Document:

Exhibit 10.2

 

GUARANTY

 

THIS GUARANTY (the “Guaranty”) dated as of April 30, 2012, executed and delivered by each of the undersigned and the other Persons from time to time party hereto pursuant to the execution and delivery of an Accession Agreement in the form of Annex I hereto (all of the undersigned, together with such other Persons each a “Guarantor” and collectively, the “Guarantors”) in favor of (a) KEYBANK NATIONAL ASSOCIATION, in its capacity as Agent (the “Agent”) for the Lenders under that certain Term Loan Agreement dated as of April 30, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), the Agent, and the other parties thereto, and (b) the Lenders.

 

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

 

WHEREAS, the Borrower and each of the Guarantors, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Agent and the Lenders through their collective efforts;

 

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

 

WHEREAS, each Guarantor’s execution and delivery of this Guaranty is a condition to the Agent and the Lenders making, and continuing to make, such financial accommodations to the Borrower.

 

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

 

Section 1.  Guaranty.  Each Guarantor hereby absolutely, irrevocably and unconditionally guaranties the due and punctual payment and performance when due, whether at stated maturity, by acceleration or otherwise, of all of the following (collectively referred to as the “Guarantied Obligations”):  (a) all indebtedness and obligations owing by the Borrower to any Lender or the Agent under or in connection with the Term Loan Agreement and any other Loan Document, including without limitation, the repayment of all principal of the Term Loans and the payment of all interest, Fees, charges, attorneys’ fees and other amounts payable to any Lender or the Agent thereunder or in connection therewith; (b) any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (c) all expenses, including, without limitation, reasonable attorneys’ fees and disbursements, that are incurred by the Lenders and the Agent in

 

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the enforcement of any of the foregoing or any obligation of such Guarantor hereunder; and (d) all other Obligations.

 

Section 2.  Guaranty of Payment and Not of Collection.  This Guaranty is a guaranty of payment, and not of collection, and a debt of each Guarantor for its own account.  Accordingly, none of the Lenders or the Agent shall be obligated or required before enforcing this Guaranty against any Guarantor:  (a)  to pursue any right or remedy any of them may have against the Borrower, any other Guarantor or any other Person or commence any suit or other proceeding against the Borrower, any other Guarantor or any other Person in any court or other tribunal; (b) to make any claim in a liquidation or bankruptcy of the Borrower, any other Guarantor or any other Person; or (c) to make demand of the Borrower, any other Guarantor or any other Person or to enforce or seek to enforce or realize upon any collateral security held by the Lenders or the Agent which may secure any of the Guarantied Obligations.

 

Section 3.  Guaranty Absolute.  Each Guarantor guarantees that the Guarantied Obligations will be paid strictly in accordance with the terms of the documents evidencing the same, regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Agent or the Lenders with respect thereto.  The liability of each Guarantor under this Guaranty shall be absolute, irrevocable and unconditional in accordance with its terms and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever, including without limitation, the following (whether or not such Guarantor consents thereto or has notice thereof):

 

(a)           (i) any change in the amount, interest rate or due date or other term of any of the Guarantied Obligations, (ii) any change in the time, place or manner of payment of all or any portion of the Guarantied Obligations, (iii) any amendment or waiver of, or consent to the departure from or other indulgence with respect to, the Term Loan Agreement, any other Loan Document, or any other document or instrument evidencing or relating to any Guarantied Obligations, or (iv) any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action or inaction under or in respect of, the Term Loan Agreement, any of the other Loan Documents, or any other documents, instruments or agreements relating to the Guarantied Obligations or any other instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;

 

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

 

(c)           any furnishing to the Agent or the Lenders of any security for the Guarantied Obligations, or any sale, exchange, release or surrender of, or realization on, any collateral securing any of the Obligations;

 

(d)           any settlement or compromise of any of the Guarantied Obligations, any security therefor, or any liability of any other party with respect to the Guarantied Obligations, or any

 

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subordination of the payment of the Guarantied Obligations to the payment of any other liability of the Borrower or any other Loan Party;

 

(e)           any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to such Guarantor, the Borrower, any other Loan Party or any other Person, or any action taken with respect to this Guaranty by any trustee or receiver, or by any court, in any such proceeding;

 

(f)            any act or failure to act by the Borrower, any other Loan Party or any other Person which may adversely affect such Guarantor’s subrogation rights, if any, against the Borrower to recover payments made under this Guaranty;

 

(g)           any nonperfection or impairment of any security interest or other Lien on any collateral, if any, securing in any way any of the Obligations;

 

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

 

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

 

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

 

Section 4.  Action with Respect to Guarantied Obligations.  The Lenders and the Agent may, at any time and from time to time, without the consent of, or notice to, any Guarantor, and without discharging any Guarantor from its obligations hereunder, take any and all actions described in Section 3 and may otherwise:  (a) amend, modify, alter or supplement the terms of any of the Guarantied Obligations, including, but not limited to, extending or shortening the time of payment of any of the Guarantied Obligations or changing the interest rate that may accrue on any of the Guarantied Obligations; (b) amend, modify, alter or supplement the Term Loan Agreement or any other Loan Document; (c) sell, exchange, release or otherwise deal with all, or any part, of any collateral securing any of the Obligations; (d) release any other Loan Party or other Person liable in any manner for the payment or collection of the Guarantied Obligations; (e) exercise, or refrain from exercising, any rights against the Borrower, any other Guarantor or any other Person; and (f) apply any sum, by whomsoever paid or however realized, to the Guarantied Obligations in such order as the Lenders shall elect.

 

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

 

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

 

Section 7.  Waiver.  Each Guarantor, to the fullest extent permitted by Applicable Law, hereby waives notice of acceptance hereof or any presentment, demand, protest or notice of any kind, and any other act or thing, or omission or delay to do any other act or thing, which in any manner or to any extent might vary the risk of such Guarantor or which otherwise might operate to discharge such Guarantor from its obligations hereunder.

 

Section 8.  Inability to Accelerate Loan.  If the Agent and/or the Lenders are prevented under Applicable Law or otherwise from demanding or accelerating payment of any of the Guarantied Obligations by reason of any automatic stay or otherwise, the Agent and/or the Lenders shall be entitled to receive from each Guarantor, upon demand therefor, the sums which otherwise would have been due had such demand or acceleration occurred.

 

Section 9.  Reinstatement of Guarantied Obligations.  If claim is ever made on the Agent or any Lender for repayment or recovery of any amount or amounts received in payment or on account of any of the Guarantied Obligations, and the Agent or such Lender repays all or part of said amount by reason of (a) any judgment, decree or order of any court or administrative body of competent jurisdiction, or (b) any settlement or compromise of any such claim effected by the Agent or such Lender with any such claimant (including the Borrower or a trustee in bankruptcy for the Borrower), then and in such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding on it, notwithstanding any revocation hereof or the cancellation of the Term Loan Agreement, any of the other Loan Documents, or any other instrument evidencing any liability of the Borrower, and such Guarantor shall be and remain liable to the Agent or such Lender for the amounts so repaid or recovered to the same extent as if such amount had never originally been paid to the Agent or such Lender.

 

Section 10.  Subrogation.  Upon the making by any Guarantor of any payment hereunder for the account of the Borrower, such Guarantor shall be subrogated to the rights of the payee against the Borrower; provided, however, that such Guarantor shall not enforce any right or receive any payment by way of subrogation or otherwise take any action in respect of any other claim or cause of action such Guarantor may have against the Borrower arising by reason of any payment or performance by such Guarantor pursuant to this Guaranty, unless and until all of the Guarantied Obligations have been indefeasibly paid and performed in full.  If any amount shall be paid to such Guarantor on account of or in respect of such subrogation rights or other claims or causes of action, such Guarantor shall hold such amount in trust for the benefit of the Agent and the Lenders and shall forthwith pay such amount to the Agent to be credited and applied against the Guarantied Obligations, whether matured or unmatured, in accordance with the terms of the Term Loan Agreement or to be held by the Agent as collateral security for any Guarantied Obligations existing.

 

Section 11.  Payments Free and Clear.  All sums payable by each Guarantor hereunder, whether of principal, interest, Fees, expenses, premiums or otherwise, shall be paid in full, without set off or counterclaim or any deduction or withholding whatsoever (including any

 

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Taxes), and if any Guarantor is required by Applicable Law or by a Governmental Authority to make any such deduction or withholding, such Guarantor shall pay to the Agent and the Lenders such additional amount as will result in the receipt by the Agent and the Lenders of the full amount payable hereunder had such deduction or withholding not occurred or been required.

 

Section 12.  Set-off.  In addition to any rights now or hereafter granted under any of the other Loan Documents or Applicable Law and not by way of limitation of any such rights, each Guarantor hereby authorizes the Agent and each Lender, at any time during the continuance of an Event of Default, without any prior notice to such Guarantor or to any other Person, any such notice being hereby expressly waived, but in the case of a Lender or Participant subject to receipt of the prior written consent of the Agent exercised in its sole discretion, to set off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at any time held or owing by the Agent, such Lender, or any affiliate of the Agent or such Lender, to or for the credit or the account of such Guarantor against and on account of any of the Guarantied Obligations, although such obligations shall be contingent or unmatured. Each Guarantor agrees, to the fullest extent permitted by Applicable Law, that any Participant may exercise rights of setoff or counterclaim and other rights with respect to its participation as fully as if such Participant were a direct creditor of such Guarantor in the amount of such participation.

 

Section 13.  Subordination.  Each Guarantor hereby expressly covenants and agrees for the benefit of the Agent and the Lenders that all obligations and liabilities of the Borrower to such Guarantor of whatever description, including without limitation, all intercompany receivables of such Guarantor from the Borrower (collectively, the “Junior Claims”) shall be subordinate and junior in right of payment to all Guarantied Obligations.  If an Event of Default shall exist, then no Guarantor shall accept any direct or indirect payment (in cash, property or securities, by setoff or otherwise) from the Borrower on account of or in any manner in respect of any Junior Claim until all of the Guarantied Obligations have been indefeasibly paid in full.

 

Section 14.  Avoidance Provisions.  It is the intent of each Guarantor, the Agent and the Lenders that in any Proceeding, such Guarantor’s maximum obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Agent and the Lenders) to be avoidable or unenforceable against such Guarantor in such Proceeding as a result of Applicable Law, including without limitation, (a) Section 548 of the Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) and (b) any state fraudulent transfer or fraudulent conveyance act or statute applied in such Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise.  The Applicable Laws under which the possible avoidance or unenforceability of the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Agent and the Lenders) shall be determined in any such Proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the extent that the obligations of any Guarantor hereunder would otherwise be subject to avoidance under the Avoidance Provisions, the maximum Guarantied Obligations for which such Guarantor shall be liable hereunder shall be reduced to that amount which, as of the time any of the Guarantied Obligations are deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of such

 

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Guarantor hereunder (or any other obligations of such Guarantor to the Agent and the Lenders), to be subject to avoidance under the Avoidance Provisions.  This Section is intended solely to preserve the rights of the Agent and the Lenders hereunder to the maximum extent that would not cause the obligations of any Guarantor hereunder to be subject to avoidance under the Avoidance Provisions, and no Guarantor or any other Person shall have any right or claim under this Section as against the Agent and the Lenders that would not otherwise be available to such Person under the Avoidance Provisions.

 

Section 15.  Information.  Each Guarantor assumes all responsibility for being and keeping itself informed of the financial condition of the Borrower and the other Guarantors, and of all other circumstances bearing upon the risk of nonpayment of any of the Guarantied Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that none of the Agent or the Lenders shall have any duty whatsoever to advise any Guarantor of information regarding such circumstances or risks.

 

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

 

SECTION 17.  WAIVER OF JURY TRIAL.

 

(a)           EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT AND EACH GUARANTOR HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

 

(b)           EACH OF THE GUARANTORS, THE AGENT AND EACH LENDER HEREBY AGREES THAT ANY FEDERAL DISTRICT COURT LOCATED IN NEW YORK OR, AT THE OPTION OF THE AGENT, ANY STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW YORK, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  EACH GUARANTOR AND EACH OF THE LENDERS EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS

 

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WITH RESPECT TO SUCH CLAIMS OR DISPUTES.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

 

(c)           THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS AND THE TERMINATION OF THIS GUARANTY.

 

Section 18.  Loan Accounts.  The Agent and each Lender may maintain books and accounts setting forth the amounts of principal, interest and other sums paid and payable with respect to the Guarantied Obligations, and in the case of any dispute relating to any of the outstanding amount, payment or receipt of any of the Guarantied Obligations or otherwise, the entries in such books and accounts shall be deemed conclusive evidence of the amounts and other matters set forth herein, absent manifest error.  The failure of the Agent or any Lender to maintain such books and accounts shall not in any way relieve or discharge any Guarantor of any of its obligations hereunder.

 

Section 19.  Waiver of Remedies.  No delay or failure on the part of the Agent or any Lender in the exercise of any right or remedy it may have against any Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the Agent or any Lender of any such right or remedy shall preclude any other or further exercise thereof or the exercise of any other such right or remedy.

 

Section 20.  Termination.  This Guaranty shall remain in full force and effect until indefeasible payment in full of the Guarantied Obligations and the other Obligations and the termination or cancellation of the Term Loan Agreement in accordance with its terms.

 

Section 21.  Successors and Assigns.  Each reference herein to the Agent or the Lenders shall be deemed to include such Person’s respective successors and assigns (including, but not limited to, any holder of the Guarantied Obligations) in whose favor the provisions of this Guaranty also shall inure, and each reference herein to each Guarantor shall be deemed to include such Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding.  The Lenders may, in accordance with the applicable provisions of the Term Loan Agreement, assign, transfer or sell any Guarantied Obligation, or grant or sell participations in any Guarantied Obligations, to any Person without the consent of, or notice to, any Guarantor and without releasing, discharging or modifying any Guarantor’s obligations hereunder.  Subject to Section 13.8. of the Term Loan Agreement, each Guarantor hereby consents to the delivery by

 

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the Agent or any Lender to any Assignee or Participant (or any prospective Assignee or Participant) of any financial or other information regarding the Borrower or any Guarantor.  No Guarantor may assign or transfer its obligations hereunder to any Person without the prior written consent of all Lenders and any such assignment or other transfer to which all of the Lenders have not so consented shall be null and void.

 

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

 

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

 

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

 

Section 25.  Notices.  All notices, requests and other communications hereunder shall be in writing (including facsimile transmission or similar writing) and shall be given (a) to each Guarantor at its address set forth below its signature hereto, (b) to the Agent or any Lender at its respective address for notices provided for in the Term Loan Agreement, or (c) as to each such party at such other address as such party shall designate in a written notice to the other parties.  Each such notice, request or other communication shall be effective (i) if mailed, when received; (ii) if telecopied, when transmitted; or (iii) if hand delivered, when delivered; provided, however, that any notice of a change of address for notices shall not be effective until received.

 

Section 26.  Severability.  In case any provision of this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

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

 

Section 28.  Limitation of Liability.  Neither the Agent nor any Lender, nor any affiliate, officer, director, employee, attorney, or agent of the Agent or any Lender, shall have any liability with respect to, and each Guarantor hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by a Guarantor in connection with, arising out of, or in any way related to, this Guaranty or any of the other Loan Documents, or any of the transactions contemplated by this Guaranty, the Term Loan Agreement or any of the other Loan Documents.  Each Guarantor hereby waives, releases, and agrees not to sue the Agent or any Lender or any of the Agent’s or any Lender’s affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Guaranty, the Term

 

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Loan Agreement or any of the other Loan Documents, or any of the transactions contemplated by Term Loan Agreement or financed thereby.

 

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

 

“Proceeding” means any of the following:  (i) a voluntary or involuntary case concerning any Guarantor shall be commenced under the Bankruptcy Code of 1978, as amended; (ii) a custodian (as defined in such Bankruptcy Code or any other applicable bankruptcy laws) is appointed for, or takes charge of, all or any substantial part of the property of any Guarantor; (iii) any other proceeding under any Applicable Law, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up or composition for adjustment of debts, whether now or hereafter in effect, is commenced relating to any Guarantor; (iv) any Guarantor is adjudicated insolvent or bankrupt; (v) any order of relief or other order approving any such case or proceeding is entered by a court of competent jurisdiction; (vi) any Guarantor makes a general assignment for the benefit of creditors; (vii) any Guarantor shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; (viii) any Guarantor shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; (ix) any Guarantor shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or (x) any corporate action shall be taken by any Guarantor for the purpose of effecting any of the foregoing.

 

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

 

[Signature on Next Page]

 

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

 

	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
KITE   REALTY GROUP TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Daniel R. Sink
    
	
 
    	
Name:
    	
Daniel R. Sink
    
	
 
    	
Title:
    	
Executive Vice President and Chief Financial   Officer
    

 

	
 
    	
Address   for Notices for all Guarantors:
    
	
 
    	
 
    
	
 
    	
c/o   Kite Realty Group Trust
    
	
 
    	
30   S. Meridian Street, Suite 1100
    
	
 
    	
Indianapolis, Indiana   46204
    
	
 
    	
Attention:
    	
Chief   Financial Officer
    
	
 
    	
Telecopy   Number: 
    	
(317)   577-5600
    
	
 
    	
Telephone   Number:
    	
(317)   577-5605
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EACH   GUARANTOR WHICH IS A SUBSIDIARY AS LISTED ON SCHEDULE 1
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Kite   Realty Group, L.P., the sole member of each such Guarantor
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
Name:   
    	
Daniel   R. Sink
    
	
 
    	
 
    	
Title:   
    	
Executive   Vice President and Chief Financial Officer
    
							

 

[Signatures Continued On Next Page]

 

[Signature Page to Guaranty — KeyBank/Kite, 2012]

 

 

	
 
    	
KRG   COURTHOUSE SHADOWS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
KRG   Courthouse Shadows I, LLC, its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    
	
 
    	
By:   
    	
/s/   Daniel R. Sink
    
	
 
    	
Name:   
    	
Daniel   R. Sink
    
	
 
    	
Title:   
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CORNER   ASSOCIATES, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
KRG   Corner Associates, LLC, its sole general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    
	
 
    	
By:
    	
 /s/ Daniel R. Sink
    
	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KITE   REALTY EDDY STREET LAND, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Kite   Realty Holding, LLC, their sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    
	
 
    	
By:
    	
 /s/ Daniel R. Sink
    
	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
							

 

[Signatures Continued On Next Page]

 

[Signature Page to Guaranty — KeyBank/Kite, 2012]

 

 

	
 
    	
KITE   REALTY NEW HILL PLACE, LLC
    
	
 
    	
KITE   REALTY PEAKWAY AT 55, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Kite   Realty Development, LLC, its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Holding, LLC, its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    
	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Daniel R. Sink
    
	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
KRG   CEDAR HILL VILLAGE, LP
    
	
 
    	
KRG   FRISCO BRIDGES, LP
    
	
 
    	
KRG   PIPELINE POINTE, LP
    
	
 
    	
KRG   SUNLAND II, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
KRG   Texas, LLC, their sole general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
KRG   Capital, LLC, its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    
	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Daniel R. Sink
    
	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

[Signatures Continued On Next Page]

 

[Signature Page to Guaranty — KeyBank/Kite, 2012]

 

 

	
 
    	
KRG   MARKET STREET VILLAGE, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
KRG   Market Street Village I, LLC, its sole general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    
	
 
    	
By:
    	
 /s/ Daniel R. Sink
    
	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
KRG   SAN ANTONIO, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Kite   San Antonio, LLC, its sole general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    
	
 
    	
By:
    	
 /s/ Daniel R. Sink
    
	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
KRG   EAGLE CREEK III, LLC
    
	
 
    	
KRG   PANOLA II, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
KRG   Capital, LLC, their sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    
	
 
    	
By:
    	
 /s/ Daniel R. Sink
    
	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

[Signatures Continued On Next Page]

 

[Signature Page to Guaranty — KeyBank/Kite, 2012]

 

 

	
 
    	
KRG   CEDAR HILL PLAZA, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
KRG   CHP Management, LLC, its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
Name:   
    	
Daniel   R. Sink
    
	
 
    	
 
    	
Title:   
    	
Executive   Vice President and Chief Executive Officer
    

 

[Signature Page to Guaranty — KeyBank/Kite, 2012]

 

 

SCHEDULE 1

 

	
 
    	
 
    	
Name of Subsidiary
    	
 
    	
State of Formation
    
	
1.
    	
 
    	
82 &   Otty, LLC
    	
 
    	
Indiana
    
	
2.
    	
 
    	
Eagle   Plaza II, LLC
    	
 
    	
Indiana
    
	
3.
    	
 
    	
Glendale   Centre, L.L.C.
    	
 
    	
Indiana
    
	
4.
    	
 
    	
Jefferson   Morton, LLC
    	
 
    	
Indiana
    
	
5.
    	
 
    	
Kite   Coral Springs, LLC
    	
 
    	
Indiana
    
	
6.
    	
 
    	
Kite   Eagle Creek, LLC
    	
 
    	
Indiana
    
	
7.
    	
 
    	
Kite   Greyhound III, LLC
    	
 
    	
Indiana
    
	
8.
    	
 
    	
Kite   Greyhound, LLC
    	
 
    	
Indiana
    
	
9.
    	
 
    	
Kite   King’s Lake, LLC
    	
 
    	
Indiana
    
	
10.
    	
 
    	
Kite   Pen, LLC
    	
 
    	
Indiana
    
	
11.
    	
 
    	
Kite   Washington Parking, LLC
    	
 
    	
Indiana
    
	
12.
    	
 
    	
Kite   West 86th Street II, LLC
    	
 
    	
Indiana
    
	
13.
    	
 
    	
KRG   Bolton Plaza, LLC
    	
 
    	
Indiana
    
	
14.
    	
 
    	
KRG   Centre, LLC
    	
 
    	
Indiana
    
	
15.
    	
 
    	
KRG   College I, LLC
    	
 
    	
Indiana
    
	
16.
    	
 
    	
KRG   College, LLC
    	
 
    	
Indiana
    
	
17.
    	
 
    	
KRG   Cool Creek Outlots, LLC
    	
 
    	
Indiana
    
	
18.
    	
 
    	
KRG   Eagle Creek IV, LLC
    	
 
    	
Indiana
    
	
19.
    	
 
    	
KRG   Four Corner Square, LLC
    	
 
    	
Indiana
    
	
20.
    	
 
    	
KRG   Fox Lake Crossing II, LLC
    	
 
    	
Indiana
    
	
21.
    	
 
    	
KRG   Gainesville, LLC
    	
 
    	
Indiana
    
	
22.
    	
 
    	
KRG   ISS LH OUTLOT, LLC
    	
 
    	
Indiana
    
	
23.
    	
 
    	
KRG   Lithia, LLC
    	
 
    	
Indiana
    
	
24.
    	
 
    	
KRG   New Hill Place, LLC
    	
 
    	
Indiana
    
	
25.
    	
 
    	
KRG   Oleander, LLC
    	
 
    	
Indiana
    
	
26.
    	
 
    	
KRG   Peakway at 55, LLC
    	
 
    	
Indiana
    
	
27.
    	
 
    	
KRG   Waterford Lakes, LLC
    	
 
    	
Indiana
    
	
28.
    	
 
    	
KRG   Zionsville, LLC
    	
 
    	
Indiana
    
	
29.
    	
 
    	
Noblesville   Partners, LLC
    	
 
    	
IndianaExhibit 10.3

 

FIRST AMENDMENT TO
 SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) made as of the 30th day of April, 2012, by and among KITE REALTY GROUP, L.P., a Delaware limited partnership (“Borrower”), KITE REALTY GROUP TRUST, a real estate investment trust formed under the laws of the State of Maryland (“REIT”), the Subsidiaries executing below as Guarantors (the “Subsidiary Guarantors”; REIT and the Subsidiary Guarantors, collectively the “Guarantors”), KEYBANK NATIONAL ASSOCIATION, a national banking association (“KeyBank”), THE OTHER LENDERS WHICH ARE SIGNATORIES HERETO (KeyBank and the other lenders which are signatories hereto, collectively, the “Lenders”), and KEYBANK NATIONAL ASSOCIATION, a national banking association, as Administrative Agent for the Lenders (the “Agent”).

 

W I T N E S S E T H:

 

WHEREAS, Borrower, Agent, the Lenders and certain other parties entered into that certain Second Amended and Restated Credit Agreement dated as of June 6, 2011 (the “Credit Agreement”); and

 

WHEREAS, Borrower has requested that the Agent and the Lenders make certain modifications to the terms of the Credit Agreement; and

 

WHEREAS, the Agent and the Lenders have agreed to make such modifications subject to the execution and delivery by Borrower and Guarantors of this Amendment.

 

NOW, THEREFORE, for and in consideration of the sum of TEN and NO/100 DOLLARS ($10.00), and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby covenant and agree as follows:

 

1.             Definitions.  All the terms used herein which are not otherwise defined herein shall have the meanings set forth in the Credit Agreement.

 

2.             Modification of the Credit Agreement.  Borrower, the Lenders and Agent do hereby modify and amend the Credit Agreement as follows:

 

(a)           By deleting in their entirety the definitions of “Applicable Margin”, “Borrowing Base”, “Capitalization Rate”, “EBITDA”, “Funds From Operations” and “Termination Date”, appearing in Section 1.1. of the Credit Agreement, and inserting in lieu thereof the following:

 

“Applicable Margin” means the percentage rate set forth below corresponding to the Leverage Ratio in effect at such time:

 

1

 

	
Level
    	
 
    	
Leverage Ratio
    	
 
    	
Applicable Margin
   For LIBOR Loans
    	
 
    	
Applicable Margin
   For Base Rate Loans
    	
 
    
	
1
    	
 
    	
50.0%   or less
    	
 
    	
1.90
    	
%
    	
0.90
    	
%
    
	
2
    	
 
    	
Greater   than 50.0% but less than or equal to 55.0%
    	
 
    	
2.15
    	
%
    	
1.15
    	
%
    
	
3
    	
 
    	
Greater   than 55.0% but less than or equal to 60.0%
    	
 
    	
2.40
    	
%
    	
1.40
    	
%
    
	
4
    	
 
    	
Greater   than 60.0%
    	
 
    	
2.90
    	
%
    	
1.90
    	
%
    

 

The Applicable Margin shall be determined by the Agent under this clause from time to time, based on the Leverage Ratio as set forth in the Compliance Certificate most recently delivered by the Borrower pursuant to Section 9.3.  Any adjustment to the Applicable Margin shall be effective (i) in the case of a Compliance Certificate delivered in connection with quarterly financial statements of the Parent delivered pursuant to Section 9.3., as of the date 50 days following the end of the last day of the applicable fiscal period covered by such Compliance Certificate, and (ii) in the case of a Compliance Certificate delivered in connection with annual financial statements of the Parent delivered pursuant to Section 9.3., as of the date 95 days following the end of the last day of the applicable fiscal period covered by such Compliance Certificate.  If the Borrower shall fail to deliver a Compliance Certificate within the time period required under Section 9.3., the Applicable Margin shall be determined based on Level 4 until the Borrower delivers the required Compliance Certificate, in which case the Applicable Margin shall be determined as provided above effective as of the date of delivery of such Compliance Certificate.  If the Borrower shall deliver a Compliance Certificate which is subsequently determined to be incorrect and, if correct when delivered, would have resulted in a higher Applicable Margin, Borrower shall pay to the Agent, within five (5) days after demand, any additional interest that would have accrued and been payable on any Loans using such higher Applicable Margin during the period that such lower Applicable Margin was applied incorrectly.

 

“Borrowing Base” means, as of any date, the lesser of (a) an amount equal to sixty-two and one-half percent (62.5%) of the then-current Unencumbered Pool Value, and (b) the maximum principal amount of debt which would not cause the Borrowing Base Debt Service Coverage Ratio to be less than 1.40 to 1.  The Borrowing Base shall equal $0 if at any time (i) there are fewer than fifteen (15) Eligible Unencumbered Pool Properties or (ii) the Unencumbered Pool Value is less than $250,000,000.

 

“Capitalization Rate” means seven and three-fourths percent (7.75%).

 

“EBITDA” means, with respect to a Person for any period (without duplication):  (a) net income (loss) of such Person for such period determined on a consolidated basis (before minority interests), exclusive of the following (but only to the extent included in determination of such net income (loss)):  (i) depreciation and amortization expense; (ii) Interest Expense; (iii) income tax expense; (iv) extraordinary or non-recurring gains and losses; (v) other non-cash items; and (vi) costs in connection with acquisitions; plus (b) such Person’s pro 

 

2

 

rata share of EBITDA of its Unconsolidated Affiliates.  EBITDA shall be adjusted to remove any impact from straight line rent leveling adjustments required under GAAP and amortization of intangibles pursuant to Statement of Financial Accounting Standards number 141.

 

“Funds From Operations” means, with respect to a Person and for a given period, (a) net income (loss) of such Person computed in accordance with GAAP, calculated without regard to (i) gains (or losses) from debt restructuring and sales of property during such period, and (ii) charges for impairment of real estate, plus (b) depreciation with respect to such Person’s real estate assets and amortization (other than amortization of deferred financing costs) of such Person for such period, plus (c) other non-cash items (other than amortization of deferred financing costs), plus (d) costs in connection with acquisitions, all after adjustment for unconsolidated partnerships and joint ventures, plus (e) extraordinary and non-recurring gains and losses.  Adjustments for Unconsolidated Affiliates will be calculated to reflect funds from operations on the same basis.

 

“Termination Date” means April 30, 2016 or such later date to which the Termination Date may be extended pursuant to Section 2.12.

 

(b)           By amending the definition of “Net Operating Income” appearing in Section 1.1. of the Credit Agreement by inserting the following sentence at the end thereof:

 

“For the retail assets known as Cobblestone Plaza (also known as Pembroke Pines) and Plaza at Cedar Hill, Net Operating Income shall include annualized rental income from executed leases for those tenants that take occupancy prior to December 31, 2012 until such time as two (2) consecutive fiscal quarters of operations with such tenants are available.”

 

(c)           By adding the following definitions to Section 1.1. of the Credit Agreement:

 

“Development Properties” means any ground-up developments, including consolidated or unconsolidated properties not owned by Parent, Borrower or their Subsidiaries as of April 30, 2012. Notwithstanding the foregoing, any such property which achieves an Occupancy Rate of 85% shall no longer be a Development Property.

 

“Term Loan Agreement” means that certain Term Loan Agreement dated as of April 30, 2012, among the Borrower, the Parent, KeyBank National Association, as administrative agent, and the lenders party thereto from time to time, as such agreement may be amended, supplemented and modified from time to time.

 

“Term Loan” means the aggregate principal balance of the “Loan” as defined in the Term Loan Agreement.

 

3

 

(d)           By deleting in its entirety Section 2.7.(b)(ii).of the Credit Agreement, and inserting in lieu thereof the following:

 

“(ii)         Outstandings in Excess of Borrowing Base.  If at any time the aggregate outstanding principal balance of all Unsecured Indebtedness of the Parent, the Borrower and their respective Subsidiaries (including, without limitation the outstanding principal balance of the Loans, together with the aggregate amount of all Letter of Credit Liabilities and the Term Loan), exceeds the Borrowing Base, then the Borrower shall, within five (5) Business Days of the Agent’s demand, pay the amount of such excess, at its choice, either to reduce such Unsecured Indebtedness or to the Agent for the account of the Lenders for application to the Revolving Loans. All payments under this Section shall be applied to pay all amounts of principal outstanding on the Loans and any Reimbursement Obligations pro rata in accordance with Section 3.2. and if any Letters of Credit are outstanding at such time the remainder, if any, shall be deposited into the Collateral Account for application to any Reimbursement Obligations.  If the Borrower is required to pay any outstanding LIBOR Loans by reason of this Section prior to the end of the applicable Interest Period therefor, the Borrower shall pay all amounts due under Section 5.4.”

 

(e)           By deleting the words “Unsecured Debt” appearing in Section 4.3.(e) of the Credit Agreement, and inserting in lieu thereof the words “Unsecured Indebtedness”.

 

(f)            By deleting in its entirety Section 10.1.(c) of the Credit Agreement, and inserting in lieu thereof the following:

 

“(c)         Minimum Tangible Net Worth.  Tangible Net Worth at any time to be less than (i) $325,000,000 plus (ii) 75.0% of the Net Proceeds of all Equity Issuances effected by the Parent or any Subsidiary after the Agreement Date (other than (x) Equity Issuances to the Parent or any Subsidiary and (y) the approximately $32,500,000 issuance of Preferred Equity Interests of Parent made pursuant to the Parent’s prospectus supplement dated March 7, 2012).”

 

(g)           By deleting in its entirety Section 10.1.(h) of the Credit Agreement, and inserting in lieu thereof the following:

 

“(h)         Permitted Investments.  The Parent’s, Borrower’s, and their Subsidiaries’ investments in (i) Mortgage Notes Receivable (with each asset valued at the lower of its acquisition cost and its fair market value), to exceed, in the aggregate, ten percent (10%) of Total Asset Value; (ii) Unconsolidated Affiliates (valued at the greater of their aggregate cash investment in that entity or the portion of Total Asset Value attributable to such entity or its assets as the case may be) to exceed, in the aggregate,  twenty percent (20%) of Total Asset Value; (iii) Unimproved Land (with each asset valued at its GAAP book value) to exceed, in the aggregate, ten percent (10%) of Total Asset Value; (iv) the Development Properties (with each asset valued at its GAAP book value and including the Borrower’s pro-rata share of the GAAP book value of Development Properties owned by Unconsolidated Affiliates) to exceed, in the aggregate, fifteen percent (15%) of Total Asset Value; or (v) the aggregate of investments 

 

4

 

under Section 10.1.(h)(i), (iii) and (iv) to exceed twenty-five percent (25%) of Total Asset Value.”

 

(h)           By deleting in its entirety Section 10.1.(i) of the Credit Agreement, and inserting in lieu thereof the following:

 

“(i)          Secured Indebtedness.  The ratio of (i) Secured Indebtedness of the Parent, the Borrower, or any Subsidiary of Parent, determined on a consolidated basis, to (ii) Total Asset Value to exceed .55 to 1.00 at any time.”

 

(i)            By adding the following new subsection (n) to Section 11.1.:

 

“(n)         The Term Loan Agreement. The occurrence of an “Event of Default” under the Term Loan Agreement.”

 

(j)            By deleting in its entirety Schedule 7.1.(i) to the Credit Agreement and substituting therefore Schedule 7.1.(i) attached hereto.

 

3.             References to Credit Agreement.  All references in the Loan Documents to the Credit Agreement shall be deemed a reference to the Credit Agreement, as modified and amended herein.

 

4.             Acknowledgment of Borrower and Guarantors.  Borrower and Guarantors hereby acknowledge, represent and agree that the Loan Documents, as modified and amended herein, remain in full force and effect and constitute the valid and legally binding obligation of Borrower and Guarantors, as applicable, enforceable against Borrower and Guarantors in accordance with their respective terms (except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and the effect of general principles of equity), and that the execution and delivery of this Amendment does not constitute, and shall not be deemed to constitute, a release, waiver or satisfaction of Borrower’s or any Guarantor’s obligations under the Loan Documents.

 

5.             Representations and Warranties.  Borrower and Guarantors represent and warrant to Agent and the Lenders as follows:

 

(a)           Authorization.  The execution, delivery and performance of this Amendment and the transactions contemplated hereby (i) are within the authority of Borrower and Guarantors, (ii) have been duly authorized by all necessary proceedings on the part of the Borrower and Guarantors, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which any of the Borrower or Guarantors is subject or any judgment, order, writ, injunction, license or permit applicable to any of the Borrower or Guarantors, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the partnership agreement or certificate, certificate of formation, operating agreement, articles of incorporation or other charter documents or bylaws of, or any mortgage, indenture, agreement, contract or other instrument binding upon, any of the Borrower or Guarantors or any of their respective properties or to which any of the Borrower or Guarantors is subject, and (v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets or rights of any of the Borrower or Guarantors.

 

5

 

(b)           Enforceability.  The execution and delivery of this Amendment are valid and legally binding obligations of Borrower and Guarantors enforceable in accordance with the respective terms and provisions hereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and the effect of general principles of equity.

 

(c)           Approvals.  The execution, delivery and performance of this Amendment and the transactions contemplated hereby do not require the approval or consent of any Person or the authorization, consent, approval of or any license or permit issued by, or any filing or registration with, or the giving of any notice to, any court, department, board, commission or other governmental agency or authority other than those already obtained and any disclosure filings with the SEC as may be required with respect to this Amendment.

 

(d)           Reaffirmation.  Borrower and Guarantors reaffirm and restate as of the date hereof each and every representation and warranty made by the Borrower and Guarantors and their respective Subsidiaries in the Loan Documents or otherwise made by or on behalf of such Persons in connection therewith except for representations or warranties that expressly relate to an earlier date.

 

6.             No Default.  By execution hereof, the Borrower and Guarantors certify that as of the date of this Amendment and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

7.             Waiver of Claims.  Borrower and Guarantors acknowledge, represent and agree that none of such Persons has any defenses, setoffs, claims, counterclaims or causes of action of any kind or nature whatsoever arising on or before the date hereof with respect to the Loan Documents, the administration or funding of the Loan or with respect to any acts or omissions of Agent or any Lender, or any past or present officers, agents or employees of Agent or any Lender pursuant to or relating to the Loan Documents, and each of such Persons does hereby expressly waive, release and relinquish any and all such defenses, setoffs, claims, counterclaims and causes of action arising on or before the date hereof, if any.

 

8.             Ratification.  Except as hereinabove set forth, all terms, covenants and provisions of the Credit Agreement remain unaltered and in full force and effect, and the parties hereto do hereby expressly ratify and confirm the Loan Documents as modified and amended herein.  Guarantors hereby consent to the terms of this Amendment.  Nothing in this Amendment or any other document delivered in connection herewith shall be deemed or construed to constitute, and there has not otherwise occurred, a novation, cancellation, satisfaction, release, extinguishment or substitution of the indebtedness evidenced by the Notes or the other obligations of Borrower and Guarantors under the Loan Documents.

 

9.             Effective Date.  This Amendment shall be deemed effective and in full force and effect as of the date hereof upon the execution and delivery of this Amendment by Borrower, Guarantors, Agent and all of the Lenders.  The Borrower will pay the reasonable fees and expenses of Agent in connection with this Amendment in accordance with Section 13.2. of the Credit Agreement.  All interest and fees accrued prior to the date of this Amendment under provisions of the Credit Agreement modified by this Amendment shall remain payable at the due dates set forth in the Credit Agreement.

 

6

 

10.          Amendment as Loan Document.  This Amendment shall constitute a Loan Document.

 

11.          Counterparts.  This Amendment may be executed in any number of counterparts which shall together constitute but one and the same agreement.

 

12.          MISCELLANEOUS.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors, successors-in-title and assigns as provided in the Credit Agreement.

 

7

 

IN WITNESS WHEREOF, the parties hereto have hereto set their hands and affixed their seals as of the day and year first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
KITE   REALTY GROUP, L.P., a Delaware limited partnership
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Kite   Realty Group Trust, its sole General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
Daniel   R. Sink, Executive Vice President and
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
REIT:
    
	
 
    	
 
    
	
 
    	
KITE   REALTY GROUP TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Daniel R. Sink
    
	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SUBSIDIARY   GUARANTORS:
    
	
 
    	
 
    
	
 
    	
EACH   GUARANTOR WHICH IS A SUBSIDIARY AS LISTED ON SCHEDULE 1
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Kite   Realty Group, L.P., the sole member of each such Guarantor
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
						

 

[Signatures Continued On Next Page]

 

 

	
 
    	
KRG   COURTHOUSE SHADOWS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
KRG   Courthouse Shadows I, LLC, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
CORNER   ASSOCIATES, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
KRG   Corner Associates, LLC, its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
KITE   REALTY EDDY STREET LAND, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
Kite   Realty Holding, LLC, their sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

[Signatures Continued On Next Page]

 

 

	
 
    	
KITE   REALTY NEW HILL PLACE, LLC
    
	
 
    	
KITE   REALTY PEAKWAY AT 55, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Kite   Realty Development, LLC, its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Holding, LLC, its sole member
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
KRG   CEDAR HILL VILLAGE, LP
    
	
 
    	
KRG   FRISCO BRIDGES, LP
    
	
 
    	
KRG   PIPELINE POINTE, LP
    
	
 
    	
KRG   SUNLAND II, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
KRG   Texas, LLC, their sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
KRG   Capital, LLC, its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

[Signatures Continued On Next Page]

 

 

	
 
    	
KRG   MARKET STREET VILLAGE, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
KRG   Market Street Village I, LLC, its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
KRG   SAN ANTONIO, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Kite   San Antonio, LLC, its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
KRG   EAGLE CREEK III, LLC
    
	
 
    	
KRG   PANOLA II, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
KRG   Capital, LLC, their sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Kite   Realty Group, L.P., its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Kite   Realty Group Trust, its sole general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

[Signatures Continued On Next Page]

 

 

	
 
    	
KRG   CEDAR HILL PLAZA, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
KRG   CHP Management, LLC, its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Daniel R. Sink
    
	
 
    	
 
    	
Name:
    	
Daniel   R. Sink
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

[Signatures Continued On Next Page]

 

 

	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
KEYBANK   NATIONAL ASSOCIATION, as Administrative Agent, as a Lender and   as Swingline Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James Komperda
    
	
 
    	
Name:
    	
James Komperda
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, successor to Wachovia   Bank, National Association, as Documentation Agent and as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Winita Lau
    
	
 
    	
Name:
    	
Winita   Lau
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A., as Syndication Agent and as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Anne Quenette Kruer
    
	
 
    	
Name:
    	
Anne   Quenette Kruer
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RAYMOND   JAMES BANK, FSB
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James M. Armstrong
    
	
 
    	
Name:
    	
James   M. Armstrong
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CITICORP   NORTH AMERICA, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John C. Rowland
    
	
 
    	
Name:
    	
John   C. Rowland
    
	
 
    	
Title:
    	
Director
    

 

[Signatures Continued On Next Page]

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Donald J. Pafford
    
	
 
    	
Name:
    	
Donald   J. Pafford
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   HUNTINGTON NATIONAL BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Kauffman
    
	
 
    	
Name:
    	
Michael   Kauffman
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ROYAL   BANK OF CANADA
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joshua Freedman
    
	
 
    	
Name:
    	
Joshua   Freedman
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JPMORGAN   CHASE BANK, N.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Elizabeth R. Johnson
    
	
 
    	
Name:
    	
Elizabeth   R. Johnson
    
	
 
    	
Title:
    	
Senior   Credit Banker
    

 

 

SCHEDULE 1

 

	
 
    	
 
    	
Name of Subsidiary
    	
 
    	
State of Formation
    
	
1.
    	
 
    	
82 &   Otty, LLC
    	
 
    	
Indiana
    
	
2.
    	
 
    	
Eagle   Plaza II, LLC
    	
 
    	
Indiana
    
	
3.
    	
 
    	
Glendale   Centre, L.L.C.
    	
 
    	
Indiana
    
	
4.
    	
 
    	
Jefferson   Morton, LLC
    	
 
    	
Indiana
    
	
5.
    	
 
    	
Kite   Coral Springs, LLC
    	
 
    	
Indiana
    
	
6.
    	
 
    	
Kite   Eagle Creek, LLC
    	
 
    	
Indiana
    
	
7.
    	
 
    	
Kite   Greyhound III, LLC
    	
 
    	
Indiana
    
	
8.
    	
 
    	
Kite   Greyhound, LLC
    	
 
    	
Indiana
    
	
9.
    	
 
    	
Kite   King’s Lake, LLC
    	
 
    	
Indiana
    
	
10.
    	
 
    	
Kite   Pen, LLC
    	
 
    	
Indiana
    
	
11.
    	
 
    	
Kite   Washington Parking, LLC
    	
 
    	
Indiana
    
	
12.
    	
 
    	
Kite   West 86th Street II, LLC
    	
 
    	
Indiana
    
	
13.
    	
 
    	
KRG   Bolton Plaza, LLC
    	
 
    	
Indiana
    
	
14.
    	
 
    	
KRG   Centre, LLC
    	
 
    	
Indiana
    
	
15.
    	
 
    	
KRG   College I, LLC
    	
 
    	
Indiana
    
	
16.
    	
 
    	
KRG   College, LLC
    	
 
    	
Indiana
    
	
17.
    	
 
    	
KRG   Cool Creek Outlots, LLC
    	
 
    	
Indiana
    
	
18.
    	
 
    	
KRG   Eagle Creek IV, LLC
    	
 
    	
Indiana
    
	
19.
    	
 
    	
KRG   Four Corner Square, LLC
    	
 
    	
Indiana
    
	
20.
    	
 
    	
KRG   Fox Lake Crossing II, LLC
    	
 
    	
Indiana
    
	
21.
    	
 
    	
KRG   Gainesville, LLC
    	
 
    	
Indiana
    
	
22.
    	
 
    	
KRG   ISS LH OUTLOT, LLC
    	
 
    	
Indiana
    
	
23.
    	
 
    	
KRG   Lithia, LLC
    	
 
    	
Indiana
    
	
24.
    	
 
    	
KRG   New Hill Place, LLC
    	
 
    	
Indiana
    
	
25.
    	
 
    	
KRG   Oleander, LLC
    	
 
    	
Indiana
    
	
26.
    	
 
    	
KRG   Peakway at 55, LLC
    	
 
    	
Indiana
    
	
27.
    	
 
    	
KRG   Waterford Lakes, LLC
    	
 
    	
Indiana
    
	
28.
    	
 
    	
KRG   Zionsville, LLC
    	
 
    	
Indiana
    
	
29.
    	
 
    	
Noblesville   Partners, LLC
    	
 
    	
Indiana
    

 

 

SCHEDULE 7.1.(i)

 

Litigation

 

The Parent and/or one of its Subsidiaries (collectively, the “Company”) was a claimant in a matter of arbitration against a former tenant of one of its operating properties. In this matter, the former tenant counterclaimed, alleging damages caused by the Company’s withholding of its consent to the assignment to a third party of its lease with the tenant. On March 29, 2012, the Company received a notice of an interim arbitration award and order (the “Interim Order”) which awarded damages plus attorneys’ fees and costs totaling $1.3 million. The Company has estimated and accrued a loss of $1.3 million in the first quarter 2012 statement of operations. This amount is recorded in Accounts payable and accrued expenses in the accompanying March 31, 2012 consolidated balance sheet. The Company paid the amount ordered in the Interim Order in April 2012.

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