Document:

Exhibit 4.2

 

EXECUTION VERSION

 

SL GREEN OPERATING PARTNERSHIP, L.P.

 

as Issuer

 

SL GREEN REALTY CORP.

 

RECKSON OPERATING PARTNERSHIP, L.P.

 

as Guarantors

 

THE BANK OF NEW YORK MELLON,

 

as Trustee

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of October 5, 2017
  
 to Indenture Dated as of October 5, 2017

 

$500,000,000 3.250% Senior Notes due 2022

 

 

TABLE OF CONTENTS

	
 
    	
 
    	
Page
    
	
ARTICLE I DEFINITIONS
    	
2
    
	
 
    	
 
    
	
Section 1.1
    	
Definitions of Terms
    	
2
    
	
Section 1.2
    	
Section References
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE II THE NOTES
    	
5
    
	
 
    	
 
    
	
Section 2.1
    	
Designation of Notes   and Establishment of Form
    	
5
    
	
Section 2.2
    	
Ranking
    	
5
    
	
Section 2.3
    	
Amount
    	
5
    
	
Section 2.4
    	
Stated Maturity
    	
5
    
	
Section 2.5
    	
Form, Denomination and   Currency
    	
5
    
	
Section 2.6
    	
Designation of   Depositary
    	
5
    
	
Section 2.7
    	
No Sinking Fund
    	
6
    
	
Section 2.8
    	
Exchange and   Registration on Transfer
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE III DISCHARGE;   DEFEASANCE AND COVENANT DEFEASANCE
    	
6
    
	
 
    	
 
    
	
Section 3.1
    	
Applicability of Article
    	
6
    
	
Section 3.2
    	
Defeasance and Covenant   Defeasance
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE IV EVENTS OF   DEFAULT
    	
8
    
	
 
    	
 
    
	
Section 4.1
    	
Applicability of   Article
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE V COVENANTS
    	
10
    
	
 
    	
 
    
	
Section 5.1
    	
Limitations on   Incurrence of Debt
    	
10
    
	
Section 5.2
    	
Maintenance of Total   Unencumbered Assets
    	
11
    
	
Section 5.3
    	
Provision of Financial   Information
    	
11
    
	
Section 5.4
    	
Merger, Consolidation   and Sale of Assets
    	
12
    
	
Section 5.5
    	
Waiver of Certain   Covenants
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE VI REDEMPTION AND   REPURCHASES
    	
13
    
	
 
    	
 
    
	
Section 6.1
    	
Applicability of Article
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE VII SUPPLEMENTAL   INDENTURES
    	
13
    
	
 
    	
 
    
	
Section 7.1
    	
Without Consent of   Holders
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII GUARANTEES
    	
15
    
	
 
    	
 
    
	
Section 8.1
    	
Guarantee
    	
15
    
	
Section 8.2
    	
Limitation on Guarantor   Liability
    	
15
    
	
Section 8.3
    	
Execution and Delivery   of Guarantee
    	
15
    
	
Section 8.4
    	
Release of Guarantors
    	
16
    
				

 

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ARTICLE IX MISCELLANEOUS
    	
16
    
	
 
    	
 
    
	
Section 9.1
    	
The Trustee
    	
16
    
	
 
    	
 
    	
 
    
	
Annex   A: Form of Global Note
    	
 
    

 

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FIRST SUPPLEMENTAL INDENTURE, dated as of October 5, 2017 (this “First Supplemental Indenture”), among SL GREEN OPERATING PARTNERSHIP, L.P., a limited partnership duly organized and existing under the laws of the State of Delaware (hereinafter called the “Issuer”), SL GREEN REALTY CORP., a corporation duly organized and existing under the laws of the State of Maryland (hereinafter called “SL Green”), and RECKSON OPERATING PARTNERSHIP, L.P., a limited partnership duly organized and existing under the laws of the State of Delaware (hereinafter called the “Operating Partnership,” and together with SL Green, each a “Guarantor” and together the “Guarantors”) each having its principal executive office located at 420 Lexington Avenue, New York, NY 10170, and The Bank of New York Mellon (hereinafter called the “Trustee”), having its Corporate Trust Office located at 500 Ross Street, 12th Floor, Pittsburgh, PA 15262, supplementing the Base Indenture, dated as of October 5, 2017, between the Issuer and the Trustee (the “Base Indenture”).

 

RECITALS

 

WHEREAS, the Base Indenture provides for the issuance of unsecured debentures, notes, bonds or other evidences of indebtedness (the “Securities” as defined in the Base Indenture) in an unlimited aggregate principal amount to be issued from time to time in one or more series;

 

WHEREAS, Section 14.01(r) of the Base Indenture provides that the Issuer and the Trustee may at any time and from time to time enter into one or more indentures supplemental thereto, to establish the form and terms of Securities of any series as permitted by Section 3.01 thereof;

 

WHEREAS, Section 3.01(m) of the Base Indenture provides that the guarantors and the terms of the guarantees shall be set forth in one of more indentures supplemental thereto, prior to the issuance of Securities of any series;

 

WHEREAS, for lawful partnership purposes, the Issuer duly authorized the issuance of 3.250% Senior Notes due 2022 (the “Notes”), in an aggregate principal amount of $500,000,000, which will be fully and unconditionally guaranteed on a senior unsecured basis by the Guarantors (each a “Guarantee,” and collectively, the “Guarantees”);

 

WHEREAS, the Issuer and Guarantors propose by this First Supplemental Indenture to supplement and amend in certain respects the Base Indenture insofar as it will apply only to the Notes and Guarantees (and not to any other series of Securities) to provide for the form, terms and other provisions of the Notes and Guarantees as a separate series of Securities to be issued under the Indenture; and

 

WHEREAS, all things necessary to make this Indenture a valid and legally binding agreement of the Issuer and Guarantors, in accordance with its terms, have been done.

 

NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

 

That, in consideration of the premises and the purchase of the Notes by the Holders thereof for the equal and proportionate benefit of all of the present and future Holders of the Notes, each party agrees and covenants as follows:

 

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ARTICLE I

 

DEFINITIONS

 

Section 1.1                                    Definitions of Terms.

 

All capitalized terms contained in this First Supplemental Indenture shall, except as specifically provided for herein and except as the context may otherwise require, have the meanings given to such terms in the Base Indenture.  In the event of any inconsistency between the Base Indenture and this First Supplemental Indenture, this First Supplemental Indenture shall govern.

 

Section 1.01 of the Base Indenture is amended to add or replace, as the case may be, the following definitions in correct alphabetical order:

 

“Annual Service Charge” as of any date means the amount which is expensed in any 12-month period for interest on Indebtedness.

 

“Bankruptcy Law” means Title 11, United States Code, or any similar federal, state or non-U.S. law for the relief of debtors.

 

“Base Indenture” has the meaning set forth in the preamble hereto.

 

“Business Day” with respect to any Place of Payment or in The City of New York, means any day other than a Saturday, Sunday or other day on which banking institutions in such Place of Payment or in The City of New York are authorized or obligated by law, regulation or executive order to close.

 

“Consolidated Income Available for Debt Service” for any period means Consolidated Net Income of the Issuer and its Subsidiaries (i) plus amounts which have been deducted for (a) interest on Indebtedness of the Issuer and its Subsidiaries, (b) provision for taxes of the Issuer and its Subsidiaries based on income, (c) amortization of debt discount, (d) depreciation and amortization, (e) the effect of any noncash charge resulting from a change in accounting principles in determining Consolidated Net Income for such period, (f) amortization of deferred charges, and (g) provisions for or realized losses on properties and (ii) less amounts which have been included for gains on properties.

 

“Consolidated Net Income” for any period means the amount of consolidated net income (or loss) of the Issuer and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.

 

“Event of Default” has the meaning specified in Section 4.1.

 

“First Supplemental Indenture” has the meaning set forth in the preamble hereto.

 

“Global Note” means a Note in registered global form without interest coupons.

 

“Government Obligations” means securities which are (i) direct obligations of the United States of America, for the payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such Government Obligation or a specific payment of interest on or principal of any such

 

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Government Obligation held by the custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of the depository receipt from any amount received by such custodian in respect of the Government Obligation or the specific payment of interest on or principal of Government Obligation evidenced by such depository receipt.

 

“Guarantee” means the guarantee given by the relevant Guarantor in respect of the Notes pursuant to this First Supplemental Indenture.

 

“Guarantors” has the meaning set forth in the preamble hereto.

 

“Holder” or “Holders” means a Person or Persons in whose name a Note is registered on the Registrar’s books.

 

“Indebtedness” means any indebtedness, whether or not contingent, in respect of (i) borrowed money evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on property, (iii) the reimbursement obligations, contingent or otherwise, in connection with any letters of credit actually issued or amounts representing the balance deferred and unpaid of the purchase price of any property except any such balance that constitutes an accrued expense or trade payable or (iv) any lease of property as lessee which would be reflected on a balance sheet as a capitalized lease in accordance with GAAP, in the case of items of indebtedness under (i) through (iii) above to the extent that any such items (other than letters of credit) would appear as a liability on a balance sheet in accordance with GAAP, and also includes, to the extent not otherwise included, any obligation to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), indebtedness of another Person.

 

“Indenture” means, collectively, the Base Indenture and the First Supplemental Indenture, as the same may be amended or supplemented with respect to the Notes from time to time pursuant to the terms of the Indenture, and including the provisions of the Trust Indenture Act that are automatically deemed to be a part of this Indenture by operation of the Trust Indenture Act.

 

“Initial Notes” means the Notes issued on October 5, 2017 and any Notes issued in replacement thereof.

 

“Interest Payment Date” means April 15 and October 15 of each year, commencing April 15, 2018.

 

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person.  A “Capital Lease” is a lease to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

 

“Notes” means the 3.250% Senior Notes due 2022 of the Issuer.

 

“Permitted Debt” means Indebtedness of the Issuer or any Subsidiary owing to any Subsidiary or the Issuer; provided that any such Indebtedness is made pursuant to an intercompany note and is subordinated in right of payment to the Notes; provided further that any disposition, pledge or transfer of any such Indebtedness to a Person (other than the Issuer or another Subsidiary) shall be deemed to be an

 

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incurrence of such Indebtedness by the Issuer or a Subsidiary, as the case may be, and not Permitted Debt as defined herein.

 

“Record Date” means, with respect to each Interest Payment Date, the April 1 or October 1, as the case may be, immediately preceding such Interest Payment Date.

 

“Redemption Date”, with respect to the Notes or portion thereof to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture or the Notes.

 

“Total Assets” as of any date means the sum of (i) the Undepreciated Real Estate Assets, (ii) all other assets of the Issuer, and of its Subsidiaries determined at the applicable proportionate interest of the Issuer in each such Subsidiary, determined in accordance with GAAP (but excluding intangibles and accounts receivable) and (iii) the cost of any property of the Issuer, or any Subsidiary thereof, in which the Issuer, or such Subsidiary, as the case may be, has a firm, non-contingent purchase obligation.

 

“Total Unencumbered Assets” means the sum of (i) those Undepreciated Real Estate Assets not subject to a Lien on a consolidated basis, (ii) all other assets of the Issuer, and of its Subsidiaries determined at the applicable proportionate interest of the Issuer in each such Subsidiary, which are not subject to a Lien determined in accordance with GAAP (but excluding intangibles and accounts receivable) and (iii) the cost of any property of the Issuer, or any Subsidiary thereof, in which the Issuer, or such Subsidiary, as the case may be, has a firm, non-contingent purchase obligation and which is not subject to a Lien; provided, however, that, all investments in any Person that is not consolidated with the Issuer for financial reporting purposes in accordance with GAAP shall be excluded from Total Unencumbered Assets.

 

“Undepreciated Real Estate Assets” means as of any date the cost (original cost plus capital improvements) of real estate assets of the Issuer and its Subsidiaries on such date, before depreciation and amortization, determined on a consolidated basis in accordance with GAAP.

 

“Unsecured Debt” means Indebtedness of the Issuer or any Subsidiary which is not secured by any mortgage, lien, charge, pledge or security interest of any kind upon any of the properties owned by the Issuer or any of its Subsidiaries.

 

Section 1.2                                    Section References.

 

Section references contained in this First Supplemental Indenture are to sections in this First Supplemental Indenture unless otherwise indicated or the context otherwise requires.

 

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ARTICLE II

 

THE NOTES

 

Section 2.1                                    Designation of Notes and Establishment of Form.  There shall be a series of Securities designated “3.250% Senior Notes due 2022” of the Issuer (referred to herein as the “Notes”).  The form thereof shall be substantially as set forth in Annex A hereto, which is incorporated into and shall be deemed a part of this First Supplemental Indenture, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined by the officers of the Issuer executing such Notes, as evidenced by their execution of the Notes.

 

Section 2.2                                    Ranking.  The Notes shall constitute senior, unsecured obligations of the Issuer and each Guarantee shall constitute a senior, unsecured obligation of each Guarantor, in each case ranking equal in right of payment to all of the existing and future unsecured and unsubordinated indebtedness of the Issuer and Guarantors.  Article XV of the Base Indenture shall not apply to the Notes.

 

Section 2.3                                    Amount.  The Trustee shall authenticate and deliver Notes for original issue in an aggregate principal amount of $500,000,000 upon an Order for the authentication and delivery of Notes, without any further action by the Issuer, subject to Section 3.03 of the Base Indenture. Under a Board Resolution, Officer’s Certificate pursuant to Board Resolutions or a Supplemental Indenture, the Issuer may from time to time, without the consent of the Holders of Notes, issue additional Notes (in any such case “Additional Notes”) having the same ranking and the same interest rate, maturity and other terms as the Notes. Any Additional Notes and the Initial Notes will constitute a single series under the Indenture and all references to the relevant Notes herein shall include the Additional Notes unless the context otherwise requires.

 

Section 2.4                                    Stated Maturity.  The date on which the principal of the Notes is due and payable, unless earlier accelerated or repurchased pursuant to the Indenture, shall be October 15, 2022 (the “Stated Maturity”).  On the Stated Maturity, each Holder shall be entitled to receive on such date $1,000 in cash for each $1,000 principal amount per Note, together with accrued and unpaid interest to, but not including, the Stated Maturity.

 

Section 2.5                                    Form, Denomination and Currency.  The Notes shall initially be issued in global form as Global Notes (substantially in the form of Annex A hereto). Each Global Note shall represent such aggregate principal amount of Outstanding Notes as shall be specified therein and the aggregate principal amount of Outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges or purchases of such Notes.  Each Note shall be issuable in denominations of $2,000 and any integral multiple of $1,000 in excess thereof; provided, however, that Notes may from time to time be issuable in denominations of less than $1,000 if, and solely to the extent that, reliance on this proviso is necessary to accommodate book-entry positions that have been created in denominations of less than $1,000 by the Depositary. All obligations of the Issuer and the Guarantors in respect of principal, interest or any other amount owing upon the Notes shall be payable in U.S. Dollars.

 

Section 2.6                                    Designation of Depositary.  Initially, the Depositary for the Notes will be The Depository Trust Company.  The Notes, in the form of Global Notes, will be registered in the name of the Depositary or its nominee, Cede & Co., and delivered by the Trustee to the Depositary or a custodian appointed by the Depositary for crediting to the accounts of its participants.  The transfer and exchange of beneficial interests in any such Global Note shall be effected through the Depositary in accordance with

 

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the Indenture and the rules and procedures of the Depositary to the extent applicable to such transfer or exchange.

 

Section 2.7                                    No Sinking Fund.  There shall be no sinking fund for the retirement of the Notes. Article V of the Base Indenture shall not apply to the Notes.

 

Section 2.8                                    Exchange and Registration on Transfer.  Notwithstanding anything in Section 3.06 of the Base Indenture to the contrary, (a) all Notes presented or surrendered for registration or transfer shall (if so required by the Issuer or the Registrar) be duly endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Issuer, and the Notes shall be duly executed by the Holder thereof or his attorney duly authorized in writing and (b) neither the Issuer nor the Trustee nor any Registrar shall be required to exchange, issue or register the transfer of any Notes or portions thereof tendered for registration or transfer (and not withdrawn) pursuant to this Indenture.

 

ARTICLE III

 

DISCHARGE; DEFEASANCE AND COVENANT DEFEASANCE

 

Section 3.1                                    Applicability of Article.  Article XII of the Base Indenture shall apply to the Notes.

 

Section 3.2                                    Defeasance and Covenant Defeasance.

 

With respect to the Notes only (and not any other series of Securities issued pursuant to the Base Indenture), Section 12.03 of the Base Indenture is replaced in its entirety with the following:

 

(1)                                 The Issuer may at its option by Board Resolution, at any time, with respect to the Notes, elect to have Section 3.2(2) or Section 3.2(3) be applied to such Outstanding Notes upon compliance with the conditions set forth below in this Section 3.2.

 

(2)                                 Upon the Issuer’s exercise of the option provided for in this Section 3.2(2) with respect to the Notes and the Guarantees, the Issuer and the Guarantors shall be deemed to have been discharged from their obligations with respect to such Outstanding Notes and Guarantees on the date the conditions set forth in clause (4) of this Section 3.2 are satisfied (hereinafter, “defeasance”).  For this purpose, such defeasance means that the Issuer shall be deemed to have paid and discharged the entire Indebtedness represented by such Outstanding Notes, which shall thereafter be deemed to be “Outstanding” only for the purposes of clause (5) of this Section 3.2 and the other Sections of this Indenture referred to in clauses (i) and (ii) below, and to have satisfied all of its other obligations under such Notes and this Indenture (and the Trustee, at the expense of the Issuer, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder: (i) the rights of Holders of such Outstanding Notes, solely from the fund described in clause (4) of this Section 3.2 and as more fully set forth in such Section, payments in respect of the principal of (and premium, if any) and interest, if any, on such Notes when such payments are due, and any rights of such Holder to exchange such Notes into other securities, (ii) the obligations of the Issuer and the Trustee with respect to such Notes under Sections 3.01, 3.06, 3.07, 6.01 and 6.03 of the Base Indenture, (iii) the rights, powers, trusts, duties and immunities of the Trustee hereunder and under the Base Indenture and (iv) this Section 3.2.  The Issuer may exercise its option under this Section 3.2(2) notwithstanding the prior exercise of its option under clause (3) of this Section 3.2 with respect to such Notes.

 

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(3)                                 Upon the Issuer’s exercise of the option provided for in this Section 3.2(3) with respect to the Notes and the Guarantees, the Issuer and the Guarantors shall be released from their obligations under Sections 5.1 to 5.3, inclusive, and Section 6.05 to 6.08 of the Base Indenture, inclusive, with respect to such Outstanding Notes and Guarantees, on and after the date the conditions set forth in clause (4) of this Section 3.2 are satisfied (hereinafter, “covenant defeasance”), and such Notes shall thereafter be deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with any such covenant, but shall continue to be deemed “Outstanding” for all other purposes hereunder.  For this purpose, such covenant defeasance means that, with respect to such Outstanding Notes and Guarantees, the Issuer and the Guarantors may omit to comply with, and shall have no liability in respect of, any term, condition or limitation set forth in any such Section or such other covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such Section or such other covenant or by reason of reference in any such Section or such other covenant to any other provision herein or in any other document and such omission to comply shall not constitute a default or an Event of Default under Section 4.1(3) or otherwise, as the case may be, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby.

 

(4)                                 The following shall be the conditions to application of clause (2) or (3) of this Section 3.2 to any Outstanding Notes and Guarantees (as applicable) in respect thereof:

 

(a)                                 The Issuer shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee satisfying the requirements of Section 11.04 of the Base Indenture who shall agree to comply with the provisions of this Section 3.2 applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Notes, (1) an amount in Dollars, or (2) Government Obligations, which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment of principal of (and premium, if any) and interest, if any, on such Notes, money in an amount, or (3) a combination of (1) and (2), in any case, in an amount, sufficient, without consideration of any reinvestment of such principal and interest, and in the case of (2) and (3), in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge, the principal of (and premium, if any) and interest, if any, on such Outstanding Notes on the Stated Maturity of such principal or interest.

 

(b)                                 Such defeasance or covenant defeasance shall not result in a breach or violation of, or constitute a default under, this Indenture or any other material agreement or instrument to which the Issuer or the Guarantors are a party or by which any of them is bound.

 

(c)                                  No Event of Default or event which with notice or lapse of time or both would become an Event of Default with respect to such Notes shall have occurred and be continuing on the date of such deposit (other than a default resulting from the borrowing of funds and the grant of the related liens to be applied to such deposit).

 

(d)                                 In the case of an election under clause (2) of this Section 3.2, the Issuer shall have delivered to the Trustee an Opinion of Counsel stating that (i) the Issuer has received from the Internal Revenue Service a letter ruling, or there has been published by

 

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the Internal Revenue Service a Revenue Ruling, or (ii) there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the beneficial owners of such Outstanding Notes will not recognize income, gain or loss for Federal income tax purposes as a result of such defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred.

 

(e)                                  In the case of an election under clause (3) of this Section 3.2, the Issuer shall have delivered to the Trustee an Opinion of Counsel to the effect that the beneficial owners of such Outstanding Notes will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such covenant defeasance had not occurred.

 

(f)                                   The Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent to the defeasance or covenant defeasance under clause (2) or (3) of this Section 3.2 (as the case may be) and clause (4) of this Section 3.2 have been complied with.

 

(5)                                 Subject to the provisions of the last paragraph of Section 12.06 of the Base Indenture, all money and Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 3.2(5), the “Trustee”) pursuant to clause (4) of Section 3.2 in respect of any Outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuer or a Guarantor acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal (and premium, if any) and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge, imposed on or assessed against the Government Obligations deposited pursuant to this Section 3.2 or the principal or interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of such Outstanding Notes.

 

Anything in this Section 3.2 to the contrary notwithstanding, the Trustee shall deliver or pay to the Issuer from time to time upon request any money or Government Obligations (or other property and any proceeds therefrom) held by it as provided in clause (4) of this Section 3.2 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect a defeasance or covenant defeasance, as applicable, in accordance with this Section 3.2.

 

ARTICLE IV

 

EVENTS OF DEFAULT

 

Section 4.1                                    Applicability of Article.

 

(1)                                 With respect to the Notes only (and not any other series of Securities issued pursuant to the Base Indenture), Section 7.01 of the Base Indenture is replaced in its entirety with the following:

 

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“Except where otherwise indicated by the context or where the term is otherwise defined for a specific purpose, the term “Event of Default,” wherever used herein with respect to the Notes, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(a)                                 default in the payment of any interest on the Notes when such interest becomes due and payable, and continuance of such default for a period of 30 days; or

 

(b)                                 default in the payment of the principal of or any premium on the Notes when it becomes due and payable at its Maturity; or

 

(c)                                  [reserved]

 

(d)                                 default in the performance, or breach, of any covenant or warranty of the Issuer or a Guarantor in this Indenture or the Notes, and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Issuer or a Guarantor by the Trustee or to the Issuer and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Notes, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(e)                                  the entry by a court having competent jurisdiction of:

 

(1)                                 a decree or order for relief in respect of the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor in an involuntary proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or

 

(2)                                 a decree or order adjudging the Issuer, a Guarantor or any Significant Subsidiary thereof to be insolvent, or approving a petition seeking reorganization, arrangement, adjustment or composition of the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or

 

(3)                                 a final and non-appealable order appointing a custodian, receiver, liquidator, assignee, trustee or other similar official of the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor or of any substantial part of the property of the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor, as the case may be, or ordering the winding up or liquidation of the affairs of the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor; or

 

(f)                                   the commencement by the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor of a voluntary proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law or of a voluntary proceeding seeking to be adjudicated insolvent or the consent by the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor to the entry of a decree or order for relief in an involuntary proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law or to the commencement of any insolvency proceedings against it, or the filing by the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor of a petition or answer or consent seeking reorganization or relief under any applicable law, or the consent by the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor to the filing of such petition or to the

 

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appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee or similar official of the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor or any substantial part of the property of the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor or the making by the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor of an assignment for the benefit of creditors, or the taking of corporate action by the Issuer, a Guarantor or any Significant Subsidiary of the Issuer or a Guarantor in furtherance of any such action; or

 

(g)                                  the Issuer, a Guarantor or any Subsidiary of the Issuer in which the Issuer has invested at least $50,000,000 in capital or any entity in which the Issuer is the general partner shall fail to pay any principal of, premium or interest on or any other amount payable in respect of, any recourse Indebtedness that is outstanding in a principal or notional amount of at least $50,000,000 (or the equivalent thereof in one or more other currencies), either individually or in the aggregate (but excluding Indebtedness outstanding hereunder), of the Issuer and its consolidated Subsidiaries, taken as a whole, when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in any agreement or instrument relating to such Indebtedness, or any other event shall occur or condition shall exist under any agreement or instrument evidencing, securing or otherwise relating to such Indebtedness and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Indebtedness or otherwise to cause, or to permit the holder or holders thereof ( or a trustee or agent on behalf of such holders) to cause such Indebtedness to mature prior to its stated maturity;

 

provided, however, that no event described in clause (d) or (other than with respect to a payment default) (g) above shall constitute an Event of Default hereunder until a written notice of any such event is received by the Trustee at the Corporate Trust Office, and such notice refers to the facts underlying such event, the Notes generally, the Issuer, the applicable Guarantor and the Indenture.”

 

ARTICLE V

 

COVENANTS

 

Section 5.1                                    Limitations on Incurrence of Debt.

 

(a)                                 The Issuer will not, and will not permit any Subsidiary to, incur any Indebtedness, other than Permitted Debt, if, immediately after giving effect to the incurrence of such additional Indebtedness, the aggregate principal amount of all outstanding Indebtedness of the Issuer, and of its Subsidiaries determined at the applicable proportionate interest of the Issuer in each such Subsidiary, determined in accordance with GAAP, is greater than 60% of the sum of (i) the Total Assets as of the end of the calendar quarter covered in the Issuer’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the SEC prior to the incurrence of such additional Indebtedness or, if the Issuer is not then subject to the reporting requirements of the Exchange Act, as of its most recent calendar quarter and (ii) any increase in the Total Assets since the end of such quarter, including, without limitation, any increase in Total Assets resulting from the incurrence of such additional Indebtedness (the Total Assets adjusted by such increase are referred to as the “Adjusted Total Assets”).

 

(b)                                 In addition to the limitation set forth in subsection (a) of this Section 5.1, the Issuer will not, and will not permit any Subsidiary to, incur any Indebtedness, other than Permitted Debt, if, for the period consisting of the four consecutive fiscal quarters most recently ended prior to the date on

 

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which such additional Indebtedness is to be incurred, the ratio of Consolidated Income Available for Debt Service to the Annual Service Charge shall have been less than 1.5 to 1, on a pro forma basis after giving effect to the incurrence of such Indebtedness and to the application of the proceeds therefrom, and calculated on the assumption that (i) such Indebtedness and any other Indebtedness incurred by the Issuer or its Subsidiaries since the first day of such four-quarter period and the application of the proceeds therefrom, including to refinance other Indebtedness, had occurred at the beginning of such period, (ii) the repayment or retirement of any other Indebtedness by the Issuer or its Subsidiaries since the first day of such four-quarter period had been incurred, repaid or retained at the beginning of such period (except that, in making such computation, the amount of Indebtedness under any revolving credit facility shall be computed based upon the average daily balance of such Indebtedness under such credit facility during such period), (iii) any income earned as a result of any increase in Adjusted Total Assets since the end of such four-quarter period had been earned, on an annualized basis, for such period, and (iv) in the case of an acquisition or disposition by the Issuer or any of its Subsidiaries of any asset or group of assets since the first day of such four-quarter period, including, without limitation, by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition or any related repayment of Indebtedness had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation of Consolidated Income Available for Debt Service to the Annual Service Charge.

 

(c)                                  In addition to the limitations set forth in subsections (a) and (b) of this Section 5.1, the Issuer will not, and will not permit any Subsidiary to, incur any Indebtedness secured by any Lien of any kind upon any of the property of the Issuer or any of its Subsidiaries (the “Secured Debt”) if, immediately after giving effect to the incurrence of such additional Secured Debt, the aggregate principal amount of all outstanding Secured Debt of the Issuer, and of its Subsidiaries determined at the applicable proportionate interest of the Issuer in each such Subsidiary, is greater than 40% of the Adjusted Total Assets.

 

Section 5.2                                    Maintenance of Total Unencumbered Assets.

 

The Issuer will maintain Total Unencumbered Assets of not less than 150% of the aggregate principal amount of all outstanding Unsecured Debt.

 

Section 5.3                                    Provision of Financial Information.

 

For as long as the Notes are outstanding, each of SL Green, the Issuer and the Operating Partnership will file with the Trustee, within 15 days after such entity is required to file the same with the SEC, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may from time to time by rules and regulations prescribe) that such entity may be required to file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if such entity is not required to file information, documents or reports pursuant to either of such sections, such entity will file with the Trustee and the SEC, in accordance with any other rules and regulations that may be prescribed from time to time by the SEC, such of the supplementary and periodic information, documents and reports that may be required pursuant to Section 13 of the Exchange Act, in respect of a security listed on a national securities exchange as may be prescribed from time to time in such rules and regulations.

 

In addition to the foregoing, for as long as the Notes are outstanding, if at any time the Issuer is not subject to Section 13 or 15(d) of the Exchange Act and providing reports pursuant to the previous paragraph, the Issuer will, at its option, either (i) post on a publicly available website or (ii) post on IntraLinks or any comparable password protected online data system requiring user identification and a confidentiality acknowledgement (a “Confidential Datasite”), within 15 days of the filing date that would

 

11

 

be applicable to a non-accelerated filer at that time pursuant to applicable SEC rules and regulations, the quarterly and audited annual financial statements and accompanying Item 303 of Regulation S-K disclosure (“management’s discussion and analysis of financial condition and results of operations”) that would be required to be contained in annual reports on Form 10-K and quarterly reports on Form 10-Q, respectively, required to be filed with the SEC if the Issuer were subject to Section 13(a) or 15(d) of the Exchange Act.  If SL Green OP elects to furnish such reports via a Confidential Datasite, access to the Confidential Datasite will be provided upon request to Holders, beneficial owners of and bona fide potential investors in the notes as well as securities analysts and market makers.

 

Any such report, information or document that SL Green, the Issuer or the Operating Partnership files with or furnish to the SEC through the SEC’s EDGAR database will be deemed filed with the Trustee for these purposes at the time of such filing or furnishing through the SEC’s EDGAR database.

 

Section 5.4                                    Merger, Consolidation and Sale of Assets

 

With respect to the Notes only (and not any other series of Securities issued pursuant to the Base Indenture), Section 6.04 of the Base Indenture is replaced in its entirety with the following:

 

(1)                                 SL Green or the Issuer may consolidate with, or sell, lease or convey all or substantially all of its assets to, or merge with or into, any other entity (whether or not affiliated with SL Green or the Issuer), or enter into successive consolidations or mergers, provided that the following conditions are met:

 

(a)                                 SL Green or the Issuer, as the case may be, shall be the continuing entity, or the successor entity (if other than SL Green or the Issuer, as the case may be) formed by or resulting from any consolidation or merger or which shall have received the transfer of assets shall be a Person organized and existing under the laws of the United States of America, any state thereof or the District of Columbia and shall expressly assume (i) in the case of the Issuer, the due and punctual payment of the principal of (and premium, if any) and interest on all the Notes and the performance and observance of all of the covenants and obligations contained in the Indenture or (ii) in the case of SL Green, all of the obligations of SL Green under the Guarantee of the Notes;

 

(b)                                 Immediately after giving effect to the transaction, no Event of Default under the Indenture, and no event which, after notice or the lapse of time, or both, would become an Event of Default, shall have occurred and be continuing; and

 

(c)                                  Either SL Green or the Issuer or the successor entity, as the case may be, shall have delivered to the Trustee an Officer’s Certificate and legal opinion covering these conditions.

 

(2)                                 the Operating Partnership may consolidate with, or sell, lease or convey all or substantially all of its assets to, or merge with or into, any other entity (whether or not affiliated with the Operating Partnership), or enter into successive consolidations or mergers, provided that the following conditions are met:

 

(a)                                 the other entity is SL Green or the Issuer or becomes a guarantor concurrently with the transaction;

 

(b)                                 (i) either (a) the Operating Partnership shall be the continuing entity or (b) the successor entity formed by or resulting from any consolidation or merger or which shall

 

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have received the transfer of assets shall be a person organized and existing under the laws of the United States of America, any state thereof or the District of Columbia and shall expressly assume all of the obligations of the Operating Partnership under the Guarantee of the Notes; and (ii) immediately after giving effect to the transaction, no Event of Default under the Indenture, and no event which, after notice or the lapse of time, or both, would become an Event of Default, shall have occurred and be continuing; or

 

(c)                                  the transaction constitutes a sale or other disposition (including by way of consolidation or merger) of the Operating Partnership or the sale or disposition of all or substantially all of the assets of the Operating Partnership (in each case other than to SL Green, the Issuer or a subsidiary of SL Green) otherwise permitted by the Indenture.

 

Section 5.5                                    Waiver of Certain Covenants.

 

In addition to, and not to the exclusion of Section 6.10 of the Base Indenture, the Issuer or a Guarantor may omit in any particular instance to comply with any term, provision or condition set forth in Sections 5.1 to 5.3 hereof, inclusive, with respect to the Notes if before the time for such compliance the Holders of at least a majority in principal amount of the Outstanding Notes, by act of such Holders, either shall waive such compliance in such instance or generally shall have waived compliance with such term, provision or condition, but no such waiver shall extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Issuer and the Guarantors and the duties of the Trustee in respect of any such term, provision or condition shall remain in full force and effect.

 

ARTICLE VI

 

REDEMPTION AND REPURCHASES

 

Section 6.1                                    Applicability of Article.

 

Article IV of the Base Indenture shall apply to the Notes. Redemption of Notes at the option of the Issuer as permitted or required by the terms of such Notes shall be made in accordance with the terms of such Notes and Article IV of the Base Indenture.

 

ARTICLE VII

 

SUPPLEMENTAL INDENTURES

 

Section 7.1                                    Without Consent of Holders.

 

This Section 7.1 replaces Section 14.01 of the Base Indenture with respect to the Notes only (and not any other series of Securities issued pursuant to the Base Indenture):

 

When authorized by or pursuant to a Board Resolution, the Issuer, the Guarantors and the Trustee (without the consent of the Holders of the Notes), at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any one or more of or all the following purposes:

 

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(a)                                 to evidence the succession of another Person to the Issuer or a Guarantor, and the assumption by any successor of the covenants of the Issuer or such Guarantor, as the case may be, contained herein and in the Notes;

 

(b)                                 to add to the covenants and agreements of the Issuer, to be observed thereafter and during the period, if any, in such supplemental indenture or indentures expressed, and to add Events of Default, in each case for the protection or benefit of the Holders of the Notes, or to surrender any right or power herein conferred upon the Issuer;

 

(c)                                  to add to or change any of the provisions of this Indenture to provide, change or eliminate any restrictions on the payment of principal of or premium, if any, on the Notes; provided that any such action shall not adversely affect the interests of the Holders of the Notes any material respect;

 

(d)                                 to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Notes and to add to or change any of the provisions of this Indenture as shall be necessary for or facilitate the administration of the trusts under the Indenture by more than one Trustee, pursuant to the requirements of Section 11.06(c) of the Base Indenture;

 

(e)                                  to secure the Notes;

 

(f)                                   to cure any inconsistency or ambiguity or to correct or supplement any provision contained in the Indenture or in any indenture supplemental hereto which may be mistaken, defective or inconsistent with any other provision contained herein or in any supplemental indenture;

 

(g)                                  to add to or change or eliminate any provision of this Indenture as shall be necessary or desirable in accordance with any amendments to the Trust Indenture Act;

 

(h)                                 to make any change in the Notes that does not adversely affect in any material respect the rights of the Holders of the Notes;

 

(i)                                     to provide for uncertificated securities in addition to certificated securities;

 

(j)                                    to permit or facilitate the issuance of the Notes in uncertificated form, provided that this action shall not adversely affect the interests of Holders of the Notes in any material respect;

 

(k)                                 to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of the Notes; provided that any such action shall not adversely affect the interests of the Holders of the Notes in any material respect; or

 

(l)                                     to effect the assumption by a subsidiary or a co-obligor pursuant to the Indenture.

 

Subject to the provisions of Section 14.03 of the Base Indenture, the Trustee is authorized to join with the Issuer in the execution of any such supplemental indenture, to make the further agreements and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property or assets thereunder.

 

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Any supplemental indenture authorized by the provisions of this Section 7.1 may be executed by the Issuer and the Trustee without the consent of the Holders of any of the Notes at the time Outstanding.

 

ARTICLE VIII

 

GUARANTEES

 

Section 8.1                                    Guarantee.

 

The Guarantors shall guarantee the Notes on the terms and subject to the conditions set forth in this Article VIII. Each Guarantee is joint and several with all other Guarantees of the series and is an unconditional guarantee for the benefit of each Holder of the Notes that have been authenticated and delivered by the Trustee, and for the benefit of the Trustee on behalf of each such Holder, of the due and punctual payment of the principal of, premium, if any, and interest on such Notes when and as the same shall become due and payable, whether at its Stated Maturity or following acceleration, call for redemption, purchase or otherwise, in each case in accordance with the terms and conditions of such Notes and this Indenture. In case of the failure of the Company punctually to make any such payment on any such security, each Guarantor of such security jointly and severally agrees to cause such payment to be made punctually when and as the same shall become due and payable, whether at the Stated Maturity or by acceleration, call for redemption, purchase or otherwise, and as if such payment were made by the Company. Each Guarantee shall be a guaranty of payment, not of collection. Except as expressly provided in this First Supplemental Indenture, the applicable Guarantor further agrees that the obligations guaranteed pursuant to the applicable Guarantee may be amended, supplemented, modified, restated, extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its Guarantee notwithstanding any such amendment, supplement, modification, extension or renewal of any such obligation.

 

Section 8.2                                    Limitation on Guarantor Liability. Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state or foreign law to the extent applicable to any Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article VIII, result in the obligations of such Guarantor under its Guarantee not constituting a fraudulent transfer or conveyance under federal, state or similar foreign law.

 

Section 8.3                                    Execution and Delivery of Guarantee. To evidence its Guarantee set forth in Section 8.1, each Guarantor hereby agrees that this Indenture (or a supplemental indenture to this Indenture) shall be executed on behalf of such Guarantor by an officer of such Guarantor.

 

Each Guarantor hereby agrees that its Guarantee set forth in Section 8.1 shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Guarantee.

 

If an officer whose signature is on this Indenture no longer holds that office at the time the Trustee authenticates the Note on which a Guarantee is endorsed, the Guarantee shall be valid nevertheless.

 

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The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantee set forth in this Indenture on behalf of the Guarantors.

 

Section 8.4                                    Release of Guarantors.

 

(a)                                 The Operating Partnership’s Guarantee shall be released:

 

(1)                                 in connection with any sale or other disposition of all or substantially all of the Operating Partnership’s assets (including by way of merger or consolidation) to an entity that is not (either before or after giving effort to such transaction) SL Green, the Issuer or one of their subsidiaries, if the sale or other disposition does not violate Section 6.04 of the Base Indenture as modified by this First Supplemental Indenture;

 

(2)                                 in connection with any sale or other disposition of all the capital stock of the Operating Partnership to a Person that is not (either before or after giving effect to such transition) SL Green, the Issuer or one of their subsidiaries, if the sale of other disposition does not violate Section 6.04 of the Base Indenture as modified by this First Supplemental Indenture;

 

(3)                                 upon defeasance under Section 3.2 of this First Supplemental Indenture or satisfaction and discharge under Section 12.02 of the Base Indenture; or

 

(4)                                 upon the contemporaneous release of the Operating Partnership’s obligations under SL Green’s, the Issuer’s and the Operating Partnership’s revolving credit facility and all other indebtedness for borrowed money of the Operating Partnership, SL Green or the Issuer.

 

(b)                                 SL Green’s Guarantee will be released upon defeasance under Section 3.2 of this First Supplemental Indenture or satisfaction and discharge under Section 12.02 of the Base Indenture.

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.1                                    The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this First Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guarantors and the Issuer.

 

16

 

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the day and year first above written.

 

	
 
    	
SL   GREEN OPERATING PARTNERSHIP, L.P., as Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
SL Green Realty Corp.,
    
	
 
    	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Andrew S. Levine
    
	
 
    	
 
    	
 
    	
Name:
    	
Andrew S. Levine
    
	
 
    	
 
    	
 
    	
Title:
    	
Executive Vice   President
    
	
 
    	
 
    
	
 
    	
Guarantors:
    
	
 
    	
 
    	
 
    
	
 
    	
SL   GREEN REALTY CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew S. Levine
    
	
 
    	
 
    	
Name:
    	
Andrew S. Levine
    
	
 
    	
 
    	
Title:
    	
Executive Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
RECKSON   OPERATING PARTNERSHIP, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Wyoming Acquisition GP LLC,
    
	
 
    	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Andrew S. Levine
    
	
 
    	
 
    	
 
    	
Name:
    	
Andrew S. Levine
    
	
 
    	
 
    	
 
    	
Title:
    	
Executive Vice   President
    
								

 

17

 

	
 
    	
THE   BANK OF NEW YORK MELLON
    
	
 
    	
as   Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Laurence J. O’Brien
    
	
 
    	
 
    	
Name:
    	
Laurence J. O’Brien
    
	
 
    	
 
    	
Title
    	
Vice President
    

 

18

 

Annex A

 

[FORM OF FACE OF NOTE]

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY SL GREEN OPERATING PARTNERSHIP, L.P. (THE “ISSUER”), THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE ISSUERS OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

 

SL Green Realty Corp.

 

3.250% Senior Notes due 2022

 

CUSIP No.:  78444F AF3
 ISIN:  US78444FAF36
 No.:

 

Interest. SL Green Operating Partnership, L.P., a Delaware limited partnership (the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of           Dollars ($        ), as revised by the Schedule of Increases or Decreases in Global Security attached hereto, on October 15, 2022 and to pay interest thereon from          ,     or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on April 15 and October 15 of each year, commencing April 15, 2018 at the rate of 3.250% per annum, until the principal hereof is paid or made available for payment.

 

Method of Payment.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Record Date for such interest, which shall be April 1 or October 1, as the case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice thereof having been given to Holders of Notes not less than 10 days prior to such Special Record Date, all as more fully provided in said Indenture.  Payment of the principal of (and premium, if any) and any such interest on this Note will be made at the Corporate Trust Office in U.S. Dollars or as otherwise set forth in Section 3.08 of the Indenture.

 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Authentication.  Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

IN WITNESS WHEREOF, the Issuer have caused this instrument to be duly executed under their corporate seal.

 

	
Dated:
    	
 
    
	
 
    	
 
    
	
 
    	
SL   GREEN OPERATING PARTNERSHIP, L.P., as Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
SL Green Realty Corp.,
    
	
 
    	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes of the series designated therein referred to in the within-mentioned Indenture.

 

	
Date   of authentication:
    	
 
    	
 
    	
THE BANK OF NEW YORK MELLON,
    
	
 
    	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Authorized Signatory
    

 

 

[REVERSE SIDE OF NOTE]

 

3.250% Senior Notes due 2022

 

Indenture.  This Note is one of a duly authorized issue of securities of the Issuer, issued and to be issued in one or more series under an Indenture, dated as of October 5, 2017, as supplemented by a First Supplemental Indenture, dated as of October 5, 2017 (as so supplemented, herein called the “Indenture”), between the Issuer, SL Green Realty Corp. and Reckson Operating Partnership, L.P., as Guarantors, and The Bank of New York Mellon, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto relating to the Notes reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer, the Guarantors, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $500,000,000. Under a Board Resolution, Officer’s Certificate pursuant to Board Resolutions or a supplemental indenture, the Issuer may from time to time, without the consent of the Holders of Notes, issue additional Notes (in any such case “Additional Notes”) having the same ranking and the same interest rate, maturity and other terms as the Notes. Any Additional Notes and the Initial Notes will constitute a single series under the Indenture and all references to the relevant Notes herein shall include the Additional Notes unless the context otherwise requires.

 

Optional Redemption.  Prior to September 15, 2022 (one month prior to maturity, (the “Par Call Date”)), the Notes are subject to redemption at the Issuer’s option, at any time and from time to time, in whole or in part, at a Redemption Price equal to the sum of (i) the principal amount of the Notes being redeemed, (ii) unpaid interest accrued thereon to the redemption date and (iii) the Make-Whole Amount (as defined below), if any, with respect to such Notes. If the Notes are redeemed on or after the Par Call Date, the redemption price for the Notes will equal 100% of the principal amount of the Notes, plus unpaid accrued interest thereon to the redemption date.

 

For purposes of determining the optional redemption price, the following definitions are applicable:

 

“Make-Whole Amount” means, in connection with any optional redemption, the excess, if any, of (i) the aggregate present value as of the date of such redemption of each dollar of principal being redeemed and the amount of interest on the notes being redeemed that would be due if such notes matured on the Par Call Date (exclusive of interest accrued to the date of redemption), determined by discounting, on a semi-annual basis, such principal and interest at the Reinvestment Rate (determined on the third business day in The City of New York preceding the date such notice of redemption is given) from the respective dates on which such principal and interest would have been payable if such redemption had not been made, to the date of such redemption over (ii) the aggregate principal amount of the Notes being redeemed. The Issuer shall be solely responsible for calculating the Make-Whole Amount.

 

“Reinvestment Rate” means 0.25% plus the arithmetic mean, as calculated by the Issuer, of the yields under the heading “Week Ending” published in the most recent Statistical Release under the caption “Treasury Constant Maturities” for the maturity (rounded to the nearest month) corresponding to the remaining life of the Notes to be redeemed (assuming for this purpose the Notes matured on the Par Call Date), as of the redemption date, of the principal being redeemed. If no maturity exactly corresponds to such maturity, yields for the two published maturities most closely corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence and the Reinvestment Rate shall be interpolated or extrapolated from such yields on a straight-line basis, rounding each of such relevant

 

 

periods to the nearest month. For the purpose of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the Make-Whole Amount shall be used.

 

“Statistical Release” means the statistical release designated “H.15 (519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States government securities adjusted to constant maturities or, if such statistical release is not published at the time of any determination under the Indenture, then such other reasonably comparable index designated by the Issuer.

 

Notice of any redemption will be mailed at least 15 days but not more than 60 days before the Redemption Date (unless a shorter period shall be satisfactory to the Trustee) to each registered Holder of the Notes to be redeemed. Unless the Issuer defaults in payment of the redemption price, on and after the Redemption Date, interest will cease to accrue on the Notes or portions of the Notes called for redemption.  If fewer than all of the Notes are to be redeemed, the Securities to be redeemed will be selected in accordance with the policies and procedures of the Depositary.

 

Except as set forth above, the Notes will not be redeemable by the Issuer prior to maturity and will not be entitled to the benefit of any sinking fund.

 

Defaults and Remedies.  If an Event of Default with respect to Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect provided in the Indenture.

 

Amendment, Modification and Waiver.  The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes of each series to be affected under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Notes of each series at the time Outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

Denominations, Transfer and Exchange.  The Notes are issuable only in registered form without coupons in denominations of $2,000 and in integral multiples of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registerable in the Security Register, upon surrender of this Note for registration of transfer at the Registrar accompanied by a written request for transfer in form satisfactory to the Issuer and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

 

No service charge shall be made for any such registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Persons Deemed Owners.  Prior to due presentment of this Note for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary.

 

Miscellaneous.  The Indenture and this Note shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of law rules of said State.

 

All terms used in this Note and not defined herein shall have the meanings assigned to them in the Indenture.

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

 

The following increases or decreases in this Global Security have been made:

 

	
Date of
   Exchange
    	
 
    	
Amount of increase in
   Principal Amount of
   this Global Security
    	
 
    	
Amount of decrease
   in Principal Amount
   of this Global
   Security
    	
 
    	
Principal Amount of
   this Global Security
   following each
   decrease or increase
    	
 
    	
Signature of
   authorized signatory
   of TrusteeExhibit
10.2

 

Execution
Version

 

FIRST
AMENDMENT AND WAIVER TO LOAN AND SECURITY AGREEMENT

 

THIS
FIRST AMENDMENT AND WAIVER TO LOAN AND SECURITY AGREEMENT (this “Agreement”)
is entered into as of January 26, 2017, by and among, (1) GACP Finance Co., LLC, as administrative agent and collateral agent
for the Lenders (in such capacity, together with its successors and assigns, if any, in such capacity, “Agent”),
(2) the lenders identified on the signature pages hereof (such lenders, together with their respective successors and permitted
assigns, are referred to hereinafter each individually as a “Lender”
and collectively as “Lenders”),
(3) Excel Corporation, a Delaware corporation, as borrower (“Borrower”),
and (4) the other Persons party hereto.

 

WHEREAS,
Borrower, Agent, Lenders and other parties party thereto are parties to that certain Loan and Security Agreement dated as of November
2, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan
Agreement”);

 

WHEREAS,
there exists an Event of Default under Section 5.22(n) of the Loan Agreement due to Borrower having made a payment in respect
of Subordinated Indebtedness described in clause (b) of the
definition thereof without the prior written consent of the Agent (the “Specified
Event of Default”); and

 

WHEREAS,
Borrower, Agent and Lenders have agreed to modify the Loan Agreement and waive the Specified Event of Default as provided herein,
in each ease subject to the terms and provisions hereof;

 

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

 

1.       Defined
Terms. Unless otherwise defined herein, capitalized terms used herein shall have the
meanings ascribed to such terms in the Loan Agreement.

 

2.
      Amendments
to Loan Agreement. The Loan Agreement is amended as follows:

 

(a)     Schedule
B to the Loan Agreement is hereby amended by adding the following definitions thereto in their proper alphabetical order:

 

“First
Amendment” means the First Amendment and Waiver to Loan and
Security
Agreement, dated as of the First Amendment Effective Date, among Borrower, Agent, Lenders and the other parties party thereto.

 

“First
Amendment Effective Date” means January 26, 2017.

 

“Independent
Member” has the meaning set forth in Section 4.6(c).

 

(b)     Section
1.2 of the Loan Agreement is hereby amended by adding the following new sentence is added at the end thereof:

 

“Notwithstanding
anything to the contrary, from and after January 31, 2017, a Control Agreement Reserve in an aggregate amount equal to no more
than $500,000 shall be established and maintained against the Term Loan Borrowing Base until such time as all of the Control Agreement
delivery requirements set forth in the proviso to the definition of Control Agreement Reserves and/or Section 4.1 of this Agreement
(in respect of Closing Date requirements), in each case, are complied with in their entirety (as determined by Agent in its sole
discretion).”

 

     

     

    

 

(c)     Section
4.6 of the Loan Agreement is hereby amended by adding the following as a new clause (c):

 

On
or before April 15, 2017. Borrower shall have filed with the Securities Exchange Commission (the “SEC”)
a proxy statement providing for the appointment of an independent member (the “Independent
Member”) to its Board of Directors. On or before June 30,
2017, Borrower shall have conducted a stockholder meeting and obtained the approval of the appointment of an independent Member
to its Board of Directors, provided however, such date shall be extended by the Agent in the event Borrower is reasonably required
to delay the stockholder meeting as a direct result of the SEC’s failure to provide comments or address Borrower responses
to SEC comments to the proxy statement materials required for such meeting in a timely manner. The Borrower will use its reasonable
best efforts to resolve any SEC comments as promptly as practicable. The Independent Member shall be entitled to attend all meetings
of such Board of Directors and each committee and sub-committee of such Board of Directors and shall have the right to vote, and
who shall receive all reports, meeting materials (including copies of all board presentations), notices, written consents, minutes
and other materials as and when provided to any other members of the Board of Directors. Such Independent Member shall be reasonably
acceptable to Borrower and solely acceptable to the Agent, Borrower shall pay to such Independent Member his/her reasonable fees
in respect of acting as a member of the Board of Directors and reimburse the Independent Member for the reasonable expenses incurred
by any such Independent Member in connection with such attendance at or participation in such meetings, in each case on the same
basis as all other independent directors of the Board.

 

(d)     Section
7,1(c)(1) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

“(c)(1)     if
any Loan Party defaults in the due observance or performance
of any covenant, condition or agreement contained Section 3.2, 4.1, 4.6(b), 4.6(c), 4.7, 4.8, 5.2 (limited to the last sentence
of Section 5.2), 5.3, 5.13, 5.14, 5.15, 5.17, 5.23 or 5.24;”

 

(e)       The
defined term “Control Agreement Reserves” set forth in Schedule B to the Loan Agreement is hereby amended and restated
in its entirety as follows:

 

“Control
Agreement Reserves” means a reserve, established in the Agent,
with respect to each bank, commodities or securities account or debit, credit or charge card processing or interchange or similar
agreement in an amount reasonably determined by the Agent (including based upon average inflows into any such account or as a
result of such debit, credit or charge card processing or interchange or similar agreement), in respect to which the Agent has
not received a Control Agreement or a consent by the counterpart to direct all sums to an account designated by the Agent; provided
that in the event, duly executed Control Agreements for each debit, credit or charge card processing or interchange or similar
agreement listed on Annex 1-1(n) to the Disclosure Schedule are not delivered on or before January 31, 2017, Control Agreement
Reserve in an aggregate amount of not more than $500,000 shall be established against the Term Loan Borrowing Base until such
time as each such Control Agreement is duly executed and delivered to Agent.

 

    	 	-2-	 

     

    

 

(f)       Section
5.24(b) of this Credit Agreement is hereby amended and restated in its entirety as follows:

 

(g)       As of the last day of each of the following fiscal months, Minimum Liquidity shall not be less than the amounts set forth below:

 

	Month End	 	Minimum Liquidity	 
	November 30, 2016	 	$	1,500,000	 
	December 31, 2016	 	$	1,500,000	 
	January 31, 2017	 	$	1,500,000	 
	February 28, 2017	 	$	1,500,000	 
	March 31, 2017	 	$	1,500,000	 
	April 30, 2017 and the last day of each fiscal month thereafter	 	$	2,000,000	 

 

(h)       Pursuant to Section 4.6(a) of the Loan Agreement, Borrower shall provide full cooperation assistance and access to the financial
books and records of the Borrowers to the financial consultant retained by Agent (or its counsel) to enable such financial consultant
to perform the services for which they were engaged, including without limitation a review and analysis of the Borrower’s financial
books and records and performance. The Borrower will permit any such financial consultant to visit and inspect the financial books
and records of the Borrower at reasonable times and as often as reasonably requested and to make extracts from and copies of such
financial records. All reasonable fees and expenses of the financial consultant shall be paid solely by the Loan Parties. The
initial engagement period for the financial consultant shall be from January 23, 2017 through and including May 1, 2017 provided
further such engagement may be extended or reduced in Agent’s reasonable discretion.

 

3.       Waiver.
Subject to the satisfaction of the conditions set forth in Section 5 below and in reliance upon the representations and warranties
set forth in Section 6 below, Agent and Lenders hereby waive the Specified Event of Default. For the avoidance of doubt, the foregoing
waiver shall not be deemed to be a waiver of any other existing or hereafter arising Defaults or Events of Default or any other
deviation from the express terms of the Loan Agreement or any other Loan Document. This is a limited waiver and shall not be deemed
to constitute a consent or waiver of any other term, provision or condition of the Loan Agreement or any other Loan Document,
as applicable, or to prejudice any right or remedy that Agent or any Lender may now have or may have in the future under or in
connection with the Loan Agreement or any other Loan Document.

 

4.       Reaffirmation and Confirmation. Borrower and each other Loan Party hereby ratifies, affirms, acknowledges and agrees that
the Loan Agreement and the other Loan Documents represent the valid, enforceable and collectible obligations of such Person, and
further acknowledges that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect
to the Loan Agreement or any other Loan Document. Borrower and each other Loan Party hereby agrees that this Agreement in no way
acts as a release or relinquishment of the Liens and rights securing payments of the Obligations. The Liens and rights securing
payment of the Obligations are hereby ratified and confirmed by Borrower and each other Loan Party in all respects.

 

    	 	-3-	 

     

    

 

5.       Conditions
to Effectiveness of this Agreement. This Agreement and the waiver set forth in Section 3 hereof shall become effective (the
“Waiver Effective Date”), so long as all of the following conditions have been satisfied (except that
the amendments to the Loan Agreement set forth in Section 2 of this Agreement shall be deemed effective so tong as clause (a)
below is satisfied and whether or not the Waiver Effective Date has occurred):

 

(a)       Each party hereto shall have executed and delivered this Agreement to Agent.

 

(b)       Borrower shall provide documentation, in a form reasonably satisfactory to Agent, evidencing the purchase of Equity Interests
of the Borrower by Thomas A. Hyde Jr. and/or Robert Winspear in an aggregate amount of not less than $25,000 on or prior to January
31, 2017.

 

(c)       No Default or Event of Default (other than the Specified Event of Default) shall have occurred and be continuing.

 

(d)       Borrower shall have paid to Agent, for the benefit of each Lender, the fee and expenses required to be paid under Section 10/
of the Loan Agreement, including in connection with the execution and negotiation of this Agreement.

 

(e)       Borrower shall have executed the First Amendment Fee Letter, dated of even date hereof, providing for the payment of the first
amendment fee on or before April 1, 2017.

 

(f)       All proceedings taken in connection with the transactions contemplated by this Agreement and all documents, instruments and other
legal matters incident thereto shall be reasonably satisfactory to Agent and its legal counsel.

 

6.       Representations
and Warranties. In order to induce Agent and Lenders to enter into this Agreement, each Loan Party hereby represents and
warrants to Agent and Lenders, after giving effect to this Agreement:

 

(a)       All representations and warranties contained in the Loan Agreement and the other Loan Documents are true and correct in all material
respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof) on and as of the date hereof (except to the extent that such representations
and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in
all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof) as of such earlier date).

 

(b)       No Default or Event of Default has occurred and is continuing.

 

(c)       This
Agreement and the Loan Agreement, as amended hereby, constitute legal, valid and binding obligations of each Loan Party and are
enforceable against such Borrower in accordance with their respective terms, except as enforcement may be limited by equitable
principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights
generally.

 

    	 	-4-	 

     

    

 

7.       Miscellaneous.

 

(a)       This Agreement shall be a contract made under and governed
by, and construed in accordance with the internal laws of the State of New York.

 

(b)       This
Agreement may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts, and each
such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same Amendment. Delivery of an executed signature page of this Agreement by facsimile transmission or electronic
photocopy (i.e. “pdf”) shall be effective as delivery of a manually executed counterpart hereof.

 

(c)       Except
as expressly provided herein (i) the Loan Agreement and the other Loan Documents shall be unmodified and shall continue to be
in full force and effect in accordance with their terms and are hereby in all respects ratified and confirmed, (ii) the consents
and agreements of the Agent and the Lenders Banks set forth herein shall be limited strictly as written and shall not constitute
a consent or agreement to any transaction not specifically described in connection with any such consent and/or agreement, and
(iii) this Agreement shall not be deemed a waiver of any term or condition of any Loan Document and shall not be deemed to prejudice
any right or rights which the Agent or any Lender may now have or may have in the future under or in connection with any Loan
Document or any of the instruments or agreements referred to therein, as the same may be amended from time to time. Without limiting
the foregoing, and notwithstanding anything to the contrary set forth in this Agreement, each Loans Party, on its own behalf and
on behalf of each Loan Party, agrees that each guaranty, security or collateral support of any kind or nature (in each case, recourse
or non-recourse) in respect of all or any portion of the Obligations which is in existence on the date of this Agreement is hereby
ratified and reaffirmed and shall continue in full force and effect following the date of this Agreement and in the event there
is a conflict between the terms of any such agreement and any Loan Document executed in connection with this Agreement, all such
agreements shall be read together to give them their full effect, including as to enforcement of remedies and guaranty, security
or collateral support in respect of any and all of the Obligations and nothing in this Agreement or any Loan Agreement executed
in connection with this Agreement shall limit or result in the novation of any grant or effect of any such agreement in respect
of any and all Obligations.

 

(d)       The
execution, delivery and effectiveness of this Agreement shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of any Lender or Agent under any of the Loan Documents, nor constitute a waiver of any provision of
any of the Loan Documents, each of which are hereby in all respects ratified and confirmed. This Agreement shall not be deemed
to create a course of dealing between the Agent and the Lenders, on the one hand, and the Loan Parties, on the other hand.

 

(e)       This Agreement shall constitute a Loan Document.

 

8.       Release.
In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, each Loan Party, on behalf of itself, each of its Subsidiaries and
each of their respective successors, assigns, and other legal representatives, hereby absolutely, unconditionally and
irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and assigns, and their present
and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents
and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the “Releasees” and
individually as a “Release”), of and from all demands, actions, causes of action,
suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any
and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and
collectively, “Claims”) of every name and nature, known as of the date of this Agreement, both at
law and in equity, which any Borrower, any of its Subsidiaries or any of their respective successors, assigns, or other
legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon,
or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date
of this Agreement, in each case for or on account of, or in relation to, or in any way in connection with any of the Loan
Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.

 

[Signature
pages follow]

 

    	 	-5-	 

     

    

 

Execution Version

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed by their respective officers thereunto duly authorized and delivered as of the date first
above written.

 

	 	GACP FINANCE CO., LLC,
	 	as Agent
	 	 	 	 
	 	By:	/s/ Robert A. Louzan
	 	 	Name:	Robert A. Louzan
	 	 	Title:	Managing Director

 

	 	GACP I, L.P.,
	 	as a Lender
	 	 	 	 
	 	By:	/s/ Robert A. Louzan
	 	 	Name:	Robert A. Louzan
	 	 	Title:	Managing Director

 

Signature page to First Amendment and Waiver
to Loan and Security Agreement

 

     

     

    

 

Loan Parties:

 

	EXCEL CORPORATION,
	as Borrower	 
	 	 	 	 
	By:	/s/ Robert L. Winspear	 
	 	Name:	Robert L. Winspear	 
	 	Title:	Chief Financial Officer	 

 

	EXCEL BUSINESS SOLUTIONS INC.,
	as a Guarantor	 
	 	 	 	 
	By:	/s/ Robert L. Winspear	 
	 	Name:	Robert L. Winspear	 
	 	Title:	Chief Financial Officer	 

 

	PAYPROTEC OREGON, LLC,
	as a Guarantor	 
	 	 
	By:  	Excel Corporation, its sole member 
	 	 
	By:	/s/ Robert L. Winspear	 
	 	Name:	Robert L. Winspear	 
	 	Title:	Chief Financial Officer	 

 

	EVANCE PROCESSING INC.,
	as a Guarantor	 
	 	 	 	 
	By:	/s/ Robert L. Winspear	 
	 	Name:	Robert L. Winspear	 
	 	Title:	Treasurer	 

 

Signature page to First Amendment and Waiver
to Loan and Security Agreement

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