursuant to Section 6.01) or (B) if the requested Credit Extension constitutes a Revolving Loan or Swing Line Loan, certified that the proceeds of such Credit Extension will be applied to increase the amount of Cage Cash maintained by the Borrower and its Restricted Subsidiaries in accordance with Section 7.02(a).

 

(e)           In the case of a Request for Credit Extension relating to the Revolving Credit Facility (other than a request for a L/C Credit Extension), the aggregate amount of Unrestricted cash and Cash Equivalents owned or held by the Borrower and its Restricted Subsidiaries shall not, after giving effect to (i) the requested Credit Extension  (and any other such requested Credit Extension that has not then been funded) and (ii) the application of (x) the proceeds of the requested Credit Extension (and any such other requested Credit Extension) and (y) any other Unrestricted cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries, in each case on (A) in the case of any Borrowing of Eurodollar Loans, the date that is three Business Days prior to the requested Credit Extension and (B) in the case of any Borrowing of Base Rate Loans, the date of the requested Credit Extension, for a purpose otherwise permitted by this Agreement (and not constituting an Investment in Cash Equivalents or a Restricted Subsidiary), exceed $15,000,000.

 

(f)            In the case of a Request for Credit Extension relating to the Revolving Credit Facility (other than a request for a L/C Credit Extension) the proceeds of which shall be applied to fund a Permitted Acquisition, after giving effect to such Credit Extension and the uses of proceeds thereof, Availability shall not be less than $40,000,000.

 

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Each Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Loans to the other Type or a continuation of Eurodollar Loans) submitted by the Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 4.02(a), (b), (d), (e) and (f) have been satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V

 

Representations and Warranties

 

The Borrower represents and warrants to the Agents, the L/C Issuer and the Lenders that:

 

SECTION 5.01.  Existence, Qualification and Power; Compliance with Laws.  Each of the Borrower, each other Loan Party and each of their Subsidiaries (a) is a Person duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, (d) is in compliance with all Laws, orders, writs, injunctions and decrees and (e) has all requisite governmental licenses, authorizations, consents and approvals to operate its business as currently conducted, except (A) in the case of the Borrower and each other Loan Party, in each case referred to in clause (c), (d) or (e), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect and (B) in the case of the Unrestricted Subsidiaries, to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

SECTION 5.02.  Authorization; No Contravention.  The execution, delivery and performance by the Borrower and each other Loan Party of each Loan Document to which such Person is a party, and the consummation of the Restructuring Transactions on the Closing Date, are within such Loan Party’s corporate or other powers, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien under (other than Permitted Liens), or require any payment to be made under (i) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any material Law.

 

SECTION 5.03.  Governmental Authorization; Other Consents.  No material approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with (a) the execution, delivery or performance by, or enforcement against, the Holding Companies or any other Loan Party of this Agreement or any other Loan Document, or for the Restructuring Transactions on the Closing Date, (b) the grant by the Holding Companies or any other Loan

 

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Party of the Liens granted by it pursuant to the Collateral Documents, (c) the perfection or maintenance of the Liens created under the Collateral Documents (including the priority thereof) or (d) the exercise by the Administrative Agent or any Lender of its rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents, except for (i) filings necessary to perfect the Liens on the Collateral granted by the Holding Companies and the other Loan Parties in favor of the Secured Parties, (ii) the approvals, consents, exemptions, authorizations, actions, notices and filings, including all required Gaming Permits, which have been duly obtained, taken, given or made and are in full force and effect, (iii) filings necessary to release collateral provided under the Prepetition Credit Agreement or in connection with other obligations of the Debtors which have been delivered to the Administrative Agent for filing, (iv) those items set forth on Schedule 5.03, (v) approvals from the applicable Gaming Authorities of the Shareholder Pledge Agreement and the Pledge Agreement, which have been duly obtained, taken, given or made and are in full force and effect, (vi) approvals, consents, authorization or Permits required from any Governmental Authority in connection with an exercise of remedies under any of the Collateral Documents with respect to the Disposition of Equity Interests, gaming equipment or liquor and (vii) those approvals, consents, exemptions, authorizations or other actions, notices or filings, the failure of which to obtain or make could not reasonably be expected to have a Material Adverse Effect.

 

SECTION 5.04.  Binding Effect.  This Agreement and each other Loan Document has been duly executed and delivered by each Loan Party that is party thereto.  This Agreement and each other Loan Document constitutes, a legal, valid and binding obligation of such Loan Party, enforceable against each such Person that is party thereto in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles of equity.

 

SECTION 5.05.  Financial Statements; No Material Adverse Effect.

 

(a)           (i) The Old OpCo Audited Financial Statements and the Old OpCo Unaudited Financial Statements  fairly present in all material respects the financial condition of Old OpCo and its Subsidiaries as of the dates thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the periods covered thereby, except as otherwise expressly noted therein.  The Old PropCo Unaudited Financial Statements fairly present in all material respects the financial condition of Old PropCo and its Subsidiaries as of the dates thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the periods covered thereby, except as otherwise expressly noted therein.  During the period from December 31, 2009 to and including the Closing Date, except in connection with the Restructuring Transactions, there has been (i) no sale, transfer or other Disposition by Old OpCo or any of its Subsidiaries of any material part of the business or property of Old OpCo or any of its Subsidiaries, (ii) no purchase or other acquisition by Old OpCo or any of its Subsidiaries of any business or property (including any Equity Interests of any other Person) material in relation to the consolidated financial condition of Old OpCo and its Subsidiaries, (iii) no sale, transfer or other disposition by Old PropCo or any of its Subsidiaries of any material part of the business or property of Old PropCo or any of its Subsidiaries and (iv) no purchase or other acquisition by Old PropCo or any of its Subsidiaries of any business or property (including any Equity Interests of any other Person) material in relation to the consolidated financial condition of Old PropCo and its

 

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Subsidiaries, in each case, which is not reflected in the foregoing financial statements or in the notes thereto or has not otherwise been disclosed in writing to the Lenders prior to the Closing Date (which shall include any order issued by the Bankruptcy Court).

 

(ii)           The unaudited pro forma consolidated balance sheets of the Borrower and its Subsidiaries and the Borrower and the Restricted Subsidiaries as at March 31, 2011 (the “Pro Forma Balance Sheets”) and the unaudited pro forma consolidated statements of operations of the Borrower and its Subsidiaries and the Borrower and the Restricted Subsidiaries for the most recent fiscal year, the quarter ended March 31, 2011 and the 12-month period ending on March 31, 2011  (together with the Pro Forma Balance Sheet, the “Pro Forma Financial Statements”), copies of which have heretofore been furnished to each Lender, have been prepared giving effect (as if such events had occurred on such date or at the beginning of such periods, as the case may be) to the Restructuring Transactions and all other transactions that would be required to be given pro forma effect by Regulation S-X promulgated under the Exchange Act (including other adjustments consistent with the definition of “Pro Forma Adjustment” or as otherwise agreed between the Borrower and the Administrative Agent).  The Pro Forma Financial Statements have been prepared in good faith, based on assumptions believed by the Borrower to be reasonable as of the date of delivery thereof, and present fairly in all material respects on a pro forma basis and in accordance with GAAP the estimated financial position of the Borrower and its Subsidiaries or the Borrower and the Restricted Subsidiaries, as applicable, as at March 31, 2011 and their estimated results of operations for the periods covered thereby, assuming that the events specified in the preceding sentence had actually occurred at such date or at the beginning of the periods covered thereby.

 

(b)           Since the Plan Effective Date, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.

 

(c)           The Pro Forma Opening Projections, copies of which have been furnished to the Administrative Agent prior to the Closing Date in a form reasonably satisfactory to it, have been prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation of such forecasts, it being understood that actual results may vary from such forecasts and that such variations may be material.

 

(d)           As of the Closing Date, neither the Borrower nor any Restricted Subsidiary has any Indebtedness or other obligations or liabilities, direct or contingent (other than (i) the liabilities reflected on Schedule 5.05, (ii) the Obligations and (iii) liabilities incurred in the ordinary course of business) that, either individually or in the aggregate, have had or could reasonably be expected to have a Material Adverse Effect.

 

SECTION 5.06.  Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower, threatened in writing or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against the Holding Companies, the Borrower or any of its Subsidiaries or against any of their properties or revenues

 

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that either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

SECTION 5.07.  No Default.  Neither the Holding Companies, the Borrower nor any Subsidiary is in default under or with respect to, or a party to, any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  No Default or Event of Default has occurred and is continuing.

 

SECTION 5.08.  Ownership of Property; Liens.  (a) Subject to Permitted Liens, each of the Holding Companies, the Borrower and each of the Subsidiaries has good and marketable title to, or valid leasehold (or subleasehold, as applicable) interests in, all its material properties and assets (including all Real Property), except for minor defects in title that, in the aggregate, are not substantial in amount and do not materially detract from the value of the property subject thereto or interfere with the ability of such party to conduct its business as currently conducted or to utilize such properties and assets for their intended purposes and except, in the case of any Unrestricted Subsidiaries, for any failures to so hold good and marketable title or valid leasehold that could not reasonably be expected to have a Material Adverse Effect.  Except where the failure could not reasonably be expected to have a Material Adverse Effect, each building constructed on a parcel of Real Property is free from material structural defects and all building systems contained therein are in good working order and condition, ordinary wear and tear excepted, suitable for the purposes for which they are currently being used.  No portion of the Real Property has suffered any material damage by fire or other casualty loss that has not heretofore been completely repaired and restored to its original condition, except where such damage could not reasonably be expected to have a Material Adverse Effect.  Each parcel of Real Property and the current use thereof complies in all material respects with all applicable laws (including building and zoning ordinances and codes) and with all insurance requirements, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.  None of the Real Property constitutes a non-conforming use under applicable zoning ordinances and codes, except where such non-conforming use could not reasonably be expected to have a Material Adverse Effect.

 

(b)           Except as, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (i) none of the Borrower or the Restricted Subsidiaries, or, to the knowledge of the Borrower, any other party thereto, is in material default under any Material Real Property Leases to which it is a party and no event has occurred and no fact exists which could become a default with the giving of notice or the passage of time and all such leases are legal, valid, binding and in full force and effect and are enforceable in accordance with their terms, (ii) each of the Borrower and the Restricted Subsidiaries enjoys peaceful and undisturbed possession under all such Material Real Property Leases and (iii) no landlord Lien has been filed, and, to the knowledge of the Borrower, no claim is being asserted, with respect to any lease payment under any Material Real Property Lease.

 

(c)           As of the Closing Date, none of the Borrower or any of the other Loan Parties has received any notice of, nor has any knowledge of, any pending or contemplated condemnation proceeding affecting any Real Property or any sale or Disposition thereof in lieu of condemnation.

 

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(d)           None of the Borrower or any other Loan Party, or, to the knowledge of the Borrower, any other party thereto, is in default in any material respect under any Material Contract.

 

(e)           Each of the Borrower and the Restricted Subsidiaries has good, marketable and insurable (i) leasehold interests in the Land and the Improvements relating to its respective Ground Lease Properties, and enjoy the quiet and peaceful possession of the Leasehold Estate related thereto in all material respects, and (ii) fee simple title to the Land and the Improvements relating to all Mortgaged Properties thereof other than the Ground Lease Properties, except for minor defects in title that, in the aggregate, are not substantial in amount and do not materially detract from the value of the property subject thereto or materially interfere with its ability to conduct its business as currently conducted or to utilize such properties and assets for their intended purposes, in each case free and clear of all Liens whatsoever except Permitted Liens.  Each of the Loan Parties has good and marketable title to the remainder of the material properties and assets of the Loan Parties, free and clear of all Liens whatsoever except Permitted Liens.  The Collateral Documents, when properly recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed or recorded in connection therewith, will create (i) a valid, perfected first mortgage lien on the Land and the Improvements or the Leasehold Estate therein, as applicable, subject only to Permitted Liens and (ii) valid, perfected first priority security interests in and to, and perfected collateral assignments of, all personalty or any leases of equipment from third parties, all in accordance with the terms thereof, in each case subject only to any applicable Permitted Liens.  To the knowledge of the Borrower, there are no claims for payment for work, labor or materials affecting the Mortgaged Properties or other properties or assets of the Loan Parties which are or may become a Lien prior to, or of equal priority with, the Liens created by the Loan Documents other than Permitted Liens.

 

(f)            As of the Closing Date, (i) the Mortgaged Properties are not subject to any material leases other than the Real Property Leases set forth on Schedule 5.08(f), (ii) no Person has any possessory interest in any Mortgaged Property or right to occupy the same except under and pursuant to the provisions of such Real Property Leases, (iii) the Material Real Property Leases are in full force and effect and to the best of the Borrower’s knowledge, there are no material defaults thereunder by either party (other than as expressly disclosed on Schedule 5.08(f)), (iv) no Rent under any Material Real Property Lease has been paid more than one (1) month in advance of its due date, except as disclosed on Schedule 5.08(f), (v) there has been no prior sale, transfer or assignment, hypothecation or pledge by the Borrower or any Restricted Subsidiary of any Real Property Lease or of the Rents received therein, which will be outstanding following the Closing Date, other than those assigned to the Administrative Agent on the Closing Date.

 

SECTION 5.09.  Environmental Compliance.  (a) There are no claims, actions, suits, or proceedings alleging potential liability or responsibility for violation of, or otherwise relating to, any Environmental Law that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(b)           Except as could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (i) none of the properties currently or formerly owned,

 

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leased or operated by any Loan Party or any of its Subsidiaries is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or is adjacent to any such property; (ii) there are no and never have been any underground or aboveground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned, leased or operated by any Loan Party or any of its Subsidiaries or, to the Borrower’s knowledge, on any property formerly owned or operated by any Loan Party or any of its Subsidiaries; (iii) there is no asbestos or asbestos-containing material on any property currently owned or operated by any Loan Party or any of its Subsidiaries; and (iv) Hazardous Materials have not been released, discharged or disposed of by any Person on any property currently or formerly owned, leased or operated by any Loan Party or any of its Subsidiaries and Hazardous Materials have not otherwise been released, discharged or disposed of by any of the Loan Parties and their Subsidiaries at any other location.

 

(c)           The properties owned, leased or operated by the Borrower and its Subsidiaries do not contain any Hazardous Materials in amounts or concentrations which (i) constitute, or constituted a violation of, (ii) require remedial action under, or (iii) could give rise to liability under, Environmental Laws, which violations, remedial actions and liabilities, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

 

(d)           Neither the Borrower nor any of its Subsidiaries is undertaking, and has not completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any Environmental Law except for such investigation or assessment or remedial or response action that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

(e)           All Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly owned or operated by any Loan Party or any of its Subsidiaries have been disposed of in a manner not reasonably expected to result, individually or in the aggregate, in a Material Adverse Effect.

 

(f)            Except as would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect, none of the Loan Parties and their Subsidiaries has contractually assumed any liability or obligation under or relating to any Environmental Law.

 

SECTION 5.10.  Taxes.

 

(a)           The Holding Companies, the Borrower and its Subsidiaries have filed all Federal and other material tax returns and reports required to be filed by them and all such tax returns are true, correct and complete in all material respects.  Each of the Holding Companies, the Borrower and its Subsidiaries has timely paid or timely caused to be paid all material Federal and state and other taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except

 

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those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP.  No Lien has been filed, and to the knowledge of the Borrower, no claim is being asserted, with respect to any Tax.  As of the Closing Date, none of Holdco, the Borrower or any Subsidiary shall be treated as a corporation for United States federal income tax purposes.

 

(b)           Except as set forth on Schedule 5.10(b), as of the Closing Date, no Federal or other material tax return is under audit or examination by any Governmental Authority and no notice of such audit or examination or any assertion of any claim for taxes has been received from any Governmental Authority.  Amounts required to be withheld have been withheld by the Holding Companies, the Borrower and its Subsidiaries from their respective employees’ wages for all periods in full and complete compliance with the tax, social security and unemployment withholding provisions of the applicable Law and such withholdings have been timely paid to the respective Governmental Authorities

 

SECTION 5.11.  ERISA Compliance.  (a) Except as could not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, each Plan is in compliance with the applicable provisions of ERISA, the Code and other Federal or state Laws.

 

(b) (i) No ERISA Event has occurred during the five year period prior to the date on which this representation is made or deemed made or is reasonably expected to occur with respect to any Pension Plan; (ii) no Pension Plan has failed to satisfy the minimum funding standard (as defined in Section 412 of the Code and Sections 302 and 303 of ERISA), whether or not waived, has been or is reasonably expected to be determined “at risk” (as defined in Section 412 of the Code and Sections 302 and 303 of ERISA) or not satisfying minimum funding standards (within the meaning of Section 412 of the Code or 302 of ERISA); and (iii) neither any Loan Party nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA, except, with respect to each of the foregoing clauses of this Section 5.11(b), as could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

 

SECTION 5.12.  Subsidiaries; Equity Interests.  As of the Closing Date after giving effect to the OpCo Acquisition (and, if the GVR Acquisition Commencement Date shall occur on the Closing Date, the GVR Acquisition), neither the Borrower nor any other Loan Party has any Subsidiaries other than those specifically disclosed in Schedule 5.12, and all of the outstanding Equity Interests in the Borrower and its Subsidiaries have been validly issued, and as to any Subsidiaries which are corporations, are fully paid and nonassessable, and all Equity Interests owned by the Holding Companies, the Borrower or any of its Restricted Subsidiaries are owned free and clear of all Liens except (i) those created under the Collateral Documents and (ii) any nonconsensual Permitted Lien.  As of the Closing Date after giving effect to the OpCo Acquisition (and, if the GVR Acquisition Commencement Date shall occur on the Closing Date, the GVR Acquisition), Schedule 5.12 (a) sets forth the name and jurisdiction of each Subsidiary, (b) sets forth the ownership interest of the Holding Companies, the Borrower and any other Subsidiary in the Borrower and each Subsidiary, including the percentage of such ownership, (c) identifies each Subsidiary the Equity Interests of which are required to be pledged on the Closing Date pursuant to the Collateral and Guarantee Requirement and (d) identifies the Unrestricted Subsidiaries.

 

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SECTION 5.13.  Margin Regulations; Investment Company Act.  (a) No Loan Party is engaged nor will it engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board), or extending credit for the purpose of purchasing or carrying margin stock, and no proceeds of any Borrowings or drawings under any Letter of Credit will be used, whether directly or indirectly, and whether immediately, incidentally or ultimately, for purchasing or carrying margin stock or for the purpose of purchasing, carrying or trading in any securities under such circumstances as to involve the Borrower in a violation of Regulation X or to involve any broker or dealer in a violation of Regulation T. No Indebtedness being reduced or retired out of the proceeds of any Loans or Letters of Credit was or will be incurred for the purpose of purchasing or carrying any margin stock.  Following the application of the proceeds of the Loans and the Letters of Credit, margin stock will not constitute more than 25% of the value of the assets of the Borrower and its Subsidiaries.  None of the transactions contemplated by this Agreement will violate or result in the violation of any of the provisions of the Regulations of the Board, including Regulation T, U or X. If requested by any Lender or the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U-1 referred to in Regulation U.

 

(b)           None of the Loan Parties or any Subsidiary of any Loan Party is required to be registered as an “investment company” under the Investment Company Act of 1940.

 

SECTION 5.14.  Disclosure.  No report, financial statement, certificate or other written information furnished by or on behalf of any Loan Party or any Affiliate of a Loan Party to any Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished) when taken as a whole contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; provided that, with respect to projected financial information and pro forma financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time of preparation; it being understood that such projections may vary from actual results and that such variances may be material.

 

SECTION 5.15.  Intellectual Property; Licenses, etc.    The Borrower and its Restricted Subsidiaries own all of the trademarks, service marks, trade names, domain names, other source indicators, copyrights, patents, patent rights, licenses, technology, software, trade secrets, know-how database rights, design rights and other intellectual property rights (collectively, “IP Rights”) that are reasonably necessary for the operation of the businesses of the Borrower and its Subsidiaries other than (a) to the extent the Borrower or any of its Subsidiaries shall have been granted a license or other right to use IP Rights owned by (i) IP Holdco pursuant to the Borrower/IP Holdco License Agreement or, prior to the IP Holdco Transition Date, the OpCo/IP Holdco License Agreement and similar intercompany license agreements with Subsidiaries of the Borrower or (ii) any Person (other than an Affiliate of the Holding Companies or any of their Subsidiaries), (b) any IP Rights owned by an Unrestricted Subsidiary and used exclusively in the operation of the business of such Unrestricted Subsidiary and its Subsidiaries or (c) any (i) IP Rights that are in the public domain or are not protectable or

 

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(ii) other rights that arise from or constitute fair or nominative use.  Notwithstanding anything to the contrary herein, prior to the IP Holdco Transition Date, IP Holdco owns all customer databases, proprietary computer software, trademarks, copyrights and patents owned by the Borrower and its Subsidiaries which are used by OpCo or OpCo’s Subsidiaries as well as by the Borrower and/or any of the Borrower’s other Subsidiaries subject solely to the Borrower/IP Holdco License Agreement and the OpCo/IP Holdco License Agreement and similar intercompany license agreements with Subsidiaries of the Borrower.  Except as disclosed in Schedule 5.15, to the knowledge of the Borrower, no IP Rights, advertising, product, process, method, substance, part or other material used by any Loan Party in the operation of their respective businesses as currently conducted infringes upon, misappropriates or violates any valid intellectual property rights held by any Person except for such infringements, misappropriations or violations, either individually or in the aggregate, which could not reasonably be expected to have a Material Adverse Effect.  Except as disclosed in Schedule 5.15, to the knowledge of the Borrower, no claim, litigation, opposition, or cancellation regarding any of the IP Rights owned or licensed by the Loan Parties is pending or, to the knowledge of the Borrower, threatened against any Loan Party or Restricted Subsidiary, which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

SECTION 5.16.  Solvency.  (a) On the Closing Date, after giving effect to the Restructuring Transactions and the Loans or Letters of Credit to be made or issued on the Closing Date and after giving effect to the application of such Loans or Letters of Credit, the Loan Parties (taken as a whole) are Solvent.

 

(b)           After giving effect to (x) the Restructuring Transactions and (y) the Loans or Letters of Credit to be made or issued on the Closing Date or such other date as Loans or Letters of Credit requested hereunder are made or issued:

 

(i)            the Loan Parties (taken as a whole) have not, do not intend to, and do not believe that they will incur debts beyond the ability of the Loan Parties (taken as a whole) to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by them and the timing of the amounts of cash to be payable on or in respect of their respective Indebtedness; and

 

(ii)           the Loan Parties (taken as a whole) are not engaged in business or a transaction, and are not about to engage in business or a transaction, for which the Loan Parties’ property would constitute an unreasonably small capital.

 

SECTION 5.17.  Maintenance of Insurance.  The Borrower and the other Loan Parties, as applicable, maintain insurance in accordance with the requirements set forth in Section 6.07.  None of the Borrower or any of its Restricted Subsidiaries (a) has received notice from any insurer (or any agent thereof) that substantial capital improvements or other substantial expenditures will have to be made in order to continue such insurance or (b) has any reason to believe that it will not be able to renew its existing coverage as and when such coverage expires or to obtain similar coverage from similar insurers at a substantially similar cost except in each case as would not, individually or in the aggregate, have a Material Adverse Effect.  Schedule 5.17 sets forth a true, complete and correct description of all insurance maintained by or on behalf of the Borrower and the other Loan Parties as of the Closing Date.

 

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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

SECTION 5.18.  Labor Matters.  Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect:  (a) there are no strikes or other labor disputes against any of the Borrower or its Restricted Subsidiaries pending or, to the knowledge of the Borrower, threatened; (b) hours worked by and payment made to employees of each of the Borrower or its Restricted Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Laws dealing with such matters; and (c) all payments due from any of the Borrower or its Restricted Subsidiaries on account of employee health and welfare insurance have been paid or accrued as a liability on the books of the relevant party.  All employees of the Holding Companies and their Subsidiaries (other than property-level employees at or below the general manager level) are employees of the Borrower or any of its Restricted Subsidiaries.

 

SECTION 5.19.  Restructuring Transactions Documentation.  (a) The Restructuring Transactions Documentation listed on Schedule 5.19 constitute all of the material agreements, instruments and undertakings relating to, or arising out of, the Restructuring Transactions.  As of the Closing Date, except as described in Schedule 5.19, none of the Restructuring Transactions Documentation has been amended, supplemented or otherwise modified, and all such Restructuring Transactions Documentation is in full force and effect.  To the knowledge of the Responsible Officers of the Borrower, no party to any of the Restructuring Transactions Documentation is in default thereunder as of the Closing Date.

 

(b)           As of the Closing Date, the representations and warranties of the applicable Loan Parties and their Affiliates set forth in the Restructuring Transactions Documentation are true and correct in all material respects.

 

SECTION 5.20.  Collateral.  To the extent required by the Collateral and Guarantee Requirement and Section 4.01(a), the provisions of the Collateral Documents are effective to create in favor of the Administrative Agent for the benefit of the Secured Parties a legal, valid and enforceable first priority Lien (subject to Permitted Liens) on all right, title and interest of the respective Loan Parties in the Collateral, and no filing, recording, registration or other action will be necessary to perfect or protect such Liens, except (a) for the filing of all applicable UCC financing statements and all applicable filings with the United States Patent and Trademark Office and United States Copyright Office to be filed on the Closing Date or immediately thereafter, (b) as provided under applicable Law with respect to the filing of continuation statements for previously filed UCC financing statements, and (c) approvals from the applicable Gaming Authorities of the Shareholder Pledge Agreement and the Pledge Agreement, which have been duly obtained, taken, given or made and are in full force and effect.

 

SECTION 5.21.  Location of Real Property.  Schedule 5.21 lists completely and correctly, as of the Closing Date, all material owned or leased Real Property and the addresses thereof, indicating for each parcel whether it is owned or leased, including in the case of leased Real Property, the landlord name, lease date and lease expiration date.  The Borrower and its Restricted Subsidiaries own in fee or have valid leasehold interests in, as the case may be, all the real property set forth on Schedule 5.21.

 

SECTION 5.22.  Permits.  (a) The Borrower and each Restricted Subsidiary has obtained and holds all Permits (including, without limitation, all Gaming Permits) required in

 

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respect of all Real Property and for any other property otherwise operated by or on behalf of, or for the benefit of, such Person and for the operation of each of its businesses as presently conducted and as proposed to be conducted, (b) all such Permits are in full force and effect, and each such Person has performed and observed all requirements of such Permits, (c) no event has occurred that allows or results in, or after notice or lapse of time would allow or result in, revocation or termination by the issuer thereof or in any other impairment of the rights of the holder of any such Permit, (d) no such Permits contain any restrictions, either individually or in the aggregate, that are materially burdensome to any such Person, or to the operation of any of its businesses or any property owned, leased or otherwise operated by such Person, (e) each such Person reasonably believes that each of its Permits will be timely renewed and complied with, without material expense, and that any additional Permits that may be required of such Person will be timely obtained and complied with, without material expense and (f) no such Person has any knowledge or reason to believe that any Governmental Authority is considering limiting, suspending, revoking or renewing on materially burdensome terms any such Permit, in each case except as which could not reasonably be expected to have a Material Adverse Effect.  The use being made of each Mortgaged Property is in conformity with the certificate of occupancy issued for such Mortgaged Property, to the extent applicable (except to the extent any such failure would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect).  All Gaming Permits required to be held by the Borrower and its Restricted Subsidiaries are current and in good standing and the Borrower and the relevant Restricted Subsidiaries presently hold all Gaming Permits necessary for the continued operation of each Hotel/Casino Facility as a non-restricted gaming facility.

 

SECTION 5.23.  Fiscal Year.  As of the Closing Date, the fiscal year of the Holding Companies, the Borrower and each Restricted Subsidiary ends on December 31 of each calendar year.

 

SECTION 5.24.  Patriot Act.  To the extent applicable, each Loan Party is in compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) the Patriot Act.

 

SECTION 5.25.  Use of Proceeds.  The Borrower will use the proceeds of the Revolving Credit Loans and Swing Line Loans (a) to fund a portion of the consideration paid by the Borrower on the Closing Date in respect of the OpCo Acquisition, and (b) for working capital and other general corporate purposes of the Borrower and its Restricted Subsidiaries, including the financing of the GVR Acquisition and Permitted Acquisitions and other Investments to the extent permitted under Section 7.02.  Letters of Credit will be used for general corporate purposes of the Borrower, the Restricted Subsidiaries and, to the extent permitted under Sections 2.03(a) and 7.02, Unrestricted Subsidiaries.

 

SECTION 5.26.  OpCo Cost Allocation.  As of the Closing Date, the allocation of “Costs” (as defined in the OpCo Cost Allocation Agreement), other than “Costs” that were not generally incurred prior to the Closing Date, among the Borrower, OpCo and their respective Subsidiaries pursuant to the OpCo Cost Allocation Agreement is generally consistent with the historical cost allocation practices of Old OpCo.

 

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ARTICLE VI

 

Affirmative Covenants

 

So long as any Lender shall have any Revolving Credit Commitment hereunder, any Loan shall remain outstanding, any other Obligation hereunder which is accrued and payable shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, 6.03, 6.17 and 6.18) cause the Holding Companies and each Restricted Subsidiary to:

 

SECTION 6.01.  Financial Statements.  Deliver to the Administrative Agent for prompt further distribution to each Lender:

 

(a)           as soon as available, but in any event within one hundred five (105) days after the end of each fiscal year of the Borrower beginning with the fiscal year ended December 31, 2011, (x) consolidated and consolidating balance sheets of the Borrower and its Restricted Subsidiaries as at the end of such fiscal year, and the related consolidated and consolidating statements of income or operations, members’ equity and cash flows for such fiscal year, setting forth in each case in comparative form (A) the figures for the previous fiscal year and (B) in the case of such statements of income or operations, beginning with the fiscal year ended December 31, 2011, the budget for such fiscal year, all in reasonable detail and prepared in accordance with GAAP, and (1) in the case of such consolidated financial statements, audited and accompanied by a report and opinion of Ernst & Young LLP or any other independent registered public accounting firm of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit, and (2) in the case of such consolidating financial statements, certified by a Responsible Officer of the Borrower as fairly presenting in all material respects the financial condition, results of operations, members’ equity and cash flows of the Borrower and each of its Restricted Subsidiaries in accordance with GAAP and (y) management’s discussion and analysis of the important operational and financial developments of the Borrower and the Restricted Subsidiaries during such fiscal year;

 

(b)           as soon as available, but in any event within forty-five (45) days after the end of each fiscal quarter of the Borrower beginning with the fiscal quarter ended June 30, 2011, (x) a consolidated balance sheet of the Borrower and its Restricted Subsidiaries as at the end of such fiscal quarter, and the related (i) consolidated statements of income or operations for such fiscal quarter and for the portion of the fiscal year then ended and (ii) consolidated statements of cash flows for such fiscal quarter and the portion of the fiscal year then ended, setting forth in each case in comparative form (A) for any fiscal quarter ending after the first anniversary of the Closing Date, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year and (B) in the case of such statements of income or operations, the budget for such fiscal quarter and the portion of the fiscal year then ended, all in reasonable detail and certified by a Responsible Officer of the Borrower as fairly presenting in all material respects the financial condition, results of operations and cash flows of the Borrower and its Restricted Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes and (y)

 

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beginning with the delivery of financial information for the fiscal quarter ended December 31, 2011, management’s discussion and analysis of the important operational and financial developments of the Borrower and the Restricted Subsidiaries during such fiscal quarter;

 

(c)           as soon as available, but in any event within thirty (30) days after the end of each fiscal month of the Borrower beginning with the fiscal month ended June 30, 2011, (i) a monthly revenue report in respect of the Mortgaged Properties for such fiscal month, for the corresponding fiscal month of the previous fiscal year and for the corresponding portion of previous fiscal year and (ii) consolidated statements of income or operations of the Borrower and the Restricted Subsidiaries for such fiscal month and for the portion of the fiscal year then ended, all in reasonable detail and certified by a Responsible Officer of the Borrower as fairly presenting in all material respects the financial condition and results of operations of the Borrower and its Restricted Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes;

 

(d)           (i) as soon as available, but in any event within ninety (90) days after the end of each fiscal year of Holdco beginning with the fiscal year ended December 31, 2011, (x) consolidated balance sheets of Holdco and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, members’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, audited and accompanied by a report and opinion of Ernst & Young LLP or any other independent registered public accounting firm of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit, and (y) management’s discussion and analysis of the important operational and financial developments of Holdco and its Subsidiaries during such fiscal year and (ii) as soon as available, but in any event within one hundred five (105) days after the end of each fiscal year of Holdco beginning with the fiscal year ended December 31, 2011, consolidating balance sheets of Holdco and its Subsidiaries as at the end of such fiscal year, and the related consolidating statements of income or operations, members’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, certified by a Responsible Officer of Holdco as fairly presenting in all material respects the financial condition, results of operations, members’ equity and cash flows of each of (1) Holdco and its Subsidiaries, (2) the Borrower and the Restricted Subsidiaries, (3) LandCo Holdings and its Subsidiaries, (4) OpCo Holdings and its Subsidiaries, (5) from and after the GVR Acquisition Consummation Date, the GVR Entities and (6) each other Unrestricted Subsidiary in accordance with GAAP.

 

(e)           as soon as available, but in any event within forty-five (45) days after the end of each fiscal quarter of Holdco beginning with the fiscal quarter ended June 30, 2011, (x) a consolidated balance sheet of Holdco and its Subsidiaries as at the end of such fiscal quarter, and the related (i) consolidated statements of income or operations of Holdco and its Subsidiaries for such fiscal quarter and for the portion of the fiscal year then ended,  (ii) consolidated statements of cash flows of Holdco and its Subsidiaries for such fiscal quarter and for the portion of the fiscal year then ended and (iii) consolidating statements of income or operations for each of (A) the Borrower and the Restricted Subsidiaries, (B) LandCo Holdings and its Subsidiaries, (C) OpCo Holdings and its Subsidiaries, (D) from and after the GVR

 

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Acquisition Consummation Date, the GVR Entities and (E) each other Unrestricted Subsidiary for such fiscal quarter and for the portion of the fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail and certified by a Responsible Officer of Holdco as fairly presenting in all material respects the financial condition, results of operations and cash flows of Holdco and its Subsidiaries and the financial condition and results of operations of each of (A) the Borrower and the Restricted Subsidiaries, (B) LandCo Holdings and its Subsidiaries, (C) OpCo Holdings and its Subsidiaries, (D) from and after the GVR Acquisition Consummation Date, the GVR Entities and (E)  each other Unrestricted Subsidiary in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes and (y) management’s discussion and analysis of the important operational and financial developments of Holdco and its Subsidiaries during such fiscal quarter;

 

(f)            as soon as available, and in any event no later than thirty (30) days after  the end of each fiscal year of the Borrower, (i) an operating and capital expenditure budget (in each case presented on a monthly and annual basis) (each a “Budget”) for the Borrower and the Restricted Subsidiaries for the following fiscal year and (ii) forecasts prepared by management of the Borrower, in form and substance reasonably acceptable to the Administrative Agent, including projected balance sheets, income statements and cash flow statements on a monthly basis for such following fiscal year, on a quarterly basis for the fiscal year thereafter and on an annual basis for the next five fiscal years thereafter.  Each such proposed Budget shall identify and set forth the Borrower’s best estimate, after due consideration, of all revenue, costs, and expenses for the Borrower and the Restricted Subsidiaries, and shall specify gross revenues and operating expenses, including, without limitation, amounts due monthly and annually under the Material Contracts of the Loan Parties, under the Management Agreement, insurance premiums and expenditures for FF&E for such fiscal year.  The Budget shall identify and set forth the Borrower’s best estimate, after due consideration, of all costs and expenses contemplated to be necessary in the related budget year (and, as to projects initiated or to be initiated in or prior to the budget year but not completed in the budget year, the estimated cost and completion schedule) for capital improvements and leasehold improvements not included in the Budget, and the contemplated sources of payment of the same; and

 

(g)           within fifteen (15) days after filing thereof, copies of the reports required under Regulation 6.080 of Nevada Gaming Commission Regulation 6 (Accounting Regulations).

 

SECTION 6.02.  Certificates; Other Information.  Deliver to the Administrative Agent for prompt further distribution to each Lender:

 

(a)           concurrently with the delivery of the financial statements referred to in Section 6.01(a), a certificate of its independent registered public accounting firm certifying such financial statements and stating that in making the examination necessary therefor no knowledge was obtained of any Event of Default under Section 7.11 or, if knowledge of any such Event of Default was so obtained, relevant information stating the nature and status of such event;

 

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(b)           concurrently with delivery of the financial statements referred to in Section 6.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible Officer of the Borrower and, if such Compliance Certificate demonstrates an Event of Default of any covenant under Section 7.11, Holdco may deliver, together with such Compliance Certificate, notice of its intent to cure (a “Notice of Intent to Cure”) such Event of Default pursuant to Section 8.05; provided that the delivery of a Notice of Intent to Cure shall in no way affect or alter the occurrence, existence or continuation of any such Event of Default or the rights, benefits, powers and remedies of the Administrative Agent and the Lenders under any Loan Document;

 

(c)           promptly after the same are publicly available, copies of all annual, regular, periodic and special reports and registration statements which the Borrower files with the SEC or with any Governmental Authority that may be substituted therefor (other than amendments to any registration statement (to the extent such registration statement, in the form it became effective, is delivered), exhibits to any registration statement and, if applicable, any registration statement on Form S-8) and in any case not otherwise required to be delivered to the Administrative Agent pursuant hereto;

 

(d)           no later than five (5) days after the delivery of each Compliance Certificate pursuant to Section 6.02(b) (or, if not received by the Borrower or the applicable Subsidiary prior to the date of such delivery, promptly after receipt thereof), a copy of (i) each report delivered by the Manager to the Borrower pursuant to the Management Agreement with respect to the calculation of the Management Fees (as defined in the Management Agreement) for the fiscal period covered by such Compliance Certificate and (ii) each report delivered by any manager to any Unrestricted Subsidiary pursuant to a management agreement or similar agreement with respect to calculation of the related management fee for the fiscal period covered by such  Compliance Certificate;

 

(e)           no later than five (5) days after the delivery of each Compliance Certificate pursuant to Section 6.02(b), copies of any material requests or material notices received by the Borrower or any Restricted Subsidiary (other than in the ordinary course of business) during the fiscal period covered by such Compliance Certificate or material statements or material reports furnished during the fiscal period covered by such Compliance Certificate to any holder of debt securities of the Borrower or any Restricted Subsidiary pursuant to the terms of any Indebtedness (other than intercompany Indebtedness among the Borrower and the Restricted Subsidiaries) of the Borrower or any Restricted Subsidiary in a principal amount greater than the Threshold Amount and not otherwise required to be furnished to the Lenders pursuant to any other clause of this Section 6.02;

 

(f)            no later than five (5) days after the delivery of each Compliance Certificate pursuant to Section 6.02(b), (i) updated exhibits to the Security Agreement in accordance with Section 4.14 of the Security Agreement or confirming that there has been no change in such exhibits since the Closing Date (or the date of the last such report), (ii) updated exhibits to the Pledge Agreement in accordance with Section 4.8 of the Pledge Agreement or confirming that there has been no change in such exhibits since the Closing Date (or the date of the last such report), (iii) updated exhibits to the Shareholder Pledge Agreement in accordance with Section 4.8 of the Shareholder Pledge Agreement or confirming that there has been no

 

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change in such exhibits since the Closing Date (or the date of the last such report), (iv) a description of each event, condition or circumstance during the fiscal period covered by such Compliance Certificate requiring a mandatory prepayment under Section 2.05(b), (v) a list of each Subsidiary that identifies each Subsidiary as a Restricted Subsidiary or an Unrestricted Subsidiary as of the date of delivery of such Compliance Certificate and indicates whether such Subsidiary is a Native American Subsidiary, (vi) a report setting forth the payments received by the Borrower under the Subsidiary Cost Allocation Agreements during such fiscal period and (vii) copies of each amendment, consent, modification or waiver to the Manager Documents, the Holding Company Tax Sharing Agreement, any Subsidiary Cost Allocation Agreement, any Transition Services Agreement or any Subsidiary Tax Sharing Agreement entered into during such fiscal period not previously delivered pursuant to Section 6.03(b); and

 

(g)           promptly, such additional information regarding the business, legal, financial or corporate affairs of the Holding Companies, any Loan Party or any Subsidiary, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender through the Administrative Agent may from time to time reasonably request.

 

Documents required to be delivered pursuant to Section 6.01(a), (b), (c), (d) or (e) or Section 6.02(c) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the website address listed on Schedule 10.02; or (ii) on which such documents are posted on the Borrower’s behalf on IntraLinks/IntraAgency or another relevant website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that:  (i) upon written request by the Administrative Agent, the Borrower shall deliver paper copies of such documents to the Administrative Agent for further distribution to each Lender until a written request to cease delivering paper copies is given by the Administrative Agent and (ii) the Borrower shall notify (which may be by facsimile or electronic mail) the Administrative Agent of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper copies of the Compliance Certificates required by Section 6.02(b) to the Administrative Agent.  Each Lender shall be solely responsible for timely accessing posted documents or requesting delivery of paper copies of such documents from the Administrative Agent and maintaining its copies of such documents.

 

The Borrower hereby acknowledges that (a) the Administrative Agent will make available to the Lenders and the L/C Issuers materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks/IntraAgency or another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities.  The Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be

 

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clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, the L/C Issuers and the Lenders to treat such Borrower Materials as not containing any material non-public information (although it may be sensitive and proprietary) with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.08); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (z) the Administrative Agent shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information.”

 

SECTION 6.03.  Notices.  Promptly after obtaining knowledge thereof, notify the Administrative Agent of:

 

(a)             the occurrence of any Default (such notice to be provided within two Business Days of such knowledge);

 

(b)             any material amendment, waiver or other modification made to, or delivery of any notice of default or termination or assignment of, any Manager Document, the Holding Company Tax Sharing Agreement, any Subsidiary Cost Allocation Agreement, any Transition Services Agreement or any Subsidiary Tax Sharing Agreement;

 

(c)           any material amendment, waiver or other material modification made to, or delivery of any notice of default or termination of, or the entry into, any Material Contract of any Loan Party, any LandCo Loan Document, any OpCo Loan Document or any GVR Loan Document (together with a copy of any such amendment, waiver, modification or notice);

 

(d)           the entering into by the Borrower or any Subsidiary of any management contract (together with a copy of any such management contract) whereby another Person will manage the gaming operations at one or more of the properties owned or leased by the Borrower or its Subsidiaries;

 

(e)           any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect, including arising out of or resulting from (i) breach or non-performance of, or any default or event of default under, a Contractual Obligation of any Loan Party or any Subsidiary, (ii) any dispute, litigation, investigation, proceeding or suspension between any Loan Party or any Subsidiary and any Governmental Authority, (iii) the commencement of, or any material development in, any litigation or proceeding affecting any Loan Party or any Subsidiary, including pursuant to any applicable Environmental Laws or in respect of IP Rights or the assertion or occurrence of any noncompliance by any Loan Party or as any of its Subsidiaries with, or liability under, any Environmental Law or Environmental Permit, or (iv) the occurrence of any ERISA Event;

 

(f)            the occurrence of a Casualty Event or the damage, loss or destruction of a material portion of the Collateral;

 

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(g)         with respect to Plan years beginning on or after December 31, 2010, any documents or notices described in Section 101(k) of ERISA that any Loan Party or ERISA Affiliate has received with respect to any Multiemployer Plan;

 

(h)           receipt by any Loan Party of any written communication to any Holding Company, the Borrower, any Restricted Subsidiary, the Manager or Fertitta Entertainment from any Gaming Authority advising it of a material violation of or material non-compliance with any Gaming Law by a Holding Company, the Borrower, any Restricted Subsidiary, the Manager or Fertitta  Gaming; and

 

(i)            the occurrence of any event of default under the LandCo Credit Agreement, the OpCo Credit Agreement or the GVR Credit Agreement.

 

Each notice pursuant to this Section shall be accompanied by a written statement of a Responsible Officer of the Borrower (x) that such notice is being delivered pursuant to Section 6.03(a) through (i) (as applicable) and (y) setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto.

 

SECTION 6.04.  Payment of Obligations.  File all U.S. federal income and other material tax returns required to be filed in any jurisdiction and pay, discharge or otherwise satisfy as the same shall become due and payable, all its material obligations and liabilities in respect of material taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or in respect of its property.

 

SECTION 6.05.  Preservation of Existence, Etc.  (a) Preserve, renew and maintain in full force and effect its legal existence under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 7.04 or 7.05 and (b) take all reasonable action to maintain all rights, privileges (including its good standing), Permits, licenses and franchises necessary or desirable in the normal conduct of its business, except (i) to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect or (ii) pursuant to a transaction permitted by Section 7.04 or 7.05.

 

SECTION 6.06.  Maintenance of Properties; Employees.  Except if the failure to do so could not reasonably be expected to have a Material Adverse Effect, (a) maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order, repair and condition, ordinary wear and tear excepted and casualty or condemnation excepted, and (b) make all necessary renewals, replacements, modifications, improvements, upgrades, extensions and additions thereof or thereto in accordance with prudent industry practice.  The Borrower shall cause all employees of the Holding Companies and their Subsidiaries (other than property-level employees at or below the general manager level, which may be employed at Subsidiaries) to be employees of the Borrower or any of its Restricted Subsidiaries.

 

SECTION 6.07.  Maintenance of Insurance.  Maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar

 

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business, in accordance with the requirements specified in Exhibit L or as otherwise reasonably requested by the Administrative Agent and ensure that the Administrative Agent is an additional insured and/or loss payee, as applicable, under such insurance, as reasonably requested by the Administrative Agent.

 

SECTION 6.08.  Compliance with Laws.  (a) Comply in all material respects with any requirements of all Laws, and all orders, writs, injunctions and decrees, of any Governmental Authority applicable to it or to its business or property, except if the failure to do so could not reasonably be expected to have a Material Adverse Effect, (b) take, or cause to be taken, all action necessary to maintain in full force and effect and in good standing any and all Gaming Permits and approvals or other entitlements allowing for the conduct, either currently or in the future, of nonrestricted gaming activities on any applicable Mortgaged Property (or any portion thereof), in each case, that are material to the operation of such Mortgaged Property and (c) take, or cause to be taken, all action necessary to maintain in full force and effect and in good standing any and all other Permits (including all Permits under Liquor Laws) material to the operation of each Hotel/Casino Facility.

 

SECTION 6.09.  Books and Records; Quarterly Conference Calls.

 

(a)           Maintain proper books of record and account, in which entries that are full, true and correct in all material respects and in conformity with GAAP consistently applied shall be made of all material financial transactions and matters involving the assets and business of the Holding Companies, the Borrower or such Subsidiary, as the case may be.

 

(b)           At the request of the Administrative Agent, within 10 days after the date of the delivery (or, if later, required delivery) of the annual or quarterly financial information pursuant to Sections 6.01(a) and (b), beginning with the delivery of the financial information for the fiscal year ended December 31, 2011, hold a conference call or teleconference, at a time selected by the Borrower and reasonably acceptable to the Administrative Agent, with all of the Lenders that choose to participate, to review the financial results of the previous fiscal year or fiscal quarter, as the case may be, and the financial condition of Holdco and its Subsidiaries and the Borrower and the Restricted Subsidiaries and the Budget for the current fiscal year.

 

SECTION 6.10.  Inspection Rights.  Subject to applicable Gaming Laws, permit representatives, designees and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its officers and independent public accountants, all at the reasonable expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided that (x) only the Administrative Agent on behalf of the Lenders may exercise rights of the Administrative Agent and the Lenders under this Section 6.10, and (y) absent the existence of an Event of Default, the Administrative Agent shall not exercise such rights more often than (i) four (4) times during the first year following the Closing Date and (ii) from and after the first anniversary of the Closing Date, two (2) times during each 12 month period commencing on the first anniversary of the Closing Date; provided, further, that when an Event of Default exists, the Administrative Agent (or any of its  representatives or independent contractors) may do any of the foregoing at the

 

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expense of the Borrower (without limitation as to the number of such visits) at any time during normal business hours and upon reasonable advance notice (it being understood and agreed that the Administrative Agent shall give the Borrower the opportunity to participate in any discussions with the Borrower’s independent public accountants).  Without limitation of the foregoing, the Borrower shall, and shall cause the Restricted Subsidiaries, to comply with the covenants specified in Exhibit N.

 

SECTION 6.11.  Covenant to Guarantee Obligations and Give Security.  (a) At the Borrower’s expense, promptly take all action necessary or reasonably requested by the Administrative Agent to ensure that the Collateral and Guarantee Requirement continues to be satisfied.

 

(b)           Without limitation of the foregoing paragraph (a), upon the formation or acquisition of any new direct or indirect Subsidiary (other than an Unrestricted Subsidiary) by any Loan Party or the designation in accordance with Section 6.14(a) of any existing direct or indirect Subsidiary as a Restricted Subsidiary:

 

(i)            within thirty (30) days after such formation, acquisition or designation or such longer period as the Administrative Agent may agree in its discretion:

 

(A)          cause each such Restricted Subsidiary to furnish to the Administrative Agent a description of the Real Properties owned or leased by such Restricted Subsidiary, in detail reasonably satisfactory to the Administrative Agent;

 

(B)           cause (x) each such Restricted Subsidiary to duly execute and deliver to the Administrative Agent Mortgages, Security Agreement Supplements, Pledge Agreement Supplements, Intellectual Property Security Agreements, Control Agreements and a counterpart of the Intercompany Note and to execute, deliver, file and record any such other documents, statements, assignments, instruments, agreements or other papers and take all other actions necessary in order to create a first-priority perfected security interest (subject only to Permitted Liens) in all of its assets that are required to be pledged pursuant to the Collateral and Guarantee Requirement (including, with respect to such Mortgages, the documents listed in Section 6.13(b)), as reasonably requested by and in form and substance reasonably satisfactory to the Administrative Agent (to the extent applicable due to similar jurisdiction and/or type of property, consistent with the Mortgages, Security Agreement, Pledge Agreement, Intellectual Property Security Agreements and other security agreements in effect on the Closing Date), in each case granting Liens required by the Collateral and Guarantee Requirement and (y) each direct or indirect parent of each such Restricted Subsidiary to duly execute and deliver to the Administrative Agent such Security Agreement Supplements and Pledge Agreement Supplements and to execute, deliver, file and record any such other documents, statements, assignments, instruments, agreements or other papers and take all other actions (with the priority required by the Collateral Documents) as reasonably requested by and in form and substance reasonably satisfactory to the Administrative Agent (to the extent applicable due

 

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to similar jurisdiction and/or type of property, consistent with the Security Agreement and Pledge Agreement in effect on the Closing Date), in each case granting Liens required by the Collateral and Guarantee Requirement;

 

(C)           subject to the receipt of any approvals required under applicable Gaming Laws, (x) cause each such Restricted Subsidiary to deliver any and all certificates representing Equity Interests (to the extent certificated) that are required to be pledged pursuant to the Collateral and Guarantee Requirement, accompanied by undated stock powers or other appropriate instruments of transfer executed in blank and instruments evidencing the intercompany Indebtedness held by such Restricted Subsidiary and required to be pledged pursuant to the Collateral Documents, indorsed in blank to the Administrative Agent and (y) cause each direct or indirect parent of such Restricted Subsidiary to deliver any and all certificates representing the outstanding Equity Interests (to the extent certificated) of such Restricted Subsidiary that are required to be pledged pursuant to the Collateral and Guarantee Requirement, accompanied by undated stock powers or other appropriate instruments of transfer executed in blank and instruments evidencing the intercompany Indebtedness issued by such Restricted Subsidiary and required to be pledged in accordance with the Collateral Documents indorsed in blank to the Administrative Agent;

 

(D)          take and cause such Restricted Subsidiary and each direct or indirect parent of such Restricted Subsidiary to take whatever action (including the recording of Mortgages, the filing of Uniform Commercial Code financing statements, (subject to applicable Gaming Laws) delivery of stock and membership interest certificates and delivery of promissory notes duly endorsed in favor of the Administrative Agent (if any such Investment is by way of loan or advance)) may be necessary in the reasonable opinion of the Administrative Agent to vest in the Administrative Agent (or in any representative of the Administrative Agent designated by it) valid Liens required by the Collateral and Guarantee Requirement, enforceable against all third parties in accordance with their terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles of equity;

 

(E)           cause each such Restricted Subsidiary to duly execute and deliver to the Administrative Agent a Guaranty Supplement or a new guaranty, in each case in form and substance reasonably satisfactory to the Administrative Agent, guaranteeing the Obligations; and

 

(F)           cause each such Restricted Subsidiary to deliver to the Administrative Agent such documents and certificates as would have been required pursuant to Sections 4.01(a)(iii) and (v) had such Subsidiary been a Restricted Subsidiary on the Closing Date;

 

(ii)           within thirty (30) days after the request therefor by the Administrative Agent or such longer period as the Administrative Agent may agree in its discretion, deliver to the Administrative Agent a signed copy of an opinion, addressed to the

 

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Administrative Agent and the other Secured Parties, of counsel for the Loan Parties reasonably acceptable to the Administrative Agent as to such matters of law set forth in this Section 6.11(b) as the Administrative Agent may reasonably request; and

 

(iii)          as promptly as practicable after the request therefor by the Administrative Agent, deliver to the Administrative Agent with respect to each parcel of Real Property that is required to be subject to a Lien for the benefit of the Lenders pursuant to the Collateral and Guarantee Requirement any existing title reports, surveys or environmental assessment reports.

 

(c)           Without limitation of the foregoing paragraph (a), concurrently with (x) the acquisition of any material personal property by the Borrower or any Restricted Subsidiary, (y) the acquisition of any owned Real Property by the Borrower or any Restricted Subsidiary that is either (i) contiguous to any Mortgaged Property and the Administrative Agent reasonably determines that the value of the applicable Mortgaged Property is materially increased by encumbering such contiguous property and such material increase in value outweighs the costs and expenses associated with encumbering such contiguous property or (ii) has a Fair Market Value in excess of $1,000,000 or (z) the entering into, or renewal, by the Borrower or any Restricted Subsidiary of a material ground lease in respect of Real Property, if such personal property, owned Real Property or lease shall not already be subject to a perfected Lien pursuant to the Collateral and Guarantee Requirement, the Borrower shall give notice thereof to the Administrative Agent and, within thirty (30) days of such acquisition, or entry into or renewal of such ground lease, cause such assets to be subjected to a Lien to the extent required by the Collateral and Guarantee Requirement and will take, or cause the relevant Loan Party to take, such actions as shall be necessary or reasonably requested by the Administrative Agent to grant and perfect or record such Lien, including, as applicable, the actions referred to in Section 6.13(b) with respect to Real Property.

 

SECTION 6.12.  Compliance with Environmental Laws.  Except, in each case, to the extent that the failure to do so could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, comply, and take all reasonable actions to cause all lessees and other Persons operating or occupying its properties to comply with all applicable Environmental Laws and Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and properties; and, in each case to the extent required by Environmental Laws, conduct any investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous Materials from any of its properties, in accordance with the requirements of all Environmental Laws.

 

SECTION 6.13.  Further Assurances and Post-Closing Conditions.  (a) Promptly upon reasonable request by the Administrative Agent (i) correct any material defect or error that may be discovered in the execution, acknowledgment, filing or recordation of any Collateral Document or other document or instrument relating to any Collateral, and (ii) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Administrative Agent may reasonably request from time to time in order to carry out more effectively the purposes of the Collateral Documents.

 

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(b)           In the case of any Real Property referred to in Section 6.11(b)(i)(B) or 6.11(c), provide the Administrative Agent with Mortgages with respect to such owned Real Property or material ground lease within the time periods specified herein, together with:

 

(i)            evidence that counterparts of the Mortgages have been duly executed, acknowledged and delivered and are in form suitable for filing or recording in all filing or recording offices that the Administrative Agent may deem reasonably necessary or desirable in order to create a valid and subsisting perfected Lien on the property and/or rights described therein in favor of the Administrative Agent for the benefit of the Secured Parties and that all filing and recording taxes and fees have been paid or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent;

 

(ii)           fully paid American Land Title Association Lender’s Extended Coverage title insurance policies or the equivalent or other form available in each applicable jurisdiction (the “Mortgage Policies”) in form and substance, with endorsements (including endorsements for future advances under the Loan Documents) and in amount, reasonably acceptable to the Administrative Agent (not to exceed the value of the real properties covered thereby), issued, coinsured and reinsured by title insurers reasonably acceptable to the Administrative Agent, insuring the Mortgages to be valid subsisting Liens on the property described therein, free and clear of all defects and encumbrances, subject to Permitted Liens, and providing for such other affirmative insurance and such coinsurance and direct access reinsurance as the Administrative Agent may reasonably request;

 

(iii)          opinions of local counsel for the Loan Parties in states in which such Real Properties are located, with respect to the enforceability of and creation of a valid lien of record under, and perfection of, the Mortgages and any related fixture filings in form and substance reasonably satisfactory to the Administrative Agent;

 

(iv)          flood certificates covering each Mortgaged Property in form and substance reasonably acceptable to the Administrative Agent, certified to the Administrative Agent in its capacity as such and certifying whether or not each such Mortgaged Property is located in a flood hazard zone by reference to the applicable FEMA map;

 

(v)           either (A) a letter or other evidence with respect to each Mortgaged Property from the appropriate Governmental Authorities concerning compliance with applicable zoning and building laws, (B) an ALTA 3.1 zoning endorsement for such Mortgage Policy or (C) a zoning report prepared by The Planning Zoning Resource Corporation indicating that such Mortgaged Property is in material compliance with applicable zoning and building laws; and

 

(vi)          such other evidence that all other actions that the Administrative Agent may reasonably deem necessary or desirable in order to create valid and subsisting Liens on the property described in the Mortgages has been taken.

 

SECTION 6.14.  Designation of Subsidiaries.  (a) At the Borrower’s election, at any time designate any Restricted Subsidiary as an Unrestricted Subsidiary or any Unrestricted

 

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Subsidiary as a Restricted Subsidiary; provided that (i) immediately before and after such designation, no Default shall have occurred and be continuing, (ii) immediately after giving effect to such designation, the Borrower and the Restricted Subsidiaries shall be in Pro Forma Compliance with the covenants set forth in Section 7.11 (and, as a condition precedent to the effectiveness of any such designation, the Borrower shall deliver to the Administrative Agent a certificate setting forth in reasonable detail the calculations demonstrating such compliance), (iii) the Investment resulting from the designation of any such Subsidiary as an Unrestricted Subsidiary pursuant to this Section 6.14(a) is permitted by Section 7.02, (iv) any Indebtedness or Liens of any Unrestricted Subsidiary designated as a Restricted Subsidiary pursuant to this Section 6.14(a) are permitted by Sections 7.03 and 7.01, respectively, (v) no Restricted Subsidiary may be designated as an Unrestricted Subsidiary if it was previously designated an Unrestricted Subsidiary, (vi) no Restricted Subsidiary may be designated as an Unrestricted Subsidiary if it owns a Core Property, (vii) no Restricted Subsidiary may be designated as an Unrestricted Subsidiary if (after giving effect to such designation) it will provide any Guarantee of any Indebtedness of the Borrower or any other Restricted Subsidiary, (viii) neither LandCo Holdings nor any of its Subsidiaries may be designated as a Restricted Subsidiary unless and until all commitments and letters of credit under the LandCo Credit Agreement and related loan documents have been terminated and all loans and other obligations thereunder (other than customary indemnification and expense reimbursement obligations not then due and payable that expressly survive the termination thereof) have been paid in full in cash, (ix) neither OpCo Holdings nor any of its Subsidiaries may be designated as a Restricted Subsidiary unless and until all commitments and letters of credit under the OpCo Credit Agreement and related loan documents have been terminated and all loans and other obligations thereunder (other than customary indemnification and expense reimbursement obligations not then due and payable that expressly survive the termination thereof) have been paid in full in cash, (x) no GVR Entity may be designated as a Restricted Subsidiary unless and until all commitments and letters of credit under the GVR Credit Agreement and related loan documents have been terminated and all loans and other obligations thereunder (other than customary indemnification and expense reimbursement obligations not then due and payable that expressly survive the termination thereof) have been paid in full in cash and (xi) after the IP Holdco Transition Date, IP Holdco may not be designated as an Unrestricted Subsidiary.  The designation of any Subsidiary as an Unrestricted Subsidiary (other than any Subsidiary created or acquired in connection with a Permitted Acquisition and designated as an Unrestricted Subsidiary at the time of such Permitted Acquisition) shall constitute an Investment by the Borrower therein  at the date of designation in an amount equal to the Fair Market Value of the net assets of such Subsidiary at the time that such Subsidiary is designated as an Unrestricted Subsidiary.  The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the incurrence at the time of designation of any Indebtedness or Liens of such Subsidiary existing at such time.

 

(b)           At the Borrower’s election, at any time, designate a Restricted Subsidiary as a Native American Subsidiary, but only to the extent that such designation is consistent with the definition of “Native American Subsidiary”.  Upon any Native American Subsidiary’s ceasing to satisfy any of the requirements set forth in the definition of such term, the Borrower shall notify the Administrative Agent thereof and shall take the actions required pursuant to Section 6.11 and such Subsidiary shall cease to be a Native American Subsidiary.

 

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(c)           After all commitments and letters of credit (if any) under the OpCo Credit Agreement have been terminated and all loans and other obligations (other than customary indemnity obligations and expense reimbursement obligations not then due and payable that expressly survive the termination thereof) shall have been paid in full in cash, (i) designate OpCo Holdings and its Subsidiaries as Restricted Subsidiaries, so long as such designation may otherwise be made in compliance with Section 6.14(a) or such designation is otherwise approved by the Administrative Agent (acting with the consent of the Required Lenders) and (ii) thereafter take the actions required pursuant to Section 6.11 in connection therewith.

 

(d)           After all commitments and letters of credit (if any) under the LandCo Credit Agreement have been terminated and all loans and other obligations (other than customary indemnity obligations and expense reimbursement obligations not then due and payable that expressly survive the termination thereof) shall have been paid in full in cash, (i) designate LandCo Holdings and its Subsidiaries as Restricted Subsidiaries, so long as such designation may otherwise be made in compliance with Section 6.14(a) or such designation is otherwise approved by the Administrative Agent (acting with the consent of the Required Lenders) and (ii) thereafter take the actions required pursuant to Section 6.11 in connection therewith.

 

(e)           After all commitments and letters of credit (if any) under the GVR Credit Agreement have been terminated and all loans and other obligations (other than customary indemnity obligations and expense reimbursement obligations not then due and payable that expressly survive the termination thereof) shall have been paid in full in cash, (i) designate the GVR Entities as Restricted Subsidiaries, so long as such designation may otherwise be made in compliance with Section 6.14(a) or such designation is otherwise approved by the Administrative Agent (acting with the consent of the Required Lenders) and (ii) thereafter take the actions required pursuant to Section 6.11 in connection therewith.  This paragraph (e) shall not apply prior to the GVR Acquisition Consummation Date.

 

(f)            On the IP Holdco Transition Date, designate IP Holdco as a Restricted Subsidiary, and the Borrower shall thereafter take the actions required pursuant to Section 6.11 in connection therewith.

 

SECTION 6.15.  Information Regarding Collateral.  Furnish to the Administrative Agent prompt written notice of any change (a) in any Loan Party’s corporate name, (b) in the location of any Loan Party’s chief executive office, its principal place of business, and, upon request of the Administrative Agent, in the location of any office in which it maintains books or records relating to Collateral owned by it or any office or facility at which Collateral owned by it is located (including the establishment of any such new office or facility), (c) in any Loan Party’s identity, jurisdiction of organization or organizational structure or (d) in any Loan Party’s U.S. Federal Taxpayer Identification Number, as applicable, and, in any event, no such change shall be effected or permitted unless all filings have been made (or will be made on a timely basis) under applicable Laws or otherwise and all other actions have been taken (or will be taken on a timely basis) that are required in order for the Administrative Agent to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral; provided that any such written notice under clauses (a) or (c) above shall be given to the

 

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Administrative Agent (or such shorter period as the Administrative Agent may agree in writing) not less than thirty (30) days prior to such change; provided, further, that no Loan Party shall change its jurisdiction of organization to a jurisdiction located outside the United States without the consent of the Required Lenders.

 

SECTION 6.16.  Corporate Separateness.  (a) Satisfy, and cause each of its Restricted Subsidiaries and Unrestricted Subsidiaries to satisfy, customary corporate, limited liability company and other formalities, including, as applicable, the holding of regular board of managers’ or members’ meetings or action by managers or members without a meeting and the maintenance of corporate records.

 

(b)           Ensure that (i) no bank account of any Unrestricted Subsidiary shall be held jointly with the Borrower or any of its Restricted Subsidiaries and no bank account of the Borrower or any Restricted Subsidiary shall be held jointly with any of the Unrestricted Subsidiaries or any other Person, and (ii) any financial statements distributed to any creditors of any Unrestricted Subsidiary shall clearly establish or indicate the corporate separateness of such Unrestricted Subsidiary from the Holding Companies, the Borrower and its Restricted Subsidiaries.

 

SECTION 6.17.  Interest Rate Protection.  Within 60 days after the Closing Date, enter into, and thereafter maintain, Swap Contracts, with terms and conditions reasonably satisfactory to the Administrative Agent and with a counterparty reasonably satisfactory to the Administrative Agent, to the extent necessary to provide that the aggregate principal amount of the Term Loans subject to either a fixed interest rate or interest rate protection for a period of not less than three years from the date of the entry into the applicable Swap Contract, together with the aggregate outstanding principal balance of the Exchange Securities, shall equal at least 50% of the aggregate outstanding principal balance of the Term Loans and the Exchange Securities.

 

SECTION 6.18.  Management Agreement.

 

(a)           Payment of Sums Due Under Management Agreement. Subject to  Section 6.18(i) below, pay all management fees and other charges reserved in or payable under the Management Agreement on or prior to the due date thereof except where (i) the validity or amount thereof is being contested in good faith, (ii) the Borrower has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (iii) the failure to make payment pending such contest would not reasonably be expected to result in a Material Adverse Effect.

 

(b)           Performance of Covenants.  (i) Promptly perform and observe in all material respects all of the terms, covenants and conditions required to be performed and observed by the Borrower under the Management Agreement, the breach of which would permit any party to the Management Agreement validly to terminate the Management Agreement (including, without limitation, all payment obligations), (ii) do all things commercially reasonable to preserve and to keep unimpaired its rights under the Management Agreement, (iii) not waive, excuse or discharge any of the material obligations of the Manager or any other party to the Management Agreement without the Administrative Agent’s prior written consent in each instance, and (iv) enforce the material obligations of the Manager and the other parties to the

 

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Management Agreement, except, in the case of the foregoing clauses (i) through (iv), in any such case where same would not reasonably be expected to have a Material Adverse Effect.

 

(c)           No Modification or Termination.

 

(i)            Not consent to or acquiesce in any amendment, modification, waiver or change to any Manager Document in any manner adverse to the interests of the Lenders in any material respect; it being acknowledged and agreed by the parties hereto that any amendment, waiver or other modification which would have the effect of (A) increasing management fees, required reserves or termination fees or (B) shortening the term thereof shall be deemed adverse to the interests of the Lenders in a material respect.

 

(ii)           Not permit, consent to or acquiesce in any cancellation, termination or surrender of any Manager Document.

 

(d)           Notices of Default.  Promptly (but in no event later than two (2) Business Days after the Borrower’s receipt thereof) deliver (or cause to be delivered) to the Administrative Agent copies of any written notice of default by any party under the Management Agreement, or of any written notice from the Manager or any other party to the Management Agreement of its intention to terminate the Management Agreement.

 

(e)           Delivery of Information.  Promptly furnish (or cause to be furnished) to the Administrative Agent copies of such information and evidence as the Administrative Agent may reasonably request concerning the Borrower’s due observance, performance and compliance with the terms, covenants and conditions of the Management Agreement.

 

(f)            Other Management Agreements; Delegation of Manager’s Duties.  Not enter into any management agreements other than the Management Agreement, or permit the Manager to assign or sub-contract its duties or responsibilities under the Management Agreement (except as permitted under the Management Agreement as in effect on the date hereof).

 

(g)           Further Assurances.  At its sole cost and expense, execute and deliver to Administrative Agent, within five (5) Business Days after request, such documents, instruments or agreements as may be reasonably required to permit the Administrative Agent to cure any default under the Management Agreement.

 

(h)           Management Agreement Cure By Administrative Agent.  In the event of a default by the Borrower in the performance of any of its obligations under the Management Agreement beyond any applicable notice and cure periods therein, including, without limitation, any default in the payment of any sums payable thereunder, then, in each and every such case, subject to applicable Gaming Laws, the Administrative Agent may, at its option, cause the default or defaults to be remedied.  The Borrower shall, on demand, reimburse the Administrative Agent for all advances made and out-of-pocket expenses incurred by the Administrative Agent in curing any such default (including, without limitation, reasonable attorneys’ fees and disbursements), together with interest thereon computed at the Default Rate from the date that such advance is made to and including the date the same is paid to the Administrative Agent.

 

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(i)            Subordination. At all times cause the Management Agreement and all management fees payable thereunder to be subordinated to the Obligations and the Liens held by the Administrative Agent pursuant to the Management Subordination Agreement (or otherwise on terms satisfactory to the Administrative Agent in its sole discretion).

 

(j)            Rights of Administrative Agent. The Administrative Agent shall have the right (but shall have no obligation) at any time that there shall exist and be continuing an Event of Default, to take in Administrative Agent’s own name or in the name of the Borrower (but at the Borrower’s expense, which shall be reimbursed to the Administrative Agent upon demand and shall constitute part of the Obligations), such action as Administrative Agent may at any time or from time to time determine to be necessary, subject to applicable Gaming Laws:

 

(i)            to exercise any of the rights of the Borrower under the Management Agreement and to request and require the Manager to attorn to Administrative Agent (or its designee);

 

(ii)           to terminate the Management Agreement in accordance with, and subject to the terms of, the Management Agreement and the Management Subordination Agreement;

 

(iii)          to amend, modify or extend the Management Agreement by agreement with the Manager;

 

(iv)          to cure any default under the Management Agreement; and

 

(v)           to protect the rights of the Administrative Agent and the Lenders hereunder and under the Management Agreement;

 

and the Administrative Agent shall incur no liability as between itself and the Borrower if any action taken by or on its behalf in good faith pursuant hereto shall prove to be, in whole or in part, inadequate or invalid. Without limiting any of the rights, powers and privileges granted to the Administrative Agent in the other Loan Documents, the Borrower hereby irrevocably makes, constitutes and empowers and authorizes the Administrative Agent (and all officers, employees or agents designated by the Administrative Agent) and hereby irrevocably appoints the Administrative Agent as the Borrower’s attorney-in-fact (which irrevocable appointment is coupled with an interest) for the purpose of enforcing the Borrower’s rights under the Management Agreement and the Administrative Agent’s rights in Section 6.18(h) and (j) upon the occurrence and continuance of an Event of Default.  The Borrower shall, within five (5) Business Days after written request is made therefor by the Administrative Agent, execute and deliver to the Administrative Agent or to any party designated by the Administrative Agent, such further instruments, agreements, powers, assignments, conveyances or the like as may be reasonably necessary or desirable to complete or perfect the interest, rights or powers of the Administrative Agent pursuant to this Section 6.18 or as may otherwise be required by the Administrative Agent.

 

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SECTION 6.19.  Unrestricted Subsidiaries.

 

(a)           Existence and Maintenance of Properties.  Except if the failure to do so could not reasonably be expected to have a Material Adverse Effect, to the extent funds are available at such Unrestricted Subsidiary for such purpose, cause each Unrestricted Subsidiary to:

 

(i)            Preserve, renew and maintain in full force and effect its legal existence;

 

(ii)           (A) Maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order, repair and condition, ordinary wear and tear excepted and casualty or condemnation excepted, and (B) make all necessary renewals, replacements, modifications, improvements, upgrades, extensions and additions thereof or thereto in accordance with prudent industry practice; and

 

(iii)          Maintain such insurance with respect to its properties and business as shall be required by any applicable financing documentation to which it is a party.

 

(b)           Gaming Permits.  Except if the failure to do so could not reasonably be expected to have a Material Adverse Effect, take, or cause to be taken, all action necessary to maintain in full force and effect and in good standing any and all Gaming Permits and approvals or other entitlements allowing for the conduct, either currently or in the future, of nonrestricted gaming activities on any applicable real property (or any portion thereof); provided that any failure to comply with the foregoing shall constitute a breach of this paragraph (b) only if such failure occurs as a result of fraud, gross negligence, intentional misconduct of the Borrower, the Manager or Fertitta Entertainment or their respective principals or Affiliates.

 

(c)           Sale of All or Substantially All Assets.  Within ten (10) Business Days following the sale of all or substantially all of the assets of any Unrestricted Subsidiary and repayment of all Indebtedness thereof, cause to be distributed to the Borrower any Net Cash Proceeds of such sale (determined as if each reference in the definition of “Net Cash Proceeds” to a Restricted Subsidiary was to an Unrestricted Subsidiary) remaining after repayment of the Indebtedness of such Unrestricted Subsidiary and repayment of (or establishment of reasonable reserves for) any other liabilities of such Unrestricted Subsidiary.

 

(d)           GVR Acquisition.  Within ten (10) Business Days after the GVR Acquisition Consummation Date (or, if the GVR Acquisition Consummation Date shall be the Closing Date, on the Closing Date), deliver to the Administrative Agent certified copies of the GVR Credit Agreement, the GVR Tax Sharing Agreement, the GVR Cost Allocation Agreement and the GVR Transition Services Agreement, in each case, in form and substance acceptable to the Administrative Agent.

 

(e)           Transition Services Agreements.  The performance by the Borrower or any of its Restricted Subsidiaries of any obligation expressly required of it under a Transition Services Agreement shall not give rise to a Default under this Agreement or any other Loan Document.

 

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SECTION 6.20.  Equity Issuances.

 

(a)           In the case of Holdco, contribute to the Borrower, on or prior to the date which is five (5) Business Days after the receipt of such Net Cash Proceeds, all Net Cash Proceeds received by Holdco in respect of any capital contribution or sale or issuance of its Equity Interests, other than the proceeds of any Permitted Holdco Convertible Indebtedness Equity Issuance to the extent applied to repay, prepay, redeem, purchase or otherwise satisfy any Holdco Convertible Indebtedness.

 

(b)           In the case of the Borrower, on or prior to the date which is five (5) Business Days after the receipt of such Net Cash Proceeds, deposit to a segregated deposit account subject to a Control Agreement all funds received from Holdco pursuant to the foregoing paragraph (a) (net of the Applicable Clawback Amount with respect thereto) and, until such funds have been applied to a Permitted Acquisition, Investment or Capital Expenditure in accordance with Section 2.05(b)(iv) or applied to repayment of the Loans (including under the Revolving Credit Facility), maintain such funds in a segregated deposit account subject to a Control Agreement.

 

SECTION 6.21.  Subsidiary Cost Allocation Agreements.  (i) Promptly perform and observe in all material respects all of the terms, covenants and conditions required to be performed and observed by the Borrower under each Subsidiary Cost Allocation Agreement, (ii) do all things commercially reasonable to preserve and to keep unimpaired its material rights under each Subsidiary Cost Allocation Agreement, (iii) not waive, excuse or discharge any of the material obligations of any Unrestricted Subsidiary under any Subsidiary Cost Allocation Agreement without the Administrative Agent’s prior written consent in each instance, (iv) enforce the material obligations of each Unrestricted Subsidiary under each Subsidiary Cost Allocation Agreement and (v) cause each Unrestricted Subsidiary to be party to, or otherwise covered by, a Subsidiary Cost Allocation Agreement.

 

SECTION 6.22.  Maintenance of Ratings.  Use commercially reasonable efforts to obtain and maintain (i) a public corporate family rating of the Borrower and a rating of each Class of Term Loans, in each case from Moody’s, and (ii) a public corporate credit rating of the Borrower and a rating of each Class of Term Loans, in each case from S&P (it being understood and agreed that “commercially reasonable efforts” shall in any event include the payment by the Borrower of customary rating agency fees and cooperation with information and data requests by Moody’s and S&P in connection with their ratings process).

 

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ARTICLE VII

 

Negative Covenants

 

So long as any Lender shall have any Revolving Credit Commitment hereunder, any Loan shall remain outstanding, any other Obligation hereunder which is accrued and payable shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower shall not, nor shall it permit any of the Holding Companies or Restricted Subsidiaries to, directly or indirectly:

 

SECTION 7.01.  Liens.  Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:

 

(a)           Liens pursuant to any Loan Document;

 

(b)           Liens existing on the Closing Date and listed on Schedule 7.01(b) and any modifications, replacements, renewals or extensions thereof; provided that (i) any such Lien does not extend to any additional property other than (A) after-acquired property that is affixed or incorporated into the property covered by such Lien, and (B) proceeds and products thereof, and (ii) such Liens shall secure only those obligations which they secure on the Closing Date and refinancings, extensions, renewals and replacements thereof permitted hereunder;

 

(c)           Liens for taxes, assessments or governmental charges which are not yet due or delinquent or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

 

(d)           statutory Liens of landlords, carriers, warehousemen, mechanics, materialmen, repairmen, construction contractors or other like Liens arising in the ordinary course of business which secure amounts not overdue for a period of more than thirty (30) days or if more than thirty (30) days overdue, are unfiled and no other action has been taken to enforce such Lien or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

 

(e)            (i) pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation and (ii) pledges and deposits in the ordinary course of business securing liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or liability insurance to the Borrower or any Restricted Subsidiary;

 

(f)            deposits to secure the performance of bids, trade contracts, governmental contracts and leases (other than Indebtedness for borrowed money and Capitalized Leases), statutory obligations, surety, stay, customs and appeal bonds, performance bonds and other obligations of a like nature (including those to secure health, safety and environmental obligations) incurred in the ordinary course of business;

 

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(g)           public and private easements, rights-of-way, restrictions, encroachments, protrusions, franchises, licenses, permits, zoning laws, covenants, conditions, restrictions and other similar non-monetary encumbrances and minor title defects affecting real property which, in the aggregate, do not in any case materially interfere with the ordinary conduct of the business of the Borrower or any Restricted Subsidiary and any and all exceptions to title disclosed on Schedule B of each of the Mortgage Policies;

 

(h)           Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.01(h), so long as such Liens are adequately bonded (if required by the applicable court) and any appropriate legal proceedings that may have been duly initiated for the review of such judgment have not been finally terminated or the period within which such proceedings may be initiated has not expired;

 

(i)            Liens securing Indebtedness permitted under Section 7.03(e); provided that (i) such Liens attach concurrently with or within two hundred seventy (270) days after the acquisition, repair, replacement, construction or improvement (as applicable) of the property subject to such Liens, (ii) such Liens do not at any time encumber any property except for the property financed by such Indebtedness, accessions thereto and the proceeds and the products thereof, (iii) with respect to Capitalized Leases, such Liens do not at any time extend to or cover any assets (except for accessions to such assets) other than the assets subject to such Capitalized Leases; provided that individual financings of equipment provided by one lender may be cross collateralized to other financings of equipment provided by such lender and (iv) the amount of Indebtedness secured thereby does not exceed the cost of the acquisition, repair, replacement, construction or improvement (as applicable) of such property;

 

(j)            (i) in the case of the Mortgaged Properties, Real Property Leases permitted under Section 7.19 and (ii) with respect to all other properties and assets of the Loan Parties, leases, licenses, subleases or sublicenses granted to others in the ordinary course of business which do not (x) interfere in any material respect with the business of the Borrower or any Restricted Subsidiary or (y) secure any Indebtedness;

 

(k)           Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business;

 

(l)            Liens (i) of a collection bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection, (ii) attaching to commodity trading accounts or other commodities brokerage accounts incurred in the ordinary course of business; and (iii) in favor of a banking institution arising as a matter of law encumbering deposits (including the right of set-off) and which are within the general parameters customary in the banking industry;

 

(m)          Liens (i) on cash advances in favor of the seller of any property to be acquired in an Investment permitted pursuant to Sections 7.02(i) and (n) to be applied against the purchase price for such Investment, and (ii) consisting of an agreement to Dispose of any property in a Disposition permitted under Section 7.05, in each case, solely to the extent such 

 

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Investment or Disposition, as the case may be, would have been permitted on the date of the creation of such Lien;

 

(n)           Liens in favor of the Borrower or a Restricted Subsidiary securing Indebtedness permitted under Section 7.03(d);

 

(o)           Liens existing on property at the time of its acquisition or existing on the property of any Person at the time such Person becomes a Restricted Subsidiary (other than by designation as a Restricted Subsidiary pursuant to Section 6.14), in each case after the Closing Date (other than Liens on the Equity Interests of any Person that becomes a Restricted Subsidiary); provided that (i) such Lien was not created in contemplation of such acquisition or such Person becoming a Restricted Subsidiary, (ii) such Lien does not extend to or cover any other assets or property (other than the proceeds or products thereof and other than after-acquired property subjected to a Lien securing Indebtedness and other obligations incurred prior to such time and which Indebtedness and other obligations are permitted hereunder that require, pursuant to their terms at such time, a pledge of after-acquired property, it being understood that such requirement shall not be permitted to apply to any property to which such requirement would not have applied but for such acquisition), and (iii) the Indebtedness secured thereby is permitted under Section 7.03(e);

 

(p)           any interest or title of a lessor under leases entered into by the Borrower or any of the Restricted Subsidiaries (in their capacities as lessee) in the ordinary course of business;

 

(q)           Liens arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by the Borrower or any of the Restricted Subsidiaries in the ordinary course of business permitted by this Agreement;

 

(r)            Liens deemed to exist in connection with Investments in repurchase agreements under Section 7.02; provided that such Liens do not extend to any assets other than those that are the subject of such repurchase agreement;

 

(s)           Liens encumbering reasonable customary initial deposits and margin deposits and similar Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course of business and not for speculative purposes;

 

(t)            Liens that are contractual rights of set-off (i) relating to the establishment of depository relations with banks not given in connection with the issuance of Indebtedness, (ii) relating to pooled deposit or sweep accounts of the Borrower or any Restricted Subsidiary to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the Borrower and the Restricted Subsidiaries or (iii) relating to purchase orders and other agreements entered into with customers of the Borrower or any Restricted Subsidiary in the ordinary course of business;

 

(u)           Liens solely on any cash earnest money deposits made by the Borrower or any of the Restricted Subsidiaries in connection with any letter of intent or purchase agreement permitted hereunder;

 

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(v)           Liens arising from precautionary UCC financing statement filings regarding operating leases entered into in the ordinary course of business;

 

(w)          other Liens on assets securing Indebtedness outstanding in an aggregate principal amount not to exceed $10,000,000; provided however that no Liens on assets constituting Collateral shall be permitted under this clause (w) to secure Indebtedness for borrowed money or reimbursement obligations under letters of credit of any Loan Party; and

 

(x)            Liens arising under the WF Indemnification Agreement.

 

SECTION 7.02.  Investments.  Make or hold any Investments, except:

 

(a)           Investments by the Borrower or a Restricted Subsidiary in assets that were Cash Equivalents when such Investments were made; provided, however, that (i) at any time Revolving Credit Loans and/or Swing Line Loans are outstanding, the aggregate amount of Unrestricted cash and Cash Equivalents held by the Borrower and its Restricted Subsidiaries shall not exceed $15,000,000 for any period of five consecutive Business Days and (ii) the aggregate amount of Cage Cash maintained by the Borrower and the Restricted Subsidiaries (A) shall not exceed the amount of cash, determined by the Borrower in its reasonable business judgment consistent with past practices, desirable in the ordinary course of business to be maintained in the Hotel/Casino Facilities and (B) shall not exceed $60,000,000 (or such higher amount of Cage Cash as shall be required by the Gaming Authorities for the Borrower and the Restricted Subsidiaries in the aggregate as set forth in a written notice from the Borrower to the Administrative Agent and the Lenders) for any period of five consecutive Business Days, provided, further, that, upon a Permitted Acquisition, the maximum amount specified in this clause (B) shall be increased to an amount reasonably determined by the Borrower (subject to the consent of the Administrative Agent (not to be unreasonably withheld)) to reflect any increase in the aggregate amount of Cage Cash of the Borrower and the Restricted Subsidiaries desirable in the ordinary course of business in connection with such Permitted Acquisition;

 

(b)           loans or advances to officers, directors, board managers and employees of the Borrower and the Restricted Subsidiaries (i) for reasonable and customary business-related travel, entertainment, relocation and analogous ordinary business purposes so long as made in accordance with applicable law, and (ii) in connection with such Person’s purchase of Equity Interests of Holdco (provided that the amount of such loans and advances described in this clause (b) (ii) shall be contributed to the Borrower in cash as common equity); provided the aggregate principal amount of all loans and advances made in reliance on this clause (b) shall not exceed $1,000,000 at any time outstanding;

 

(c)           Investments by the Borrower or any Restricted Subsidiary in the Borrower or any Restricted Subsidiary;

 

(d)           Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors and other credits to suppliers in the ordinary course of business;

 

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(e)           Investments consisting of Liens, Indebtedness, fundamental changes, Dispositions and Restricted Payments permitted under Sections 7.01, 7.03, 7.04, 7.05 and 7.06, respectively;

 

(f)            Investments existing on the Closing Date and set forth on Schedule 7.02(f) by the Borrower or any Restricted Subsidiary in the Borrower or any other Restricted Subsidiary; provided that the amount of the original Investment is not increased except by the terms of such Investment or as otherwise permitted by this Section 7.02;

 

(g)           Investments in Swap Contracts permitted under Section 7.03;

 

(h)           promissory notes and other noncash consideration received in connection with Dispositions permitted by Section 7.05;

 

(i)            the purchase or other acquisition after the Closing Date of property and assets or businesses of any Person or of assets constituting a business unit, a line of business or division of such Person, or Equity Interests in a Person that, upon the consummation thereof, will be a Subsidiary of the Borrower (including as a result of a merger or consolidation); provided that, with respect to each purchase or other acquisition made pursuant to this Section 7.02(i) (each, a “Permitted Acquisition”):

 

(A)          with respect to any Permitted Acquisition having Aggregate Consideration equal to or greater than $10,000,000, the Borrower shall (1) deliver to the Administrative Agent, on behalf of the Lenders, no later than ten (10) Business Days (or such later date as determined by the Administrative Agent in its reasonable discretion) prior to the date on which any such purchase or other acquisition is consummated, written notice thereof, (2) use reasonable best efforts to deliver to the Administrative Agent promptly, but in no event later than the consummation of such purchase or acquisition, copies of the applicable purchase agreement and all other material transaction documents and other information in connection therewith reasonably requested by the Administrative Agent and (3) deliver to the Administrative Agent, no later than five (5) Business Days (or such later date as determined by the Administrative Agent in its reasonable discretion) prior to the date on which any such purchase or acquisition is consummated, a certificate of Responsible Officer, in form and substance reasonably satisfactory to the Administrative Agent, specifying whether any newly created or acquired Subsidiary will result therefrom and whether such Subsidiary will constitute a Restricted Subsidiary or Unrestricted Subsidiary;

 

(B)           the Aggregate Consideration paid in respect of such Permitted Acquisition, together with the Aggregate Consideration paid in respect of all other Permitted Acquisitions since the Closing Date (excluding the GVR Acquisition and further excluding, in each case, amounts funded using the proceeds of Revolving Credit Loans or Swing Line Loans), shall not exceed the sum of (1) the Net Cash Proceeds of Permitted Equity Issuances (other than Permitted Equity Issuances made pursuant to Section 8.05) received after the Closing Date that are 

 

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Not Otherwise Applied plus (2) Cumulative Excess Cash Flow to the extent Not Otherwise Applied;

 

(C)           the acquired property, assets, business or Person is in the same line of business as the Borrower or a Restricted Subsidiary;

 

(D)          if all or any portion of such purchase or acquisition is funded by the proceeds of Revolving Credit Loans or Swing Line Loans, each Hotel/Casino Facility subject to such purchase or acquisition is located in the Las Vegas Locals Market;

 

(E)           (i) all property and assets acquired by the Borrower or any Restricted Subsidiary in such purchase or other acquisition shall constitute Collateral (unless the same constitute Excluded Assets) in accordance with Section 6.11 and (ii) each Subsidiary created or acquired in connection with such Permitted Acquisition that will constitute a Restricted Subsidiary shall become a Guarantor and cause all of its respective property and assets to become Collateral (unless the same constitute Excluded Assets) in accordance with Section 6.11;

 

(F)           if any portion of the Aggregate Consideration for such Permitted Acquisition is funded using the proceeds of Revolving Credit Loans or Swing Line Loans (other than Revolving Credit Loans or Swing Line Loans drawn using Availability created by repayments of Revolving Credit Loans and Swing Line Loans using proceeds of Cumulative Excess Cash Flow that is Not Otherwise Applied), the aggregate outstanding principal amount of Indebtedness assumed or incurred by the Borrower and its Subsidiaries (other than pursuant to the Revolving Credit Facility) in connection with such Permitted Acquisition shall not be greater than 4.0 times the Aggregate Consideration (exclusive of any such assumed or incurred Indebtedness) paid in respect of such Permitted Acquisition;

 

(G)           if (i) any Subsidiary created or acquired in connection with such Permitted Acquisition shall constitute an Unrestricted Subsidiary and (ii) any portion of the Aggregate Consideration for such Permitted Acquisition is funded using the proceeds of Revolving Credit Loans or Swing Line Loans (other than Revolving Credit Loans or Swing Line Loans drawn using Availability created by repayments of Revolving Credit Loans and Swing Line Loans using proceeds of Cumulative Excess Cash Flow that is Not Otherwise Applied), the principal balance of the Revolving Credit Loans and Swing Line Loans so applied shall not, in the aggregate, exceed the sum of (x) the portion of such Aggregate Consideration funded using Cumulative Excess Cash Flow that is Not Otherwise Applied and (y) the portion of such Aggregate Consideration funded using Net Cash Proceeds of Permitted Equity Issuances (other than Permitted Equity Issuances made pursuant to Section 8.05); provided, that any such Permitted Equity Issuances shall be funded to Holdco, by Holdco to the Borrower and by the Borrower to the applicable Unrestricted Subsidiary;

 

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(H)          (1) immediately before and immediately after giving Pro Forma Effect to any such purchase or other acquisition, no Default shall have occurred and be continuing and (2) immediately after giving effect to such purchase or other acquisition (including any Indebtedness incurred in connection therewith), (i) the Borrower and the Restricted Subsidiaries shall be in Pro Forma Compliance with all of the covenants set forth in Section 7.11 and (ii) the Total Leverage Ratio (as determined on a Pro Forma Basis after giving effect to such purchase or other acquisition) shall be less than or equal to the Total Leverage Ratio (as determined immediately prior to such purchase or acquisition), with such compliance with preceding clauses (i) and (ii) to be determined on the basis of the financial information most recently delivered to the Administrative Agent and the Lenders pursuant to Section 6.01(a) or (b) as though (where applicable) such purchase or other acquisition had been consummated as of the first day of the fiscal period covered thereby and evidenced by a certificate from the principal accounting officer of the Borrower demonstrating such compliance calculation in reasonable detail;

 

(I)            the Borrower shall have delivered to the Administrative Agent, on behalf of the Lenders, no later than five (5) Business Days prior to the date on which any such purchase or other acquisition is consummated, a certificate of a Responsible Officer, in form and substance reasonably satisfactory to the Administrative Agent, certifying that all of the requirements set forth in this clause (i) have been satisfied or will be satisfied on or prior to the consummation of such purchase or other acquisition; and

 

(J)            after giving effect to such purchase or acquisition and any incurrence of Indebtedness in connection therewith, Liquidity shall not be less than $40,000,000;

 

(j)            the Restructuring Transactions (including, without limitation, the OpCo Acquisition);

 

(k)           Investments in the ordinary course of business consisting of Article 3 of the Uniform Commercial Code endorsements for collection or deposit and Article 4 of the Uniform Commercial Code customary trade arrangements with customers consistent with past practices;

 

(l)            Investments (including debt obligations and Equity Interests) received in connection with the bankruptcy or reorganization of suppliers and customers or in settlement of delinquent obligations of, or other disputes with, customers and suppliers arising in the ordinary course of business or upon the foreclosure with respect to any secured Investment or other transfer of title with respect to any secured Investment;

 

(m)          loans and advances to the Holding Companies (or any direct or indirect parent thereof) in lieu of, and not in excess of the amount of (after giving effect to any other loans, advances or Restricted Payments in respect thereof), Restricted Payments to the extent

 

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permitted to be made to the Holding Companies (or such parent) in accordance with Section 7.06(f) and (g);

 

(n)           so long as immediately after giving effect to any such Investment, no Default has occurred and is continuing and the Borrower and the Restricted Subsidiaries will be in Pro Forma Compliance with the covenants set forth in Section 7.11, Investments in an aggregate amount from and after the Closing Date not to exceed the sum of (A) the aggregate amount of the Net Cash Proceeds of Permitted Equity Issuances (other than Permitted Equity Issuances made pursuant to Section 8.05) received after the Closing Date that are Not Otherwise Applied, plus (B) the amount of Cumulative Excess Cash Flow that is Not Otherwise Applied plus (C) an amount equal to $50,000,000;

 

(o)           advances of payroll payments to employees of the Borrower and the Restricted Subsidiaries in the ordinary course of business;

 

(p)           [reserved];

 

(q)           Investments of a Restricted Subsidiary acquired after the Closing Date or of a Person merged into the Borrower or merged or consolidated with a Restricted Subsidiary in accordance with Section 7.04 after the Closing Date to the extent that such Investments were not made in contemplation of or in connection with such acquisition, merger or consolidation and were in existence on the date of such acquisition, merger or consolidation;

 

(r)            [reserved];

 

(s)           Investments in LandCo Holdings and LandCo (including, without limitation, (i) pursuant to the LandCo Support Agreement or (ii) to be applied by LandCo Holdings to pay corporate overhead expenses, franchise taxes and other fees, taxes and expenses required to maintain its limited liability company existence);

 

(t)            Investments in OpCo Holdings made using the proceeds of any capital contribution to, or any sale or issuance of its Equity Interests by, the Borrower or Holdco, in an amount not in excess of the Applicable Clawback Amount with respect thereto;

 

(u)           (i) the GVR Acquisition and (ii) [* * *] or

 

(v)           Investments in Unrestricted Subsidiaries made using the proceeds of Cure Note Indebtedness to the extent applied to cure or prevent a Specified Event (as defined in the Equityholders Agreement);

 

provided, that any Investment (or series of related Investments) in one or more entities that are not Restricted Subsidiaries in excess of $1,000,000 (including, for the avoidance of doubt, any Investment resulting from the designation of a Restricted Subsidiary as an Unrestricted Subsidiary but excluding Investments pursuant to Section 7.02(s) through (v)) shall not be permitted pursuant to this Section 7.02, unless the Borrower has provided the Administrative Agent with a certificate of a Responsible Officer of the Borrower certifying that any cash used to

 

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make such Investment (or series of related Investments, in which case the Borrower will provide such certificate only upon the first Investment in such series) shall be used for a current Bona Fide Business Purpose other than “cash hoarding” (as determined by the Administrative Agent in its reasonable discretion).

 

SECTION 7.03.  Indebtedness.  Create, incur, assume or suffer to exist any Indebtedness, except:

 

(a)           Indebtedness of the Loan Parties under the Loan Documents;

 

(b)           Indebtedness outstanding on the Closing Date and listed on Schedule 7.03(b) and any Permitted Refinancing thereof;

 

(c)           Guarantees by the Borrower and the Restricted Subsidiaries in respect of Indebtedness of the Borrower or any Restricted Subsidiary otherwise permitted hereunder; provided that if the Indebtedness being Guaranteed is subordinated to the Obligations in Lien priority and/or right of payment, such Guarantee shall be subordinated to the Guarantee of the Obligations in Lien priority and/or right of payment, as the case may be, on terms at least as favorable to the Lenders as those contained in the subordination of such Indebtedness and/or Lien securing the same;

 

(d)           Indebtedness of the Borrower or any Restricted Subsidiary owing to the Borrower or any other Restricted Subsidiary to the extent constituting an Investment expressly permitted by Section 7.02; provided that all such Indebtedness shall be evidenced by an Intercompany Note pledged to the Administrative Agent for the benefit of the Secured Parties in accordance with the Collateral Documents and Section 6.11;

 

(e)           (i) so long as immediately after giving effect to the incurrence of any such Indebtedness, no Event of Default has occurred and is continuing and the Borrower and the Restricted Subsidiaries will be in Pro Forma Compliance with the covenants set forth in Section 7.11, Capitalized Lease Indebtedness and other Indebtedness (including Capitalized Leases) financing the acquisition, construction, repair, replacement or improvement of fixed or capital assets; provided that such Indebtedness is incurred concurrently with or within two hundred seventy (270) days after the applicable acquisition, construction, repair, replacement or improvement, and (ii) any Permitted Refinancing of any Indebtedness set forth in the immediately preceding clause (i); provided,  further, that the aggregate principal amount of all Indebtedness permitted under this Section 7.03(e) (including all Permitted Refinancing Indebtedness described in preceding clause (ii)), shall not exceed $25,000,000 at any time outstanding;

 

(f)            Indebtedness in respect of Swap Contracts designed to hedge against interest rates, foreign exchange rates or commodities pricing risks of the Borrower or its Restricted Subsidiaries incurred in the ordinary course of business and not for speculative purposes, including, without limitation, all Swap Contracts required pursuant to Section 6.17;

 

(g)           Indebtedness representing deferred compensation to employees of the Borrower and the Restricted Subsidiaries incurred in the ordinary course of business;

 

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(h)           Indebtedness consisting of promissory notes issued by the Borrower to current or former officers, directors, managers and employees, their respective estates, spouses or former spouses to finance the purchase or redemption of Equity Interests of Holdco or the Borrower permitted by Section 7.06(e); provided that (i) such Indebtedness shall be subordinated in right of payment to the Obligations on terms reasonably satisfactory to the Administrative Agent (it being understood that, subject to the dollar limitation described below, such subordination provisions shall permit the payment of interest and principal in cash if no Event of Default has occurred and is continuing) and (ii) the aggregate amount of all cash payments (whether principal or interest) made by the Borrower in respect of such notes since the Closing Date, when combined with the aggregate amount of Restricted Payments made pursuant to Section 7.06(e) since the Closing Date, shall not exceed $1,000,000;

 

(i)            Indebtedness incurred by the Borrower or the Restricted Subsidiaries in (i) a Permitted Acquisition, (ii) any other Investment expressly permitted hereunder or (iii) any Disposition, in the case of each of the foregoing clauses (i), (ii) and (iii), constituting customary indemnification obligations or customary obligations in respect of purchase price or other similar adjustments;

 

(j)            Indebtedness consisting of obligations of the Borrower or the Restricted Subsidiaries under deferred compensation or other similar arrangements incurred by such Person in connection with Permitted Acquisitions or any other Investment expressly permitted hereunder;

 

(k)           Cash Management Obligations and other Indebtedness in respect of netting services, overdraft protections and similar arrangements, in each case, in connection with deposit accounts and obligations under the WF Indemnification Agreement;

 

(l)            Indebtedness consisting of (i) the financing of insurance premiums or (ii) take-or-pay obligations contained in supply arrangements, in each case, in the ordinary course of business;

 

(m)          Indebtedness incurred by the Borrower or any of the Restricted Subsidiaries in respect of letters of credit, bank guarantees, bankers’ acceptances or similar instruments issued or created in the ordinary course of business in respect of workers compensation claims, health, disability or other employee benefits or property, casualty or liability insurance or self-insurance or other Indebtedness with respect to reimbursement-type obligations regarding workers compensation claims; provided that any reimbursement obligations in respect thereof are reimbursed within 30 days following the incurrence thereof;

 

(n)           obligations in respect of performance, bid, appeal and surety bonds and performance and completion guarantees and similar obligations provided by the Borrower or any of the Restricted Subsidiaries or obligations in respect of letters of credit, bank guarantees or similar instruments related thereto, in each case in the ordinary course of business or consistent with past practice;

 

(o)           additional Indebtedness of the Borrower and its Restricted Subsidiaries in an aggregate principal amount not to exceed $50,000,000 at any time outstanding;

 

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(p)           all premiums (if any), interest (including post-petition interest), fees, expenses, charges and additional or contingent interest (other than pay-in-kind interest or other interest capitalized as principal) on obligations described in clauses (a) through (o) above;

 

(q)           [reserved];

 

(r)            Indebtedness of the Borrower under the LandCo Support Agreement;

 

(s)           unsecured Indebtedness of Holdco issued to any BlockerCo and/or a holder (a “BlockerCo Equityholder”) of Equity Interests in any BlockerCo solely in connection with (x) the redemption of Equity Interests in such BlockerCo held by such BlockerCo Equityholder and (y) the related redemption of Equity Interests in Holdco by such BlockerCo, in each case due to such BlockerCo Equityholder’s breach of a tax representation or a finding of unsuitability with respect to such BlockerCo Equityholder; provided, that (i) such Indebtedness does not mature, and is not mandatorily redeemable, in whole or in part, or required to be repurchased or reacquired, in whole or in part, prior to the date that that is ninety-one (91) days after the eight anniversary of the Closing Date, (ii) no interest thereon shall be payable in cash prior to the maturity thereof, (iii) such Indebtedness shall have no financial maintenance covenants and no covenants that apply to the Borrower or any Subsidiary thereof or that impose limitations on Holdco’s ability to guarantee or pledge assets to secure the Obligations, (iv) are not guaranteed by any other Loan Party or any Subsidiary thereof and (v) are not convertible or exchangeable except into common equity of Holdco or such BlockerCo.;

 

(t)            unsecured non-interest-bearing Indebtedness of Holdco (such Indebtedness, “Holdco Convertible Indebtedness”) owing to a participant in the Propco Rights Offering (as defined in the Plan of Reorganization) maturing no later than 180 days following the Closing Date in an outstanding principal amount equal to such participant’s required contribution amount with respect to the Propco Rights Offering;

 

(u)           unsecured Indebtedness of Holdco owing to any holder of Equity Interests of Holdco and issued pursuant to Section 7.19 of the Equityholders Agreement (such Indebtedness, the “Cure Note Indebtedness”); and

 

(v)           Exchange Securities and any Permitted Refinancing thereof.

 

SECTION 7.04.  Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that:

 

(a)           any Restricted Subsidiary may merge with (i) the Borrower; provided that (x) the Borrower shall be the continuing or surviving Person and (y) such merger does not result in the Borrower ceasing to be incorporated under the Laws of the United States, any state thereof or the District of Columbia, or (ii) any one or more other Restricted Subsidiaries;

 

(b)           any Restricted Subsidiary may liquidate or dissolve or change its legal form (provided that (A) such transaction shall not reduce the Borrower’s direct or indirect share of the aggregate ordinary voting power and aggregate equity value in such Restricted

 

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Subsidiary, (B) the Borrower or Restricted Subsidiary shall comply with its obligations under Sections 6.11 and 6.13 in connection with such transaction and (C) such transaction shall have been undertaken for a valid purpose (which includes the reduction of taxes for direct or indirect owners of Equity Interests in the Borrower) and shall not be disadvantageous to the Lenders in any manner);

 

(c)           any Restricted Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrower or to another Restricted Subsidiary;

 

(d)           so long as no Default exists or would result therefrom, any Restricted Subsidiary may merge with any other Person in order to effect an Investment permitted pursuant to Section 7.02; provided that the continuing or surviving Person shall be a Restricted Subsidiary, which together with each of its Restricted Subsidiaries, shall have complied with the requirements of Section 6.11;

 

(e)           the Borrower and the Restricted Subsidiaries may consummate the Restructuring Transactions; and

 

(f)            so long as no Default exists or would result therefrom, a merger, dissolution, liquidation, consolidation or Disposition, the purpose of which is to effect a Disposition permitted pursuant to Section 7.05;

 

provided that in the case of clauses (a), (b) and (c) above, (x) the security interest of the Administrative Agent in the property of such person formed by such merger or consolidation (or such Person resulting from such change in corporate form) shall be no less favorable than the security interest of the Administrative Agent in the property of the Borrower or Subsidiary prior to such merger or consolidation (or change in corporate form) and (y) except in the case of clause (a)(i) above, the Guarantee by such person formed by such merger or consolidation (or such Person resulting from such change in corporate form) of the Obligations shall be no less favorable to the Lenders than the Guarantees of the Obligations of the Subsidiary prior to such merger or consolidation (or change in corporate form), in each case, as reasonably determined by the Administrative Agent.

 

SECTION 7.05.  Dispositions.  Make any Disposition or enter into any agreement to make any Disposition, except:

 

(a)           Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business, and Dispositions of furniture, fixtures and equipment no longer used or useful in the ordinary course of business of the Loan Parties;

 

(b)           Dispositions of inventory (including Cage Cash) and assets of de minimis value, in any case in the ordinary course of business;

 

(c)           Dispositions of property (other than Real Property) in the ordinary course of business to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are promptly applied to the purchase price of similar replacement property;

 

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(d)           Dispositions of property to the Borrower or to a Restricted Subsidiary;

 

(e)           (i) Permitted Liens constituting Dispositions and (ii) Dispositions permitted by (x) Section 7.04 and (y) Section 7.06;

 

(f)            non-assignable, non-sublicensable licenses of information technology systems to the Manager pursuant to the Management Agreement or a license agreement executed in connection therewith;

 

(g)           Dispositions of Cash Equivalents in the ordinary course of business;

 

(h)            (i) in the case of the Mortgaged Properties, Real Property Leases permitted under Section 7.19 and (ii) with respect to all other properties and assets of the Loan Parties, leases, licenses, subleases or sublicenses granted to others in the ordinary course of business and which do not materially interfere with the business of the Borrower or the Restricted Subsidiaries;

 

(i)            transfers of property subject to Casualty Events upon receipt of the Net Cash Proceeds of such Casualty Event;

 

(j)            Dispositions of property not otherwise permitted under this Section 7.05; provided that (i) at the time of such Disposition (other than any such Disposition made pursuant to a legally binding commitment entered into at a time when no Default exists), no Default shall exist or would result from such Disposition, (ii) the aggregate Fair Market Value of all property Disposed of in reliance on this clause (j) shall not exceed $20,000,000 in the aggregate and (iii) with respect to any Disposition pursuant to this clause (j) for a purchase price in excess of $10,000,000, the Borrower or a Restricted Subsidiary shall receive not less than 75% of such consideration in the form of cash or Cash Equivalents at the time of the consummation of such Disposition (in each case, free and clear of all Liens at the time received, other than nonconsensual Permitted Liens and Liens permitted by Section 7.01(s) and clauses (i) and (ii) of Section 7.01(t)); provided, however, that for the purposes of this clause (iii), each of the following shall be deemed to be cash received at closing: (A) any liabilities (as shown on the Borrower’s or such Restricted Subsidiary’s most recent balance sheet provided hereunder or in the footnotes thereto) of the Borrower or such Restricted Subsidiary, other than liabilities that are by their terms subordinated to the payment in cash of the Obligations, that are assumed by the transferee with respect to the applicable Disposition and for which the Borrower and all of the Restricted Subsidiaries shall have been validly released by all applicable creditors in writing and (B) any securities received by the Borrower or such Restricted Subsidiary from such transferee that are converted by the Borrower or such Restricted Subsidiary into cash (to the extent of the cash received) within 180 days following the closing of the applicable Disposition;

 

(k)           [reserved];

 

(l)            [reserved];

 

(m)          Dispositions of Investments in joint ventures to the extent required by, or made pursuant to, customary buy/sell arrangements between the joint venture parties set forth in joint venture arrangements and similar binding arrangements;

 

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(n)           Dispositions or discounts without recourse of accounts receivable in connection with the compromise or collection thereof in the ordinary course of business (and not as part of any financing transaction); and

 

(o)           the Restructuring Transactions;

 

provided that (1) any Disposition of any property pursuant to this Section 7.05 (except pursuant to Sections 7.05(d) and (e)(ii)(y)), shall be for no less than the Fair Market Value of such property at the time of such Disposition and (2) in no case shall the Borrower or any Subsidiary be permitted to effect a Disposition of (A) any Equity Interest in Boulder LLC, Red Rock LLC, Palace LLC or Sunset LLC or a significant portion of their respective properties, (B) any Core Property, (C) any Equity Interest in OpCo Holdings, (D) any Equity Interest in GVR Holdco 3, (E) any Equity Interest in LandCo Holdings or (F) any Equity Interest in IP Holdco.  To the extent any Collateral is Disposed of as expressly permitted by this Section 7.05 to any Person other than the Borrower or any Restricted Subsidiary, such Collateral shall be sold free and clear of the Liens created by the Loan Documents, and the Administrative Agent shall be authorized to take any actions deemed appropriate in order to effect the foregoing.

 

SECTION 7.06.  Restricted Payments.  Declare or make or agree to declare or make, directly or indirectly, any Restricted Payment, or incur any obligations (contingent or otherwise) to do so, except:

 

(a)           each Restricted Subsidiary may make Restricted Payments (i) to the Borrower and to other Restricted Subsidiaries and (ii) in the case of a Restricted Payment by a non-wholly owned Restricted Subsidiary, to the Borrower and any other Restricted Subsidiary and to each other owner of Equity Interests of such Restricted Subsidiary based on their relative ownership interests of the relevant class of Equity Interests; provided that no Restricted Payment of the type described in preceding clause (ii) (other than tax distributions) shall be made at any time an Event of Default has occurred and is continuing;

 

(b)           the Holding Companies, the Borrower and each Restricted Subsidiary may declare and make dividend payments or other distributions payable solely in the Equity Interests (other than Disqualified Equity Interests not otherwise permitted by Section 7.03) of such Person; provided that to the extent required pursuant to the Collateral Documents, such Equity Interests shall be pledged to the Administrative Agent and, in the case of a Restricted Payment by a non-wholly owned Restricted Subsidiary, to the Borrower and any other Restricted Subsidiary and to each other owner of Equity Interests of such Restricted Subsidiary based on their relative ownership interests of the relevant class of Equity Interests;

 

(c)           [reserved];

 

(d)           to the extent constituting Restricted Payments, the Borrower and the Restricted Subsidiaries may enter into and consummate transactions expressly permitted by any provision of Section 7.04 or 7.08 other than Sections 7.08(a) and (d);

 

(e)           Holdco and the Borrower may make Restricted Payments to pay for the repurchase, retirement or other acquisition or retirement for value of Equity Interests of Holdco by any future, present or former employee, director or manager of the Borrower or any of its

 

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Restricted Subsidiaries (other than the Fertitta Brothers or any of their Related Persons) upon the death, disability or termination of employment of such persons or pursuant to any employee, director or manager equity plan, employee, director or manager stock option plan or any other employee, director or manager benefit plan or any agreement (including any stock subscription or shareholder agreement) with any employee, director or manager of the Borrower or any of its Restricted Subsidiaries (other than the Fertitta Brothers or any of their Related Persons) (and the Borrower may pay dividends or distributions to Holdco to fund such Restricted Payments); provided that the aggregate amount of Restricted Payments made by the Borrower pursuant to this clause (e) after the Closing Date, when combined with the aggregate amount of all cash payments (whether principal or interest) made by the Borrower in respect of any promissory notes pursuant to Section 7.03(h) after the Closing Date, shall not exceed $1,000,000;

 

(f)            the Borrower may make Restricted Payments to the Holding Companies:

 

(i)            the proceeds of which shall be used by a Holding Company to pay franchise taxes and other fees, taxes and expenses required to maintain its limited liability company existence; and

 

(ii)           of up to $2,500,000 per year (in the aggregate with any loans and advances made to the Holding Companies pursuant to Section 7.02(m) in reliance on this paragraph (f)), the proceeds of which shall be used by the Holding Companies to pay corporate overhead expenses;

 

(g)           the Borrower may make Restricted Payments to Holdco, the proceeds of which shall be distributed by Holdco to the Principal BlockerCos:

 

(i)            which distributions shall be used by the Principal BlockerCos to pay franchise taxes and other fees, taxes and expenses required to maintain its limited liability company existence; and

 

(ii)           of up to $250,000 during the first twelve months after the Closing Date and up to $100,000 during any twelve-month period thereafter (in the aggregate with any loans and advances made to the Holdco pursuant to Section 7.02(m) in reliance on this paragraph (g)), which distributions shall be used by the Principal BlockerCos to pay corporate overhead expenses;

 

(h)           Holdco may pay dividends or make distributions to its members with respect to the state and United States federal income tax liabilities of its members in respect of income earned by the Borrower and its Subsidiaries during any period in an aggregate amount not to exceed the payments received by Holdco from the Borrower pursuant to the Holding Company Tax Sharing Agreement with respect to such period; and

 

(i)            Holdco may make Tax Distribution True-Up Amount Payments to its members using the proceeds of (i) a Qualified IPO by Holdco or (ii) a distribution from the Borrower made using the proceeds of a Qualified IPO by the Borrower (and the Borrower shall be permitted to make any such distribution).

 

152

 

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SECTION 7.07.  Change in Nature of Business.  Engage in any material line of business substantially different from those lines of business conducted by the Borrower and the Restricted Subsidiaries on the date hereof or any business reasonably related or ancillary thereto.

 

SECTION 7.08.  Transactions with Affiliates.  Enter into any transaction (or series of related transactions) of any kind with any Affiliate of the Borrower or any of its Subsidiaries, whether or not in the ordinary course of business, other than (a) transactions among Borrower Parties or any entity that becomes a Borrower Party as a result of such transaction, (b) transactions entered into in the ordinary course of business involving consideration of less than $2,000,000 per fiscal year on terms substantially as favorable to such Loan Party as would be obtainable by such Loan Party at the time in a comparable arm’s-length transaction with a Person other than an Affiliate, (c) the payment of fees and expenses on the Closing Date related to the Restructuring Transactions, (d) loans and other transactions by the Borrower and the Restricted Subsidiaries to the extent expressly permitted under this Article 7, (e) employment and severance arrangements between the Borrower and its Restricted Subsidiaries and their respective officers and employees in the ordinary course of business, (f)(i) payments to the Borrower by Subsidiaries of the Borrower pursuant to the Subsidiary Tax Sharing Agreements, (ii) payments by the Borrower to an Unrestricted Subsidiary to reimburse such Unrestricted Subsidiary for excess payments made pursuant to a Subsidiary Tax Sharing Agreement and (iii) payments to Holdco by the Borrower pursuant to the Holding Company Tax Sharing Agreement, provided that the aggregate amount of payments by the Borrower pursuant to the Holding Company Tax Sharing Agreement in respect of Subsidiary Tax Distribution Shortfalls (as defined in the Holding Company Tax Sharing Agreement) shall not exceed the amount of Cumulative Excess Cash Flow that is Not Otherwise Applied, provided, further, that the Borrower shall not make any payment pursuant to the Holding Company Tax Sharing Agreement in respect of a Subsidiary Tax Distribution Shortfall if, after giving effect thereto, Liquidity shall be less than $20,000,000, (g) the payment of customary fees and reasonable out of pocket costs to, and indemnities provided on behalf of, directors, officers, board managers and employees of the Borrower and its Restricted Subsidiaries in the ordinary course of business to the extent attributable to the ownership or operation of the Borrower and its Restricted Subsidiaries, (h) transactions pursuant to permitted agreements in existence on the Closing Date and set forth on Schedule 7.08 or any amendment thereto to the extent such an amendment is not adverse to the Lenders in any material respect, (i) transactions pursuant to the Management Agreement, intellectual property licenses executed in connection therewith and, subject to the Management Subordination Agreement, payment of fees and expenses owing thereunder, (j) the Non-Compete Agreement, (k) dividends, redemptions and repurchases permitted under Section 7.06, (l) transactions pursuant to the Borrower/IP Holdco License Agreement, (m) payments to the Borrower by Subsidiaries of the Borrower pursuant to the Subsidiary Cost Allocation Agreements, (n) issuance of any Holdco Convertible Indebtedness or Cure Note Indebtedness or any transaction related thereto permitted pursuant to clause (iii) through (v) of Section 7.13(a), or (o) with the consent of the Administrative Agent, other transactions on terms substantially as favorable to such Loan Party as would be obtainable by such Loan Party at the time in a comparable arm’s-length transaction with a Person other than an Affiliate.

 

SECTION 7.09.  Burdensome Agreements.  Enter into or permit to exist any Contractual Obligation (other than this Agreement or any other Loan Document) that limits the ability of (a) any Restricted Subsidiary of the Borrower to pay dividends or other distributions

 

153

 

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with respect to any of its Equity Interests or to make or repay loans or advances to the Borrower or any other Restricted Subsidiary or to Guarantee Indebtedness of the Borrower or any other Restricted Subsidiary or (b) the Borrower or any Loan Party to create, incur, assume or suffer to exist Liens on property of such Person for the benefit of the Secured Parties with respect to the Facilities and the Obligations or under the Loan Documents; provided that the foregoing clauses (a) and (b) shall not apply to Contractual Obligations which (i) (x) exist on the Closing Date and (to the extent not otherwise permitted by this Section 7.09) are listed on Schedule 7.09 and (y) to the extent Contractual Obligations permitted by clause (x) are set forth in an agreement evidencing Indebtedness, are set forth in any agreement evidencing any permitted renewal, extension or refinancing of such Indebtedness so long as such renewal, extension or refinancing does not, in the reasonable opinion of the Administrative Agent, expand the scope of such limits in such Contractual Obligation, (ii) are binding on a Restricted Subsidiary at the time such Restricted Subsidiary first becomes a Restricted Subsidiary of the Borrower, so long as such Contractual Obligations were not entered into in contemplation of such Person becoming a Restricted Subsidiary of the Borrower; provided, further, that this clause (ii) shall not apply to Contractual Obligations that are binding on a Person that becomes a Restricted Subsidiary pursuant to Section 6.14, (iii) arise in connection with any Disposition permitted by Section 7.05, so long as such restrictions relate solely to the assets subject thereto, (iv) subject to Section 6.13, are customary provisions in joint venture agreements and other similar agreements applicable to joint ventures permitted under Section 7.02 and applicable solely to such joint venture entered into in the ordinary course of business, (v) are negative pledges and restrictions on Liens in favor of any holder of Indebtedness permitted under Section 7.03 but solely to the extent any negative pledge relates to the property financed by or the subject of such Indebtedness, (vi) are customary restrictions on leases, subleases, licenses or asset sale agreements otherwise permitted hereby so long as such restrictions solely relate to the assets subject thereto, (vii) comprise restrictions imposed by any agreement relating to secured Indebtedness permitted pursuant to Section 7.03(e) to the extent that such restrictions apply only to the property or assets securing such Indebtedness, (viii) are customary provisions restricting subletting or assignment of any lease governing a leasehold interest of the Borrower or any Restricted Subsidiary, (ix) subject to Section 6.13, are customary provisions restricting assignment of any agreement entered into in the ordinary course of business, or (x) are restrictions on cash or other deposits imposed by customers under contracts entered into in the ordinary course of business.

 

SECTION 7.10.  Use of Proceeds.  Use the proceeds of any Credit Extension, whether directly or indirectly, in a manner inconsistent with the uses described in Section 5.25.

 

154

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

SECTION 7.11.  Financial Covenants.

 

(a)           Total Leverage Ratio.  Permit the Total Leverage Ratio as of the last day of any Test Period (beginning with the Test Period ending on December 31, 2012) to be greater than the ratio set forth below opposite the last day of such Test Period (it being understood that bracketed numbers below for periods prior to the Test Period ending on December 30, 2012 are solely for purposes of computing Pro Forma Compliance in accordance with the definition of such term):

 

	
Fiscal Year
    	
 
    	
March 31
    	
 
    	
June 30
    	
 
    	
September 30
    	
 
    	
December 31
    
	
2011
    	
 
    	
—
    	
 
    	
—
    	
 
    	
[11.75x]
    	
 
    	
[11.75x]
    
	
2012
    	
 
    	
[11.75x]
    	
 
    	
[11.50x]
    	
 
    	
[11.50x]
    	
 
    	
11.25x
    
	
2013
    	
 
    	
10.75x
    	
 
    	
10.50x
    	
 
    	
10.25x
    	
 
    	
10.00
    
	
2014
    	
 
    	
9.75x
    	
 
    	
9.50x
    	
 
    	
9.25x
    	
 
    	
9.00x
    
	
2015
    	
 
    	
8.75x
    	
 
    	
8.50x
    	
 
    	
8.25x
    	
 
    	
8.25x
    
	
2016
    	
 
    	
8.00x
    	
 
    	
7.75x
    	
 
    	
7.50x
    	
 
    	
7.50x
    
	
2017
    	
 
    	
7.25x
    	
 
    	
7.00x
    	
 
    	
6.75x
    	
 
    	
6.75x
    
	
2018
    	
 
    	
6.75x
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    

 

(b)         Interest Coverage Ratio.  Permit the Interest Coverage Ratio for any Test Period (beginning with the Test Period ending on December 31, 2012) to be less than the ratio set forth below opposite the last day of such Test Period (it being understood that bracketed numbers below for periods prior to the Test Period ending on December 30, 2012 are solely for purposes of computing Pro Forma Compliance in accordance with the definition of such term):

 

	
Fiscal Year
    	
 
    	
March 31
    	
 
    	
June 30
    	
 
    	
September 30
    	
 
    	
December 31
    
	
2011
    	
 
    	
—
    	
 
    	
—
    	
 
    	
[2.25x]
    	
 
    	
[2.00x]
    
	
2012
    	
 
    	
[2.00x]
    	
 
    	
[2.00x]
    	
 
    	
[2.00x]
    	
 
    	
2.00x
    
	
2013
    	
 
    	
2.00x
    	
 
    	
2.00x
    	
 
    	
2.00x
    	
 
    	
2.00x
    
	
2014
    	
 
    	
2.00x
    	
 
    	
2.00x
    	
 
    	
2.00x
    	
 
    	
2.00x
    
	
2015
    	
 
    	
1.75x
    	
 
    	
1.75x
    	
 
    	
1.75x
    	
 
    	
1.75x
    
	
2016
    	
 
    	
2.00x
    	
 
    	
2.00x
    	
 
    	
1.75x
    	
 
    	
1.75x
    
	
2017
    	
 
    	
1.75x
    	
 
    	
1.75x
    	
 
    	
1.50x
    	
 
    	
1.50x
    
	
2018
    	
 
    	
1.50x
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    

 

SECTION 7.12.  Accounting Changes.  Make any change in fiscal year; provided, however, that the Borrower may elect (by providing 30 days’ prior written notice to the Administrative Agent) to change its fiscal year end to any other date reasonably acceptable to the

 

155

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Administrative Agent; provided, further, that no such election shall become effective until the Borrower and the Administrative Agent shall have entered into such amendments to this Agreement and the other Loan Documents as may be required, in the judgment of the Administrative Agent (but without prejudice to its rights under Article VIII), to preserve the intended benefits of the baskets, restrictions, reporting requirements and other provisions of this Agreement and the other Loan Documents that tie to the fiscal year of the Borrower (with the Required Lenders hereby authorizing the Administrative Agent to execute and deliver such amendments on their behalf).

 

SECTION 7.13.  Prepayments, etc. of Indebtedness; Material Contracts.  (a) Prepay, redeem, purchase, defease (including substance or legal defeasance), set apart assets for a sinking fund or similar fund or otherwise satisfy prior to the scheduled maturity thereof in any manner (including, without limitation, any principal payments, it being understood that payments of regularly scheduled interest shall be permitted) any Indebtedness that is required to be subordinated (in “right of payment” or on a “lien priority” basis) to the Obligations pursuant to the terms of the Loan Documents or any other Indebtedness in excess of the Threshold Amount except (i) the refinancing thereof with the Net Cash Proceeds of any Indebtedness (to the extent such Indebtedness constitutes a Permitted Refinancing), to the extent not required to prepay any Loans pursuant to Section 2.05(b) and (ii) the prepayment of Indebtedness of the Borrower or any Restricted Subsidiary to the Borrower or any Restricted Subsidiary, (iii) any conversion of any Holdco Convertible Indebtedness into Equity Interests of Holdco or any BlockerCo, (iv) any prepayment, repayment, redemption, purchase or other satisfaction of any Holdco Convertible Indebtedness using the proceeds of any Permitted Holdco Convertible Indebtedness Equity Issuance, and (v) any repayment of any Cure Note Indebtedness.

 

(b)           Prepay, redeem, purchase, defease (including substance or legal defeasance), set apart assets for a sinking fund or similar fund or otherwise satisfy prior to the scheduled maturity thereof in any manner (including, without limitation, any principal payments, it being understood that payments of regularly scheduled interest shall be permitted) any Exchange Securities at any time any Term Loans shall remain outstanding, except the refinancing thereof with the Net Cash Proceeds of any Indebtedness (to the extent such Indebtedness constitutes a Permitted Refinancing), to the extent not required to prepay any Loans pursuant to Section 2.05(b).

 

(c)           Amend, modify, waive or change the LandCo Support Agreement in any manner materially adverse to the interests of the Lenders.

 

(d)           Subject to the Bankruptcy Code and the Lenders’ rights thereunder, amend, modify or supplement (or permit the amendment, modification or supplement of) the Plan of Reorganization or the Confirmation Order in any manner adverse to the interests of the Lenders without the consent of the Required Lenders.

 

(e)           (i) Amend, modify, waive or change any provision of the Holding Company Tax Sharing Agreement or any Subsidiary Tax Sharing Agreement in any manner that is adverse to the interests of the Borrower, the Restricted Subsidiaries or the Lenders in any material respect without the prior written consent of the Administrative Agent or (ii) enter into any new Subsidiary Tax Sharing Agreement or similar agreement without the prior written

 

156

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

consent of the Administrative Agent except, in the case of the foregoing clause (ii), a Subsidiary Tax Sharing Agreement on terms substantially identical to the OpCo Tax Sharing Agreement with an Unrestricted Subsidiary that is a wholly-owned Subsidiary of the Borrower and disregarded for tax purposes.

 

(f)            Without the consent of the Administrative Agent, enter into any contractual arrangement that includes a “key-man” or “change of control” provision (or comparable provision) other than any “change of control” provision (or similar provision) included in (i) the agreements evidencing the Exchange Securities or (ii) any agreement governing Indebtedness or certificate of designation governing preferred Equity Interests that are, in the case of the foregoing clause (ii), permitted by this Agreement and held by Persons not constituting Affiliates of any Loan Party or any Subsidiary thereof.

 

(g)           (i) Amend, modify, waive or change any provision of any Transition Services Agreement in any manner that is adverse to the interests of the Borrower, the Restricted Subsidiaries or the Lenders in any material respect without the prior written consent of the Administrative Agent or (ii) enter into any new Transition Services Agreement or similar agreement without the prior written consent of the Administrative Agent except, in the case of the foregoing clause (ii), a Transition Services Agreement on terms substantially identical to the GVR Transition Services Agreement with an Unrestricted Subsidiary that is a wholly-owned Subsidiary of the Borrower.

 

(h)           (i) Amend, modify, waive or change any provision of any Subsidiary Cost Allocation Agreement in any manner that is adverse to the interests of the Borrower, the Restricted Subsidiaries or the Lenders in any material respect without the prior written consent of the Administrative Agent or (ii) enter into any new Subsidiary Cost Allocation Agreement or similar agreement without the prior written consent of the Administrative Agent except, in the case of the foregoing clause (ii), a Subsidiary Cost Allocation Agreement on terms substantially identical to the OpCo Cost Allocation Agreement with an Unrestricted Subsidiary that is a wholly-owned Subsidiary of the Borrower.

 

(i)            Agree to (or vote in favor of) amending, modifying, changing or waiving in any manner that is materially adverse to the interests of the Lenders any term or condition of any Material Contract of any Loan Party (other than a Material Contract referred to in clause (i) of the definition thereof); it being acknowledged and agreed by the parties hereto that any amendment or other modification which would have the effect of (i) reducing any fees payable to the Borrower or any Restricted Subsidiary under any such Material Contract, (ii) increasing any fees payable by the Borrower or any Restricted Subsidiary under any such Material Contract, (iii) shortening the term of any such Material Contract or (iv) allowing fees or other amounts payable to the Borrower or any Restricted Subsidiary under any such Material Contract to be paid to Persons other than the Borrower or such Restricted Subsidiary shall, in each case, be deemed to be materially adverse to the interests of the Lenders.

 

(j)            Amend, modify, waive or change any provision of the WF Indemnification Agreement in any manner that is adverse to the interests of the Borrower, the Restricted Subsidiaries or the Lenders in any material respect without the prior written consent of the Administrative Agent

 

157

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

SECTION 7.14.  Equity Interests of the Borrower and Restricted Subsidiaries.  Permit any Restricted Subsidiary to be (or become) a non-wholly owned Subsidiary, except as a result of or in connection with a dissolution, merger, consolidation or Disposition of a Restricted Subsidiary permitted by Section 7.04 or 7.05.

 

SECTION 7.15.  The Holding Companies.  Permit any of the Holding Companies to (a) conduct, transact or otherwise engage in any business or operations other than those incidental to (i) its ownership of the Equity Interests of the Borrower, (ii) the maintenance of its legal existence, (iii) the performance of the Loan Documents and the Restructuring Documents, (iv) any public offering of its common stock or any other issuance of its Equity Interests not prohibited by this Article 7 and (v) any transaction that such Holding Company is expressly permitted to enter into or consummate under this Article 7 or (b) own, hold or maintain any material assets (including Equity Interests in Subsidiaries) other than (i) the Equity Interests of the Borrower and (ii) cash and Cash Equivalents.

 

SECTION 7.16.  Capital Expenditures.  (a) Make any Capital Expenditure, except for Capital Expenditures not exceeding, in the aggregate for the Borrower and the Restricted Subsidiaries in any fiscal year of the Borrower, the thresholds set forth in the table below opposite such fiscal year:

 

	
Fiscal Year
    	
 
    	
Capital
   Expenditures
   Threshold
    	
 
    
	
2011
    	
 
    	
$
    	
35,000,000
    	
 
    
	
2012
    	
 
    	
$
    	
70,000,000
    	
 
    
	
2013
    	
 
    	
$
    	
70,000,000
    	
 
    
	
2014
    	
 
    	
$
    	
70,000,000
    	
 
    
	
2015
    	
 
    	
$
    	
70,000,000
    	
 
    
	
2016
    	
 
    	
$
    	
70,000,000
    	
 
    
	
2017
    	
 
    	
$
    	
70,000,000
    	
 
    
	
2018
    	
 
    	
$
    	
70,000,000
    	
 
    

 

(b)           Notwithstanding anything to the contrary contained in clause (a) above, to the extent that the aggregate amount of Capital Expenditures made by the Borrower and the Restricted Subsidiaries in any fiscal year pursuant to Section 7.16(a) is less than the maximum amount of Capital Expenditures permitted by Section 7.16(a) with respect to such fiscal year (before giving effect to any increase in such amount pursuant to this clause (b)), the amount of such difference (the “Rollover Amount”) may be carried forward one time and used to make

 

158

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Capital Expenditures in the next succeeding fiscal year; provided that Capital Expenditures in any fiscal year shall be counted against the base amount set forth in Section 7.16(a) with respect to such fiscal year after being counted against any Rollover Amount available with respect to such fiscal year.

 

(c)           Notwithstanding anything to the contrary contained in clauses (a) and (b) above, the Borrower and its Restricted Subsidiaries may make additional Capital Expenditures in an aggregate amount equal to the sum of (i) the aggregate amount of the Net Cash Proceeds of Permitted Equity Issuances (other than Permitted Equity Issuances made pursuant to Section 8.05) received after the Closing Date that are Not Otherwise Applied and (ii) the amount of Cumulative Excess Cash Flow that is Not Otherwise Applied.

 

SECTION 7.17.  Sale-Leaseback Transactions.  Enter into any arrangement, directly or indirectly, with any Person whereby it shall sell or transfer any property, real or personal or mixed, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property which it intends to use for substantially the same purpose or purposes as the property being sold or transferred except to the extent that (i) the sale of such property is permitted by Section 7.05 and (ii) any Capitalized Leases or Liens arising in connection therewith are permitted by Sections 7.03 and 7.01, respectively.

 

SECTION 7.18.  Unrestricted Subsidiary Covenants.

 

(a)           OpCo Holdings.  Permit (i) OpCo Holdings to (a) conduct, transact or otherwise engage in any business or operations other than those incidental to (1) its ownership of the Equity Interests of OpCo, (b) the maintenance of its legal existence and (3) the performance of the OpCo Loan Documents, or (b) fail to own 100% of the Equity Interests of OpCo (other than as a result of any foreclosure under the OpCo Loan Documents or pursuant to the following clause (ii)) or (ii) permit OpCo Holdings or Opco to sell all or substantially all of its assets except in a bona fide cash sale on arms’-length terms to a Person not an Affiliate.

 

(b)           GVR Holding Companies.  (i) Permit GVR Holdco 3 to (A) to conduct, transact or otherwise engage in any business or operations other than those incidental to (1) its ownership of the Equity Interests of GVR Holdco 2 and (2) the maintenance of its legal existence or (B) fail to own, directly or indirectly, at least 77.5% of the Equity Interests of GVR (other than as a result of any foreclosure under the GVR Loan Documents or pursuant to the following clause (iv)), (ii) permit GVR Holdco 2 to (A) to conduct, transact or otherwise engage in any business or operations other than those incidental to (1) its ownership of the Equity Interests of GVR Holdco 1 and (2) the maintenance of its legal existence, (iii) permit GVR Holdco 1 to (A) to conduct, transact or otherwise engage in any business or operations other than those incidental to (1) its ownership of the Equity Interests of GVR, (2) the maintenance of its legal existence and (3) the performance of the GVR Loan Documents or (iv) permit any GVR Holding Company or GVR to sell all or substantially all of its assets except in a bona fide cash sale on arms’-length terms to a Person not an Affiliate.

 

159

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(c)           Unrestricted Subsidiaries.  Permit any Unrestricted Subsidiary to:

 

(i)            engage in any material line of business substantially different from those lines of business conducted by the Borrower and its Subsidiaries on the date hereof or any business reasonably related or ancillary thereto (including, without limitation, the development of real property);

 

(ii)           enter into any agreement evidencing Indebtedness for borrowed money in an amount equal to or greater than the Threshold Amount other than (A) in the case of OpCo and its Subsidiaries, the OpCo Credit Agreement and agreements evidencing Indebtedness permitted thereunder, (B) in the case of LandCo and its Subsidiaries, the LandCo Credit Agreement and agreements evidencing Indebtedness permitted thereunder, (C) in the case of the GVR Entities, the GVR Credit Agreement and agreements evidencing Indebtedness permitted thereunder, or (D) on terms no less favorable than prevailing market terms for similar transactions;

 

(iii)          enter into any transaction of any kind with an Affiliate other than (A) in the case of OpCo and its Subsidiaries, to the extent permitted under Section 7.08 of the OpCo Credit Agreement as in effect on the Closing Date, (B) in the case of LandCo and its Subsidiaries, to the extent permitted under Section 6.6 of the LandCo Credit Agreement as in effect on the Closing Date, (C) in the case of the GVR Entities, to the extent permitted under Section 7.08 of the GVR Credit Agreement as in effect on the GVR Acquisition Consummation Date, or (D) in the case of any other Unrestricted Subsidiary, transactions of the type contemplated by Section 7.08 or otherwise on terms substantially as favorable to such Unrestricted Subsidiary as would be obtainable by such Unrestricted Subsidiary at the time in a comparable arm’s-length transaction with a Person not constituting an Affiliate of any Loan Party or any Subsidiary thereof;

 

(iv)          without the consent of the Administrative Agent, enter into any contractual arrangement that includes a “key-man” or “change of control” provision (or comparable provision) other than (A) any “change of control” provision (or similar provision) included in any agreement governing Indebtedness or certificate of designation governing preferred Equity Interests that are held by Persons not constituting Affiliates of any Loan Party or any Subsidiary thereof or (B) any other agreement with a Person not constituting an Affiliate of any Loan Party or any Subsidiary thereof on arm’s-length terms; or

 

(v)           enter into any management agreement or similar agreement (or amendment of any such agreement) after the Closing Date that, together with any other agreements related thereto, provides for compensation or other consideration to the applicable manager or any Affiliate thereof in excess of the compensation or other consideration that it would have received if such management agreement and related agreements provided fee compensation and consideration to such manager and its Affiliates on the basis of the “sum of 2.0% of the management opportunity gross revenues plus 5.0% of EBITDA” compensation structure set forth in the Management Agreement unless any such excess shall be paid over by such manager and its Affiliates to the Borrower promptly upon receipt thereof; provided, that (i) in the event the

 

160

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

management agreement to which OpCo is a party shall be terminated after the occurrence and during the continuance of an Event of Default under (and as defined in) the OpCo Credit Agreement, OpCo and its Subsidiaries may enter into a replacement management agreement and (ii) in the event the management agreement to which GVR is a party shall be terminated after the occurrence and during the continuance of an Event of Default under (and as defined in) the GVR Credit Agreement, GVR may enter into a replacement management agreement.

 

SECTION 7.19.  Real Property Leases.

 

(a)           Leasing Conditions.  Except as otherwise provided in this Section 7.19, (i) enter into any Material Real Property Lease (a “New Real Property Lease”) or (ii) modify any Material Real Property Lease (including, without limitation, accept a surrender of any portion of any Mortgaged Property subject to a Material Real Property Lease (unless otherwise required by law), allow a reduction in the term of any Material Real Property Lease or a reduction in the Rent payable under any Material Real Property Lease, change any renewal provisions of any Material Real Property Lease, materially increase the obligations of the landlord or materially decrease the obligations of any Tenant under a Material Real Property Lease) or terminate any Material Real Property Lease unless the Tenant under such Material Real Property Lease is in default (any such action referred to in clause (ii) being referred to herein as a “Real Property Lease Modification”) without the prior written consent of the Administrative Agent, not to be unreasonably withheld, delayed or conditioned. Any New Real Property Lease or Real Property Lease Modification that requires the Administrative Agent’s consent shall be delivered to the Administrative Agent for approval not less than five (5) Business Days prior to the effective date of such New Real Property Lease or Real Property Lease Modification.  If the Administrative Agent fails to respond to a request for the Administrative Agent’s consent pursuant to this Section 7.19 within five (5) Business Days of the Administrative Agent’s receipt of the Borrower’s request therefor, Borrower may deliver to the Administrative Agent a second request in an envelope or under cover of a letter marked “URGENT” and including a legend in bold typeface that the Administrative Agent’s failure to grant or deny the requested consent within ten (10) Business Days of the receipt thereof will result in the requested consent being deemed to have been granted.  If the Administrative Agent fails to respond to such second request within ten (10) Business Days of its receipt thereof, the Administrative Agent’s consent shall be deemed granted.  Notwithstanding the foregoing, but subject to terms of Sections 7.19(f) and (g), so long as no Default shall have occurred and be continuing, the Borrower or a Restricted Subsidiary may enter into a New Real Property Lease or Real Property Lease Modification in accordance with the Real Property Leasing Standards.  All Real Property Leases not otherwise subject to this paragraph (a) shall be entered into on commercially reasonable, market terms.

 

(b)           Delivery of New Real Property Lease or Real Property Lease Modification.  Upon the execution of any New Real Property Lease or Real Property Lease Modification, as applicable, by the Borrower or any Restricted Subsidiary, the Borrower shall deliver to the Administrative Agent an executed copy of such Real Property Lease or Real Property Lease Modification.

 

161

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(c)           Real Property Lease Amendments.  The Borrower agrees that neither it nor any Restricted Subsidiary shall have the right or power, as against the Administrative Agent and the Lenders without the consent of the Administrative Agent (which consent shall not be unreasonably withheld or delayed as provided herein), to cancel, abridge, amend or otherwise modify any Real Property Lease unless such modification complies with this Section 7.19.

 

(d)           No Default Under Real Property Leases.  The Borrower shall or shall cause the applicable Restricted Subsidiary to (i) promptly perform and observe all of the material terms, covenants and conditions required to be performed and observed by Borrower or such Restricted Subsidiary under the Real Property Leases, if the failure to perform or observe the same would have a Material Adverse Effect; (ii) exercise, within ten (10) Business Days after a written request by the Administrative Agent, any right to request from the Tenant under any Material Real Property Lease a certificate with respect to the status thereof and (iii) not collect any of the Rents under any Real Property Lease more than one (1) month in advance (except that the Borrower may collect such security deposits and last month’s Rents as are permitted by Law and are commercially reasonable in the prevailing market and collect other charges in accordance with the terms of each Real Property Lease).

 

(e)           Subordination.  All Real Property Lease Modifications and New Real Property Leases entered into by the Borrower or any Restricted Subsidiary after the Closing Date shall by their express terms be subject and subordinate to this Agreement and the Mortgages (through a subordination provision contained in such Real Property Lease or otherwise).

 

(f)            Attornment.  Each New Real Property Lease entered into from and after the Closing Date shall, unless otherwise consented to by the Administrative Agent in its commercially reasonable discretion (which consent shall not be unreasonably withheld, delayed or conditioned), provide that in the event of the enforcement by the Administrative Agent of any remedy under this Agreement or the Mortgages, the Tenant under such Real Property Lease shall, at the option of the Administrative Agent or of any other Person succeeding to the interest of the Administrative Agent as a result of such enforcement, attorn to the Administrative Agent or to such Person and shall recognize the Administrative Agent or such successor in the interest as lessor under such Real Property Lease without change in the provisions thereof; provided, however, the Administrative Agent or such successor in interest shall not be liable for or bound by (i) any payment of an installment of rent or additional rent made more than thirty (30) days before the due date of such installment, (ii) any act or omission of or default by the Borrower or any Restricted Subsidiary under any such Real Property Lease (but the Administrative Agent, or such successor, shall be subject to the continuing obligations of the landlord to the extent arising from and after such succession to the extent of the Administrative Agent’s, or such successor’s, interest in the applicable Mortgaged Property), (iii) any credits, claims, setoffs or defenses which any Tenant may have against the Borrower or any Restricted Subsidiary, (iv) any obligation on the part of the Borrower or any Restricted Subsidiary, pursuant to such Real Property Lease, to perform any tenant improvement work, or (v) any obligation on the part of the Borrower or any Restricted Subsidiary, pursuant to such Real Property Lease, to pay any sum of money to any Tenant but only to the extent that the Administrative Agent or such successor in interest is not in receipt of any such funds provided for the purpose of covering (i) through (v) above.  In addition, each such New Real Property Lease shall, unless otherwise

 

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consented to by the Administrative Agent in its commercially reasonable discretion (which consent shall not be unreasonably withheld, delayed or conditioned), provide that, upon the reasonable request by the Administrative Agent or such successor in interest, the Tenant shall execute and deliver an instrument or instruments confirming such attornment.

 

(g)           Non-Disturbance Agreements.  The Administrative Agent shall enter into, and, if required by applicable law to provide constructive notice or requested by a Tenant, record in the county where the subject Real Property is located, a subordination, attornment and non-disturbance agreement, substantially in form and substance substantially similar to the form of Exhibit M (a “Non-Disturbance Agreement”), subject to such modifications reasonably requested by a Tenant, with any Tenant (other than an Affiliate of the Borrower) entering into a New Real Property Lease or Real Property Lease Modification, within twenty (20) Business Days after written request therefor by the Borrower; provided that such request is accompanied by certificate of a Responsible Officer of the Borrower stating that such Real Property Lease or Real Property Lease Modification (as applicable) complies in all material respects with this Section 7.19 and payment of all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of any Non-Disturbance Agreement, including, without limitation, reasonable attorneys’ fees and disbursements.

 

(h)           Recognition Agreements.  The Borrower and the Restricted Subsidiaries shall have the right to enter into recognition agreements or nondisturbance and attornment agreements with Tenants under Real Property Leases without Lender’s consent.

 

ARTICLE VIII

 

Events of Default and Remedies

 

SECTION 8.01.  Events of Default.  Any of the following shall constitute an Event of Default:

 

(a)           Non-Payment.  The Borrower or any other Loan Party fails to pay, whether at the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or otherwise, (i) when and as required to be paid herein, any amount of principal of any Loan, or (ii) within five (5) Business Days after the same becomes due, any interest on any Loan or any other amount payable hereunder or with respect to any other Loan Document; or

 

(b)           Specific Covenants.  The Borrower or any other Loan Party (i) fails to perform or observe any term, covenant or agreement contained in any of Sections 2.16, 6.03(a), 6.05(a) (solely with respect to the Borrower), 6.11(b) or (c), 6.18(c), (f) or (i), 6.20 or Article 7; provided that any Event of Default under Section 7.11 is subject to cure as contemplated by Section 8.05, (ii) fails to perform or observe any covenant or agreement contained in Section 6.01 or 6.02(a), (b), (d) or (f) on its part to be performed or observed and such failure continues for five (5) Business Days after the earlier of actual knowledge thereof by a Responsible Officer of the applicable Loan Party and notice thereof by the Administrative Agent to the Borrower, (iii) fails to perform or observe any covenant or agreement contained in Section 6.10 on its part 

 

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to be performed or observed and (so long as no other Default has occurred and is continuing) such failure continues for ten (10) Business Days after the earlier of actual knowledge thereof by a Responsible Officer of the applicable Loan Party and notice thereof by the Administrative Agent to the Borrower or (iv) fails to perform or observe any covenant or agreement contained in Section 6.21 on its part to be performed or observed and such failure continues for ten (10) Business Days after the earlier of actual knowledge thereof by a Responsible Officer of the applicable Loan Party and notice thereof by the Administrative Agent to the Borrower; or

 

(c)           Other Defaults.  The Borrower or any other Loan Party fails to perform or observe any other covenant or agreement (not specified in Section 8.01(a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for thirty (30) days after the earlier of actual knowledge thereof by a Responsible Officer of the applicable Loan Party and notice thereof by the Administrative Agent to the Borrower; or

 

(d)           Representations and Warranties.  Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party herein, in any other Loan Document, or in any document or certificate required to be delivered in connection herewith or therewith shall be incorrect or misleading in any material respect (or, in the case of any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language, in any respect) when made or deemed made or furnished; or

 

(e)           Cross-Default.  Any Loan Party (i) fails to make any payment beyond the applicable grace period with respect thereto, if any (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness (other than Indebtedness hereunder and any intercompany Indebtedness among the Borrower and the Restricted Subsidiaries) having an aggregate principal amount of not less than the Threshold Amount, or (ii) fails to observe or perform any other agreement or condition relating to any such Indebtedness, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity; provided that this clause (e)(ii) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder and under the documents providing for such Indebtedness; or

 

(f)            Insolvency Proceedings, Etc.  Any Loan Party institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator, administrator, administrative receiver or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator, administrator, administrative receiver or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for sixty (60) calendar days; or any proceeding under any Debtor 

 

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Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for sixty (60) calendar days, or an order for relief is entered in any such proceeding; or

 

(g)           Inability to Pay Debts; Attachment.  (i) Any Loan Party admits in writing its inability or fails generally to pay its debts as they become due or makes a general assignment for the benefit of its creditors, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of the Loan Parties, taken as a whole, and is not released, vacated or fully bonded within sixty (60) days after its issue or levy; or

 

(h)           Judgments.  There is entered against any Loan Party a final judgment or order for the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied coverage) and such judgment or order shall not have been satisfied, vacated, discharged or stayed or bonded pending an appeal for a period of sixty (60) consecutive days; or

 

(i)            ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of any Loan Party in an aggregate amount which could reasonably be expected to result in a Material Adverse Effect, or (ii) any Loan Party or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount which could reasonably be expected to result in a Material Adverse Effect; or

 

(j)            Invalidity of Loan Documents.  Any material provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder (including as a result of a transaction permitted under Section 7.04 or 7.05) or as a result of acts or omissions by the Administrative Agent or any Lender or the satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party contests in writing the validity or enforceability of any provision of any Loan Document; or any Loan Party denies in writing that it has any or further liability or obligation under any Loan Document (other than as a result of repayment in full of the Obligations and termination of the Aggregate Commitments), or purports in writing to revoke or rescind any Loan Document; or

 

(k)           Change of Control.  There occurs any Change of Control; or

 

(l)            Collateral Documents.  (i) Any Collateral Document after delivery thereof pursuant to Section 4.01, 6.11 or 6.13 shall for any reason (other than pursuant to the terms thereof, including as a result of a transaction permitted under Section 7.04 or 7.05) cease to create a valid and perfected lien, with the priority required by the Collateral Documents, (or other security purported to be created on the applicable Collateral) on and security interest in any portion of the Collateral having a Fair Market Value in excess of $5,000,000 purported to be covered thereby, subject to Permitted Liens, except to the extent that any such loss of perfection or priority results from the failure of the Administrative Agent to maintain possession 

 

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of certificates actually delivered to it representing securities pledged under the Collateral Documents or to file Uniform Commercial Code continuation statements (so long as such failure does not result from the breach or non-compliance by a Loan Party with the terms of any Loan Document), or (ii) any of the Equity Interests of the Borrower, any Restricted Subsidiary or any direct Subsidiary of the Borrower or any Restricted Subsidiary ceasing to be pledged pursuant to the applicable Collateral Documents free of Liens other than Liens created by the Collateral Documents, or any nonconsensual Permitted Liens arising solely by operation of Law; or

 

(m)          [Reserved]

 

(n)           Loss or Revocation of Casino License.  The occurrence of a License Revocation (after giving effect to any applicable cure period expressly set forth in the definition of “License Revocation”) that continues for more than five (5) Business Days during which time enforcement is not stayed by appeal or similar proceeding with the applicable Gaming Authority; or

 

(o)           Cessation of Operations.  The Borrower or any Restricted Subsidiary ceases to operate a casino (and, as applicable, hotel) at any Core Property or ceases to conduct significant gaming and hotel activities thereon for any reason whatsoever (other than temporary cessation in connection with alterations permitted hereunder or restoration following a Casualty Event); or

 

(p)           Amendment or Termination of Material Contracts.  Any Material Contract of any Loan Party (other than a Material Contract referred to in clause (i) of the definition thereof) shall, in whole or in part, be amended, modified or changed (or any provision thereof waived) (other than as permitted by Section 7.13(i)), terminated (other than upon the expiration of the term thereof), cease to be effective or cease to be the legally valid, binding and enforceable obligation in any material respect of any party thereto, in each case if the effect of such amendment, modification, change, waiver, termination or other action, could reasonably be expected to have a Material Adverse Effect; or

 

(q)           Termination or Amendment of Certain Contracts.  Any Manager Document, the Management Subordination Agreement, any Subsidiary Cost Allocation Agreement, any Subsidiary Tax Sharing Agreement or any Transition Services Agreement (or any provision thereof) shall, in whole or in part, be amended, supplemented, modified or waived (other than as permitted by Section 6.18, 7.13(e), 7.13(g) or 7.13(h), as the case may be), terminated (other than upon the expiration of the term thereof), cease to be effective or cease to be the legally valid, binding and enforceable obligation in any material respect of any party thereto; or

 

(r)            IP Holdco.  Prior to the IP Holdco Transition Date, (i) IP Holdco shall Dispose of or otherwise transfer any of its IP Rights (other than (x) the Disposition of obsolete assets which are no longer used by Borrower or any of its Subsidiaries in operation of their business and (y) the licensing of such IP Rights pursuant to the Borrower/IP Holdco License Agreement, the OpCo/IP Holdco License Agreement and similar intercompany license agreements with other Unrestricted Subsidiaries of the Borrower no less favorable to IP Holdco 

 

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then the Borrower/IP Holdco License Agreement and the OpCo/IP Holdco License Agreement), (ii) IP Holdco shall incur any Indebtedness or create, incur, assume or suffer to exist any Lien upon, any IP Rights owned thereby other than pursuant to the Borrower/IP Holdco License Agreement, the OpCo/IP Holdco License Agreement and similar intercompany license agreements with other Unrestricted Subsidiaries of the Borrower no less favorable to IP Holdco than the Borrower/IP Holdco License Agreement and the OpCo/IP Holdco License Agreement, (iii) the Borrower/IP Holdco License Agreement shall be terminated, (iv) any license agreement described in the foregoing clause (ii) shall be amended, modified, waived or changed in any manner materially adverse to the interests of the Lenders, (v) IP Holdco shall fail to maintain in full force and effect its legal existence under the Laws of its jurisdiction of organization or shall merge, dissolve, liquidate or consolidate with or into another Person, (vi) IP Holdco shall cease to be engaged exclusively in the ownership of IP Rights for the purpose of licensing such IP Rights in accordance with the license agreements described in (ii) above, (vii) an event described in Section 8.01(f) shall occur with respect to IP Holdco, (viii) any change in the ownership of the Equity Interests of IP Holdco as of the Closing Date shall occur (including, without limitation, as a result of any failure by the Lenders to own (through the Administrative Agent as their designee) ten percent (10%) of the Equity Interests of IP Holdco other than due to a Disposition by the Lenders), (ix) IP Holdco shall fail to constitute a special-purpose bankruptcy remote entity or (x) IP Holdco shall breach any provision of, or default in the performance of its obligations under, the Borrower/IP Holdco License Agreement; or

 

(s)           OpCo.  (i) The Borrower shall cease to own directly 100% of the Equity Interests of OpCo Holdings, (ii) OpCo Holdings shall cease to own directly 100% of the Equity Interests of OpCo or (iii) any sale of all or substantially all of the assets of OpCo and its Subsidiaries shall occur, in each case, other than as a result of any foreclosure under the OpCo Loan Documents or as a result of any sale in accordance with Section 6.19(c) and Section 7.18 where the Net Cash Proceeds of such disposition have been applied to prepayment of the Term Loans pursuant to Section 2.05(b)(ii); or

 

(t)            GVR Holding Companies.  (i) The Borrower shall cease to own directly 100% of the Equity Interests of GVR Holdco 3, (ii) GVR Holdco 3 shall cease to own, directly or indirectly, at least 77.5% of the Equity Interests of GVR or (iii) any sale of all or substantially all of the assets of the GVR Entities shall occur, in each case, other than as a result of any foreclosure under the GVR Loan Documents or as a result of any sale in accordance with Section 6.19(c) and Section 7.18 where the Net Cash Proceeds of such disposition have been applied to prepayment of the Term Loans pursuant to Section 2.05(b)(ii); or

 

(u)           Holding Company Tax Sharing Agreement.  The Borrower or any of its Restricted Subsidiaries shall breach any material provision of, or default in the performance of its material obligations under, the Holding Company Tax Sharing Agreement or make any payment to any Holding Company in respect of taxes attributable to the operations of the Borrower and its Subsidiaries other than in accordance with the terms of the Holding Company Tax Sharing Agreement, including any applicable grace periods with respect thereto.

 

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SECTION 8.02.  Remedies Upon Event of Default.  If any Event of Default occurs and is continuing, the Administrative Agent may and, at the request of the Required Lenders, shall take any or all of the following actions:

 

(a)           declare the commitment of each Lender to make Loans and any obligation of the L/C Issuers to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be terminated;

 

(b)           declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower;

 

(c)           require that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to 105% of the then Outstanding Amount thereof);

 

(d)           exercise the right of the Administrative Agent under the Control Agreements to transfer funds maintained in the deposit accounts and securities accounts of the Loan Parties to such account as the Administrative Agent shall determine; and

 

(e)           exercise on behalf of itself and the Lenders all other rights and remedies available to it and the Lenders under the Loan Documents or applicable Law;

 

provided that upon the occurrence of any event described in Section 8.01(f) or actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, the obligation of each Lender to make Loans and any obligation of the L/C Issuers to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.

 

SECTION 8.03.  [Reserved].

 

SECTION 8.04.  Application of Funds.  (a) After the exercise of remedies (including rights of setoff) provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to Section 8.02), any amounts received on account of the Obligations (whether as a result of a payment under a Guaranty, any realization on the Collateral, any setoff rights, any distribution in connection with any proceedings or other action of any Loan Party in respect of Debtor Relief Laws or otherwise) shall be applied by the Administrative Agent in the following order:

 

First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal and interest, but including Attorney Costs payable under Section 10.04 and amounts payable under Article 3 and Sections 6.18(h) and (j)) payable to the Administrative Agent in its capacity as such;

 

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Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Secured Parties (including Attorney Costs payable under Section 10.04 and amounts payable under Article 3) under the Loan Documents (which, for the avoidance of doubt, excludes the Secured Hedge Obligations and Cash Management Obligations), ratably among them in proportion to the amounts described in this clause Second payable to them;

 

Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and L/C Borrowings, ratably among the applicable Secured Parties in proportion to the respective amounts described in this clause Third payable to them;

 

Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C Borrowings, the termination value under Secured Hedge Agreements and the Cash Management Obligations, ratably among the applicable Secured Parties in proportion to the respective amounts described in this clause Fourth held by them;

 

Fifth, to the payment of all other Obligations of the Loan Parties that are due and payable to the Administrative Agent and the other Secured Parties on such date, ratably based upon the respective aggregate amounts of all such Obligations owing to the Administrative Agent and the other applicable Secured Parties on such date; and

 

Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Law;

 

provided that any amounts received by the Administrative Agent (for the account of any L/C Issuer) upon the exercise of remedies available under the L/C Back-Stop Arrangements shall first be applied to the obligations of the applicable L/C Issuer in accordance with the terms of the L/C Back-Stop Arrangements, with any excess amount remaining after such application to be applied to the other Obligations, if any, in the order set forth above; provided, further, that, subject to Section 2.13, any amounts received by the Administrative Agent pursuant to clause (d) of Section 8.02 may be applied or otherwise administered by the Administrative Agent as the Administrative Agent shall direct.

 

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fourth above shall be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above and, if no Obligations remain outstanding, such remaining amount shall be paid to the Borrower or as otherwise required by Law.

 

(b)           Without limiting the generality of the foregoing, this Section 8.04 is intended to constitute and shall be deemed to constitute a “subordination agreement” within the meaning of Section 510(a) of the Bankruptcy Code and is intended to be and shall be interpreted to be enforceable to the maximum extent permitted pursuant to applicable nonbankruptcy law.  

 

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Amounts applied pursuant to clauses First through Fifth of Section 8.04(a) are to be applied, for the avoidance of doubt, in the order required by such clauses until the payment in full in cash of the applicable Obligations referred to in the applicable clause.

 

(c)           If any Secured Party collects or receives any amounts received on account of the Obligations to which it is not entitled under Section 8.04(a) hereof, such Secured Party shall hold the same in trust for the applicable Secured Parties entitled thereto and shall forthwith deliver the same to the Administrative Agent, for the account of such Secured Parties, to be applied in accordance with Section 8.04(a) hereof, in each case until the prior payment in full in cash of the applicable Obligations of such Secured Parties.

 

SECTION 8.05.  Borrower’s Right to Cure.  Notwithstanding anything to the contrary contained in Section 8.01, in the event of any Event of Default under any covenant set forth in Section 7.11 and until the expiration of the tenth (10th) day after the date on which financial statements are required to be delivered with respect to the applicable fiscal quarter hereunder, Holdco and the Borrower may engage in a Permitted Equity Issuance and the Borrower may apply the amount of the Net Cash Proceeds thereof to increase Consolidated EBITDA with respect to such applicable quarter (such quarter, a “Default Quarter”); provided that such Net Cash Proceeds (i) are actually received by the Borrower (including through capital contribution of such Net Cash Proceeds by Holdco to the Borrower) no later than ten (10) days after the date on which financial statements are required to be delivered with respect to such Default Quarter hereunder, and (ii) do not exceed the aggregate amount necessary to cause the Borrower to be in compliance with Section 7.11 for the applicable period (but, for such purpose, not taking into account any repayment of Indebtedness in connection therewith required pursuant to Section 2.05(b)(iv)); provided, further, that the Borrower shall not be permitted to engage in any more than two (2) Permitted Equity Issuances pursuant to this Section 8.05 in any period of four consecutive fiscal quarters or (6) six Permitted Equity Issuances pursuant to this Section 8.05 during the term of this Agreement.  The parties hereby acknowledge that this Section 8.05 may not be relied on for purposes of calculating any financial ratios other than as applicable to Section 7.11 and shall not result in any adjustment to Consolidated EBITDA other than for purposes of compliance with Section 7.11 on the last day of a given Test Period (and not, for avoidance of doubt, for purposes of determining Pro Forma Compliance with Section 7.11 for any other purposes of this Agreement).

 

ARTICLE IX

 

Administrative Agent and Other Agents

 

SECTION 9.01.  Appointment and Authorization of Agents.  (a) Each Lender hereby irrevocably appoints, designates and authorizes the Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, the Administrative Agent shall have no duties or responsibilities, except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to 

 

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have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent.  Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan Documents with reference to any Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law.  Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

 

(b)           Each L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and each such L/C Issuer shall have all of the benefits and immunities (i) provided to the Agents in this Article 9 with respect to any acts taken or omissions suffered by such L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully as if the term “Agent” as used in this Article 9 and in the definition of “Agent-Related Person” included such L/C Issuer with respect to such acts or omissions, and (ii) as additionally provided herein with respect to such L/C Issuer.

 

(c)           The Administrative Agent shall also act as the “collateral agent” under the Loan Documents, and each of the Lenders (in its capacities as a Lender, Swing Line Lender (if applicable), L/C Issuer (if applicable), a potential Hedge Bank or a potential Cash Management Bank) hereby irrevocably appoints and authorizes the Administrative Agent (A) to act as the agent of (and to hold any security interest created by the Collateral Documents for and on behalf of or on trust for) such Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto and (B) without limiting the generality of the appointment and authorization of the foregoing clause (A), to enter into the Collateral Documents.  In this connection, the Administrative Agent, as “collateral agent” (and any co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant to Section 9.02 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent), shall be entitled to the benefits of all provisions of this Article 9 (including Section 9.07, as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto.

 

SECTION 9.02.  Delegation of Duties.  The Administrative Agent may execute any of its duties under this Agreement or any other Loan Document (including for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents or of exercising any rights and remedies thereunder) by or through agents, employees or attorneys-in-fact including for the purpose of any Borrowings, such sub-agents as shall be deemed necessary by the Administrative Agent and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties.  The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or sub-agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct (as determined in the final judgment of a court of competent jurisdiction).

 

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SECTION 9.03.  Liability of Agents.  No Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct, as determined by the final judgment of a court of competent jurisdiction, in connection with its duties expressly set forth herein), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by any Loan Party or any officer thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or the perfection or priority of any Lien or security interest created or purported to be created under the Collateral Documents, or for any failure of any Loan Party or any other party to any Loan Document to perform its obligations hereunder or thereunder.  No Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party or any Affiliate thereof.

 

SECTION 9.04.  Reliance by Agents.  (a) Each Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, electronic mail message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to any Loan Party), independent accountants and other experts selected by such Agent.  Each Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.  Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders.

 

(b)           For purposes of determining compliance with the conditions specified in Section 4.01, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Closing Date specifying its objection thereto.

 

(c)           The Administrative Agent shall be permitted, without obtaining the consent of the Required Lenders, to make any determination hereunder that, pursuant to the terms hereof, requires the consent, approval or other determination of the Administrative Agent; provided, however that the Administrative Agent shall be permitted to request instructions from the Required Lenders with respect to such matters.  If the Administrative Agent requests

 

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instructions from the Required Lenders with respect to any act or action (including failure to act) in connection with this Agreement or any other Loan Document, the Administrative Agent shall be entitled to refrain from such act or taking such action unless and until the Administrative Agent shall have received instructions from the Required Lenders; and the Administrative Agent shall not incur liability to any Lender by reason of so refraining.  Without limiting the foregoing, neither any Lender nor the holder of any Note shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting hereunder or under any other Loan Document in accordance with the instructions of the Required Lenders.

 

(d)           The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until a written notice of the assignment, transfer or endorsement thereof, as the case may be, shall have been filed with the Administrative Agent.  Any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is the holder of any Note shall be conclusive and binding on any subsequent holder, transferee, assignee or endorsee, as the case may be, of such Note or of any Note or Notes issued in exchange therefor.

 

SECTION 9.05.  Notice of Default.  The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to the Administrative Agent for the account of the Lenders, unless the Administrative Agent shall have received written notice from a Lender or the Borrower referring to this Agreement, describing such Default and stating that such notice is a “notice of default.”  The Administrative Agent will notify the Lenders of its receipt of any such notice.  The Administrative Agent shall take such action with respect to any Event of Default as may be directed by the Required Lenders in accordance with Article 8; provided that unless and until the Administrative Agent has received any such direction, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default as it shall deem advisable or in the best interest of the Lenders.

 

SECTION 9.06.  Credit Decision; Disclosure of Information by Agents.  Each Lender acknowledges that no Agent-Related Person has made any representation or warranty to it, and that no act by any Agent hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of any Loan Party or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter, including whether Agent-Related Persons have disclosed material information in their possession.  Each Lender represents to each Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties and their respective Subsidiaries, and all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Borrower and the other Loan Parties hereunder.  Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement

 

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and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and the other Loan Parties.  Except for notices, reports and other documents expressly required to be furnished to the Lenders by any Agent herein, such Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any of the Loan Parties or any of their respective Affiliates which may come into the possession of any Agent-Related Person.

 

SECTION 9.07.  Indemnification of Agents.  Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand the Administrative Agent and the Supplemental Administrative Agents (if any) and, in each such case, their respective Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of such Persons (to the extent not reimbursed by or on behalf of any Loan Party and without limiting the obligation of any Loan Party to do so), pro rata, and hold harmless each such Person from and against any and all Indemnified Liabilities incurred by it in exercising the powers, rights and remedies of the Administrative Agent or the Supplemental Administrative Agents (if any) or performing duties of the Administrative Agent or the Supplemental Administrative Agents (if any) hereunder or under the other Loan Documents or otherwise in its capacity as the Administrative Agent or the Supplemental Administrative Agents (if any) or, in the case of the Administrative Agent, its Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of the Administrative Agent, any and all Indemnified Liabilities incurred by it in making any determinations of the Administrative Agent as described above; provided that no Lender shall be liable for the payment to any such Person of any portion of such Indemnified Liabilities resulting from such Person’s own gross negligence or willful misconduct, as determined by the final judgment of a court of competent jurisdiction; provided, further, that no action taken in accordance with the directions of the Required Lenders (or such other number or percentage of the Lenders as shall be required by the Loan Documents) shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section 9.07.  In the case of any investigation, litigation or proceeding giving rise to any Indemnified Liabilities, this Section 9.07 applies whether any such investigation, litigation or proceeding is brought by any Lender or any other Person.  Without limitation of the foregoing, each Lender shall reimburse the Administrative Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the Borrower.  The undertaking in this Section 9.07 shall survive termination of the Aggregate Commitments, the payment of all other Obligations and the resignation of the Administrative Agent.

 

SECTION 9.08.  Agents in their Individual Capacities.  DBCI and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire Equity Interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with each of the Loan Parties and their respective Affiliates as though DBCI were not the Administrative Agent or an L/C Issuer hereunder and without notice to or consent

 

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of the Lenders.  The Lenders acknowledge that, pursuant to such activities, DBCI or its Affiliates may receive information regarding any Loan Party or its Affiliates (including information that may be subject to confidentiality obligations in favor of such Loan Party or such Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information to them.  With respect to its Loans, DBCI shall have the same rights and powers under this Agreement as any other Lender and may exercise such rights and powers as though it were not the Administrative Agent or the Swing Line Lender, and the terms “Lender” and “Lenders” include DBCI in its individual capacity.

 

SECTION 9.09.  Successor Agents.  The Administrative Agent may resign as the Administrative Agent upon thirty (30) days’ notice to the Lenders and the Borrower.  If the Administrative Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall be consented to by the Borrower at all times other than during the existence of an Event of Default (which consent of the Borrower shall not be unreasonably withheld or delayed).  If no successor agent is appointed prior to the effective date of the resignation of the Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders and the Borrower, a successor agent from among the Lenders.  Upon the acceptance of its appointment as successor agent hereunder, the Person acting as such successor agent shall succeed to all the rights, powers and duties of the retiring Administrative Agent and the term “Administrative Agent,” shall mean such successor administrative agent and/or supplemental administrative agent, as the case may be, and the retiring Administrative Agent’s appointment, powers and duties as the Administrative Agent shall be terminated.  After the retiring Administrative Agent’s resignation hereunder as the Administrative Agent, the provisions of this Article 9 and Sections 10.04 and 10.05 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under this Agreement.  If no successor agent has accepted appointment as the Administrative Agent by the date which is thirty (30) days following the retiring Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above.  Upon the acceptance of any appointment as the Administrative Agent hereunder by a successor and upon the execution and filing or recording of such financing statements, or amendments thereto, and such amendments or supplements to the Mortgages, and such other instruments or notices, as may be necessary or desirable, or as the Required Lenders may request, in order to (a) continue the perfection of the Liens granted or purported to be granted by the Collateral Documents (including without limitation transferring to such successor or its Affiliates the Cash Collateral Account and any other accounts held by the Administrative Agent or an Affiliate thereof for the benefit of the Lenders) or (b) otherwise ensure that the Collateral and Guarantee Requirement is satisfied, the Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, discretion, privileges, and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under the Loan Documents.  The retiring Administrative Agent agrees to cooperate with any successor and the Required Lenders in order to effectuate the transfers described above. After the retiring Administrative Agent’s resignation hereunder as the Administrative Agent, the provisions of this Article 9 and Sections 10.04 and 10.05 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Administrative Agent.

 

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SECTION 9.10.  Administrative Agent May File Proofs of Claim.  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

(a)           to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.03(h) and (i), 2.09, 10.04 and 10.05) allowed in such judicial proceeding; and

 

(b)           to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agents and their respective agents and counsel, and any other amounts due the Administrative Agent under Sections 2.09, 10.04 and 10.05.

 

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

 

SECTION 9.11.  Collateral and Guaranty Matters.

 

(a)           Each Lender authorizes and directs the Administrative Agent to enter into the Collateral Documents for the benefit of the Lenders and the other Secured Parties.  Each Lender hereby agrees, and each holder of any Note by the acceptance thereof will be deemed to agree, that, except as otherwise set forth herein, any action taken by the Required Lenders in accordance with the provisions of this Agreement or the Collateral Documents, and the exercise by the Required 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.  The Administrative Agent is hereby authorized on behalf of all of the Lenders, without the necessity of any notice to or further consent from any Lender, from time to time prior to an Event of Default, to take any action permitted under the Collateral Documents with respect to any Collateral or Collateral Documents which may be necessary to perfect and

 

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maintain perfected the security interest in and liens upon the Collateral granted pursuant to the Collateral Documents.

 

(b)           The Lenders irrevocably agree:

 

(i)            that any Lien on any property granted to or held by the Administrative Agent under any Loan Document shall be automatically released (A) upon termination of the Aggregate Commitments, the payment in full of all Obligations (other than (x) obligations under Secured Hedge Agreements not yet due and payable, (y) Cash Management Obligations not yet due and payable and (z) contingent indemnification obligations not yet accrued and payable) and the cash collateralization (by pledge of, and deposit with or delivery to the applicable L/C Issuer of, Cash Collateral in an amount equal to 105% of the Outstanding Balance of such Letter of Credit pursuant to documentation in form and substance reasonably satisfactory to such L/C Issuer), expiration or termination of, or the implementation of other arrangements satisfactory to the applicable L/C Issuer in its sole discretion in respect of, all Letters of Credit (collectively, the “Release Conditions”), (B) at the time the property subject to such Lien is transferred or to be transferred as part of or in connection with any transfer permitted hereunder and under each other Loan Document to any Person other than the Borrower or any Restricted Subsidiary, (C) subject to Section 10.01, if the release of such Lien is approved, authorized or ratified in writing by the Required Lenders, or (D) if the property subject to such Lien is owned by a Guarantor, upon release of such Guarantor from its obligations under its Guaranty pursuant to clause (iii) below;

 

(ii)           to release or subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder of any Permitted Lien on such property that is permitted by Section 7.01(i);

 

(iii)          that any Guarantor shall be automatically released from its obligations under the Guaranty and the Liens granted by such Person under the Collateral Documents shall be automatically released (A) upon satisfaction of the Release Conditions or (B) if such Person ceases to be a Restricted Subsidiary as a result of a transaction or designation permitted hereunder (including as a result of a Guarantor being redesignated as an Unrestricted Subsidiary); provided, that no release described in the foregoing clause (B) shall occur if (after giving effect to such release) such Guarantor will provide a Guarantee of any Indebtedness of the Borrower or any Restricted Subsidiary; and

 

(iv)          to release the Liens granted to or held by the Administrative Agent pursuant to the Shareholder Pledge Agreement upon the occurrence of a Qualified IPO by the Borrower.

 

Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty, pursuant to this Section 9.11(b).  In each case as specified in this Section 9.11(b), the Administrative Agent will (and each Lender irrevocably authorizes the Administrative Agent to), at the Borrower’s expense, execute and deliver to the applicable Loan Party such documents as

 

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such Loan Party may reasonably request to evidence the release or subordination of such item of Collateral from the assignment and security interest granted under the Collateral Documents, or to evidence the release of such Guarantor from its obligations under the Guaranty, in each case in accordance with the terms of the Loan Documents and this Section 9.11(b).

 

(c)           The Administrative Agent shall have no obligation whatsoever to the Lenders or to any other Person to assure that the Collateral exists or is owned by any Loan Party or is cared for, protected or insured or that the Liens granted to the Administrative Agent herein or pursuant hereto have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Administrative Agent in this Section 9.11 or in any of the Collateral Documents, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Administrative Agent may act in any manner it may deem appropriate, in its sole discretion, given the Administrative Agent’s own interest in the Collateral as one of the Lenders and that the Administrative Agent shall have no duty or liability whatsoever to the Lenders, except for its gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).

 

SECTION 9.12.  Appointment of Supplemental Administrative Agents.  (a) It is the purpose of this Agreement and the other Loan Documents that there shall be no violation of any Law of any jurisdiction denying or restricting the right of banking corporations or associations to transact business as agent or trustee in such jurisdiction.  It is recognized that in case of litigation under this Agreement or any of the other Loan Documents, and in particular in case of the enforcement of any of the Loan Documents, or in case the Administrative Agent deems that by reason of any present or future Law of any jurisdiction it may not exercise any of the rights, powers or remedies granted herein or in any of the other Loan Documents or take any other action which may be desirable or necessary in connection therewith, the Administrative Agent is hereby authorized to appoint an additional individual or institution selected by the Administrative Agent in its sole discretion as a separate trustee, co-trustee, administrative agent, collateral agent, administrative sub-agent or administrative co-agent (any such additional individual or institution being referred to herein individually as a “Supplemental Administrative Agent” and collectively as “Supplemental Administrative Agents”).

 

(b)           In the event that the Administrative Agent appoints a Supplemental Administrative Agent with respect to any Collateral, (i) each and every right, power, privilege or duty expressed or intended by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to the Administrative Agent with respect to such Collateral shall be exercisable by and vest in such Supplemental Administrative Agent to the extent, and only to the extent, necessary to enable such Supplemental Administrative Agent to exercise such rights, powers and privileges with respect to such Collateral and to perform such duties with respect to such Collateral, and every covenant and obligation contained in the Loan Documents and necessary to the exercise or performance thereof by such Supplemental Administrative Agent shall run to and be enforceable by either the Administrative Agent or such Supplemental Administrative Agent, and (ii) the provisions of this Article 9 and of Sections 10.04 and 10.05 that refer to the Administrative Agent shall inure to the benefit of such Supplemental Administrative Agent and all references therein to the Administrative Agent shall

 

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be deemed to be references to the Administrative Agent and/or such Supplemental Administrative Agent, as the context may require.

 

(c)           Should any instrument in writing from the Borrower or any other Loan Party be required by any Supplemental Administrative Agent so appointed by the Administrative Agent for more fully and certainly vesting in and confirming to him or it such rights, powers, privileges and duties, the Borrower shall, or shall cause such Loan Party to, execute, acknowledge and deliver any and all such instruments promptly upon request by the Administrative Agent.  In case any Supplemental Administrative Agent, or a successor thereto, shall die, become incapable of acting, resign or be removed, all the rights, powers, privileges and duties of such Supplemental Administrative Agent, to the extent permitted by Law, shall vest in and be exercised by the Administrative Agent until the appointment of a new Supplemental Administrative Agent.

 

ARTICLE X

 

Miscellaneous

 

SECTION 10.01.  Amendments, etc.  Except as otherwise set forth in this Agreement, no amendment, modification, supplement or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless (i) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or (ii) in the case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, with the consent of the Required Lenders, and each such waiver, amendment, modification, supplement or consent shall be effective only in the specific instance and for the specific purpose for which given; provided that, no such amendment, modification, supplement, waiver or consent shall:

 

(a)           extend or increase the Revolving Credit Commitment of any Lender without the written consent of each Lender directly affected thereby (it being understood that a waiver of any condition precedent set forth in Section 4.02 or the waiver of any Default, mandatory prepayment or mandatory reduction of the Revolving Credit Commitments (other than any such required reduction on the Maturity Date) shall not constitute an extension or increase of any Revolving Credit Commitment of any Lender);

 

(b)           postpone any date scheduled for, or reduce the amount of, or subordinate any payment of principal or interest under Section 2.07 or 2.08 or any fees without the written consent of each Lender directly affected thereby, it being understood that the waiver of (or amendment to the terms of) any mandatory prepayment of any Loans or extension of the Maturity Date pursuant to Section 2.14 shall not constitute a postponement of any date scheduled for the payment of principal or interest;

 

(c)           reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clauses (i) and (iii) of the second proviso to this

 

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Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided that, only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate;

 

(d)           change any provision of this Section 10.01, the definition of “Required Lenders” or “Pro Rata Share” or Section 2.06(a), 2.06(c), 2.13, 2.14 or 8.04 or the proviso to Section 8.02, in any such case without the written consent of all Lenders directly affected thereby; provided, however, that the definition of “Pro Rata Share” and Section 2.13 may be amended by the Required Lenders to permit the prepayment of Loans by the Borrower at a discount to par on terms and conditions approved by the Required Lenders, so long as any such prepayment is offered on a ratable basis to all Lenders of the applicable Class (and made ratably to all accepting Lenders of the applicable Class);

 

(e)           release all or substantially all of the Collateral in any transaction or series of related transactions, without the written consent of each Lender; or

 

(f)            release all or substantially all of the aggregate value of the Guarantees, without the written consent of each Lender;

 

and provided, further, that (i) no amendment, waiver or consent shall, unless in writing and signed by each L/C Issuer in addition to the Lenders required above, affect the rights or duties of an L/C Issuer under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of, or any fees or other amounts payable to, the Administrative Agent under this Agreement or any other Loan Document; (iv) Section 10.07(h) may not be amended, waived or otherwise modified without the consent of each Granting Lender all or any part of whose Loans are being funded by an SPC at the time of such amendment, waiver or other modification; and (v) the consent of Lenders holding more than 50% of any Class of commitments or Loans (and, in the event that DBCI and its Affiliates hold, in the aggregate, more than 50% of such Class of commitments or Loans, at least one Lender other than DBCI and its Affiliates) shall be required with respect to any amendment that (x) waives any condition precedent set forth in Section 4.02 solely with respect to the making of Loans or other extensions of credit by such Class (it being understood that a general waiver of a Default or an Event of Default by the Required Lenders, as opposed to a waiver only for the purposes of making Loans or other extensions of credit, shall not constitute a waiver of a condition precedent governed under this clause) or (y) by its terms adversely affects the rights of such Class in respect of payments hereunder in a manner different than such amendment affects other Classes.  Any such waiver and any such amendment, modification or supplement in accordance with the terms of this Section 10.01 shall apply equally to each of the Lenders and shall be binding on the Loan Parties, the Lenders, the Agents and all future holders of the Loans and Revolving Credit Commitments.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Revolving Credit Commitment of such Lender may not be increased or extended without

 

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the consent of such Lender (it being understood that any Revolving Credit Commitments or Loans held or deemed held by any Defaulting Lender shall be excluded for a vote of the Lenders hereunder requiring any consent of the Lenders).

 

Notwithstanding the foregoing, this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, the Administrative Agent and the Borrower (a) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the Term Loans and the Revolving Credit Loans and the accrued interest and fees in respect thereof and (b) to include appropriately the Lenders holding such credit facilities in any determination of the “Required Lenders” and the Lenders’ “Pro Rata Share”.

 

Notwithstanding anything to the contrary contained in this Section 10.01, guarantees, collateral security documents and related documents executed by Foreign Subsidiaries in connection with this Agreement may be in a form reasonably determined by the Administrative Agent and may be, together with this Agreement or the other Loan Documents, amended and waived with the consent of the Administrative Agent at the request of the Borrower without the need to obtain the consent of any other Lender if such amendment or waiver is delivered in order (i) to comply with local Law or advice of local counsel, (ii) to cure ambiguities or defects or (iii) to cause such guarantee, collateral security document or other document to be consistent with this Agreement and the other Loan Documents.

 

SECTION 10.02.  Notices and Other Communications; Facsimile Copies.

 

(a)           General.  Unless otherwise expressly provided herein, all notices and other communications provided for hereunder or under any other Loan Document shall be in writing (including by facsimile transmission).  All such written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or electronic mail address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

 

(i)            if to the Borrower, the Administrative Agent, an L/C Issuer or the Swing Line Lender, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 10.02 or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties; and

 

(ii)           if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the Borrower, the Administrative Agent, the L/C Issuers and the Swing Line Lender.

 

All such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail,

 

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four (4) Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail, when delivered; provided that notices and other communications to the Administrative Agent, the L/C Issuers and the Swing Line Lender pursuant to Article 2 shall not be effective until actually received by such Person.  In no event shall a voice mail message be effective as a notice, communication or confirmation hereunder.

 

(b)           Effectiveness of Facsimile Documents and Signatures.  Loan Documents may be transmitted and/or signed by facsimile.  The effectiveness of any such documents and signatures shall, subject to applicable Law, have the same force and effect as manually signed originals and shall be binding on all Loan Parties, the Agents and the Lenders.

 

(c)           Reliance by Agents and Lenders.  The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify each Agent-Related Person and each Lender from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower in the absence of gross negligence or willful misconduct.  All telephonic notices to the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

 

SECTION 10.03.  No Waiver; Cumulative Remedies.  No failure by any Lender or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by Law.

 

SECTION 10.04.  Attorney Costs, Expenses and Taxes.  The Borrower agrees (a) to pay or reimburse the Administrative Agent, the L/C Issuers and the Lenders for all reasonable out-of-pocket costs and expenses incurred in connection with the preparation, negotiation, syndication and execution of this Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby, including all Attorney Costs of Sidley Austin LLP and Cadwalader, Wickersham and Taft LLP, (b) to pay or reimburse the Administrative Agent and the L/C Issuers for all reasonable out-of-pocket costs and expenses, including Attorney Costs, incurred in connection with any amendment, waiver, consent or other modification of the provisions of this Agreement and the other Loan Documents (whether or not the transactions contemplated thereby are consummated) and the consummation of the transactions contemplated thereby and administration of the transactions contemplated by this Agreement and the other Loan Documents, and (c) to pay or reimburse the Administrative Agent, the L/C Issuers and each Lender for all out-of-pocket costs and expenses incurred in connection with the enforcement of any rights or remedies under this Agreement or the other

 

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Loan Documents (including all such costs and expenses incurred during any legal proceeding, including any proceeding under any Debtor Relief Law, and including all Attorney Costs of counsel to the Administrative Agent and each Lender).  The foregoing costs and expenses shall include all reasonable search, filing, recording and title insurance charges and fees and taxes related thereto, and other (reasonable, in the case of the foregoing clauses (a) and (b)) out-of-pocket expenses incurred by any Agent and any Lender, as applicable.  The agreements in this Section 10.04 shall survive the termination of the Aggregate Commitments and repayment of all other Obligations.  All amounts due under this Section 10.04 shall be paid within ten (10) Business Days of receipt by the Borrower of an invoice relating thereto setting forth such expenses in reasonable detail.  If any Loan Party fails to pay when due any costs, expenses or other amounts payable by it hereunder or under any Loan Document, such amount may be paid on behalf of such Loan Party by the Administrative Agent in its sole discretion.

 

SECTION 10.05.  Indemnification by the Borrower.  Whether or not the transactions contemplated hereby are consummated, the Borrower shall indemnify and hold harmless each Agent-Related Person, each L/C Issuer, each Lender and their respective Affiliates, directors, officers, employees, counsel, agents, trustees, investment advisors and attorneys-in-fact (collectively the “Indemnitees”) from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including Attorney Costs) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in connection with (a) the execution, delivery, enforcement, performance or administration of any Loan Document or Restructuring Transactions Documentation or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby, (b) any Revolving Credit Commitment, Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by an L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (c) any actual or alleged presence or release of Hazardous Materials on or from any property currently or formerly owned or operated by the Borrower, any Subsidiary or any other Loan Party, or any Environmental Liability related in any way to the Borrower, any Subsidiary or any other Loan Party, or (d) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim, investigation, litigation or proceeding) and regardless of whether any Indemnitee is a party thereto (all the foregoing, collectively, the “Indemnified Liabilities”), in all cases, whether or not caused by or arising, in whole or in part, out of the negligence of the Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements resulted from the gross negligence or willful misconduct of such Indemnitee or of any Affiliate, director, officer, employee, counsel, agent or attorney-in-fact of such Indemnitee, in each case as determined by a final, non-appealable judgment.  No Indemnitee shall be liable for any damages arising from the use by others of any information or other materials obtained through IntraLinks or other similar information transmission systems in connection with this Agreement, nor shall any Indemnitee or any Loan Party have any liability for any special, punitive, indirect or consequential damages relating to this Agreement or any other Loan Document or arising out of its activities in

 

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connection herewith or therewith (whether before or after the Closing Date).  In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 10.05 applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by any Loan Party, its directors, stockholders or creditors or an Indemnitee or any other Person, whether or not any Indemnitee is otherwise a party thereto and whether or not any of the transactions contemplated hereunder or under any of the other Loan Documents is consummated.  All amounts due under this Section 10.05 shall be paid within ten (10) Business Days after demand therefor; provided, however, that such Indemnitee shall promptly refund such amount to the extent that there is a final judicial or arbitral determination that such Indemnitee was not entitled to indemnification or contribution rights with respect to such payment pursuant to the express terms of this Section 10.05.  To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this Section 10.05 may be unenforceable in whole or in part because they are violative of any Law or public policy, the Borrower shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by any Indemnitee.  The agreements in this Section 10.05 shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

 

SECTION 10.06.  Payments Set Aside.  To the extent that any payment by or on behalf of the Borrower is made to any Agent, any L/C Issuer or any Lender, or any Agent, any L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by such Agent, such L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by any Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect.

 

SECTION 10.07.  Successors and Assigns.  (a) 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 the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of Section 10.07(b), (ii) by way of participation in accordance with the provisions of Section 10.07(e), (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 10.07(g) or (iv) to an SPC in accordance with the provisions of Section 10.07(h) (and 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 Section 10.07(e) and, to the extent expressly contemplated hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

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(b)           (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees (other than to Disqualified Institutions or a Defaulting Lender) (“Assignees”) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Revolving Credit Commitment and the Loans (including for purposes of this Section 10.07(b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld or delayed) of:

 

(A)          the Borrower; provided that no consent of the Borrower shall be required (1) for an assignment of any Revolving Credit Commitment to a Lender, an Affiliate of a Lender, an Approved Assignee, an Approved Fund or, if an Event of Default has occurred and is continuing, any Assignee or (2) for an assignment of any Term Loan (excluding therefrom, in each case, assignments to Disqualified Institutions); provided, further, that the Borrower shall be deemed to have consented to an assignment (other than an assignment to a Disqualified Institution) unless it shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received notice thereof;

 

(B)           the Administrative Agent; provided that no consent of the Administrative Agent shall be required for an assignment of a Term Loan to a Lender, an Affiliate of a Lender or an Approved Fund and no consent of the Administrative Agent shall be required for an assignment to an Agent or an Affiliate of an Agent;

 

(C)           in the case of any assignment of any Revolving Credit Commitment, each L/C Issuer at the time of such assignment; provided that no consent of the L/C Issuers shall be required for any assignment to an Agent or an Affiliate of an Agent; and

 

(D)          in the case of any assignment of any Revolving Credit Commitment, the Swing Line Lender; provided that no consent of the Swing Line Lender shall be required for any assignment to an Agent or an Affiliate of an Agent.

 

(ii)           Assignments shall be subject to the following additional conditions:

 

(A)          except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Revolving Credit Commitment or Loans of any Class, the amount of the Revolving Credit Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $1,000,000 unless each of the Borrower and the Administrative Agent otherwise consents; provided that (1) no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing and (2) such amounts shall be aggregated in respect of each Lender and its Affiliates or Approved Funds, if any;

 

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(B)           the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500;

 

(C)           the Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and

 

(D)          none of (i) the Holding Companies,(ii) Fertitta Entertainment, the Manager or any Affiliate thereof or any Fertitta Holder, (iii) any Person that, directly or indirectly, owns or has a contractual right to acquire more than 5.0% of the outstanding Equity Interests of any Holding Company or the Borrower (unless such Person shall not have any voting or consent rights as a Lender hereunder except that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Lender differently than other Lenders may require the consent of such Lender), (iv) the Borrower, (v) any Subsidiary or Affiliate of any Holding Company or the Borrower or (vi) any Person that has been denied an approval or a license, or otherwise found unsuitable, under applicable Gaming Laws in any jurisdiction shall be an Eligible Assignee; provided that no Person that is a Lender on the Closing Date or an Affiliate of such Lender shall cease to be treated as an Eligible Assignee by operation of preceding clause (iii) or (v) for purposes of this Agreement.

 

This paragraph (b) shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities on a non-pro rata basis and, for the avoidance of doubt, shall not prohibit Fertitta Entertainment or any Affiliate thereof from acquiring or holding any Exchange Securities.

 

(c)           Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 10.07(d), from and after the effective date specified in each Assignment and Assumption, the Eligible 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 3.01, 3.04, 3.05, 10.04 and 10.05 with respect to facts and circumstances occurring prior to the effective date of such assignment).  Upon request, and the surrender by the assigning Lender of its Note, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this clause (c) 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 Section 10.07(e).

 

(d)           The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent’s 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 Revolving Credit Commitments of, and principal amounts (and related

 

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interest amounts) of the Loans, L/C Obligations (specifying the Unreimbursed Amounts), L/C Borrowings and amounts due under Section 2.03, 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 Agents 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, any Agent and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(e)           Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person or a Disqualified Institution) (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 Revolving Credit Commitment and/or the Loans (including such Lender’s participations in L/C Obligations and/or Swing Line 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 Borrower, the Agents and the other 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 the other Loan Documents and to approve any amendment, modification or waiver of any provision of this Agreement or the other Loan Documents; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 10.01 that directly affects such Participant.  Subject to Section 10.07(f), the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 10.07(b).  To the extent permitted by applicable Law, each Participant also shall be entitled to the benefits of Section 10.09 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.13 as though it were a Lender.

 

(f)            The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01 and 3.04 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 10.07(b); provided, that (i) such Participant agrees to be subject to the provisions of Sections 3.01(e), 3.04(e) and 3.07 as if it were an assignee under Section 10.07(b) and (ii) in the case of a Participant claiming benefits under Section 3.01, such Participant complies with Section 10.15 (it being understood that the documentation required under Section 10.15 shall be delivered by the Participant to the selling Lender).

 

(g)           Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) 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.

 

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(h)           Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower (an “SPC”) the option to provide all or any part of any Loan that such Granting Lender would otherwise be obligated to make pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof.  Each party hereto hereby agrees that (i) neither the grant to any SPC nor the exercise by any SPC of such option shall increase the costs or expenses or otherwise increase or change the obligations of the Borrower under this Agreement (including its obligations under Section 3.01, 3.04 or 3.05), (ii) no SPC shall be liable for any indemnity or similar payment obligation under this Agreement for which a Lender would be liable, and (iii) the Granting Lender shall for all purposes, including the approval of any amendment, waiver or other modification of any provision of any Loan Document, remain the lender of record hereunder.  The making of a Loan by an SPC hereunder shall utilize the Revolving Credit Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender.  Notwithstanding anything to the contrary contained herein, any SPC may (i) with notice to, but without prior consent of the Borrower and the Administrative Agent and with the payment of a processing fee of $3,500, assign all or any portion of its right to receive payment with respect to any Loan to the Granting Lender and (ii) disclose on a confidential basis any non-public information relating to its funding of Loans to any rating agency, commercial paper dealer or provider of any surety or Guarantee or credit or liquidity enhancement to such SPC.

 

(i)            Notwithstanding anything to the contrary contained herein, (1) any Lender may in accordance with applicable Law create a security interest in all or any portion of the Loans owing to it and the Note, if any, held by it and (2) any Lender that is a Fund may create a security interest in all or any portion of the Loans owing to it and the Note, if any, held by it to the trustee for holders of obligations owed, or securities issued, by such Fund as security for such obligations or securities; provided that unless and until such trustee actually becomes a Lender in compliance with the other provisions of this Section 10.07, (i) no such pledge shall release the pledging Lender from any of its obligations under the Loan Documents and (ii) such trustee shall not be entitled to exercise any of the rights of a Lender under the Loan Documents even though such trustee may have acquired ownership rights with respect to the pledged interest through foreclosure or otherwise.

 

(j)            Notwithstanding anything to the contrary contained herein, any L/C Issuer or the Swing Line Lender may, upon thirty (30) days’ notice to the Borrower and the Lenders, resign as an L/C Issuer or the Swing Line Lender, respectively; provided that on or prior to the expiration of such 30-day period with respect to such resignation, the relevant L/C Issuer or the Swing Line Lender shall have identified a successor L/C Issuer or Swing Line Lender reasonably acceptable to the Borrower willing to accept its appointment as successor L/C Issuer or Swing Line Lender, as applicable.  In the event of any such resignation of an L/C Issuer or the Swing Line Lender, the Borrower shall be entitled to appoint from among the Lenders willing to accept such appointment a successor L/C Issuer or Swing Line Lender hereunder; provided that no failure by the Borrower to appoint any such successor shall affect the resignation of the relevant L/C Issuer or the Swing Line Lender, as the case may be, except

 

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as expressly provided above.  If an L/C Issuer resigns as an L/C Issuer, it shall retain all the rights and obligations of an L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as an L/C Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).  If the Swing Line Lender resigns as Swing Line Lender, it shall retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.04(c).

 

(k)           Notwithstanding anything to the contrary contained herein, no Assignee shall have recourse to the provisions of Sections 3.01 and 3.05 if the condition upon which such recourse is based was in existence at the time of the applicable assignment under this Section 10.07 (unless the assigning Lender was entitled to the payment of additional amounts or indemnification for Indemnified Taxes or Other Taxes under Section 3.01 or the payment of compensation under Section 3.05, in each case, at the time of such applicable assignment).

 

SECTION 10.08.  Confidentiality.  Each of the Agents and the Lenders agrees to use commercially reasonable efforts (equivalent to the efforts each such Person applies to maintain the confidentiality of its own confidential information) to maintain the confidentiality of the Information, except that Information may be disclosed (a) to its Affiliates and its and its Affiliates’ directors, officers, employees, trustees, investment advisors and agents, including accountants, legal counsel and other advisors (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) to the extent requested by any Governmental Authority; (c) to the extent required by applicable Laws or regulations or by any subpoena or similar legal process; (d) to any other party to this Agreement; (e) subject to an agreement containing provisions substantially the same as those of this Section 10.08 (or as may otherwise be reasonably acceptable to the Borrower), to any pledgee referred to in Section 10.07(g), counterparty to a Swap Contract, Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or Participant in, any of its rights or obligations under this Agreement; (f) with the written consent of the Borrower; (g) to the extent such Information becomes publicly available other than as a result of a breach of this Section 10.08; (h) to any Governmental Authority or examiner (including the National Association of Insurance Commissioners or any other similar organization) regulating any Lender or its Affiliates; (i) in connection with the exercise of (or in preparation to exercise) any remedies hereunder or under the other Loan Documents or any suit, action or proceeding relating to the enforcement of its rights hereunder or thereunder; or (j) to any rating agency when required by it (it being understood that, prior to any such disclosure, such rating agency shall undertake to preserve the confidentiality of any Information relating to the Loan Parties received by it from such Lender).  In addition, the Agents and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers to the Agents and the Lenders in connection with the administration and management of this Agreement, the other Loan Documents, the Revolving Credit Commitments, and the Credit Extensions.  For the purposes of this Section 10.08, “Information” means all information received from any Loan Party relating to any Loan Party or its business, other than any such information that is publicly available to any Agent or any Lender prior to disclosure by

 

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any Loan Party other than as a result of a breach of this Section 10.08; provided that, in the case of information received from a Loan Party after the date hereof, such information (i) is clearly identified at the time of delivery as confidential or (ii) is delivered pursuant to Section 6.01, 6.02 or 6.03.

 

SECTION 10.09.  Setoff.  (a) In addition to any rights and remedies of the Lenders provided by Law, upon the occurrence and during the continuance of any Event of Default, subject to the prior written consent of the Administrative Agent, the Administrative Agent, each Lender and their respective Affiliates is authorized at any time and from time to time, without prior notice to the Borrower or any other Loan Party, any such notice being waived by the Borrower (on its own behalf and on behalf of each Loan Party and its Subsidiaries) to the fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held by, and other Indebtedness at any time owing by, the Administrative Agent, such Lender or their respective Affiliates to or for the credit or the account of the respective Loan Parties and their Subsidiaries against any and all Obligations owing to the Administrative Agent, such Lender or their respective Affiliates hereunder or under any other Loan Document, now or hereafter existing, irrespective of whether or not the Administrative Agent or such Lender or Affiliate shall have made demand under this Agreement or any other Loan Document and although such Obligations may be contingent or unmatured or denominated in a currency different from that of the applicable deposit or Indebtedness; provided that any recovery by the Administrative Agent, any Lender or their respective Affiliates pursuant to its setoff rights under this Section 10.09 is subject to the provisions of Section 8.04.  Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such set off and application made by such Lender; provided, that the failure to give such notice shall not affect the validity of such setoff and application.  The rights of the Administrative Agent and each Lender under this Section 10.09 are in addition to other rights and remedies (including other rights of setoff) that the Administrative Agent and such Lender may have.

 

(b)           NOTWITHSTANDING THE FOREGOING SUBSECTION (a), AT ANY TIME THAT THE LOANS OR ANY OTHER OBLIGATION SHALL BE SECURED BY REAL PROPERTY LOCATED IN CALIFORNIA OR IN NEVADA, NO LENDER OR THE ADMINISTRATIVE AGENT SHALL EXERCISE A RIGHT OF SETOFF, LIEN OR COUNTERCLAIM OR TAKE ANY COURT OR ADMINISTRATIVE ACTION OR INSTITUTE ANY PROCEEDING TO ENFORCE ANY PROVISION OF THIS AGREEMENT OR ANY NOTE UNLESS IT IS TAKEN WITH THE CONSENT OF THE REQUIRED LENDERS OR, TO THE EXTENT REQUIRED BY SECTION 10.01 OF THIS AGREEMENT, ALL OF THE LENDERS, OR APPROVED IN WRITING BY THE ADMINISTRATIVE AGENT, IF SUCH SETOFF OR ACTION OR PROCEEDING WOULD OR MIGHT (PURSUANT TO SECTIONS 580a, 580b, 580d AND 726 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE, SECTION 2924 OF THE CALIFORNIA CIVIL CODE, IF APPLICABLE, SECTION 40.430 OF THE NEVADA REVISED STATUTES OR OTHERWISE) AFFECT OR IMPAIR THE VALIDITY, PRIORITY, OR ENFORCEABILITY OF THE LIENS GRANTED TO THE ADMINISTRATIVE AGENT PURSUANT TO THE COLLATERAL DOCUMENTS OR THE ENFORCEABILITY OF THE NOTES AND OTHER OBLIGATIONS HEREUNDER, AND ANY ATTEMPTED EXERCISE BY ANY LENDER OR THE ADMINISTRATIVE AGENT OF ANY SUCH RIGHT WITHOUT OBTAINING

 

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SUCH CONSENT OF THE REQUIRED LENDERS OR THE ADMINISTRATIVE AGENT SHALL BE NULL AND VOID.  THIS SUBSECTION (b) SHALL BE SOLELY FOR THE BENEFIT OF EACH OF THE LENDERS AND THE ADMINISTRATIVE AGENT HEREUNDER.

 

SECTION 10.10.  Interest Rate Limitation.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents (collectively, the “Charges”) shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If any Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the interest contracted for, charged, or received by an Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.  To the extent permitted by applicable Law, the interest and other Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section 10.10 shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Rate to the date of repayment, shall have been received by such Lender.  Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the manner provided in this Agreement, unless and until the rate of interest again exceeds the Maximum Rate, and at that time this Section 10.10 shall again apply.  In no event shall the total interest received by any Lender pursuant to the terms hereof exceed the amount that such Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Rate.  If the Maximum Rate is calculated pursuant to this Section 10.10, such interest shall be calculated at a daily rate equal to the Maximum Rate divided by the number of days in the year in which such calculation is made.  If, notwithstanding the provisions of this Section 10.10, a court of competent jurisdiction shall finally determine that a Lender has received interest hereunder in excess of the Maximum Rate, the Administrative Agent shall, to the extent permitted by applicable Law, promptly apply such excess in the order specified in this Agreement and thereafter shall refund any excess to the Borrower or as a court of competent jurisdiction may otherwise order.

 

SECTION 10.11.  Counterparts.  This Agreement and each other Loan Document may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery by telecopier of an executed counterpart of a signature page to this Agreement and each other Loan Document shall be effective as delivery of an original executed counterpart of this Agreement and such other Loan Document.  The Agents may also require that any such documents and signatures delivered by telecopier be confirmed by a manually signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by telecopier.

 

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SECTION 10.12.  Integration.  This Agreement, together with the other Loan Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter.  In the event of any conflict between the provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control; provided that the inclusion of supplemental rights or remedies in favor of the Agents or the Lenders in any other Loan Document shall not be deemed a conflict with this Agreement.  Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof.

 

SECTION 10.13.  Survival of Representations and Warranties.  All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by each Agent and each Lender, regardless of any investigation made by any Agent or any Lender or on their behalf and notwithstanding that any Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied (other than Obligations under Secured Hedge Agreements, Cash Management Obligations or contingent indemnification obligations, in any such case, not then due and payable) or any Letter of Credit or Revolving Credit Commitment shall remain outstanding.

 

SECTION 10.14.  Severability.  If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 10.15.  Tax Forms.  (a) (i)  Each Lender and each Agent that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code (each, a “Foreign Lender”) shall, to the extent it is legally entitled to do so and if not previously delivered, deliver to the Borrower and the Administrative Agent, on or prior to the date which is ten (10) Business Days after the Closing Date (or upon accepting an assignment of an interest herein), two duly signed, properly completed copies of either IRS Form W-8BEN or any successor thereto (relating to such Foreign Lender and entitling it to an exemption from, or reduction of, United States withholding tax on all payments to be made to such Foreign Lender by the Borrower or any other Loan Party pursuant to this Agreement or any other Loan Document) or IRS Form W-8ECI or any successor thereto (relating to all payments to be made to such Foreign Lender by the Borrower or any other Loan Party pursuant to this Agreement or any other Loan Document) or, in the case of a Foreign Lender claiming such an exemption under Section 881(c) of the Code, a certificate that establishes in writing to the Borrower and the Administrative Agent that such Foreign Lender is not (i) a “bank” as defined in Section 881(c)(3)(A) of the Code, (ii) a 10-percent stockholder within the meaning of Section 871(h)(3)(B) of the Code, or (iii) a controlled foreign corporation related to the Borrower within the meaning of Section 864(d) of the Code.  Thereafter and from time to time, each such Foreign Lender to the extent it is legally entitled to do so shall (A) promptly submit to the Borrower and the Administrative Agent such additional

 

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duly completed and signed copies of one or more of such forms or certificates (or such successor forms or certificates as shall be adopted from time to time by the relevant United States taxing authorities) as may then be available under then current United States Laws and regulations to avoid, or such evidence as is reasonably satisfactory to the Borrower and the Administrative Agent of any available exemption from, or reduction of, United States withholding taxes in respect of all payments to be made to such Foreign Lender by the Borrower or other Loan Party pursuant to this Agreement, or any other Loan Document, in each case, (1) on or before the date that any such form, certificate or other evidence expires or becomes obsolete, (2) after the occurrence of any event requiring a change in the most recent form, certificate or evidence previously delivered by it to the Borrower and the Administrative Agent and (3) from time to time thereafter if reasonably requested by the Borrower or the Administrative Agent, and (B) promptly notify the Borrower and the Administrative Agent of any change in circumstances which would modify or render invalid any claimed exemption or reduction.

 

(ii)           Each Foreign Lender, to the extent it does not act or ceases to act for its own account with respect to any portion of any sums paid or payable to such Foreign Lender under any of the Loan Documents (for example, in the case of a typical participation by such Foreign Lender), shall deliver to the Borrower and the Administrative Agent on the date when such Foreign Lender ceases to act for its own account with respect to any portion of any such sums paid or payable, and at such other times as may be necessary in the determination of the Borrower or the Administrative Agent (in either case, in the reasonable exercise of its discretion), (A) two duly signed completed copies of the forms or statements required to be provided by such Foreign Lender as set forth above, to establish the portion of any such sums paid or payable with respect to which such Foreign Lender acts for its own account that is not subject to United States withholding tax, and (B) two duly signed completed copies of IRS Form W-8IMY (or any successor thereto), together with any information such Foreign Lender chooses to transmit with such form, and any other certificate or statement of exemption required under the Code, to establish that such Foreign Lender is not acting for its own account with respect to a portion of any such sums payable to such Foreign Lender.

 

(iii)          The Borrower shall not be required to pay any additional amount or any indemnity payment under Section 3.01 to (A) any Foreign Lender if such Foreign Lender shall have failed to satisfy the foregoing provisions of this Section 10.15(a), or (B) any U.S. Lender if such U.S. Lender shall have failed to satisfy the provisions of Section 10.15(b); provided that (i) if such Lender shall have satisfied the requirement of this Section 10.15(a) or Section 10.15(b), as applicable, on the date such Lender became a Lender or ceased to act for its own account with respect to any payment under any of the Loan Documents, nothing in this Section 10.15(a) or Section 10.15(b) shall relieve the Borrower of its obligation to pay any amounts pursuant to Section 3.01 in the event that, as a result of any change in any applicable Law, treaty or governmental rule, regulation or order, or any change in the interpretation, administration or application thereof, such Lender is no longer properly entitled to deliver forms, certificates or other evidence at a subsequent date establishing the fact that such Lender or other Person for the account of which such Lender receives any sums payable under any of the Loan Documents is not subject to withholding or is subject to withholding at a reduced rate and 

 

193

 

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(ii) nothing in this Section 10.15(a) shall relieve the Borrower of its obligation to pay any amounts pursuant to Section 3.01 in the event that the requirements of Section 10.15(a)(ii) have not been satisfied if the Borrower is entitled, under applicable Law, to rely on any applicable forms and statements required to be provided under this Section 10.15 by the Foreign Lender that does not act or has ceased to act for its own account under any of the Loan Documents, including in the case of a typical participation.

 

(iv)          The Administrative Agent may deduct and withhold any taxes required by any Laws to be deducted and withheld from any payment under any of the Loan Documents.

 

(b)           Each Lender and each Agent that is a “United States person” within the meaning of Section 7701(a)(30) of the Code (each, a “U.S. Lender”) shall, if not previously delivered, deliver to the Administrative Agent and the Borrower two duly signed, properly completed copies of IRS Form W-9 on or prior to the Closing Date (or on or prior to the date it becomes a party to this Agreement), certifying that such U.S. Lender is entitled to an exemption from United States backup withholding tax, or any successor form.  If such U.S. Lender fails to deliver such forms, then the Administrative Agent may withhold from any payment to such U.S. Lender an amount equivalent to the applicable backup withholding tax imposed by the Code.

 

SECTION 10.16.  GOVERNING LAW.  (a) THIS AGREEMENT AND EACH OTHER LOAN DOCUMENT (EXCEPT AS OTHERWISE EXPRESSLY PROVIDED THEREIN) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)           ANY LEGAL ACTION OR PROCEEDING ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, EACH AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THOSE COURTS.  THE BORROWER, EACH AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO.

 

(c)           NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION 10.16, NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT THE AGENTS, THE L/C ISSUER OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR THE 

 

194

 

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OTHER LOAN DOCUMENTS AGAINST THE BORROWER OR ANY OF ITS SUBSIDIARIES OR ANY OF THEIR PROPERTIES OR ASSETS IN THE COURTS OF ANY JURISDICTION.

 

SECTION 10.17.  WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 10.17 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

SECTION 10.18.  Binding Effect.  This Agreement shall become effective when it shall have been executed by each party hereto and thereafter shall be binding upon and inure to the benefit of the Borrower, each Agent and each Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders.

 

SECTION 10.19.  Lender Action.  Each Lender agrees that it shall not take or institute any actions or proceedings, judicial or otherwise, for any right or remedy against any Loan Party or any other obligor under any of the Loan Documents or the Secured Hedge Agreements (including the exercise of any right of setoff, rights on account of any banker’s lien or similar claim or other rights of self-help), or institute any actions or proceedings, or otherwise commence any remedial procedures, with respect to any Collateral or any other property of any such Loan Party, without the prior written consent of the Administrative Agent.  The provisions of this Section 10.19 are for the sole benefit of the Lenders and shall not afford any right to, or constitute a defense available to, any Loan Party.

 

SECTION 10.20.  Acknowledgments.  The Borrower hereby acknowledges that:

 

(a)           it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents;

 

(b)           no Agent or Lender has any fiduciary relationship with or duty to the Borrower or any other Loan Party arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Agents and the Lenders, on one hand, and the Borrower and the other Loan Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

195

 

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(c)           no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Agents and the Lenders or among the Borrower, the other Loan Parties and the Lenders.

 

The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to Section 10.19, each Lender shall be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

 

SECTION 10.21.  USA PATRIOT Act.  Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Improvement and Reauthorization Act, Pub. L. 109-177 (signed into law March 9, 2009) (as amended from time to time, the “Patriot  Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act.

 

SECTION 10.22.  Gaming Authorities and Liquor Authorities.  This Agreement is subject to all applicable Gaming Laws and the Liquor Laws.  Without limiting the foregoing, the Agents and the Lenders acknowledge that rights, remedies and powers in or under this Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of the Gaming Laws and the Liquor Laws and only to the extent that any required approvals (including prior approvals) are obtained from the requisite Gaming Authorities and the Liquor Authorities.  Each of the Agents and Lenders agrees to cooperate with the applicable Gaming Authorities and Liquor Authorities in connection with the administration of their regulatory jurisdiction over the Borrower and the other Loan Parties, including, without limitation, to the extent not inconsistent with the internal policies of such Agent or Lender and any applicable legal or regulatory restrictions, the provision of such documents or other information as may be requested by any such Gaming Authorities or Liquor Authorities relating to the Agents, any of the Lenders or the Borrower or any other Loan Party, or the Loan Documents.  Notwithstanding any other provision of this Agreement, the Borrower expressly authorizes, and will cause each other Loan Party to authorize, each Agent and Lender to cooperate with the applicable Gaming Authorities as described above.

 

SECTION 10.23.  Certain Matters Affecting Lenders.  (a) If any Gaming Authority shall determine that any Lender does not meet suitability standards prescribed under applicable Gaming Laws (an “Unsuitable Lender”), the Administrative Agent shall have the right (but not the duty) to cause such Unsuitable Lender (and such Unsuitable Lender hereby irrevocably agrees) to assign its outstanding Loans and its Revolving Credit Commitments, if any, in full to one or more Eligible Assignees (each, a “Substitute Lender”) in accordance with the provisions of Section 10.07 and the Unsuitable Lender shall pay any fees payable thereunder in connection with such assignment; provided, (1) on the date of such assignment, the Substitute Lender shall pay to the Unsuitable Lender an amount equal to the sum of (A) an amount equal to the principal of, and all accrued interest on, all outstanding Loans of the Unsuitable Lender, (B) an amount equal to all Unreimbursed Amounts and participations that have been funded by such Unsuitable Lender, together with all then unpaid interest with respect thereto at such time and (C) an amount equal to all accrued, but theretofore unpaid fees owing to such Unsuitable 

 

196

 

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Lender; and (2) on the date of such assignment, the Borrower shall pay any amounts payable to such Unsuitable Lender pursuant to Article III or otherwise as if it were a prepayment.  The Borrower shall bear the costs and expenses of any Lender required by any Gaming Authorities to file an application for a finding of suitability in connection with the investigation of an application by the Borrower or the other Loan Parties for a license to operate a gaming establishment.

 

(b)           Notwithstanding the provisions of Section 10.23(a), if any Lender becomes a Unsuitable Lender, and if the Administrative Agent fails to find a Substitute Lender pursuant to Section 10.23(a) within any time period specified by the appropriate Gaming Authority for the withdrawal of an Unsuitable Lender (the “Withdrawal Period”), the Borrower shall immediately prepay in full the Outstanding Amount of all Term Loans and Revolving Credit Exposure of such Unsuitable Lender, together with all unpaid fees owing to such Unsuitable Lender pursuant to Section 2.09 and any amounts payable to such Unsuitable Lender pursuant to Article III or otherwise as if it were a prepayment and, in each case where applicable, with accrued interest thereon to the earlier of (x) the date of payment or (y) the last day of the applicable Withdrawal Period.  Upon the prepayment of all amounts owing to any Unsuitable Lender and the termination of such Unsuitable Lender’s Revolving Credit Commitments, if any (whether pursuant to Section 10.23(a) or 10.23(b)), such Unsuitable Lender shall no longer constitute a “Lender” for purposes hereof; provided, any rights of such Unsuitable Lender to indemnification hereunder shall survive as to such Unsuitable Lender.

 

SECTION 10.24.  [Reserved].

 

SECTION 10.25.  Qualified IPO.  Notwithstanding anything to the contrary in this Agreement, from and after the occurrence of a Qualified IPO by the Borrower, (i) the Holding Companies shall no longer constitute Loan Parties or be required to provide a guaranty of, or any collateral security for, the Obligations and (ii) all covenants and obligations under the Loan Documents applicable to the Holding Companies shall cease to apply with respect to the Holding Companies.

 

SECTION 10.26.  Tranche B-3 Securities Exchange.

 

(a)           The Administrative Agent, with the consent or at the direction of the Initial Tranche B-3 Term Lenders, shall be entitled to cause the exchange (such exchange, the “Tranche B-3 Securities Exchange”) of all or a portion of the outstanding Fixed Rate Tranche B-3 Term Loans for senior unsecured fixed rate notes of the Borrower (“Exchange Securities”) in accordance with this Section 10.26.  The Administrative Agent shall provide not less than five (5) Business Days’ prior written notice (the “Tranche B-3 Securities Exchange Notice”) to the Borrower of the Tranche B-3 Securities Exchange substantially in the form of Exhibit P hereto, which notice shall specify the proposed effective date for the Tranche B-3 Securities Exchange.  The Borrower shall, on the effective date set forth in such Tranche B-3 Securities Exchange Notice, issue to the Tranche B-3 Term Lenders, ratably according to their respective Pro Rata Shares, Exchange Securities in the aggregate outstanding principal amount set forth in the Tranche B-3 Securities Exchange Notice, in exchange for an equivalent principal balance of outstanding Fixed Rate Tranche B-3 Term Loans.  The Administrative Agent may, with the consent or at the direction of the Initial Tranche B-3 Term Lenders, revoke or rescind any 

 

197

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Tranche B-3 Securities Exchange Notice prior to the consummation of the Tranche B-3 Securities Exchange, or extend the proposed effective date of such exchange by a period not to exceed thirty (30) days; provided that, in the event of any such rescission or revocation, no subsequent Tranche B-3 Securities Exchange Notice may be delivered until at least thirty (30) days have passed since such rescission or revocation.  The Exchange Securities will be subject to the terms and conditions set forth on Exhibit Q and such additional terms and conditions as may be agreed by the Administrative Agent and the Borrower; provided, that:

 

(i)            the Exchange Securities shall be issued in book-entry form;

 

(ii)           the Borrower shall obtain CUSIP and ISIN numbers for the Exchange Securities;

 

(iii)          (A) the interest rate for the Exchange Securities shall be identical to the Tranche B-3 Fixed Interest Rate and (B) the duration fee and other premiums payable in connection with the Exchange Securities shall be identical to those payable in connection with the Tranche B-3 Term Loans;

 

(iv)          (A) the maturity date for the Exchange Securities shall be the same as the Tranche B-3 Maturity Date and (B) the scheduled principal payments for the Exchange Securities shall be the same as the scheduled principal payments for the Tranche B-3 Term Loans;

 

(v)           the Exchange Securities will be issued in a form suitable for resale under Rule 144A, with customary registration rights, in a secondary offering for which the Joint Lead Arrangers will designate the initial purchasers or placement agents in consultation with the Borrower (collectively, the “Investment Bank”), as the case may be;

 

(vi)          the Borrower will receive no proceeds from the sale of any Exchange Securities by the Tranche B-3 Term Lenders in any secondary offering; any gain or loss on the resale of such Exchange Securities will be for the account of the Tranche B-3 Term Lenders and not for the account of the Borrower;

 

(vii)         the Exchange Securities will be governed by an Indenture with a trustee reasonably acceptable to both the Borrower and the Initial Tranche B-3 Term Lenders provided, that in the absence of agreement the Borrower agrees that either Wells Fargo Bank, N.A., or Law Debenture Trust Company of NY is reasonably acceptable to it;

 

(viii)        the covenants described on Exhibit Q or otherwise agreed by the Administrative Agent and the Borrower, which covenants will not, taken as a whole, be more onerous to the Borrower and the Restricted Subsidiaries than the terms and conditions of the Tranche B-3 Term Loans;

 

(ix)           only one Tranche B-3 Securities Exchange shall be permitted during the term of this Agreement; and

 

(x)            the effective date of a Tranche B-3 Securities Exchange shall be on or prior to December 31, 2011.

 

198

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

The Administrative Agent, in its reasonable discretion after consultation with the Borrower and the Initial Tranche B-3 Term Lenders, shall determine whether, and in what amount, the Fixed Rate Tranche B-3 Term Loans shall be exchanged for Exchange Securities and will be under no obligation to make a Tranche B-3 Securities Exchange.  The Borrower, at its cost and expense, shall, and shall cause each other Loan Party to, cooperate with all reasonable requests of the Administrative Agent in order to effectuate the Tranche B-3 Securities Exchange in accordance with the foregoing provisions of this Section 10.26 and shall execute and deliver such documents as shall reasonably be required by the Administrative Agent in order to effectuate such exchange in accordance with this Section 10.26; provided, that the Borrower shall not be obligated to reimburse the Administrative Agent or the Lenders for their respective costs and expenses incurred in connection with a Tranche B-3 Securities Exchange and nothing in this sentence shall obligate the Borrower or any Loan Party to agree to any additional term or condition with respect to the Loans or the Exchange Securities.  In the event any Loan Party fails to execute and deliver such documents to the Administrative Agent within ten (10) Business Days following such request by the Administrative Agent, the Borrower, on behalf of itself and each other Loan Party, hereby absolutely and irrevocably appoints the Administrative Agent as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents reasonably necessary to effect such transactions, the Borrower ratifying all that such attorney shall do by virtue thereof.

 

(b)           Upon the consummation of the Tranche B-3 Securities Exchange, the Borrower shall pay to the Administrative Agent, for the account of the Tranche B-3 Term Lenders, in immediately available funds, all accrued and unpaid interest on the Fixed Rate Tranche B-3 Term Loans subject to the Tranche B-3 Securities Exchange.

 

SECTION 10.27.  The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Affiliates, directors, officers, employees, counsel, agents, trustees, investment advisors and attorneys-in-fact (collectively, the “Agent Parties”) have any liability to the Holding Companies, the Borrower, any Lender, any L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to the Holding Companies, the Borrower, any Lender, any L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

199

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

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

 

	
 
    	
STATION   CASINOS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas M. Friel
    
	
 
    	
Name:
    	
Thomas   M. Friel
    
	
 
    	
Title:
    	
Executive   Vice President
    

 

Signature Page to

Credit Agreement

(Station Casinos LLC)

 

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

	
 
    	
DEUTSCHE   BANK AG CAYMAN ISLANDS BRANCH, as Administrative Agent,   Swing Line Lender and a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John K. Beacham
    
	
 
    	
Name:
    	
John   K. Beacham
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert W. Pettinato
    
	
 
    	
Name:
    	
Robert   W. Pettinato
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DEUTSCHE   BANK AG NEW YORK BRANCH, as L/C Issuer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John K. Beacham
    
	
 
    	
Name:
    	
John   K. Beacham
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert W. Pettinato
    
	
 
    	
Name:
    	
Robert   W. Pettinato
    
	
 
    	
Title:
    	
Managing   Director
    

 

Signature Page to

Credit Agreement

(Station Casinos LLC)

 

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY STATION CASINOS, LLC WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

	
 
    	
JPMORGAN   CHASE BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph E. Geoghan
    
	
 
    	
Name:
    	
Joseph   E. Geoghan
    
	
 
    	
Title:
    	
Managing   Director
    

 

Signature Page to

Credit Agreement

(Station Casinos LLC)

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