Document:

lmrk-ex102_7.htm

Exhibit 10.2

 

Execution Version

 

GUARANTEE AND SECURITY AGREEMENT

made by

LMRK GUARANTOR CO III LLC,

as Guarantor

in favor of

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Indenture Trustee

Dated as of June 6, 2018

 

 

 

 

Table of Contents

 

	
 
	
 
	
 
	
 
	
 
	
 
	
Page

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SECTION 1.
	
 
	
 
	
DEFINED TERMS
	
1

	
 
	
 
	
1.1
	
 
	
 
	
Definitions
	
1

	
 
	
 
	
1.2
	
 
	
 
	
Other Definitional Provisions
	
2

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SECTION 2.
	
 
	
 
	
GUARANTEE
	
2

	
 
	
2.1
	
 
	
 
	
Guarantee
	
2

	
 
	
2.2
	
 
	
 
	
No Subrogation
	
3

	
 
	
2.3
	
 
	
 
	
Amendments, etc. with respect to the Obligations
	
3

	
 
	
2.4
	
 
	
 
	
Guarantee Absolute and Unconditional
	
3

	
 
	
2.5
	
 
	
 
	
Reinstatement
	
4

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SECTION 3.
	
 
	
 
	
GRANT OF SECURITY INTEREST
	
4

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SECTION 4.
	
 
	
 
	
REPRESENTATIONS AND WARRANTIES
	
4

	
 
	
4.1
	
 
	
 
	
Title; No Other Liens
	
4

	
 
	
4.2
	
 
	
 
	
Perfected First Priority Liens
	
5

	
 
	
4.3
	
 
	
 
	
Jurisdiction of Organization
	
5

	
 
	
4.4
	
 
	
 
	
Guarantor Representations
	
5

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SECTION 5.
	
 
	
 
	
COVENANTS
	
6

	
 
	
5.1
	
 
	
 
	
Payment of Obligations
	
6

	
 
	
5.2
	
 
	
 
	
Existence; Qualification
	
6

	
 
	
5.3
	
 
	
 
	
Maintenance of Perfected Security Interest; Further Documentation
	
6

	
 
	
5.4
	
 
	
 
	
Changes in Name, etc
	
6

	
 
	
5.5
	
 
	
 
	
Notices
	
7

	
 
	
5.6
	
 
	
 
	
ERISA
	
7

	
 
	
5.7
	
 
	
 
	
Indebtedness
	
7

	
 
	
5.8
	
 
	
 
	
Liens
	
7

	
 
	
5.9
	
 
	
 
	
Contingent Obligations
	
7

	
 
	
5.10
	
 
	
 
	
Fundamental Change
	
7

	
 
	
5.11
	
 
	
 
	
Single Purpose Covenants
	
7

	
 
	
5.12
	
 
	
 
	
Bankruptcy
	
10

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SECTION 6.
	
 
	
 
	
REMEDIAL PROVISIONS
	
10

	
 
	
6.1
	
 
	
 
	
Rights with respect to the Issuer Interest
	
10

	
 
	
6.2
	
 
	
 
	
UCC and Other Remedies
	
11

	
 
	
6.3
	
 
	
 
	
Extinguishment of Obligations
	
11

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SECTION 7.
	
 
	
 
	
THE INDENTURE TRUSTEE
	
12

	
 
	
7.1
	
 
	
 
	
Indenture Trustee’s Appointment as Attorney-in-Fact, etc
	
12

	
 
	
7.2
	
 
	
 
	
Duty of Indenture Trustee
	
12

	
 
	
7.3
	
 
	
 
	
Filing of Financing Statements
	
12

	
 
	
7.4
	
 
	
 
	
Authority of Indenture Trustee
	
13

	
 
	
7.5
	
 
	
 
	
Concerning the Indenture Trustee
	
13

i

 

US-DOCS\100390920.5

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SECTION 8.
	
 
	
 
	
MISCELLANEOUS
	
13

	
 
	
8.1
	
 
	
 
	
Amendments in Writing
	
13

	
 
	
8.2
	
 
	
 
	
Notices
	
13

	
 
	
8.3
	
 
	
 
	
No Waiver by Course of Conduct; Cumulative Remedies
	
13

	
 
	
8.4
	
 
	
 
	
Enforcement Expenses; Indemnification
	
13

	
 
	
8.5
	
 
	
 
	
Successors and Assigns
	
14

	
 
	
8.6
	
 
	
 
	
Counterparts
	
14

	
 
	
8.7
	
 
	
 
	
Severability
	
14

	
 
	
8.8
	
 
	
 
	
Section Headings
	
14

	
 
	
8.9
	
 
	
 
	
GOVERNING LAW
	
14

	
 
	
8.10
	
 
	
 
	
Submission To Jurisdiction; Waivers
	
14

	
 
	
8.11
	
 
	
 
	
Acknowledgements
	
15

	
 
	
8.12
	
 
	
 
	
Releases
	
15

	
 
	
8.13
	
 
	
 
	
No Petition
	
15

	
 
	
8.14
	
 
	
 
	
No Recourse
	
15

	
 
	
8.15
	
 
	
 
	
WAIVER OF JURY TRIAL
	
16

 

 

	
SCHEDULES
	
 
	
 

	
 
	
 
	
 
	
 

	
Schedule 1
	
 
	
Notice Addresses

 

 

ii

 

GUARANTEE AND SECURITY AGREEMENT

GUARANTEE AND SECURITY AGREEMENT (this “Agreement”), dated as of June 6, 2018 made by LMRK Guarantor Co III LLC, a Delaware limited liability company (the “Guarantor”), in favor of Wilmington Trust, National Association, not in its individual capacity but solely as indenture trustee (in such capacity, the “Indenture Trustee”) under the indenture, dated as of June 6, 2018 (as amended, supplemented or otherwise modified from time to time, the “Indenture”), among LMRK Issuer Co III LLC, a Delaware limited liability company (the “Issuer”), LMRK PropCo 3 LLC, a Delaware limited liability company (the “Original Asset Entity” and, together with any entity that becomes a party thereto after the date thereof as an “Additional Asset Entity” pursuant to a Joinder Agreement in substantially the form of Exhibit H thereto, the “Asset Entities” and, the Asset Entities and the Issuer, collectively, the “Obligors”), and the Indenture Trustee and is acknowledged and agreed to by the Indenture Trustee.

W I T N E S S E T H:

WHEREAS, pursuant to the Indenture, the Issuer shall issue the Series 2018-1 Notes on the Initial Closing Date and may issue additional Series of Notes from time to time following the Initial Closing Date that in each case are guaranteed by the Asset Entities upon the terms and subject to the conditions set forth therein;

WHEREAS, the Issuer is a subsidiary of the Guarantor; and

NOW, THEREFORE, in consideration of the premises and to induce the Indenture Trustee and the Obligors to enter into the Indenture, the Guarantor hereby agrees with the Indenture Trustee, for the ratable benefit of the Secured Parties (as defined below), as follows:

Section 1.DEFINED TERMS

1.1Definitions.

(a)Unless otherwise defined herein (including in the preamble and recitals hereto), terms defined in the Indenture and used herein shall have the meanings given to them in the Indenture, and the following terms used herein are as defined in the New York UCC:  Proceeds and Supporting Obligations.

(b)The following terms shall have the following meanings:

“Additional Asset Entity”:  as defined in the preamble hereto.

“Agreement”:  as defined in the preamble hereto.

“Asset Entities”:  as defined in the preamble hereto.

“Collateral”:  as defined in Section 3.

“Guarantor”:  as defined in the preamble hereto.

“Guarantor Obligations”:  with respect to the Guarantor, all obligations and liabilities of the Guarantor which may arise under or in connection with this Agreement (including, without limitation, Section 2), whether on account of guarantee obligations, fees, indemnities, costs, expenses or otherwise 

 

|US-DOCS\100390920.5||

 

(including, without limitation, all fees and disbursements of counsel to the Indenture Trustee, to the Backup Manager (including, if applicable, in its capacity as successor Manager) or to the Servicer that are required to be paid by the Guarantor pursuant to the terms of this Agreement).

“Issuer”:  as defined in the preamble hereto.

“Issuer Interest”:  the limited liability company interests of the Guarantor in the Issuer.

“New York UCC”:  the Uniform Commercial Code as from time to time in effect in the State of New York.

“Obligations”:  the collective reference to the principal amount of all Notes, accrued interest thereon, any prepayment consideration payable with respect to the Notes and all other obligations, liabilities and indebtedness to be paid by or performed by the Guarantor or any of the Obligors (including, without limitation, interest accruing at the then applicable rate provided in the Indenture after the maturity of the Notes and interest accruing at the then applicable rate provided in the Indenture after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to an Obligor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) to the Indenture Trustee, the Backup Manager, the Securities Intermediary, the Servicer or in respect of the Notes or any of the other Transaction Documents, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Indenture or the other Transaction Documents, in each case whether on account of principal, interest, fees, indemnities, costs, expenses or otherwise (including, without limitation, all reasonable fees and disbursements of counsel to the Indenture Trustee, the Backup Manager, the Securities Intermediary or the Servicer that are required to be paid by the Obligors pursuant to the terms of any of the Transaction Documents).

“Obligors”:  as defined in the preamble hereto.

“Original Asset Entity”:  as defined in the preamble hereto.

“Secured Parties”:  the Indenture Trustee, the Noteholders, the Manager, the Backup Manager, the Securities Intermediary and the Servicer.

1.2Other Definitional Provisions. Unless the context otherwise requires:

(a)The words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and Schedule references are to this Agreement unless otherwise specified.

(b)The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

Section 2.Guarantee

2.1Guarantee.

(a)The Guarantor hereby unconditionally and irrevocably guarantees to the Indenture Trustee, for the ratable benefit of the Secured Parties and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Obligors when due 

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(whether at the stated maturity, by acceleration or otherwise) of the Obligations. The guarantee provided hereunder is a guarantee of payment when due and not of collectability, and is a primary obligation of the Guarantor and not merely a contract of surety.

(b)The guarantee contained in this Section 2 shall remain in full force and effect until all the Obligations and the obligations of the Guarantor under the guarantee contained in this Section 2 shall have been satisfied by payment in full.

2.2No Subrogation.  Notwithstanding any payment made by the Guarantor hereunder, the Guarantor shall not be entitled to be subrogated to any of the rights of the Secured Parties against the Obligors or any collateral security or guarantee or right of offset held by the Secured Parties for the payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or reimbursement from the Obligors in respect of payments made by the Guarantor hereunder, until the Obligations are paid in full. If any amount shall be paid to the Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by the Guarantor in trust for the Indenture Trustee, segregated from other funds of the Guarantor, and shall, forthwith upon receipt by the Guarantor, be turned over to the Indenture Trustee in the exact form received by the Guarantor (duly indorsed by the Guarantor to the Indenture Trustee, if required), to be applied against the Obligations, whether matured or unmatured, in accordance with the Indenture.

2.3Amendments, etc. with respect to the Obligations.  The Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against the Guarantor and without notice to or further assent by the Guarantor, any demand for payment of any of the Obligations made by the Indenture Trustee may be rescinded and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Indenture Trustee, and the Indenture and the other Transaction Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, in accordance with the terms thereof from time to time, and any collateral security, guarantee or right of offset at any time held by the Indenture Trustee for the payment of the Obligations may be sold, exchanged, waived, surrendered or released.  The Indenture Trustee shall not have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for the guarantee contained in this Section 2 or any property subject thereto.

2.4Guarantee Absolute and Unconditional.  The Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Indenture Trustee upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Obligors and the Guarantor, on the one hand, and the Indenture Trustee on behalf of the Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2.  The Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Obligors with respect to the Obligations.  The Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of the Indenture or any other Transaction Document, any of the Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Indenture Trustee, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by the Obligors or any other Person against the Indenture 

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Trustee or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Obligors or the Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Obligors for the Obligations, or of the Guarantor under the guarantee contained in this Section 2, in bankruptcy or in any other instance.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against the Guarantor, the Indenture Trustee may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Obligors or any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Indenture Trustee to make any such demand, to pursue such other rights or remedies or to collect any payments from the Obligors or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of an Obligor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve the Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Indenture Trustee against the Guarantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

2.5Reinstatement.  The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Indenture Trustee, the Servicer, any holder of a Note or any other Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of an Obligor or the Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, an Obligor or the Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made.

Section 3.GRANT OF SECURITY INTEREST

The Guarantor hereby grants to the Indenture Trustee, for the benefit of the Secured Parties, a security interest in all of the following property now owned or at any time hereafter acquired by the Guarantor or in which the Guarantor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Guarantor Obligations and the Obligations:

(a)all of the limited liability company interests in the Issuer;

(b)to the extent not otherwise included, all Proceeds, Supporting Obligations and products of any and all of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing; and

(c)all books and records pertaining to any and all of the foregoing.

Section 4.REPRESENTATIONS AND WARRANTIES

The Guarantor hereby represents and warrants to the Indenture Trustee and each Secured Party that:

4.1Title; No Other Liens.  Except for the security interest granted to the Indenture Trustee pursuant to this Agreement and the other Liens permitted to exist on the Collateral by the Indenture, the Guarantor owns each item of the Collateral free and clear of any and all Liens or claims of others.  The Guarantor is the record and beneficial owner of, and has good and marketable title to, the limited liability 

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company interests of the Issuer, free of any and all Liens or options in favor of, or claims of, any other Person, except the security interest created by this Agreement, and such limited liability company interests constitute 100% of the ownership interest in the Issuer.  No financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except such as have been filed in favor of the Indenture Trustee, for the benefit of the Secured Parties, pursuant to this Agreement.

4.2Perfected First Priority Liens.  The security interests granted pursuant to this Agreement (a) constitute valid, perfected (subject to the filing of financing statements pursuant to Section 7.3) security interests in all of the Collateral in favor of the Indenture Trustee, for the benefit of the Secured Parties, as collateral security for the Guarantor Obligations and Obligations, enforceable in accordance with the terms hereof and (b) are prior to all other Liens on the Collateral in existence on the date hereof except for Liens permitted by the Indenture.

4.3Jurisdiction of Organization.  On the date hereof, the Guarantor’s jurisdiction of organization is, and since its formation has been, Delaware. The Guarantor’s legal name is, and since its formation has been, the name set forth on the signature page hereto. The limited liability company interest granted hereunder constitutes “general intangibles” (within the meaning of Section 9-102(a) of the New York UCC).

4.4Guarantor Representations.

(a)The Guarantor is duly organized, validly existing and in good standing as a limited liability company under the laws of the State of Delaware.  It has all requisite power and authority to execute, deliver and perform its obligations under each Transaction Document that it has entered into and to perform the terms thereof.

(b)The Guarantor is duly qualified and in good standing in each state or territory where necessary to carry on its present businesses and operations, except in jurisdictions in which the failure to be qualified and in good standing could not reasonably be expected to have a Material Adverse Effect.

(c)The execution, delivery and performance by it of the Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby have been duly authorized by all necessary limited liability company action.

(d)The execution, delivery and performance by the Guarantor of this Agreement and the consummation of the transactions contemplated hereby do not and will not: (1) violate (x) its certificate of formation or limited liability company agreement; (y) any provision of law applicable to it (except where such violation will not cause a Material Adverse Effect) or (z) any order, judgment or decree of any Governmental Authority binding on it or any of its property (except where such violation will not cause a Material Adverse Effect); (2) result in a breach of or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation binding upon it or its property (except where such breach or default will not cause a Material Adverse Effect); or (3) result in or require the creation or imposition of any Lien (other than Liens permitted by the terms of the Indenture or created hereby) upon its assets.

(e)The execution and delivery by the Guarantor of this Agreement, and the consummation of the transactions contemplated hereby do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority or any other 

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Person which has not been obtained or made and is in full force and effect other than any of the foregoing the failure to have made or obtained will not cause a Material Adverse Effect.

(f)This Agreement is the legally valid and binding obligation of the Guarantor, enforceable against it, in accordance with its respective terms, subject to bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditor rights and general equitable principles.

Section 5.COVENANTS

The Guarantor covenants and agrees for the benefit of (and in the case of Sections 5.11 and 5.12 represents and warrants to) the Indenture Trustee that, from and after the date of this Agreement until the Obligations shall have been paid in full:

5.1Payment of Obligations.  The Guarantor will pay and discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all taxes, assessments and governmental charges or levies imposed upon the Collateral or in respect of income or profits therefrom, as well as all claims of any kind (including, without limitation, claims for labor, materials and supplies) against or with respect to the Collateral, except that no such tax, assessment, charge, levy or claim need be paid if the amount or validity thereof is currently being contested in good faith by appropriate proceedings, reserves in conformity with GAAP with respect thereto have been provided on the books of the Guarantor and such proceedings could not reasonably be expected to result in the sale, forfeiture or loss of any material portion of the Collateral or any interest therein.

5.2Existence; Qualification.  The Guarantor at all times will preserve and keep in full force and effect its existence as a limited liability company and all rights and franchises to its business, including its qualification to do business in each state where it is required by law to so qualify, except to the extent that the failure to be so qualified would not have a Material Adverse Effect.

5.3Maintenance of Perfected Security Interest; Further Documentation.

(a)The Guarantor shall not take any action contrary to, and shall maintain the security interest created by this Agreement as a perfected security interest having at least the priority described in Section 4.2 and shall defend such security interest against the claims and demands of all Persons whomsoever.

(b)At any time and from time to time, upon the written request of the Indenture Trustee, and at the sole expense of the Guarantor, the Guarantor will promptly and duly execute and deliver, and have recorded, such further instruments and documents and take such further actions as the Indenture Trustee may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, including, without limitation, filing any financing or continuation statements under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security interests created hereby ; provided, however, that notwithstanding the foregoing, in no event shall the Indenture Trustee be responsible or liable for monitoring or maintaining the perfection, continuation of perfection or priority of any security interest created by this Agreement.

5.4Changes in Name, etc.  The Guarantor will not, except upon prior written notice to the Indenture Trustee and delivery of all additional financing statements and other documents required by law or reasonably requested by the Indenture Trustee to maintain the validity, perfection and priority of the security interests provided for herein, (i) change its jurisdiction of organization from that referred to in Section 4.3 or (ii) change its name. The Guarantor will not permit the limited liability company interest 

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granted hereunder to become investment property (within the meaning of Section 9-102(a) of the New York UCC).

5.5Notices.  The Guarantor will advise the Indenture Trustee promptly, in reasonable detail, of any Lien (other than security interests created hereby or Liens permitted under the Indenture) on any of the Collateral.

5.6ERISA.

(a) Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, the Guarantor shall not establish any Employee Benefit Plan or Multiemployer Plan, or commence making contributions to (or become obligated to make contributions to) any Employee Benefit Plan or Multiemployer Plan.

(b)Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, the Guarantor shall not: (i) engage in any non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of applicable Similar Law; or (ii) except as may be necessary to comply with applicable laws, establish or amend any Employee Benefit Plan which establishment or amendment could result in liability to the Obligors or any ERISA Affiliate or increase the benefits obligation of the Obligors; provided that if the Guarantor is in default of this covenant under subsection (i), the Guarantor shall be deemed not to be in default if such default results solely because (x) any portion of the Notes have been, or will be, funded with “plan assets” (as defined in the Plan Asset Regulation) of any Plan and (y) the purchase or holding of such portion of the Notes by such Plan constitutes a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of applicable Similar Law.

5.7Indebtedness.  The Guarantor shall not create, incur, assume, guarantee, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness other than Permitted Indebtedness.

5.8Liens.  The Guarantor shall not create, incur, assume or permit to exist any Lien on or with respect to the Collateral except Permitted Encumbrances.

5.9Contingent Obligations.  Other than Permitted Indebtedness, the Guarantor shall not create or become or be liable with respect to any Contingent Obligation.

5.10Fundamental Change.  Except as otherwise expressly permitted by the Indenture, the Guarantor shall not (i) amend, modify or waive any term or provision of its limited liability company agreement or other organizational documents so as to violate or permit the violation of Section 5.11, unless required by law; or (ii) liquidate, wind-up or dissolve.  The Guarantor shall not assign, pledge or otherwise transfer or dispose of any of its limited liability company interests in the Issuer, except for the pledge hereunder in favor of the Indenture Trustee (or any assignment or transfer in connection with the exercise of remedies hereunder or under the Indenture).

5.11Single Purpose Covenants.

(a)The Guarantor has not owned, and does not own and will not own any assets other than (i) its direct ownership interest in the Issuer and Related Property, (ii) in connection with the addition of an Additional Asset Entity pursuant to the Indenture, the ownership interests in such Additional Asset Entity pending the contribution thereof to the Issuer or an Asset Entity and (iii) assets to be immediately contributed by the Guarantor to the Issuer or an Asset Entity.

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(b)The Guarantor has not engaged in and will not engage in any business, directly or indirectly, other than the ownership and management of the Issuer Parties.

(c)The Guarantor has not entered into, and will not enter into, any contract or agreement with any Related Party except in the ordinary course of business and upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an arm’s-length basis with third parties other than a Related Party (it being understood that the Management Agreement and the other Transaction Documents shall be deemed to comply with this covenant).

(d)The Guarantor has not made any loans or advances to any Person (other than to the Issuer Parties) that remain outstanding as of the Initial Closing Date and will not make any loan or advance to any Person (including any of its Affiliates) other than to the Issuer Parties or as expressly permitted by the Transaction Documents, and has not acquired and will not acquire obligations or securities of any Related Party. 

(e)The Guarantor reasonably expects to remain solvent and pay its own liabilities, indebtedness, and obligations of any kind from its own separate assets as the same shall become due and reasonably expects to maintain adequate capital for its obligations in light of its contemplated business operations; provided, however, that the foregoing shall not require the Guarantor to make additional capital contributions or provide other financial support to any other Issuer Party.

(f)The Guarantor has done or caused to be done and will do all things necessary to preserve its existence, and will not amend, modify or otherwise change its limited liability company agreement or other organizational documents in any manner with respect to the matters set forth in this Section 5.11.

(g)The Guarantor has continuously maintained, and shall continuously maintain, its existence and qualification to do business in all states necessary to carry on its business.

(h)The Guarantor has conducted and operated, and will conduct and operate, its business as presently contemplated with respect to ownership of the Issuer.

(i)The Guarantor has maintained, and will maintain, books and records and bank accounts separate from those of its Related Parties and will maintain financial statements that are separate from such Affiliates; provided, however, that the Guarantor’s assets may be included in consolidated financial statements of its Affiliates provided that (i) appropriate notation shall be made on such consolidated financial statements to indicate the separateness of the Guarantor and its subsidiaries from such Affiliates and to indicate that its assets and credit are not available to satisfy the debts and other obligations of such Affiliate or any other Person and (ii) such assets shall also be included in the Guarantor’s own separate balance sheet.  

(j)Except as contemplated by the Management Agreement, the Guarantor has at all times held, and will continue to hold, itself out to the public as, a legal entity separate and distinct from any other Person (other than the other Issuer Parties) and not as a department or division of any Person and will promptly correct any known misunderstandings regarding its existence as a separate legal entity.

(k)The Guarantor will have a sufficient number of employees (if any) in light of its contemplated business operations and shall pay the salaries of its own employees, if any, solely from its own funds.

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(l)The Guarantor has allocated, and will continue to allocate, fairly and reasonably shared expenses with Affiliates (including, without limitation, any shared office space).

(m)The Guarantor will use stationery, invoices and checks separate from those of any Related Party (it being understood that the Issuer Parties are expressly permitted to use common stationery, invoices and checks among Issuer Parties).

(n)The Guarantor has filed, and will continue to file, all such separate tax returns (or consolidated tax returns for two or more Issuer Parties, if applicable) that are required under applicable law.

(o)The Guarantor has not sought, acquiesced in, or suffered or permitted, and will not seek, acquiesce in, or suffer or permit, its liquidation, dissolution or winding up, in whole or in part.

(p)The Guarantor will not enter into any transaction of merger or consolidation, sell all or substantially all of its assets, or acquire by purchase or otherwise all or substantially all of the business or assets of, or any stock or beneficial ownership of, any Person (other than as contemplated by the Transaction Documents).

(q)The Guarantor has not commingled or permitted to be commingled, and will not commingle or permit to be commingled, its funds or other assets with those of any other Person (other than each other Issuer Party, or as may be held by Manager, as agent, pursuant to the terms of the Management Agreement).  The Guarantor will ensure that funds belonging to it will be clearly traceable at each step in any financial transaction.

(r)The Guarantor has and will maintain its assets in such a manner that it is not costly or difficult to segregate, ascertain or identify its individual assets from those of any Related Party.

(s)The Guarantor does not and will not hold itself out to have guaranteed or otherwise be responsible for the debts or obligations of any other Person (other than any obligations of another Issuer Party, including the Obligations).

(t)The Guarantor has not guaranteed or otherwise become liable in connection with any obligation of any other Person (other than the other Issuer Parties) that remains outstanding, and will not guarantee or otherwise become liable on or in connection with any obligation (other than the Obligations) of any other Person (other than the other Issuer Parties) that remains outstanding.

(u)The Guarantor has not held, and, except for funds deposited into the Accounts in accordance with the Transaction Documents, shall not hold, title to its assets other than solely in its own name.

(v)The Guarantor shall comply in all material respects with all of the assumptions, statements, certifications, representations, warranties and covenants regarding or made by it contained in or appended to the nonconsolidation opinion delivered on the Initial Closing Date.

(w)The Guarantor has conducted, and will continue to conduct, its business solely in its own name.

(x)The Guarantor has observed, and will continue to observe, all limited liability company formalities.

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(y)The Guarantor has not formed, acquired or held any subsidiary (other than the Issuer or an Asset Entity immediately contributed by the Guarantor to the Issuer) and will not form, acquire or hold any other subsidiary, in each case, other than the Issuer or an Asset Entity to be immediately contributed by the Guarantor to the Issuer.

5.12Bankruptcy.

(a)The Guarantor shall not, without the prior unanimous written consent of its board of directors, including the independent directors of such board, institute proceedings for itself to be adjudicated bankrupt or insolvent; consent to the institution of bankruptcy or insolvency proceedings against itself; file a petition seeking, or consent to, reorganization or relief under any applicable federal or state law relating to bankruptcy; seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) for itself or a substantial part of its property; make or consent to any assignment for the benefit of creditors; or admit in writing its inability to pay its debts generally as they become due.

(b)The Guarantor has and at all times shall maintain at least two (2) independent directors on its board of directors, who shall be selected by its member. 

Section 6.REMEDIAL PROVISIONS

6.1Rights with respect to the Issuer Interest.

(a)Unless an Event of Default shall have occurred and be continuing and the Indenture Trustee shall have given notice to the Guarantor of the Indenture Trustee’s intent to exercise its corresponding rights pursuant to Section 6.1(b), the Guarantor shall be permitted to receive all cash dividends paid in respect of the Issuer Interest and, for the avoidance of doubt, to distribute such dividends and all other payments and cash on hand to the owners of the limited liability company interests in the Guarantor, and to exercise all voting and corporate or other organizational rights with respect to the Issuer Interest; provided, however, that no vote shall be cast or corporate or other organizational right exercised or other action taken which, in the Indenture Trustee’s reasonable judgment, would impair the Collateral or which would be inconsistent with or result in any violation of any provision of the Indenture or any other Transaction Document.

(b)If an Event of Default shall occur and be continuing and the Indenture Trustee shall give notice of its intent to exercise such rights to the Guarantor, (i) the Indenture Trustee shall have the right to receive any and all cash dividends, payments or other Proceeds paid in respect of the Issuer Interest and make application thereof to the Obligations in accordance with the Indenture and (ii) the Indenture Trustee or its nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to the Issuer Interest and (y) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to the Issuer Interest as if it were the absolute owner thereof, all without liability except to account for property actually received by it, but the Indenture Trustee shall have no duty to the Guarantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing.

(c)The Guarantor hereby authorizes and instructs the Issuer to (i) comply with any instruction received by it from the Indenture Trustee in writing that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from the Guarantor, and the Guarantor agrees that the Issuer 

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shall be fully protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other payments with respect to the Issuer Interest directly to the Indenture Trustee.

(d)Notwithstanding anything in this Agreement to the contrary, and for the avoidance of doubt, this Agreement does not prohibit the limited liability company interests in the Guarantor from being pledged by the owner of such limited liability company interests to secure obligations of such owner or Affiliate of such owner.

6.2UCC and Other Remedies.  If an Event of Default shall occur and be continuing, the Indenture Trustee, on behalf of the Secured Parties, may exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured party under the New York UCC or any other applicable law.  Without limiting the generality of the foregoing, the Indenture Trustee, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon the Guarantor or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, or may forthwith sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of the Indenture Trustee or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk.  The Indenture Trustee or any Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in the Guarantor, which right or equity is hereby waived and released.  The Indenture Trustee shall apply the net proceeds of any action taken by it pursuant to this Section 6.2, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Indenture Trustee and the Secured Parties hereunder, including, without limitation, reasonable  attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, in accordance with the Indenture, and only after such application and after the payment by the Indenture Trustee of any other amount required by any provision of law, including, without limitation, Section 9-615(a)(3) of the New York UCC, shall the Indenture Trustee account for the surplus, if any, to the Guarantor.  To the extent permitted by applicable law, the Guarantor waives all claims, damages and demands it may acquire against the Indenture Trustee or any Secured Party arising out of the exercise by them of any rights hereunder.  If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. 

6.3Extinguishment of Obligations.  Notwithstanding anything to the contrary in this Agreement, all obligations of the Guarantor hereunder shall be deemed to be extinguished in the event that, at any time, the Issuer, the Guarantor and the Asset Entities have no assets (which shall include claims that may be asserted by the Issuer, the Guarantor and the Asset Entities with respect to contractual obligations of third parties to the Issuer, the Guarantor and the Asset Entities).  To the fullest extent permitted by applicable law, no further claims may be brought against any of the Guarantor’s directors or officers or against their shareholders, partners or members, as the case may be, for any such obligations.  

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Section 7.THE INDENTURE TRUSTEE

7.1Indenture Trustee’s Appointment as Attorney-in-Fact, etc.  

(a)The Guarantor hereby irrevocably constitutes and appoints the Indenture Trustee and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the Guarantor and in the name of the Guarantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement.  Anything in this Section 7.1(a) to the contrary notwithstanding, the Indenture Trustee agrees that it will not exercise any rights under the power of attorney provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be continuing.

(b)If the Guarantor fails to perform or comply with any of its agreements contained herein, the Indenture Trustee, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement.

(c)The expenses of the Indenture Trustee incurred in connection with actions undertaken as provided in this Section 7.1, together with interest thereon at a rate per annum equal to the rate payable in respect of Servicing Advances, from the date of payment by the Indenture Trustee to the date reimbursed by the Guarantor, shall be payable by the Guarantor to the Indenture Trustee on demand.

(d)The Guarantor hereby ratifies all that such attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.

7.2Duty of Indenture Trustee.  The Indenture Trustee’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the Indenture Trustee deals with similar property for the account of third parties.  None of the Indenture Trustee, any Secured Party or any of their respective officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of the Guarantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Indenture Trustee hereunder are solely to protect the Indenture Trustee’s and the Secured Parties’ interests in the Collateral and shall not impose any duty upon the Indenture Trustee or any Secured Party to exercise any such powers.  The Indenture Trustee shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither any of its officers, directors, employees or agents shall be responsible to the Guarantor for any act or failure to act hereunder, except for their own bad faith, gross negligence or willful misconduct.

7.3Filing of Financing Statements.  Pursuant to any applicable law, the Guarantor authorizes the Indenture Trustee to file or record financing statements and other filing or recording documents or instruments (however the Indenture Trustee shall not have the obligation to file or record) with respect to the Collateral without the signature of the Guarantor in such form and in such offices as appropriate to perfect the security interests of the Indenture Trustee under this Agreement.  The Guarantor authorizes the use of the collateral description “all personal property” in any such financing statements.   

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7.4Authority of Indenture Trustee.  The Guarantor acknowledges that the rights and responsibilities of the Indenture Trustee under this Agreement with respect to any action taken by the Indenture Trustee or the exercise or non-exercise by the Indenture Trustee of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the Indenture Trustee and the Secured Parties, be governed by the Indenture and by such other agreements with respect thereto as may exist from time to time among them, but, as between the Indenture Trustee and the Guarantor, the Indenture Trustee shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and the Guarantor shall not be under any obligation, or entitlement, to make any inquiry respecting such authority.

7.5Concerning the Indenture Trustee.  The Indenture Trustee shall be afforded the same rights, protections, immunities and indemnities set forth in the Indenture as if the same were specifically set forth herein.

Section 8.MISCELLANEOUS

8.1Amendments in Writing.  None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Article XIII of the Indenture.

8.2Notices.  All notices, requests and demands to or upon the Indenture Trustee or the Guarantor hereunder shall be effected in the manner provided for in the Indenture; provided that any such notice, request or demand to or upon the Guarantor shall be addressed to the Guarantor at its notice address set forth on Schedule 1.

8.3No Waiver by Course of Conduct; Cumulative Remedies.  Neither the Indenture Trustee nor any Secured Party shall by any act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default.  No failure to exercise, nor any delay in exercising, on the part of the Indenture Trustee or any Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by the Indenture Trustee or any Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Indenture Trustee or such Secured Party would otherwise have on any future occasion.  The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

8.4Enforcement Expenses; Indemnification.

(a)The Guarantor agrees to pay or reimburse the Indenture Trustee for all its costs and expenses incurred in collecting against the Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Agreement, including, without limitation, the fees and disbursements of counsel to the Indenture Trustee.

(b)The Guarantor agrees to pay, and to hold the Indenture Trustee harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or 

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other taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement.

(c)The Guarantor agrees to pay, and to hold the Indenture Trustee and each Secured Party harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement to the extent the Issuer would be required to do so pursuant to the Indenture.

8.5Successors and Assigns.  This Agreement shall be binding upon the successors and assigns of the Guarantor and shall inure to the benefit of the Indenture Trustee and the Secured Parties and their successors and permitted assigns.

8.6Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by facsimile or other electronic means including telecopy, email or otherwise), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission (including, without limitation, via Portable Document Format or “PDF”) shall be as effective as delivery of a manually executed counterpart hereof.

8.7Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

8.8Section Headings.  The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

8.9GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

8.10Submission To Jurisdiction; Waivers.  The Guarantor hereby irrevocably and unconditionally:

(a)submits for itself and its property to the jurisdiction of the United Stated federal court sitting in the Borough of Manhattan, the City of New York or, if such federal courts do not have subject matter or diversity jurisdiction for a particular proceeding, in the state courts sitting in the City of New York, Borough of Manhattan in respect of any suit, action or proceeding arising out of or in relation to this Agreement;

(b)consents that any such action or proceeding may be brought in such courts and 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 court and agrees not to plead or claim the same;

(c)agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), 

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postage prepaid, to the Guarantor at its address referred to in Section 8.2 or at such other address of which the Indenture Trustee shall have been notified pursuant thereto;

(d)agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

(e)waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 8.10 any special, exemplary, punitive or consequential damages.

8.11Acknowledgements.  The Guarantor hereby acknowledges that:

(a)it has been advised by counsel in the negotiation, execution and delivery of this Agreement;

(b)neither the Indenture Trustee nor any Obligor has any fiduciary relationship with or duty to the Guarantor arising out of or in connection with this Agreement or any of the other Transaction Documents, and the relationship between the Guarantor, on the one hand, and the Indenture Trustee and Obligors, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

(c)no joint venture is created hereby or by the other Transaction Documents or otherwise exists by virtue of the transactions contemplated hereby among the Obligors or among the Guarantor and the Obligors.

8.12Releases.  At such time as the Obligations shall have been paid in full, the Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Indenture Trustee and the Guarantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Guarantor.  At the request and sole expense of the Guarantor following any such termination, the Indenture Trustee shall deliver to the Guarantor any Collateral held by the Indenture Trustee hereunder, and execute and deliver to the Guarantor such documents as the Guarantor shall reasonably request and prepare to evidence such termination.

8.13No Petition.

(a)The Indenture Trustee hereby covenants and agrees that it will not at any time institute against the Guarantor, or join in any institution against the Guarantor of, any bankruptcy, reorganization, insolvency or similar proceedings, or other proceedings under any federal, state or foreign bankruptcy or similar law in connection with any obligations hereunder.

(b)Prior to the date that is one year and one day after the date on which the Indenture has been terminated in accordance with its terms and all Obligations thereunder and under the other Transaction Documents have been fully satisfied, the Guarantor shall not institute, or join any other Person in instituting, or authorize a trustee or other Person acting on its behalf or on behalf of others to institute, any bankruptcy, reorganization, arrangement, insolvency, liquidation or receivership proceedings under the laws of the United States of America or any state thereof against any Obligor.

8.14No Recourse.  No recourse may be taken directly or indirectly with respect to the obligations of the Guarantor hereunder or under the Indenture, any Indenture Supplement, on the Notes, or any certificate or other writing delivered in connection herewith against any partner, owner, 

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beneficiary, officer, director, employee or agent of the Guarantor in its individual capacity, any holder of equity in the Guarantor, except as any such Person has expressly agreed.

8.15WAIVER OF JURY TRIAL.  THE GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGES FOLLOW]

 

 

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IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Security Agreement to be duly executed and delivered as of the date first above written.

 

	
 
	
LMRK GUARANTOR CO III LLC,

	
 
	
 
	
as Guarantor

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ George P. Doyle

	
 
	
 
	
Name:
	
George P. Doyle

	
 
	
 
	
Title:
	
Authorized Representative

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
ACKNOWLEDGED AND AGREED:
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
WILMINGTON TRUST, NATIONAL

ASSOCIATION, not in its individual capacity, but solely

as Indenture Trustee

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Rachel Simpson

	
 
	
 
	
Name:
	
Rachel Simpson

	
 
	
 
	
Title:
	
Vice President

 

 

 

[Signature Page to Guarantee and Security Agreement]

 

Schedule 1

NOTICE ADDRESSES OF GUARANTOR

LMRK Guarantor Co III LLC

2141 Rosecrans Avenue, Suite 2100

El Segundo, California 90245

Attention: George Doyle

With copies to:

Landmark Infrastructure Partners LP

2141 Rosecrans Avenue, Suite 2100

El Segundo, California 90245

Attention: Legal Departmentlmrk-ex103_8.htm

Exhibit 10.3

 

Execution Version

 

CASH MANAGEMENT AGREEMENT

 

Dated as of June 6, 2018

 

among 

LMRK ISSUER CO III LLC,
LMRK ProPCO 3 LLC,

as Obligors,

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Indenture Trustee and Securities Intermediary

 

and

 

LANDMARK INFRASTRUCTURE PARTNERS GP LLC,

as Manager

 

 

 

 

 

CASH MANAGEMENT AGREEMENT 

CASH MANAGEMENT AGREEMENT (this “Agreement”), dated as of June 6, 2018, among LMRK Issuer Co III LLC, a Delaware limited liability company (the “Issuer”), LMRK PropCo 3 LLC, a Delaware limited liability company (the “Original Asset Entity” and, together with any entity that becomes a party hereto after the date hereof as an “Additional Asset Entity” pursuant to a Joinder Agreement in substantially the form of Exhibit H of the Indenture, the “Asset Entities” and, the Asset Entities and the Issuer, collectively, the “Obligors”), Wilmington Trust, National Association, not in its individual capacity but solely as indenture trustee (the “Indenture Trustee”) and in its capacity as a “securities intermediary” (as defined in Section 8-102 of the UCC (in such capacity, the “Securities Intermediary”)) and Landmark Infrastructure Partners GP LLC, a Delaware limited liability company (the “Manager”).

W I T N E S S E T H: 

WHEREAS, pursuant to that certain indenture, dated as of the date hereof (as the same may from time to time be amended, modified, or otherwise supplemented, the “Indenture”), between the Obligors and the Indenture Trustee, the Issuer has issued secured tenant site contract revenue notes in the principal amount of $125,440,000 on the Initial Closing Date and may issue additional Series of Notes from time to time following the Initial Closing Date (collectively, the “Notes”); 

WHEREAS, the obligations of the Obligors under the Indenture are secured by various security interests, mortgages and deeds of trust; 

WHEREAS, the Notes issued pursuant to the Indenture are secured by the Collateral;

WHEREAS, pursuant to the Indenture, the Obligors have granted to the Indenture Trustee a security interest in all of their right, title and interest in, to and under the Receipts and other Account Collateral, and have assigned and conveyed to the Indenture Trustee all of their right, title and interest in, to and under the Receipts and other Account Collateral due and to become due to the Obligors or to which the Obligors are now or may hereafter become entitled, arising out of the Tenant Site Assets or any part or parts thereof; 

WHEREAS, the Issuer, the Asset Entities and the Manager have entered into a Management Agreement with respect to the Tenant Site Assets, dated as of the date hereof, pursuant to which the Manager has agreed to manage the Tenant Site Assets; and

WHEREAS, in order to fulfill all of the Obligors’ obligations under the Indenture, the Issuer, the Asset Entities and the Manager have agreed that all Receipts will be deposited directly into a Lock Box Account established by the Obligors, and transferred to the Collection Account established under the Indenture. All funds deposited in the Collection Account will be allocated or disbursed in accordance with the terms and conditions hereof and of the Indenture.

NOW, THEREFORE, in consideration of the covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

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article I

DEFINITIONS 

(a)Defined Terms.  Capitalized terms not otherwise defined herein (including in the preamble and recitals hereto) shall have the meaning set forth in the Indenture. As used herein, the following terms shall have the following definitions: 

“Account Control Agreement” shall mean one or more account control agreements executed by the Issuer or an Asset Entity for the benefit of the Indenture Trustee with respect to the Accounts.

“Additional Asset Entity” shall have the meaning ascribed to it in the preamble hereto.

“Advance Rents Reserve Deposit” shall mean, for each Payment Date, collectively, the Annual Advance Rents Reserve Deposit for such Payment Date, the Semi-Annual Advance Rents Reserve Deposit for such Payment Date and the Quarterly Advance Rents Reserve Deposit for such Payment Date. 

“Agreement” shall have the meaning ascribed to it in the preamble hereto. 

“Annual Advance Rents Reserve Deposit” shall mean, for any Payment Date, eleven-twelfths (11/12ths) of the amount of Rent due and paid by Tenants pursuant to Tenant Leases that require that annual Rent due thereunder be paid in advance in each calendar year; provided, however, if Rents which are required to be delivered as Annual Advance Rents Reserve Deposits are received late, appropriate adjustments shall be made by the Manager taking into consideration amounts which, but for such late payment of Rent, would have previously been distributed from the Advance Rents Reserve Account had such Rents not been paid late. 

“Asset Entities” shall have the meaning ascribed to it in the preamble hereto.

“Extraordinary Receipts” shall mean any receipts of the Asset Entities not included within the definition of Operating Revenues under the Indenture, including receipts from litigation proceedings and tax certiorari proceedings. 

 “Indenture Trustee” shall have the meaning ascribed to it in the preamble hereto.

“Issuer” shall have the meaning ascribed to it in the preamble hereto.

“Manager” shall have the meaning ascribed to it in the preamble hereto. 

“Manager Report” shall have the meaning ascribed to it in the Management Agreement. 

“Obligors” shall have the meaning ascribed to it in the preamble hereto.

“Operating Account” shall have the meaning ascribed to it in the Management Agreement. 

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“Original Asset Entity” shall have the meaning ascribed to it in the preamble hereto.

“Permitted Investments” shall mean any one or more of the following obligations or securities acquired at a purchase price of not greater than par (unless the Obligors deposit into the applicable Reserve Account cash in the amount by which the purchase price exceeds par), including those issued by any Servicer or any of its Affiliates, payable on demand or having a maturity date not later than the Business Day immediately prior to the date on which the invested sums are required for payment of an obligation for which the related  Reserve Account was created and meeting one of the appropriate standards set forth below: 

(i)obligations the full and timely payment of which are to be made by or are fully guaranteed by the United States of America; 

(ii)demand deposits of, time deposits in, or certificates of deposit issued by, any depositary institution or trust company incorporated under the laws of the United States of America or any state thereof and subject to supervision and examination by Federal or state banking or depositary institution authorities; provided, however, that at the earlier of (x) the time of the investment and (y) the time of the contractual commitment to invest therein, the certificates of deposit or short term deposits, if any, or long term unsecured debt obligations (other than such obligations whose rating is based on collateral or on the credit of a Person other than such institution or trust company) of such depositary institution or trust company shall have a credit rating of “P-1” from Moody’s or of “F-1+” from Fitch (and is not rated lower than such thresholds by either of Moody’s or Fitch, as applicable) in the case of certificates of deposit or short term deposits, or a rating of “Aaa” from Moody’s or of “AAA” from Fitch (and is not rated lower than such thresholds by either of Moody’s or Fitch, as applicable), in the case of long term unsecured debt obligations; 

(iii)commercial paper having, at the earlier of (x) the time of the investment and (y) the time of contractual commitment to invest therein, a rating of “P-1” from Moody’s or of “F-1+” from Fitch (and is not rated lower than such thresholds by either of Moody’s or Fitch, as applicable); 

(iv)demand deposits or time deposits which are fully insured by the Federal Deposit Insurance Corporation; 

(v)bankers’ acceptances which are U.S. dollar denominated issued by any depositary institution or trust company described in clause (ii) above; and

(vi)investments in money market funds (including funds for which the Indenture Trustee or any of its affiliates is an investment manager or advisor) rated “Aaa” from Moody’s or “AAA” from Fitch (and is not rated lower than such thresholds by either of Moody’s or Fitch, as applicable).

Notwithstanding anything in this definition to the contrary, to the extent that the rating methodology or symbols of Moody’s or Fitch changes, an obligation or security for which the ratings set forth above have changed shall be deemed to satisfy the ratings requirements above if the changed rating of such obligation or security is in one of the top three equivalent rating categories from Moody’s or Fitch, as the case may be.

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“Pledged Accounts” shall have the meaning ascribed to it in Section 7.01 hereto.

“Quarterly Advance Rents Reserve Deposit” shall mean, for any Payment Date,  two-thirds (2/3rds) of the amount of Rent due and paid by Tenants pursuant to Tenant Leases that require that quarterly Rent due thereunder be paid in advance; provided, however, if Rents which are required to be delivered as Quarterly Advance Rents Reserve Deposits are received late, appropriate adjustments shall be made by the Manager taking into consideration amounts which, but for such late payment of Rent, would have previously been distributed from the Advance Rents Reserve Account had such Rents not been paid late. 

“Securities Intermediary” shall have the meaning ascribed to it in the preamble hereto.

“Semi-Annual Advance Rents Reserve Deposit” shall mean, for any Payment Date, five-sixths (5/6ths) of the amount of Rent due and paid by Tenants pursuant to the Tenant Leases that require that semi-annual Rent due thereunder be paid in advance; provided, however, if Rents which are required to be delivered as Semi-Annual Advance Rents Reserve Deposits are received late, appropriate adjustments shall be made by the Manager taking into consideration amounts which, but for such late payment of Rent, would have previously been distributed from the Advance Rents Reserve Account had such Rents not been paid late. 

“UCC” shall mean the Uniform Commercial Code as in effect in the State of New York. 

Rules of Construction. Unless the context otherwise requires:

(i)a term has the meaning assigned to it;

(ii)an accounting term not otherwise defined herein and accounting terms partly defined herein, to the extent not defined, shall have the respective meanings given to them under GAAP as in effect from time to time;

(iii)“or” is not exclusive;

(iv)“including” means including without limitation;

(v)words in the singular include the plural and words in the plural include the singular;

(vi)all references to “$” are to United States dollars unless otherwise stated;

(vii)any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; 

(viii)references to a Person are also to its permitted successors and assigns; and

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(ix)the words “hereof”, “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise specified.

article II

THE ACCOUNTS AND RESERVE ACCOUNTS

Section 2.01.   Deposits into Accounts.  The Obligors and the Manager represent, warrant and covenant that: 

(a)The Obligors have notified and directed substantially all (and shall promptly direct any Tenants they are or become aware have not been so directed) Tenants under the Tenant Leases to send directly to the Lock Box Account all payments of Receipts (and shall not revoke, modify or cancel such directions or cause or direct any Tenant or other Person to pay any Receipts in any other manner).  Pursuant to the Management Agreement, all available funds on deposit in the Lock Box Account attributable to the Tenant Site Assets (other than Shared Rent which will be transferred at the direction of the Manager), shall be transferred by the Manager to the Indenture Trustee and deposited into the Collection Account within two (2) Business Days of receipt.  The Indenture Trustee may make withdrawals from the Collection Account in accordance with Section 3.03 of the Indenture. 

(b)If, notwithstanding the provisions of this Section 2.01, the Obligors or the Manager receives any Receipts from any Tenant Site Assets, or any Extraordinary Receipts, the Obligors or the Manager shall deposit such amounts in the Lock Box Account as promptly as practicable and in any event within four (4) Business Days of identification of such amounts.  Provided no Event of Default has occurred and is then continuing, and except as otherwise set forth in the Indenture, Extraordinary Receipts shall be held and applied as Rents in accordance with Article V of the Indenture when and as received.  The Indenture Trustee shall promptly, but in any event prior to each Payment Date, at the written direction of the Manager, transfer any funds on deposit in the Collection Account that were received in the preceding Collection Period but which constitute property of a Person other than an Asset Entity, to an account specified by the Manager or otherwise as directed by the Manager.

(c)On each Payment Date, the Indenture Trustee shall deposit the Advance Rents Reserve Deposits on deposit in the Collection Account into the Advance Rents Reserve Account as set forth in the Servicing Report. 

(d)If the Obligors or the Manager receive any Insurance Proceeds or Condemnation Proceeds, the Obligors or the Manager shall, at the Issuer’s election, (i) deposit such amounts in the Liquidated Site Replacement Account within four (4) Business Days of identification of such amounts and provide written notice to the Indenture Trustee prior to such deposit or (ii) deposit such amounts to the Collection Account for prepayment of the Notes on the Payment Date immediately following such election.

Section 2.02.   Account Name.  The Collection Account, the Reserve Accounts, the Liquidated Site Replacement Account and any Site Acquisition Account shall each be in the name of the Issuer in which Accounts the Indenture Trustee will hold a security interest for the benefit of the Noteholders; provided, however, that in the event the Indenture Trustee resigns or is replaced pursuant to the terms of the Indenture, each of the Indenture Trustee (with respect to the 

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Accounts other than the Lock Box Account, the Collection Account and any Site Acquisition Accounts), the Collection Account Bank (with respect to the Collection Account) and any Site Acquisition Account Bank (with respect to any Site Acquisition Account) shall change the secured party on each Account to the name of the successor indenture trustee. 

Section 2.03.   Eligible Accounts/Characterization of Accounts.  The Lock Box Account shall be an Eligible Account subject to an Account Control Agreement. Each Account (other than the Lock Box Account) shall be a Pledged Account subject to the terms set forth in Article VII herein.

Section 2.04.   Permitted Investments.  Sums on deposit in the Collection Account, any Site Acquisition Account, the Liquidated Site Replacement Account and the Reserve Accounts shall be invested in Permitted Investments.  Except during the continuance of an Event of Default, the Manager shall have the right to direct the Indenture Trustee in writing to invest sums on deposit in the Collection Account, any Site Acquisition Account, the Liquidated Site Replacement Account and the Reserve Accounts in Permitted Investments; provided, however, in no event shall the Manager direct the Indenture Trustee to make a Permitted Investment if the maturity date of that Permitted Investment is later than one Business Day prior to the date on which the invested sums are required for payment of an obligation for which an Account was created.  In the absence of such written instruction (which shall specify a particular Permitted Investment), such funds shall remain uninvested. After an Event of Default of which a Responsible Officer of the Indenture Trustee shall have actual knowledge and during the continuance thereof, sums on deposit in the Collection Account, any Site Acquisition Account, the Liquidated Site Replacement Account and the Reserve Accounts shall remain uninvested unless otherwise directed in writing by the Servicer.  The Obligors hereby irrevocably authorize the Indenture Trustee to apply any income earned from Permitted Investments to the Collection Account, any Site Acquisition Account, the Liquidated Site Replacement Account and the Reserve Accounts in accordance with the priorities set forth in Section 5.01(a) of the Indenture with any such income available on any Payment Date being deemed to be attributable to the immediately preceding Collection Period for such purposes.  The Obligors shall be responsible for payment of any federal, state or local income or other tax applicable to income earned from Permitted Investments.  The Collection Account, any Site Acquisition Account, the Liquidated Site Replacement Account and the Reserve Accounts shall be assigned the federal tax identification number of the Issuer, which number is set forth on the signature page hereof.  Any dividends or other earnings which may accrue on the Collection Account, any Site Acquisition Account, the Liquidated Site Replacement Account or the Reserve Accounts shall be added to the balance in the applicable Account and allocated and/or disbursed in accordance with the terms hereof.  In no event shall the Indenture Trustee be responsible for, or incur any liability with respect to, any investment losses incurred in accordance with the terms of this Agreement.  The parties hereto acknowledge and agree that investments made pursuant to clause (vi) of the definition of Permitted Investments includes mutual funds for which the Indenture Trustee (or any Affiliate of the Indenture Trustee) may serve as investment manager, administrator, shareholder, servicing agent, or custodian or subcustodian, notwithstanding the fact that (i) the Indenture Trustee (or an Affiliate of the Indenture Trustee) receives fees from such funds for services rendered, (ii) the Indenture Trustee charges and collects fees for services rendered pursuant to the Indenture, which fees are separate from the fees received from such funds and (iii) services performed for such funds and pursuant to this Agreement and the Indenture may at times duplicate those provided to such funds by the Indenture Trustee or its Affiliates.

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article III

DEPOSITS 

Section 3.01.    Initial Deposits. 

(a)The Obligors shall deposit in the Advance Rents Reserve Account on the date hereof the amount of $783,378. 

(b)The Obligors shall deposit in the Impositions and Insurance Reserve Account on the date hereof the amount of $0. 

(c)The Obligors shall deposit in the Cash Trap Reserve Account on the date hereof the amount of $0. 

Section 3.02.   Additional Deposits.  The Obligors shall make such additional deposits into the Accounts as may be required by the Transaction Documents.

Section 3.03.   Application of Funds from the Collection Account. 

(a)Funds on deposit in the Collection Account and the Reserve Accounts shall be applied in accordance with the Indenture.  If the funds in the Impositions and Insurance Reserve Account as of the end of a Collection Period are less than the amount that is required to be in such Reserve Account pursuant to Section 4.03 of the Indenture, the Obligors shall deposit such deficiency into the Impositions and Insurance Reserve Account on or before the Business Day preceding the related Payment Date.  Under no circumstances shall the Indenture Trustee be required to utilize amounts on deposit in the Cash Trap Reserve to cure any deficiencies in any Reserve Accounts.  To the extent sufficient funds are included within the applicable Reserve Accounts (or, if not sufficient with respect to the Impositions and Insurance Reserve Account, to the extent the Obligors deposit any such deficiency pursuant to this Section 3.03(a)), the Obligors shall be deemed to have satisfied the obligations of the Obligors to make the deposit under the Indenture.  The Obligors shall use all disbursements made to them under Section 5.01(a)(v) of the Indenture solely to pay Operating Expenses in accordance with the Operating Budget.

(b)Notwithstanding anything herein to the contrary, upon the occurrence and during the continuance of an Event of Default of which a Responsible Officer of the Indenture Trustee shall have actual knowledge, all funds on deposit in the Collection Account and any Reserve Accounts (or any portion thereof) (other than any Site Acquisition Account) shall be disbursed to or as directed by the Indenture Trustee in accordance with Sections 3.03 and 3.05 of the Indenture; provided, however, that any payments on the Notes will be made in accordance with Article V of the Indenture. 

(c)As soon as reasonably practicable after the end of each Collection Period, but in any event, no later than three (3) Business Days prior to each Payment Date, the Manager will provide an estimate to the Servicer, for inclusion in the Servicing Report, of the Management Fee that is payable in respect of the preceding Collection Period.  Allocations pursuant to Section 5.01(a)(vi) of the Indenture shall be made on the basis of such estimate.  If as of any Payment Date, the actual Management Fee payable in respect of the preceding Collection Period is not equal to the amount allocated for the payment thereof pursuant to Section 5.01(a)(vi) of the Indenture, then the Management Fee for the current Collection Period shall be adjusted by an amount equal to the deficiency or surplus, as applicable. 

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article IV

PAYMENT OF FUNDS FROM RESERVE ACCOUNTS 

Section 4.01.   Payments From Accounts and Reserve Accounts. 

(a)Advance Rents Reserve Account.  The Indenture Trustee shall, as directed in the Servicing Report, cause amounts deposited into the Advance Rents Reserve Account to be released to the Collection Account on the first day of each Collection Period (as if the applicable Tenant had made its payment of Rent on a monthly basis on the first day of such Collection Period) based upon a ratable allocation of such Advance Rents Reserve Deposit over the period for which (i) the Annual Advance Rents Reserve Deposit (i.e., one-eleventh (1/11th) per month over the succeeding eleven (11) months), (ii) the Semi-Annual Advance Rents Reserve Deposit (i.e., one-fifth (1/5th) per month over the succeeding five (5) months), (iii) the Quarterly Advance Rents Reserve Deposit (i.e., one-half (1/2) per month over the succeeding two (2) months) and (iv) the Additional Tenant Site Assets Advance Rents Reserve Deposit (i.e., the number of months of delayed Rent for which such deposit was made), have been paid which amounts shall be allocated and disbursed in accordance with Section 5.01(a) of the Indenture; provided, however, if Rents which are required to be delivered as Advance Rents Reserve Deposits pursuant to clauses (i),(ii) and (iii) are received late, appropriate adjustments shall be made for allocating such Rents over the period for which such deposits are required, taking into consideration amounts which, but for such late payment of Rent, would have previously been distributed from the Advance Rents Reserve Account had such Rents not been paid late. 

(b)Impositions and Insurance Reserve Account.  The Indenture Trustee shall, as directed in the Servicing Report, withdraw amounts on deposit in the Impositions and Insurance Reserve Account and distribute such amounts as are required to be distributed pursuant to Section 4.03 of the Indenture. 

(c)Cash Trap Reserve Account.  The Indenture Trustee shall, as directed in the Servicing Report, withdraw amounts on deposit in the Cash Trap Reserve Account and distribute such amounts as are required to be distributed pursuant to Section 4.05 of the Indenture. 

(d)Yield Maintenance Reserve Accounts.  The Indenture Trustee shall, as directed in the Servicing Report, withdraw amounts on deposit in any Yield Maintenance Reserve Account and distribute such amounts as are required to be distributed pursuant to Section 5.01(b) of the Indenture.

article V

PLEDGE OF ACCOUNTS 

Section 5.01.   Security for Obligations.  

(a)The Obligors have Granted a security interest in the Account Collateral pursuant to the Indenture.  In furtherance thereof the Obligors hereby agree as set forth in this Section 5.01.

(b)The Indenture Trustee shall have with respect to the Account Collateral, in addition to the rights and remedies herein set forth, all of the rights and remedies available to a secured party under the UCC, as if such rights and remedies were fully set forth herein. 

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Section 5.02.   Rights on Default.  Upon the occurrence and during the continuance of an Event of Default, without notice from the Indenture Trustee, (a) neither the Obligors nor the Manager shall have any further right in respect of (including the right to instruct the Indenture Trustee to transfer from) the Accounts, (b) the Indenture Trustee (solely at the written direction of the Servicer) may liquidate and transfer any amounts then invested in Permitted Investments to the Accounts or reinvest such amounts in other Permitted Investments as the Servicer may reasonably determine is necessary to perfect or protect any security interest granted or purported to be granted pursuant to the Indenture or to enable the Indenture Trustee to exercise and enforce the Indenture Trustee’s rights and remedies hereunder with respect to any Account Collateral, and (c) the Indenture Trustee (solely at the written direction of the Servicer, except to pay or reimburse itself for any fees, expenses or indemnity amounts owed to it) may apply any Account Collateral to any Obligations in accordance with the Indenture. 

Section 5.03.   Financing Statement; Further Assurances.  The Obligors hereby authorize the Indenture Trustee (however the Indenture Trustee shall not have the obligation) to file a financing statement or statements in connection with the Account Collateral to properly perfect the Indenture Trustee’s security interest therein to the extent a security interest in the Account Collateral may also be perfected by filing.  The Obligors agree that at any time and from time to time, at the expense of the Obligors, the Obligors will promptly execute and deliver all further instruments and documents, and take (or authorize the taking of) all further action, that may be reasonably necessary or desirable, or that the Indenture Trustee or the Servicer may reasonably request, in order to perfect and protect any security interest granted or purported to be granted under the Indenture or to enable the Indenture Trustee to exercise and enforce its rights and remedies hereunder with respect to any Account Collateral. In the event of any change in name, identity or structure of any Obligor, such Obligor shall notify the Indenture Trustee thereof and such Obligor hereby authorizes the Indenture Trustee (however the Indenture Trustee shall not have the obligation) to file and record such Uniform Commercial Code financing statements (if any) as are reasonably necessary to maintain the priority of Indenture Trustee’s lien upon and security interest in the Account Collateral, and shall pay all expenses and fees in connection with the filing and recording thereof. 

Section 5.04.   Termination of Agreement.  This Agreement shall remain in full force and effect until payment and performance in full of the Obligations and the termination of the other Transaction Documents. Upon payment and performance in full of the Obligations, in accordance with their stated terms, this Agreement shall terminate and the Obligors shall be entitled to the return, at their expense, of the Account Collateral that has not been sold or otherwise applied pursuant to the terms hereof, and the Indenture Trustee shall execute such instruments and documents as may be reasonably requested and prepared by the Obligors to evidence such termination and the release of the lien hereof. 

Section 5.05.   Representations of the Obligors.  The Obligors make the following representations: 

(a)The Indenture creates a valid and continuing security interest (as defined in the applicable Uniform Commercial Code) in the Account Collateral in favor of the Indenture Trustee, which security interest (upon execution and delivery of the applicable Account Control Agreement) is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Obligors. 

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(b)The Obligors own and have good and marketable title to the Account Collateral free and clear of any lien, claim or encumbrance of any Person except as created under the Indenture other than Permitted Encumbrances. 

(c)Other than the security interest granted to the Indenture Trustee pursuant to the Indenture and the other Transaction Documents, the Obligors have not pledged, assigned, sold, granted a security interest in, or otherwise conveyed the Account Collateral.  The Obligors have received all consents and approvals required by the terms of the Collateral to the transfer to the Indenture Trustee of their interest and rights in the Collateral under the Indenture. 

(d)No Obligor has authorized the filing of any financing statements against itself, and no Obligor is aware of any financing statements that have been filed against any Obligor, that include a description of collateral covering the Account Collateral other than any financing statement relating to the security interest granted to the Indenture Trustee under the Indenture or that has been terminated.

Section 5.06.   Covenants of the Issuer.  On or before the Business Day preceding each Payment Date, the Issuer shall cause the Manager to provide the Servicer with a statement of Rents received during the immediately preceding Collection Period which represent Rents paid by Tenants pursuant to Tenant Leases that require that annual rent, quarterly rent or semi-annual rent be paid in advance, such that the Servicer may determine for inclusion in the Servicing Report which portion of Rents attributable to such Collection Period constitute the Annual Advance Rents Reserve Deposit, Quarterly Advance Rents Reserve Deposit and Semi-Annual Advance Rents Reserve Deposit, which portions shall be deposited into the Advance Rents Reserve Account. In connection with the acquisition of Additional Tenant Site Assets or Additional Obligor Tenant Site Assets funded from a Site Acquisition Account during the immediately preceding Collection Period in which such Additional Tenant Site Assets were acquired or the related Additional Asset Entity became an Obligor pursuant to a Joinder Agreement in substantially the form of Exhibit H of the Indenture, such statement shall also include for inclusion in the Servicing Report the amount of the Additional Tenant Site Assets Advance Rents Reserve Deposit that was made in respect of such Tenant Site Assets. Such statement shall be accompanied by an Officer’s Certificate and such other documents as may be reasonably required by the Servicer. 

article VI

RIGHTS AND DUTIES OF INDENTURE TRUSTEE 

Section 6.01.   Reasonable Care.  Beyond the exercise of reasonable care in the custody thereof or as otherwise expressly provided herein, the Indenture Trustee shall not have any duty as to any Account Collateral in its possession or control as agent therefor or bailee thereof or any income thereon or the preservation of rights against any Person or otherwise with respect thereto.  The Indenture Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Account Collateral in its possession if the Account Collateral is accorded treatment substantially equal to that which the Indenture Trustee accords similar collateral as a third-party agent, it being understood that the Indenture Trustee shall not be liable or responsible for any loss or damage to any of the Account Collateral, or for any diminution in value thereof, by reason of the act or omission of the Indenture Trustee, its Affiliates, agents, employees or bailees, except to the extent that such loss or damage results from the Indenture Trustee’s fraud, bad faith, gross negligence or willful misconduct.  The Indenture Trustee shall not be responsible for monitoring the Lock Box Account. The standards of care, limitation on 

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liability and rights to indemnities set forth in the Indenture shall apply to the duties and obligations of the Indenture Trustee hereunder. 

Section 6.02.   Indemnity.  The Indenture Trustee, in its capacity as such hereunder, shall be responsible for the performance only of such duties as are specifically set forth herein, and no duty shall be implied from any provision hereof.  The Indenture Trustee shall not be under any obligation or duty to perform any act which would involve it in expense or liability or to institute or defend any suit in respect hereof, or to advance any of its own monies. The Obligors shall, jointly and severally, indemnify, defend and hold the Indenture Trustee, its employees, directors, officers, managers, representatives and agents harmless from and against any loss, liability, expenses, judgments and amounts paid in settlements, cost or damage (including costs and expenses of litigation and investigations, reasonable attorneys’ fees and disbursements) incurred by the Indenture Trustee in connection with the transactions contemplated hereby, except to the extent that such loss or damage results from the Indenture Trustee’s fraud, bad faith, negligence or willful misconduct.  The foregoing indemnity shall survive the termination of this Agreement or the earlier resignation or removal of the Indenture Trustee. 

Section 6.03.   Indenture Trustee Appointed Attorney-In-Fact.  Upon the occurrence and during the continuance of an Event of Default, the Obligors hereby irrevocably constitute and appoint the Indenture Trustee as the true and lawful attorney-in-fact of the Obligors, coupled with an interest and with full power of substitution, to execute, acknowledge and deliver any instruments and to exercise and enforce every right, power, remedy, option and privilege of the Obligors with respect to the Account Collateral, and do in the name, place and stead of the Obligors, all such acts, things and deeds for and on behalf of and in the name of the Obligors, which the Obligors are required to do hereunder or under the other Transaction Documents or which the Indenture Trustee may deem reasonably necessary or desirable to more fully vest in the Indenture Trustee the rights and remedies provided for herein and to accomplish the purposes of this Agreement including the filing of any applicable Uniform Commercial Code financing statements or continuation statements in appropriate public filing offices on behalf of the Obligors.  Nothing herein shall impose an obligation on the Indenture Trustee to take any such action under this Section 6.03.  The foregoing powers of attorney are irrevocable and coupled with an interest. 

Section 6.04.   Acknowledgment of Lien/Offset Rights.  The Indenture Trustee hereby acknowledges and agrees with respect to the Accounts that (a) all funds held in the Accounts shall be held for the benefit of the Indenture Trustee as secured party, (b) the Obligors have granted to the Indenture Trustee, on behalf of the Note Owners (and the Servicer and the Manager, to the extent of the amounts owing to the Servicer and the Manager under the Transaction Documents), a first priority security interest in the Account Collateral, (c) the Indenture Trustee shall not disburse any funds from the Accounts except as provided herein and in the Indenture and (d) the Indenture Trustee shall invest and reinvest any balance of the Collection Account, any Site Acquisition Account, the Liquidated Site Replacement Account or the Reserve Accounts in Permitted Investments as directed in accordance with Section 2.04.  The Indenture Trustee hereby waives any right of offset, banker’s lien or similar rights against, or any assignment, security interest or other interest in, the Account Collateral, except as set forth in the Indenture. Notwithstanding anything in this Section 6.04, the Indenture Trustee may, from time to time, make withdrawals from the Collection Account pursuant to Section 3.03 of the Indenture. 

Section 6.05.   Reporting Procedures.  The Indenture Trustee shall make the Indenture Trustee Report available to the Obligors, the Manager and the Servicer which shall 

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specify the credits and charges to the Collection Account for the previous calendar month, as set forth in the Servicing Report. 

Section 6.06.   Further Rights of the Indenture Trustee.  The Indenture Trustee shall be entitled to all of the same rights, protections, immunities and indemnities set forth in the Indenture as if the same were specifically set forth herein. 

Section 6.07.   Securities Intermediary Same Rights.  The Securities Intermediary shall be entitled to all of the same rights, protections, immunities and indemnities afforded to the Indenture Trustee under the Indenture as if the same were specifically set forth  herein. 

article VII

ACCOUNT CONTROL PROVISIONS

Section 7.01.   Establishment and Maintenance of Pledged Accounts.  

(a)The Securities Intermediary hereby represents and warrants that it has established and currently maintains the Accounts (other than the Lock Box Account) and that the Indenture Trustee is its sole customer and entitlement holder with respect to each such account.  Each such account and any successor account,  being referred to herein individually as a “Pledged Account” and collectively as the “Pledged Accounts”. The Securities Intermediary covenants and agrees that it shall not change the name or account number of any Pledged Account without the prior written consent of the Indenture Trustee.

(b)The Securities Intermediary represents and warrants that each of the Pledged Accounts are a “securities account” (as defined in Section 8-501 of the UCC).

(c)The Securities Intermediary covenants and agrees that:  (i) all securities or other property underlying any financial assets credited to any Pledged Account shall be registered in the name of the Securities Intermediary, indorsed to the Securities Intermediary or indorsed in blank or credited to another securities account maintained in the name of the Securities Intermediary; (ii) in no case will any financial asset credited to any Pledged Account be registered in the name of any Obligor, payable to the order of any Obligor or specially indorsed to any Obligor except to the extent the foregoing have been specially indorsed to the Securities Intermediary or in blank and (iii) all property delivered to the Securities Intermediary pursuant to the Transaction Documents will be promptly credited to one of the Pledged Accounts.

Section 7.02.   “Financial Assets” Election.  The Securities Intermediary hereby agrees that each item of property (including, without limitation, all Permitted Investments and any investment property, financial asset, security, instrument or cash) credited to any Pledged Account shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC.

Section 7.03.   Indenture Trustee’s Control of the Pledged Accounts.  If at any time the Securities Intermediary shall receive any entitlement order from the Indenture Trustee (i.e., an order directing transfer or redemption of any financial asset relating to a Pledged Account), the Securities Intermediary shall comply with such entitlement order without further consent by any Obligor or any other person. If any Obligor is otherwise entitled to give any entitlement orders with respect to the Pledged Account in accordance with Section 7.04 and such 

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entitlement orders conflict with any entitlement orders of the Indenture Trustee, the Securities Intermediary shall comply with the entitlement orders issued by the Indenture Trustee.

Section 7.04.   Obligors’ Access to the Pledged Account.  It is understood and agreed that until this Agreement is terminated in accordance with the terms hereof, the Securities Intermediary shall not comply with entitlement orders of any Obligor or any person other than the Indenture Trustee without the express written consent of the Indenture Trustee to each such entitlement order.

Section 7.05.   Subordination of Lien; Waiver of Set-Off.   In the event that the Securities Intermediary has or subsequently obtains by agreement, by operation of law or otherwise a security interest in any Pledged Account or any financial assets, cash or other property credited thereto, the Securities Intermediary hereby agrees that such security interest shall be subordinate to the security interest of the Indenture Trustee.  The financial assets, money and other items credited to any Pledged Account will not be subject to deduction, set-off, banker’s lien, or any other right in favor of any person other than the Indenture Trustee.

Section 7.06.   Conflict with Other Agreements.  The Securities Intermediary hereby represents, warrants, covenants and agrees that:

(a)There are no other agreements other than the Transaction Documents entered into between the Securities Intermediary and any Obligor with respect to any Pledged Account; 

(b)It has not entered into, and until the termination of this Agreement will not enter into, any agreement with any other person relating the Pledged Accounts and/or any financial assets credited thereto pursuant to which it agrees or has agreed to comply with entitlement orders (as defined in Section 8-102(a)(8) of the UCC) of such other person;

(c)It has not entered into, and until the termination of this Agreement will not enter into, any agreement with any Obligor or the Indenture Trustee purporting to limit or condition the obligation of the Securities Intermediary to comply with entitlement orders with regards to the Pledged Accounts; and

(d)In the event of any conflict, with respect to the treatment of the Pledged Accounts, between this Agreement (or any portion thereof) and any other agreement now existing or hereafter entered into, the terms of this Agreement shall prevail.

Section 7.07.   Adverse Claims.  The Securities Intermediary represents and warrants that except for the claims and interest of the Indenture Trustee and of any Obligor in the Pledged Accounts, it does not have actual knowledge of any security interest in, lien on or claim to, or other interest in, any Pledged Account or in any “financial asset” (as defined in Section 8-102(a) of the UCC) credited thereto.  If any person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Pledged Accounts or in any financial asset carried therein of which the Securities Intermediary has actual knowledge or receives written notice, the Securities Intermediary will promptly notify the Indenture Trustee and the Obligors thereof.

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article VIII

MISCELLANEOUS 

Section 8.01.   Transfers and Other Liens.  The Issuer agrees that it will not (i) sell or otherwise dispose of any of the Account Collateral except in accordance herewith and with the Indenture or (ii) create or permit to exist any Lien upon or with respect to all or any of the Account Collateral, except for the Lien created under the Indenture and Permitted Encumbrances. 

Section 8.02.   Indenture Trustee’s Right to Perform the Obligations of the Obligors; No Liability of Indenture Trustee.  If the Obligors fail to perform any of the covenants or obligations contained herein, and such failure shall continue for a period of ten (10) Business Days after the Issuer’s receipt of written notice thereof from the Indenture Trustee, the Indenture Trustee may, but shall have no obligation to, perform such covenants or obligations, and the reasonable expenses of the Indenture Trustee incurred in connection therewith shall be payable by the Obligors to the Indenture Trustee.  Notwithstanding the Indenture Trustee’s right to perform certain obligations of the Obligors, it is acknowledged and agreed that the Obligors retain control of their Tenant Site Assets and operation thereof and notwithstanding anything contained herein or the Indenture Trustee’s exercise of any of its rights or remedies hereunder, under the Transaction Documents or otherwise at law or in equity, the Indenture Trustee shall not be deemed to be a mortgagee-in-possession of the Tenant Site Assets and shall not be subject to any liability with respect to the Tenant Site Assets or otherwise based upon any claim of lender liability. 

Section 8.03.   No Waiver.  The rights and remedies provided in this Agreement and the other Transaction Documents are cumulative and may be exercised independently or concurrently, and are not exclusive of any other right or remedy provided at law or in equity.  No failure to exercise or delay by the Indenture Trustee in exercising any right or remedy hereunder or under the Transaction Documents shall impair or prohibit the exercise of any such rights or remedies in the future or be deemed to constitute a waiver or limitation of any such right or remedy or acquiescence therein.  Every right and remedy granted to the Indenture Trustee hereunder or by law may be exercised by the Indenture Trustee at any time and from time to time, and as often as the Indenture Trustee may deem it expedient.  Any and all of the Indenture Trustee’s rights with respect to the lien and security interest granted hereunder shall continue unimpaired, and the Obligors shall be and remain obligated in accordance with the terms hereof, notwithstanding (a) any proceeding of the Obligors under the Bankruptcy Code or any bankruptcy, insolvency or reorganization laws or statutes of any state, (b) the release or substitution of Collateral at any time, or of any rights or interests therein or (c) any delay, extension of time, renewal, compromise or other indulgence granted by the Indenture Trustee in the event of any default, with respect to the Collateral or otherwise hereunder.  No delay or extension of time by the Indenture Trustee in exercising any power of sale, option or other right or remedy hereunder, and no notice or demand which may be given to or made upon the Obligors by the Indenture Trustee, shall constitute a waiver thereof, or limit, impair or prejudice the Indenture Trustee’s right, without notice (except as required by the Transaction Documents) or demand, to take any action against the Obligors or to exercise any other power of sale, option or any other right or remedy. 

14

 

 

Section 8.04.   Expenses.  The Account Collateral shall secure, and the Obligors shall pay to the Indenture Trustee in accordance with the time frames set forth in the Indenture, from time to time, all costs and expenses for which the Obligors are liable under the Indenture and as follows: 

(a)The Obligors agree to compensate and reimburse the Indenture Trustee for performing the services described herein pursuant to the Indenture Trustee fee schedule and Section 11.05 of the Indenture. 

(b)The Indenture Trustee shall be entitled to receive the amount of its fees, expenses, indemnities and other amounts pursuant to Section 3.03 and Article V of the Indenture and shall deliver an invoice of such fees to the Issuer, in accordance with the Indenture. 

(c)If insufficient funds are available to cover the amounts due under this Section 7.04, the Obligors shall pay such amounts to the Indenture Trustee in immediately available funds within five (5) Business Days of demand by the Indenture Trustee. 

Section 8.05.   Amendment.  This Agreement may not be amended, terminated or otherwise modified, except by a writing duly executed by the parties hereto and with written notice provided to the Rating Agencies by the Obligors. 

Section 8.06.   No Waiver.  No waiver of any term or condition of this Agreement, whether by delay, omission or otherwise, shall be effective unless in writing and signed by the party sought to be charged, and then such waiver shall be effective only in the specific instance and for the purpose for which given. 

Section 8.07.   Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective successors and permitted assigns. 

Section 8.08.   Notices.  All notices, demands, requests, consents, approvals and other communications (any of the foregoing, a “Notice”) required, permitted, or desired to be given hereunder shall be in writing and delivered to the parties at the addresses and in the manner provided in Section 15.04 of the Indenture. 

Section 8.09.   Captions.  All captions in this Agreement are included herein for convenience of reference only and shall not constitute part of this Agreement for any other purpose. 

Section 8.10.   No Petition.  Prior to the date that is one year and one day after the date on which the Indenture has been terminated in accordance with its terms, all Obligations under the Indenture and under the other Transaction Documents have been fully satisfied, neither the Indenture Trustee nor the Manager shall institute, or join any other Person in instituting, or authorize a trustee or other Person acting on its behalf or on behalf of others to institute, any bankruptcy, reorganization, arrangement, insolvency, liquidation or receivership proceedings under the laws of the United States of America or any state thereof against any Obligor or the Guarantor.

Section 8.12.   Governing Law; Submission to Jurisdiction.  

(a)THIS AGREEMENT SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES 

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THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.  REGARDLESS OF ANY PROVISION IN ANY OTHER TRANSACTION DOCUMENT, FOR PURPOSES OF THE UCC, WITH RESPECT TO EACH PLEDGED ACCOUNT, NEW YORK SHALL BE DEEMED TO BE THE SECURITIES INTERMEDIARY’S JURISDICTION (WITHIN THE MEANING OF SECTION 8-110 OF THE UCC). THE PLEDGED ACCOUNTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

(b)EACH PARTY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE UNITED STATES FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK OR, IF SUCH FEDERAL COURTS DO NOT HAVE SUBJECT MATTER OR DIVERSITY JURISDICTION FOR A PARTICULAR PROCEEDING, IN THE STATE COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR IN RELATION TO THIS AGREEMENT.  

Section 8.13.   Counterparts.  This Agreement may be executed in any number of counterparts (including by facsimile or other electronic means, including telecopy, email or otherwise), each of which so executed shall be deemed to be an original, but all such respective counterparts shall together constitute but one and the same instrument.  Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission (including, without limitation, via Portable Document Format or “PDF”) shall be as effective as delivery of a manually executed counterpart hereof.

Section 8.14.   Inconsistencies.  To the extent the terms of this Agreement are inconsistent with the terms of the Indenture, the terms of the Indenture shall prevail. 

Section 8.15.   Waiver of Jury Trial.  EACH OF THE PARTIES HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

[SIGNATURE PAGES FOLLOW]

16

 

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written. 

 

	
 
	
OBLIGORS:

	
 
	
 
	
 

	
 
	
LMRK ISSUER CO III LLC

LMRK PROPCO 3 LLC

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ George P. Doyle

	
 
	
 
	
Name:
	
George P. Doyle

	
 
	
 
	
Title:
	
Authorized Representative

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Issuer Taxpayer ID #: 36-4881533

[Signature Page to Cash Management Agreement]

 

	
 
	
INDENTURE TRUSTEE:

	
 
	
 
	
 

	
 
	
WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Rachel Simpson

	
 
	
 
	
Name:
	
Rachel Simpson

	
 
	
 
	
Title:
	
Vice President

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
SECURITIES INTERMEDIARY:

	
 
	
 
	
 
	
 

	
 
	
WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity, but solely as Securities Intermediary

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Rachel Simpson

	
 
	
 
	
Name:
	
Rachel Simpson

	
 
	
 
	
Title:
	
Vice President

[Signature Page to Cash Management Agreement]

 

	
 
	
MANAGER:

	
 
	
 
	
 

	
 
	
LANDMARK INFRASTRUCTURE PARTNERS GP LLC

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ George P. Doyle

	
 
	
 
	
Name:
	
George P. Doyle

	
 
	
 
	
Title:
	
Authorized Representative

 

[Signature Page to Cash Management Agreement]

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