Document:

Credit Agreement

Exhibit 10.2

CREDIT AGREEMENT
Dated as of July 9, 2014
among
VERTEX PHARMACEUTICALS INCORPORATED, 
as the Borrower,
MACQUARIE US TRADING LLC, 
as Administrative Agent,
and
The Other Lenders Party Hereto

EAST\78425679.8 

TABLE OF CONTENTS
Section    Page

		
	ARTICLE I.
	DEFINITIONS AND ACCOUNTING TERMS........................    1

		
	1.01
	Defined Terms...................................................................    1

		
	1.02
	Other Interpretive Provisions..................................................    28

		
	1.03
	Accounting Terms...............................................................    29

		
	1.04
	Rounding.........................................................................    29

		
	1.05
	Times of Day; Rates............................................................ 29

		
	ARTICLE II.
	THE COMMITMENTS AND CREDIT EXTENSIONS..............    30

		
	2.01
	The Loans........................................................................    30

		
	2.02
	Borrowings, Conversions and Continuations of Loans.....................30

		
	2.03
	Prepayments......................................................................    31

		
	2.04
	Repayment of Loans............................................................    33

		
	2.05
	Interest............................................................................    33

		
	2.06
	Fees................................................................................    34

		
	2.07
	Computation of Interest and Fees.............................................    34

		
	2.08
	Evidence of Debt................................................................    34

		
	2.09
	Payments Generally; Administrative Agent’s Clawback..................    34

		
	2.10
	Sharing of Payments by Lenders.............................................    36

		
	2.11
	Incremental Facility............................................................    37

		
	ARTICLE III.
	TAXES, YIELD PROTECTION AND ILLEGALITY...............    39

		
	3.01
	Taxes..............................................................................    39

		
	3.02
	Illegality...........................................................................44

		
	3.03
	Inability to Determine Rates....................................................    45

		
	3.04
	Increased Costs; Reserves on Eurodollar Rate Loans...................... 45

		
	3.05
	Compensation for Losses.......................................................    47

		
	3.06
	Mitigation Obligations; Replacement of Lenders...........................    47

		
	3.07
	Survival...........................................................................    48

		
	ARTICLE IV.
	CONDITIONS PRECEDENT TO CREDIT EXTENSIONS.........    48

		
	4.01
	Conditions........................................................................    48

		
	ARTICLE V.
	REPRESENTATIONS AND WARRANTIES...........................    52

		
	5.01
	Existence, Qualification and Power..........................................    52

		
	5.02
	Authorization; No Contravention.............................................    52

		
	5.03
	Governmental Authorization; Other Consents..............................    52

		
	5.04
	Binding Effect...................................................................    52

		
	5.05
	Financial Statements; No Material Adverse Effect.........................    53

		
	5.06
	Litigation........................................................................    53

		
	5.07
	No Default........................................................................    54

		
	5.08
	Ownership of Property; Liens..................................................    54

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TABLE OF CONTENTS
Section    Page

		
	5.09
	Environmental Compliance.....................................................    55

		
	5.10
	Insurance.........................................................................    56

		
	5.11
	Taxes..............................................................................    56

		
	5.12
	ERISA Compliance..............................................................    56

		
	5.13
	Subsidiaries; Equity Interests...................................................    57

		
	5.14
	Margin Regulations; Investment Company Act..............................    58

		
	5.15
	Disclosure.........................................................................    58

		
	5.16
	Compliance with Laws.........................................................    58

		
	5.17
	Taxpayer Identification Number...............................................    58

		
	5.18
	Intellectual Property; Licenses, Etc...........................................    58

		
	5.19
	OFAC..............................................................................59

		
	5.20
	Compliance of Products......................................................... 59

		
	5.21
	Anti-Corruption Laws...........................................................    62

		
	5.22
	Solvency...........................................................................    62

		
	5.23
	Casualty, Etc.....................................................................    62

		
	5.24
	Labor Matters....................................................................    62

		
	5.25
	Senior Debt.......................................................................    62

		
	ARTICLE VI.
	AFFIRMATIVE COVENANTS..........................................    62

		
	6.01
	Financial Statements............................................................    62

		
	6.02
	Certificates; Other Information................................................    63

		
	6.03
	Notices............................................................................    66

		
	6.04
	Payment of Obligations.........................................................    66

		
	6.05
	Preservation of Existence, Etc.................................................    67

		
	6.06
	Maintenance of Properties......................................................67

		
	6.07
	Maintenance of Insurance......................................................    67

		
	6.08
	Compliance with Laws.........................................................    67

		
	6.09
	Books and Records..............................................................    67

		
	6.10
	Inspection Rights; Annual Lender Meetings.................................    69

		
	6.11
	Use of Proceeds..................................................................    69

		
	6.12
	Covenant to Guarantee Obligations and Give Security......................69

		
	6.13
	Compliance with Environmental Laws.......................................    72

		
	6.14
	Further Assurances..............................................................    73

		
	6.15
	Products and Required Permits................................................    73

		
	6.16
	[Intentionally Omitted].........................................................    73

		
	6.17
	Information Regarding Collateral.............................................    73

		
	6.18
	Material Contracts...............................................................    74

		
	6.19
	Designation of Senior Debt....................................................    74

		
	6.20
	Anti-Corruption Laws..........................................................    74

		
	6.21
	Post-Closing Covenants.........................................................74

		
	ARTICLE VII.
	NEGATIVE COVENANTS................................................    75

		
	7.01
	Liens..............................................................................    75

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TABLE OF CONTENTS
Section    Page

		
	7.02
	Investments......................................................................    78

		
	7.03
	Indebtedness.....................................................................    80

		
	7.04
	Fundamental Changes..........................................................    83

		
	7.05
	Dispositions......................................................................    83

		
	7.06
	Restricted Payments............................................................    85

		
	7.07
	Change in Nature of Business................................................    86

		
	7.08
	Transactions with Affiliates...................................................    86

		
	7.09
	Burdensome Agreements......................................................    86

		
	7.10
	Customer Agreements..........................................................    87

		
	7.11
	Use of Proceeds..................................................................    87

		
	7.12
	Kalydeco Product Revenue....................................................    87

		
	7.13
	Capital Expenditures............................................................    87

		
	7.14
	Amendment of Organization Documents....................................    87

		
	7.15
	Accounting Changes............................................................    88

		
	7.16
	Prepayments, Etc. of Indebtedness............................................    88

		
	7.17
	Designation of Senior Debt....................................................    88

		
	7.18
	Amendment, Etc. of Material Contracts and Indebtedness................    88

		
	7.19
	Sanctions..........................................................................    88

		
	7.20
	Anti-Corruption Laws...........................................................    88

		
	7.21
	Pension Plan.....................................................................    88

		
	7.22
	Massachusetts Security Corporation..........................................    88

		
	ARTICLE VIII.
	EVENTS OF DEFAULT AND REMEDIES..................................................................    89

		
	8.01
	Events of Default...............................................................    89

		
	8.02
	Remedies Upon Event of Default.............................................    92

		
	8.03
	Application of Funds............................................................    92

		
	ARTICLE IX.
	ADMINISTRATIVE AGENT.............................................    92

		
	9.01
	Appointment and Authority...................................................    93

		
	9.02
	Rights as a Lender...............................................................    93

		
	9.03
	Exculpatory Provisions.........................................................    93

		
	9.04
	Reliance by Administrative Agent.............................................    94

		
	9.05
	Delegation of Duties............................................................    95

		
	9.06
	Resignation of Administrative Agent.........................................    95

		
	9.07
	Non-Reliance on Administrative Agent and Other Lenders...............    96

		
	9.08
	No Other Duties, Etc............................................................    96

		
	9.09
	Administrative Agent May File Proofs of Claim...........................    96

		
	9.10
	Collateral and Guaranty Matters..............................................    98

		
	ARTICLE X.
	CONTINUING GUARANTY.............................................99

		
	10.01
	Guaranty..........................................................................    99

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TABLE OF CONTENTS
Section    Page

		
	10.02
	Rights of Lenders...............................................................    99

		
	10.03
	Certain Waivers..................................................................    99

		
	10.04
	Obligations Independent.......................................................    100

		
	10.05
	Subrogation......................................................................    100

		
	10.06
	Termination; Reinstatement...................................................    100

		
	10.07
	Subordination....................................................................    100

		
	10.08
	Stay of Acceleration............................................................    101

		
	10.09
	Condition of Borrower.........................................................    101

		
	ARTICLE XI.
	MISCELLANEOUS.......................................................    101

		
	11.01
	Amendments, Etc...............................................................    101

		
	11.02
	Notices; Effectiveness; Electronic Communication........................    102

		
	11.03
	No Waiver; Cumulative Remedies; Enforcement...........................    104

		
	11.04
	Expenses; Indemnity; Damage Waiver.......................................    105

		
	11.05
	Payments Set Aside............................................................    107

		
	11.06
	Successors and Assigns.........................................................    107

		
	11.07
	Treatment of Certain Information; Confidentiality..........................    111

		
	11.08
	Right of Setoff...................................................................    112

		
	11.09
	Interest Rate Limitation........................................................    112

		
	11.10
	Counterparts; Integration; Effectiveness....................................    112

		
	11.11
	Survival of Representations and Warranties.................................    113

		
	11.12
	Severability.......................................................................    113

		
	11.13
	Replacement of Lenders........................................................    113

		
	11.14
	Governing Law; Jurisdiction; Etc.............................................    114

		
	11.15
	Waiver of Jury Trial.............................................................    115

		
	11.16
	No Advisory or Fiduciary Responsibility....................................    115

		
	11.17
	Electronic Execution of Assignments and Certain Other Documents...    116

		
	11.18
	USA PATRIOT Act.............................................................    116

		
	11.19
	Licenses...........................................................................    116

SIGNATURES.......................................................................................S-1

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SCHEDULES
1.01    Products    
2.01    Commitments and Applicable Percentages 
5.05    Supplement to Interim Financial Statements
5.08(b)    Existing Liens
5.08(c)    Owned Real Property
5.08(d)(i)    Leased Real Property (Lessee)
5.08(d)(ii)    Leased Real Property (Lessor)
5.08(e)    Existing Investments
5.13    Subsidiaries and Other Equity Investments; Loan Parties
5.18    Intellectual Property Matters
6.12    Guarantors
7.03    Existing Indebtedness
11.02    Administrative Agent’s Office, Certain Addresses for Notices

EXHIBITS
Form of
A    Loan Notice
B    Note
C-1    Assignment and Assumption
C-2    Administrative Questionnaire
D    United States Tax Compliance Certificates
E    Security Agreement
F    Solvency Certificate
G    Perfection Certificate

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CREDIT AGREEMENT
This CREDIT AGREEMENT (“Agreement”) is entered into as of July 9, 2014, among VERTEX PHARMACEUTICALS INCORPORATED, a Massachusetts corporation (the “Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and MACQUARIE US TRADING LLC, as Administrative Agent.
The Borrower has requested that the Lenders provide a term loan credit facility, and the Lenders are willing to do so on the terms and conditions set forth herein.
In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:
ARTICLE I.DEFINITIONS AND ACCOUNTING TERMS
1.01    Defined Terms.  As used in this Agreement, the following terms shall have the meanings set forth below:
“Abbreviated New Drug Application” means an abbreviated new drug application (including all applicable supplements and amendments that may be filed with respect thereto) filed with the FDA or any similar or successor applications or procedures seeking authorization and approval to Manufacture, package, ship, and sell a Product in the United States pursuant to the FDCA including an application under 21 U.S.C. § 355(j).
“Act” has the meaning specified in Section 11.18.
“Administrative Agent” means Macquarie US Trading LLC in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.
“Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 11.02, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders.
“Administrative Questionnaire” means an Administrative Questionnaire in substantially the form of Exhibit C-2 or any other form approved by the Administrative Agent.
“Affected Subsidiary” means (i) any direct or indirect Foreign Subsidiary that is a “controlled foreign corporation” within the meaning of Section 957 of the Code, (ii) any direct or indirect Domestic Subsidiary substantially all of the assets of which consist of Equity Interests in or Indebtedness of one or more direct or indirect Foreign Subsidiaries that are “controlled foreign corporations” within the meaning of Section 957 of the Code and (iii) any direct or indirect Domestic Subsidiary of a direct or indirect Foreign Subsidiary.
“Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

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“Agent Indemnitee” has the meaning specified in Section 9.10(c).
“Aggregate Commitments” means the Commitments of all the Lenders.
“Agreement” has the meaning specified in the introductory paragraph hereto.
“Applicable Percentage” means with respect to any Lender at any time, the percentage (carried out to the ninth decimal place) of (i) on or prior to the Closing Date, the Aggregate Commitments represented by such Lender’s Commitment at such time and (ii) thereafter, Total Outstandings represented by such Lender’s Loans at such time.  The initial Applicable Percentage of each Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.
“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit C-1 or any other form (including electronic documentation generated by MarkitClear or other electronic platform) approved by the Administrative Agent.
“Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease or similar payments under the relevant lease or other applicable agreement or instrument that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease or other agreement or instrument were accounted for as a Capitalized Lease and (c) all Synthetic Debt of such Person.
“Audited Financial Statements” means the audited consolidated balance sheet of the Borrower and its Subsidiaries for the fiscal year ended December 31, 2013, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Borrower and its Subsidiaries, including the notes thereto.
“Base Rate” means, for any day, a floating rate equal to the greater of (x) the higher of (i) the per annum rate publicly quoted from time to time by The Wall Street Journal as the “Prime Rate” in the United States (or, if The Wall Street Journal ceases quoting a base rate of the type described, either (a) the per annum rate quoted as the base rate on such corporate loans in a different national publication as selected by Administrative Agent or (b) the highest per annum rate of interest published by the Federal Reserve Board in Federal Reserve statistical release H.15 (519) entitled “Selected Interest Rates” as the Bank prime loan rate or its equivalent), and (ii) the Federal Funds Rate plus fifty (50) basis points per annum, (y) the sum of (a) the Eurodollar Rate calculated for each such day based on a Interest Period of one (1) month determined two (2) Business Days prior to the first day of the then current month plus (b) 100 basis points, for such day.  Each change in 

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any interest rate provided for in this Agreement based upon the Base Rate shall take effect at the time of such change in the Base Rate. 
“Base Rate Loan” means a Loan that bears interest based on the Base Rate.
“Borrower” has the meaning specified in the introductory paragraph hereto.
“Borrower Indemnitee” has the meaning specified in Section 11.04(b).
“Borrower Materials” has the meaning specified in Section 6.02.
“Borrowing” means a borrowing of Loans of the same Type and having the same Interest Period.
“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan, means any such day that is also a London Banking Day. 
“Capitalized Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases.
“Cash Equivalents” means any of the following types of Investments, to the extent owned by the Borrower or any of its Subsidiaries free and clear of all Liens (other than Liens created under the Collateral Documents and other Liens permitted hereunder):
(a)readily marketable obligations issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof having maturities of not more than 360 days from the date of acquisition thereof; provided that the full faith and credit of the United States of America is pledged in support thereof;
(b)    time deposits with, or insured certificates of deposit or bankers’ acceptances of, any commercial bank that (i) (A) is a Lender or (B) is organized under the laws of the United States of America, any state thereof or the District of Columbia or is the principal banking subsidiary of a bank holding company organized under the laws of the United States of America, any state thereof or the District of Columbia, and is a member of the Federal Reserve System, (ii) issues (or the parent of which issues) commercial paper rated as described in clause (c) of this definition and (iii) has combined capital and surplus of at least $1,000,000,000, in each case with maturities of not more than 180 days from the date of acquisition thereof; 
(c)    commercial paper issued by any Person organized under the laws of any state of the United States of America and rated at least “Prime-1” (or the then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P, in each case with maturities of not more than 180 days from the date of acquisition thereof; 

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(d)    Investments, classified in accordance with GAAP as current assets of the Borrower or any of its Subsidiaries, in money market investment programs registered under the Investment Company Act of 1940, which are administered by financial institutions that have the highest rating obtainable from either Moody’s or S&P, and the portfolios of which are limited solely to Investments of the character, quality and maturity described in clauses (a), (b) and (c) of this definition; 
(e)    repurchase obligations for underlying securities of the types described in clauses (a) and (b) entered into with any financial institution or recognized securities dealer meeting the qualifications specified in clause (b) above; and
(f)    other readily marketable investments permitted by the Borrower’s Investment Policy adopted by the Audit and Finance Committee of its board of directors and set forth in Schedule 1.01 hereto, with any changes consented to by the Required Lenders, whose consent shall not be unreasonably withheld or delayed; provided that any change to the Investment Policy that further restricts permitted investments shall not require such consent.
“Casualty Event” shall mean any loss of title (other than through a consensual disposition of such property in accordance with this Agreement) or any loss of or damage to or any destruction of, or any condemnation or other taking (including by any Governmental Authority) of, any property of the Borrower or any of its Subsidiaries.  “Casualty Event” shall include any taking of all or any part of any real property of any person or any part thereof, in or by condemnation or other eminent domain proceedings pursuant to any Law, or by reason of the temporary requisition of the use or occupancy of all or any part of any real property of any person or any part thereof by any Governmental Authority, or any settlement in lieu thereof.
“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980.
“CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability Information System maintained by the U.S. Environmental Protection Agency.
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

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“Change of Control” means an event or series of events by which:
(a)    any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of 35% or more of the equity securities of the Borrower entitled to vote for members of the board of directors or equivalent governing body of the Borrower on a fully-diluted basis (and taking into account all such securities that such “person” or “group” has the right to acquire pursuant to any option right);
(b)    during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors); or
(c)    the passage of thirty days from the date upon which any Person or two or more Persons acting in concert shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of the Borrower, or control over the equity securities of the Borrower entitled to vote for members of the board of directors or equivalent governing body of the Borrower on a fully-diluted basis (and taking into account all such securities that such Person or Persons have the right to acquire pursuant to any option right) representing 35% or more of the combined voting power of such securities; or
(d)    a “change of control” or any comparable term under, and as defined in, any Subordinated Indebtedness or other significant debt shall have occurred.
“Closing Date” means the first date all the conditions precedent in Section 4.01 are satisfied or waived in accordance with Section 11.01.

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“Code” means the Internal Revenue Code of 1986.
“Collateral” means all of the “Collateral” and “Mortgaged Property” or “Trust Property” or other similar term referred to in the Collateral Documents and all of the other property that is or is intended under the terms of the Collateral Documents to be subject to Liens in favor of the Administrative Agent for the benefit of the Secured Parties.
“Collateral Documents” means, collectively, the Security Agreement, the Intellectual Property Security Agreements, the Mortgages, each of the mortgages, collateral assignments, security agreements, pledge agreements or other similar agreements delivered to the Administrative Agent pursuant to Section 6.12, and each of the other agreements, instruments or documents that creates or purports to create a Lien in favor of the Administrative Agent for the benefit of the Secured Parties.
“Commitment” means, as to each Lender, its obligation to make Loans to the Borrower pursuant to Section 2.01 in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01, as such amount may be adjusted from time to time in accordance with this Agreement.
“Conditional Marketing Authorization Application” refers to a time-limited approval granted by a foreign Governmental Authority for sale of a drug in the European Union under certain conditions for its use to treat seriously debilitating or life-threatening diseases, address emergency threats and to treat orphan medical conditions.
“Confidential Information” means all non-public information, whether written, oral or in any electronic, visual or other medium, that is the subject of reasonable efforts to keep it confidential and that is owned by the Borrower or any Subsidiary or that the Borrower or any Subsidiary is licensed, authorized or otherwise granted rights under or to. 
“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.
“Copyright License” means any agreement, whether written or oral, providing for the grant of any right to use any Work under any Copyright.
“Copyrights” means (a) all proprietary rights afforded Works pursuant to Title 17 of the United States Code, including, without limitation, all rights in mask works, copyrights and original designs, and all proprietary rights afforded such Works by other countries for the full term thereof (and including all rights accruing by virtue of bilateral or international treaties and conventions thereto), whether registered or unregistered, including, but not limited to, all applications for registration, renewals, extensions, reversions or restorations thereof now or hereafter provided for 

6

 

by law and all rights to make applications for registrations and recordations, regardless of the medium of fixation or means of expression, which are owned by the Borrower or any Subsidiary or which the Borrower or any Subsidiary is licensed, authorized or otherwise granted rights under or to; and (b) all copyright rights under the copyright laws of the United States and all other countries for the full term thereof (and including all rights accruing by virtue of bilateral or international copyright treaties and conventions), whether registered or unregistered, including, but not limited to, all applications for registration, renewals, extensions, reversions or restorations of copyrights now or hereafter provided for by law and all rights to make applications for copyright registrations and recordations, regardless of the medium of fixation or means of expression, which are owned by the Borrower or any Subsidiary or which the Borrower or any Subsidiary is licensed, authorized or otherwise granted rights under or to.
“Credit Extension” means a Borrowing.
“Customer Agreement” means a license or other agreement between any Loan Party or any Affiliate of any Loan Party, on the one part, and any customer, licensee, distributor or other Person (each, a “Customer”), on the other part, for the research, development or commercialization of any product.
“Cystic Fibrosis Drug Franchise Assets” means (1) ivacaftor (tradename KALYDECO), for use in treating patients with cystic fibrosis six years of age and older who carry the G551D mutation in the CFTR gene; (2) lumacaftor in combination with ivacaftor which is being developed for potential use in treating patients twelve years and older who are homozygous for the F508del mutation in their CFTR gene; (3) VX-661 in combination with ivacaftor which is being developed for use in treating patients twelve years and older who carry certain mutations in the CFTR gene and (4) all proceeds, IP Rights, Permits and other assets related thereto and all Products, IP Rights or other assets developed or acquired in connection with cystic fibrosis. 
“DEA” means the Drug Enforcement Administration of the United States of America and any successor agency thereof.
“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.
“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.
“Default Rate” means an interest rate equal to the then Interest Rate plus 2% per annum.
“Designated Jurisdiction” means any country or territory to the extent that such country or territory itself is the subject of any Sanction.
“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any property by any Person (or the granting of 

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any option or other right to do any of the foregoing), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.
“Dollar” and “$” mean lawful money of the United States.
“Domain Names” means all domain names and URLs that are registered and/or owned by the Borrower or any Subsidiary or which the Borrower or any Subsidiary is licensed, authorized or otherwise granted rights under or to.
“Domestic Subsidiary” means any Subsidiary organized under the laws of the United States of America, any state thereof or the District of Columbia.
“Drug Application” means a New Drug Application (including a supplemental New Drug Application), a Biologics License Application, an Abbreviated New Drug Application, or a product license application, as those terms are defined in the Food, Drugs and Cosmetics Act (21 U.S.C. ch. 9 § 301 et seq.), for any Product, as appropriate, in each case of the Borrower or any Subsidiary, and equivalents thereof, including Conditional Marketing Authorizations, for submission to Governmental Authorities outside of the United States. 
“Drug Approval” means an approval, authorization or license (including, without limitation, an Investigational New Drug Application (“IND”) authorizing human testing of a drug, New Drug Application, conditional Marketing Authorization Application and Marketing Authorization Application) granted by a Governmental Authorities (including, without limitation, the FDA and the European Commission) to permit the use in human use, sale and marketing of a Product.
“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.06(b)(iii), and (iv) (subject to such consents, if any, as may be required under Section 11.06(b)(iii)).
“Environment” means ambient air, indoor air, surface water (including navigable waters, ocean waters, streams, ponds, drainage basins, and wetlands), groundwater, drinking water, soil, surface and subsurface strata, flora and fauna, and any other environmental medium or natural resource. 
“Environmental Laws” means any and all Laws, including regulations, ordinances, rules, judgments, orders, decrees, permits, agreements or governmental restrictions, relating to pollution or the protection of the Environment, to human health and safety in respect of Hazardous Materials, including those relating to the manufacture, generation, handling, transport, storage, treatment, Release or threat of a Release of or exposure to Hazardous Materials. 
“Environmental Liability” means any liabilities, monetary obligations, losses, damages, costs and expenses (including all fees, disbursements and expenses of counsel, experts, or consultants, and costs of corrective measures, investigation, feasibility studies, and remediation), fines, penalties, sanctions, indemnities, and interest contingent or otherwise of the Borrower, any other Loan Party or any of their respective Subsidiaries arising under or in connection with 

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Environmental Laws, including those directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment, disposal or other management of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
“Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law. 
“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.  For purposes of Section 6.12 and the Security Agreement, Equity Interests shall include Indebtedness that the Borrower and the Administrative Agent agree in good faith is properly treated as equity for U.S. federal income tax purposes or, if the Borrower and the Administrative Agent cannot agree on the proper treatment of the Indebtedness, as determined in the opinion of a tax advisor reasonably acceptable to each the Borrower and the Administrative Agent.
“ERISA” means the Employee Retirement Income Security Act of 1974.
“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).
“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA,; (e) the institution by the PBGC of proceedings to terminate a Pension Plan; (f) any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (g) the determination that any Pension Plan is considered an at-risk plan or a plan in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA; (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate; or (i) a failure by the Borrower or any ERISA Affiliate to meet all applicable requirements under 

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the Pension Funding Rules in respect of a Pension Plan, whether or not waived, or the failure by the Borrower or any ERISA Affiliate to make any required contribution to a Multiemployer Plan. 
“Eurodollar Rate” means:
(a)    for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable or successor rate, which rate is approved by the Administrative Agent, as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; and
(b)    for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to LIBOR, at or about 11:00 a.m., London time determined two Business Days prior to such date for U.S. Dollar deposits with a term of one month commencing that day;
provided that to the extent a comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied  in a manner consistent with market practice; provided, further that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.
“Eurodollar Rate Loan” means a Loan that bears interest at a rate based on clause (a) of the definition of “Eurodollar Rate”.
“European Commission” refers to the European Commission or any successor entity thereto.
“Event of Default” has the meaning specified in Section 8.01.
 “Excluded Taxes” means any of the following Taxes imposed on or with respect to any Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, imposed as a result of such Recipient being organized under the laws of, or having its principal office or its Lending Office  (or relevant office for receiving payments from or on account of the Borrower or making funds available to or for the benefit of the Borrower) located in, the jurisdiction imposing such Tax (or any political subdivision thereof)  (b) Other Connection Taxes, (c) U.S. federal withholding Taxes that are (or would be) required to be withheld  pursuant to a Law in effect on the date on which (i) such Recipient acquires such interest in the Loan or Commitment or becomes the Administrative Agent (other than pursuant to an assignment request by the Borrower under Section 11.13) or (ii) such Recipient changes its Lending Office (or relevant office for receiving payments from or on account of the Borrower or making funds available to or for the benefit of the Borrower), except in each case to the extent that, pursuant to Section 3.01(a)(ii), (a)(iii) or (c), amounts with respect to such Taxes were payable either to such Recipient’s predecessor 

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immediately before such Recipient became a party hereto or to such Recipient immediately before it changed its Lending Office (or relevant office for receiving payments from or on account of the Borrower or making funds available to or for the benefit of the Borrower), (d) Taxes attributable to such Recipient’s failure to comply with Section 3.01(e) (e) any U.S. federal withholding Taxes imposed pursuant to FATCA and (f) U.S. backup withholding Taxes. 
“FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.
“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantially comparable and not materially more onerous to comply with) and, in each case, any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471 (b) (1) of the Code, and any intergovernmental agreements entered into in connection therewith (and any legislation or guidance issued with respect to such intergovernmental agreements). 
“FDA” means the Food and Drug Administration of the United States of America or any successor entity thereto.
“FDCA” means the Federal Food, Drug and Cosmetic Act, as amended, 21 U.S.C. Section 301 et seq. and all regulations promulgated thereunder.
“Federal” means the federal government of the United States.
“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to the Administrative Agent on such day on such transactions as determined by the Administrative Agent.
“Fixed Rate Loan” means a Loan that bears interest in accordance with clauses (a) and (b) of the definition of “Interest Rate”.
“Foreign Recipient” means (a) if the Borrower is a U.S. Person, a Recipient that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Recipient that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.  For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
“Foreign Subsidiary” means any Subsidiary of the Borrower that is not a Domestic Subsidiary. 

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“FRB” means the Board of Governors of the Federal Reserve System of the United States.
“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.
“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.
“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
“Governmental Licenses” means all applications to and requests for approval from a Governmental Authority for the right to manufacture, import, store, market, promote, advertise, offer for sale, sell, use and/or otherwise distribute a Product, including, without limitation, any such filings filed with the FDA, and all authorizations issuing from a Governmental Authority based upon or as a result of such applications and requests, which are owned by the Borrower or any Subsidiary, acquired by the Borrower or any Subsidiary via assignment, purchase or otherwise or that the Borrower or any Subsidiary is licensed, authorized or otherwise granted rights under or to.
“Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably 

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anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.
“Guarantors” means, collectively, each Person that executes this Agreement as a Guarantor or any other Guaranty.
“Guaranty” means each Guaranty made by the Guarantors under Article X in favor of the Secured Parties, or any other guaranty substantially similar to Article X and otherwise in form and substance reasonably satisfactory to the Administrative Agent, together with each other guaranty and guaranty supplement delivered pursuant to Section 6.12.
“Hazardous Materials” means any material, chemical, compound, substance, mixture, waste or by-product (regardless of physical form or concentration) that (a) is hazardous, toxic, infectious, explosive, radioactive, carcinogenic, mutagenic, ignitable, corrosive, reactive, or otherwise deleterious to living things or the environment, or (b) is or becomes identified, defined, designated, listed, restricted or otherwise regulated under Environmental Laws. Without limiting the foregoing, Hazardous Materials include petroleum or petroleum distillates, natural gas, natural gas liquids, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, toxic mold, and infectious or medical wastes. 
“HHS” means the United States Department of Health and Human Services and any successor agency thereof.
“Immaterial Subsidiary” means any Foreign Subsidiary with annual revenues not exceeding $1,000,000 and with total assets not exceeding $1,000,000.
“Impacted Loans” has the meaning assigned to such term in Section 3.03.
“Increase Effective Date” has the meaning assigned to such term in Section 2.11(a).
“Increase Joinder” has the meaning assigned to such term in Section 2.11(c).
“Incremental Commitments” has the meaning assigned to such term in Section 2.11(b).
“Incremental Loan Maturity Date” has the meaning assigned to such term in Section 2.11(c).
“Incremental Loans” means any loans made pursuant to any Incremental Commitments.
“IND” has the meaning specified in the definition of “Drug Approval”.
“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:
(a)    all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

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(b)    the maximum amount of all direct or contingent obligations of such Person arising under standby letters of credit, bankers’ acceptances, bank guaranties, surety bonds and similar instruments;
(c)    net obligations of such Person under any Swap Contract;
(d)    all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business and contingent obligations);
(e)    indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;
(f)    all Attributable Indebtedness in respect of Capitalized Leases and Synthetic Lease Obligations of such Person and all Synthetic Debt of such Person; 
(g)    all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest in such Person or any other Person or any warrant, right or option to acquire such Equity Interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and
(h)    all Guarantees of such Person in respect of any of the foregoing.
For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.
 “Information” has the meaning specified in Section 11.07.
“Intangible Assets” means assets that are considered to be intangible assets under GAAP, including customer lists, goodwill, computer software, copyrights, trade names, trademarks, patents, franchises, licenses, unamortized deferred charges, unamortized debt discount and capitalized research and development costs.
“Intellectual Property Security Agreement” has the meaning specified in Section 4.01(a)(iv).

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“Interest Payment Date” means, (a) as to any Eurodollar Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan or Fixed Rate Loan, the first Business Day of each January, April, July and October and the Maturity Date.
“Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate Loan is converted to or continued as a Eurodollar Rate Loan and ending on the date one, two, three or six months thereafter (in each case, subject to availability), as selected by the Borrower in its Loan Notice; provided that:
(i)any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar Rate Loan, such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;
(ii)    any Interest Period pertaining to a Eurodollar Rate Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and
(iii)    no Interest Period shall extend beyond the Maturity Date.
“Interest Rate” means, from time to time, the following percentages per annum as set forth below:
(a)    at any time on and after the Closing Date, but subject to clauses (b) – (d) below, 7.20 % per annum;
(b)    at any time on and after the first full quarterly Interest Payment Date that occurs after the later of (i) the Administrative Agent has received a certificate from the Borrower certifying the FDA approval in the United States of a Product with a label claim for treating patients with cystic fibrosis 12 years of age and older who are homozygous with the F508del population and (ii) the one year anniversary of the Closing Date, in each case, until the second anniversary of the Closing Date, 6.20% per annum;
(c)    at any time on and after the second anniversary of the Closing Date in the event the event in clause (b)(i) above has not been satisfied, the Eurodollar Rate plus 7.50% (or, at any time the Interest Rate is based on the Base Rate in accordance with this Agreement, the Base Rate plus 6.50%);
(d)    at any time on and after the second anniversary of the Closing Date in the event the event in clause (b)(i) above has been satisfied, the Eurodollar Rate plus 5.00% (or, at any time the Interest Rate is based on the Base Rate in accordance with this Agreement, the Base Rate plus 4.00%).

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“Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or interest in, another Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit or all or a substantial part of the business of, such Person (other than ordinary course trade payables).  For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.
“IP Event of Default” means the occurrence of any of the following events:
(a)    the institution of any proceeding by the FDA or similar Governmental Authority to temporarily order the withdrawal of any Product or Product category  from the market or to permanently enjoin the Borrower or any Subsidiary or any representative of the Borrower or any Subsidiary from manufacturing, marketing, selling or distributing any Product or Product category wherein such institution, withdrawal or injunction could reasonably be expected to result in a Material Adverse Effect or, solely with respect to the Cystic Fibrosis Drug Franchise Assets, could reasonably be expected to result in liabilities or loss of revenue in excess of $50,000,000 or a Material Adverse Effect;
(b)    the institution of any action or proceeding by the DEA, FDA, or any other Governmental Authority to revoke, suspend, reject, withdraw, limit, or restrict any Required Permit held by the Borrower or any Subsidiary or any representative of the Borrower or any Subsidiary and any such institution, revoke, suspension, rejection, withdrawal, limitation, or restriction could reasonably be expected to result in a Material Adverse Effect or, solely with respect to the Cystic Fibrosis Drug Franchise Assets, could reasonably be expected to result in liabilities or loss of revenue in excess of $50,000,000 or a Material Adverse Effect;
(c)    the commencement of any enforcement action against the Borrower or any Subsidiary by the DEA, FDA, or any other Governmental Authority wherein such enforcement action could reasonably be expected to result in a Material Adverse Effect or, solely with respect to the Cystic Fibrosis Drug Franchise Assets, could reasonably be expected to result in liabilities or loss of revenue in excess of $50,000,000 or a Material Adverse Effect;
(d)    the Recall of any Product from the market, the voluntary withdrawal of any Products from the market, or the discontinuation of the sale of any Products primarily due to the threat of Recall, in each case which could reasonably be expected to result in a Material Adverse Effect or, solely with respect to the Cystic Fibrosis Drug Franchise Assets, could reasonably be expected to result in liabilities or loss of revenue in excess of $50,000,000 or a Material Adverse Effect;
(e)    a change in Law, including a change in FDA or DEA policies or procedures, occurs which would reasonably be expected to have a Material Adverse Effect; or

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(f)    the termination of any agreement with a manufacturer that supplies any Product or any component of any Product or any material change to any agreement with a manufacturer that supplies any Product or any components of any Product, in each case, that is not replaced by a reasonably equivalent agreement (or any such material change is not fully ameliorated by a curative agreement, supplement or amendment) within a reasonable period of time and, as a consequence of such failure to replace (or amend or supplement), the loss of such agreement or material change to such agreement would reasonably be expected to have a Material Adverse Effect.
“IP Rights” means, collectively, all Confidential Information, all Copyrights, all Copyright Licenses, all Domain Names, all Drug Applications, all Governmental Licenses, all Other Intellectual Property, all Other IP Agreements, all Patents, all Patent Licenses, all Proprietary Databases, all Proprietary Software, all Trademarks, all Trademark Licenses, all Trade Secrets, all Websites and all Website Agreements.
“IRS” means the United States Internal Revenue Service.
“Kalydeco Product” means ivacaftor for use in treating patients six years and older who carry certain mutations in the CFTR gene.
“Kalydeco Product US Revenue” means, with respect to any date of determination, total revenue from sales of the Kalydeco Product derived from customers located in the United States over the trailing twelve month period ending on such date of determination, as determined on a consolidated basis in accordance with GAAP and otherwise calculated in a manner substantially consistent with the calculations for “revenue” in the Borrower’s financial statements delivered under Sections 6.01(a) and (b).
“Kalydeco Product US and Foreign Revenue” means, with respect to any date of determination, total revenue from sales of the Kalydeco Product derived from customers located in the United States and in other jurisdictions over the trailing twelve month period ending on such date of determination, which revenue, if consisting of currency other than US Dollars, will be calculated using the foreign exchange rates prevailing as of the Closing Date, as determined on a consolidated basis in accordance with GAAP and calculated in a manner substantially consistent with the calculations for “revenue” in the Borrower’s financial statements delivered under Sections 6.01 (a) and (b).
“Knowledge” means, (a) with respect to any natural Person’s knowledge of a matter in question, knowledge after due inquiry of such Person and (ii) with respect to any Loan Party or any Subsidiary’s knowledge of a matter in question, knowledge after due inquiry of such Person’s Responsible Officers.
“Laws” means, collectively, all international, foreign, Federal, state and local statutes, common law, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable 

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administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.
“Lender” has the meaning specified in the introductory paragraph hereto.
“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent, which office may include any Affiliate of such Lender or any domestic or foreign branch of such Lender or such Affiliate. Unless the context otherwise requires each reference to a Lender shall include its applicable Lending Office. 
“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, easement, right-of-way or other encumbrance on title to real property, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, and any financing lease having substantially the same economic effect as any of the foregoing). 
“Loan” means an extension of credit by a Lender to the Borrower under Article II.
“Loan Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) each Guaranty, (d) the Collateral Documents and (e) each fee letter entered into with the Borrower and Administrative Agent or any Lender. 
“Loan Notice” means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans, which shall be substantially in the form of Exhibit A or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower.
“Loan Parties” means, collectively, the Borrower and each Guarantor.
“London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar market. 
“Make Whole Premium” means, on any date of prepayment of any Loan prior to the second anniversary of the Closing Date, the present value of all required interest payments due on the amount of such Loan prepaid from the date of prepayment through and including the second anniversary of the Closing Date (excluding accrued interest) (assuming that all amortization payments would have been made on a timely basis discounted to the date of prepayment on a quarterly basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points.

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“Market Withdrawal” means a Person’s removal or correction of a distributed product which involves a minor violation that would not be subject to legal action by the FDA or which involves no violation, e.g., normal stock rotation practices, routine equipment adjustments and repairs, etc., as that term is defined in 21 C.F.R. 7.3(j).
“Massachusetts Security Corporation” means a Person that qualifies as a Massachusetts security corporation under Mass. Gen. L. c. 63, §38B, but only to the extent, and during the time period, it so qualifies.
“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent) or financial condition of the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the rights and remedies of the Administrative Agent or any Lender under the Loan Documents, or of the ability of the Loan Parties to perform their obligations under the Loan Documents; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the Loan Parties of the Loan Documents to which it is a party.
“Material Contract” means, with respect to any Person, each contract to which such Person is a party involving aggregate consideration payable to or by such Person of $15,000,000 or more or otherwise material to the business, condition (financial or otherwise), operations or properties of the Borrower and its Subsidiaries, taken as a whole.
“Material IP Rights” means, as of any date of determination, IP Rights that as of such date are considered to have a material financial value to the operation or business of the Borrower or its Subsidiaries, taken as a whole; provided, however, that any IP Rights that would otherwise be considered Material IP Rights, which are developed or acquired by the Company or its Subsidiaries after the Closing Date, shall be considered to be Material IP Rights as of the date of determination described above.
“Maturity Date” means July 9, 2017; provided, however, that if such date is not a Business Day, the Maturity Date shall be the next Business Day.
“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto. 
“Mortgage” means deeds of trust, trust deeds, deeds to secure debt, mortgages, leasehold mortgages and leasehold deeds of trust, together with the fixture filings and assignments of leases and rents referred to therein, duly executed by the appropriate Loan Party.
“Mortgage Policy” fully paid American Land Title Association Lender’s Extended Coverage title insurance policies, with endorsements and in amounts reasonably acceptable to the Administrative Agent, issued, coinsured and reinsured by title insurers reasonably acceptable to the Administrative Agent, insuring the Mortgages to be valid first and subsisting Liens on the property described therein, free and clear of all defects (including, but not limited to, mechanics’ and materialmen’s Liens) and encumbrances, excepting only Permitted Encumbrances, and providing for such other affirmative insurance and such coinsurance and direct access reinsurance as the Administrative Agent may reasonably deem necessary or desirable. 

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“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.
“Multiple Employer Plan” means a Plan which has two or more contributing sponsors (including the Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.
“Net Cash Proceeds” means (a) with respect to any Disposition by the Borrower or any of its Subsidiaries, the excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with such transaction (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) the principal amount of any Indebtedness that is secured by the applicable asset and that is required to be repaid in connection with such transaction (other than Indebtedness under the Loan Documents), (B) the reasonable and customary out-of-pocket expenses incurred by the Borrower or such Subsidiary in connection with such transaction and (C) taxes reasonably estimated to be actually payable in connection therewith (including Taxes imposed on the distribution or repatriation of any such Net Cash Proceeds); provided that, if the amount of any estimated taxes pursuant to subclause (C) exceeds the amount of taxes actually required to be paid in cash in respect of such Disposition, the aggregate amount of such excess shall constitute Net Cash Proceeds and (b) with respect to any Casualty Event, the cash insurance proceeds, condemnation awards and other compensation received by the Borrower or any of its Subsidiaries in respect thereof, net of all reasonable costs and expenses incurred in connection with the collection of such proceeds, awards or other compensation in respect of such Casualty Event.
“New Drug Application” means a new drug application as defined in the Act, and the regulations promulgated thereunder, or any corresponding application for Regulatory Approval in a country or jurisdiction other than the United States.
“Note” means a promissory note made by the Borrower in favor of a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit B.
“Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan, in each case whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
“Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with 

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respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document), or sold or assigned an interest in any Loan or Loan Documents.
“Other Intellectual Property” means all worldwide intellectual property rights, industrial property rights, proprietary rights and common-law rights, whether registered or unregistered, which are not otherwise included in Confidential Information, Copyrights, Copyright Licenses, Domain Names, Governmental Licenses, Other IP Agreements, Patents, Patent Licenses, Trademarks and Trademark Licenses, Proprietary Databases, Proprietary Software, Websites, Website Agreements and Trade Secrets, including, without limitation, all rights to and under all new and useful algorithms, concepts, data (including all clinical data relating to a Product), databases, designs, discoveries, inventions, know-how, methods, processes, protocols, show-how, software (other than commercially available, off-the-shelf software that is not assignable in connection with a Change of Control), specifications for Products, techniques, technology, trade dress and all improvements thereof and thereto, which is owned by the Borrower or any Subsidiary or which the Borrower or any Subsidiary is licensed, authorized or otherwise granted rights under or to, and which is used by the Borrower or any other Person to advertise, manufacture, import, market, promote, offer for sale, sell, use and/or otherwise distribute a Product.
“Other IP Agreements” means any agreement, whether written or oral, providing for the grant of any right under any Confidential Information, Governmental Licenses, Proprietary Database, Proprietary Software, Trade Secret and/or any other IP Rights, to the extent that the grant of any such right is not otherwise the subject of a Copyright License, Trademark License, Patent License or Website Agreement.
“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are imposed with respect to an assignment, grant of participation, designation of new office for receiving payments by or on account of the Borrower or other transfer (other than an assignment or designation of a new office made pursuant to Section 3.06). 

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“Outstanding Amount” means, on any date, the aggregate outstanding principal amount of Loans after giving effect to any borrowings and prepayments or repayments thereof occurring on such date.
“Participant” has the meaning specified in Section 11.06(d).
“Participant Register” has the meaning specified in Section 11.06(d).
“PBGC” means the Pension Benefit Guaranty Corporation.
“Pension Act” means the Pension Protection Act of 2006.
“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof) to Pension Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.
“Pension Plan” means any employee pension benefit plan (including a Multiple Employer Plan or a Multiemployer Plan) that is maintained or is contributed to by the Borrower and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.
“Perfection Certificate” shall mean a certificate in the form of Exhibit G or any other form approved by the Administrative Agent, as the same shall be supplemented from time to time by an additional Perfection Certificate, supplement or otherwise.
“Permits” means licenses, certificates, accreditations, product clearances or approvals, provider numbers or provider authorizations, marketing authorizations, other authorizations, registrations, permits, consents and approvals required in connection with the conduct of Borrower’s or any Subsidiary’s business or to comply with any applicable Laws, including drug listings and drug establishment registrations under 21 U.S.C. Section 510, registrations issued by DEA under 21 U.S.C. Section 823 (if applicable to any Product), Permits issued by Governmental Authorities outside of the United States or those issued by Federal, state or local government  for the conduct of Borrower’s or any Subsidiary’s business.
“Permitted Acquisition” means the purchase or other acquisition, by merger or otherwise, by the Borrower or any of its Subsidiaries of all or at least a majority of the Equity Interests in, or all or substantially all the assets of (or all or substantially all the assets constituting a business unit, division, product line or line of business of) any Person; provided that (a) in the case of any purchase or other acquisition of Equity Interests in a Person, such Person, upon the consummation of such acquisition, will become a Guarantor to the extent required by Section 6.12 (including as a result of a merger, amalgamation or consolidation between any Subsidiary and such Person), (b) all transactions related thereto are consummated in accordance in all material respects with requirements of all Laws and, in the case of any acquisition of a Person, the board of directors or equivalent governing body of such acquired Person or its selling equityholders shall have approved 

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such purchase or other acquisition, (c) the business of such Person, or such assets, as the case may be, constitute a business permitted by Section 7.07, (d) with respect to each such purchase or other acquisition, all actions required to be taken with respect to such newly created or acquired Subsidiary (including each subsidiary thereof) or assets in order to satisfy the requirements set forth in Section 6.12 to the extent applicable shall have been taken (or arrangements for the taking of such actions within the applicable times set forth in Section 6.12 (or by such later date reasonably satisfactory to the Administrative Agent) shall have been made), (e) both immediately before and after giving effect to any such purchase or other acquisition, no Event of Default shall have occurred and be continuing, (f) the total cash consideration (including all deferred contingent and non-contingent payment obligations to the sellers thereof and all assumptions of debt and similar liabilities in connection therewith) paid by or on behalf of the Borrower and its Subsidiaries for any such purchase or other acquisition, when aggregated with the total cash consideration paid by or on behalf of the Borrower and its Subsidiaries for all other purchases and other Investments made by the Borrower and its Subsidiaries pursuant to Sections 7.02(h) and 7.02(i) shall not exceed $100,000,000 per year, subject to the further provisions of Section 7.02, and (g) the Borrower shall have delivered to the Administrative Agent a certificate of a Responsible Officer certifying that all the requirements set forth in this definition have been satisfied with respect to such purchase or other acquisition.
“Permitted Encumbrances” shall mean Liens of the type described in clauses (a), (c), (d) and (g) of Section 7.01 and such Liens as identified on the Mortgage Policy applicable to such property and acceptable to the Administrative Agent.
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
“Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Plan), maintained for employees of the Borrower or any ERISA Affiliate or any such Plan to which the Borrower or any ERISA Affiliate is required to contribute on behalf of any of its employees.
“Platform” has the meaning specified in Section 6.02.
“Product” means any product advertised, developed, imported, manufactured, marketed, offered for sale, promoted, sold, tested, used or otherwise distributed by the Borrower or any Subsidiary in connection with or that embody, in whole or in part, the IP Rights, including without limitation those products set forth on Schedule 1.01 (as updated from time to time in accordance with the terms of this Agreement), provided that, (i) if Borrower shall fail to comply with its obligations under this Agreement to give notice to Administrative Agent and update Schedule 1.01 prior to selling or marketing any new Product, any such improperly undisclosed Product shall be deemed to be included in this definition and (ii) “Product” shall not include Incivek or Lexiva.
“Proprietary Databases” means any material non-public proprietary database that is owned by the Borrower or any Subsidiary or that the Borrower or any Subsidiary is licensed, authorized or otherwise granted rights under or to.

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“Proprietary Software” means any proprietary software owned, licensed or otherwise used, other than any software that is generally commercially available, off-the-shelf and/or open source including, without limitation, the object code and source code forms of such software and all associated documentation, which is owned by the Borrower or any Subsidiary or which the Borrower or any Subsidiary is licensed, authorized or otherwise granted rights under or to.
“Public Lender” has the meaning specified in Section 6.02.
“Recall” means a Person’s removal or correction of a marketed product that the FDA considers to be in violation of the laws it administers and against which the FDA would initiate legal action, e.g., seizure, as that term is defined in 21 C.F.R. 7.3(g).
“Recipient” means the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of any Loan Party hereunder.
“Register” has the meaning specified in Section 11.06(c).
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates. “Release” means any release, spill, emission, discharge, deposit, disposal, leaking, pumping, pouring, dumping, emptying, injection or leaching into the Environment, or into, within, from or through any building, structure or facility.
“Relevant Foreign Jurisdictions” means Australia, Canada, Ireland, United Kingdom, France and Germany.
“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.
“Required Cash” has the meaning specified in the proviso following Section 7.02.
“Required Lenders” means, at any time, Lenders having Total Outstandings representing more than 50% of the Total Outstandings of all Lenders.  
“Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer, assistant treasurer or controller of a Loan Party, and solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of a Loan Party.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.
“Required Permit” means a Permit issued or required under Laws applicable to the business of the Borrower or any Subsidiary or necessary in the manufacturing, importing, exporting, possession, ownership, warehousing, marketing, promoting, sale, labeling, furnishing, distribution or delivery of goods or services under Laws applicable to the business of the Borrower or any Subsidiary or any Drug Application (including without limitation, at any point in time, all licenses, 

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approvals and permits issued by the FDA or any other applicable Governmental Authority within or outside of the United States necessary for the testing, manufacture, marketing or sale of any Product by the Borrower or any Subsidiary as such activities are being conducted by the Borrower or such Subsidiary with respect to such Product at such time).
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any capital stock or other Equity Interest of any Person or any of its Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on account of any return of capital to any Person’s stockholders, partners or members (or the equivalent of any thereof), or any option, warrant or other right to acquire any such dividend or other distribution or payment.
“Safety Notice” means any “dear doctor” letter, safety alert, “serious adverse event” report or other notice of action relating to an alleged lack of safety or regulatory compliance of any Product issued by the Borrower or any Subsidiary, and/or other any Governmental Authority, to the extent that the events or circumstances underlying such letter, alert, report or notice could reasonably expected to result in a liability in excess of the Threshold Amount.  
“Sanction(s)” means any international economic sanction administered or enforced by the United States Government (including without limitation, OFAC), the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority.
“S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., and any successor thereto.
“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.
“Secured Parties” means, collectively, the Administrative Agent, the Lenders, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.05, and the other Persons the Obligations owing to which are or are purported to be secured by the Collateral under the terms of the Collateral Documents.
“Security Agreement” has the meaning specified in Section 4.01(a)(iii).
“Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business.  

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The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
“Specified Loan Party” means any Loan Party that is not an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving effect to Section 10.10).
“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower.
“Subordinated Indebtedness” shall mean Indebtedness of any Company that is by its terms subordinated in right of payment to all or any portion of the Obligations. 
“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.
“Swap Obligations” means with respect to any Guarantor any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act. 
“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

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“Synthetic Debt” means, with respect to any Person as of any date of determination thereof, all obligations of such Person in respect of transactions entered into by such Person that are intended to function primarily as a borrowing of funds (including any minority interest transactions that function primarily as a borrowing) but are not otherwise included in the definition of “Indebtedness” or as a liability on the consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP. 
“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so‐called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property (including sale and leaseback transactions), in each case, creating obligations that do not appear on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). 
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Threshold Amount” means $15,000,000.
 “Total Outstandings” means the aggregate Outstanding Amount of all Loans.
“Trademark License” has the meaning specified in the Security Agreement.
“Trademarks” has the meaning specified in the Security Agreement.
“Trade Secrets” has the meaning specified in the Security Agreement.
“Treasury Rate” means, on any date of prepayment of any Loan, the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15(519) which has become publicly available at least two Business Days prior to the prepayment date (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from the redemption date to second anniversary of the Closing Date; provided, however, that if such period is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Administrative Agent shall obtain the Treasury Rate by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given.
“Type” means, with respect to a Loan, its character as a Fixed Rate Loan, Base Rate Loan or a Eurodollar Rate Loan.
“UCC” means the Uniform Commercial Code as in effect in the State of New York provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect from time 

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to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.
“United States” and “U.S.” mean the United States of America.
“U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.
“U.S. Tax Compliance Certificate” has the meaning specified in Section 3.01(e)(ii)(B)(III).
“Websites” means all websites that the Borrower or any Subsidiary shall operate, manage or control through a Domain Name, whether on an exclusive basis or a nonexclusive basis, including, without limitations, all content, elements, data, information, materials, hypertext markup language (HTML), software and code, works of authorship, textual works, visual works, aural works, audiovisual works and functionality embodied in, published or available through each such website and all IP Rights in each of the foregoing.
“Website Agreements” means all agreements between the Borrower and/or any Subsidiary and any other Person pursuant to which such Person provides any services relating to the hosting, design, operation, management or maintenance of any Website, including without limitation, all agreements with any Person providing website hosting, database management or maintenance or disaster recovery services to the Borrower and/or any Subsidiary and all agreements with any domain name registrar, as all such agreements may be amended, supplemented or otherwise modified from time to time.
“Work” means any work or subject matter that is subject to protection pursuant to Title 17 of the United States Code.
1.02    Other Interpretive Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:
(a)    The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “hereto”, “herein”, “hereof” and “hereunder”, and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles 

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and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
(b)    In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”; and the word “through” means “to and including”.
(c)    Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.
1.03    Accounting Terms.
(a)    Generally.  All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.
(b)    Changes in GAAP.  If at any time any change in GAAP  would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (A) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (B) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.
1.04    Rounding.  Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed 

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herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).
1.05    Times of Day; Rates.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).
The Administrative Agent does not warrant, nor accept responsibility, nor shall the Administrative Agent have any liability with respect to the administration, submission or any other matter related to the rates in the definition of “Eurodollar Rate” or with respect to any comparable or successor rate thereto.
ARTICLE II.    THE COMMITMENTS AND CREDIT EXTENSIONS
2.01    The Loans.  Subject to the terms and conditions set forth herein, each Lender severally agrees to make Loans on the Closing Date not to exceed such Lender’s Commitment.  The Borrowing shall consist of Loans made simultaneously by the Lenders in accordance with their respective Commitments.  Amounts borrowed under this Section 2.01 and repaid or prepaid may not be reborrowed.  Loans may be Fixed Rate Loans, Base Rate Loans or Eurodollar Rate Loans as further provided herein, but the initial Loans borrowed hereunder will be borrowed as Fixed Rate Loans.
2.02    Borrowings, Conversions and Continuations of Loans.  
(c)    Each Borrowing, each conversion of Loans from one Type to the other (other than a Fixed Rate Loan), and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable written notice to the Administrative Agent, in the form of a Loan Notice in the form attached hereto as Exhibit A.  Each such Loan Notice must be received by the Administrative Agent not later than 11:00 a.m. one Business Day before the Closing Date or three Business Days prior to the requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans. Each Loan Notice for a Borrowing (whether telephonic or written) shall specify (i) the requested date of the Borrowing (which shall be a Business Day),(ii) the principal amount of Loans to be borrowed, (iii) wire instructions for the Borrower, and (iv) for a Borrowing of Eurodollar Rate Loans, the duration of the Interest Period with respect thereto.  Each conversion to or continuation of Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Each Loan Notice for such conversion or continuation of Loans shall specify (i) whether the Borrower is requesting a conversion of Loans from one Type to the other (other than Fixed Rate Loans), or a continuation of Eurodollar Rate Loans, (ii) the requested date of the conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be converted or continued, (iv) to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Loans shall be continued as the same Type of Loan (other than as set forth in the definition of Interest Rate). If the Borrower requests a conversion to, or continuation of Eurodollar Rate Loans in any such Loan Notice, but fails to specify an Interest Period, 

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it will be deemed to have specified an Interest Period of one month.  Fixed Rates Loans shall automatically be converted to Eurodollar Rate Loans as described in the definition of Interest Rate.
(d)    Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its Applicable Percentage of the applicable Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any automatic continuation of Loans described in Section 2.02(a).  In the case of a Borrowing, each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Loan Notice.  Upon satisfaction of the applicable conditions set forth in Section 4.01, the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the books of the Administrative Agent with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower.
(e)    Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Rate Loan.  During the existence of a Default, no Loans may be requested as, converted to or continued as Eurodollar Rate Loans without the consent of the Administrative Agent.
(f)    The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest rate.  At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in the Base Rate promptly following the public announcement of such change.
(g)    After giving effect to all Borrowings, all conversions of Loans from one Type to the other (other than Fixed Rate Loans), and all continuations of Loans as the same Type, there shall not be more than six (6) Interest Periods in effect.
2.03    Prepayments.
(a)    Optional.  Subject to the payment of any required prepayment premium, the Borrower may, upon prior written notice to the Administrative Agent, at any time or from time to time voluntarily prepay Loans in whole or in part; provided that (i) such notice must be received by the Administrative Agent not later than 11:00 a.m. (A) three Business Days prior to any date of prepayment of Eurodollar Rate Loans and (B) one Business Day prior to the date of prepayment of any other Loans; and (ii) any prepayment of Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof or, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of such Loans.  The Administrative Agent will promptly notify each Lender of its receipt of each such notice, 

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and of the amount of such Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.  Any prepayment of a Loan shall be accompanied by all accrued interest on the amount prepaid, together with any premiums required under clause (c) below and additional amounts required pursuant to Section 3.05.  Each prepayment of the outstanding Loans pursuant to this Section 2.03(a) shall be applied to the principal repayment installments thereof on a pro-rata basis, and each prepayment shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages.
(b)    Mandatory.
(i)    If the Borrower or any of its Subsidiaries Disposes of any property permitted by Section 7.05(g) and 7.05(k) which results in the realization by such Person of Net Cash Proceeds in excess of $1,000,000 in any fiscal year or realizes any Net Cash Proceeds in excess of $1,000,000 in any fiscal year in connection with a Casualty Event, the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of such Net Cash Proceeds within one Business Day after receipt thereof by such Person (such prepayments to be applied as set forth in clause (iii) below), unless no Event of Default has occurred and is continuing and such Person receives such Net Cash Proceeds during a fiscal quarter in which (i) sales from the Kalydeco Product for the most recently ended fiscal quarter equal or exceed $100,000,000 and (ii) the Borrower is in compliance with Section 7.12; provided, however, that, with respect to any Net Cash Proceeds realized under a Disposition or Casualty Event described in this Section 2.03(b)(i), at the election of the Borrower (as notified by the Borrower to the Administrative Agent on or prior to the date of such Disposition or on or prior to the date Net Cash Proceeds are realized in connection with a Casualty Event, as the case may be), and so long as no Event of Default shall have occurred and be continuing, the Borrower or such Subsidiary may reinvest all or any portion of such Net Cash Proceeds in operating assets so long as within 365 days after the receipt of such Net Cash Proceeds, such purchase shall have been consummated (as certified by the Borrower in writing to the Administrative Agent); and provided further, however, that an amount equal to any Net Cash Proceeds not subject to such definitive agreement or so reinvested shall be immediately applied to the prepayment of the Loans as set forth in this Section 2.03(b)(i).
(ii)    Upon the incurrence or issuance by the Borrower or any of its Subsidiaries of any Indebtedness (other than Indebtedness expressly permitted to be incurred or issued pursuant to Section 7.03), the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of all Net Cash Proceeds received therefrom within one Business Day after receipt thereof by the Borrower or such Subsidiary (such prepayments to be applied as set forth in clause (iii) below).
(iii)    Each prepayment of Loans pursuant to this Section 2.03(b) shall be (A) accompanied by prior written notice to the Administrative Agent of the same, provided by 11 a.m. one Business Day prior to the date of prepayment, and (B)  applied to the principal 

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repayment installments thereof on a pro-rata basis, and each such prepayment shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages.  
(c)    Prepayment Premium.  If all or any portion of the Loans are prepaid, or required to be prepaid due to acceleration or otherwise, pursuant to this Section 2.03, Article VIII or otherwise (other than in accordance with Section 2.04) prior to the second anniversary of the Closing Date, then, in all cases, the Borrower shall pay to the Lenders, for their respective ratable accounts, on the date on which such prepayment is paid or required to be paid, in addition to the other Obligations so prepaid or required to be prepaid, the Make Whole Premium.
2.04    Repayment of Loans.
The Borrower shall repay to the Lenders the aggregate principal amount of all Loans outstanding on the following dates in the respective amounts set forth opposite such dates (which amounts shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.03):
	
		
	Date
	Amount

	Closing Date to September 30, 2015
	$0.00

	October 1, 2015
	$15,000,000

	January 1, 2016
	$15,000,000

	April 1, 2016
	$15,000,000

	July 1, 2016
	$15,000,000

	October 1, 2016
	$60,000,000

	January 1, 2017
	$60,000,000

	April 1, 2017
	$60,000,000

	Maturity Date
	$60,000,000

provided, however, that the final principal repayment installment of the Loans shall be repaid on the Maturity Date and in any event shall be in an amount equal to the aggregate principal amount of all Loans outstanding on such date.  Additionally, to the extent any of the foregoing payments falls on a non-Business Day, it shall be paid on the next Business Day. Any Incremental Loans made in accordance with Section 2.10 will amortize in the manner set forth in the relevant Increase Joinder.
2.05    Interest.
(a)    Subject to the provisions of subsection (b) below, the Loans shall bear interest at the rate per annum equal to the Interest Rate.
(b)    If any amount of principal of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

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(c)    Upon the request of the Required Lenders, while any Event of Default exists, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.  
(d)    Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.
(e)    Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.
2.06    Fees.  The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.  Unless expressly provided for in such writing, such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.
2.07    Computation of Interest and Fees.  All computations of interest for Fixed Rate Loans Base Rate Loans (including Base Rate Loans determined by reference to the Eurodollar Rate) shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.09(a), bear interest for one day.  Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.
2.08    Evidence of Debt.
(a)    The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business.  Subject to Section 11.06(c), the accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Subject to Section 11.06(c), upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which 

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shall evidence such Lender’s Loans in addition to such accounts or records.  Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.
2.09    Payments Generally; Administrative Agent’s Clawback.
(a)    General.  All payments to be made by the Borrower shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent after 2:00 p.m. may be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.
(b)    Payments by Borrower; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have received notice from the Borrower prior to the time at which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.
A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under this subsection (b) shall be conclusive, absent manifest error.
(c)    Failure to Satisfy Conditions Precedent.  If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.

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(d)    Obligations of Lenders Several.  The obligations of the Lenders hereunder to make Loans and to make payments pursuant to Section 11.04(c) are several and not joint.  The failure of any Lender to make any Loan, to fund any such participation or to make any payment under Section 11.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan, to purchase its participation or to make its payment under Section 11.04(c).
(e)    Funding Source.  Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.
2.10    Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of (a) Obligations due and payable to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount of the Obligations due and payable to all Lenders hereunder and under the other Loan Documents at such time) of payments on account of the Obligations due and payable to all Lenders hereunder and under the other Loan Documents at such time obtained by all the Lenders at such time or (b) Obligations owing (but not due and payable) to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate amount of the Obligations owing (but not due and payable) to all Lenders hereunder and under the other Loan Parties at such time) of payment on account of the Obligations owing (but not due and payable) to all Lenders hereunder and under the other Loan Documents at such time obtained by all of the Lenders at such time then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of Obligations then due and payable to the Lenders or owing (but not due and payable) to the Lenders, as the case may be, provided that:
(i)    if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and
(ii)    the provisions of this Section shall not be construed to apply to (x) any payment made by or on behalf of the Borrower pursuant to and in accordance with the express terms of this Agreement, (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than an assignment to the Borrower or any Affiliate thereof (as to which the provisions of this Section shall apply).
Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing 

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arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Loan Party in the amount of such participation.  Each Lender shall keep records in a Participant Register, as defined in Section 11.06(d) (which shall be conclusive and binding in absence of manifest error), of participations purchased pursuant to this Section 2.10.  
2.11    Incremental Facility.
(a)    On and after the period ending six months following the Closing Date, the Borrower may by written notice to the Administrative Agent elect to request that Macquarie CAF LLC establish not more than one new term loan commitments (each, an “Incremental Commitment”), by an aggregate amount not in excess of $200,000,000.  Such notice shall specify the date (the “Increase Effective Date”) on which the Borrower proposes that the Incremental Commitments shall be effective, which shall be a date not less than 10 Business Days after the date on which such notice is delivered to the Administrative Agent.  Notwithstanding anything contained herein to the contrary, the establishment of the Incremental Commitment shall be made in the sole discretion of the Administrative Agent.
(b)    Conditions.  The Incremental Commitments shall become effective as of the Increase Effective Date; provided that:
(i)    no Default shall have occurred and be continuing or would result from the borrowings to be made on the Increase Effective Date;
(ii)    the representations and warranties contained in Article V and the other Loan Documents are true and correct in all material respects on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall have been true and correct in all material respects as of such earlier date, and except that for purposes of this Section 2.11(b), the representations and warranties contained in Section 5.05(a) and Section 5.05(b) shall be deemed to refer to the most recent financial statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01.
(iii)    either (A) both of the ongoing Phase III studies (called TRAFFIC and TRANSPORT) of Kalydeco in combination with lumacaftor (VX-809) meet or exceed the respective study’s primary endpoint or (B) FDA approval of a Product with a label claim for treating patients twelve years and older who are homozygous for the F508del mutation in their CFTR gene in the United States;
(iv)    Macquarie CAF LLC  has decided in its sole discretion to establish the Incremental Commitment and make the Incremental Loans; and
(v)    the Borrower shall deliver or cause to be delivered officer’s certificates and legal opinions of the type delivered on the Closing Date to the extent reasonably requested by, and in form and substance reasonably satisfactory to, the Administrative Agent.

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(c)    Terms of New Loans.  The terms and provisions of Loans made pursuant to Incremental Commitments shall be as follows:
(i)    terms and provisions of Incremental Loans shall be, except as otherwise set forth herein or in the Increase Joinder, identical to the Loans (it being understood that Incremental Loans may be a part of the Loans) and to the extent that the terms and provisions of Incremental Loans are not identical to the Loans (except to the extent permitted by clause (iii) or (iv) below) they shall be reasonably satisfactory to the Administrative Agent; provided that in any event the Incremental Loans must comply with clauses (iii) and (iv) below;
(ii)    the weighted average life to maturity of any Incremental Loans shall be no shorter than the remaining weighted average life to maturity of the then existing Loans;
(iii)    the maturity date of Incremental Loans (the “Incremental Loan Maturity Date”) shall not be earlier than the Maturity Date; and
(iv)    the Interest Rate for Incremental Loans shall be determined by the Borrower and the Lenders of the Incremental Loans; provided that in the event that the Interest Rate for any Incremental Loan is greater than the Interest Rate for the Loans by more than 50 basis points, then the Interest Rate for the Loans shall be increased to the extent necessary so that the Interest Rate for the Incremental Loans is 50 basis points higher than the Interest Rate for the Loans; provided, further, that in determining the Interest Rate applicable to the Loans and the Incremental Loans, (x) original issue discount (“OID”) or upfront fees (which shall be deemed to constitute like amounts of OID) payable by the Borrower to the Lenders of the Loans or the Incremental Loans in the primary syndication thereof shall be included (with OID being equated to interest based on an assumed four-year life to maturity), (y) customary arrangement or commitment fees payable to the Administrative Agent (or its respective affiliates) in connection with the Loans or to one or more arrangers (or their affiliates) of the Incremental Loans shall be excluded; and (z) if the LIBOR or Base Rate “floor” for the Incremental Loans is greater than the LIBOR or Base Rate “floor”, respectively, for the existing Loans, the difference between such floor for the Incremental Loans and the Loans shall be equated to an increase in the Interest Rate for purposes of this clause (iv).
The Incremental Commitments shall be effected by a joinder agreement (the “Increase Joinder”), executed by the Borrower, the Administrative Agent and each Lender making such Incremental Commitment, in form and substance reasonably satisfactory to each of them.  Notwithstanding the provisions of Section 10.01, the Increase Joinder may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent, to effect the provisions of this Section 2.11.  In addition, unless otherwise specifically provided herein, all references in Loan Documents to Loans shall be deemed, unless the context otherwise requires, to include references to Incremental Loans made pursuant to this Agreement.  This Section 2.11 shall supersede any provisions in Section 10.01 to the contrary.

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(d)    Making of New Term Loans.  On any Increase Effective Date on which new Incremental Commitments are effective, subject to the satisfaction of the foregoing terms and conditions, each Lender of such new Incremental Commitment shall make an Incremental Loan to the Borrower in an amount equal to its new Incremental Commitment.
(e)    Equal and Ratable Benefit.  The Loans and Commitments established pursuant to this Section shall constitute Loans and Commitments under, and shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from the Guarantees and security interests created by the Collateral Documents, except that the new Loans may be subordinated in right of payment or the Liens securing the new Loans may be subordinated, in each case, to the extent set forth in the Increase Joinder.  The Loan Parties shall take any actions reasonably required by the Administrative Agent to ensure and/or demonstrate that the Lien and security interests granted by the Collateral Documents continue to be perfected under the UCC or otherwise after giving effect to the establishment of any such class of Term Loans or any such new Commitments.
ARTICLE III.    TAXES, YIELD PROTECTION AND ILLEGALITY
3.01    Taxes.
(h)    Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.  
(i)    Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Laws.  If any applicable Laws (as determined in the good faith discretion of the applicable withholding agent) require the deduction or withholding of any Tax from any such payment by the Administrative Agent or a Loan Party, then the Administrative Agent or such Loan Party shall be entitled to make such deduction or withholding, upon the basis of the information and documentation to be delivered pursuant to subsection (e) below.
(ii)    If any Loan Party or the Administrative Agent shall be required by the Code to withhold or deduct any Taxes, including both United States Federal backup withholding and withholding taxes, from any payment, then (A) the Administrative Agent shall withhold or make such deductions as are determined by the Administrative Agent to be required based upon the information and documentation it has received pursuant to subsection (e) below, (B) the Administrative Agent shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in accordance with the Code, and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes, the sum payable by the applicable Loan Party shall be increased as necessary so that after any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section 3.01) the applicable Recipient receives an amount equal to the sum it would have received had no such withholding or deduction been made.

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(iii)    If any Loan Party or the Administrative Agent shall be required by any applicable Laws other than the Code to withhold or deduct any Taxes from any payment, then (A) such Loan Party or the Administrative Agent, as required by such Laws, shall withhold or make such deductions as are determined by it to be required based upon the information and documentation it has received pursuant to subsection (e) below, (B) such Loan Party or the Administrative Agent, to the extent required by such Laws, shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in accordance with such Laws, and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes, the sum payable by the applicable Loan Party shall be increased as necessary so that after any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section 3.01) the applicable Recipient receives an amount equal to the sum it would have received had no such withholding or deduction been made.
(i)    Payment of Other Taxes by the Borrower.  Without limiting the provisions of subsection (a) above and without duplication of other amounts payable by the Borrower under this Section, the Loan Parties shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.
(j)    Tax Indemnifications.  (1) Each of the Loan Parties shall, and does hereby, jointly and severally indemnify each Recipient, and shall make payment in respect thereof within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 3.01) payable or paid by such Recipient, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate setting forth in reasonable detail the basis and the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.  .
(i)    Each Lender shall, and does hereby, severally indemnify, and shall make payment in respect thereof within 10 days after demand therefor, (x) the Administrative Agent against any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation the Loan Parties to do so), (y) the Administrative Agent and the Loan Parties, as applicable, against any Taxes attributable to such Lender’s failure to comply with the provisions of Section 10.06(d) relating to the maintenance of a Participant Register and (z) the Administrative Agent and the Loan Parties, as applicable, against any Excluded Taxes attributable to such Lender that are payable or paid by the Administrative Agent or a Loan Party in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the 

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Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document against any amount due to the Administrative Agent under this clause (ii).  
(k)    Evidence of Payments.  Upon request by the Borrower or the Administrative Agent, as the case may be, after any payment of Taxes by the Borrower or by the Administrative Agent to a Governmental Authority as provided in this Section 3.01, the Borrower shall deliver to the Administrative Agent or the Administrative Agent shall deliver to the Borrower, as the case may be, the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, or other evidence of such payment reasonably satisfactory to the Borrower or the Administrative Agent, as the case may be.
(l)    Status of Recipients; Tax Documentation. 
(v)    Any Recipient that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Recipient, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Recipient is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 3.01(e)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Recipient’s reasonable judgment such completion, execution or submission would subject such Recipient to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such  Recipient.
(vi)    Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,
(A)    any Recipient that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Recipient becomes a Recipient under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), two (2) accurate, complete, executed originals of IRS Form W-9 certifying that such Recipient is exempt from U.S. federal backup withholding tax; 
(B)    any Foreign Recipient shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient, but not less than two (2)) on or prior to the date on 

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which such Foreign Recipient becomes a Recipient under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:
(I)    in the case of a Foreign Recipient claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, accurate, complete, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E (or successor forms) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E (or successor forms) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;
(II)    accurate, complete, executed originals of IRS Form W-8ECI (or successor forms);
(III)    in the case of a Foreign Recipient claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit D-1 to the effect that such Foreign Recipient is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) accurate, complete, executed originals of IRS Form W‐8BEN  or IRS Form W-8BEN-E (or successor forms); or
(IV)    to the extent a Foreign Recipient is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W‐8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E), a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-2 or Exhibit D-3, IRS Form W‐9, and/or other successor forms or  certification documents from each beneficial owner, as applicable; provided that if the Foreign Recipient is a partnership and one or more direct or indirect partners of such Foreign Recipient are claiming the portfolio interest exemption, such Foreign Recipient may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-4 on behalf of each such direct and indirect partner;
(C)    any Foreign Recipient shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Recipient becomes a Recipient under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

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(D)    if a payment made to a Recipient under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Recipient were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Recipient shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Recipient has complied with such Recipient’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
(vii)    Each Recipient agrees that if any form or certification it previously delivered pursuant to this Section 3.01 expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.
(m)    Treatment of Certain Refunds.  Unless required by applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender.  If any Recipient determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified by any Loan Party or with respect to which any Loan Party has paid additional amounts pursuant to this Section 3.01, it shall pay to the Loan Party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by a Loan Party under this Section 3.01 with respect to the Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses (including Taxes) incurred by such Recipient, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the Loan Party, upon the request of the Recipient, agrees to repay the amount paid over to the Loan Party (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Recipient in the event the Recipient is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this subsection, in no event will the applicable Recipient be required to pay any amount to the Loan Party pursuant to this subsection the payment of which would place the Recipient in a less favorable net after-Tax position than such Recipient would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This subsection shall not be construed to require any Recipient to make available its tax returns (or any other information relating to its taxes that it deems confidential) to any Loan Party or any other Person.

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(n)    Survival.  Each party’s obligations under this Section 3.01 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations.
3.02    Illegality.  If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its Lending Office to make, maintain or fund Loans whose interest is determined by reference to the Eurodollar Rate, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, (i) any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended, and (ii) if such notice asserts the illegality of such Lender making or maintaining Base Rate Loans the interest rate on which is determined by reference to the Eurodollar Rate component of the Base Rate, the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Base Rate, in each case until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, (x) the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Base Rate), either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurodollar Rate, the Administrative Agent shall during the period of such suspension compute the Base Rate applicable to such Lender without reference to the Eurodollar Rate component thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal  for such Lender to determine or charge interest rates based upon the Eurodollar Rate.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.
3.03    Inability to Determine Rates.  If in connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof,  (a)  the Administrative Agent determines that (i) Dollar deposits are not being offered to banks in the London interbank Eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan, or (ii) adequate and reasonable means do not exist for determining the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan  or in connection with an existing or proposed Base Rate Loan (in each case with respect to clause (a)(i) above, “Impacted Loans”), or (b) the Administrative Agent or the Required Lenders determine that for any reason  the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Eurodollar Rate Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, (x) the 

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obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended, (to the extent of the affected Eurodollar Rate Loans or Interest Periods), and (y) in the event of a determination described in the preceding sentence with respect to the Eurodollar Rate component of the Base Rate, the utilization of the Eurodollar Rate component in determining the Base Rate shall be suspended, in each case until the Administrative Agent upon the instruction of the Required Lenders revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein.
Notwithstanding the foregoing, if the Administrative Agent has made the determination described in clause (a)(i) of this section, the Administrative Agent, in consultation with the Borrower and the affected Lenders, may establish an alternative interest rate for the Impacted Loans,  in which case, such alternative rate of interest shall apply with respect to the Impacted Loans until (1) the Administrative Agent revokes the notice delivered with respect to the Impacted Loans under clause (a) of the first sentence of this section, (2) the Administrative Agent or the Required Lenders notify the Administrative Agent and the Borrower that such alternative interest rate does not adequately and fairly reflect the cost to such Lenders of funding the Impacted Loans, or (3) any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to such alternative rate of interest or to determine or charge interest rates based upon such rate or any Governmental Authority has imposed material restrictions on the authority of such Lender to do any of the foregoing and provides the Administrative Agent and the Borrower written notice thereof.
3.04    Increased Costs; Reserves on Eurodollar Rate Loans.   
(f)    Increased Costs Generally.  If any Change in Law shall:
(iii)    impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement contemplated by Section 3.04(e); 
(iv)    subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (c) through (f) of the definition of Excluded Taxes, and (C) Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes) on its loans, loan principal, letters of credit, commitments or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or
(v)    impose on any Lender or the London interbank market any other condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such Lender;

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and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting to, continuing or maintaining any Loan the interest on which is determined by reference to the Eurodollar Rate, or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.
(g)    Capital Requirements.  If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the Loans made by such Lender, to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.
(h)    Certificates for Reimbursement.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.
(i)    Delay in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section 3.04 shall not constitute a waiver of such Lender’s right to demand such compensation, provided that the Borrower shall not be required to compensate a Lender pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).
(j)    Reserves on Eurodollar Rate Loans.  The Borrower shall pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on which interest is payable on such Loan, provided the Borrower shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender.  If a Lender 

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fails to give notice 10 days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of such notice.
3.05    Compensation for Losses.  Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:
(a)    any continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);
(b)    any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower; or
(c)    any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 11.13;
including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained.  The Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing.
For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded.
3.06    Mitigation Obligations; Replacement of Lenders.
(a)    Designation of a Different Lending Office.  Each Lender may make any Credit Extension to the Borrower through any Lending Office, provided that the exercise of this option shall not affect the obligation of the Borrower to repay the Credit Extension in accordance with the terms of this Agreement.  If any Recipient requests compensation under Section 3.04, or requires the Borrower or any Loan Party to pay any Indemnified Taxes or additional amounts to any Recipient or any Governmental Authority for the account of any Recipient pursuant to Section 3.01, or if any Recipient gives a notice pursuant to Section 3.02, then at the request of the Borrower such Lender shall, as applicable, use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Recipient, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Recipient to any unreimbursed cost or expense 

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and would not otherwise be disadvantageous to such Recipient.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Recipient in connection with any such designation or assignment.
(b)    Replacement of Lenders.  If any Recipient requests compensation under Section 3.04, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Recipient or any Governmental Authority for the account of any Recipient pursuant to Section 3.01 and, in each case, such Recipient has declined or is unable to designate a different lending office in accordance with Section 3.06(a), the Borrower may replace such Recipient in accordance with Section 11.13.
3.07    Survival.  All of the Borrower’s obligations under this Article III shall survive termination of the Aggregate Commitments, repayment of all other Obligations hereunder, and resignation of the Administrative Agent.
ARTICLE IV.    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
4.01    Conditions.  The obligation of each Lender to make its Credit Extension hereunder is subject to satisfaction of the following conditions precedent:
(d)    The Administrative Agent’s receipt of the following, each of which shall be originals or telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance reasonably satisfactory to the Administrative Agent and each of the Lenders:
(i)    executed counterparts of this Agreement, sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower;
(ii)    a Note executed by the Borrower in favor of each Lender requesting a Note;
(iii)    a security agreement, in substantially the form of Exhibit E (together with each other security agreement and security agreement supplement delivered pursuant to Section 6.12, in each case as amended, the “Security Agreement”), duly executed by each Loan Party, together with:
(A)    certificates and instruments representing the Pledged Collateral referred to therein accompanied by undated stock powers or instruments of transfer executed in blank,
(B)    properly completed financing statements in form appropriate for filing under the Uniform Commercial Code of all jurisdictions that the Administrative Agent may reasonably deem necessary or desirable in order to perfect the Liens created under the Security Agreement, covering the Collateral described in the Security Agreement,

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(C)    a list of UCC, United States Patent granted patents and pending patent application, Trademark Office registrations and pending registration applications and United States Copyright Office registrations and pending registration applications together with their equivalents in foreign jurisdictions, tax and judgment lien searches, or equivalent reports or searches, each of a recent date listing all effective financing statements, lien notices or comparable documents (together with copies of such financing statements and documents) that name any Loan Party as debtor and that are filed in those state and county jurisdictions in which any Loan Party is organized or maintains its principal place of business and such other searches that are required by the Perfection Certificate or that the Administrative Agent reasonably deems necessary or appropriate, none of which encumber the Collateral covered or intended to be covered by the Collateral Documents (other than Permitted Liens),
(D)    a Perfection Certificate, in substantially the form of Exhibit H, duly executed by each of the Loan Parties, and
(E)    evidence that all other actions, recordings and filings that the Administrative Agent may deem reasonably necessary in order to perfect the Liens created under the Security Agreement has been taken (including receipt of duly executed payoff letters and UCC-3 termination statements, to the extent applicable);
(iv)    a copyright security agreement, patent security agreement and trademark security agreement (together with each other intellectual property security agreement delivered pursuant to Section 6.12, in each case as amended, the “Intellectual Property Security Agreement”), duly executed by each applicable Loan Party, together with evidence that all action that the Administrative Agent may reasonably deem necessary or desirable in order to perfect the Liens created under the Intellectual Property Security Agreement has been taken;
(v)    a certificate of the secretary or assistant secretary of each Loan Party dated the Closing Date, certifying (A) that attached thereto is a true and complete copy of each Organizational Document of such Loan Party certified (to the extent applicable) as of a recent date by the Secretary of State of the state of its organization, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and performance of the Loan Documents to which such person is a party and, in the case of Borrower, the Credit Extensions hereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect and (C) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith on behalf of such Loan Party (together with a certificate of another officer as to the incumbency and specimen signature of the secretary or assistant secretary executing the certificate required by this clause (v));
(vi)    such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each of the Borrower and the Guarantors is validly existing, in good standing (in so‐called 

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“long-form” if available) and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;
(vii)    a favorable opinion of Ropes & Gray LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to the matters concerning the Loan Parties and the Loan Documents as the Required Lenders may reasonably request;  
(viii)    a certificate of a Responsible Officer of each Loan Party either (A) attaching copies of any and all material consents, licenses and approvals required in connection with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required;
(ix)    a certificate attesting to the Solvency of each Loan Party before and after giving effect to the Borrowing, from the chief financial officer of the Borrower, substantially in the form of Exhibit F;
(x)    evidence that all insurance required to be maintained pursuant to the Loan Documents has been obtained and is in effect, together with endorsements naming the Administrative Agent, on behalf of the Secured Parties, as an additional insured or loss payee, as the case may be;
(xi)    a certificate signed by a Responsible Officer of the Borrower certifying (A) that, assuming those conditions specified in this Section 4.01 required to be satisfied, delivered or provided for in a manner reasonably satisfactory to the Administrative Agent have been satisfied, delivered or provided for in a manner reasonably satisfactory to the Administrative Agent, the conditions specified in this Section 4.01 have been satisfied, (B)  since December 31, 2013, there has not been any change, development or event that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect and (C) with respect to certain matters referred to in Section 5.18(b);
(xii)    an amendment or termination to the letter of credit facility with Bank of America, N.A., in form and substance reasonably satisfactory to the Administrative Agent, allowing for the creation of a security interest in the Collateral (as defined in the Security Agreement) by the Administrative Agent for the benefit of the Secured Parties, or any consent by Bank of America, N.A. to the creation of such security interest;
(xiii)    any and all amendments relating to any and all license agreements or similar arrangements between or among the Loan Parties and any of their respective Subsidiaries relating to the Cystic Fibrosis Drug Franchise Assets, in form and substance reasonably satisfactory to the Administrative Agent, allowing for the creation and performance of a security interest in such license agreements by the Administrative Agent 

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for the benefit of the Secured Parties under the Loan Documents and the termination at will by the licensor or similar Person; and
(xiv)    such other assurances, certificates, documents, consents or opinions as the Administrative Agent or the Required Lenders reasonably may require.
(e)    The Administrative Agent shall be reasonably satisfied that all requisite Governmental Authorities, equityholders and third parties shall have approved, authorized or consented to the Transactions, and there shall be no governmental or judicial action, actual or threatened, that has or would have, individually or in the aggregate, a reasonable likelihood of restraining, preventing or imposing burdensome conditions on the transactions contemplated hereby.
(f)    There shall not exist any claim, action, suit, investigation, litigation or proceeding pending or threatened by or before any court, or any governmental, administrative or regulatory agency or authority, domestic or foreign, that, in the reasonable opinion of the Administrative Agent (a) has had, or could reasonably be expected to result in liabilities in excess of the Threshold Amount, or (b) the ability of any Company to perform its obligations under the Loan Documents, or the ability of the parties to consummate the financings contemplated hereby. 
(g)    The Administrative Agent shall have received, at least five business days prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act; including, in particular, a duly executed valid form W-9 from the Borrower, or other applicable tax form.
(h)    Unless waived by the Administrative Agent, the Borrower shall have paid all reasonable fees, charges and disbursements of counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent).
(i)    The representations and warranties of the Borrower and each other Loan Party contained in Article V or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct on and as of the Closing Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date.
(j)    No Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds thereof.

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(k)    The Administrative Agent shall have received a Loan Notice in accordance with the requirements hereof.
Without limiting the generality of the provisions of the last paragraph of Section 9.03, for purposes of determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto. 
ARTICLE V.    REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Administrative Agent and the Lenders that:
5.01    Existence, Qualification and Power.  Each Loan Party and each of its Subsidiaries (a) is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (c) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.
5.02    Authorization; No Contravention.  The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Material Contract to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any applicable Law.
5.03    Governmental Authorization; Other Consents.  Other than filings to perfect the security interests granted under the Collateral Documents and any filings with the SEC, no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person (provided if such action is required with respect to a Contractual Obligation this Section 5.03 shall only apply to Material Contracts) is necessary or required in connection with (a) the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, (b) the grant by any Loan Party of the Liens granted by it pursuant to the Collateral Documents, (c) the perfection or maintenance of the Liens created under the Collateral Documents (including the first priority nature thereof) or (d) the exercise by the Administrative Agent or any Lender of its rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents.

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5.04    Binding Effect.  This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.  This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, subject to bankruptcy, insolvency, moratorium and other laws affecting creditors and secured parties generally and general principles of equity.
5.05    Financial Statements; No Material Adverse Effect.
(b)    The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii) fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations, cash flows and changes in shareholders’ equity for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (iii) show all material indebtedness and other liabilities, direct or contingent, of the Borrower and its Subsidiaries as of the date thereof, including liabilities for Taxes, material commitments and Indebtedness.
(c)    The unaudited consolidated balance sheets of the Borrower and its Subsidiaries dated March 31, 2014, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for the fiscal quarter ended on that date (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations, cash flows and changes in shareholders’ equity for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.  Schedule 5.05 sets forth all material indebtedness and other liabilities, direct or contingent, of the Borrower and its consolidated Subsidiaries as of the date of such financial statements, including liabilities for Taxes, material commitments and Indebtedness.
(d)    Since the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.
(e)    The consolidated forecasted balance sheet and statements of income and cash flows of the Borrower and its Subsidiaries delivered pursuant to Section 6.01(c) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasts, and represented, at the time of delivery, the Borrower’s best estimate of its future financial condition and performance.
5.06    Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the Knowledge of the Borrower after due and diligent investigation, threatened in writing, at law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or any 

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of its Subsidiaries or against any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby or (b) could reasonably be expected, either individually or in the aggregate, to result in a Material Adverse Effect.
5.07    No Default.  Neither any Loan Party nor any Subsidiary thereof is in default under or with respect, or party to, to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.
5.08    Ownership of Property; Liens.  (1) Each Loan Party and each of its Subsidiaries has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(f)    Schedule 5.08(b) sets forth a complete and accurate list of all Liens on the property or assets of each Loan Party and each of its Subsidiaries as of the Closing Date, showing as of the date hereof the lienholder thereof, the principal amount of the obligations secured thereby and the property or assets of such Loan Party or such Subsidiary subject thereto.  The property of each Loan Party and each of its Subsidiaries is subject to no Liens, other than Liens set forth on Schedule 5.08(b), and as otherwise permitted by Section 7.01.
(g)    Schedule 5.08(c) sets forth a complete and accurate list of all real property owned by each Loan Party and each of its Subsidiaries, showing as of the date hereof the street address, county or other relevant jurisdiction, state, record owner and book and fair value thereof.  Each Loan Party and each of its Subsidiaries has good, marketable and insurable fee simple title to the real property owned by such Loan Party or such Subsidiary, free and clear of all Liens, other than Liens created or permitted by the Loan Documents.
(h)    (1)    Schedule 5.08(d)(i) sets forth a complete and accurate list of all leases of real property under which any Loan Party or any Subsidiary of a Loan Party is the lessee, showing as of the date hereof the street address, county or other relevant jurisdiction, state, lessor, lessee, expiration date and annual rental cost thereof.  Each such lease is the legal, valid and binding obligation of the lessor thereof, enforceable in accordance with its terms.
(i)    Schedule 5.08(d)(ii) sets forth a complete and accurate list of all leases of real property under which any Loan Party or any Subsidiary of a Loan Party is the lessor, showing as of the date hereof the street address, county or other relevant jurisdiction, state, lessor, lessee, expiration date and annual rental cost thereof.  Each such lease is the legal, valid and binding obligation of the lessee thereof, enforceable in accordance with its terms.
(i)    Schedule 5.08(e) sets forth a complete and accurate list of all Investments held by any Loan Party or any Subsidiary of a Loan Party on the date hereof, showing as of the date hereof the amount, obligor or issuer and maturity, if any, thereof. 

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(j)    Any Mortgages executed and delivered after the Closing Date will be effective to create in favor of the Administrative Agent (for the benefit of the Secured Parties) a legal, valid and enforceable first priority Lien on all of the applicable Loan Parties’ right, title and interest in and to the Mortgaged Property (as such term is defined in the applicable Mortgage) thereunder and the proceeds thereof, and when such Mortgages are filed or recorded in the proper real estate filing or recording offices, and all relevant mortgage taxes and recording charges are duly paid, the Administrative Agent (for the benefit of the Secured Parties) shall have a perfected first priority Lien on, and security interest in, all right, title, and interest of the applicable Loan Parties in such Mortgaged Property and, to the extent applicable, subject to Section 9-315 of the Uniform Commercial Code, the proceeds thereof, in each case prior and superior in right to the Lien of any other person, except for Permitted Encumbrances.
5.09    Environmental Compliance.
(a)    The Loan Parties and their respective Subsidiaries conduct in the ordinary course of business a review of the effect of existing Environmental Laws and claims alleging potential liability or responsibility pursuant to any Environmental Law on their respective businesses, operations and properties or any other Environmental Liability, and as a result thereof the Borrower has reasonably concluded that such Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(b)    None of the properties currently or formerly owned, operated, leased, or otherwise occupied by any Loan Party or any of its Subsidiaries, and no property to which any of the Loan Parties or their respective Subsidiaries have transported or arranged for the transportation, treatment or disposal of any Hazardous Materials, is listed or formally proposed for listing on the National Priorities List promulgated pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”)  or on the CERCLIS (as defined by CERCLA) or any analogous foreign, state or local list or is adjacent to any such property; there are no and to the best knowledge of the Loan Parties and their Subsidiaries never have been any underground or above-ground storage tanks or any surface impoundments, septic tanks, pits, sumps, lagoons or other features in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned, operated, leased, or otherwise occupied by any Loan Party or any of its Subsidiaries or, to the best of the knowledge of the Loan Parties, on any property formerly owned, operated, leased, or otherwise occupied by any Loan Party or any of its Subsidiaries; there is no asbestos or asbestos-containing material on, at or in any property currently owned, operated, leased, or otherwise occupied by any Loan Party or any of its Subsidiaries; and Hazardous Materials have not been Released on, at, under or from any property currently or formerly owned, operated, leased, or otherwise occupied by any Loan Party or any of its Subsidiaries in a manner, form or amount which could reasonably be expected to result in material liability of any Loan Party or any Subsidiary.

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(c)    Neither any Loan Party nor any of its Subsidiaries is undertaking, and has not completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened Release of Hazardous Materials at, on, under, or from any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any Environmental Law; and all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly owned, operated, leased, or otherwise occupied by any Loan Party or any of its Subsidiaries have been managed and disposed of in a manner which could not reasonably be expected to result in material liability to any Loan Party or any of its Subsidiaries.
(d)    The Loan Parties and their respective Subsidiaries: (i) are in compliance with all applicable Environmental Laws; (ii) hold all Permits (each of which is in full force and effect) required under Environmental Laws for any of their current or intended operations or for any property owned, leased, operated or otherwise occupied by any of the Loan Parties or their respective Subsidiaries (“Environmental Permits”); (iii) are and have been in compliance with all of their Environmental Permits; and (iv) to the extent within the control of the Loan Parties and their respective Subsidiaries, each of their Environmental Permits will be timely renewed and complied with, and any additional Environmental Permits that may be required of any of them or that is or is expected to become applicable to any of them will be timely obtained and complied with, without material expense, and in compliance with any Environmental Law, in the case of clauses (i), (ii), (iii) and (iv) above, except where non-compliance or the failure to hold or renew such Environmental Permits could not reasonably be expected to result in a liability above the Threshold Amount.
5.10    Insurance.  The properties of the Borrower and its Subsidiaries are insured with financially sound and reputable insurance companies not Affiliates of the Borrower, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower or the applicable Subsidiary operates.
5.11    Taxes.  The Borrower and each of its Subsidiaries have timely filed all federal and state income and other material tax returns and reports required to be filed, and have timely paid all federal and state income and other material Taxes (whether or not shown on a tax return), including in its capacity as a withholding agent, levied or imposed upon it or its properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP.  There is no proposed material tax assessment or other material claim against, and no material tax audit with respect to, the Borrower or any Subsidiary.  
5.12    ERISA Compliance.
(a)    Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state laws.  Each Pension Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service to the effect that the form of such 

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Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the Internal Revenue Service to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently being processed by the Internal Revenue Service.  To the best knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status.
(b)    There are no pending or, to the best Knowledge of the Borrower, threatened claims, actions or  lawsuits, or action by any Governmental Authority, with respect to any Plan that  could reasonably be expected to have a Material Adverse Effect.  There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect.
(c)    (i) No ERISA Event has occurred, and neither the Borrower nor any ERISA Affiliate is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan or Multiemployer Plan; (ii) as of the most recent valuation date for any Pension Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is 60% or higher and neither the Borrower nor any ERISA Affiliate knows of any facts or circumstances that could reasonably be expected to cause the funding target attainment percentage for any such plan to drop below 60% as of the most recent valuation date; (iii) neither the Borrower nor any ERISA Affiliate has incurred any liability to the PBGC other than for the payment of premiums, and there are no premium payments which have become due that are unpaid; (iv) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; and (v) no Pension Plan has been terminated by the plan administrator thereof nor by the PBGC, and no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings under Title IV of ERISA to terminate any Pension Plan. Neither the Borrower nor any ERISA Affiliate maintains or contributes to, or has any unsatisfied obligation to contribute to, or liability under, any active or terminated Pension Plan or retiree group medical plan.  
5.13    Subsidiaries; Equity Interests.  The Borrower has no Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.13, and all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and non-assessable and are owned directly or indirectly by a Loan Party in the amounts specified on Part (a) of Schedule 5.13 free and clear of all Liens except those created under the Collateral Documents.  The Borrower has no equity investments in any other corporation or entity other than those specifically disclosed in Part (b) of Schedule 5.13.  All of the outstanding Equity Interests in the Borrower have been validly issued, are fully paid and non-assessable.  Set forth on Part (c) of Schedule 5.13 is a complete and accurate list of all Loan Parties, showing as of the Closing Date (as to each Loan Party) the jurisdiction of its incorporation, the address of its principal place of business and its U.S. taxpayer identification number, if any, or, in the case of any non-U.S. Loan Party that does not have a U.S. taxpayer identification number, its unique identification number issued to it by the jurisdiction of its incorporation, if any.  The copy of the charter of each Loan Party and each amendment thereto 

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provided pursuant to Section 4.01(a)(v) is a true and correct copy of each such document, each of which is valid and in full force and effect.
5.14    Margin Regulations; Investment Company Act.  The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock.  None of the Borrower, any Person Controlling the Borrower, or any Subsidiary is or is required to be registered as an “investment company” under the Investment Company Act of 1940.
5.15    Disclosure.  The Borrower has disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  No report, financial statement, certificate or other written information furnished by or on behalf of any Loan Party to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished), when taken as a whole, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.
5.16    Compliance with Laws.  Each Loan Party and each Subsidiary thereof is and has been in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
5.17    Taxpayer Identification Number.  The Borrower’s true and correct U.S. taxpayer identification number is set forth on Schedule 11.02.
5.18    Intellectual Property; Licenses, Etc.  (a) Schedule 5.18 sets forth a complete and accurate list of the following: (i) all Copyrights and all Trademarks of any Loan Party, that are registered, or in respect of which an application for registration has been filed or recorded, with the United States Patent and Trademark Office or the United States Copyright Office or with any other Governmental Authority (or comparable organization or office established pursuant to an international treaty or similar international agreement for the filing, recordation or registration of interests in intellectual property), together with relevant identifying information with respect to such Copyrights and Trademarks, (ii) all Patents of any Loan Party that are granted, or in respect of which an application for patent has been submitted to and is pending with the United States Patent and Trademark Office or with any other Governmental Authority (or comparable organization or office established pursuant to an international treaty or similar international agreement for the filing, recordation or registration of interests in intellectual property), together with relevant identifying information with respect to such Patents, (iii) all Domain Names of the Borrower or any Guarantor, 

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their respective properties or the conduct or operation of their respective businesses (including the generation of future revenues), together with relevant identifying information with respect to such Domain Names and (iv) each Copyright License, Patent License and Trademark License included in the Material IP Rights.
(a)    The Material IP Rights are, in all material respects, subsisting, valid, unexpired and enforceable.  Other than as disclosed to the Agent prior to the Closing Date,  no written claim known to the Borrower or any Subsidiary has been made that the use or other exploitation by the Borrower, any Subsidiary or any of their licensees of any of the Material IP Rights or material intellectual property rights of another Person, including, without limitation, to advertise, display, import, manufacture, have manufactured, market, offer for sale, perform, prepare derivative works based upon, promote, reproduce, sell, use and/or otherwise distribute a Product, does or may infringe, violate or misappropriate the rights of any Person in any material respect.  No holding, decision or judgment has been rendered by any Governmental Authority that would limit, invalidate, render unenforceable, cancel or create a material cloud over the validity of any Material IP Right. No action or proceeding is pending seeking to limit the scope of protection provided by, invalidate, render unenforceable, cancel or create a material cloud over the validity of any IP Right. The Borrower and its Subsidiaries have, since taking title to the Material IP Rights, performed all acts and have paid all annuities, fees, costs, expenses and taxes required to maintain the Material IP Rights in full force and effect throughout the world, as applicable.  The Borrower and its Subsidiaries have filed all applications for registration and patents pertaining to the Material IP Rights of the Borrower and the Guarantors that in the good faith opinion of the Borrower are commercially reasonable and consistent with sound business practice. The Borrower and its Subsidiaries own, or are entitled to use by license or otherwise, all the Material IP Rights.  To the extent any of the Material IP Rights were authored, developed, conceived or created, in whole or in part, for or on behalf of the Borrower or any Subsidiary by any other Person, then the Borrower or such Subsidiary has entered into a written agreement with such Person in which, such Person has assigned or licensed all right, title and interest in and to such Material IP Rights to the Borrower or such Subsidiary.  To the Borrower’s Knowledge, no slogan or other advertising material, device, product, process, method, substance, part or other material now employed, or now contemplated to be employed, by the Borrower or any Subsidiary or any licensee of the Borrower or any Subsidiary in the manufacture, use and sale of products under the Material IP Rights violates, infringes or misappropriates any rights held by any other Person and (ii) no claim or litigation regarding any of the Material IP Rights is pending or has been threatened in writing and remains unresolved as of the Closing Date.  None of the Material IP Rights is subject to any license grant by the Borrower or any Subsidiary or similar arrangement authorizing a third party to practice any of the Material IP Rights, except for (x) license grants among the Loan Parties and (y) those license grants disclosed on Schedule 5.18.
5.19    OFAC.  Neither the Borrower, nor any of its Subsidiaries, nor, to the Knowledge of the Borrower and its Subsidiaries, any director, officer, employee, agent, affiliate or representative thereof, is an individual or entity currently the subject of any Sanctions, nor is the Borrower or any Subsidiary located, organized or resident in a Designated Jurisdiction.

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5.20    Compliance of Products. 
(a)    The Borrower and its Subsidiaries:
(i)    have obtained all Required Permits, or have contracted with third parties holding Required Permits, necessary for compliance in all material respects with all Laws with respect to sourcing, manufacturing, development, testing, production, sale and distribution of Products, and all such Required Permits are in full force and effect;
(ii)    have not received any adverse written communication from any Governmental Authority regarding, and there are no facts or circumstances that are likely to give rise to (A) any material adverse change in, any Required Permit, or any failure to materially comply with any Laws or any term or requirement of any Required Permit or (B) any revocation, withdrawal, suspension, cancellation, material limitation, termination or material modification of any Required Permit;
(iii)    have not used the services of any Person debarred or disqualified under the provisions of the Generic Drug Enforcement Act of 1992, 21 U.S.C. Section 335a;
(iv)    warrant and represent that none of their officers, directors, nor, to the Borrower's Knowledge, any of their employees, agents, Affiliates or any consultant involved in any Drug Application, has been convicted of any felony for which debarment or disqualification is authorized by 21 U.S.C. Section 335a or engaged in any other action for which debarment or disqualification is authorized by 21 U.S.C. Section 335a;
(v)    warrant and represent that, none of their officers, directors, nor, to the Borrower’s Knowledge, any of their employees, agents, Affiliates or any consultant has made on behalf of the Borrower an untrue statement of material fact or fraudulent statement to the FDA or failed to disclose a material fact required to be disclosed to the FDA;
(vi)    warrant and represent that all applications, notifications, submissions, information, claims, reports and statistics and other data and conclusions derived therefrom, utilized as the basis for or submitted in connection with any and all requests for a Required Permit from the FDA or other Governmental Authority relating to the Borrower or any Subsidiary, their business operations and Products, when submitted to the FDA or other Governmental Authority were true, complete and correct in all material respects as of the date of submission or any necessary or required updates, changes, corrections or modifications to such applications, submissions, information and data have been submitted to the FDA or other Governmental Authority;
(vii)    warrant and represent that all preclinical and clinical trials in respect of the activities of the Borrower and its Subsidiaries being conducted by or on behalf of the Borrower and its Subsidiaries producing data submitted to any Governmental Authority, including the FDA and its counterparts worldwide, in connection with any Required Permit, are being or have been conducted in compliance in all material respects with the required experimental protocols, procedures and controls pursuant to applicable Laws;

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(viii)    have not received any written notice that any Governmental Authority, including without limitation the FDA, the DEA, the Office of the Inspector General of HHS or the United States Department of Justice, has commenced or threatened to initiate any enforcement action against the Borrower or a Subsidiary, any action to enjoin the Borrower or a Subsidiary, its officers, directors, employees, shareholders or its agents and Affiliates, from conducting its business at any facility owned or used by it or for any material civil penalty, injunction, seizure or criminal action that could reasonably be expected to have a Material Adverse Effect;
(ix)    neither the Borrower nor any Subsidiary has received from the FDA or the DEA, a Warning Letter, Form FDA-483, “Untitled Letter”, other correspondence or notice setting forth allegedly objectionable observations for correction (except with respect to observations and violations which could not reasonably be expected to have a Material Adverse Effect) or alleged violations of laws and regulations enforced by the FDA or the DEA, or any comparable correspondence from any state or local authority responsible for regulating drug products and establishments, or any comparable correspondence from any foreign counterpart of the FDA with regard to any Product or the manufacture, processing, packing, or holding thereof; and
(x)    neither the Borrower nor any Subsidiary has (A) instituted any Recalls or Market Withdrawals, (B) issued or received any Safety Notices, (C) Knowledge of any material product complaints with respect to the Products, to the extent that any such matter could reasonably be expected to have a Material Adverse Effect.
(b)    With respect to Products:
(i)    All Products are listed on Schedule 1.01; provided, that, if after the Closing Date, the Borrower or any Subsidiary wishes to sell or market any new Product, the Borrower shall update Schedule 1.01 to include such Product;
(ii)    Each Product is not adulterated or misbranded within the meaning of the FDCA;
(iii)    Each Product is not an article prohibited from introduction into interstate commerce under the provisions of Sections 404, 505 or 512 of the FDCA; 
(iv)    Each Product has been manufactured, imported, possessed, owned, warehoused, marketed, promoted, sold, labeled, furnished, distributed and marketed in accordance with all applicable Permits and Laws, except where a failure to do so could not reasonably be expected to have a Material Adverse Effect; and 
(v)    Each Product has been and shall be manufactured in accordance with good manufacturing practices, except where a failure to do so could not reasonably be expected to have a Material Adverse Effect.

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5.21    Anti-Corruption Laws.  The Borrower and its Subsidiaries have conducted their businesses in material compliance with applicable anti-corruption laws and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.
5.22    Solvency.  Each Loan Party is, on a consolidated basis, Solvent.
5.23    Casualty, Etc.  Neither the businesses nor the properties of any Loan Party or any of its Subsidiaries are affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance), condemnation or eminent domain proceeding that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
5.24    Labor Matters.  The Borrower and its Subsidiaries are in compliance in all material respects with all Laws relating to the employment of labor (including those relating to wages and hours, vacation and leaves of absence, worker classification, occupational health and safety, insurance, equal employment opportunity, and collective bargaining.) There are no collective bargaining agreements or Multiemployer Plans covering the employees of the Borrower or any of its Subsidiaries as of the Closing Date and neither the Borrower nor any Subsidiary has suffered any strikes, walkouts, work stoppages or other material labor difficulty within the last five years.  There are no pending unfair labor practice charges filed, or threatened to be filed, with the National Labor Relations Board or similar Governmental Authority.
5.25    Senior Debt.  The Obligations are designated in a writing addressed to the holders of the Obligations executed by, or on behalf of, the holders of the Subordinated Indebtedness as “Senior Debt”, “Designated Senior Debt” or the equivalent thereof for all purposes of all Subordinated Indebtedness.
ARTICLE VI.    AFFIRMATIVE COVENANTS
So long as any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, the Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, and 6.03) cause each Subsidiary to:
6.01    Financial Statements.  Deliver to the Administrative Agent and each Lender, in form and detail reasonably satisfactory to the Administrative Agent and the Required Lenders:
(a)    as soon as available, but in any event within 90 days after the end of each fiscal year of the Borrower (or, if earlier, 15 days after the date required to be filed with the SEC (without giving effect to any extension permitted by the SEC)), a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, and consolidated statements of changes in shareholders’ equity, and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing reasonably acceptable to the Required Lenders, which report and opinion shall be prepared in accordance 

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with generally accepted auditing standards and shall not be subject to “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit;
(b)    as soon as available, but in any event within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower (or, if earlier, 5 days after the date required to be filed with the SEC (without giving effect to any extension permitted by the SEC)) a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, the related consolidated statements of income or operations for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended, and the related consolidated statements of changes in shareholders’ equity and cash flows for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail, such consolidated statements to be certified by the chief executive officer, chief financial officer, treasurer or controller of the Borrower as fairly presenting in all material respects the financial condition, results of operations, shareholders’ equity and cash flows of the Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; and
(c)    as soon as available, but in any event within 45 days after the end of each fiscal year of the Borrower, an annual business plan and budget of the Borrower and its Subsidiaries on a consolidated basis, including forecasts prepared by management of the Borrower, in form reasonably satisfactory to the Administrative Agent and the Required Lenders, of consolidated balance sheets and statements of income or operations and cash flows of the Borrower and its Subsidiaries on a quarterly basis for the immediately following fiscal year (including the fiscal year in which the Maturity Date occurs).
As to any information contained in materials furnished pursuant to Section 6.02(d), the Borrower shall not be separately required to furnish such information under subsection (a) or (b) above, but the foregoing shall not be in derogation of the obligation of the Borrower to furnish the information and materials described in subsections (a) and (b) above at the times specified therein.
6.02    Certificates; Other Information.  Deliver to the Administrative Agent and each Lender, in form and detail reasonably satisfactory to the Administrative Agent and the Required Lenders:
(a)    concurrently with the delivery of the financial statements referred to in Sections 6.01(a) and (b) a report of Kalydeco Product US and Foreign Revenue detailing (i) revenue from sales of the Kalydeco Product derived from customers located in the United States over the trailing twelve month period ending on such date of determination and (ii) revenue from sales of the Kalydeco Product derived from customers located outside of the United States over the trailing twelve month period ending on such date of determination, which revenue, if consisting of currency other than US Dollars, will be calculated using the foreign exchange rates prevailing as of the Closing Date and as at the date of determination, (iii) the relevant foreign exchange rates used in the calculation described in clause (ii) above 

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and the sources of such rates, which rates and sources shall be reasonable satisfactory to the Administrative Agent and (iv) such other detail reasonably requested by the Administrative Agent, duly completed and signed by the chief executive officer, chief financial officer, treasurer or controller of the Borrower (which delivery may, unless the Administrative Agent, or a Lender requests executed originals, be by electronic communication including fax or email and shall be deemed to be an original authentic counterpart thereof for all purposes);
(b)    promptly after any request by the Administrative Agent or any Lender, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or the audit committee of the board of directors) of the Borrower by independent accountants in connection with the accounts or books of the Borrower or any Subsidiary, or any audit of any of them;
(c)    promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Borrower, and copies of all annual, regular, periodic and special reports and registration statements which the Borrower may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant hereto; 
(d)    promptly after the furnishing thereof, copies of any statement or report furnished to any holder of debt securities of any Loan Party or any Subsidiary thereof in an aggregate principal amount in excess of the Threshold Amount pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Lenders pursuant to Section 6.01 or any other clause of this Section 6.02; 
(e)    promptly, and in any event within five Business Days after receipt thereof by any Loan Party or any Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation regarding financial or other operational results of any Loan Party or any Subsidiary thereof and copies of any written communication from the FDA or any other regulatory body, in each case, that is reasonably expected to result in (i) a material negative effect on the Borrower’s ability to obtain approval for ivacaftor in combination with lumacaftor, (ii) a material adverse change to the label (package insert) for, or recall of, KALYDECO or, (iii) post-approval, if any, a material adverse change to the label (package insert), or recall of, ivacaftor in combination with lumacaftor or another CFTR corrector active ingredient;
(f)    as soon as available, but in any event within 60 days after the end of each fiscal year of the Borrower, a report summarizing the insurance coverage (specifying type, amount and carrier) in effect for each Loan Party and its Subsidiaries and containing such additional information as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably specify;
(g)    promptly, such additional information regarding the business, financial or corporate affairs of the Borrower or any Subsidiary, or compliance with the terms of the 

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Loan Documents, as the Administrative Agent or any Lender may from time to time reasonably request;
(h)    promptly after the assertion or occurrence thereof, notice of any action or proceeding against or of any noncompliance by any Loan Party or any of its Subsidiaries with any Environmental Law or Environmental Permit that could (i) reasonably be expected to have a Material Adverse Effect or (ii) cause any property described in the Mortgages to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law; and
(i)    as soon as available, but in any event within 60 days after the end of each fiscal year of the Borrower, a report supplementing the Schedules to this Agreement to the extent there have been any changes thereto, each such report to be signed by a Responsible Officer of the Borrower and to be in a form reasonably satisfactory to the Administrative Agent.
Information required to be delivered pursuant to Section 6.01 or Section 6.02(c) shall be deemed to have been delivered if such information, or one or more annual or quarterly reports containing such information, shall have been posted by the Administrative Agent on the Platform or shall be available on the website of the SEC at http://www.sec.gov or on the website of the Borrower (provided, in each case, that the Borrower has notified the Administrative Agent (including by email) that such information is available on such website and, if requested by the Administrative Agent, shall have provided hard copies to the Administrative Agent).  Information required to be delivered pursuant to Section 6.01 and this Section 6.02 may also be delivered by electronic communications pursuant to procedures approved by the Administrative Agent.  Each Lender shall be solely responsible for timely accessing posted documents and maintaining its copies of such documents.
The Borrower hereby acknowledges that (a) the Administrative Agent may, but shall not be obligated to, make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on Debt Domain, IntraLinks, Syndtrak or another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities.  The Borrower hereby agrees that so long as the Borrower is the issuer of any outstanding debt or equity securities that are registered or issued pursuant to a private offering or is actively contemplating issuing any such securities (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC”, the Borrower shall be deemed to have authorized the Administrative Agent and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in 

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Section 11.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (z) the Administrative Agent shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information”.  
6.03    Notices.  Promptly notify the Administrative Agent and each Lender:
(a)    of the occurrence of any Default;
(b)    of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation, investigation, proceeding or suspension between the Borrower or any Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws;
(c)    of the occurrence of any ERISA Event;
(d)    of any Recall and of any Market Withdrawal affecting the Kalydeco Product or any other Product the Borrower begins marketing after the Closing Date, in each case providing reasonable detail; and
(e)    of any material change in accounting policies or financial reporting practices by the Borrower or any Subsidiary; and 
(f)    of the (i) occurrence of any Disposition or Casualty Event with respect to property or assets for which the Borrower is required to make a mandatory prepayment pursuant to Section 2.05(b)(i), and (ii) incurrence or issuance of any Indebtedness for which the Borrower is required to make a mandatory prepayment pursuant to Section 2.05(b)(ii).
Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto.  Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached.
6.04    Payment of Obligations.  Except where failure to pay and discharge its obligations and liabilities could not reasonably be expected to result in liability equal to or greater than the Threshold Amount, pay and discharge as the same shall become due and payable, all its obligations and liabilities, including (i) all Tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted (which proceedings have the effect of preventing the forfeiture or sale of the property or assets subject to any such Lien) and adequate reserves in accordance with GAAP are being maintained by the Borrower or such Subsidiary; (ii) all lawful claims which, if unpaid, would by law become a Lien upon its property; and (iii) all Indebtedness, as and when due 

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and payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness; and (b) timely file all material tax returns required to be filed.
6.05    Preservation of Existence, Etc.  (a) Preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 7.04 or 7.05; (b) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect; and (d) preserve or renew all of its registered Material IP Rights or Material IP Rights in respect of which an application for registration has been filed or recorded with the United States Copyright office or the United States Patent and Trademark Office, except with the consent of the Required Lenders, which consent may not be unreasonably withheld or delayed.
6.06    Maintenance of Properties.  (a) Maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted; and (b) make all necessary repairs thereto and renewals and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) use the standard of care typical in the industry in the operation and maintenance of its facilities.
6.07    Maintenance of Insurance.  (a) Maintain with financially sound and reputable insurance companies that are not Affiliates of the Borrower, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts as are customarily carried under similar circumstances by such other Persons and all such insurance shall (i) provide for not less than 30 days’ prior notice to the Administrative Agent of termination, lapse or cancellation of such insurance, (ii) name the Administrative Agent as mortgagee (in the case of property insurance) or additional insured on behalf of the Secured Parties (in the case of liability insurance) or loss payee (in the case of property insurance), as applicable, (iii) if reasonably requested by the Administrative Agent, include a breach of warranty clause and (iv) be reasonably satisfactory in all other respects to the Administrative Agent.
6.08    Compliance with Laws.  Comply in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted; or (b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. 
6.09    Books and Records.  Maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of the Borrower or such Subsidiary, as the case may be.
6.10    Inspection Rights; Annual Lender Meetings.

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(a)    Permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower (limited to reasonable out-of-pocket costs of the Administrative Agent) and at such reasonable times during normal business hours and up to once per year, upon reasonable advance notice to the Borrower; provided, however, that when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing all at the expense of the Borrower at any time during normal business hours and without advance notice.
(b)    The Borrower shall meet on an annual basis with the Lenders (including telephonic meetings at the discretion of the Required Lenders) in which the operations, business, properties, liabilities, condition and prospects may be discussed (at the discretion of the Lenders in attendance).  The Borrower shall reimburse the Lenders for all reasonable out-of-pocket costs and expenses incurred it in connection with traveling to and from and attending such meeting.
6.11    Use of Proceeds.  Use the proceeds of the Credit Extensions for Permitted Acquisitions, Investments permitted hereunder and general corporate purposes not in contravention of any Law or of any Loan Document.
6.12    Covenant to Guarantee Obligations and Give Security.
(a)    Upon the formation or acquisition of any new direct Subsidiary (other than an Immaterial Subsidiary) by any Loan Party, then the Borrower shall, at the Borrower’s expense:
(i)    within 15 days after such formation or acquisition, cause such Domestic Subsidiary, and cause each direct and indirect parent of such Subsidiary (if it has not already done so) that is a Domestic Subsidiary, to duly execute and deliver to the Administrative Agent a guaranty or guaranty supplement, in form and substance reasonably satisfactory to the Administrative Agent, guaranteeing the other Loan Parties’ obligations under the Loan Documents (other than  Affected Subsidiaries, Immaterial Subsidiaries or Subsidiaries that are  prohibited from doing so because of law or regulation, but only to the extent such law or regulation is effective with respect to such prohibition),
(ii)    within 15 days after such formation or acquisition, furnish to the Administrative Agent a description of the real and personal properties of such Domestic Subsidiary, in detail reasonably satisfactory to the Administrative Agent,
(iii)    within 30 days after such formation or acquisition, cause such Subsidiary and each direct and indirect parent of such Subsidiary (if it has not already done so) to duly execute and deliver to the Administrative Agent deeds of trust, trust deeds, deeds to secure debt, mortgages, security agreement supplements, Perfection Certificate, IP 

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Security Agreements and other security and pledge agreements, as specified by and in form and substance reasonably satisfactory to the Administrative Agent (including delivery of all certificates, if any, representing the Equity Interests in and of such Subsidiary, and other instruments of the type specified in Section 4.01(a)(iii)), securing payment of all the Obligations of such Subsidiary or such parent, as the case may be, under the Loan Documents and constituting Liens on all such real and personal properties (other than Affected Foreign Subsidiaries, Immaterial Subsidiaries or Subsidiaries that are prohibited from doing so because of law or regulation, but only to the extent such law or regulation is effective with respect to such prohibition),
(iv)    within 30 days after such formation or acquisition, cause such Subsidiary and each direct and indirect parent of such Subsidiary (if it has not already done so) to take whatever action (including the recording of mortgages, the filing of Uniform Commercial Code financing statements, the giving of notices and the endorsement of notices on title documents) may be necessary or advisable in the reasonable opinion of the Administrative Agent to vest in the Administrative Agent (or in any representative of the Administrative Agent designated by it) valid and subsisting Liens on the properties purported to be subject to the deeds of trust, trust deeds, deeds to secure debt, mortgages, security agreement supplements, IP Security Agreements and security and pledge agreements delivered pursuant to this Section 6.12, enforceable against all third parties in accordance with their terms (other than Affected Subsidiaries, Immaterial Subsidiaries or Subsidiaries that are prohibited from doing so because of law or regulation, but only to the extent such law or regulation is effective with respect to such prohibition),
(v)    within 60 days after such formation or acquisition, deliver to the Administrative Agent, upon the request of the Administrative Agent in its reasonable discretion, a signed copy of a favorable opinion, addressed to the Administrative Agent and the other Secured Parties, of counsel for the Loan Parties reasonably acceptable to the Administrative Agent as to the matters contained in clauses (i), (iii) and (iv) above, and as to such other matters as the Administrative Agent may reasonably request, and
(vi)    as promptly as practicable after such formation or acquisition, deliver, upon the request of the Administrative Agent in its reasonable discretion, to the Administrative Agent with respect to each parcel of real property owned by the Domestic Subsidiary that is the subject of such formation or acquisition title policies, surveys and engineering, soils and other reports, and environmental assessment reports, each in scope, form and substance reasonably satisfactory to the Administrative Agent, provided, however, that to the extent that any Loan Party or any of its Subsidiaries shall have otherwise received any of the foregoing items with respect to such real property, such items shall, promptly after the receipt thereof, be delivered to the Administrative Agent.
Notwithstanding anything to the contrary in this Section 6.12(a), no Subsidiary or direct or indirect parent of such Subsidiary shall pledge more than 65% of the Equity Interests of any Affected Subsidiary; provided that if an entity that is an Affected Subsidiary ceases 

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to be an Affected Subsidiary, the provisions of this Section 6.12(a) shall apply as if such Subsidiary is acquired or formed as of the time it ceases to be an Affected Subsidiary.
 
(b)    Upon the acquisition of any property by any Loan Party, if such property, in the reasonable judgment of the Administrative Agent, shall not already be subject to a perfected first priority security interest in favor of the Administrative Agent for the benefit of the Secured Parties, then the Borrower shall, at the Borrower’s expense:
(i)    within 15 days after such acquisition, furnish to the Administrative Agent a description of the property so acquired in detail reasonably satisfactory to the Administrative Agent,
(ii)    within 30 days after such acquisition, cause the applicable Loan Party to duly execute and deliver to the Administrative Agent Mortgages, as specified by and in form and substance reasonably satisfactory to the Administrative Agent, securing payment of all the Obligations of the applicable Loan Party under the Loan Documents and constituting Liens on all such properties,
(iii)    within 30 days after such acquisition, cause the applicable Loan Party to take whatever action (including the recording of mortgages, the filing of Uniform Commercial Code financing statements, the giving of notices and the endorsement of notices on title documents) may be necessary or advisable in the reasonable opinion of the Administrative Agent to vest in the Administrative Agent (or in any representative of the Administrative Agent designated by it) valid and subsisting Liens on such property, enforceable against all third parties,
(iv)    within 60 days after such acquisition, deliver to the Administrative Agent, upon the request of the Administrative Agent in its reasonable discretion, a signed copy of a favorable opinion, addressed to the Administrative Agent and the other Secured Parties, of counsel for the Loan Parties reasonably acceptable to the Administrative Agent as to the matters contained in clauses (ii) and (iii) above and as to such other matters as the Administrative Agent may reasonably request,
(v)    as promptly as practicable after any acquisition of a real property, deliver, upon the request of the Administrative Agent in its reasonable discretion, to the Administrative Agent with respect to such real property title reports, surveys and engineering, soils and other reports, and environmental assessment reports, each in scope, form and substance reasonably satisfactory to the Administrative Agent, provided, however, that to the extent that any Loan Party or any of its Subsidiaries shall have otherwise received any of the foregoing items with respect to such real property, such items shall, promptly after the receipt thereof, be delivered to the Administrative Agent, and

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(vi)    promptly provide evidence that all other action that the Administrative Agent may deem reasonably necessary or desirable in order to create valid first and subsisting Liens on the property described in the Mortgages has been taken.
Notwithstanding anything to the contrary in this Section 6.12(b), no Subsidiary or direct or indirect parent of such Subsidiary shall pledge more than 65% of the Equity Interests of any Affected Subsidiary; provided that if an entity that is an Affected Subsidiary ceases to be an Affected Subsidiary, the provisions of this Section 6.12(b) shall apply as if the Equity Interests of such Subsidiary are acquired as of the time it ceases to be an Affected Subsidiary.
(c)    Upon the request of the Administrative Agent following the occurrence and during the continuance of an Event of Default, the Borrower shall, at the Borrower’s expense:
(ii)    within 10 days after such request, furnish to the Administrative Agent a description of the real and personal properties of the Loan Parties and their respective Subsidiaries in detail reasonably satisfactory to the Administrative Agent,
(iii)    within 15 days after such request, duly execute and deliver, and cause each Loan Party (other than an Affected Subsidiary) (if it has not already done so) to duly execute and deliver to the Administrative Agent Mortgages, security agreement supplements, IP Security Agreements and other security and pledge agreements, as specified by and in form and substance reasonably satisfactory to the Administrative Agent (including delivery of all certificates, if any, representing the Equity Interests in and of such Subsidiary, and other instruments of the type specified in Section 4.01(a)(iii)), securing payment of all the Obligations of the applicable Loan Party under the Loan Documents and constituting Liens on all such properties, 
(iv)    within 30 days after such request, take, and cause each Loan Party (other than an Affected Subsidiary) to take, whatever action (including the recording of mortgages, the filing of Uniform Commercial Code financing statements, the giving of notices and the endorsement of notices on title documents) may be necessary or advisable in the reasonable opinion of the Administrative Agent to vest in the Administrative Agent (or in any representative of the Administrative Agent designated by it) valid and subsisting Liens on the properties purported to be subject to the deeds of trust, trust deeds, deeds to secure debt, mortgages, security agreement supplements, IP Security Agreements and security and pledge agreements delivered pursuant to this Section 6.12, enforceable against all third parties in accordance with their terms,
(v)    within 60 days after such request, deliver to the Administrative Agent, upon the request of the Administrative Agent in its reasonable discretion, a signed copy of a favorable opinion, addressed to the Administrative Agent and the other Secured Parties, of counsel for the Loan Parties reasonably acceptable to the Administrative Agent as to the matters contained in clauses (ii) and (iii) above, and as to such other matters as the Administrative Agent may reasonably request, and

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(vi)    as promptly as practicable after such request, deliver, upon the request of the Administrative Agent in its sole discretion, to the Administrative Agent with respect to each parcel of real property owned by the Borrower and its Subsidiaries, title policies, surveys and engineering, soils and other reports, and environmental assessment reports, each in scope, form and substance reasonably satisfactory to the Administrative Agent, provided, however, that to the extent that any Loan Party or any of its Subsidiaries shall have otherwise received any of the foregoing items with respect to such real property, such items shall, promptly after the receipt thereof, be delivered to the Administrative Agent.
Notwithstanding anything to the contrary in this Section 6.12(c), no Loan Party shall pledge more than of 65% of the Equity Interests of any Affected Subsidiary; provided that if an entity that is an Affected Subsidiary ceases to be an Affected Subsidiary, the provisions of this Section 6.12(c) shall apply to such Subsidiary as of the time it ceases to be an Affected Subsidiary.
(d)    At any time upon reasonable request of the Administrative Agent, promptly execute and deliver any and all further instruments and documents and take all such other action as the Administrative Agent may deem reasonably necessary or desirable in obtaining the full benefits of, or (as applicable) in perfecting and preserving the Liens of, such guaranties, deeds of trust, trust deeds, deeds to secure debt, mortgages, security agreement supplements, IP Security Agreements and other security and pledge agreements.
(e)    Notwithstanding anything to the contrary herein or in any other Loan Document, 
(i)    provided that the Massachusetts Security Corporation complies with the requirements necessary to qualify as a Massachusetts “Security Corporation” pursuant to regulation 830 CMR63.38B.1 issued pursuant to Massachusetts General Law c. 63, §38B, the Massachusetts Security Corporation shall not be required to (i) become a Loan Party, (ii) guarantee the Obligations of Borrower, or (iii) grant any pledge and security interest in and to the assets of the Massachusetts Security Corporation; and
(ii)    the provisions of this Section 6.12 shall be applicable to the Patents and Trademarks of any and all Loan Parties that are registered under the laws of any Relevant Foreign Jurisdictions.
6.13    Compliance with Environmental Laws.  Comply, and cause all lessees and other Persons operating or occupying its properties to comply, in all material respects, with all applicable Environmental Laws and Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and properties; and conduct any investigation, study, sampling and testing, and undertake any cleanup, response or other corrective action necessary to address all Hazardous Materials at, on, under or emanating from any of properties owned, leased or operated by it in accordance with the requirements of all Environmental Laws; provided, however, that neither the Borrower nor any of its Subsidiaries shall be required to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being contested in good faith 

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and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances in accordance with GAAP.
6.14    Further Assurances.  Promptly upon request by the Administrative Agent, or any Lender through the Administrative Agent, (a) correct any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably require from time to time in order to (i) carry out more effectively the purposes of the Loan Documents, (ii) to the fullest extent permitted by applicable law, subject any Loan Party’s or any of its Subsidiaries’ properties, assets, rights or interests to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Loan Document or under any other instrument executed in connection with any Loan Document to which any Loan Party or any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do so.
6.15    Products and Required Permits.
(a)    Without limiting the generality of Section 6.08, in connection with the development, testing, manufacture, marketing or sale of each and any Product by the Borrower or any Subsidiary (other than Products abandoned in the ordinary course of the Borrower’s business), the Borrower or such Subsidiary shall comply in all material respects with all Required Permits at all times issued by any Government Authority, specifically including the FDA, with respect to such development, testing, manufacture, marketing or sales of such Product by the Borrower or such Subsidiary.
(b)    Without limiting the generality of clause (a) above, Borrower shall immediately and in any case within five (5) Business Days give written notice to Administrative Agent upon a Responsible Officer of the Borrower becoming aware that any of the representations and warranties set forth in Section 5.20 with respect to any Product have become incorrect in any material respect (provided that, for the avoidance of doubt, the giving of such notice shall not cure or result in the automatic waiver of any Default or Event of Default that may have resulted from such breach of such representation or warranty).
6.16    [Intentionally Omitted]  
6.17    Information Regarding Collateral
(b)    Not effect any change (i) in any Loan Party’s legal name, (ii) in the location of any Loan Party’s chief executive office, (iii) in any Loan Party’s identity or organizational structure, (iv) in any Loan Party’s Federal Taxpayer Identification Number or organizational identification number, if any, or (v) in any Loan Party’s jurisdiction of organization (in each 

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case, including by merging with or into any other entity, reorganizing, dissolving, liquidating, reorganizing or organizing in any other jurisdiction), until (A) it shall have given the Administrative Agent not less than 15 days’ prior written notice (in the form of certificate signed by a Responsible Officer), or such lesser notice period agreed to by the Administrative Agent, of its intention so to do, clearly describing such change and providing such other information in connection therewith as the Administrative Agent may reasonably request and (B) it shall have taken all action reasonably satisfactory to the Administrative Agent to maintain the perfection and priority of the security interest of the Administrative Agent for the benefit of the Secured Parties in the Collateral, if applicable. Each Loan Party agrees to promptly provide the Administrative Agent with certified Organization Documents reflecting any of the changes described in the preceding sentence.
(c)    Concurrently with the delivery of financial statements pursuant to Section 6.01(a), deliver to the Administrative Agent a Perfection Certificate and a certificate of a Responsible Officer of the Borrower.
6.18    Material Contracts.  Perform and observe all the terms and provisions of each Material Contract to be performed or observed by it, maintain each such Material Contract in full force and effect, enforce each such Material Contract in accordance with its terms, take all such action to such end as may be from time to time reasonably requested by the Administrative Agent and, upon request of the Administrative Agent, make to each other party to each such Material Contract such demands and requests for information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to make under such Material Contract, and cause each of its Subsidiaries to do so, except, in any case, where the failure to do so, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
6.19    Designation as Senior Debt.  Designate all Obligations as “Designated Senior Debt” under, and defined in, Subordinated Indebtedness.
6.20    Anti-Corruption Laws. Conduct its businesses in compliance in all material respects with applicable anti-corruption laws and maintain policies and procedures designed to promote and achieve compliance with such laws.
6.21    Post-Closing Covenants. On or before the applicable date set forth below for each action described below, or such later date agreed to in writing by Administrative Agent in its sole discretion, Borrower shall take, or cause to be taken, the action specified and deliver the required agreements, as applicable.  The failure to have taken such actions or deliver such agreements shall not constitute a Default or an Event of Default or a breach of any representation and warranty until the date specified below (as such date may be extended as provided above in this Section 6.21); provided that failure to have taken such action or make such required delivery by the date required by this Section 6.21 shall be an immediate Event of Default.
(a)    Loan Parties shall obtain and deliver to Agent within 60 days after the Closing Date fully executed Control Agreements (as defined in the Security Agreement) for all deposit accounts, securities accounts and commodities accounts of the Loan Parties (other than Excluded Accounts (as defined in the Security Agreement)).

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(b)    Loan Parties shall within 60 days of the Closing Date deliver a pledge, pursuant to documentation reasonably acceptable to Administrative Agent and effective under the laws of the Relevant Foreign Jurisdictions, of all Patents and Trademarks registered under such laws, together with opinions of counsel in form and substance reasonably satisfactory to the Administrative Agent, and thereafter, within 60 days of notice from the Administrative Agent, deliver a pledge, pursuant to documentation reasonably acceptable to the Administrative Agent and effective under the laws of such additional jurisdiction as the Administrative Agent shall reasonably request, all Patents and Trademarks registered under such laws, together with opinions of counsel in form and substance reasonably satisfactory to the Administrative Agent.
(c)    Loan Parties shall within 30 days of the Closing Date deliver to the Administrative Agent all certificates and instruments evidencing the Equity Interests of the direct Foreign Subsidiaries of the Loan Parties that constitute Pledged Collateral (as defined in the Security Agreement), accompanied by undated stock powers or instruments of transfer executed in blank.
(d)    Loan Parties shall within 14 days of the Closing Date deliver to the Administrative Agent all Pledged Debt Securities (as defined in the Security Agreement), to the extent not already delivered on the Closing Date.  
ARTICLE VII.    NEGATIVE COVENANTS
So long as any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, the Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly:
7.01    Liens.  Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, or sign or file or suffer to exist under the Uniform Commercial Code of any jurisdiction a financing statement that names the Borrower or any of its Subsidiaries as debtor, or assign any accounts or other right to receive income, other than the following:
(j)    Liens pursuant to any Loan Document;
(k)    Liens existing on the date hereof and listed on Schedule 5.08(b) and any renewals or extensions thereof, provided that (i) the property covered thereby is not changed, (ii) the amount secured or benefited thereby is not increased except as contemplated by Section 7.03(b), (iii) the direct or any contingent obligor with respect thereto is not changed, and (iv) any renewal or extension of the obligations secured or benefited thereby is permitted by Section 7.03(b);
(l)    Liens for taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

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(m)    carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate proceedings diligently conducted (which proceedings have the effect of preventing the forfeiture or sale of the property or assets subject to any such Lien), if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;
(n)    pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA;
(o)    deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;
(p)    easements, rights-of-way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person; 
(q)    Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.01(h); 
(r)    Liens securing Indebtedness permitted under Section 7.03(e) and 7.03(v); provided that (A) such Liens attach concurrently with or within 270 days after the acquisition, repair, replacement, construction or improvement (as applicable) of the property subject to such Liens, (B) such Liens do not at any time encumber any property other than the property financed by such Indebtedness except for accessions to such property and the proceeds and the products thereof and (C) with respect to Capitalized Lease Obligations, such Liens do not at any time extend to or cover any assets (except for accessions to or proceeds of such assets) other than the assets subject to such Capitalized Lease Obligations; provided further that individual financings of equipment provided by one lender may be cross collateralized to other financings of equipment provided by such lender; 
(s)    Liens on the assets of Foreign Subsidiaries securing Indebtedness permitted under Section 7.03(j); 
(t)    Liens (other than on Cystic Fibrosis Drug Franchise Assets) securing Indebtedness permitted by 7.03(g) in an aggregate amount not to exceed the Threshold Amount at any time outstanding;
(u)    leases, licenses, subleases or sublicenses to the extent permitted under 7.05(f) and 7.05(j);
(v)    Liens (A) in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the 

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ordinary course of business or (B) on specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’ acceptances or letters of credit permitted under Section 7.03 and issued  or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods in the ordinary course of business;
(w)    Liens of a collection bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection;
(x)    Liens (A) on cash advances or escrow deposits in favor of the seller of any property to be acquired in an Investment permitted pursuant to Section 7.02 to be applied against the purchase price for such Investment or otherwise in connection with any escrow arrangements with respect to any such Investment or any Disposition permitted under Section 7.05 (including any letter of intent or purchase agreement with respect to such Investment or Disposition), or (B) consisting of an agreement to dispose of any property in a Disposition permitted under Section 7.05, in each case, solely to the extent such Investment or Disposition, as the case may be, would have been permitted on the date of the creation of such Lien;
(y)    Liens granted by a Subsidiary that is not a Loan Party in favor of any Loan Party;
(z)    Liens existing on property at the time of its acquisition or existing on the property of any Person at the time such Person becomes a Subsidiary, in each case after the date hereof (other than Liens on the Equity Interests of any Person that becomes a Subsidiary); provided that (A) such Lien was not created in contemplation of such acquisition or such Person becoming a Subsidiary, (B) such Lien does not extend to or cover any other assets or property (other than the proceeds or products thereof and other than after-acquired property subject to a Lien securing Indebtedness and other obligations incurred prior to such time and which Indebtedness and other obligations are permitted hereunder that require or include, pursuant to their terms at such time, a pledge of after-acquired property, it being understood that such requirement shall not be permitted to apply to any property to which such requirement would not have applied but for such acquisition), and (C) the Indebtedness secured thereby is permitted under Section 7.03(n);
(aa)    Liens deemed to exist in connection with Investments in repurchase agreements related to Cash Equivalents;
(bb)    Liens that are contractual rights of setoff (A) relating to the establishment of depository relations with banks not given in connection with the incurrence of Indebtedness for borrowed money or (B) relating to purchase orders and other agreements entered into with customers of the Borrower or any of its Subsidiaries in the ordinary course of business;
(cc)    Liens on cash pledged to secure Indebtedness permitted by Section 7.03(h);

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(dd)    Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto and deposits made in the ordinary course of business to secure liability to insurance carriers; and
(ee)    (A) zoning, building, entitlement and other land use regulations by Governmental Authorities with which the normal operation of the business complies, and (B) any zoning or similar law or right reserved to or vested in any Governmental Authority to control or regulate the use of any real property that does not materially interfere with the ordinary conduct of the business of the Borrower or any of its Subsidiaries.
7.02    Investments.  Make any Investments, except:
(g)    Investments held by the Borrower or such Subsidiary in the form of Cash Equivalents;
(h)    Loans or advances to officers, directors and employees of the Borrower and Subsidiaries (i) in an aggregate amount not to exceed $5,000,000 at any time outstanding, for relocation (ii) to purchase stock in the Borrower, provided that such Investments shall be non-cash, and (iii) for entertainment, travel and similar ordinary business purposes;
(i)    (i) Investments by the Borrower and its Subsidiaries in their respective Subsidiaries outstanding on the date hereof, (ii) additional Investments by the Borrower and its Subsidiaries in Loan Parties (other than Holdings), (iii) additional Investments by Subsidiaries of the Borrower that are not Loan Parties in other Subsidiaries that are not Loan Parties and (iv) so long as no Event of Default has occurred and is continuing or would result from such Investment, additional Investments by the Loan Parties in Subsidiaries that are not Loan Parties in an aggregate amount invested from the date hereof not to exceed, in the aggregate with any Guarantees provided under Section 7.03(k), $20,000,000 in cash Investments over the term of this Agreement (provided that Cystic Fibrosis Drug Franchise Assets may not be invested in non-Loan Party Subsidiaries under this Section 7.02(c));
(j)    Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;
(k)    Guarantees permitted by Section 7.03; 
(l)    Investments existing on the date hereof (other than those referred to in Section 7.02(c)(i)) and set forth on Schedule 5.08(e);
(m)    other Investments not exceeding $15,000,000 in the aggregate in any fiscal year of the Borrower;

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(n)    acquisitions of, investments in, and loans and advances to, joint ventures and other Persons by the Borrower and its Subsidiaries, so long as the aggregate amount invested, loaned or advanced (determined without regard to any write-downs or write-offs of such investments, loans or advances) does not exceed, when aggregated with all other Investments made by the Borrower and its Subsidiaries pursuant to this Section 7.02(h) and Section 7.02(i), $100,000,000 per year, subject to the further provisions of this Section 7.02;
(o)    Permitted Acquisitions; 
(p)    [intentionally omitted];
(q)    promissory notes and other non-cash consideration received in connection with Dispositions permitted by Section 7.05;
(r)    Investments in the ordinary course of business consisting of Uniform Commercial Code Article 3 endorsements for collection or deposit and Uniform Commercial Code Article 4 customary trade arrangements with customers consistent with past practices;
(s)    advances of payroll payments to employees in the ordinary course of business;
(t)    Investments of a Subsidiary acquired after the Closing Date or of a Person merged, amalgamated or consolidated with any Subsidiary in accordance with this Section and Section 7.04 after the Closing Date (other than existing Investments in Subsidiaries of such Subsidiary or Person) to the extent that such Investments were not made in contemplation of or in connection with such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger, amalgamation or consolidation;
(u)    the licensing, sublicensing, or contribution of rights in any IP Rights  pursuant to licensing, joint marketing, distribution, or development arrangements in the ordinary course of business and permitted under Section 7.05(f);
(v)    Investments to the extent that payment for such Investments is made solely by the issuance of Equity Interests of the Borrower (or any direct or indirect parent of the Borrower) to the seller of such Investments;
(w)    Subsidiaries of Borrower may be established or created if the Borrower and such Subsidiary comply with the requirements of Section 6.12, if applicable; provided that, in each case, to the extent such new Subsidiary is created solely for the purpose of consummating an acquisition permitted by this Section 7.02, and such new Subsidiary at no time holds any assets or liabilities other than any merger consideration contributed to it contemporaneously with the closing of such transactions, such new Subsidiary shall not be required to take the actions set forth in Section 6.12, as applicable, until the respective acquisition is consummated (at which time the surviving entity of the respective transaction shall be required to so comply in accordance with the provisions thereof); 

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(x)    Investments in Swap Contracts permitted hereunder; and
(y)    Investments by the Borrower in the Massachusetts Security Corporation;
provided that the baskets in sections 7.02(h) and 7.02(i) above shall be unlimited:
(x) if during the Borrower’s most recently ended fiscal quarter the Borrower’s net product revenue (as calculated in accordance with GAAP consistent with past practice)  exceeded $400,000,000; or 
(y) if the requirements of clause (x) above have not been satisfied for such fiscal quarter, to the extent that the Borrower and its Subsidiaries maintain in the aggregate at least $450,000,000 in cash and/or Cash Equivalents (the “Required Cash”) (which value will be determined on a daily basis) immediately after giving effect to the applicable Investment; provided that Required Cash as used in this Section shall be increased by the amount of any advance of Incremental Loans and shall be reduced by any payments made under Section 2.03(a) or Section 2.04.  
Notwithstanding anything in this Agreement to the contrary, without consent of the Administrative Agent, cash payments for contingent or other obligations shall not be permitted with respect to any Investment otherwise permitted under Section 7.02(h) or 7.02(i) unless and only to the extent the Borrower and its Subsidiaries are permitted to make an Investment in such amount under Section 7.02(h) or 7.02(i) (as modified by these further provisions to Section 7.02) on the date of such cash payment.
7.03    Indebtedness.  Create, incur, assume or suffer to exist any Indebtedness, except:
(a)    Indebtedness under the Loan Documents;
(b)    Indebtedness outstanding on the date hereof and listed on Schedule 7.03 and any refinancings, refundings, renewals or extensions thereof; provided that (i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder and the direct or any contingent obligor with respect thereto is not changed, as a result of or in connection with such refinancing, refunding, renewal or extension and  (ii) the terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Loan Parties or the Lenders than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing or extending Indebtedness does not exceed the then applicable market interest rate;

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(c)    Guarantees of the Borrower or any Guarantor in respect of Indebtedness otherwise permitted hereunder of the Borrower or any Guarantor;
(d)    obligations (contingent or otherwise) of the Borrower or any Subsidiary existing or arising under any Swap Contract, provided that such obligations are (or were) entered into by such Person in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person, and not for purposes of speculation or taking a “market view”;
(e)    Indebtedness in respect of capital leases (other than capitalized real estate leases), Synthetic Lease Obligations and purchase money obligations for fixed or capital assets within the limitations set forth in Section 7.01(i); provided, however, that the aggregate amount of all such Indebtedness at any one time outstanding shall not exceed (i) $35,000,000 per year for fiscal year 2014 and (ii) $30,000,000 per year for each fiscal year thereafter;
(f)    Indebtedness under the Master Lease Agreement No. 1, dated as of June 26, 2013, among the Borrower and Macquarie Corporate and Asset Funding Inc., and related documents and all refinancings thereof;
(g)    Indebtedness in an aggregate principal amount not to exceed $15,000,000 at any time outstanding;
(h)    Indebtedness in respect of a letter of credit facility with Bank of America, N.A. (or one of its affiliates or any other letter of credit issuer) in an aggregate amount not to exceed $35,000,000; 
(i)    Subordinated Indebtedness consisting of convertible subordinated debt instruments so long as (i) such convertible subordinated debt matures at least 12 months after the Maturity Date, (ii) such convertible subordinated debt does not amortize or make any other cash principal payments other than as agreed to by the Required Lenders, (iii) interest and fees with respect to such convertible subordinated debt are on prevailing market terms and (iv) such convertible subordinated debt is subordinated to the Obligations on customary terms reasonably acceptable to the Required Lenders;
(j)    Indebtedness of Foreign Subsidiaries in an aggregate amount not to exceed $20,000,000 at any time outstanding;
(k)    Unsecured Guarantees by the Borrower or any of its Subsidiaries of Indebtedness of Foreign Subsidiaries pursuant to Section 7.03(j);
(l)    Indebtedness permitted pursuant to Section 7.02(c);
(m)    Indebtedness of any Subsidiary that is not a Loan Party owing to any other Subsidiary that is not a Loan Party;

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(n)    Indebtedness of any Person that becomes a Subsidiary of the Borrower (or of any Person not previously a Guarantor that is merged, amalgamated or consolidated with or into the Borrower or a Guarantor) after the Closing Date as a result of a Permitted Acquisition, or Indebtedness of any Person that is assumed by the Borrower or any of its Subsidiaries in connection with an acquisition of assets by the Borrower or such Subsidiary in a Permitted Acquisition, and all refinancings thereof; provided that (A) such Indebtedness is not incurred in contemplation of such Permitted Acquisition, (B) provided further that the aggregate principal amount of Indebtedness that is outstanding in reliance on this clause (vii) shall not, at any time outstanding, exceed $25,000,000;
(o)    Indebtedness representing deferred compensation or stock-based compensation to employees of the Borrower and its Subsidiaries incurred in the ordinary course of business;
(p)    Indebtedness constituting indemnification obligations or obligations in respect of purchase price or other similar adjustments incurred in a Permitted Acquisition, any other Investment or any Disposition, in each case permitted under this Agreement;
(q)    Indebtedness consisting of obligations under deferred consideration (earn-outs, indemnifications, incentive non-competes, milestone payments and other contingent obligations) or other similar arrangements incurred in connection with any Permitted Acquisition or other Investment permitted hereunder;
(r)    obligations of the Borrower or any of its Subsidiaries in respect of any overdraft and related liabilities arising from treasury, depository, credit card, purchasing card and cash management services or any automated clearing house transfers of funds and other Indebtedness in respect of netting services, overdraft protections, cash pooling, employee credit cards and similar arrangements, in each case, in connection with deposit accounts in the ordinary course of business;
(s)    Indebtedness incurred by the Borrower or any of its Subsidiaries in respect of bankers’ acceptances or similar instruments (other than letters of credit) issued or created in the ordinary course of business in an aggregate amount not to exceed $5,000,000, including in respect of workers compensation claims, health, disability or other employee benefits or property, casualty or liability insurance or self-insurance or other reimbursement-type obligations (other than obligations in respect of letters of credit) regarding workers compensation claims; provided that the reimbursement obligations in respect thereof are reimbursed within 60 days following the date thereof;
(t)    obligations in respect of performance, bid, appeal and surety bonds and performance and completion guarantees and similar obligations provided by the Borrower or any of its Subsidiaries, in each case in the ordinary course of business or consistent with past practice and in an aggregate amount not to exceed $5,000,000; 
(u)    Indebtedness consisting of insurance premium financing and take or pay obligations contained in supply agreements in the ordinary course of business; and 

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(v)    Indebtedness in respect of capitalized real estate leases.
7.04    Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so long as no Event of Default exists or would result therefrom:
(a)    any Subsidiary may merge with or liquidate into (i) the Borrower, provided that the Borrower shall be the continuing or surviving Person, or (ii) any one or more other Subsidiaries, provided that when any Guarantor is merging with or liquidating into another Subsidiary, the Guarantor shall be the continuing or surviving Person; 
(b)    any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrower or to another Subsidiary; provided that if the transferor in such a transaction is a Guarantor, then the transferee must either be the Borrower or Guarantor; 
(c)    the Borrower may merge, amalgamate or consolidate with any other Person; provided that (A) the Borrower shall be the continuing or surviving Person, (B) any Investment in connection therewith is permitted under Section 7.02, (C) no Event of Default shall have occurred and be continuing and (D) that such merger, consolidation or amalgamation shall not include or result in any contingent liabilities that could reasonably be expected to be materially adverse to the business, financial condition, or operations of the Borrower and its Subsidiaries, taken as a whole (as determined in good faith by the board of directors (or persons performing similar functions) of the Borrower or such Subsidiary if the board of directors is otherwise approving such transaction and, in each other case, by a Responsible Officer);
(d)    any Subsidiary of the Borrower may merge, consolidate or amalgamate with any other Person in order to effect an Investment permitted pursuant to Permitted Acquisitions under Section 7.02; provided that the continuing or surviving Person shall be a Subsidiary of the Borrower (or if any of the Subsidiaries is a Loan Party then the surviving Person shall be a Loan Party), which together with each of its Subsidiaries, shall have complied with the requirements of Section 6.12 (or arrangements for the compliance with such requirements within the applicable times set forth in Section 6.12 shall have been made) and if the other party to such transaction is not a Loan Party, no Event of Default exists after giving effect to such transaction; and
(e)    any Subsidiary of the Borrower may effect a merger, dissolution, liquidation consolidation or amalgamation to effect a Disposition permitted pursuant to Section 7.05; provided that if the other party to such transaction is not a Loan Party, no Event of Default exists after giving effect to such transaction.
7.05    Dispositions.  Make any Disposition or enter into any agreement to make any Disposition, except:

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(a)    Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business;
(b)    Dispositions of inventory in the ordinary course of business;
(c)    Dispositions of equipment to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are reasonably promptly applied to the purchase price of such replacement property;
(d)    Dispositions of property by the Borrower or any Subsidiary to the Borrower or to a wholly-owned Subsidiary; provided that, if the transferor of such property is the Borrower or a Guarantor, the transferee thereof must either be the Borrower or a Guarantor;
(e)    transactions permitted by Section 7.04, Investments permitted by Section 7.02, Restricted Payments permitted by Section 7.06 and Liens permitted by Section 7.01, to the extent they can also be deemed to be Dispositions; 
(f)    the licensing, sublicensing or contribution of rights in any IP Rights pursuant to licensing, joint marketing, distribution, or development arrangements in the ordinary course of business in the life science industry and substantially consistent with past practice (provided if any one or more of the foregoing could reasonably be expected to result in a Material Adverse Effect, the prior written consent of the Required Lenders shall be required, which consent may not be unreasonably withheld or delayed);
(g)    Dispositions by the Borrower and its Subsidiaries of Products and business lines not otherwise permitted under this Section 7.05; provided that at the time of such Disposition, no Event of Default shall exist or would result from such Disposition;
(h)    Dispositions of Cash Equivalents in the ordinary course of business and consistent with past practices;
(i)    Dispositions of accounts receivable in connection with the collection or compromise thereof (other than in connection with financing transactions);
(j)    leases, subleases of real property or equipment, licenses or sublicenses, in each case in the ordinary course of business in the life science industry and that do not materially interfere with the business of the Borrower and its Subsidiaries, taken as a whole;
(k)    transfers of property subject to Casualty Events upon receipt of the Net Proceeds of such Casualty Event;
(l)    Dispositions of Investments in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the joint venture parties set forth in joint venture arrangements and similar binding arrangements;

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(m)    the lapse or abandonment of any IP Rights (other than Material IP Rights) or registrations (or applications for registration) with respect thereto which in the good faith judgment of the Borrower are no longer used or useful in its business, to the extent permitted under the Security Agreement;
(n)    the unwinding of Swap Contracts permitted hereunder pursuant to their terms; and
(o)    Dispositions of IP Rights (other than an assignment of  Patents and Trademarks that are Cystic Fibrosis Drug Franchise Assets) owned by a Loan Party to a Foreign Subsidiary of the Borrower; provided that (i) the Foreign Subsidiary receiving such IP Rights shall covenant and agree not to pledge any interest in such IP Rights to any Person, (ii) any such transferred IP Rights shall be subject to an  exclusive license in favor of the Loan Parties for use in the United States in form and substance reasonably satisfactory to the Administrative Agent, and which license shall not be subject to any anti-assignment or change of control provisions (in each case limiting the Loan Party), shall expressly permit the creation, continuation and performance of the Security Interests (as defined in the Security Agreement), shall be terminable at will and subject to a first lien security interest in favor of the Administrative Agent, and (iii) any Foreign Subsidiary receiving such IP Rights shall not conduct any other material business other than (1) holding such IP Rights, (2) entering into license agreements in the ordinary course of business with Foreign Subsidiaries for use of such IP Rights in foreign jurisdictions and (3) entering into license agreements with third parties for use in foreign jurisdictions in the ordinary course of business in the life sciences industry; provided that the license agreement referred to in clause (ii) shall, at a minimum, (1) be perpetual, (2) provide the Administrative Agent and its successors and assigns the rights and remedies upon an Event of Default provided for other permitted IP Rights licenses and arrangements under the Security Agreement, (3) require the Administrative Agent’s consent for any amendment of the license agreement that alters the terms and conditions of the license agreement in any manner adverse to the interests of a Loan Party or the Lenders, (4) specify that it may not be terminated in connection with a Loan Party’s bankruptcy, (5) include the right of any Loan Party that is a party thereto to assume and assign the license in the event of its bankruptcy or insolvency, and (6) include a covenant by the Foreign Subsidiary not to move for, or consent to, the termination of or rejection of the license in a bankruptcy or insolvency of the Foreign Subsidiary;
provided, however, that (x) any Disposition pursuant to subsections (a) through (l)) shall be for fair market value, other than any Disposition of the type referenced in the proviso to subsections (d), (i) and (k) above and (y) the Dispositions permitted under subsections (e) (other than with respect to 7.02(o)), (g), (l)and (m) above shall not be permitted to the extent relating to Cystic Fibrosis Drug Franchise Assets or the Borrower or Subsidiaries that own or otherwise have rights with respect thereto.
7.06    Restricted Payments.  Declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that, so long as no Event 

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of Default shall have occurred and be continuing at the time of any action described below or would result therefrom:
(a)    each Subsidiary may make Restricted Payments to the Borrower, the Guarantors and any other Person that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of the type of Equity Interest in respect of which such Restricted Payment is being made;
(b)    the Borrower and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock or other common Equity Interests of such Person; 
(c)    the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received from the substantially concurrent issue of new shares of its common stock or other common Equity Interests; and
(d)    the Borrower and each of its Subsidiaries may (A) repurchase at the issue price Equity Interests held by former directors, officers, employees and consultants; (B) pay withholding or similar Taxes payable by present or former directors, officers, employees or consultants in respect of their Equity Interests and (C) repurchase Equity Interests deemed to occur upon a cashless exercise of options or warrants, provided, that such payments in clauses (A) and (B) shall not exceed $5,000,000 in the aggregate; 
(e)    to the extent constituting Restricted Payments, the Borrower and its Subsidiaries may enter into transactions expressly permitted by Sections 7.02 and 7.04; and
(f)    the Borrower or any of its Subsidiaries may (i) pay cash in lieu of fractional shares in connection with any dividend, split or combination thereof or any Permitted Acquisition and (ii) honor any non-cash conversion request by a holder of convertible Indebtedness and make cash payments in lieu of fractional shares in connection with any such conversion.
7.07    Change in Nature of Business.  Engage in any material line of business substantially different from those lines of business conducted by the Borrower and its Subsidiaries on the date hereof or any business substantially related or incidental thereto.
7.08    Transactions with Affiliates.  Enter into any transaction of any kind with any Affiliate of the Borrower, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to the Borrower or such Subsidiary as would be obtainable by the Borrower or such Subsidiary at the time in a comparable arm’s length transaction with a Person other than an Affiliate, provided that the foregoing restriction shall not apply to transactions between or among the Borrower and any Guarantor or between and among any Guarantors.
7.09    Burdensome Agreements.  Enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that (a) limits the ability (i) of any Subsidiary to make 

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Restricted Payments to the Borrower or any Guarantor or to otherwise transfer property to the Borrower or any Guarantor (other than covenants in debt agreements permitted by Section 7.03(g) (j) or (n) in respect of Foreign Subsidiaries), (ii) of any Domestic Subsidiary to Guarantee the Indebtedness of the Borrower or (iii) of the Borrower or any Domestic Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person; provided, however, that this clause (iii) shall not prohibit any negative pledge incurred or provided in favor of (A) any holder of Indebtedness permitted under Section 7.03(e) solely to the extent any such negative pledge relates to the property financed by or the subject of such Indebtedness or (B) any party to a Customer Agreement, license or other similar agreement or arrangement permitted by Section 7.10; or (b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person. 
7.10    Customer Agreements. Enter into any Customer Agreement, license or other similar agreement or arrangement that restricts security interests or other assignments or that would restrict or otherwise impair the rights of the Administrative Agent and the Lenders in the event of a “change in control” (or like term), unless either (a) the Borrower determines in its good faith business judgment that such a restriction is commercially reasonable under the circumstances (provided that this clause (a) shall not apply to such arrangements among the Borrower and its Subsidiaries) or (b) the Administrative Agent and the Required Lenders shall have given their prior written consent.
7.11    Use of Proceeds.  Use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose; provided that the Borrower and its Subsidiaries may receive and hold margin stock under Customer Agreements, licenses and similar agreements or arrangements with an aggregate value not to exceed 10% of the consolidated assets of the Borrower and its Subsidiaries at any time.
7.12    Kalydeco Product Revenue.  Borrower shall maintain a minimum trailing twelve months Kalydeco Product US and Foreign Revenue of at least $400,000,000 tested on a quarterly basis and calculated using the foreign currency exchange rates used in producing the financial statements delivered under clauses (a) and (b) of Section 6.01 and otherwise calculated in a manner consistent with the manner in which revenue is calculated for such financial statements (or, in the event Kalydeco Product US and Foreign Revenue is less than $400,000,000, but greater than $300,000,000, the Borrower may use the foreign currency exchange rates for the relevant currencies that were in effect on the Closing Date to the extent as such exchange rates are obtained from the same source as the rates used in producing the most recent financial statements delivered under clauses (a) and (b) of Section 6.01).
7.13    Capital Expenditures.  Make or become legally obligated to make any expenditure in respect of the purchase or other acquisition of any fixed or capital asset (excluding normal replacements and maintenance which are properly charged to current operations) at any time when an Event of Default (including non-compliance with Section 7.11) has occurred and is continuing. 
7.14    Amendment of Organization Documents.  Amend any of its Organization Documents in a manner adverse to the Lenders in any material respect. 

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7.15    Accounting Changes.  Make any change in (a) accounting policies or reporting practices, except as required by GAAP, or (b) fiscal year.  
7.16    Prepayments, Etc. of Indebtedness.  Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment in violation of any subordination terms of, any Indebtedness, except (a) the prepayment of the Credit Extensions in accordance with the terms of this Agreement and (b) regularly scheduled or required repayments or redemptions of Indebtedness set forth in Schedule 7.03 and refinancings and refundings of such Indebtedness in compliance with Section 7.03(g).
7.17    Designation of Senior Debt.  Designate any Indebtedness (other than the Indebtedness under the Loan Documents) of the Borrower or any of its Subsidiaries as “Designated Senior Debt” (or any similar term) under, and as defined in, any Subordinated Indebtedness.
7.18    Amendment, Etc. of Material Contracts and Indebtedness.  (a) Take any action (including modifications and terminations) in connection with any Material Contract (other than as set forth in clauses (b) and (c) below) that would impair the value of the interest or rights of any Loan Party thereunder or that would adversely impair the rights or interests of the Administrative Agent or any Lender in any material respect, except with the written consent of the Required Lenders, which consent may not be unreasonably withheld or delayed or (b) amend, modify or change in any manner any term or condition of any Indebtedness (other than Subordinated Indebtedness) set forth in Schedule 7.03, except for any refinancing, refunding, renewal or extension thereof permitted by Section 7.03(g), that would impair the value of the interest or rights of any Loan Party thereunder or that would adversely impair the rights or interests of the Administrative Agent or any Lender in any material respect, except with the written consent of the Required Lenders, which consent may not be unreasonably withheld or delayed or (c) amend, modify or change in any manner any term or condition of any Subordinated Indebtedness other than pursuant to the subordination provisions thereof.
7.19    Sanctions.  Directly or indirectly, use the proceeds of any Credit Extension, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other individual or entity, to fund any activities of or business with any individual or entity, or in any Designated Jurisdiction, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by any individual or entity (including any individual or entity participating in the transaction, whether as Lender, Administrative Agent, or otherwise) of Sanctions.  
7.20    Anti-Corruption Laws.  Directly or indirectly use the proceeds of any Credit Extension for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, or other similar legislation in other jurisdictions.
7.21    Pension Plan. Adopt, sponsor or maintain a Pension Plan or retiree group medical plan.
7.22    Massachusetts Security Corporation.  

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(a)    The Borrower shall not permit any Subsidiary that is a Massachusetts Security Corporation to hold cash, Cash Equivalents or other investments or securities with an aggregate value in excess of $1.00, unless the Loan Parties maintain at least $300,000,000 in cash and/or Cash Equivalents (which value will be determined on a daily basis) in Deposit Accounts and/or Securities Accounts, which cash, Cash Equivalents, Deposit Accounts and Securities Accounts are subject to the control of the Administrative Agent under Control Agreements (as defined in the Security Agreement).  For the avoidance of doubt, the Loan Parties are not required to maintain any minimum balance in cash and/or Cash Equivalents in Deposit Accounts and/or Securities Accounts, which cash, Cash Equivalents, Deposit Accounts and Securities Accounts are subject to the control of the Administrative Agent under Control Agreements.
(b)    With regard to the Massachusetts Security Corporation, conduct, transact or otherwise engage in any material operating or business activities other than investment activities that would not reasonably be expected to result in the loss of the Massachusetts Security Corporation’s qualification as a Massachusetts security corporation under Mass. Gen. L. c. 63, §38B.
ARTICLE VIII.    EVENTS OF DEFAULT AND REMEDIES 
8.01    Events of Default.  Any of the following shall constitute an Event of Default:
(z)    Non-Payment.  The Borrower or any other Loan Party fails to pay (i) when and as required to be paid herein, any amount of principal of any Loan, or (ii) within three Business Days after the same becomes due, any interest on any Loan, or any fee due hereunder, or (iii) within five Business Days after the same becomes due, any other amount payable hereunder or under any other Loan Document; or
(aa)    Specific Covenants.  (i) The Borrower fails to perform or observe any term, covenant or agreement contained in any of Section 6.03, 6.05, 6.10, 6.11, 6.12, 6.15, 6.17, 6.19, 6.20, 6.21 or Article VII, (ii) the Borrower fails to perform or observe any term, covenant or agreement contained in Section 6.01 or 6.02 for five (5) Business Days, or (iii) any of the Loan Parties fails to perform or observe any term, covenant or agreement contained in Sections 2.02(a), 2.06(b), 2.06(c), 3.04(f), 3.04(g), 3.05(e) and 3.06 of the Security Agreement; or
(bb)    Other Defaults.  Any Loan Party fails to perform or observe any other covenant or agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days; or
(cc)    Representations and Warranties.  Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or

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(dd)    Cross-Default.  (i) In respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the Threshold Amount, the Borrower or any Subsidiary (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of such Indebtedness or Guarantee, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which the Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Borrower or such Subsidiary as a result thereof is greater than the Threshold Amount; or
(ee)    Insolvency Proceedings, Etc.  Any Loan Party or any of its Subsidiaries (other than Immaterial Subsidiaries) institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or
(ff)    Inability to Pay Debts; Attachment.  (i) The Borrower or any Subsidiary (other than Immaterial Subsidiaries) becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within 30 days after its issue or levy; or
(gg)    Judgments.  There is entered against the Borrower or any Subsidiary (i) one or more final judgments or orders for the payment of money in an aggregate amount (as to 

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all such judgments or orders) exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 10 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or 
(hh)    ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the Threshold Amount, or (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or
(ii)    Invalidity of Loan Documents.  Any provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party or any other Person contests in any manner the validity or enforceability of any provision of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document;
(jj)    Collateral Documents.  Any Collateral Document after delivery thereof pursuant to Section 4.01 or 6.12 shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected first priority Lien (subject to Liens permitted by Section 7.01) on the Collateral purported to be covered thereby; or
(kk)    Subordination.  (i) The subordination provisions of Subordinated Indebtedness (the “Subordination Provisions”) shall, in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and enforceable against any holder of the applicable Subordinated Indebtedness; or (ii) the Borrower or any other Loan Party shall, directly or indirectly, disavow or contest in any manner (A) the effectiveness, validity or enforceability of any of the Subordination Provisions, (B) that the Subordination Provisions exist for the benefit of the Administrative Agent and the Lenders or (C) that all payments of principal of or premium and interest on the applicable Subordinated Indebtedness, or realized from the liquidation of any property of any Loan Party, shall be subject to any of the Subordination Provisions.
(ll)    IP Event of Default.  There occurs any IP Event of Default; or
(mm)    Change of Control.  There occurs any Change of Control.

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8.02    Remedies Upon Event of Default.  If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions: declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, any Make Whole Premium required under Section 2.03(c) and all other premiums with respect thereto, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the unpaid principal amount of all outstanding Loans and all interest, any Make Whole Premium required under Section 2.03(c) and all other premiums and other amounts as aforesaid shall automatically become due and payable, without further act of the Administrative Agent or any Lender.
8.03    Application of Funds.  After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:
First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;
Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders (including fees, charges and disbursements of counsel to the respective (including fees and time charges for attorneys who may be employees of any Lender and amounts payable under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable to them;
Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and other Obligations, ratably among the Lenders in proportion to the respective amounts described in this clause Third payable to them;
Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the respective amounts described in this clause Fourth held by them; and
Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Law.
ARTICLE IX.    ADMINISTRATIVE AGENT
9.01    Appointment and Authority.  (1) Each of the Lenders hereby irrevocably appoints Macquarie US Trading LLC to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions 

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of this Article are solely for the benefit of the Administrative Agent, the Lenders, and neither the Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.
(w)    The Administrative Agent shall also act as the “collateral agent” under the Loan Documents, and each of the Lenders hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto.  In this connection, the Administrative Agent, as “collateral agent” and any co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant to Section 9.05 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent), shall be entitled to the benefits of all provisions of this Article IX and Article XI (including Section 11.04(c), as though such co-agents, and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto.
9.02    Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.
9.03    Exculpatory Provisions.  The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Administrative Agent:
(p)    shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;
(q)    shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or 

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the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law or regulation, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law; and
(r)    shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.
The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 11.01 and 8.02) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given in writing to the Administrative Agent by the Borrower or a Lender.
The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or the creation, perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the value of the sufficiency of any Collateral or (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.
9.04    Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

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9.05    Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub agents appointed by the Administrative Agent; provided, however, than any such sub-agent receiving payments from the Loan Parties shall be a U.S. Person or shall be permitted to and shall agree to accept responsibility for all U.S. federal income tax and information reporting with respect to payments made by or on behalf of any Loan Party under the Loan Documents.  The Administrative Agent and any such sub agent meeting the requirements of the previous sentence may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub agent and to the Related Parties of the Administrative Agent and any such sub agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.  The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.
9.06    Resignation of Administrative Agent.
(a)    The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, so long as no Event of Default has occurred and is continuing, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States to which payments made by the Loan Parties hereunder shall be made and shall agree to accept responsibility for all U.S. federal income tax and information reporting with respect to payments made by or on behalf of any Loan Party under the Loan Documents; provided that the Administrative Agent may propose that an Affiliate succeed as Administrative Agent, in which case such Affiliate shall automatically be appointed as successor.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.
(b)    With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the under any of the Loan Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (2) except for any indemnity payments or other amounts then owed to the retiring or removed Administrative Agent, all payments, 

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communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or removed) Administrative Agent (other than as provided in Section 3.01(g) and other than any rights to indemnity payments or other amounts owed to the retiring or removed Administrative Agent as of the Resignation Effective Date or the Removal Effective Date, as applicable), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents  (if not already discharged therefrom as provided above in this Section).  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 10.04 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub‐agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent. 
9.07    Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
9.08    No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the Bookrunners listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender or the hereunder.
9.09    Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise
(f)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims 

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of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under 2.06 and 11.04) allowed in such judicial proceeding; and
(g)    to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.06 and 11.04.
Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.
The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Obligations (including accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code of the United States, including under Sections 363, 1123 or 1129 of the Bankruptcy Code of the United States, or any similar Laws in any other jurisdictions to which a Loan Party is subject, (b) at any other sale or foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable Law.  In connection with any such credit bid and purchase, the Obligations owed to the Secured Parties shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that would vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) in the asset or assets so purchased (or in the Equity Interests or debt instruments of the acquisition vehicle or vehicles that are used to consummate such purchase).  In connection with any such bid (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles to make a bid, (ii) to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or Equity Interests thereof shall be governed, directly or indirectly, by the vote of the Required Lenders, irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Required Lenders contained in clauses (a) through (j) of Section 11.01 of this Agreement, (iii) the Administrative Agent shall be authorized to assign 

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the relevant Obligations to any such acquisition vehicle pro rata by the Lenders, as a result of which each of the Lenders shall be deemed to have received a pro rata portion of any Equity Interests and/or debt instruments issued by such an acquisition vehicle on account of the assignment of the Obligations to be credit bid, all without the need for any Secured Party or acquisition vehicle to take any further action, and (iv) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of debt credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Lenders pro rata and the Equity Interests and/or debt instruments issued by any acquisition vehicle on account of the Obligations that had been assigned to the acquisition vehicle shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action. 
9.10    Collateral and Guaranty Matters.  Without limiting the provision of Section 9.10, the of the Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion or as otherwise provided under this Agreement,
(a)    to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all Obligations (other than contingent indemnification obligations), (ii) that is sold or otherwise disposed of or to be sold or otherwise disposed of as part of or in connection with any sale or other disposition permitted hereunder or under any other Loan Document to a Person that is not a Loan Party, (iii) that constitutes “Excluded Property” (as such term is defined in the Security Agreement), or (iv) if approved, authorized or ratified in writing in accordance with Section 11.01; 
(b)    to subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 7.01(i); and
(c)    to release any Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted under the Loan Documents.
Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 9.11. In each case as specified in this Section 9.11, the Administrative Agent will, at the Borrower’s expense, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents or to subordinate its interest in such item, or to release such Guarantor from its obligations under the Guaranty, in each case in accordance with the terms of the Loan Documents and this Section 9.11.
The Administrative Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, 

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the existence, priority or perfection of the Administrative Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.
ARTICLE X.    CONTINUING GUARANTY
10.01    Guaranty.  Each Guarantor hereby absolutely and unconditionally guarantees, as a guaranty of payment and performance and not merely as a guaranty of collection, prompt payment when due, whether at stated maturity, by required prepayment, upon acceleration, demand or otherwise, and at all times thereafter, of any and all of the Obligations, whether for principal, interest, premiums, fees, indemnities, damages, costs, expenses or otherwise, of the Borrower to the Secured Parties, and whether arising hereunder or under any other Loan Document (including all renewals, extensions, amendments, refinancings and other modifications thereof and all costs, attorneys’ fees and expenses incurred by the Secured Parties in connection with the collection or enforcement thereof).  The Administrative Agent’s books and records showing the amount of the Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon each Guarantor, and conclusive for the purpose of establishing the amount of the Obligations.  This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Obligations or any instrument or agreement evidencing any Obligations, or by the existence, validity, enforceability, perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance relating to the Obligations which might otherwise constitute a defense to the obligations of each Guarantor under this Guaranty, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing.
10.02    Rights of Lenders.  Each Guarantor consents and agrees that the Secured Parties may, at any time and from time to time, without notice or demand, and without affecting the enforceability or continuing effectiveness hereof:  (a) amend, extend, renew, compromise, discharge, accelerate or otherwise change the time for payment or the terms of the Obligations or any part thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise dispose of any security for the payment of this Guaranty or any Obligations; (c) apply such security and direct the order or manner of sale thereof as the Administrative Agent and the Lenders in their sole discretion may determine; and (d) release or substitute one or more of any endorsers or other guarantors of any of the Obligations.  Without limiting the generality of the foregoing, each Guarantor consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of Holdings under this Guaranty or which, but for this provision, might operate as a discharge of each Guarantor.
10.03    Certain Waivers.  Each Guarantor waives (a) any defense arising by reason of any disability or other defense of the Borrower or any other guarantor, or the cessation from any cause whatsoever (including any act or omission of any Secured Party) of the liability of the Borrower; (b) any defense based on any claim that each Guarantor’s obligations exceed or are more burdensome than those of the Borrower; (c) the benefit of any statute of limitations affecting each Guarantor’s liability hereunder; (d) any right to proceed against the Borrower, proceed against or exhaust any security for the Obligations, or pursue any other remedy in the power of any Secured Party 

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whatsoever; (e) any benefit of and any right to participate in any security now or hereafter held by any Secured Party; and (f) to the fullest extent permitted by law, any and all other defenses or benefits that may be derived from or afforded by applicable law limiting the liability of or exonerating guarantors or sureties.  Each Guarantor expressly waives all setoffs and counterclaims and all presentments, demands for payment or performance, notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Obligations, and all notices of acceptance of this Guaranty or of the existence, creation or incurrence of new or additional Obligations.
10.04    Obligations Independent.  The obligations of each Guarantor hereunder are those of primary obligor, and not merely as surety, and are independent of the Obligations and the obligations of any other guarantor, and a separate action may be brought against each Guarantor to enforce this Guaranty whether or not the Borrower or any other person or entity is joined as a party. 
10.05    Subrogation.  No Guarantor shall exercise any right of subrogation, contribution, indemnity, reimbursement or similar rights with respect to any payments it makes under this Guaranty until all of the Obligations and any amounts payable under this Guaranty have been indefeasibly paid and performed in full.  If any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of the Secured Parties and shall forthwith be paid to the Secured Parties to reduce the amount of the Obligations, whether matured or unmatured.
10.06    Termination; Reinstatement.  This Guaranty is a continuing and irrevocable guaranty of all Obligations now or hereafter existing and shall remain in full force and effect until all Obligations and any other amounts payable under this Guaranty are indefeasibly paid in full in cash.  Notwithstanding the foregoing, this Guaranty shall continue in full force and effect or be revived, as the case may be, if any payment by or on behalf of the Borrower or any Guarantor is made, or any of the Secured Parties exercises its right of setoff, in respect of the Obligations and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by any of the Secured Parties in their discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Laws or otherwise, all as if such payment had not been made or such setoff had not occurred and whether or not the Secured Parties are in possession of or have released this Guaranty and regardless of any prior revocation, rescission, termination or reduction.  The obligations of each Guarantor under this paragraph shall survive termination of this Guaranty.
10.07    Subordination.  Each Guarantor hereby subordinates the payment of all obligations and indebtedness of the Borrower owing to such Guarantor, whether now existing or hereafter arising, including but not limited to any obligation of the Borrower to such Guarantor as subrogee of the Secured Parties or resulting from such Guarantor’s performance under this Guaranty, to the indefeasible payment in full in cash of all Obligations.  If the Secured Parties so request, any such obligation or indebtedness of the Borrower to any Guarantor shall be enforced and performance received by such Guarantor as trustee for the Secured Parties and the proceeds thereof shall be paid 

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over to the Secured Parties on account of the Obligations, but without reducing or affecting in any manner the liability of any Guarantor under this Guaranty.
10.08    Stay of Acceleration.  If acceleration of the time for payment of any of the Obligations is stayed, in connection with any case commenced by or against any Guarantor or the Borrower under any Debtor Relief Laws, or otherwise, all such amounts shall nonetheless be payable by Holdings immediately upon demand by the Secured Parties.
10.09    Condition of Borrower.  Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from the Borrower and any other guarantor such information concerning the financial condition, business and operations of the Borrower and any such other guarantor as each Guarantor requires, and that none of the Secured Parties has any duty, and no Guarantor is relying on the Secured Parties at any time, to disclose to any Guarantor any information relating to the business, operations or financial condition of the Borrower or any other guarantor (Each Guarantor waiving any duty on the part of the Secured Parties to disclose such information and any defense relating to the failure to provide the same).
ARTICLE XI.    MISCELLANEOUS
11.01    Amendments, Etc.  No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall:
(s)    impose any greater restriction on the ability of any Lender to assign any of its rights or obligations hereunder without the written consent of Lenders having more than 50% of the Total Outstandings then in effect.
(t)    waive any condition set forth in Section 4.01(a) without the written consent of each Lender;
(u)    extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written consent of such Lender;
(v)    postpone any date fixed by this Agreement or any other Loan Document for any payment or mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; 
(w)    reduce the principal of, or the rate of interest specified herein on, any Loan, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, however, that only the consent of the 

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Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate;
(x)    change Section 2.09 or Section 8.03 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender; 
(y)    change any provision of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; 
(z)    release all or substantially all of the Collateral in any transaction or series of related transactions without the consent of all the Lenders; or
(aa)    release any Guarantor from a Guaranty without the written consent of each Lender, except to the extent the release of any Guarantor is permitted pursuant to Section 9.10 (in which case such release may be made by the Administrative Agent acting alone);
and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (ii) any fee letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.
11.02    Notices; Effectiveness; Electronic Communication.
(g)    Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:
(vii)    if to the Borrower or any other Loan Party or the Administrative Agent, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 11.02; and 
(viii)    if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public information relating to the Borrower).
Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other 

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communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices and other communications delivered through electronic communications, to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).
(h)    Electronic Communications.  Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e‐mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may each, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.
Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii), if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
(i)    The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”.  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s, any Loan Party’s or the Administrative Agent’s transmission of Borrower Materials or notices through the Platform, any other electronic messaging service, or through the Internet.

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(j)    Change of Address, Etc.  Each of the Borrower and the Administrative Agent may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the Borrower and the Administrative Agent.  In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States Federal or state securities laws.
(k)    Reliance by Administrative Agent and Lenders.  The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the Administrative Agent, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower.  All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.
11.03    No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.
Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its 

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own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) any Lender from exercising setoff rights in accordance with Section 10.08 (subject to the terms of Section 2.09), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.09, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.
11.04    Expenses; Indemnity; Damage Waiver.
(c)    Costs and Expenses.  The Borrower shall pay (i) all reasonable out‐of‐pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) (ii) and all reasonable out‐of‐pocket expenses incurred by the Administrative Agent or any Lender (including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent and one counsel, for all the other Lenders and, if reasonably necessary or advisable, the reasonable fees, charges and disbursements of one local counsel per jurisdiction and one additional counsel for each group of affected persons, taken as a whole, to the extent of any actual or perceived conflict of interest), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made hereunder, including all such out‐of‐pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.
(d)    Indemnification by the Borrower.  The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender and each Related Party of any of the foregoing Persons (each such Person being called a “Borrower Indemnitee”) against, and hold each Borrower Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Borrower Indemnitee), and shall indemnify and hold harmless each Borrower Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any  Borrower Indemnitee, incurred by any Borrower Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Loan Party) other than such Borrower Indemnitee and its Related Parties arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder, 

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the consummation of the transactions contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents (including in respect of any matters addressed in Section 3.01), (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any actual, threatened, or alleged presence or Release of Hazardous Materials at, on, under, or from any property owned, leased, operated or otherwise occupied by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Borrower Indemnitee or its Related Parties or (y) result from a claim brought by the Borrower or any other Loan Party against a Borrower Indemnitee for material breach of such Borrower Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.  Without limiting the provisions of Section 3.01(c), this Section 11.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.
(e)    Indemnification by Lenders.  The Lenders agree to indemnify the Administrative Agent and its officers, directors, employees, affiliates, agents, advisors and controlling persons (each, an “Agent Indemnitee”) (to the extent required to be reimbursed but not reimbursed by the Borrower and without limiting the obligation the Borrower to do so), ratably according to their respective Applicable Percentage in effect on the date on which indemnification is sought under this paragraph, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent Indemnitee in any way relating to or arising out of, the Loans, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent Indemnitee under or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from any Agent Indemnitee’s gross negligence or willful misconduct. The agreements in this paragraph shall survive the termination of this Agreement and the payment of the Loan and all other amounts payable hereunder.  The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 2.08(d).

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(f)    Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, the Borrower and each Indemnitee shall not assert, and hereby waives, and acknowledges that no other Person shall have, any claim against any Loan Party or related party of any Loan Party or any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction.
(g)    Payments.  All amounts due under this Section shall be payable not later than ten Business Days after demand therefor.
(h)    Survival.  The agreements in this Section and the indemnity provisions of Section 10.02(e) shall survive the resignation of the Administrative Agent, the replacement of any Lender and the repayment, satisfaction or discharge of all the other Obligations.
11.05    Payments Set Aside.  To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.
11.06    Successors and Assigns.
(a)    Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or 

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otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)    Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Loans at the time owing to it); provided that any such assignment shall be subject to the following conditions:
(vii)    Minimum Amounts.
(A)    in the case of an assignment of the entire remaining amount of the assigning Lender’s Loans at the time owing to it  or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and
(B)    in any case not described in subsection (b)(i)(A) of this Section, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $1,000.000 unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).
(viii)    Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans assigned; 
(ix)    Required Consents.  No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:
(A)    the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written 

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notice to the Administrative Agent within five (5) Business Days after having received notice thereof; and provided, further, that the Borrower’s consent shall not be required during the primary syndication of the credit facility provided herein;
(B)    the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required  if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender and
(x)    Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.
(xi)    No Assignment to Certain Persons.  No such assignment shall be made (A) to the Borrower or any of the Borrower’s Subsidiaries, or (B) to a natural Person.  
Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05, and 11.04 with respect to facts and circumstances occurring prior to the effective date of such assignment.  Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.
(a)    Register.  The Administrative Agent, acting solely for this purpose as an agent of the Borrower (and such agency being solely for tax purposes), shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it (or the equivalent thereof in electronic form) and a register for the recordation of the names and addresses of the Lenders, and principal amounts (and related interest amounts) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  Notwithstanding anything in the contrary herein, the entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender and the owner of the amounts owing to it under the Loan Documents as reflected in the Register for all purposes of the Loan Documents.  The Register shall be 

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available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.
(b)    Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural Person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.04(c) without regard to the existence of any participation.
Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.01 that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section (it being understood that the documentation required under Section 3.01(e) shall be delivered to the Lender who sells the participation) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Sections 3.06 and 11.13 as if it were an assignee under paragraph (b) of this Section and (B) shall not be entitled to receive any greater payment under Sections 3.01 or 3.04, with respect to any participation, than the Lender from whom it acquired the applicable participation would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 3.06 with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.08 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.09 as though it were a Lender.  Each Lender that sells a participation (including under Section 2.10) shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and related interest amounts) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations or as otherwise required 

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thereunder.  Notwithstanding anything to the contrary herein, the entries in the Participant Register shall be conclusive absent manifest error, and each Person whose name is recorded in the Participant Register shall be treated as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(c)    Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
11.07    Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (g) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the credit facilities provided hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided hereunder, (h) with the consent of the Borrower or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent, any Lender, or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower.  For purposes of this Section, “Information” means all information received from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender on a nonconfidential basis prior to disclosure by the Borrower or any Subsidiary, provided that, in the case of information received from the Borrower or any Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to 

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do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.
Each of the Administrative Agent and the Lenders acknowledges that (a) the Information may include material non-public information concerning the Borrower or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public information and (c) it will handle such material non-public information in accordance with applicable Law, including United States Federal and state securities Laws.
11.08    Right of Setoff.    If an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or its respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness.  The rights of each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective Affiliates may have.  Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application.  
11.09    Interest Rate Limitation.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.
11.10    Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become 

112

 

effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement.
11.11    Survival of Representations and Warranties.  All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied.
11.12    Severability.  If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  
11.13    Replacement of Lenders.    If the Borrower is entitled to replace a Lender pursuant to the provisions of Section 3.06, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.06), all of its interests, rights (other than its existing rights to payments pursuant to Sections 3.01 and 3.04) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:
(a)    the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 11.06(b);
(b)    such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);
(c)    in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; 

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(d)    the Borrower shall pay such Lender any Make Whole that would be applicable to such assignment as if the assigned Loan was repaid by the Borrower; and
(e)    such assignment does not conflict with applicable Laws.
A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.
11.14    Governing Law; Jurisdiction; Etc.
(a)    GOVERNING LAW.  This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of NEW YORK.
(b)    SUBMISSION TO JURISDICTION.  ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS  AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  
(c)    WAIVER OF VENUE.  EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT 

114

 

FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
(d)    SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.
11.15    Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY), EXCEPT WITH RESPECT TO ANY PATENT PROCEEDING.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
11.16    No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees that:  (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lenders are arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative Agent and the Lenders, on the other hand, (B) the Borrower  has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and each Lender is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) neither the Administrative Agent nor any Lender has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and neither the Administrative Agent, nor any Lender has any obligation to disclose any of such interests to the Borrower or its Affiliates.  To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have against the Administrative Agent or any Lender with respect 

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to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.
11.17    Electronic Execution of Assignments and Certain Other Documents.  The words “execute”, “execution”, “signed”, “signature”, and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
11.18    USA PATRIOT Act.  Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Act.  The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and anti‐money laundering rules and regulations, including the Act.
11.19    Licenses.
Each party hereto agrees that, as provided for in the Security Agreement, upon any exercise of remedies by the Administrative Agent or the Lenders, any then-existing license agreement or other arrangements relating primarily to IP Rights (other than Cystic Fibrosis Drug Franchise Assets) shall survive in full force and effect and be accepted by the Administrative Agent, and that neither the Administrative Agent nor any Lender (or anyone acting on behalf of any of the foregoing) shall (i) terminate such license or arrangements, or petition a court to do so, (ii) take any steps to oppose such licensee’s exercise of any rights under Section 365(n) of the Bankruptcy Code, or (iii) interfere with the rights of such licensee to such IP Rights as provided in the applicable license agreement or arrangements, or petition a court to do so.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.
	
			
	 
	 
	VERTEX PHARMACEUTICALS INCORPORATED,
as Borrower

	 
	 
	 

	 
	By:
	/s/ Jeffrey Leiden

	 
	Name:
	Jeffrey Leiden

	 
	Title:
	Chief Executive Officer

	 
	 
	 

	 
	By:
	/s/ Ian Smith

	 
	Name:
	Ian Smith

	 
	Title:
	Chief Financial Officer

	
			
	 
	 
	MACQUARIE US TRADING LLC, as Administrative Agent

	 
	 
	 

	 
	By:
	/s/ Robert M. Perdock

	 
	Name:
	Robert M. Perdock

	 
	Title:
	Managing Director

	 
	 
	 

	 
	By:
	/s/ Anita Chiu

	 
	Name:
	Anita Chiu

	 
	Title:
	Associate Director

	
			
	 
	 
	MACQUARIE CAF LLC, as Lender

	 
	 
	 

	 
	By:
	/s/ David Prince

	 
	Name:
	David Prince

	 
	Title:
	Authorized Signatory

	 
	 
	 

	 
	By:
	/s/ Althea Hennedige

	 
	Name:
	Althea Hennedige

	 
	Title:
	Authorized Signatory

 

 

	
			
	 
	 
	VERTEX PHARMACEUTICALS (SAN DIEGO) LLC,
as a Guarantor

	 
	 
	 

	 
	By:
	/s/ Ian Smith

	 
	Name:
	Ian Smith

	 
	Title:
	Treasurer

	
			
	 
	 
	VERTEX PHARMACEUTICALS (DELAWARE) LLC,
as a Guarantor

	 
	 
	 

	 
	By:
	/s/ Ian Smith

	 
	Name:
	Ian Smith

	 
	Title:
	Treasurer

	
			
	 
	 
	VERTEX HOLDINGS, INC.,
as a Guarantor

	 
	 
	 

	 
	By:
	/s/ Ian Smith

	 
	Name:
	Ian Smith

	 
	Title:
	Treasurer

	
			
	 
	 
	VERTEX PHARMACEUTICALS (DISTRIBUTION) INCORPORATED,
as a Guarantor

	 
	 
	 

	 
	By:
	/s/ Ian Smith

	 
	Name:
	Ian Smith

	 
	Title:
	TreasurerExhibit 10.1

 

 

 

FOURTH AMENDED AND RESTATED

 

AGREEMENT OF LIMITED PARTNERSHIP

 

OF

 

GPT PROPERTY TRUST LP

 

 

 

Dated as of July 31, 2014

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	 	 	Page
	 	 	 	 	 
	ARTICLE I	DEFINED TERMS	1
	 	 	 
	ARTICLE II	ORGANIZATIONAL MATTERS	12
	 	 	 	 	 
	 	Section 2.01.	 	Organization	12
	 	Section 2.02.	 	Name	12
	 	Section 2.03.	 	Registered Office and Agent; Principal Office	13
	 	Section 2.04.	 	Term	13
	 	 	 	 	 
	ARTICLE III	PURPOSE	13
	 	 	 	 	 
	 	Section 3.01.	 	Purpose and Business	13
	 	Section 3.02.	 	Powers	13
	 	Section 3.03.	 	Partnership Only for Purposes Specified	14
	 	 	 	 	 
	ARTICLE IV	CAPITAL CONTRIBUTIONS AND ISSUANCES OF PARTNERSHIP INTERESTS	14
	 	 	 	 	 
	 	Section 4.01.	 	Capital Contributions of the Partners	14
	 	Section 4.02.	 	Issuances of Partnership Interests	15
	 	Section 4.03.	 	No Preemptive Rights	16
	 	Section 4.04.	 	Other Contribution Provisions	16
	 	Section 4.05.	 	No Interest on Capital	16
	 	 	 	 	 
	ARTICLE V	DISTRIBUTIONS	17
	 	 	 	 	 
	 	Section 5.01.	 	Requirement and Characterization of Distributions	17
	 	Section 5.02.	 	Amounts Withheld	17
	 	Section 5.03.	 	Distributions Upon Liquidation	17
	 	Section 5.04.	 	Revisions to Reflect Issuance of Additional Partnership Interests	17
	 	 	 	 	 
	ARTICLE VI	ALLOCATIONS	18
	 	 	 	 	 
	 	Section 6.01.	 	Allocations For Capital Account Purposes	18
	 	Section 6.02.	 	Revisions to Allocations to Reflect Issuance of Additional Partnership Interests	20
	 	 	 	 	 
	ARTICLE VII	MANAGEMENT AND OPERATIONS OF BUSINESS	20
	 	 	 	 	 
	 	Section 7.01.	 	Management	20
	 	Section 7.02.	 	Certificate of Limited Partnership	24
	 	Section 7.03.	 	Title to Partnership Assets	24
	 	Section 7.04.	 	Reimbursement of the General Partner	24
	 	Section 7.05.	 	Outside Activities of the General Partner	25
	 	Section 7.06.	 	Transactions with Affiliates	27
	 	Section 7.07.	 	Indemnification	28

 

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Table
of Contents

(continued)

 

	 	 	 	 	Page
	 	 	 	 	 
	 	Section 7.08.	 	Liability of the General Partner	29
	 	Section 7.09.	 	Other Matters Concerning the General Partner	30
	 	Section 7.10.	 	Reliance by Third Parties	31
	 	Section 7.11.	 	Restrictions on General Partner’s Authority	32
	 	Section 7.12.	 	Loans by Third Parties	32
	 	 	 	 	 
	ARTICLE VIII	RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS	32
	 	 	 	 	 
	 	Section 8.01.	 	Limitation of Liability	32
	 	Section 8.02.	 	Management of Business	32
	 	Section 8.03.	 	Outside Activities of Limited Partners	33
	 	Section 8.04.	 	Return of Capital	33
	 	Section 8.05.	 	Rights of Limited Partners Relating to the Partnership	33
	 	Section 8.06.	 	Class A Redemption Right	34
	 	Section 8.07.	 	Redemption of 8.125% Series A Cumulative Redeemable Preferred Units	36
	 	 	 	 	 
	ARTICLE IX	BOOKS, RECORDS, ACCOUNTING AND REPORTS	37
	 	 	 	 	 
	 	Section 9.01.	 	Records and Accounting	37
	 	Section 9.02.	 	Fiscal Year	37
	 	Section 9.03.	 	Reports	37
	 	 	 	 	 
	ARTICLE X	TAX MATTERS	37
	 	 	 	 	 
	 	Section 10.01.	 	Preparation of Tax Returns	37
	 	Section 10.02.	 	Tax Elections	38
	 	Section 10.03.	 	Tax Matters Partner	38
	 	Section 10.04.	 	Organizational Expenses	39
	 	Section 10.05.	 	Withholding	40
	 	 	 	 	 
	ARTICLE XI	TRANSFERS AND WITHDRAWALS	40
	 	 	 	 	 
	 	Section 11.01.	 	Transfer	40
	 	Section 11.02.	 	Transfers of Partnership Interests of General Partner	41
	 	Section 11.03.	 	Limited Partners’ Rights to Transfer	41
	 	Section 11.04.	 	Substituted Limited Partners	43
	 	Section 11.05.	 	Assignees	43
	 	Section 11.06.	 	General Provisions	44
	 	 	 	 	 
	ARTICLE XII	ADMISSION OF PARTNERS	46
	 	 	 	 	 
	 	Section 12.01.	 	Admission of Successor General Partner	46
	 	Section 12.02.	 	Admission of Additional Limited Partners	46
	 	Section 12.03.	 	Amendment of Agreement and Certificate of Limited Partnership	47

 

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Table
of Contents

(continued)

 

	 	 	 	 	Page
	 	 	 	 	 
	ARTICLE XIII	DISSOLUTION AND LIQUIDATION	47
	 	 	 	 	 
	 	Section 13.01.	 	Dissolution	47
	 	Section 13.02.	 	Winding Up	48
	 	Section 13.03.	 	Compliance with Timing Requirements of Regulations	49
	 	Section 13.04.	 	Deemed Distribution and Recontribution	49
	 	Section 13.05.	 	Rights of Limited Partners	49
	 	Section 13.06.	 	Notice of Dissolution	50
	 	Section 13.07.	 	Cancellation of Certificate of Limited Partnership	50
	 	Section 13.08.	 	Reasonable Time for Winding Up	50
	 	Section 13.09.	 	Waiver of Partition	50
	 	Section 13.10.	 	Liability of Liquidator	50
	 	 	 	 	 
	ARTICLE XIV	AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS	50
	 	 	 	 	 
	 	Section 14.01.	 	Amendments	50
	 	Section 14.02.	 	Meetings of the Partners	52
	 	 	 	 	 
	ARTICLE XV	GENERAL PROVISIONS	53
	 	 	 	 	 
	 	Section 15.01.	 	Addresses and Notice	53
	 	Section 15.02.	 	Titles and Captions	53
	 	Section 15.03.	 	Pronouns and Plurals	53
	 	Section 15.04.	 	Further Action	53
	 	Section 15.05.	 	Binding Effect	53
	 	Section 15.06.	 	Creditors	54
	 	Section 15.07.	 	Waiver	54
	 	Section 15.08.	 	Counterparts	54
	 	Section 15.09.	 	Applicable Law	54
	 	Section 15.10.	 	Invalidity of Provisions	54
	 	Section 15.11.	 	Power of Attorney	54
	 	Section 15.12.	 	Entire Agreement	55
	 	Section 15.13.	 	No Rights as Stockholders	56
	 	Section 15.14.	 	Limitation to Preserve REIT Status	56
	 	 	 	 	 
	Exhibit A – Partners and Partnership Interests	 
	Exhibit B – Capital Account Maintenance	 
	Exhibit C – Special Allocation Rules	 
	Exhibit D – Notice of Redemption	 
	Exhibit E – Designation of the Rights, Powers, Privileges, Restrictions, Qualifications and Limitations of the LTIP Units	 
	Exhibit F – Designation of the Preferences, Conversion and Other Rights, Voting Powers, Restrictions, Limitations as to Distributions, Qualifications and Terms and Conditions of Redemption of the 8.125% Series A Cumulative Redeemable Preferred Units	 

 

    	-iii-

    	 

    

 

FOURTH AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

GPT PROPERTY TRUST LP

 

THIS FOURTH AMENDED
AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP, dated as of July 31, 2014 is made by Gramercy Property Trust Inc., a Maryland corporation,
as the General Partner of and a Limited Partner in the Partnership and each of the other persons listed on the signature pages
hereto, for the purpose of amending and restating the Third Amended and Restated Agreement of Limited Partnership of the Partnership
dated as of April 19, 2006 by and among the General Partner, SL Green Operating Partnership, LP., GKK Manager LLC, and certain
other Persons (as defined below) (as so amended from time to time prior to the date hereof, the “Third Amended and Restated
Partnership Agreement”).

 

WHEREAS, the Partnership
desires to modify the Third Amended and Restated Partnership Agreement to incorporate the provisions of the First Amendment to
the Third Amended and Restated Agreement of Limited Partnership of GKK Capital LP, dated as of April 18, 2007, the Second Amendment
to the Third Amended and Restated Agreement of Limited Partnership of GKK Capital LP, dated as of October 27, 2008, and the Third
Amendment to the Third Amended and Restated Agreement of Limited Partnership of GKK Capital LP, dated as of August 7, 2013.

 

WHEREAS, the Partnership
desires to remove the Class B Units and all references thereto, and to rename the “Class C Preferred Units” as the
“8.125% Series A Cumulative Redeemable Preferred Units”.

 

WHEREAS, pursuant to
Section 14.01.B the General Partner is hereby amending and restating the Third Amended and Restated Partnership Agreement to reflect
the desired changes.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby amend and restate the Third Amended and Restated Partnership Agreement
as follows:

 

ARTICLE
I

 

DEFINED TERMS

 

The following definitions
shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement

 

“8.125% Series
A Cumulative Redeemable Preferred Units” means the Partnership Units designated as such having the rights, powers, privileges,
restrictions, qualifications and limitations set forth in Exhibit F hereto.

 

    	 

    	 

    

 

“Act” means
the Delaware Revised Uniform Limited Partnership Act, 6 Del. C. § 17-101, et seq., as it may be amended from time to time,
and any successor to such statute.

 

“Additional Limited
Partner” means a Person admitted to the Partnership as a Limited Partner pursuant to Section 12.02 hereof and who is shown
as such on the books and records of the Partnership.

 

“Adjusted Capital
Account” means the Capital Account maintained for each Partner as of the end of each Partnership Year (i) increased by any
amounts which such Partner is obligated to restore pursuant to any provision of this Agreement or is deemed to be obligated to
restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) and (ii) decreased by the
items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6). The foregoing
definition of Adjusted Capital Account is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted consistently therewith.

 

“Adjusted Capital
Account Deficit” means, with respect to any Partner, the deficit balance, if any, in such Partner’s Adjusted Capital
Account as of the end of the relevant Partnership Year.

 

“Adjusted Property”
means any property the Carrying Value of which has been adjusted pursuant to Exhibit B hereto.

 

“Adjustment Date”
has the meaning set forth in Section 4.02.B hereof.

 

“Affiliate”
means, with respect to any Person, (i) any Person directly or indirectly controlling, controlled by or under common control with
such Person, (ii) any Person owning or controlling ten percent (10%) or more of the outstanding voting interests of such Person,
(iii) any Person of which such Person owns or controls ten percent (10%) or more of the voting interests or (iv) any officer, director,
general partner or trustee of such Person or any Person referred to in clauses (i), (ii), and (iii) above. For purposes of this
definition, “control,” when used with respect to any Person, means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

 

“Agreed Value”
means (i) in the case of any Contributed Property, the 704(c) Value of such property as of the time of its contribution to the
Partnership, reduced by any liabilities either assumed by the Partnership upon such contribution or to which such property is subject
when contributed; and (ii) in the case of any property distributed to a Partner by the Partnership, the Partnership’s Carrying
Value of such property at the time such property is distributed, reduced by any indebtedness either assumed by such Partner upon
such distribution or to which such property is subject at the time of distribution as determined under Section 752 of the Code
and the Regulations thereunder.

 

“Agreement”
means this Fourth Amended and Restated Agreement of Limited Partnership, as it may be amended, supplemented or restated from time
to time.

 

    	2

    	 

    

 

“Articles of
Incorporation” means the Articles of Incorporation or other organizational document governing the General Partner, as amended
or restated from time to time.

 

“Assignee”
means a Person to whom one or more Partnership Units have been transferred in a manner permitted under this Agreement, but who
has not become a Substituted Limited Partner, and who has the rights set forth in Section 11.05 hereof.

 

“Book-Tax Disparities”
means, with respect to any item of Contributed Property or Adjusted Property, as of the date of any determination, the difference
between the Carrying Value of such Contributed Property or Adjusted Property and the adjusted basis thereof for federal income
tax purposes as of such date. A Partner’s share of the Partnership’s Book-Tax Disparities in all of its Contributed
Property and Adjusted Property will be reflected by the difference between such Partner’s Capital Account balance as maintained
pursuant to Exhibit B hereto and the hypothetical balance of such Partner’s Capital Account computed as if it had
been maintained, with respect to each such Contributed Property or Adjusted Property, strictly in accordance with federal income
tax accounting principles.

 

“Business Day”
means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required
by law to close.

 

“Capital Account”
means the Capital Account maintained for a Partner pursuant to Exhibit B hereto.

 

“Capital Contribution”
means, with respect to any Partner, any cash, cash equivalents or the Agreed Value of Contributed Property which such Partner contributes
or is deemed to contribute to the Partnership pursuant to Section 4.01 or 4.02 hereof.

 

“Carrying Value”
means (i) with respect to a Contributed Property or Adjusted Property, the 704(c) Value of such property reduced (but not below
zero) by all Depreciation with respect to such Contributed Property or Adjusted Property, as the case may be, charged to the Partners’
Capital Accounts and (ii) with respect to any other Partnership property, the adjusted basis of such property for federal income
tax purposes, all as of the time of determination. The Carrying Value of any property shall be adjusted from time to time in accordance
with Exhibit B hereto, and to reflect changes, additions or other adjustments to the Carrying Value for dispositions and
acquisitions of Partnership properties, as deemed appropriate by the General Partner.

 

“Cash Amount”
means an amount of cash equal to the Value on the Valuation Date of the Shares Amount.

 

“Certificate”
means the Certificate of Limited Partnership relating to the Partnership filed in the office of the Delaware Secretary of State
on April 21, 2004, as amended from time to time in accordance with the terms hereof and the Act.

 

“Class A Unit”
means Class A Units of the Partnership.

 

“Class A Unit
Economic Balance” has the meaning set forth in Section 6.01.D hereof.

 

    	3

    	 

    

 

“Code”
means the Internal Revenue Code of 1986, as amended and in effect from time to time, as interpreted by the applicable Regulations
thereunder. Any reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding
provision of future law.

 

“Consent”
means the consent or approval of a proposed action by a Partner given in accordance with Section 14.02 hereof.

 

“Contributed
Property” means each property or other asset contributed to the Partnership, in such form as may be permitted by the Act,
but excluding cash contributed or deemed contributed to the Partnership. Once the Carrying Value of a Contributed Property is adjusted
pursuant to Exhibit B hereto, such property shall no longer constitute a Contributed Property for purposes of Exhibit
B hereto, but shall be deemed an Adjusted Property for such purposes.

 

“Conversion Factor”
means 1.0; provided that in the event that the General Partner Entity (i) declares or pays a dividend on its outstanding
Shares in Shares or makes a distribution to all holders of its outstanding Shares in Shares, (ii) subdivides its outstanding Shares
or (iii) combines its outstanding Shares into a smaller number of Shares, the Conversion Factor shall be adjusted by multiplying
the Conversion Factor by a fraction, the numerator of which shall be the number of Shares issued and outstanding on the record
date for such dividend, distribution, subdivision or combination (assuming for such purposes that such dividend, distribution,
subdivision or combination has occurred as of such time) and the denominator of which shall be the actual number of Shares (determined
without the above assumption) issued and outstanding on the record date for such dividend, distribution, subdivision or combination;
and provided, further that in the event that an entity shall cease to be the General Partner Entity (the “Predecessor
Entity”) and another entity shall become the General Partner Entity (the “Successor Entity”), the
Conversion Factor shall be adjusted by multiplying the Conversion Factor by a fraction, the numerator of which is the Value of
one share of the Predecessor Entity, determined as of the time immediately prior to when the Successor Entity becomes the General
Partner Entity, and the denominator of which is the Value of one Share of the Successor Entity determined as of that same date.
For purposes of the second proviso in the preceding sentence, in the event that any stockholders of the Predecessor Entity will
receive consideration in connection with the transaction in which the Successor Entity becomes the General Partner Entity, the
numerator in the fraction described above for determining the adjustment to the Conversion Factor (that is, the Value of one Share
of the Predecessor Entity) shall be the sum of the greatest amount of cash and the fair market value of any securities and other
consideration that the holder of one Share in the Predecessor Entity could have received in such transaction (determined without
regard to any provisions governing fractional shares). Any adjustment to the Conversion Factor shall become effective immediately
after the effective date of such event retroactive to the record date, if any, for the event giving rise thereto; it being intended
that (x) adjustments to the Conversion Factor are to be made in order to avoid unintended dilution or anti-dilution as a result
of transactions in which Shares are issued, redeemed or exchanged without a corresponding issuance, redemption or exchange of Partnership
Units and (y) if a Specified Redemption Date shall fall between the record date and the effective date of any event of the type
described above, that the Conversion Factor applicable to such redemption shall be adjusted to take into account such event.

 

    	4

    	 

    

 

“Debt”
means, as to any Person, as of any date of determination, (i) all indebtedness of such Person for borrowed money or for the deferred
purchase price of property or services, (ii) all amounts owed by such Person to banks or other Persons in respect of reimbursement
obligations under letters of credit, surety bonds and other similar instruments guaranteeing payment or other performance of obligations
by such Person, (iii) all indebtedness for borrowed money or for the deferred purchase price of property or services secured by
any lien on any property owned by such Person, to the extent attributable to such Person’s interest in such property, even
though such Person has not assumed or become liable for the payment thereof, and (iv) obligations of such Person incurred in connection
with entering into a lease which, in accordance with generally accepted accounting principles, should be capitalized.

 

“Depreciation”
means, for each fiscal year, an amount equal to the federal income tax depreciation, amortization, or other cost recovery deduction
allowable with respect to an asset for such year, except that if the Carrying Value of an asset differs from its adjusted basis
for federal income tax purposes at the beginning of such year or other period, Depreciation shall be an amount which bears the
same ratio to such beginning Carrying Value as the federal income tax depreciation, amortization, or other cost recovery deduction
for such year bears to such beginning adjusted tax basis; provided, however, that if the federal income tax depreciation,
amortization, or other cost recovery deduction for such year is zero, Depreciation shall be determined with reference to such beginning
Carrying Value using any reasonable method selected by the General Partner.

 

“Economic Capital
Account Balance” has the meaning set forth in Section 6.01.D hereof.

 

“Effective Date”
means the date of the closing of the General Partner’s initial public offering.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Funding Debt”
means the incurrence of any Debt by or on behalf of the General Partner for the purpose of providing funds to the Partnership.

 

“Funds From Operations”
means net income available to holders of Partnership Units (other than preferred Partnership Units, if any, issued from time to
time) computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus depreciation and amortization
on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures.

 

“General Partner”
means Gramercy Property Trust Inc., a Maryland corporation, or its successors as general partner of the Partnership.

 

“General Partner
Entity” means the General Partner, provided, however, that if (i) the shares of common stock (or other comparable equity
interests) of the General Partner are at any time not Publicly Traded and (ii) the shares of common stock (or other comparable
equity interests) of an entity that owns, directly or indirectly, fifty percent (50%) or more of the shares of common stock (or
other comparable equity interests) of the General Partner are Publicly Traded, the term “General Partner Entity”
shall refer to such entity whose shares of common stock (or other comparable equity securities) are Publicly Traded. If both requirements
set forth in clauses (i) and (ii) above are not satisfied, then the term “General Partner Entity” shall mean the General
Partner.

 

    	5

    	 

    

 

“General Partner
Payment” has the meaning set forth in Section 15.14 hereof.

 

“General Partnership
Interest” means a Partnership Interest held by the General Partner that is a general partnership interest. A General Partnership
Interest may be expressed as a number of Partnership Units.

 

“IRS” means
the Internal Revenue Service, which administers the internal revenue laws of the United States.

 

“Immediate Family”
means, with respect to any natural Person, such natural Person’s spouse, parents, descendants, nephews, nieces, brothers,
and sisters.

 

“Incapacity”
or “Incapacitated” means, (i) as to any individual Partner, death, total physical disability or entry by a court of
competent jurisdiction adjudicating such Partner incompetent to manage his or her Person or estate, (ii) as to any corporation
which is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation or the revocation of its
charter, (iii) as to any partnership which is a Partner, the dissolution and commencement of winding up of the partnership, (iv)
as to any estate which is a Partner, the distribution by the fiduciary of the estate’s entire interest in the Partnership,
(v) as to any trustee of a trust which is a Partner, the termination of the trust (but not the substitution of a new trustee) or
(vi) as to any Partner, the bankruptcy of such Partner. For purposes of this definition, bankruptcy of a Partner shall be deemed
to have occurred when (a) the Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under
any bankruptcy, insolvency or other similar law now or hereafter in effect, (b) the Partner is adjudged as bankrupt or insolvent,
or a final and nonappealable order for relief under any bankruptcy, insolvency or similar law now or hereafter in effect has been
entered against the Partner, (c) the Partner executes and delivers a general assignment for the benefit of the Partner’s
creditors, (d) the Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition
filed against the Partner in any proceeding of the nature described in clause (b) above, (e) the Partner seeks, consents to or
acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or for all or any substantial part of the Partner’s
properties, (f) any proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar
law now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the commencement thereof, (g)
the appointment without the Partner’s consent or acquiescence of a trustee, receiver or liquidator has not been vacated or
stayed within ninety (90) days of such appointment or (h) an appointment referred to in clause (g) is not vacated within ninety
(90) days after the expiration of any such stay.

 

“Indemnitee”
means (i) any Person made a party to a proceeding or threatened with being made a party to a proceeding by reason of its status
as (A) the General Partner, (B) a Limited Partner or (C) a director or officer of the Partnership or the General Partner and (ii)
such other Persons (including Affiliates of the General Partner, a Limited Partner or the Partnership) as the General Partner may
designate from time to time (whether before or after the event giving rise to potential liability), in its sole and absolute discretion.

 

    	6

    	 

    

 

“Limited Partner”
means any Person named as a Limited Partner in Exhibit A attached hereto, as such Exhibit may be amended and restated from
time to time, or any Substituted Limited Partner or Additional Limited Partner, in such Person’s capacity as a Limited Partner
in the Partnership.

 

“Limited Partner
Interest” means a Partner Interest of a Limited Partner in the Partner representing a fractional part of the Partner Interests
of all Limited Partners and includes any and all benefits to which the holder of such a Partner Interest may be entitled as provided
in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. A Limited
Partner Interest may be expressed as a number of Partnership Units.

 

“Liquidating
Event” has the meaning set forth in Section 13.01 hereof.

 

“Liquidator”
has the meaning set forth in Section 13.02.A hereof.

 

“LTIP Units”
means the Partnership Units designated as such having the rights, powers, privileges, restrictions, qualifications and limitations
set forth in Exhibit E hereto.

 

“Net Income”
means, for any taxable period, the excess, if any, of the Partnership’s items of income and gain for such taxable period
over the Partnership’s items of loss and deduction for such taxable period. The items included in the calculation of Net
Income shall be determined in accordance with Exhibit B hereto. If an item of income, gain, loss or deduction that has been
included in the initial computation of Net Income is subjected to the special allocation rules in Exhibit C hereto, Net
Income or the resulting Net Loss, whichever the case may be, shall be recomputed without regard to such item.

 

“Net Loss”
means, for any taxable period, the excess, if any, of the Partnership’s items of loss and deduction for such taxable period
over the Partnership’s items of income and gain for such taxable period. The items included in the calculation of Net Loss
shall be determined in accordance with Exhibit B hereto. If an item of income, gain, loss or deduction that has been included
in the initial computation of Net Loss is subjected to the special allocation rules in Exhibit C hereto, Net Loss or the
resulting Net Income, whichever the case may be, shall be recomputed without regard to such item.

 

“New Securities”
means (i) any rights, options, warrants or convertible or exchangeable securities having the right to subscribe for or purchase
shares of capital stock (or other comparable equity interest) of the General Partner, excluding grants under any Stock Option Plan,
or (ii) any Debt issued by the General Partner that provides any of the rights described in clause (i).

 

“Nonrecourse
Built-in Gain” means, with respect to any Contributed Properties or Adjusted Properties that are subject to a mortgage or
negative pledge securing a Nonrecourse Liability, the amount of any taxable gain that would be allocated to the Partners pursuant
to Section 2.B of Exhibit C hereto if such properties were disposed of in a taxable transaction in full satisfaction of
such liabilities and for no other consideration.

 

    	7

    	 

    

 

“Nonrecourse
Deductions” has the meaning set forth in Regulations Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions for
a Partnership Year shall be determined in accordance with the rules of Regulations Section 1.704-2(c).

 

“Nonrecourse
Liability” has the meaning set forth in Regulations Section 1.752-1(a)(2).

 

“Notice of Redemption”
means a Notice of Redemption substantially in the form of Exhibit D attached hereto.

 

“Partner”
means the General Partner or a Limited Partner, and “Partners” means the General Partner and the Limited Partners.

 

“Partner Minimum
Gain” means an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that would result
if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3).

 

“Partner Nonrecourse
Debt” has the meaning set forth in Regulations Section 1.704-2(b)(4).

 

“Partner Nonrecourse
Deductions” has the meaning set forth in Regulations Section 1.704-2(i)(2), and the amount of Partner Nonrecourse Deductions
with respect to a Partner Nonrecourse Debt for a Partnership Year shall be determined in accordance with the rules of Regulations
Section 1.704-2(i)(2).

 

“Partnership”
means the limited partnership formed under the Act and continued upon the terms and conditions set forth in this Agreement, and
any successor thereto.

 

“Partnership
Interest” means a Limited Partner Interest or the General Partnership Interest and includes any and all benefits to which
the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such
Person to comply with the terms and provisions of this Agreement. A Partnership Interest may be expressed as a number of Partnership
Units.

 

“Partnership
Minimum Gain” has the meaning set forth in Regulations Section 1.704-2(b)(2), and the amount of Partnership Minimum Gain,
as well as any net increase or decrease in Partnership Minimum Gain, for a Partnership Year shall be determined in accordance with
the rules of Regulations Section 1.704-2(d).

 

“Partnership
Record Date” means the record date established by the General Partner either (i) for distributions pursuant to Section 5.01
hereof, which record date shall be the same as the record date established by the General Partner Entity for a distribution to
its stockholders of some or all of its portion of such distribution received by the General Partner if the shares of common stock
(or comparable equity interests) of the General Partner Entity are Publicly Traded, or (ii) if applicable, for determining the
Partners entitled to vote on or consent to any proposed action for which the consent or approval of the Partners is sought pursuant
to Section 14.02 hereof.

 

    	8

    	 

    

 

“Partnership
Unit” means a fractional, undivided share of the Partnership Interests of all Partners issued pursuant to Sections 4.01 and
4.02 hereof, and includes Class A Units, 8.125% Series A Cumulative Redeemable Preferred Units, LTIP Units and any other classes
or series of Partnership Units established after the date hereof. The number of Partnership Units outstanding and the Percentage
Interests represented by such Partnership Units are set forth in Exhibit A hereto, as such Exhibit may be amended and restated
from time to time. The ownership of Partnership Units may be evidenced by a certificate in a form approved by the General Partner.

 

“Partnership
Year” means the fiscal year of the Partnership, which shall be the calendar year.

 

“Percentage Interest”
means, as to a Partner holding a class of Partnership Interests, its interest in such class, determined by dividing the Partnership
Units of such class owned by such Partner by the total number of Partnership Units of such class then outstanding as specified
in Exhibit A attached hereto, as such exhibit may be amended and restated from time to time, multiplied by the aggregate
Percentage Interest allocable to such class of Partnership Interests.

 

“Person”
means a natural person, partnership (whether general or limited), trust, estate, association, corporation, limited liability company,
unincorporated organization, custodian, nominee or any other individual or entity in its own or any representative capacity.

 

“Publicly Traded”
means listed or admitted to trading on the New York Stock Exchange, the American Stock Exchange or another national securities
exchange or designated for quotation on the NASDAQ National Market, or any successor to any of the foregoing.

 

“Qualified REIT
Subsidiary” means any Subsidiary of the General Partner that is a “qualified REIT subsidiary” within the meaning
in Section 856(i) of the Code.

 

“Recapture Income”
means any gain recognized by the Partnership (computed without regard to any adjustment required by Section 743 of the Code) upon
the disposition of any property or asset of the Partnership, which gain is characterized as ordinary income because it represents
the recapture of deductions previously taken with respect to such property or asset.

 

“Redeeming Partner”
has the meaning set forth in Section 8.06.A hereof.

 

“Redemption Amount”
means either the Cash Amount or the Shares Amount, as determined by the General Partner in its sole and absolute discretion; provided
that in the event that the Shares are not Publicly Traded at the time a Redeeming Partner exercises its Redemption Right the Redemption
Amount shall be paid only in the form of the Cash Amount unless the Redeeming Partner, in its sole and absolute discretion, consents
to payment of the Redemption Amount in the form of the Shares Amount. A Redeeming Partner shall have no right, without the General
Partner’s consent, in its sole and absolute discretion, to receive the Redemption Amount in the form of the Shares Amount.

 

“Redemption Right”
has the meaning set forth in Section 8.06.A hereof.

 

    	9

    	 

    

 

“Regulations”
means the Income Tax Regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding
provisions of succeeding regulations).

 

“REIT”
means a real estate investment trust under Section 856 of the Code.

 

“REIT Requirements”
has the meaning set forth in Section 5.01.A hereof.

 

“Residual Gain”
or “Residual Loss” means any item of gain or loss, as the case may be, of the Partnership recognized for federal income
tax purposes resulting from a sale, exchange or other disposition of Contributed Property or Adjusted Property, to the extent such
item of gain or loss is not allocated pursuant to Section 2.B.1(a) or 2.B.2(a) of Exhibit C hereto to eliminate Book-Tax
Disparities.

 

“Safe Harbor”
has the meaning set forth in Section 11.06.F hereof.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“704(c) Value”
of any Contributed Property means the fair market value of such property at the time of contribution as determined by the General
Partner using such reasonable method of valuation as it may adopt. Subject to Exhibit B hereto, the General Partner shall,
in its sole and absolute discretion, use such method as it deems reasonable and appropriate to allocate the aggregate of the 704(c)
Values of Contributed Properties in a single or integrated transaction among each separate property on a basis proportional to
their fair market values.

 

“Share”
means a share of capital stock (or other comparable equity interest) of the General Partner Entity. Shares may be issued in one
or more classes or series in accordance with the terms of the Articles of Incorporation (or, if the General Partner is not the
General Partner Entity, the organizational documents of the General Partner Entity). In the event that there is more than one class
or series of Shares, the term “Shares” shall, as the context requires, be deemed to refer to the class or series of
Shares that correspond to the class or series of Partnership Interests for which the reference to Shares is made. When used with
reference to Class A Units, the term “Shares” refers to shares of common stock (or other comparable equity interest)
of the General Partner Entity.

 

“Shares Amount”
means a number of Shares equal to the product of the number of Partnership Units offered for redemption by a Redeeming Partner
times the Conversion Factor; provided that, in the event the General Partner Entity issues to all holders of Shares rights, options,
warrants or convertible or exchangeable securities entitling such holders to subscribe for or purchase Shares or any other securities
or property (collectively, the “rights”), then the Shares Amount for any Partnership Units outstanding prior to the
issuance of such rights shall also include such rights that a holder of that number of Shares would be entitled to receive.

 

“Specially Distributed
Assets” has the meaning set forth in Section 7.05.A hereof.

 

    	10

    	 

    

 

“Specified Redemption
Date” means the tenth Business Day after receipt by the General Partner of a Notice of Redemption; provided that,
if the Shares are not Publicly Traded, the Specified Redemption Date means the thirtieth Business Day after receipt by the General
Partner of a Notice of Redemption.

 

“Stock Option
Plan” means any stock incentive plan of the General Partner, the Partnership or any Affiliate of the Partnership or the General
Partner.

 

“Stockholders
Equity” means the aggregate gross proceeds from all sales of Partnership Units (other than preferred Partnership Units, if
any, issued from time to time).

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership or joint venture, or other entity of
which a majority of (i) the voting power of the voting equity securities or (ii) the outstanding equity interests is owned, directly
or indirectly, by such Person.

 

“Substituted
Limited Partner” means a Person who is admitted as a Limited Partner to the Partnership pursuant to Section 11.04 hereof.

 

“Successor Entity”
has the meaning set forth in the definition of “Conversion Factor” herein.

 

“Terminating
Capital Transaction” means any sale or other disposition of all or substantially all of the assets of the Partnership for
cash or a related series of transactions that, taken together, result in the sale or other disposition of all or substantially
all of the assets of the Partnership for cash.

 

“Termination
Transaction” has the meaning set forth in Section 11.02.B hereof.

 

“Unrealized Gain”
attributable to any item of Partnership property means, as of any date of determination, the excess, if any, of (i) the fair market
value of such property (as determined under Exhibit B hereto) as of such date, over (ii) the Carrying Value of such property
(prior to any adjustment to be made pursuant to Exhibit B hereto) as of such date.

 

“Unrealized Loss”
attributable to any item of Partnership property means, as of any date of determination, the excess, if any, of (i) the Carrying
Value of such property (prior to any adjustment to be made pursuant to Exhibit B hereto) as of such date, over (ii) the
fair market value of such property (as determined under Exhibit B hereto) as of such date.

 

“Valuation Date”
means the date of receipt by the General Partner of a Notice of Redemption or, if such date is not a Business Day, the first Business
Day thereafter.

 

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“Value”
means, with respect to any outstanding Shares of the General Partner Entity that are Publicly Traded, the average of the daily
market price for the ten (10) consecutive trading days immediately preceding the date with respect to which value must be determined
or, if such date is not a Business Day, the immediately preceding Business Day. The market price for each such trading day shall
be the closing price, regular way, on such day, or if no such sale takes place on such day, the average of the closing bid and
asked prices on such day. In the event that the outstanding Shares of the General Partner Entity are Publicly Traded and the Shares
Amount includes rights that a holder of Shares would be entitled to receive, then the Value of such rights shall be determined
by the General Partner acting in good faith on the basis of such quotations and other information as it considers, in its reasonable
judgment, appropriate. In the event that the Shares of the General Partner Entity are not Publicly Traded, the Value of the Shares
Amount per Partnership Unit offered for redemption (which will be the Cash Amount per Partnership Unit offered for redemption payable
pursuant to Section 8.06) means the amount that a holder of one Partnership Unit would receive if each of the assets of the Partnership
were to be sold for its fair market value on the Specified Redemption Date, the Partnership were to pay all of its outstanding
liabilities, and the remaining proceeds were to be distributed to the Partners in accordance with the terms of this Agreement.
Such Value shall be determined by the General Partner, acting in good faith and based upon a commercially reasonable estimate of
the amount that would be realized by the Partnership if each asset of the Partnership (and each asset of each Partnership, limited
liability company, joint venture or other entity in which the Partnership owns a direct or indirect interest) were sold to an unrelated
purchaser in an arms’ length transaction where neither the purchaser nor the seller were under economic compulsion to enter
into the transaction (without regard to any discount in value as a result of the Partnership’s minority interest in any property
or any illiquidity of the Partnership’s interest in any property). In connection with determining the value of the Partnership
Interest for purposes of determining the number of additional Partnership Units issuable upon a Capital Contribution funded by
an underwritten public offering of shares of capital stock (or other comparable equity interest) of the General Partner, the Value
of such shares shall be the public offering price per share of such class of the capital stock (or other comparable equity interest)
sold.

 

ARTICLE
II

 

ORGANIZATIONAL MATTERS

 

Section 2.01.         Organization

 

The Partnership is
a limited partnership organized pursuant to the provisions of the Act and upon the terms and conditions set forth in the Agreement.
Except as expressly provided herein to the contrary, the rights and obligations of the Partners and the administration and termination
of the Partnership shall be governed by the Act. The Partnership Interest of each Partner shall be personal property for all purposes.

 

Section 2.02.         Name

 

The name of the Partnership
is GPT Property Trust LP. The Partnership’s business may be conducted under any other name or names deemed advisable by the
General Partner, including the name of the General Partner or any Affiliate thereof. The words “Limited Partnership,”
“L.P.,” “Ltd.” or similar words or letters shall be included in the Partnership’s name where necessary
for the purposes of complying with the laws of any jurisdiction that so requires. The General Partner in its sole and absolute
discretion may change the name of the Partnership at any time and from time to time and shall notify the Limited Partners of such
change in the next regular communication to the Limited Partners.

 

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Section 2.03.         Registered
Office and Agent; Principal Office

 

The address of the
registered office of the Partnership in the State of Delaware shall be located at 9 East Loockerman Street, Suite #1B in the City
of Dover, County of Kent, Delaware 19901 and the registered agent for service of process on the Partnership in the State of Delaware
at such registered office shall be National Registered Agents, Inc. The principal office of the Partnership shall be 521 Fifth
Avenue, 30th Floor, New York, New York, 10175 or such other place as the General Partner may from time to time designate by notice
to the Limited Partners. The Partnership may maintain offices at such other place or places within or outside the State of Delaware
as the General Partner deems advisable.

 

Section 2.04.         Term

 

The term of the Partnership
commenced on April 21, 2004, the date on which the Certificate was filed in the office of the Secretary of State of the State of
Delaware in accordance with the Act, and shall continue until December 31, 2103, unless it is dissolved sooner pursuant to the
provisions of Article XIII hereof or as otherwise provided by law.

 

ARTICLE
III

 

PURPOSE

 

Section 3.01.         Purpose
and Business

 

The purpose and nature
of the business to be conducted by the Partnership is (i) to conduct any business that may be lawfully conducted by a limited partnership
organized pursuant to the Act; provided, however, that such business shall be limited to and conducted in such a
manner as to permit the General Partner Entity at all times to be classified as a REIT, unless the General Partner ceases to qualify
or is not qualified as a REIT for any reason or reasons not related to the business conducted by the Partnership; (ii) to enter
into any partnership, joint venture, limited liability company or other similar arrangement to engage in any of the foregoing or
the ownership of interests in any entity engaged, directly or indirectly, in any of the foregoing; and (iii) to do anything necessary
or incidental to the foregoing. In connection with the foregoing, the Partners acknowledge that the status of the General Partner
Entity as a REIT inures to the benefit of all the Partners and not solely the General Partner or its Affiliates.

 

Section 3.02.         Powers

 

The Partnership is
empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance
and accomplishment of the purposes and business described herein and for the protection and benefit of the Partnership, including,
without limitation, full power and authority, directly or through its ownership interest in other entities, to enter into, perform
and carry out contracts of any kind, borrow money and issue evidences of indebtedness whether or not secured by mortgage, deed
of trust, pledge or other lien, acquire, own, manage, improve and develop real property, and lease, sell, transfer and dispose
of real property; provided, however, that the Partnership shall not take, or refrain from taking, any action which,
in the judgment of the General Partner, in its sole and absolute discretion, (i) could adversely affect the ability of the General
Partner Entity to continue to qualify as a REIT, (ii) could subject the General Partner Entity to any additional taxes under Section
857 or Section 4981 of the Code or (iii) could violate any law or regulation of any governmental body or agency having jurisdiction
over the General Partner Entity or its securities, unless such action (or inaction) shall have been specifically consented to by
the General Partner in writing.

 

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Section 3.03.         Partnership
Only for Purposes Specified

 

The Partnership shall
be a partnership only for the purposes specified in Section 3.01 above, and this Agreement shall not be deemed to create a partnership
among the Partners with respect to any activities whatsoever other than the activities within the purposes of the Partnership as
specified in Section 3.01 above.

 

ARTICLE
IV

 

CAPITAL CONTRIBUTIONS
AND ISSUANCES

OF PARTNERSHIP INTERESTS

 

Section 4.01.         Capital
Contributions of the Partners

 

A.           Capital
Contributions. Prior to the date hereof, certain Partners made Capital Contributions to the Partnership. Exhibit A hereto
reflects the Capital Contributions made by each Partner, the Partnership Units assigned to each Partner and the Percentage Interest
in the Partnership represented by such Partnership Units. The Capital Accounts of the Partners and the Carrying Values of the Partnership’s
Assets have been and will continue to be determined pursuant to Section 1.D of Exhibit B hereto to reflect the Capital Contributions
made.

 

B.           General
Partnership Interest. A number of Partnership Units held by the General Partner equal to one percent (1%) of all outstanding
Partnership Units shall be deemed to be the General Partnership Interest. All other Partnership Units held by the General Partner
shall be deemed to be Limited Partner Interests and shall be held by the General Partner in its capacity as a Limited Partner in
the Partnership.

 

C.           Capital
Contributions By Merger. To the extent the Partnership acquires any property by the merger of any other Person into the Partnership,
Persons who receive Partnership Interests in exchange for their interests in the Person merging into the Partnership shall become
Partners and shall be deemed to have made Capital Contributions as provided in the applicable merger agreement and as set forth
in Exhibit A hereto.

 

D.           No
Obligation to Make Additional Capital Contributions. Except as provided in Sections 7.05 and 10.05 hereof, the Partners shall
have no obligation to make any additional Capital Contributions or provide any additional funding to the Partnership (whether in
the form of loans, repayments of loans or otherwise). No Partner shall have any obligation to restore any deficit that may exist
in its Capital Account, either upon a liquidation of the Partnership or otherwise.

 

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Section 4.02.         Issuances
of Partnership Interests

 

A.           General.
The General Partner is hereby authorized to cause the Partnership from time to time to issue to Partners (including the General
Partner and its Affiliates) or other Persons (including, without limitation, in connection with the contribution of property to
the Partnership) Partnership Units or other Partnership Interests in one or more classes, or in one or more series of any of such
classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties,
including rights, powers and duties senior to Limited Partner Interests, all as shall be determined, subject to applicable Delaware
law, by the General Partner in its sole and absolute discretion, including, without limitation, (i) the allocations of items of
Partnership income, gain, loss, deduction and credit to each such class or series of Partnership Interests, (ii) the right of each
such class or series of Partnership Interests to share in Partnership distributions and (iii) the rights of each such class or
series of Partnership Interests upon dissolution and liquidation of the Partnership; provided, that no such Partnership
Units or other Partnership Interests shall be issued to the General Partner unless either (a) the Partnership Interests are issued
in connection with the grant, award or issuance of Shares or other equity interests in the General Partner having designations,
preferences and other rights such that the economic interests attributable to such Shares or other equity interests are substantially
similar to the designations, preferences and other rights (except voting rights) of the additional Partnership Interests issued
to the General Partner in accordance with this Section 4.02.A or (b) the Partnership Interests are issued to all Partners holding
Partnership Interests in the same class in proportion to their respective Percentage Interests in such class. In the event that
the Partnership issues Partnership Interests pursuant to this Section 4.02.A, the General Partner shall make such revisions to
this Agreement (including but not limited to the revisions described in Section 5.04, Section 6.02 and Section 8.06 hereof) as
it deems necessary to reflect the issuance of such additional Partnership Interests.

 

B.           Percentage
Interest Adjustments in the Case of Capital Contributions for Class A Units. Upon the acceptance of additional Capital Contributions
in exchange for Class A Units, the Percentage Interest related thereto shall be equal to a fraction, the numerator of which is
equal to the amount of cash, if any, plus the Agreed Value of Contributed Property, if any, contributed with respect to such additional
Partnership Units and the denominator of which is equal to the sum of (i) value of the Partnership Interests for all outstanding
Class A Units (computed as of the Business Day immediately preceding the date on which the additional Capital Contributions are
made (an “Adjustment Date”)) plus (ii) the aggregate amount of additional Capital Contributions contributed
to the Partnership on such Adjustment Date in respect of such additional Class A Units. The Percentage Interest of each other Partner
holding Class A Units not making a full pro rata Capital Contribution shall be adjusted to a fraction the numerator of which is
equal to the sum of (i) the value of such Limited Partner (computed as of the Business Day immediately preceding the Adjustment
Date) plus (ii) the amount of additional Capital Contributions (such amount being equal to the amount of cash, if any, plus the
Agreed Value of Contributed Property, if any, so contributed), if any, made by such Partner to the Partnership in respect of such
Class A Units as of such Adjustment Date and the denominator of which is equal to the sum of (i) the value of the outstanding Class
A Units (computed as of the Business Day immediately preceding such Adjustment Date) plus (ii) the aggregate amount of the additional
Capital Contributions contributed to the Partnership on such Adjustment Date in respect of such additional Class A Units. For purposes
of calculating a Partner’s Percentage Interest of Class A Units pursuant to this Section 4.02.B, cash Capital Contributions
by the General Partner will be deemed to equal the cash contributed by the General Partner plus (a) in the case of cash contributions
funded by an offering of any equity interests in or other securities of the General Partner, the offering costs attributable to
the cash contributed to the Partnership, and (b) in the case of Class A Units issued pursuant to Section 7.05.E hereof, an amount
equal to the difference between the Value of the Shares sold pursuant to any Stock Option Plan and the net proceeds of such sale.

 

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C.           Classes
of Partnership Units. Subject to Section 4.02.A above, the Partnership shall have the following classes of Partnership Units:
(i) “Class A Units”; (ii) “LTIP Units”; and (iii) “8.125% Series A Cumulative Redeemable Preferred
Units”. Class A Units may be issued to newly admitted Partners in exchange for the contribution by such Partners of cash,
real estate partnership interests, stock, notes or other assets or consideration.

 

D.           Issuance
of LTIP Units. From time to time the General Partner may issue LTIP Units to Persons providing services to or for the benefit
of the Partnership. LTIP Units shall have the rights, powers, privileges, restrictions, qualifications and limitations specified
in Exhibit E hereto. LTIP Units are intended to qualify as profits interests in the Partnership and for the avoidance of
doubt, the provisions of Section 4.04 shall not apply to the issuance of LTIP Units.

 

E.           8.125%
Series A Cumulative Redeemable Preferred Units. The 8.125% Series A Cumulative Redeemable Preferred Units shall have the rights,
powers, privileges, restrictions, qualifications and limitations specified in Exhibit F attached hereto and made part hereof.

 

Section 4.03.         No
Preemptive Rights

 

Except to the extent
expressly granted by the Partnership pursuant to another agreement, no Person shall have any preemptive, preferential or other
similar right with respect to (i) additional Capital Contributions or loans to the Partnership or (ii) issuance or sale of any
Partnership Units or other Partnership Interests.

 

Section 4.04.         Other
Contribution Provisions

 

In the event that any
Partner is admitted to the Partnership and is given a Capital Account in exchange for services rendered to the Partnership, such
transaction shall be treated by the Partnership and the affected Partner as if the Partnership had compensated such Partner in
cash, and the Partner had contributed such cash to the capital of the Partnership.

 

Section 4.05.         No
Interest on Capital

 

No Partner shall be
entitled to interest on its Capital Contributions or its Capital Account.

 

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ARTICLE
V

 

DISTRIBUTIONS

 

Section 5.01.         Requirement
and Characterization of Distributions

 

A.           General.
Except as otherwise provided herein, the General Partner shall make distributions at such times and in such amounts as it may determine.
Such distributions shall be made to the Partners who are Partners on the Partnership Record Date for such distribution. Notwithstanding
anything to the contrary contained herein, in no event may a Partner receive a distribution with respect to a Partnership Unit
for a quarter or shorter period if such Partner is entitled to receive a distribution relating to such period with respect to a
Share for which such Partnership Unit has been redeemed or exchanged. Unless otherwise expressly provided for herein or in an agreement
at the time a new class of Partnership Interests is created in accordance with Article IV hereof, no Partnership Interest shall
be entitled to a distribution in preference to any other Partnership Interest. The General Partner shall make such reasonable efforts,
as determined by it in its sole and absolute discretion and consistent with the qualification of the General Partner Entity as
a REIT, to make distributions (a) to Limited Partners so as to preclude any such distribution or portion thereof from being treated
as part of a sale of property by a Limited Partner under Section 707 Code or the Regulations thereunder; provided that, the General
Partner and the Partnership shall not have liability to a Limited Partner under any circumstances as a result of any distribution
to a Limited Partner being so treated, and (b) to the General Partner in an amount sufficient to enable the General Partner Entity
to pay stockholder dividends that will (1) satisfy the requirements for qualification as a REIT under the Code and the Regulations
(the “REIT Requirements”) and (2) avoid any federal income or excise tax liability for the General Partner Entity.

 

B.           Method.
Distributions shall be made (i) first, to each holder of a Partnership Interest that is entitled to any preference in distribution,
in accordance with the rights of any such class of Partnership Interests, and (ii) thereafter, to the holders of Class A Units
and each other class of Partnership Interests ranking in parity to the Class A Units (including, without limitation, the LTIP Units
if and to the extent they are then entitled to participate in such distributions pursuant to Section 2 of Exhibit E hereto),
in proportion to the relative Percentage Interests of each such class of Partnership Interests. All distributions within a class
of Partnership Units shall be pro rata in proportion to the respective Percentage Interests on the applicable Partnership Record
Date.

 

Section 5.02.         Amounts
Withheld

 

All amounts withheld
pursuant to the Code or any provisions of any state or local tax law and Section 10.05 hereof with respect to any allocation, payment
or distribution to the General Partner, the Limited Partners or Assignees shall be treated as amounts distributed to the General
Partner, Limited Partners or Assignees pursuant to Section 5.01 above for all purposes under this Agreement.

 

Section 5.03.         Distributions
Upon Liquidation

 

Proceeds from a Terminating
Capital Transaction shall be distributed to the Partners in accordance with Section 13.02 hereof.

 

Section 5.04.         Revisions
to Reflect Issuance of Additional Partnership Interests

 

In the event that the
Partnership issues additional Partnership Interests to the General Partner or any Additional Limited Partner pursuant to Article
IV hereof, the General Partner shall make such revisions to this Article V as it deems necessary to reflect the issuance of such
additional Partnership Interests. Such revisions shall not require the consent or approval of any other Partner.

 

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ARTICLE
VI

 

ALLOCATIONS

 

Section 6.01.         Allocations
For Capital Account Purposes

 

For purposes of maintaining
the Capital Accounts and in determining the rights of the Partners among themselves, the Partnership’s items of income, gain,
loss and deduction (computed in accordance with Exhibit B hereto) shall be allocated among the Partners in each taxable
year (or portion thereof) as provided herein below.

 

A.           Net
Income. After giving effect to the special allocations set forth in Section 1 of Exhibit C hereto, Net Income shall
be allocated (i) first, to the General Partner to the extent that Net Losses previously allocated to the General Partner, on a
cumulative basis, pursuant to the last sentence of Section 6.01.B below exceed Net Income previously allocated to the General Partner,
on a cumulative basis, pursuant to this clause (i) of Section 6.01.A, (ii) second, to Holders of any Partnership Interests that
are entitled to any preference in distribution in accordance with the rights of any such class of Partnership Interests until each
such Partnership Interest has been allocated, on a cumulative basis pursuant to this clause (ii), Net Income equal to the sum of
the amount of distributions theretofore received (or to be received with respect to the fiscal year of the Partnership in which
such Net Income accrues) with respect to such Partnership Interests pursuant to clause (i) of Section 5.01.B hereof and the amount
of any prior allocations of Net Losses to such class of Partnership Interests pursuant to Section 6.01.B.(i) below (and, within
such class, pro rata in proportion to the respective interests in such class as of the last day of the period for which such allocation
is being made) and (iii) third, with respect to Partnership Interests that are not entitled to any preference in the allocation
of Net Income, pro rata to each such class in accordance with the terms of such class (and, within such class, pro rata in proportion
to the respective interests in such class as of the last day of the period for which such allocation is being made).

 

B.           Net
Losses. After giving effect to the special allocations set forth in Section 1 of Exhibit C hereto, Net Losses shall
be allocated (i) first, to the Holders of any Partnership Interests that are entitled to any preference in distribution in accordance
with the rights of any such class of Partnership Interests to the extent that any prior allocations of Net Income to such class
of Partnership Interests pursuant to Section 6.01.A(ii) above exceed, on a cumulative basis, distributions theretofore received
(or to be received with respect to the fiscal year of the Partnership in which such Net Income accrues) with respect to such Partnership
Interests pursuant to clause (i) of Section 5.01.B hereof (and, within such class, pro rata in proportion to the respective interests
in such class as of the last day of the period for which such allocation is being made) and (ii) second, with respect to classes
of Partnership Interests that are not entitled to any preference in distribution, pro rata to each such class in accordance with
the terms of such class (and, within such class, pro rata in proportion to the respective interests in such class as of the last
day of the period for which such allocation is being made); provided that, Net Losses shall not be allocated to any Limited Partner
pursuant to this Section 6.01.B to the extent that such allocation would cause such Limited Partner to have an Adjusted Capital
Account Deficit (or increase any existing Adjusted Capital Account Deficit) at the end of such taxable year (or portion thereof).
All Net Losses in excess of the limitations set forth in this Section 6.01.B shall be allocated to the General Partner.

 

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C.           Recapture
Income. Any gain allocated to the Partners upon the sale or other taxable disposition of any Partnership asset shall, to the
extent possible after taking into account other required allocations of gain pursuant to Exhibit C hereto, be characterized
as Recapture Income in the same proportions and to the same extent as such Partners have been allocated any deductions directly
or indirectly giving rise to the treatment of such gains as Recapture Income.

 

D.           Special
Allocations. With respect to LTIP Units, after giving effect to the special allocations set forth in Section 1 of Exhibit
C hereto, and notwithstanding the provisions of Sections 6.01.A and 6.01.B above, but subject to the prior allocation of income
and gain under clauses 6.01.A (i) and (ii) above, any Liquidating Gains shall first be allocated to the holders of LTIP Units until
the Economic Capital Account Balances of such holders, to the extent attributable to their ownership of LTIP Units, are equal to
(i) the Class A Unit Economic Balance, multiplied by (ii) the number of their LTIP Units; provided that no such Liquidating Gains
will be allocated with respect to any particular LTIP Unit unless and to the extent that such Liquidating Gains, when aggregated
with other Liquidating Gains realized since the issuance of such LTIP Unit, exceed Liquidating Losses realized since the issuance
of such LTIP Unit. After giving effect to the special allocations set forth in Section 1 of Exhibit C hereto, and notwithstanding
the provisions of Sections 6.01.A and 6.01.B above, in the event that, due to distributions with respect to Class A Units in which
the LTIP Units do not participate or otherwise, the Economic Capital Account Balance of any present or former holder of LTIP Units,
to the extent attributable to the holder’s ownership of LTIP Units, exceeds the target balance specified above, then Liquidating
Losses shall be allocated to such holder to the extent necessary to reduce or eliminate the disparity. In the event that Liquidating
Gains or Liquidating Losses are allocated under this Section 6.01.D, Net Income allocable under clause 6.01.A(iii) and any Net
Losses shall be recomputed without regard to the Liquidating Gains or Liquidating Losses so allocated. For this purpose, “Liquidating
Gains” means any net capital gain realized in connection with the actual or hypothetical sale of all or substantially
all of the assets of the Partnership, including but not limited to net capital gain realized in connection with an adjustment to
the Carrying Value of Partnership assets under Section 1.D of Exhibit B to this Agreement. Similarly, “Liquidating
Losses” means any net capital loss realized in connection with any such event. The “Economic Capital Account
Balances” of the holders of LTIP Units will be equal to their Capital Account balances, plus the amount of their shares
of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to their ownership of LTIP Units.
Similarly, the “Class A Unit Economic Balance” shall mean (i) the Capital Account balance of the General Partner,
plus the amount of the General Partner’s share of any Partner Minimum Gain or Partnership Minimum Gain, in either case to
the extent attributable to the General Partner’s ownership of Class A Units and computed on a hypothetical basis after taking
into account all allocations through the date on which any allocation is made under this Section 6.01.D, divided by (ii) the number
of the General Partner’s Class A Units. Any such allocations shall be made among the holders of LTIP Units in proportion
to the amounts required to be allocated to each under this Section 6.01.D. The parties agree that the intent of this Section 6.01.D
is to make the Capital Account balance associated with each LTIP Unit economically equivalent to the Capital Account balance associated
with the General Partner’s Class A Units (on a per-unit basis), but only if the Partnership has recognized cumulative net
gains with respect to its assets since the issuance of the relevant LTIP Unit.

 

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Section 6.02.         Revisions
to Allocations to Reflect Issuance of Additional Partnership Interests

 

In the event that the
Partnership issues additional Partnership Interests to the General Partner or any Additional Limited Partner pursuant to Article
IV hereof, the General Partner shall make such revisions to this Article VI and Exhibit A as it deems necessary to reflect
the terms of the issuance of such additional Partnership Interests, including making preferential allocations to classes of Partnership
Interests that are entitled thereto. Such revisions shall not require the consent or approval of any other Partner.

 

ARTICLE
VII

 

MANAGEMENT AND OPERATIONS
OF BUSINESS

 

Section 7.01.         Management

 

A.           Powers
of General Partner. Except as otherwise expressly provided in this Agreement, all management powers over the business and affairs
of the Partnership are and shall be exclusively vested in the General Partner, and no Limited Partner shall have any right to participate
in or exercise control or management power over the business and affairs of the Partnership. The General Partner may not be removed
by the Limited Partners with or without cause; provided, however, that if the Shares (or comparable equity securities)
of the General Partner Entity are not Publicly Traded, the General Partner may be removed with cause with the Consent of the Limited
Partners. In addition to the powers now or hereafter granted a general partner of a limited partnership under applicable law or
which are granted to the General Partner under any other provision of this Agreement, the General Partner, subject to Sections
7.06 and 7.11 below, shall have full power and authority to do all things deemed necessary or desirable by it to conduct the business
of the Partnership, to exercise all powers set forth in Section 3.02 hereof and to effectuate the purposes set forth in Section
3.01 hereof, including, without limitation:

 

(1)         the
making of any expenditures, the lending or borrowing of money or will permit the General Partner Entity (as long as the General
Partner Entity qualifies as a REIT) to avoid the payment of any federal income tax (including, for this purpose, any excise tax
pursuant to Section 4981 of the Code) and to make distributions to its stockholders sufficient to permit the General Partner Entity
to maintain REIT status, the assumption or guarantee of, or other contracting for, indebtedness and other liabilities, the issuance
of evidences of indebtedness (including the securing of same by mortgage, deed of trust or other lien or encumbrance on the Partnership’s
assets) and the incurring of any obligations the General Partner deems necessary for the conduct of the Partnership;

 

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(2)         the
making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other agencies having
jurisdiction over the business or assets of the Partnership;

 

(3)         the
acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or exchange of any or all of the assets of the Partnership
(including the exercise or grant of any conversion, option, privilege or subscription right or other right available in connection
with any assets at any time held by the Partnership) or the merger or other combination of the Partnership with or into another
entity, on such terms as the General Partner deems proper;

 

(4)         the
use of the assets of the Partnership (including, without limitation, cash on hand) for any purpose consistent with the terms of
this Agreement and on any terms it sees fit, including, without limitation, the financing of the conduct of the operations of the
Partnership or any of the Partnership’s Subsidiaries, the lending of funds to other Persons (including, without limitation,
the Partnership’s Subsidiaries) and the repayment of obligations of the Partnership and its Subsidiaries and any other Person
in which the Partnership has an equity investment and the making of capital contributions to its Subsidiaries;

 

(5)         the
negotiation, execution, delivery and performance of any contracts, conveyances or other instruments that the General Partner considers
useful or necessary to the conduct of the Partnership’s operations or the implementation of the General Partner’s powers
under this Agreement, including contracting with contractors, developers, consultants, accountants, legal counsel, other professional
advisors, and other agents and the payment of their expenses and compensation out of the Partnership’s assets;

 

(6)         the
mortgage, pledge, encumbrance or hypothecation of any assets of the Partnership, and the use of the assets of the Partnership (including,
without limitation, cash on hand) for any purpose consistent with the terms of this Agreement and on any terms it sees fit, including,
without limitation, the financing of the conduct or the operations of the General Partners or the Partnership, the lending of funds
to other Persons (including, without limitation, any Subsidiaries of the Partnership) and the repayment of obligations of the Partnership,
any of its Subsidiaries and any other Person in which it has an equity investment;

 

(7)         the
distribution of Partnership cash or other Partnership assets in accordance with this Agreement;

 

(8)         the
holding, managing, investing and reinvesting of cash and other assets of the Partnership;

 

(9)         the
collection and receipt of revenues and income of the Partnership;

 

(10)       the
selection, designation of powers, authority and duties and dismissal of employees of the Partnership (including, without limitation,
employees having titles such as “president,” “vice president,” “secretary” and “treasurer”)
and agents, outside attorneys, accountants, consultants and contractors of the Partnership, and the determination of their compensation
and other terms of employment or hiring;

 

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(11)        the
maintenance of such insurance for the benefit of the Partnership and the Partners as it deems necessary or appropriate;

 

(12)        the
formation of, or acquisition of an interest (including non-voting interests in entities controlled by Affiliates of the Partnership
or third parties) in, and the contribution of property to, any further limited or general partnerships, joint ventures, limited
liability companies or other relationships that it deems desirable (including, without limitation, the acquisition of interests
in, and the contributions of funds or property, or the making of loans, to its Subsidiaries and any other Person in which it has
an equity investment from time to time or the incurrence of indebtedness on behalf of such Persons or the guarantee of obligations
of such Persons); provided that, as long as the General Partner has determined to qualify as a REIT, the Partnership may not engage
in any such formation, acquisition or contribution that would cause the General Partner to fail to qualify as a REIT);

 

(13)        the
control of any matters affecting the rights and obligations of the Partnership, including the settlement, compromise, submission
to arbitration or any other form of dispute resolution or abandonment of any claim, cause of action, liability, debt or damages
due or owing to or from the Partnership, the commencement or defense of suits, legal proceedings, administrative proceedings, arbitrations
or other forms of dispute resolution, the representation of the Partnership in all suits or legal proceedings, administrative proceedings,
arbitrations or other forms of dispute resolution, the incurring of legal expense and the indemnification of any Person against
liabilities and contingencies to the extent permitted by law;

 

(14)        the
determination of the fair market value of any Partnership property distributed in kind, using such reasonable method of valuation
as the General Partner may adopt;

 

(15)        the
exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of any right,
including the right to vote, appurtenant to any assets or investment held by the Partnership;

 

(16)        the
exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection with any Subsidiary
of the Partnership or any other Person in which the Partnership has a direct or indirect interest, individually or jointly with
any such Subsidiary or other Person;

 

(17)        the
exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of any Person in which the Partnership
does not have any interest pursuant to contractual or other arrangements with such Person;

 

(18)        the
making, executing and delivering of any and all deeds, leases, notes, deeds to secure debt, mortgages, deeds of trust, security
agreements, conveyances, contracts, guarantees, warranties, indemnities, waivers, releases or other legal instruments or agreements
in writing necessary or appropriate in the judgment of the General Partner for the accomplishment of any of the powers of the General
Partner under this Agreement;

 

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(19)        the
distribution of cash to acquire Partnership Units held by a Limited Partner in connection with a Limited Partner’s exercise
of its Redemption Right under Section 8.06 hereof; and

 

(20)        the
amendment and restatement of Exhibit A hereto to reflect accurately at all times the Capital Contributions and Percentage
Interests of the Partners as the same are adjusted from time to time to the extent necessary to reflect redemptions, Capital Contributions,
the issuance of Partnership Units, the admission of any Additional Limited Partner or any Substituted Limited Partner or otherwise,
which amendment and restatement, notwithstanding anything in this Agreement to the contrary, shall not be deemed an amendment of
this Agreement, as long as the matter or event being reflected in Exhibit A hereto otherwise is authorized by this Agreement.

 

B.           No
Approval by Limited Partners. Except as provided in Section 7.11 below, each of the Limited Partners agrees that the General
Partner is authorized to execute, deliver and perform the above-mentioned agreements and transactions on behalf of the Partnership
without any further act, approval or vote of the Partners, notwithstanding any other provision of this Agreement, the Act or any
applicable law, rule or regulation, to the full extent permitted under the Act or other applicable law. The execution, delivery
or performance by the General Partner or the Partnership of any agreement authorized or permitted under this Agreement shall not
constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership or the Limited Partners
or any other Persons under this Agreement or of any duty stated or implied by law or equity.

 

C.           Insurance.
At all times from and after the date hereof, the General Partner may cause the Partnership to obtain and maintain (i) casualty,
liability and other insurance on the properties of the Partnership, (ii) liability insurance for the Indemnitees hereunder and
(iii) such other insurance as the General Partner, in its sole and absolute discretion, determines to be necessary.

 

D.           Working
Capital and Other Reserves. At all times from and after the date hereof, the General Partner may cause the Partnership to establish
and maintain working capital reserves in such amounts as the General Partner, in its sole and absolute discretion, deems appropriate
and reasonable from time to time, including upon liquidation of the Partnership pursuant to Section 13.02 hereof.

 

E.           No
Obligations to Consider Tax Consequences of Limited Partners.

 

In exercising its authority
under this Agreement, the General Partner may, but shall be under no obligation to, take into account the tax consequences to any
Partner (including the General Partner) of any action taken (or not taken) by it. The General Partner and the Partnership shall
not have liability to a Limited Partner for monetary damages or otherwise for losses sustained, liabilities incurred or benefits
not derived by such Limited Partner in connection with such decisions, provided that the General Partner has acted in good faith
and pursuant to its authority under this Agreement.

 

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Section 7.02.         Certificate
of Limited Partnership

 

The General Partner
has previously filed the Certificate with the Secretary of State of Delaware. To the extent that such action is determined by the
General Partner to be reasonable and necessary or appropriate, the General Partner shall file amendments to and restatements of
the Certificate and do all the things to maintain the Partnership as a limited partnership (or a partnership in which the limited
partners have limited liability) under the laws of the State of Delaware and each other state, the District of Columbia or other
jurisdiction in which the Partnership may elect to do business or own property. Subject to the terms of Section 8.05.A(4) hereof,
the General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate or any amendment
thereto to any Limited Partner. The General Partner shall use all reasonable efforts to cause to be filed such other certificates
or documents as may be reasonable and necessary or appropriate for the formation, continuation, qualification and operation of
a limited partnership (or a partnership in which the limited partners have limited liability) in the State of Delaware and any
other state, the District of Columbia or other jurisdiction in which the Partnership may elect to do business or own property.

 

Section 7.03.         Title
to Partnership Assets

 

Title to Partnership
assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an
entity, and no Partners, individually or collectively, shall have any ownership interest in such Partnership assets or any portion
thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or
more nominees, as the General Partner may determine, including Affiliates of the General Partner. The General Partner hereby declares
and warrants that any Partnership assets for which legal title is held in the name of the General Partner or any nominee or Affiliate
of the General Partner shall be held by the General Partner for the use and benefit of the Partnership in accordance with the provisions
of this Agreement provided, however, that the General Partner shall use its best efforts to cause beneficial and
record title to such assets to be vested in the Partnership as soon as reasonably practicable. All Partnership assets shall be
recorded as the property of the Partnership in its books and records, irrespective of the name in which legal title to such Partnership
assets is held.

 

Section 7.04.         Reimbursement
of the General Partner

 

A.           No
Compensation. Except as provided in this Section 7.04 and elsewhere in this Agreement (including the provisions of Articles
V and VI hereof regarding distributions, payments and allocations to which it may be entitled), the General Partner shall not be
compensated for its services as general partner of the Partnership.

 

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B.           Responsibility
for Partnership Expenses. The Partnership shall be responsible for and shall pay all expenses relating to the Partnership’s
organization, the ownership of its assets and its operations. The General Partner shall be reimbursed on a monthly basis, or such
other basis as the General Partner may determine in its sole and absolute discretion, for all expenses it incurs relating to the
ownership and operation of, or for the benefit of, the Partnership (including, without limitation, expenses related to the management
and administration of any Subsidiaries of the General Partner or the Partnership or Affiliates of the Partnership such as auditing
expenses and filing fees); provided that, the amount of any such reimbursement shall be reduced by (i) any interest earned by the
General Partner with respect to bank accounts or other instruments or accounts held by it as permitted in Section 7.05.A below
and (ii) any amount derived by the General Partner from any investments permitted in Section 7.05.A below; and, provided
further that the General Partner shall not be reimbursed for (i) income tax liabilities or (ii) filing or similar fees in
connection with maintaining the General Partner’s continued corporate existence that are incurred by the General Partner.
The General Partner shall determine in good faith the amount of expenses incurred by it related to the ownership and operation
of, or for the benefit of, the Partnership. In the event that certain expenses are incurred for the benefit of the Partnership
and other entities (including the General Partner), such expenses will be allocated to the Partnership and such other entities
in such a manner as the General Partner in its sole and absolute discretion deems fair and reasonable. Such reimbursements shall
be in addition to any reimbursement to the General Partner pursuant to Section 10.03 hereof and as a result of indemnification
pursuant to Section 7.07 below. All payments and reimbursements hereunder shall be characterized for federal income tax purposes
as expenses of the Partnership incurred on its behalf, and not as expenses of the General Partner.

 

C.           Partnership
and Other Interests Issuance and Repurchase Expenses. The General Partner shall also be reimbursed for all expenses it incurs
relating to any issuance or repurchase of additional Partnership Interests, Shares, Debt of the Partnership or the General Partner
or rights, options, warrants or convertible or exchangeable securities pursuant to Article IV hereof (including, without limitation,
all costs, expenses, damages and other payments resulting from or arising in connection with litigation related to any of the foregoing),
all of which expenses are considered by the Partners to constitute expenses of, and for the benefit of, the Partnership.

 

D.           Reimbursement
not a Distribution. If and to the extent any reimbursement made pursuant to this Section 7.04 is determined for federal income
tax purposes not to constitute a payment of expenses of the Partnership, the amount so determined shall be treated as a distribution
to the General Partner and there shall be a corresponding special allocation of gross income to the General Partner, for purposes
of computing the Partners’ Capital Accounts.

 

Section 7.05.         Outside
Activities of the General Partner

 

A.           General.
Notwithstanding anything in this Agreement to the contrary, it is expressly understood and agreed that the General Partner may,
if it determines such action to be in the best interests of the REIT or the Partnership, elect to cause some or all of the assets
of the Partnership (including cash expected to be utilized to purchase assets that will be so held) to be distributed to and held
directly by the General Partner (the “Specially Distributed Assets”). Concurrently with any such distribution,
the General Partner shall (i) amend Section 5.01 of this Agreement so as to provide that, from and after the date of such distribution,
each Partner other than the General Partner will receive the same distributions that it would have received had the Specially Distributed
Assets been held by the Partnership rather than directly by the General Partner (and a corresponding adjustment shall be made to
the distributions to be made to the General Partner); and (ii) make such further amendments to this Agreement (including, without
limitation, to the income and loss allocation provisions of Section 6.01 hereof) as may be necessary or appropriate to effect the
intention of the parties that the Partners be placed, as nearly as possible, in the same position they would have been in had such
Specially Distributed Assets been held by the Partnership rather than directly by the General Partner; provided, however,
that the General Partner shall in no event be required to make contributions to the Partnership to fund distributions to the other
Partners.

 

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B.           Repurchase
of Shares. In the event the General Partner exercises its rights under the Articles of Incorporation to purchase Shares or
otherwise elects to purchase from its stockholders Shares in connection with a stock repurchase or similar program or for the purpose
of delivering such shares to satisfy an obligation under any dividend reinvestment or stock purchase program adopted by the General
Partner, any employee stock purchase plan adopted by the General Partner or any similar obligation or arrangement undertaken by
the General Partner in the future, then the General Partner shall cause the Partnership to purchase from the General Partner that
number of Partnership Units of the appropriate class equal to the product obtained by multiplying the number of Shares purchased
by the General Partner times a fraction, the numerator of which is one and the denominator of which is the Conversion Factor, on
the same terms and for the same aggregate price that the General Partner purchased such Shares.

 

C.           Forfeiture
of Shares. In the event the Partnership or the General Partner acquires Shares as a result of the forfeiture of such Shares
under a restricted or similar share plan, then the General Partner shall cause the Partnership to cancel that number of Partnership
Units of the appropriate class equal to the number of Shares so acquired divided by the Conversion Factor, and, if the Partnership
acquired such Shares, it shall transfer such Shares to the General Partner for cancellation.

 

D.           Issuances
of Shares. After the Effective Date, the General Partner shall not grant, award, or issue any additional Shares (other than
Shares issued pursuant to Section 8.06 hereof or pursuant to a dividend or distribution (including any stock split) of Shares to
all of its stockholders), other equity securities of the General Partner or New Securities unless (i) the General Partner shall
cause, pursuant to Section 4.02.A hereof, the Partnership to issue to the General Partner Partnership Interests or rights, options,
warrants or securities of the Partnership having designations, preferences and other rights, all such that the economic interests
arc substantially the same as those of such additional Shares, other equity securities or New Securities, as the case may be, and
(ii) the General Partner transfers to the Partnership, as an additional Capital Contribution, the proceeds from the grant, award,
or issuance of such additional Shares, other equity securities or New Securities, as the case may be, or from the exercise of rights
contained in such additional Shares, other equity securities or New Securities, as the case may be. Without limiting the foregoing,
the General Partner is expressly authorized to issue additional Shares, other equity securities or New Securities, as the case
maybe, for less than fair market value, and the General Partner is expressly authorized, pursuant to Section 4.02.A hereof, to
cause the Partnership to issue to the General Partner corresponding Partnership Interests, as long as (a) the General Partner concludes
in good faith that such issuance is in the interests of the General Partner and the Partnership (for example, and not by way of
limitation, the issuance of Shares and corresponding Partnership Units pursuant to a stock purchase plan providing for purchases
of Shares, either by employees or stockholders, at a discount from fair market value or pursuant to employee stock options that
have an exercise price that is less than the fair market value of the Shares, either at the time of issuance or at the time of
exercise) and (b) the General Partner transfers all proceeds from any such issuance or exercise to the Partnership as an additional
Capital Contribution.

 

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E.           Stock
Option Plan. If at any time or from time to time, the General Partner sells Shares pursuant to any Stock Option Plan, the General
Partner shall transfer the net proceeds of the sale of such Shares to the Partnership as an additional Capital Contribution in
exchange for an amount of additional Partnership Units equal to the number of Shares so sold divided by the Conversion Factor.

 

F.           Funding
Debt. The General Partner may incur a Funding Debt, including, without limitation, a Funding Debt that is convertible into
Shares or otherwise constitutes a class of New Securities, subject to the condition that the General Partner lends to the Partnership
the net proceeds of such Funding Debt; provided, that the General Partner shall not be obligated to lend the net proceeds
of any Funding Debt to the Partnership in a manner that would be inconsistent with the General Partner’s ability to remain
qualified as a REIT. If the General Partner enters into any Funding Debt, the loan to the Partnership shall be on comparable terms
and conditions, including interest rate, repayment schedule and costs and expenses, as are applicable with respect to or incurred
in connection with such Funding Debt.

 

Section 7.06.         Transactions
with Affiliates

 

A.           Transactions
with Certain Affiliates. Except as expressly permitted by this Agreement (other than Section 7.01.A hereof which shall not
be considered authority for a transaction that otherwise would be prohibited by this Section 7.06.A), the Partnership shall not,
directly or indirectly, sell, transfer or convey any property to, or purchase any property from, or borrow funds from, or lend
funds to, any Partner or any Affiliate of the Partnership or the General Partner or the General Partner Entity that is not also
a Subsidiary of the Partnership, except pursuant to transactions that are on terms that are fair and reasonable and no less favorable
to the Partnership than would be obtained from an unaffiliated third party.

 

B.           Benefit
Plans. The General Partner, in its sole and absolute discretion and without the approval of the Limited Partners, may propose
and adopt on behalf of the Partnership employee benefit plans funded by the Partnership for the benefit of employees of the General
Partner, the Partnership, Subsidiaries of the Partnership or any Affiliate of any of them in respect of services performed, directly
or indirectly, for the benefit of the Partnership, the General Partner, or any of the Partnership’s Subsidiaries.

 

C.           Conflict
Avoidance. The General Partner is expressly authorized to enter into, in the name and on behalf of the Partnership, a right
of first opportunity arrangement and other conflict avoidance agreements with various Affiliates of the Partnership and General
Partner on such terms as the General Partner, in its sole and absolute discretion, believes are advisable.

 

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Section 7.07.         Indemnification

 

A.           General.
The Partnership shall indemnify each Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several,
expenses (including, without limitation, attorneys fees and other legal fees and expenses), judgments, fines, settlements and other
amounts arising from or in connection with any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative
or investigative incurred by the Indemnitee and relating to the Partnership or the General Partner or the formation or operations
of, or the ownership of property by, either of them as set forth in this Agreement in which any such Indemnitee may be involved,
or is threatened to be involved, as a party or otherwise, unless it is established by a final determination of a court of competent
jurisdiction that: (i) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding and either
was committed in bad faith or was the result of active and deliberate dishonesty, (ii) the Indemnitee actually received an improper
personal benefit in money, property or services or (iii) in the case of any criminal proceeding, the Indemnitee had reasonable
cause to believe that the act or omission was unlawful. Without limitation, the foregoing indemnity shall extend to any liability
of any Indemnitee, pursuant to a loan guarantee, contractual obligations for any indebtedness or other obligations or otherwise,
for any indebtedness of the Partnership or any Subsidiary of the Partnership (including, without limitation, any indebtedness which
the Partnership or any Subsidiary of the Partnership has assumed or taken subject to), and the General Partner is hereby authorized
and empowered, on behalf of the Partnership, to enter into one or more indemnity agreements consistent with the provisions of this
Section 7.07 in favor of any Indemnitee having or potentially having liability for any such indebtedness. The termination of any
proceeding by judgment, order or settlement does not create a presumption that the Indemnitee did not meet the requisite standard
of conduct set forth in this Section 7.07.A. The termination of any proceeding by conviction or upon a plea of nolo contendere
or its equivalent, or an entry of an order of probation prior to judgment, creates a rebuttable presumption that the Indemnitee
acted in a manner contrary to that specified in this Section 7.07.A with respect to the subject matter of such proceeding. Any
indemnification pursuant to this Section 7.07 shall be made only out of the assets of the Partnership, and any insurance proceeds
from the liability policy covering the General Partner and any Indemnitees, and neither the General Partner nor any Limited Partner
shall have any obligation to contribute to the capital of the Partnership or otherwise provide funds to enable the Partnership
to fund its obligations under this Section 7.07.

 

B.           Advancement
of Expenses. Reasonable expenses expected to be incurred by an Indemnitee shall be paid or reimbursed by the Partnership in
advance of the final disposition of any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative
or investigative made or threatened against an Indemnitee upon receipt by the Partnership of (i) a written affirmation by the Indemnitee
of the Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized
in this Section 7.07.B has been met and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it
shall ultimately be determined that the standard of conduct has not been met.

 

C.           No
Limitation of Rights. The indemnification provided by this Section 7.07 shall be in addition to any other rights to which an
Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or
otherwise, and shall continue as to an Indemnitee who has ceased to serve in such capacity unless otherwise provided in a written
agreement pursuant to which such Indemnitee is indemnified.

 

D.           Insurance.
The Partnership may purchase and maintain insurance on behalf of the Indemnitees and such other Persons as the General Partner
shall determine against any liability that may be asserted against or expenses that may be incurred by such Person in connection
with the Partnership’s activities, regardless of whether the Partnership would have the power to indemnify such Person against
such liability under the provisions of this Agreement.

 

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E.           Benefit
Plan Fiduciary. For purposes of this Section 7.07, (i) the Partnership shall be deemed to have requested an Indemnitee to serve
as fiduciary of an employee benefit plan whenever the performance by it of its duties to the Partnership also imposes duties on,
or otherwise involves services by, it to the plan or participants or beneficiaries of the plan, (ii) excise taxes assessed on an
Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this
Section 7.07 and (iii) actions taken or omitted by the Indemnitee with respect to an employee benefit plan in the performance of
its duties for a purpose reasonably believed by it to be in the interest of the participants and beneficiaries of the plan shall
be deemed to be for a purpose which is not opposed to the best interests of the Partnership.

 

F.           No
Personal Liability for Limited Partners. In no event may an Indemnitee subject any of the Partners to personal liability by
reason of the indemnification provisions set forth in this Agreement.

 

G.           Interested
Transactions. An Indemnitee shall not be denied indemnification in whole or in part under this Section 7.07 because the Indemnitee
had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted
by the terms of this Agreement.

 

H.           Benefit.
The provisions of this Section 7.07 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators
and shall not be deemed to create any rights for the benefit of any other Persons. Any amendment, modification or repeal of this
Section 7.07, or any provision hereof, shall be prospective only and shall not in any way affect the limitation on the Partnership’s
liability to any Indemnitee under this Section 7.07 as in effect immediately prior to such amendment, modification or repeal with
respect to claims arising from or related to matters occurring, in whole or in part, prior to such amendment, modification or repeal,
regardless of when such claims may arise or be asserted.

 

I.           Indemnification
Payments Not Distributions. If and to the extent any payments to the General Partner pursuant to this Section 7.07 constitute
gross income to the General Partner (as opposed to the repayment of advances made on behalf of the Partnership), such amounts shall
constitute guaranteed payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the
Partnership and all Partners, and shall not be treated as distributions for purposes of computing the Partners’ Capital Accounts.

 

Section 7.08.         Liability
of the General Partner

 

A.           General.
Notwithstanding anything to the contrary set forth in this Agreement, the General Partner and its directors and officers shall
not be liable for monetary damages to the Partnership, any Partners or any Assignees for losses sustained, liabilities incurred
or benefits not derived as a result of errors in judgment or mistaken of fact or law or of any act or omission if the General Partner
or its directors and officers acted in good faith.

 

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B.           No
Obligation to Consider Separate Interests of Limited Partners or Stockholders. The Limited Partners expressly acknowledge that
the General Partner is acting on behalf of the Partnership and the General Partner’s stockholders collectively, that the
General Partner is under no obligation to consider the separate interests of the Limited Partners (including, without limitation,
the tax consequences to Limited Partners or Assignees or to such stockholders) in deciding whether to cause the Partnership to
take (or decline to take) any actions. An the event of a conflict between the interests of the stockholders of the General Partner
Entity on one hand and the Limited Partners on the other, the General Partner shall endeavor in good faith to resolve the conflict
in a manner not adverse to either the stockholders of the General Partner Entity or the Limited Partners; provided, however,
that for so long as the General Partner Entity, directly, or the General Partner, owns a controlling interest in the Partnership,
any such conflict that cannot be resolved in a manner not adverse to either the stockholders of the General Partner Entity or the
Limited Partners shall be resolved in favor of the stockholders. The General Partner shall not be liable for monetary damages or
otherwise for losses sustained, liabilities incurred or benefits not derived by Limited Partners in connection with such decisions,
provided that the General Partner has acted in good faith.

 

C.           Actions
of Agents. Subject to its obligations and duties as General Partner set forth in Section 7.01.A above, the General Partner
may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly
or by or through its employees or agents. The General Partner shall not be responsible for any misconduct or negligence on the
part of any such employee or agent appointed by the General Partner in good faith.

 

D.           Effect
of Amendment. Any amendment, modification or repeal of this Section 7.08 or any provision hereof shall be prospective only
and shall not in any way affect the limitations on the General Partner’s liability to the Partnership and the Limited Partners
under this Section 7.08 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising
from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when
such claims may arise or be asserted.

 

E.           Certain
Definitions. Whenever in this Agreement the General Partner is permitted or required to make a decision (i) in its “sole
discretion” or “discretion,” or under a similar grant of authority or latitude, the General Partner shall be
entitled to consider such interests and factors as it desires and may consider its own interests, and shall have no duty or obligation
to give any consideration to any interest of or factors affecting the Partnership or the Limited Partners, or (ii) in its “good
faith” or under another express standard, the General Partner shall act under such express standard and shall not be subject
to any other or different standards imposed by this Agreement or by law or any other agreement contemplated herein.

 

Section 7.09.         Other
Matters Concerning the General Partner

 

A.           Reliance
on Documents. The General Partner may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture or other paper or document
believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties.

 

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B.           Reliance
on Advisors. The General Partner may consult with legal counsel, accountants, appraisers, management consultants, investment
bankers and other consultants and advisors selected by it, and any act taken or omitted to be taken in reliance upon the opinion
of such Persons as to matters which the General Partner reasonably believes to be within such Person’s professional or expert
competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion.

 

C.           Action
Through Agents. The General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act
through any of its duly authorized officers and a duly appointed attorney or attorneys-in-fact. Each such attorney shall, to the
extent provided by the General Partner in the power of attorney, have full power and authority to do and perform all and every
act and duty which is permitted or required to be done by the General Partner hereunder.

 

D.           Actions
to Maintain REIT Status or Avoid Taxation of the General Partner Entity. Notwithstanding any other provisions of this Agreement
or the Act, any action of the General Partner on behalf of the Partnership or any decision of the General Partner to refrain from
acting on behalf of the Partnership undertaken in the good faith belief that such action or omission is necessary or advisable
in order (i) to protect the ability of the General Partner Entity to continue to qualify as a REIT or (ii) to allow the General
Partner Entity to avoid incurring any liability for taxes under Section 857 or 4981 of the Code, is expressly authorized under
this Agreement and is deemed approved by all of the Limited Partners.

 

Section 7.10.         Reliance
by Third Parties

 

Notwithstanding anything
to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled to assume that the General Partner
has full power and authority, without consent or approval of any other Partner or Person, to encumber, sell or otherwise use in
any manner any and all assets of the Partnership, to enter into any contracts on behalf of the Partnership and to take any and
all actions on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner as if the General
Partner were the Partnership’s sole party in interest, both legally and beneficially. Each Limited Partner hereby waives
any and all defenses or other remedies which may be available against such Person to contest, negate or disaffirm any action of
the General Partner in connection with any such dealing. In no event shall any Person dealing with the General Partner or its representatives
be obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience
of any act or action of the General Partner or its representatives. Each and every certificate, document or other instrument executed
on behalf of the Partnership by the General Partner or its representatives shall be conclusive evidence in favor of any and every
Person relying thereon or claiming thereunder that (i) at the time of the execution and delivery of such certificate, document
or instrument, this Agreement was in full force and effect, (ii) the Person executing and delivering such certificate, document
or instrument was duly authorized and empowered to do so for and on behalf of the Partnership, and (iii) such certificate, document
or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon
the Partnership.

 

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Section 7.11.         Restrictions
on General Partner’s Authority

 

A.           Consent
Required. The General Partner may not take any action in contravention of an express prohibition or limitation of this Agreement
without the written Consent of (i) all Partners adversely affected or (ii) such lower percentage of the Limited Partner Interests
as may be specifically provided for under a provision of this Agreement or the Act.

 

B.           Sale
of All Assets of the Partnership. Except as provided in Article XIII hereof, the General Partner may not, directly or indirectly,
cause the Partnership to sell, exchange, transfer or otherwise dispose of all or substantially all of the Partnership’s assets
in a single transaction or a series of related transactions (including by way of merger (including a triangular merger), consolidation
or other combination with any other Persons) (i) if such merger, sale or other transaction is in connection with a Termination
Transaction permitted under Section 11.02.B hereof, without the Consent of the Partners holding a majority of Percentage Interests
(including the effect of any Partnership Units held by the General Partner) or (ii) otherwise, without the Consent of the Limited
Partners.

 

Section 7.12.         Loans
by Third Parties

 

The Partnership may
incur Debt, or enter into similar credit, guarantee, financing or refinancing arrangements for any purpose (including, without
limitation, in connection with any acquisition of property or other assets) with any Person that is not the General Partner upon
such terms as the General Partner determines appropriate; provided that, the Partnership shall not incur any Debt that is
recourse to the General Partner, except to the extent otherwise agreed to by the General Partner in its sole discretion.

 

ARTICLE
VIII

 

RIGHTS AND OBLIGATIONS
OF LIMITED PARTNERS

 

Section 8.01.         Limitation
of Liability

 

The Limited Partners
shall have no liability under this Agreement except as expressly provided in this Agreement, including Section 10.05 hereof, or
under the Act.

 

Section 8.02.         Management
of Business

 

No Limited Partner
or Assignee (other than the General Partner, any of its Affiliates or any officer, director, employee, partner, agent or trustee
of the General Partner, the Partnership or any of their Affiliates, in their capacity as such) shall take part in the operation,
management or control (within the meaning of the Act) of the Partnership’s business, transact any business in the Partnership’s
name or have the power to sign documents for or otherwise bind the Partnership. The transaction of any such business by the General
Partner, any of its Affiliates or any officer, director, employee, partner, agent or trustee of the General Partner, the Partnership
or any of their Affiliates, in their capacity as such, shall not affect, impair or eliminate the limitations on the liability of
the Limited Partners or Assignees under this Agreement.

 

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Section 8.03.         Outside
Activities of Limited Partners

 

Subject to Section
7.05 hereof, and subject to any agreements entered into pursuant to Section 7.06.C hereof and to any other agreements entered into
by a Limited Partner or its Affiliates with the Partnership or a Subsidiary, any Limited Partner (other than the General Partner)
and any officer, director, employee, agent, trustee, Affiliate or stockholder of any Limited Partner shall be entitled to and may
have business interests and engage in business activities in addition to those relating to the Partnership, including business
interests and activities in direct or indirect competition with the Partnership. Neither the Partnership nor any Partners shall
have any rights by virtue of this Agreement in any business ventures of any Limited Partner or Assignee. None of the Limited Partners
(other than the General Partner) nor any other Person shall have any rights by virtue of this Agreement or the partnership relationship
established hereby in any business ventures of any other Person (other than the General Partner to the extent expressly provided
herein), and such Person shall have no obligation pursuant to this Agreement to offer any interest in any such business ventures
to the Partnership, any Limited Partner or any such other Person, even if such opportunity is of a character which, if presented
to the Partnership, any Limited Partner or such other Person, could be taken by such Person.

 

Section 8.04.         Return
of Capital

 

Except pursuant to
the right of redemption set forth in Section 8.06 below, no Limited Partner shall be entitled to the withdrawal or return of its
Capital Contribution, except to the extent of distributions made pursuant to this Agreement or upon termination of the Partnership
as provided herein. No Limited Partner or Assignee shall have priority over any other Limited Partner or Assignee either as to
the return of Capital Contributions (except as permitted by Section 4.02.A hereof) or, except to the extent provided by Exhibit
C hereto or as permitted by Sections 4.02.A, 5.01.B, 6.01.A (ii) and 6.01.B(i) hereof or otherwise expressly provided in this
Agreement, as to profits, losses, distributions or credits.

 

Section 8.05.         Rights
of Limited Partners Relating to the Partnership

 

A.           General.
In addition to other rights provided by this Agreement or by the Act, and except as limited by 8.05.D below, each Limited Partner
shall have the right, for a purpose reasonably related to such Limited Partner’s interest as a limited partner in the Partnership,
upon written demand with a statement of the purpose of such demand and at such Limited Partner’s own expense:

 

(1)         to
obtain a copy of the most recent annual and quarterly reports filed with the Securities and Exchange Commission by the General
Partner Entity pursuant to the Exchange Act;

 

(2)         to
obtain a copy of the Partnership’s federal, state and local income tax returns for each Partnership Year,

 

(3)         to
obtain a current list of the name and last known business, residence or mailing address of each Partner,

 

(4)         to
obtain a copy of this Agreement and the Certificate and all amendments thereto, together with executed copies of all powers of
attorney pursuant to which this Agreement, the Certificate and all amendments thereto have been executed; and

 

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(5)         to
obtain true and full information regarding the amount of cash and a description and statement of any other property or services
contributed by each Partner and which each Partner has agreed to contribute in the future, and the date on which each became a
Partner.

 

B.           Notice
of Conversion Factor. The Partnership shall notify each Limited Partner upon request of the then current Conversion Factor
and any changes that have been made thereto.

 

C.           Notice
of Extraordinary Transaction of the General Partner Entity. The General Partner Entity shall not make any extraordinary distributions
of cash or property to its stockholders or effect a merger (including without limitation, a triangular merger), a sale of all or
substantially all of its assets or any other similar extraordinary transaction without notifying the Limited Partners of its intention
to make such distribution or effect such merger, sale or other extraordinary transaction at least twenty (20) Business Days prior
to the record date to determine stockholders eligible to receive such distribution or to vote upon the approval of such merger,
sale or other extraordinary transaction (or, if no such record date is applicable, at least twenty (20) Business Days before consummation
of such merger, sale or other extraordinary transaction). This provision for such notice shall not be deemed (i) to permit any
transaction that otherwise is prohibited by this Agreement or requires a Consent of the Partners or (ii) to require a Consent of
the Limited Partners to a transaction that does not otherwise require Consent under this Agreement. Each Limited Partner agrees,
as a condition to the receipt of the notice pursuant hereto, to keep confidential the information set forth therein until such
time as the General Partner Entity has made public disclosure thereof and to use such information during such period of confidentiality
solely for purposes of determining whether or not to exercise the Redemption Right; provided, however, that a Limited
Partner may disclose such information to its attorney, accountant and/or financial advisor for purposes of obtaining advice with
respect to such exercise so long as such attorney, accountant and/or financial advisor agrees to receive and hold such information
subject to this confidentiality requirement.

 

D.           Confidentiality.
Notwithstanding any other provision of this Section 8.05, the General Partner may keep confidential from the Limited Partners,
for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information
that (i) the General Partner reasonably believes to be in the nature of trade secrets or other information the disclosure of which
the General Partner in good faith believes is not in the best interests of the Partnership or could damage the Partnership or its
business or (ii) the Partnership is required by law or by agreements with unaffiliated third parties to keep confidential.

 

Section 8.06.         Class
A Redemption Right

 

A.           General.
(i) Subject to Section 8.06.C below, on or after the date two (2) years after the issuance of a Class A Unit to a Limited Partner
pursuant to Article IV hereof, the holder of a Class A Unit (if other than the General Partner or the General Partner Entity) shall
have the right (the “Redemption Right”) to require the Partnership to redeem such Class A Unit on a Specified
Redemption Date and at a redemption price equal to and in the form of the Cash Amount to be paid by the Partnership. Any such Redemption
Right shall be exercised pursuant to a Notice of Redemption delivered to the Partnership (with a copy to the General Partner) by
the Limited Partner who is exercising the Redemption Right (the “Redeeming Partner”). A Limited Partner may
not exercise the Redemption Right for less than one thousand (1,000) Class A Units or, if such Redeeming Partner holds less than
one thousand (1,000) Class A Units, for less than all of the Class A Units held by such Redeeming Partner.

 

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(ii)         The
Redeeming Partner shall have no right with respect to any Class A Units so redeemed to receive any distributions paid after the
Specified Redemption Date.

 

(iii)        The
Assignee of any Limited Partner may exercise the rights of such Limited Partner pursuant to this Section 8.06 and such Limited
Partner shall be deemed to have assigned such rights to such Assignee and shall be bound by the exercise of such rights by such
Limited Partner’s Assignee. In connection with any exercise of such rights by such Assignee on behalf of such Limited Partner,
the Cash Amount shall be paid by the Partnership directly to such Assignee and not to such Limited Partner.

 

(iv)        Notwithstanding
the foregoing, the Redemption Right shall not be exercisable with respect to any Class A Unit issued upon conversion of an LTIP
Unit until on or after the date that is two years after the date on which the LTIP Unit was issued, provided however, that the
foregoing restriction shall not apply if the Redemption Right is exercised by a LTIP Unit holder in connection with a transaction
that falls within the definition of a “change of control” under the agreement or agreements pursuant to which the LTIP
Units were issued to him or her and provided further that the two (2) year requirement set forth in the first sentence of Section
8.06.A(i) shall not apply with respect to Class A Units issued upon conversion of LTIP Units.

 

B.           General
Partner Assumption of Right. (i) If a Limited Partner has delivered a Notice of Redemption, the General Partner may, in its
sole and absolute discretion (subject to any limitations on ownership and transfer of Shares set forth in the Articles of Incorporation),
elect to assume directly and satisfy a Redemption Right by paying to the Redeeming Partner either the Cash Amount or the Shares
Amount, as the General Partner determines in its sole and absolute discretion (provided that payment of the Redemption Amount
in the form of Shares shall be in Shares registered under Section 12 of the Exchange Act and listed for trading on the exchange
or national market on which the Shares are Publicly Traded, and provided, further that, in the event that the Shares
are not Publicly Traded at the time a Redeeming Partner exercises its Redemption Right, the Redemption Amount shall be paid only
in the form of the Cash Amount unless the Redeeming Partner, in its sole and absolute discretion, consents to payment of the Redemption
Amount in the form of the Shares Amount), on the Specified Redemption Date, whereupon the General Partner shall acquire the Class
A Units offered for redemption by the Redeeming Partner and shall be treated for all purposes of this Agreement as the owner of
such Partnership Units. Unless the General Partner, in its sole and absolute discretion, shall exercise its right to assume directly
and satisfy the Redemption Right, the General Partner shall not have any obligation to the Redeeming Partner or to the Partnership
with respect to the Redeeming Partner’s exercise of the Redemption Right. In the event the General Partner shall exercise
its right to satisfy the Redemption Right in the manner described in the first sentence of this Section 8.06.B and shall fully
perform its obligations in connection therewith, the Partnership shall have no right or obligation to pay any amount to the Redeeming
Partner with respect to such Redeeming Partner’s exercise of the Redemption Right, and each of the Redeeming Partner, the
Partnership and the General Partner shall, for federal income tax purposes, treat the transaction between the General Partner and
the Redeeming Partner as a sale of the Redeeming Partner’s Partnership Units to the General Partner. Nothing contained in
this Section 8.06.B shall imply any right of the General Partner to require any Limited Partner to exercise the Redemption Right
afforded to such Limited Partner pursuant to Section 8.06.A above.

 

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(ii)         In
the event that the General Partner determines to pay the Redeeming Partner the Redemption Amount in the form of Shares, the total
number of Shares to be paid to the Redeeming Partner in exchange for the Redeeming Partner’s Partnership Units shall be the
applicable Shares Amount. In the event this amount is not a whole number of Shares, the Redeeming Partner shall be paid (i) that
number of Shares which equals the nearest whole number less than such amount plus (ii) an amount of cash which the General Partner
determines, in its reasonable discretion, to represent the fair value of the remaining fractional Share which would otherwise be
payable to the Redeeming Partner.

 

(iii)        Each
Redeeming Partner agrees to execute such documents as the General Partner may reasonably require in connection with the issuance
of Shares upon exercise of the Redemption Right.

 

C.           Exceptions
to Exercise of Redemption Right. Notwithstanding the provisions of Sections 8.06.A and 8.06.B above, a Partner shall not be
entitled to exercise the Redemption Right pursuant to Section 8.06.A above if (but only as long as) the delivery of Shares to such
Partner on the Specified Redemption Date (i) would be prohibited under the Articles of Incorporation or (ii) as long as the Shares
are Publicly Traded, would be prohibited under applicable federal or state securities laws or regulations (in each case regardless
of whether the General Partner would in fact assume and satisfy the Redemption Right).

 

D.           No
Liens on Partnership Units Delivered for Redemption. Each Limited Partner covenants and agrees with the General Partner that
all Partnership Units delivered for redemption shall be delivered to the Partnership or the General Partner, as the case may be,
free and clear of all liens, and, notwithstanding anything contained herein to the contrary, neither the General Partner nor the
Partnership shall be under any obligation to acquire Partnership Units which are or may be subject to any liens. Each Limited Partner
further agrees that, in the event any state or local property transfer tax is payable as a result of the transfer of its Partnership
Units to the Partnership or the General Partner, such Limited Partner shall assume and pay such transfer tax.

 

E.           Additional
Partnership Interests. In the event that the Partnership issues Partnership Interests to any Additional Limited Partner pursuant
to Article IV hereof, the General Partner shall make such amendments to this Section 8.06 as it determines are necessary to reflect
the issuance of such Partnership Interests (including setting forth any restrictions on the exercise of the Redemption Right with
respect to such Partnership Interests).

 

Section 8.07.         Redemption
of 8.125% Series A Cumulative Redeemable Preferred Units.

 

Holders of 8.125% Series
A Cumulative Redeemable Preferred Units shall not be entitled to the Redemption Right provided for in Section 8.06.A of this Agreement.

 

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ARTICLE
IX

 

BOOKS, RECORDS, ACCOUNTING
AND REPORTS

 

Section 9.01.         Records
and Accounting

 

The General Partner
shall keep or cause to be kept at the principal office of the Partnership appropriate books and records with respect to the Partnership’s
business, including, without limitation, all books and records necessary to provide to the Limited Partners any information, lists
and copies of documents required to be provided pursuant to Section 9.03 below. Any records maintained by or on behalf of the Partnership
in the regular course of its business may be kept on, or be in the form of, punch cards, magnetic tape, photographs, micrographics
or any other information storage device, provided that the records so maintained are convertible into clearly legible written
form within a reasonable period of time. The books of the Partnership shall be maintained, for financial and tax reporting purposes,
on an accrual basis in accordance with generally accepted accounting principles.

 

Section 9.02.         Fiscal
Year

 

The fiscal year of
the Partnership shall be the calendar year.

 

Section 9.03.         Reports

 

A.           Annual
Reports. As soon as practicable, but in no event later than the date on which the General Partner Entity mails its annual report
to its stockholders, the General Partner shall cause to be mailed to each Limited Partner an annual report, as of the close of
the most recently ended Partnership Year, containing financial statements of the Partnership, or of the General Partner Entity
if such statements are prepared solely on a consolidated basis with the Partnership, for such Partnership Year, presented in accordance
with generally accepted accounting principles, such statements to be audited by a nationally recognized firm of independent public
accountants selected by the General Partner Entity.

 

B.           Quarterly
Reports. If and to the extent that the General Partner Entity mails quarterly reports to its stockholders, as soon as practicable,
but in no event later than the date on which such reports are mailed, the General Partner shall cause to be mailed to each Limited
Partner a report containing unaudited financial statements, as of the last day of such calendar quarter, of the Partnership, or
of the General Partner Entity if such statements are prepared solely on a consolidated basis with the Partnership, and such other
information as may be required by applicable law or regulation, or as the General Partner determines to be appropriate.

 

ARTICLE
X

 

TAX MATTERS

 

Section 10.01.         Preparation
of Tax Returns

 

The General Partner
shall arrange for the preparation and timely filing of all returns of Partnership income, gains, deductions, losses and other items
required of the Partnership for federal and state income tax purposes and shall use all reasonable efforts to furnish, within ninety
(90) days of the close of each taxable year, the tax information reasonably required by Limited Partners for federal and state
income tax reporting purposes.

 

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Section 10.02.         Tax
Elections

 

A.           Except
as otherwise provided herein, the General Partner shall, in its sole and absolute discretion, determine whether to make any available
election pursuant to the Code. The General Partner shall have the right to seek to revoke any such election (including, without
limitation, an election under Section 754 of the Code) upon the General Partner’s determination in its sole and absolute
discretion that such revocation is in the best interests of the Partners.

 

B.           To
the extent provided for in Treasury Regulations, revenue rulings, revenue procedures and/or other IRS guidance issued after the
date hereof, the Partnership is hereby authorized to, and at the direction of the General Partner shall, elect a safe harbor under
which the fair market value of any Partnership Interests issued after the effective date of such Treasury Regulations (or other
guidance) will be treated as equal to the liquidation value of such Partnership Interests (i.e., a value equal to the total amount
that would be distributed with respect to such interests if the Partnership sold all of its assets for their fair market value
immediately after the issuance of such Partnership Interests, satisfied its liabilities (excluding any non-recourse liabilities
to the extent the balance of such liabilities exceeds the fair market value of the assets that secure them) and distributed the
net proceeds to the Partners under the terms of this Agreement). In the event that the Partnership makes a safe harbor election
as described in the preceding sentence, each Partner hereby agrees to comply with all safe harbor requirements with respect to
transfers of such Partnership Interests while the safe harbor election remains effective.

 

Section 10.03.         Tax
Matters Partner

 

A.           General.
The General Partner shall be the “tax matters partner” of the Partnership for federal income tax purposes. Pursuant
to Section 6223(c)(3) of the Code, upon receipt of notice from the IRS of the beginning of an administrative proceeding with respect
to the Partnership, the tax matters partner shall furnish the IRS with the name, address, taxpayer identification number and profit
interest of each of the Limited Partners and any Assignees; provided, however, that such information is provided
to the Partnership by the Limited Partners.

 

B.           Powers.
The tax matters partner is authorized, but not required:

 

(1)         to
enter into any settlement with the IRS with respect to any administrative or judicial proceedings for the adjustment of Partnership
items required to be taken into account by a Partner for income tax purposes (such administrative proceedings being referred to
as a “tax audit” and such judicial proceedings being referred to as “judicial review”), and in the settlement
agreement the tax matters partner may expressly state that such agreement shall bind all Partners, except that such settlement
agreement shall not bind any Partner (i) who (within the time prescribed pursuant to the Code and Regulations) files a statement
with the IRS providing that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf
of such Partner or (ii) who is a “notice partner” (as defined in Section 6231(a)(8) of the Code) or a member of a “notice
group” (as defined in Section 6223(b)(2) of the Code);

 

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(2)         in
the event that a notice of a final administrative adjustment at the Partnership level of any item required to be taken into account
by a Partner for tax purposes (a “final adjustment”) is mailed to the tax matters partner, to seek judicial
review of such final adjustment, including the filing of a petition for readjustment with the Tax Court or the filing of a complaint
for refund with the United States Claims Court or the District Court of the United States for the district in which the Partnership’s
principal place of business is located;

 

(3)         to
intervene in any action brought by any other Partner for judicial review of a final adjustment;

 

(4)         to
file a request for an administrative adjustment with the IRS at any time and, if any part of such request is not allowed by the
IRS, to file an appropriate pleading (petition or complaint) for judicial review with respect to such request;

 

(5)         to
enter into an agreement with the IRS to extend the period for assessing any tax which is attributable to any item required to be
taken into account by a Partner for tax purposes, or an item affected by such item; and

 

(6)         to
take any other action on behalf of the Partners of the Partnership in connection with any tax audit or judicial review proceeding
to the extent permitted by applicable law or regulations.

 

The taking of any action
and the incurring of any expense by the tax matters partner in connection with any such proceeding, except to the extent required
by law, is a matter in the sole and absolute discretion of the tax matters partner and the provisions relating to indemnification
of the General Partner set forth in Section 7.07 hereof shall be fully applicable to the tax matters partner in its capacity as
such.

 

C.           Reimbursement.
The tax matters partner shall receive no compensation for its services. All third party costs and expenses incurred by the tax
matters partner in performing its duties as such (including legal and accounting fees and expenses) shall be borne by the Partnership.
Nothing herein shall be construed to restrict the Partnership from engaging an accounting firm or a law firm to assist the tax
matters partner in discharging its duties hereunder.

 

Section 10.04.         Organizational
Expenses

 

The Partnership shall
elect to deduct expenses, if any, incurred by it in organizing the Partnership ratably over a sixty (60) month period as provided
in Section 709 of the Code.

 

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Section 10.05.         Withholding

 

Each Limited Partner
hereby authorizes the Partnership to withhold from or pay on behalf of or with respect to such Limited Partner any amount of federal,
state, local, or foreign taxes that the General Partner determines that the Partnership is required to withhold or pay with respect
to any amount distributable or allocable to such Limited Partner pursuant to this Agreement, including, without limitation, any
taxes required to be withheld or paid by the Partnership pursuant to Section 1441, 1442, 1445, or 1446 of the Code. Any amount
paid on behalf of or with respect to a Limited Partner shall constitute a recourse loan by the Partnership to such Limited Partner,
which loan shall be repaid by such Limited Partner within fifteen (15) days after notice from the General Partner that such payment
must be made unless (i) the Partnership withholds such payment from a distribution which would otherwise be made to the Limited
Partner or (ii) the General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of
the available funds of the Partnership which would, but for such payment, be distributed to the Limited Partner. Any amounts withheld
pursuant to the foregoing clauses (i) or (ii) shall be treated as having been distributed to such Limited Partner. Each Limited
Partner hereby unconditionally and irrevocably grants to the Partnership a security interest in such Limited Partner’s Partnership
Interest to secure such Limited Partner’s obligation to pay to the Partnership any amounts required to be paid pursuant to
this Section 10.05. In the event that a Limited Partner fails to pay any amounts owed to the Partnership pursuant to this Section
10.05 when due, the General Partner may, in its sole and absolute discretion, elect to make the payment to the Partnership on behalf
of such defaulting Limited Partner, and in such event shall be deemed to have loaned such amount to such defaulting Limited Partner
and shall succeed to all rights and remedies of the Partnership as against such defaulting Limited Partner (including, without
limitation, the right to receive distributions). Any amounts payable by a Limited Partner hereunder shall bear interest at the
base rate on corporate loans at large United States money center commercial banks, as published from time to time in the Wall Street
Journal, plus four (4) percentage points (but not higher than the maximum lawful rate) from the date such amount is due (i.e.,
fifteen (15) days after demand) until such amount is paid in full. Each Limited Partner shall take such actions as the Partnership
or the General Partner shall request in order to perfect or enforce the security interest created hereunder.

 

ARTICLE
XI

 

TRANSFERS AND WITHDRAWALS

 

Section 11.01.         Transfer

 

A.           Definition.
The term “transfer,” when used in this Article XI with respect to a Partnership Interest or a Partnership Unit, shall
be deemed to refer to a transaction by which the General Partner purports to assign all or any part of its General Partnership
Interest to another Person or by which a Limited Partner purports to assign all or any part of its Limited Partner Interest to
another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any other disposition
by law or otherwise. The term “transfer” when used in this Article XI does not include any redemption or repurchase
of Partnership Units by the Partnership from a Partner (including the General Partner), acquisition of Partnership Units from a
Limited Partner by the General Partner pursuant to Section 8.06 hereof or otherwise or any conversion of LTIP Units into Class
A Units. No part of the interest of a Limited Partner shall be subject to the claims of any creditor, any spouse for alimony or
support, or to legal process, and may not be voluntarily or involuntarily alienated or encumbered except as may be specifically
provided for in this Agreement.

 

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B.           General.
No Partnership Interest shall be transferred, in whole or in part, except in accordance with the terms and conditions set forth
in this Article XI. Any transfer or purported transfer of a Partnership Interest not made in accordance with this Article XI shall
be null and void.

 

Section 11.02.         Transfers
of Partnership Interests of General Partner

 

A.           Except
for transfers of Partnership Units to the Partnership as provided in Section 7.05 or Section 8.06 hereof, the General Partner may
not transfer any of its Partnership Interest except (i) in connection with a transaction described in Section 11.02.B below (ii)
to a wholly-owned Subsidiary or (iii) as otherwise expressly permitted under this Agreement, nor shall the General Partner withdraw
as General Partner except in connection with a transaction described in Section 11.02.B below.

 

B.           The
General Partner shall not engage in any merger (including a triangular merger), consolidation or other combination with or into
another person, sale of all or substantially all of its assets or any reclassification, recapitalization or change of outstanding
Shares (other than a change in par value, or from par value to no par value, or as a result of a subdivision or combination as
described in the definition of “Conversion Factor”) (“Termination Transaction”), unless the
Termination Transaction has been approved by the Consent of the Partners holding a majority or more of the then outstanding Percentage
Interests (including the effect of any Partnership Units held by the General Partner) and in connection with which all Limited
Partners either will receive, or will have the right to elect to receive, for each Partnership Unit an amount of cash, securities,
or other property equal to the product of the Conversion Factor and the greatest amount of cash, securities or other property paid
to a holder of Shares, if any, corresponding to such Partnership Unit that was issued pursuant to Section 4.02.A hereof in consideration
of one such Share at any time during the period from and after the date on which the Termination Transaction is consummated; provided
that, if, in connection with the Termination Transaction, a purchase, tender or exchange offer shall have been made to and accepted
by the holders of more than fifty percent (50%) of the outstanding Shares, each holder of Partnership Units shall receive, or shall
have the right to elect to receive, the greatest amount of cash, securities, or other property which such holder would have received
had it exercised the Redemption Right and received Shares in exchange for its Partnership Units immediately prior to the expiration
of such purchase, tender or exchange offer and had thereupon accepted such purchase, tender or exchange offer.

 

Section 11.03.         Limited
Partners’ Rights to Transfer

 

A.           General.
A Limited Partner may not transfer any of such Limited Partner’s rights as a Limited Partner without the consent of the General
Partner, which consent the General Partner may withhold in its sole discretion.

 

B.           Incapacitated
Limited Partners. If a Limited Partner is subject to Incapacity, the executor, administrator, trustee, committee, guardian,
conservator or receiver of such Limited Partner’s estate shall have all the rights of a Limited Partner, but not more rights
than those enjoyed by other Limited Partners for the purpose of settling or managing the estate and such power as the Incapacitated
Limited Partner possessed to transfer all or any part of its interest in the Partnership. The Incapacity of a Limited Partner,
in and of itself, shall not dissolve or terminate the Partnership.

 

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C.           No
Transfers Violating Securities Laws. The General Partner may prohibit any transfer of Partnership Units by a Limited Partner
if, in the opinion of legal counsel to the Partnership, such transfer would require filing of a registration statement under the
Securities Act or would otherwise violate any federal, or state securities laws or regulations applicable to the Partnership or
the Partnership Unit.

 

D.           No
Transfers Affecting Tax Status of Partnership. No transfer of Partnership Units by a Limited Partner (including a redemption
or exchange pursuant to Section 8.06 hereof) may be made to any Person if (i) in the opinion of legal counsel for the Partnership,
it would result in the Partnership being treated as an association taxable as a corporation for federal income tax purposes or
would result in a termination of the Partnership for federal income tax purposes (except as a result of the redemption or exchange
for Shares of all Partnership Units held by all Limited Partners other than the General Partner or the General Partner Entity or
any Subsidiary of either the General Partner or the General Partner Entity or pursuant to a transaction expressly permitted under
Section 7.11.B or Section 11.02 hereof), (ii) in the opinion of legal counsel for the Partnership, it would adversely affect the
ability of the General Partner Entity to continue to qualify as a REIT or would subject the General Partner Entity to any additional
taxes under Section 857 or Section 4981 of the Code or (iii) such transfer is effectuated through an “established securities
market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of
the Code.

 

E.           No
Transfers to Holders of Nonrecourse Liabilities. No pledge or transfer of any Partnership Units may be made to a lender to
the Partnership, or to any Person who is related (within the meaning of Section 1.752-4(b) of the Regulations) to any lender to
the Partnership, whose loan constitutes a Nonrecourse Liability without the consent of the General Partner, in its sole and absolute
discretion; provided that, as a condition to such consent the lender will be required to enter into an arrangement with
the Partnership and the General Partner to exchange or redeem for the Redemption Amount any Partnership Units transferred or in
which a security interest is held simultaneously with the time at which such lender would be deemed to be a partner in the Partnership
for purposes of allocating liabilities to such lender under Section 752 of the Code.

 

F.           Transfer
Register. The General Partner shall keep a register for the Partnership on which the transfer, pledge or release of Partnership
Units shall be shown and pursuant to which entries shall be made to effect all transfers, pledges or releases as required by Sections
8-207,8-313(1) and 8-321 of the Uniform Commercial Code, as amended, in effect in the States of New York and Delaware; provided,
however, that if there is any conflict between such requirements, the provisions of the Delaware Uniform Commercial Code
shall govern. The General Partner shall (i) place proper entries in such register clearly showing each transfer and each pledge
and grant of security interest and the transfer and assignment pursuant thereto, such entries to be endorsed by the General Partner
and (ii) maintain the register and make the register available for inspection by all of the Partners and their pledgees at all
times during the term of this Agreement. Nothing herein shall be deemed a consent to any pledge or transfer otherwise prohibited
under this Agreement.

 

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Section 11.04.         Substituted
Limited Partners

 

A.           Consent
of General Partner. No Limited Partner shall have the right to substitute a transferee as a Limited Partner in its place without
the consent of the General Partner to the admission of a transferee of the interest of a Limited Partner pursuant to this Section
11.04 as a Substituted Limited Partner, which consent may be given or withheld by the General Partner in its sole and absolute
discretion. The General Partner’s failure or refusal to permit a transferee of any such interests to become a Substituted
Limited Partner shall not give rise to any cause of action against the Partnership or any Partner; provided that a transfer which
does not require consent of the General Partner under Section 11.03.A shall not require the General Partner’s consent under
this section.

 

B.           Rights
of Substituted Limited Partner. A transferee who has been admitted as a Substituted Limited Partner in accordance with this
Article XI shall have all the rights and powers and be subject to all the restrictions and liabilities of a Limited Partner under
this Agreement. The admission of any transferee as a Substituted Limited Partner shall be conditioned upon the transferee executing
and delivering to the Partnership an acceptance of all the terms and conditions of this Agreement (including, without limitation,
the provisions of Section 15.11 hereof and such other documents or instruments as may be required to effect the admission).

 

C.           Amendment
and Restatement of Exhibit A. Upon the admission of a Substituted Limited Partner, the General Partner shall amend and restate
Exhibit A hereto to reflect the name, address, Capital Account, number of Partnership Units, and Percentage Interest of
such Substituted Limited Partner and to eliminate or adjust, if necessary, the name, address, Capital Account and Percentage Interest
of the predecessor of such Substituted Limited Partner.

 

Section 11.05.         Assignees

 

If the General Partner,
in its sole and absolute discretion, does not consent to the admission of any permitted transferee under Section 11.03 above as
a Substituted Limited Partner, as described in Section 11.04 above, such transferee shall be considered an Assignee for purposes
of this Agreement. An Assignee shall be entitled to all the rights of an assignee of a limited partner interest under the Act,
including the right to receive distributions from the Partnership and the share of Net Income, Net Losses, gain, loss and Recapture
Income attributable to the Partnership Units assigned to such transferee, and shall have the rights granted to the Limited Partners
under Section 8.06 hereof but shall not be deemed to be a holder of Partnership Units for any other purpose under this Agreement,
and shall not be entitled to vote such Partnership Units in any matter presented to the Limited Partners for a vote (such Partnership
Units being deemed to have been voted on such matter in the same proportion as all other Partnership Units held by Limited Partners
are voted). In the event any such transferee desires to make a further assignment of any such Partnership Units, such transferee
shall be subject to all the provisions of this Article XI to the same extent and in the same manner as any Limited Partner desiring
to make an assignment of Partnership Units.

 

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Section 11.06.         General
Provisions

 

A.           Withdrawal
of Limited Partner. No Limited Partner may withdraw from the Partnership other than as a result of a permitted transfer of
all of such Limited Partner’s Partnership Units in accordance with this Article XI or pursuant to redemption of all of its
Partnership Units under Section 8.06 hereof.

 

B.           Termination
of Status as Limited Partner. Any Limited Partner who shall transfer all of its Partnership Units in a transfer permitted pursuant
to this Article XI or pursuant to redemption of all of its Partnership Units under Section 8.06 hereof shall cease to be a Limited
Partner.

 

C.           Timing
of Transfers. Transfers pursuant to this Article XI may only be made on the first day of a fiscal quarter of the Partnership,
unless the General Partner otherwise agrees.

 

D.           Allocations.
If any Partnership Interest is transferred during any quarterly segment of the Partnership’s fiscal year in compliance with
the provisions of this Article XI or redeemed or transferred pursuant to Section 8.06 hereof, Net Income, Net Losses, each item
thereof and all other items attributable to such interest for such fiscal year shall be divided and allocated between the transferor
Partner and the transferee Partner by taking into account their varying interests during the fiscal year in accordance with Section
706(d) of the Code, using the interim closing of the books method (unless the General Partner, in its sole and absolute discretion,
elects to adopt a daily, weekly, or a monthly proration period, in which event Net Income, Net Losses, each item thereof and all
other items attributable to such interest for such fiscal year shall be prorated based upon the applicable method selected by the
General Partner). Solely for purposes of making such allocations, each of such items for the calendar month in which the transfer
or redemption occurs shall be allocated to the Person who is a Partner as of midnight on the last day of said month. All distributions
attributable to any Partnership Unit with respect to which the Partnership Record Date is before the date of such transfer, assignment
or redemption shall be made to the transferor Partner or the Redeeming Partner, as the case may be, and, in the case of a transfer
or assignment other than a redemption, all distributions thereafter attributable to such Partnership Unit shall be made to the
transferee Partner.

 

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E.           Additional
Restrictions. In addition to any other restrictions on transfer herein contained, including without limitation the provisions
of this Article XI, in no event may any transfer or assignment of a Partnership Interest by any Partner (including pursuant to
Section 8.06 hereof) be made without the express consent of the General Partner, in its sole and absolute discretion, (i) to any
person or entity who lacks the legal right, power or capacity to own a Partnership Interest; (ii) in violation of applicable law;
(iii) of any component portion of a Partnership Interest, such as the Capital Account, or rights to distributions, separate and
apart from all other components of a Partnership Interest except as permitted by Section 11.03.A; (iv) if in the opinion of legal
counsel to the Partnership such transfer would cause a termination of the Partnership for federal or state income tax purposes
(except as a result of the redemption or exchange for Shares of all Partnership Units held by all Limited Partners or pursuant
to a transaction expressly permitted under Section 7.11.B or Section 11.02 hereof); (v) if in the opinion of counsel to the Partnership,
such transfer would cause the Partnership to cease to be classified as a partnership for federal income tax purposes (except as
a result of the redemption or exchange for Shares of all Partnership Units held by all Limited Partners or pursuant to a transaction
expressly permitted under Section 7.11.B or Section 11.02 hereof); (vi) if such transfer would cause the Partnership to become,
with respect to any employee benefit plan subject to Title I of ERISA, a “party-in-interest” (as defined in Section
3(14) of ERISA) or a “disqualified person” (as defined in Section 4975(c) of the Code); (vii) without the consent of
the General Partner, to any “benefit plan investor” within the meaning of Department of Labor Regulations Section 2510.3-101(f);
(viii) if such transfer would, in the opinion of counsel to the Partnership, cause any portion of the assets of the Partnership
to constitute assets of any employee benefit plan pursuant to Department of Labor Regulations Section 2570.3-101; (ix) if such
transfer requires the registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (x)
if such transfer is effectuated through an “established securities market” or a “secondary market” (or
the substantial equivalent thereof) within the meaning of Section 7704 of the Code or such transfer causes the Partnership to become
a “publicly traded partnership,” as such term is defined in Section 469(k)(2) or Section 7704(b) of the Code; (xi)
if such transfer subjects the Partnership to regulation under the Investment Company Act of 1940, the Investment Advisors Act of
1940 or the Employee Retirement. Income Security Act of 1974, each as amended; (xii) if such transfer could adversely affect the
ability of the General Partner Entity to remain qualified as a REIT; or (xiii) if in the opinion of legal counsel for the Partnership,
such transfer would adversely affect the ability of the General Partner Entity to continue to qualify as a REIT or subject the
General Partner Entity to any additional taxes under Section 857 or Section 4981 of the Code.

 

F.           Avoidance
of “Publicly Traded Partnership” Status. The General Partner shall monitor the transfers of interests in the Partnership
to determine (i) if such interests are being traded on an “established securities market” or a “secondary market
(or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code and (ii) whether additional transfers
of interests would result in the Partnership being unable to qualify for at least one of the “safe harbors” set forth
in Regulations Section 1.7704-1 (or such other guidance subsequently published by the IRS setting forth safe harbors under which
interests will not be treated as “readily tradable” on a secondary market (or the substantial equivalent thereof) within
the meaning of Section 7704 of the Code (the “Safe Harbors”). The General Partner shall take all steps reasonably
necessary or appropriate to prevent any trading of interests or any recognition by the Partnership of transfers made on such markets
and, except as otherwise provided herein, to insure that at least one of the Safe Harbors is met.

 

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ARTICLE
XII

ADMISSION OF PARTNERS

 

Section 12.01.         Admission
of Successor General Partner

 

A successor to all
of the General Partner’s General Partnership Interest pursuant to Section 11.02 hereof who is proposed to be admitted as
a successor General Partner shall be admitted to the Partnership as the General Partner, effective upon such transfer. Any such
transferee shall carry on the business of the Partnership without dissolution. In each case, the admission shall be subject to
the successor General Partner’s executing and delivering to the Partnership an acceptance of all of the terms and conditions
of this Agreement and such other documents or instruments as may be required to effect the admission.

 

Section 12.02.         Admission
of Additional Limited Partners

 

A.           General.
No Person shall be admitted as an Additional Limited Partner without the consent of the General Partner, which consent shall be
given or withheld in the General Partner’s sole and absolute discretion. A Person who makes a Capital Contribution to the
Partnership in accordance with this Agreement, including, without limitation, pursuant to Section 401.C hereof, or who exercises
an option to receive Partnership Units shall be admitted to the Partnership as an Additional Limited Partner only with the consent
of the General Partner and only upon furnishing to the General Partner (i) evidence of acceptance in form satisfactory to the General
Partner of all of the terms and conditions of this Agreement, including, without limitation, the power of attorney granted in Section
15.11 hereof and (ii) such other documents or instruments as may be required in the discretion of the General Partner in order
to effect such Person’s admission as an Additional Limited Partner. The admission of any Person as an Additional Limited
Partner shall become effective on the date upon which the name of such Person is recorded on the books and records of the Partnership,
following the consent of the General Partner to such admission.

 

B.           Allocations
to Additional Limited Partners. If any Additional Limited Partner is admitted to the Partnership on any day other than the
first day of a Partnership Year, then Net Income, Net Losses, each item thereof and all other items allocable among Partners and
Assignees for such Partnership Year shall be allocated among such Additional Limited Partner and all other Partners and Assignees
by taking into account their varying interests during the Partnership Year in accordance with Section 706(d) of the Code, using
the interim closing of the books method (unless the General Partner, in its sole and absolute discretion, elects to adopt a daily,
weekly or monthly proration method, in which event Net Income, Net Losses, and each item thereof would be prorated based upon the
applicable period selected by the General Partner). Solely for purposes of making such allocations, each of such items for the
calendar month in which an admission of any Additional Limited Partner occurs shall be allocated among all the Partners and Assignees
including such Additional Limited Partner. All distributions with respect to which the Partnership Record Date is before the date
of such admission shall be made solely to Partners and Assignees other than the Additional Limited Partner, and all distributions
thereafter shall be made to all the Partners and Assignees including such Additional Limited Partner.

 

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Section 12.03.         Amendment
of Agreement and Certificate of Limited Partnership

 

For the admission to
the Partnership of any Partner, the General Partner shall take all steps necessary and appropriate under the Act to amend the records
of the Partnership (including an amendment and restatement of Exhibit A hereto) and, if necessary, to prepare as soon as
practical an amendment of this Agreement and, if required by law, shall prepare and file an amendment to the Certificate and may
for this purpose exercise the power of attorney granted pursuant to Section 15.11 hereof.

 

ARTICLE
XIII

DISSOLUTION AND LIQUIDATION 

 

Section 13.01.         Dissolution

 

The Partnership shall
not be dissolved by the admission of Substituted Limited Partners or Additional Limited Partners or by the admission of a successor
General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any successor General
Partner shall continue the business of the Partnership. The Partnership shall dissolve, and its affairs shall be wound up, upon
the first to occur of any of the following (“Liquidating Events”):

 

(i)          the
expiration of its term as provided in Section 2.04 hereof;

 

(ii)         an
event of withdrawal of the General Partner, as defined in the Act (other than an event of bankruptcy), unless, within ninety (90)
days after the withdrawal a “majority in interest” (as defined below) of the remaining Partners Consent in writing
to continue the business of the Partnership and to the appointment, effective as of the date of withdrawal, of a substitute General
Partner;

 

(iii)        an
election to dissolve the Partnership made by the General Partner, in its sole and absolute discretion, on or after January 1, 2054;

 

(iv)        entry
of a decree of judicial dissolution of the Partnership pursuant to the provisions of the Act; or

 

(v)         a
final and nonappealable judgment is entered by a court of competent jurisdiction ruling that the General Partner is bankrupt or
insolvent, or a final and nonappealable order for relief is entered by a court with appropriate jurisdiction against the General
Partner, in each case under any federal or state bankruptcy or insolvency laws as now or hereafter in effect, unless prior to or
within ninety days after of the entry of such order or judgment a “majority in interest” (as defined below) of the
remaining Partners Consent in writing to continue the business of the Partnership and to the appointment, effective as of a date
prior to the date of such order or judgment, of a substitute General Partner.

 

As used herein, a “majority
in interest” shall refer to Partners (excluding the General Partner) who hold more than fifty percent (50%) of the outstanding
Percentage Interests not held by the General Partner.

 

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Section 13.02.         Winding
Up

 

A.           General.
Upon the occurrence of a Liquidating Event, the Partnership shall continue solely for the purposes of winding up its affairs in
an orderly manner, liquidating its assets, and satisfying the claims of its creditors and Partners. No Partner shall take any action
that is in consistent with, or not necessary to or appropriate for, the winding up of the Partnership’s business and affairs.
The General Partner (or, in the event there is no remaining General Partner, any Person elected by a majority in interest of the
Limited Partners (the “Liquidator”)) shall be responsible for overseeing the winding up and dissolution of the
Partnership and shall take full account of the Partnership’s liabilities and property and the Partnership property shall
be liquidated as promptly as is consistent with obtaining the fair value thereof, and the proceeds therefrom (which may, to the
extent determined by the General Partner, include equity or other securities of the General Partner or any other entity) shall
be applied and distributed in the following order:

 

(1)         First,
to the payment and discharge of all of the Partnership’s debts and liabilities to creditors other than the Partners;

 

(2)         Second,
to the payment and discharge of all of the Partnership’s debts and liabilities to the Partners; and

 

(3)         The
balance, if any, to the Partners in accordance with their Capital Accounts, after giving effect to all contributions, distributions,
and allocations for all periods.

 

The General Partner shall not receive any
additional compensation for any services performed pursuant to this Article XIII.

 

B.           Deferred
Liquidation. Notwithstanding the provisions of Section 13.02.A above which require liquidation of the assets of the Partnership,
but subject to the order of priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines
that an immediate sale of part or all of the Partnership’s assets would be impractical or would cause undue loss to the Partners,
the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of any assets except those
necessary to satisfy liabilities of the Partnership (including to those Partners as creditors) or distribute to the Partners, in
lieu of cash, as tenants in common and in accordance with the provisions of Section 13.02.A above, undivided interests in such
Partnership assets as the Liquidator deems not suitable for liquidation. Any such distributions in kind shall be made only if,
in the good faith judgment of the Liquidator, such distributions in kind are in the best interest of the Partners, and shall be
subject to such conditions relating to the disposition and management of such properties as the Liquidator deems reasonable and
equitable and to any agreements governing the operation of such properties at such time. The Liquidator shall determine the fair
market value of any property distributed in kind using such reasonable method of valuation as it may adopt.

 

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Section 13.03.         Compliance
with Timing Requirements of Regulations

 

Subject to Section
13.04 below, in the event the Partnership is “liquidated” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g),
distributions shall be made pursuant to this Article XIII to the General Partner and Limited Partners who have positive Capital
Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2). If any Partner has a deficit balance in its Capital Account
(after giving effect to all contributions, distributions and allocations for all taxable years, including the year during which
such liquidation occurs), such Partner shall have no obligation to make any contribution to the capital of the Partnership with
respect to such deficit, and such deficit shall not be considered a debt owed to the Partnership or to any other Person for any
purpose whatsoever. In the discretion of the General Partner, a pro rata portion of the distributions that would otherwise be made
to the General Partner and Limited Partners pursuant to this Article XIII may be: (A) distributed to a trust established for the
benefit of the General Partner and Limited Partners for the purposes of liquidating Partnership assets, collecting amounts owed
to the Partnership and paying any contingent or unforeseen liabilities or obligations of the Partnership or of the General Partner
arising out of or in connection with the Partnership (in which case the assets of any such trust shall be distributed to the General
Partner and Limited Partners from time to time, in the reasonable discretion of the General Partner, in the same proportions as
the amount distributed to such trust by the Partnership would otherwise have been distributed to the General Partner and Limited
Partners pursuant to this Agreement); or (B) withheld to provide a reasonable reserve for Partnership liabilities (contingent or
otherwise) and to reflect the unrealized portion of any installment obligations owed to the Partnership, provided that such withheld
amounts shall be distributed to the General Partner and Limited Partners as soon as practicable.

 

Section 13.04.         Deemed
Distribution and Recontribution

 

Notwithstanding any
other provision of this Article XIII, in the event the Partnership is deemed liquidated within the meaning of Regulations Section
1.704-1(b)(2)(ii)(g) but no Liquidating Event has occurred, the Partnership’s property shall not be liquidated, the Partnership’s
liabilities shall not be paid or discharged and the Partnership’s affairs shall not be wound up. Instead, for federal income
tax purposes and for purposes of maintaining Capital Accounts pursuant to Exhibit B hereto, the Partnership shall be deemed
to have distributed its assets in kind to the General Partner and Limited Partners, who shall be deemed to have assumed and taken
such assets subject to all Partnership liabilities, all in accordance with their respective Capital Accounts. Immediately thereafter,
the General Partner and Limited Partners shall be deemed to have recontributed the Partnership assets in kind to the Partnership,
which shall be deemed to have assumed and taken such assets subject to all such liabilities.

 

Section 13.05.         Rights
of Limited Partners

 

Except as otherwise
provided in this Agreement, each Limited Partner shall look solely to the assets of the Partnership for the return of its Capital
Contributions and shall have no right or power to demand or receive property other than cash from the Partnership. Except as otherwise
expressly provided in this Agreement, no Limited Partner shall have priority over any other Limited Partner as to the return of
its Capital Contributions, distributions, or allocations.

 

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Section 13.06.         Notice
of Dissolution

 

In the event a Liquidating
Event occurs or an event occurs that would, but for provisions of an election or objection by one or more Partners pursuant to
Section 13.01 above, result in a dissolution of the Partnership, the General Partner shall, within thirty (30) days thereafter,
provide written notice thereof to each of the Partners and to all other parties with whom the Partnership regularly conducts business
(as determined in the discretion of the General Partner) and shall publish notice thereof in a newspaper of general circulation
in each place in which the Partnership regularly conducts business (as determined in the discretion of the General Partner).

 

Section 13.07.         Cancellation
of Certificate of Limited Partnership

 

Upon the completion
of the liquidation of the Partnership cash and property as provided in Section 13.02 above, the Partnership shall be terminated
and the Certificate and all qualifications of the Partnership as a foreign limited partnership in jurisdictions other than the
State of Delaware shall be canceled and such other actions as may be necessary to terminate the Partnership shall be taken.

 

Section 13.08.         Reasonable
Time for Winding Up

 

A reasonable time shall
be allowed for the orderly winding up of the business and affairs of the Partnership and the liquidation of its assets pursuant
to Section 13.02 above, in order to minimize any losses otherwise attendant upon such winding-up, and the provisions of this Agreement
shall remain in effect among the Partners during the period of liquidation.

 

Section 13.09.         Waiver
of Partition

 

Each Partner hereby
waives any right to partition of the Partnership property.

 

Section 13.10.         Liability
of Liquidator

 

The Liquidator shall
be indemnified and held harmless by the Partnership in the same manner and to the same degree as an Indemnitee may be indemnified
pursuant to Section 7.11 hereof.

 

ARTICLE
XIV

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS 

 

Section 14.01.         Amendments

 

A.           General.
Amendments to this Agreement may be proposed by the General Partner or by any Limited Partners holding twenty-five percent (25%)
or more of the Partnership Interests. Following such proposal (except an amendment pursuant to Section 14.01.B below), the General
Partner shall submit any proposed amendment to the Limited Partners. The General Partner shall seek the written vote of the Partners
on the proposed amendment or shall call a meeting to vote thereon and to transact any other business that it may deem appropriate.
For purposes of obtaining a written vote, the General Partner may require a response within a reasonable specified time, but not
less than fifteen (15) days, and failure to respond in such time period shall constitute a vote which is consistent with the General
Partner’s recommendation with respect to the proposal. Except as provided in Section 14.01.B, 14.01.C or 14.01.D below, a
proposed amendment shall be adopted and be effective as an amendment hereto if it is approved by the General Partner and it receives
the Consent of Partners holding a majority of the Percentage Interests of the Limited Partners (including Limited Partner Interests
held by the General Partner).

 

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B.           Amendments
Not Requiring Limited Partner Approval. Notwithstanding Section 14.01.A or Section 14.01.C hereof, the General Partner shall
have the power, without the Consent of the Limited Partners, to amend this Agreement as may be required to facilitate or implement
any of the following purposes:

 

(1)         to
add to the obligations of the General Partner or surrender any right or power granted to the General Partner or any Affiliate of
the General Partner for the benefit of the Limited Partners;

 

(2)         to
reflect the admission, substitution, termination or withdrawal of any Partner in accordance with this Agreement;

 

(3)         to
set forth the designations, rights, powers, duties, and preferences of the holders of any additional Partnership Interests issued
pursuant to Article IV hereof;

 

(4)         to
reflect a change that does not adversely affect any of the Limited Partners in any material respect, or to cure any ambiguity,
correct or supplement any provision in this Agreement not inconsistent with law or with other provisions, or make other changes
with respect to matters arising under this Agreement that will not be inconsistent with law or with the provisions of this Agreement
or as may be expressly provided by any other provisions of this Agreement;

 

(5)         to
adjust the terms hereof to reflect any Specially Distributed Property, as contemplated in Section 7.05.A hereof; and

 

(6)         to
satisfy any requirements, conditions, or guidelines contained in any order, directive, opinion, ruling or regulation of a federal,
state or local agency or contained in federal, state or local law.

 

The General Partner shall notify the Limited
Partners when any action under this Section 14.01.B is taken in the next regular communication to the Limited Partners.

 

C.           Amendments
Requiring Limited Partner Approval (Excluding General Partner). Notwithstanding Section 14.01.A above, without the Consent
of the Limited Partners (not including Limited Partner Interests held by the General Partner), the General Partner shall not amend
Section 4.02.A, Section 7.01.A (second sentence only), Section 7.05, Section 7.06, Section 7.08, Section 11.02, Section 13.01,
this Section 14.01.C or Section 14.02.

 

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D.           Other
Amendments Requiring Certain Limited Partner Approval. Notwithstanding anything in this Section 14.01 to the contrary, this
Agreement shall not be amended with respect to any Partner adversely affected without the Consent of such Partner adversely affected
if such amendment would (i) convert a Limited Partner’s interest in the Partnership into a general partner’s interest,
(ii) modify the limited liability of a Limited Partner, (iii) amend Section 7.11.A, (iv) amend Article V, Article VI, or Section
13.02.A(3) (except as permitted pursuant to Sections 4.02, 5.04, 6.02 and 14.01.B(3)), (v) amend Section 8.06 or any defined terms
set forth in Article I that relate to the Redemption Right (except as permitted in Section 8.06.E); or (vi) amend this Section
14.01D. Moreover, this Agreement may be amended by the General Partner to provide that certain Limited Partners have the obligation,
upon liquidation of their interests in the Partnership (within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g)), to restore
to the Partnership the amounts of their negative Capital Account balances, if any, for the benefit of creditors of the Partnership
or Partners with positive Capital Account balances or both, together with any necessary corresponding amendments (including corresponding
amendments to Sections 6.01.A, 6.01.B and Exhibit C), with the consent of only such Limited Partners and of any other Limited
Partners already subject to such a restoration obligation whose restoration obligation may be affected by such amendment.

 

E.           Amendment
and Restatement of Exhibit A Not An Amendment. Notwithstanding anything in this Article XIV or elsewhere in this Agreement
to the contrary, any amendment and restatement of Exhibit A hereto by the General Partner to reflect events or changes otherwise
authorized or permitted by this Agreement, whether pursuant to Section 7.01.A(20) hereof or otherwise, shall not be deemed an amendment
of this Agreement and may be done at any time and from time to time, as necessary by the General Partner without the Consent of
the Limited Partners.

 

Section 14.02.         Meetings
of the Partners

 

A.           General.
Meetings of the Partners may be called by the General Partner and shall be called upon the receipt by the General Partner of a
written request by Limited Partners holding twenty-five percent (25%) or more of the Partnership Interests. The notice of meeting
shall state the nature of the business to be transacted. Notice of any such meeting shall be given to all Partners not less than
seven (7) days nor more than thirty (30) days prior to the date of such meeting. Partners may vote in person or by proxy at such
meeting. Whenever the vote or Consent of Partners is permitted or required under this Agreement, such vote or Consent may be given
at a meeting of Partners or may be given in accordance with the procedure prescribed in Section 14.01.A above. Except as otherwise
expressly provided in this Agreement, the Consent of holders of a majority of the Percentage Interests held by Limited Partners
(including Limited Partner Interests held by the General Partner) shall control.

 

B.           Actions
Without a Meeting. Any action required or permitted to be taken at a meeting of the Partners may be taken without a meeting
if a written consent setting forth the action so taken is signed by a majority of the Percentage Interests of the Partners (or
such other percentage as is expressly required by this Agreement). Such consent may be in one instrument or in several instruments,
and shall have the same force and effect as a vote of a majority of the Percentage Interests of the Partners (or such other percentage
as is expressly required by this Agreement). Such consent shall be filed with the General Partner. An action so taken shall be
deemed to have been taken at a meeting held on the effective date so certified.

 

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C.           Proxy.
Each Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in which a Limited Partner is entitled
to participate, including waiving notice of any meeting, or voting or participating at a meeting. Every proxy must be signed by
the Limited Partner or its attorney-in-fact. No proxy shall be valid after the expiration of eleven (11) months from the date thereof
unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Limited Partner executing it. Such
revocation to be effective upon the Partnership’s receipt of notice thereof in writing.

 

D.           Conduct
of Meeting. Each meeting of Partners shall be conducted by the General Partner or such other Person as the General Partner
may appoint pursuant to such rules for the conduct of the meeting as the General Partner or such other Person deems appropriate.

 

ARTICLE
XV

GENERAL PROVISIONS

 

Section 15.01.         Addresses
and Notice

 

Any notice, demand,
request or report required or permitted to be given or made to a Partner or Assignee under this Agreement shall be in writing and
shall be deemed given or made when delivered in person or when sent by first class United States mail or by other means of written
communication to the Partner or Assignee at the address set forth in Exhibit A hereto or such other address as the Partners
shall notify the General Partner in writing.

 

Section 15.02.         Titles
and Captions

 

All article or section
titles or captions in this Agreement are for convenience only. They shall not be deemed part of this Agreement and in no way define,
limit, extend or describe the scope or intent of any provisions hereof. Except as specifically provided otherwise, references to
“Articles” and “Sections” are to Articles and Sections of this Agreement.

 

Section 15.03.         Pronouns
and Plurals

 

Whenever the context
may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns, pronouns and verbs shall include the plural and vice versa.

 

Section 15.04.         Further
Action

 

The parties shall execute
and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to
achieve the purposes of this Agreement.

 

Section 15.05.         Binding
Effect

 

This Agreement shall
be binding upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives
and permitted assigns.

 

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Section 15.06.         Creditors

 

Other than as expressly
set forth herein with regard to any Indemnitee, none of the provisions of this Agreement shall be for the benefit of, or shall
be enforceable by, any creditor of the Partnership.

 

Section 15.07.         Waiver

 

No failure by any party
to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right
or remedy consequent upon a breach thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or
condition.

 

Section 15.08.         Counterparts

 

This Agreement may
be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto, notwithstanding
that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this Agreement
immediately upon affixing its signature hereto (other than the existing Partners who will become bound by this Agreement upon its
execution by the General Partner).

 

Section 15.09.         Applicable
Law

 

This Agreement shall
be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to the principles
of conflicts of law.

 

Section 15.10.         Invalidity
of Provisions

 

If any provision of
this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not be affected thereby.

 

Section 15.11.         Power
of Attorney

 

A.           General.
Each Limited Partner and each Assignee who accepts Partnership Units (or any rights, benefits or privileges associated therewith)
is deemed to irrevocably constitute and appoint the General Partner, any Liquidator and authorized officers and attorneys-in-fact
of each, and each of those acting singly, in each case with full power of substitution, as its true and lawful agent and attorney-in-fact,
with full power and authority in its name, place and stead to:

 

    	54

    	 

    

  

(1)         execute,
swear to, acknowledge, deliver, file and record in the appropriate public offices (a) all certificates, documents and other instruments
(including, without limitation, this Agreement and the Certificate and all amendments or restatements thereof) that the General
Partner or any Liquidator deems appropriate or necessary to form, qualify or continue the existence or qualification of the Partnership
as a limited partnership (or a partnership in which the limited partners have limited liability) in the State of Delaware and in
all other jurisdictions in which the Partnership may conduct business or own property, (b) all instruments that the General Partner
or any Liquidator deems appropriate or necessary to reflect any amendment, change, modification or restatement of this Agreement
in accordance with its terms, (c) all conveyances and other instruments or documents that the General Partner or any Liquidator
deems appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement,
including, without limitation, a certificate of cancellation, (d) all instruments relating to the admission, withdrawal, removal
or substitution of any Partner pursuant to, or other events described in, Article XI, XII or XIII hereof or the Capital Contribution
of any Partner and (e) all certificates, documents and other instruments relating to the determination of the rights, preferences
and privileges of Partnership Interests; and

 

(2)         execute,
swear to, acknowledge and file all ballots, consents, approvals, waivers, certificates and other instruments appropriate or necessary;
in the sole and absolute discretion of the General Partner or any Liquidator, to make, evidence, give, confirm or ratify any vote,
consent, approval; agreement or other action which is made or given by the Partners hereunder or is consistent with the terms of
this Agreement or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator to effectuate the terms
or intent of this Agreement.

 

Nothing contained in
this Section 15.11 shall be construed as authorizing the General Partner or any Liquidator to amend this Agreement except in accordance
with Article XIV hereof or as may be otherwise expressly provided for in this Agreement.

 

B.           Irrevocable
Nature. The foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, in recognition
of the fact that each of the Partners will be relying upon the power of the General Partner or any Liquidator to act as contemplated
by this Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by
the subsequent Incapacity of any Limited Partner or Assignee and the transfer of all or any portion of such Limited Partner’s
or Assignee’s Partnership Units and shall extend to such Limited Partner’s or Assignee’s heirs, successors, assigns
and personal representatives. Each such Limited Partner or Assignee hereby agrees to be bound by any representation made by the
General Partner or any Liquidator, acting in good faith pursuant to such power of attorney; and each such Limited Partner or Assignee
hereby waives any and all defenses which may be available to contest, negate or disaffirm the action of the General Partner or
any Liquidator, taken in good faith under such power of attorney. Each Limited Partner or Assignee shall execute and deliver to
the General Partner or the Liquidator, within fifteen (15) days after receipt of the General Partner’s or Liquidator’s
request therefor, such further designation, powers of attorney and other instruments as the General Partner or the Liquidator,
as the case may be, deems necessary to effectuate this Agreement and the purposes of the Partnership.

 

Section 15.12.         Entire
Agreement

 

This Agreement contains
the entire understanding and agreement among the Partners with respect to the subject matter hereof and supersedes any prior written
oral understandings or agreements among them with respect thereto.

 

    	55

    	 

    

 

Section 15.13.         No
Rights as Stockholders

 

Nothing contained in
this Agreement shall be construed as conferring upon the holders of the Partnership Units any rights whatsoever as stockholders
of the General Partner Entity, including, without limitation, any right to receive dividends or other distributions made to stockholders
of the General Partner Entity or to vote or to consent or receive notice as stockholders in respect to any meeting of stockholders
for the election of directors of the General Partner Entity or any other matter.

 

Section 15.14.         Limitation
to Preserve REIT Status

 

To the extent that
any amount paid or credited to the General Partner or its officers, directors, employees or agents pursuant to Section 7.04 or
Section 7.07 hereof would constitute gross income to the General Partner Entity for purposes of Section 856(c)(2) or 856(c)(3)
of the Code (a “General Partner Payment”) then, notwithstanding any other provision of this Agreement, the amount
of such General Partner Payments for any fiscal year shall not exceed the lesser of:

 

(i)          an
amount equal to the excess, if any, of (a) 4.20% of the General Partner Entity’s total gross income (but not including the
amount of any General Partner Payments) for the fiscal year which is described in subsections (A) though (H) of Section 856(c)(2)
of the Code over (b) the amount of gross income (within the meaning of Section 856(c)(2) of the Code) derived by the General Partner
Entity from sources other than those described in subsections (A) through (H) of Section 856(c)(2) of the Code (but not including
the amount of any General Partner Payments); or

 

(ii)         an
amount equal to the excess, if any of (a) 25% of the General Partner Entity’s total gross income (but not including the amount
of any General Partner Payments) for the fiscal year which is described in subsections (A) through (I) of Section 856(c)(3) of
the Code over (b) the amount of gross income (within the meaning of Section 856(c)(3) of the Code) derived by the General Partner
Entity from sources other than those described in subsections (A) through (I) of Section 856(c)(3) of the Code (but not including
the amount of any General Partner Payments);

 

provided, however, that General
Partner Payments in excess of the amounts set forth in subparagraphs (i) and (ii) above may be made if the General Partner Entity,
as a condition precedent, obtains an opinion of tax counsel that the receipt of such excess amounts would not adversely affect
the General Partner Entity’s ability to qualify as a REIT. To the extent General Partner Payments may not be made in a year
due to the foregoing limitations, such General Partner Payments shall carry over and be treated as arising in the following year,
provided, however, that such amounts shall not carry over for more than five years, and if not paid within such five
year period, shall expire; provided, further, that (i) as General Partner Payments are made, such payments shall
be applied first to carryover amounts outstanding, if any, and (ii) with respect to carryover amounts for more than one Partnership
Year, such payments shall be applied to the earliest Partnership Year first.

 

    	56

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first written above.

 

	 	GENERAL PARTNER:
	 	 
	 	GRAMERCY PROPERTY TRUST INC.
	 	 	 
	 	By:	/s/ Edward J. Matey Jr.
	 	 	Name: Edward J. Matey Jr. 
	 	 	Title: Executive Vice President

  

    	 

    	 

    

 

EXHIBIT A

PARTNERS AND PARTNERSHIP INTERESTS

 

Revised as of 7/31/14

 

	 	 	Percentage Interests	 
	Class A Units	 	 	 
	 	 	 	 
	Limited Partner Interest Holder	 	 	 	 
	Gramercy Property Trust Inc. (f/k/a Gramercy	 	 	99	%
	Capital Corp.)	 	 	 	 
	 	 	 	 	 
	General Partner Interest Holder	 	 	 	 
	Gramercy Property Trust Inc. (f/k/a Gramercy	 	 	1	%
	Capital Corp.)	 	 	 	 
	 	 	 	 	 
	8.125% Series A Cumulative Redeemable Preferred Units	 	 	 	 
	 	 	 	 	 
	Limited Partner Interest Holder	 	 	 	 
	Gramercy Property Trust Inc. (f/k/a Gramercy	 	 	99	%
	Capital Corp.)	 	 	 	 
	 	 	 	 	 
	General Partner Interest Holder	 	 	 	 
	Gramercy Property Trust Inc. (f/k/a Gramercy	 	 	1	%
	Capital Corp.)	 	 	 	 
	 	 	 	 	 
	LTIP Units	 	 	 	 
	 	 	 	 	 
	None	 	 	N/A	*

 

*Note: LTIP Units with a maximum aggregate value equal to $24,000,000
have been reserved for certain executive officers of Gramercy Property Trust Inc. (“GPT”) pursuant to GPT’s
2012 Long-Term Outperformance Plan, subject to the achievement of performance-based vesting hurdles as set forth in the plan. As
7/31/14, no LTIP Units had been earned, vested or deemed issued under the plan.

  

    	 

    	 

    

 

EXHIBIT B

CAPITAL ACCOUNT MAINTENANCE

 

1.           Capital
Accounts of the Partners

 

A.           The
Partnership shall maintain for each Partner a separate Capital Account in accordance with the rules of Regulations Section 1.704-l(b)(2)(iv).
Such Capital Account shall be increased by (i) the amount of all Capital Contributions and any other deemed contributions made
by such Partner to the Partnership pursuant to this Agreement and (ii) all items of Partnership income and gain (including income
and gain exempt from tax) computed in accordance with Section 1.B hereof and allocated to such Partner pursuant to Section 6.01
of the Agreement and Exhibit C to the Agreement, and decreased by (x) the amount of cash or Agreed Value of all actual and
deemed distributions of cash or property made to such Partner pursuant to this Agreement and (y) all items of Partnership deduction
and loss computed in accordance with Section 1.B hereof and allocated to such Partner pursuant to Section 6.01 of the Agreement
and Exhibit C to the Agreement.

 

B.           For
purposes of computing the amount of any item of income, gain, deduction or loss to be reflected in the Partners’ Capital
Accounts, unless otherwise specified in this Agreement, the determination, recognition and classification of any such item shall
be the same as its determination, recognition and classification for federal income tax purposes determined in accordance with
Section 703(a) of the Code (for this purpose all items of income, gain, loss or deduction required to be stated separately pursuant
to Section 703(a)(1) of the Code shall be included in taxable income or loss), with the following adjustments:

 

(1)         Except
as otherwise provided in Regulations Section 1.704-l(b)(2)(iv)(m), the computation of all items of income, gain, loss and deduction
shall be made without regard to any election under Section 754 of the Code which may be made by the Partnership, provided
that the amounts of any adjustments to the adjusted bases of the assets of the Partnership made pursuant to Section 734 of the
Code as a result of the distribution of property by the Partnership to a Partner (to the extent that such adjustments have not
previously been reflected in the Partners’ Capital Accounts) shall be reflected in the Capital Accounts of the Partners in
the manner and subject to the limitations prescribed in Regulations Section 1.704-l(b)(2)(iv)(m)(4).

 

(2)         The
computation of all items of income, gain, and deduction shall be made without regard to the fact that items described in Sections
705(a)(1)(B) or 705(a)(2)(B) of the Code are not includable in gross income or are neither currently deductible nor capitalized
for federal income tax purposes.

 

(3)         Any
income, gain or loss attributable to the taxable disposition of any Partnership property shall be determined as if the adjusted
basis of such property as of such date of disposition were equal in amount to the Partnership’s Carrying Value with respect
to such property as of such date.

 

    	B-1

    	 

    

  

(4)         In
lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income
or loss, there shall be taken into account Depreciation for such fiscal year.

 

(5)         In
the event the Carrying Value of any Partnership Asset is adjusted pursuant to Section 1.D hereof, the amount of any such adjustment
shall be taken into account as gain or loss from the disposition of such asset.

 

(6)         Any
items specially allocated under Section 2 of Exhibit C to the Agreement shall not be taken into account.

 

C.           Generally,
a transferee (including any Assignee) of a Partnership Unit shall succeed to a pro rata portion of the Capital Account of the transferor,
including where the transfer causes a termination of the Partnership under Section 708(b)(1)(B) of the Code, in which case the
Capital Account of the transferee and the Capital Accounts of the other holders of Partnership Units in the terminated Partnership
shall carry over to the new Partnership that is formed, for federal income tax purposes, as a result of the termination. In such
event, the Carrying Values of the Partnership properties in the reconstituted Partnership shall remain the same as they were in
the terminated Partnership and the Capital Accounts of such reconstituted Partnership shall be maintained in accordance with the
principles of this Exhibit B.

 

D.           (1)         Consistent
with the provisions of Regulations Section 1.704-1(b)(2)(iv)(f), and as provided in Section 1.D(2), the Carrying Values of all
Partnership assets shall be adjusted upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to such
Partnership property, as of the times of the adjustments provided in Section 1.D(2) hereof, as if such Unrealized Gain or Unrealized
Loss had been recognized on an actual sale of each such property and allocated pursuant to Section 6.01 of the Agreement.

 

(2)         Such
adjustments shall be made as of the following times: (a) immediately prior to the acquisition of an additional interest in the
Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution; (b) immediately prior to
the acquisition of a more than de minimis additional interest in the Partnership by any new or existing Partner as consideration
for the provision of services to or for the benefit of the Partnership in a partner capacity or in anticipation of becoming a partner;
(c) immediately prior to the distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration
for an interest in the Partnership; and (d) immediately prior to the liquidation of the Partnership within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(g) (except for a liquidation resulting from the termination of the Partnership under Section 708(b)(1)(B)
of the Code), provided however that adjustments pursuant to clauses (a), (b) and (c) above shall be made only if the General Partner
determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners in the
Partnership.

 

(3)         In
accordance with Regulations Section 1.704-l(b)(2)(iv)(e), the Carrying Value of Partnership assets distributed in kind (other than
in connection with the termination of the Partnership under Section 708(b)(1)(B) of the Code) shall be adjusted upward or downward
to reflect any Unrealized Gain or Unrealized Loss attributable to such Partnership property, as of the time any such asset is distributed.

 

    	B-2

    	 

    

  

(4)         In
determining Unrealized Gain or Unrealized Loss for purposes of this Exhibit B, the aggregate cash amount and fair market
value of all Partnership assets (including cash or cash equivalents) shall be determined by the General Partner using such reasonable
method of valuation as it may adopt, or in the case of a liquidating distribution pursuant to Article XIII of the Agreement, shall
be determined and allocated by the Liquidator using such reasonable methods of valuation as it may adopt. The General Partner,
or the Liquidator, as the case may be, shall allocate such aggregate fair market value among the assets of the Partnership in such
manner as it determines in its sole and absolute discretion to arrive at a fair market value for individual properties.

 

E.           The
provisions of the Agreement (including this Exhibit B and the other Exhibits to the Agreement) relating to the maintenance
of Capital Accounts are intended to comply with Regulations Section 1.704-l(b), and shall be interpreted and applied in a manner
consistent with such Regulations. In the event the General Partner shall determine that it is prudent to modify the manner in which
the Capital Accounts, or any debits or credits thereto (including, without limitation, debits or credits relating to liabilities
which are secured by contributed or distributed property or which are assumed by the Partnership, the General Partner, or the Limited
Partners) are computed in order to comply with such Regulations, the General Partner may make such modification without regard
to Article XIV of the Agreement, provided that it is not likely to have a material effect on the amounts distributable to
any Person pursuant to Article XIII of the Agreement upon the dissolution of the Partnership. The General Partner also shall (i)
make any adjustments that are necessary or appropriate to maintain equality between the Capital Accounts of the Partners and the
amount of Partnership capital reflected on the Partnership’s balance sheet, as computed for book purposes, in accordance
with Regulations Section 1.704-1(b)(2)(iv)(q), and (ii) make any appropriate modifications in the event unanticipated events might
otherwise cause the Agreement not to comply with Regulations Section 1.704-1(b).

 

2.          No
Interest

 

No interest shall be paid by the Partnership
on Capital Contributions or on balances in Partners’ Capital Accounts.

 

3.          No
Withdrawal

 

No Partner shall be entitled to withdraw
any part of its Capital Contribution or Capital Account or to receive any distribution from the Partnership, except as provided
in Articles IV, V, VII and XIII of the Agreement.

 

    	B-3

    	 

    

 

EXHIBIT C

SPECIAL ALLOCATION RULES

 

1.            Special
Allocation Rules.

 

Notwithstanding any other provision of the
Agreement or this Exhibit C, the following special allocations shall be made in the following order:

 

A.           Minimum
Gain Chargeback. Notwithstanding the provisions of Section 6.01 of the Agreement or any other provisions of this Exhibit
C, if there is a net decrease in Partnership Minimum Gain during any Partnership Year, each Partner shall be specially allocated
items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s
share of the net decrease in Partnership Minimum Gain, as determined under Regulations Section 1.704-2(g). Allocations pursuant
to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant
thereto. The items to be so allocated shall be determined in accordance with Regulations Section 1.704-2(f)(6). This Section 1.A
is intended to comply with the minimum gain chargeback requirements in Regulations Section 1.704-2(f) and, for purposes of this
Section 1.A only, each Partner’s Adjusted Capital Account Deficit shall be determined prior to any other allocations pursuant
to Section 6.01 of the Agreement with respect to such Partnership Year and without regard to any decrease in Partner Minimum Gain
during such Partnership Year.

 

B.           Partner
Minimum Gain Chargeback. Notwithstanding any other provision of Section 6.01 of this Agreement or any other provisions of this
Exhibit C (except Section 1.A hereof), if there is a net decrease in Partner Minimum Gain attributable to a Partner Nonrecourse
Debt during any Partnership Year, each Partner who has a share of the Partner Minimum Gain attributable to such Partner Nonrecourse
Debt, determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of Partnership income
and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s share of the net decrease
in Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5).
Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to
each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations Section 1.704-2(i)(4).
This Section 1.B is intended to comply with the minimum gain chargeback requirement in such Section of the Regulations and shall
be interpreted consistently therewith. Solely for purposes of this Section 1.B, each Partner’s Adjusted Capital Account Deficit
shall be determined prior to any other allocations pursuant to Section 6.01 of the Agreement or this Exhibit C with respect
to such Partnership Year, other than allocations pursuant to Section 1.A hereof.

 

C.           Qualified
Income Offset. In the event any Partner unexpectedly receives any adjustments, allocations or distributions described in Regulations
Sections 1.704-l(b)(2)(ii)(d)(4), 1.704-l(b)(2)(ii)(d)(5), or 1.704-l(b)(2)(ii)(d)(6), and after giving effect to the allocations
required under Sections 1.A and 1.B hereof with respect to such Partnership Year, such Partner has an Adjusted Capital Account
Deficit, items of Partnership income and gain (consisting of a pro rata portion of each item of Partnership income, including gross
income and gain for the Partnership Year) shall be specially allocated to such Partner in an amount and manner sufficient to eliminate,
to the extent required by the Regulations, its Adjusted Capital Account Deficit created by such adjustments, allocations or distributions
as quickly as possible. This Section 1.C is intended to constitute a “qualified income offset” under Regulations Section
1.704-l(b)(2)(ii)(d) and shall be interpreted consistently therewith.

 

    	C-1

    	 

    

 

D.           Gross
Income Allocation. In the event that any Partner has an Adjusted Capital Account Deficit at the end of any Partnership Year
(after taking into account allocations to be made under the preceding paragraphs hereof with respect to such Partnership Year),
each such Partner shall be specially allocated items of Partnership income and gain (consisting of a pro rata portion of each item
of Partnership income, including gross income and gain for the Partnership Year) in an amount and manner sufficient to eliminate,
to the extent required by the Regulations, its Adjusted Capital Account Deficit.

 

E.           Nonrecourse
Deductions. Nonrecourse Deductions for any Partnership Year shall be allocated to the holders of Class A Units in accordance
with their respective Percentage Interests. If the General Partner determines in its good faith discretion that the Partnership’s
Nonrecourse Deductions must be allocated in a different ratio to satisfy the safe harbor requirements of the Regulations promulgated
under Section 704(b) of the Code, the General Partner is authorized, upon notice to the Limited Partners, to revise the prescribed
ratio for such Partnership Year to the numerically closest ratio which would satisfy such requirements.

 

F.           Partner
Nonrecourse Deductions. Any Partner Nonrecourse Deductions for any Partnership Year shall be specially allocated to the Partner
who bears the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are
attributable in accordance with Regulations Sections 1.704-2(b)(4) and 1.704-2(i).

 

G.          Code Section 754 Adjustments. To the extent
an adjustment to the adjusted tax basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code is required,
pursuant to Regulations Section 1.704-l(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such
adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or
loss (if the adjustment decreases such basis), and such item of gain or loss shall be specially allocated to the Partners in a
manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such Section of the Regulations.

 

H.           Forfeiture
Allocations. Upon a forfeiture of any unvested Partnership Interest by any Partner, gross items of income, gain, loss or deduction
shall be allocated to such Partner if and to the extent required by final Treasury Regulations promulgated after the Effective
Date to ensure that allocations made with respect to all unvested Partnership Interests are recognized under Code Section 704(b).

 

2.           Allocations
for Tax Purposes

 

A.           Except
as otherwise provided in this Section 2, for federal income tax purposes, each item of income, gain, loss and deduction shall be
allocated among the Partners in the same manner as its correlative item of “book” income, gain, loss or deduction is
allocated pursuant to Section 6.01 of the Agreement and Section 1 of this Exhibit C.

 

    	C-2

    	 

    

 

B.           In
an attempt to eliminate Book-Tax Disparities attributable to a Contributed Property or Adjusted Property, items of income, gain,
loss, and deduction shall be allocated for federal income tax purposes among the Partners as follows:

 

(a)          
In the case of a Contributed Property, such items attributable thereto shall be allocated among the Partners consistent with the
principles of Section 704(c) of the Code to take into account the variation between the 704(c) Value of such property and its adjusted
basis at the time of contribution (taking into account Section 2.C of this Exhibit C); and

 

(b)          Any
item of Residual Gain or Residual Loss attributable to a Contributed Property shall be allocated among the Partners in the same
manner as its correlative item of “book” gain or loss is allocated pursuant to Section 6.01 of the Agreement and Section
1 of this Exhibit C.

 

(c)         In the case of an Adjusted Property,
such items shall

 

(i)          first,
be allocated among the Partners in a manner consistent with the principles of Section 704 (c) of the Code to take into account
the Unrealized Gain or Unrealized Loss attributable to such property and the allocations thereof pursuant to Exhibit B to
the Agreement;

 

(ii)         second,
in the event such property was originally a Contributed Property, be allocated among the Partners in a manner consistent with Section
2.B(d) of this Exhibit C; and

 

(d)          Any
item of Residual Gain or Residual Loss attributable to an Adjusted Property shall be allocated among the Partners in the same manner
its correlative item of “book” gain or loss is allocated pursuant to Section 6.01 of the Agreement and Section 1 of
this Exhibit C.

 

C.           To
the extent Regulations promulgated pursuant to Section 704(c) of the Code permit a Partnership to utilize alternative methods to
eliminate the disparities between the Carrying Value of property and its adjusted basis, the General Partner shall have the authority
to elect the method to be used by the Partnership and such election shall be binding on all Partners.

 

    	C-3

    	 

    

 

EXHIBIT D

NOTICE OF REDEMPTION

 

The undersigned hereby
irrevocably (i) tenders for redemption Partnership Units in GPT Property Trust LP in accordance with the terms of the Agreement
of Limited Partnership of GPT Property Trust LP, as amended, and the Redemption Right referred to therein, (ii) surrenders such
Partnership Units and all right, title and interest therein and (iii) directs that the Cash Amount or Shares Amount (as determined
by the General Partner) deliverable upon exercise of the Redemption Right be delivered to the address specified below, and if Shares
are to be delivered, such Shares be registered or placed in the name(s) and at the address(es) specified below. The undersigned
hereby represents, warrants, and certifies that the undersigned (a) has marketable and unencumbered title to such Partnership Units,
free and clear of the rights of or interests of any other person or entity, (b) has the full right, power and authority to redeem
and surrender such Partnership Units as provided herein and (c) has obtained the consent or approval of all persons or entities,
if any, having the right to consult or approve such redemption and surrender.

 

Dated: Name of Limited Partner:

 

(Signature of Limited Partner)

 

(Street Address)

 

If Shares are to be issued, issue to:

 

Name:

 

Please insert social security or identifying number:

 

    	D-1

    	 

    

 

EXHIBIT E

 

GPT PROPERTY TRUST LP

 

DESIGNATION OF THE RIGHTS, POWERS, PRIVILEGES,

RESTRICTIONS, QUALIFICATIONS AND LIMITATIONS

OF THE LTIP UNITS

 

The following are the
terms of the LTIP Units:

 

1.           Vesting.

 

A.           Vesting,
Generally. LTIP Units may, in the sole discretion of the General Partner, be issued subject to vesting, forfeiture and additional
restrictions on transfer pursuant to the terms of an award, vesting or other similar agreement (a “Vesting Agreement”).
The terms of any Vesting Agreement may be modified by the General Partner from time to time in its sole discretion, subject to
any restrictions on amendment imposed by the relevant Vesting Agreement or by the terms of any plan pursuant to which the LTIP
Units are issued, if applicable. LTIP Units that have vested and are no longer subject to forfeiture under the terms of a Vesting
Agreement are referred to as “Vested LTIP Units”; all other LTIP Units are referred to as “Unvested LTIP Units.”
Subject to the terms of any Vesting Agreement, a holder of LTIP Units shall be entitled to transfer his or her LTIP Units to the
same extent, and subject to the same restrictions as holders of Class A Units are entitled to transfer their Class A Units pursuant
to Article XI of the Agreement.

 

B.           Forfeiture
or Transfer of Unvested LTIP Units. Unless otherwise specified in the relevant Vesting Agreement, upon the occurrence of any
event specified in a Vesting Agreement as resulting in either the forfeiture of any LTIP Units, or the right of the Partnership
or the General Partner to repurchase LTIP Units at a specified purchase price, then upon the occurrence of the circumstances resulting
in such forfeiture or if the Partnership or the General Partner exercises such right to repurchase, then the relevant LTIP Units
shall immediately, and without any further action, be treated as cancelled or transferred to the General Partner, as applicable,
and no longer outstanding for any purpose. Unless otherwise specified in the Vesting Agreement, no consideration or other payment
shall be due with respect to any LTIP Units that have been forfeited, other than any distributions declared with a record date
prior to the effective date of the forfeiture. In connection with any forfeiture or repurchase of LTIP Units, the balance of the
portion of the Capital Account of the holder that is attributable to all of his or her LTIP Units shall be reduced by the amount,
if any, by which it exceeds the target balance contemplated by Section 6.01.D of the Agreement, calculated with respect to the
holder’s remaining LTIP Units, if any.

 

C.           Legend.
Any certificate evidencing an LTIP Unit shall bear an appropriate legend indicating that additional terms, conditions and restrictions
on transfer, including without limitation any Vesting Agreement, apply to the LTIP Unit.

 

    	E-1

    	 

    

  

2.           Distributions.

 

A.           LTIP
Distribution Amount. Commencing from the Distribution Participation Date (as defined below) established for any LTIP Units,
for any quarterly or other period holders of such LTIP Units shall be entitled to receive, if, when and as authorized by the General
Partner out of funds legally available for the payment of distributions, regular cash distributions in an amount per unit equal
to the distribution payable on each Class A Unit for the corresponding quarterly or other period (or, if applicable, for that portion
of the quarterly or other period that begins on the Distribution Participation Date) (the “LTIP Distribution Amount”).
In addition, from and after the Distribution Participation Date, LTIP Units shall be entitled to receive, if, when and as authorized
by the General Partner out of funds or other property legally available for the payment of distributions, non-liquidating special,
extraordinary or other distributions in an amount per unit equal to the amount of any non-liquidating special, extraordinary or
other distributions payable on the Class A Units which may be made from time to time. LTIP Units shall also be entitled to receive,
if, when and as authorized by the General Partner out of funds or other property legally available for the payment of distributions,
distributions representing proceeds of a sale or other disposition of all or substantially all of the assets of the Partnership
in an amount per unit equal to the amount of any such distributions payable on the Class A Units, whether made prior to, on or
after the Distribution Participation Date, provided that the amount of such distributions shall not exceed the positive balances
of the Capital Accounts of the holders of such LTIP Units to the extent attributable to the ownership of such LTIP Units. Distributions
on the LTIP Units, if authorized, shall be payable on such dates and in such manner as may be authorized by the General Partner
(any such date, a “Distribution Payment Date”); provided that the Distribution Payment Date and the record date
for determining which holders of LTIP Units are entitled to receive a distribution shall be the same as the corresponding dates
relating to the corresponding distribution on the Class A Units.

 

B.           Distribution
Participation Date. The “Distribution Participation Date” for each LTIP Unit will be either (i) with respect
to LTIP Units granted pursuant to the General Partner’s 2012 Long-Term Outperformance Plan (the “2012 Outperformance
Plan”), the applicable Valuation Date (as defined in the Vesting Agreement of each Person granted LTIP Units under the
2012 Outperformance Plan) or (ii) with respect to other LTIP Units, such date as may be specified in the Vesting Agreement or other
documentation pursuant to which such LTIP Units are issued.

 

3.            Allocations.

 

Commencing with the portion of the taxable
year of the Partnership that begins on the Distribution Participation Date established for any LTIP Units, such LTIP Units shall
be allocated Net Income and Net Loss in amounts per LTIP Unit equal to the amounts allocated per Class A Unit. The allocations
provided by the preceding sentence shall be subject to the proviso to the first sentence of Section 6.01.B of the Agreement. The
General Partner is authorized in its discretion to delay or accelerate the participation of the LTIP Units in allocations of Net
Income and Net Loss, or to adjust the allocations made after the Distribution Participation Date, so that the ratio of (i) the
total amount of Net Income or Net Loss allocated with respect to each LTIP Unit in the taxable year in which that LTIP Unit’s
Distribution Participation Date falls, to (ii) the total amount distributed to that LTIP Unit with respect to such period, is more
nearly equal to such ratio as computed for the Class A Units held by the General Partner.

 

    	E-2

    	 

    

 

4.            Adjustments.

 

The Partnership shall maintain at all
times a one-to-one correspondence between LTIP Units and Class A Units for conversion, distribution and other purposes,
including without limitation complying with the following procedures; provided that the foregoing is not intended to alter
the Capital Account Limitation (as defined in Section 7.C of this Exhibit E), the special allocations pursuant to
Section 6.01.D of the Partnership Agreement, differences between non-liquidating distributions to be made with respect to the
LTIP Units and Class A Units prior to the Distribution Participation Date for such LTIP Units, differences between
liquidating distributions to be made with respect to the LTIP Units and Class A Units pursuant to Section 13.02 of the
Partnership Agreement or Section 2.A of this Exhibit E in the event that the Capital Accounts attributable to the LTIP
Units are less than those attributable to the Class A Units due to insufficient special allocations pursuant to Section
6.01.D of the Partnership Agreement or related provisions. If an Adjustment Event (as defined below) occurs, then the General
Partner shall make a corresponding adjustment to the LTIP Units to maintain such one-for-one correspondence between Class A
Units and LTIP Units. The following shall be “Adjustment Events”: (A) the Partnership makes a distribution
on all outstanding Class A Units in Partnership Units, (B) the Partnership subdivides the outstanding Class A Units into a
greater number of units or combines the outstanding Class A Units into a smaller number of units, or (C) the
Partnership issues any Partnership Units in exchange for its outstanding Class A Units by way of a reclassification or
recapitalization of its Class A Units. If more than one Adjustment Event occurs, the adjustment to the LTIP Units need be
made only once using a single formula that takes into account each and every Adjustment Event as if all Adjustment Events
occurred simultaneously. For the avoidance of doubt, the following shall not be Adjustment Events: (x) the issuance of
Partnership Units in a financing, reorganization, acquisition or other similar business transaction, (y) the issuance of
Partnership Units pursuant to any employee benefit or compensation plan or distribution reinvestment plan, or (z) the
issuance of any Partnership Units to the General Partner in respect of a capital contribution to the Partnership of proceeds
from the sale of securities by the General Partner. If the Partnership takes an action affecting the Class A Units other than
actions specifically described above as Adjustment Events and in the opinion of the General Partner such action would require
an adjustment to the LTIP Units to maintain the one-to-one correspondence described above, the General Partner shall have the
right to make such adjustment to the LTIP Units, to the extent permitted by law and by the terms of any plan pursuant to
which the LTIP Units have been issued, in such manner and at such time as the General Partner, in its sole discretion, may
determine to be appropriate under the circumstances. If an adjustment is made to the LTIP Units as herein provided the
Partnership shall promptly file in the books and records of the Partnership an officer’s certificate setting forth such
adjustment and a brief statement of the facts requiring such adjustment, which certificate shall be conclusive evidence of
the correctness of such adjustment absent manifest error. Promptly after filing of such certificate, the Partnership
shall mail a notice to each holder of LTIP Units setting forth the adjustment to his or her LTIP Units and the effective date
of such adjustment.

 

    	E-3

    	 

    

 

5.            Ranking.

 

The LTIP Units shall rank on parity with
the Class A Units in all respects, subject to the proviso in the first sentence of Section 4 of this Exhibit E.

 

6.            No
Liquidation Preference.

 

The LTIP Units shall have no liquidation
preference.

 

7.            Right
to Convert LTIP Units into Class A Units.

 

A.           Conversion
Right. A holder of LTIP Units shall have the right (the “Conversion Right”), at his or her option, at any
time to convert all or a portion of his or her Vested LTIP Units into Class A Units. Holders of LTIP Units shall not have the right
to convert Unvested LTIP Units into Class A Units until they become Vested LTIP Units; provided, however, that when
a holder of LTIP Units is notified of the expected occurrence of an event that will cause his or her Unvested LTIP Units to become
Vested LTIP Units, such Person may give the Partnership a Conversion Notice conditioned upon and effective as of the time of vesting,
and such Conversion Notice, unless subsequently revoked by the holder of the LTIP Units, shall be accepted by the Partnership subject
to such condition. The General Partner shall have the right at any time to cause a conversion of Vested LTIP Units into Class A
Units. In all cases, the conversion of any LTIP Units into Class A Units shall be subject to the conditions and procedures set
forth in this Section 7.

 

B.           Number
of Units Convertible. A holder of Vested LTIP Units may convert such Vested LTIP Units into an equal number of fully paid and
non-assessable Class A Units, giving effect to all adjustments (if any) made pursuant to Section 4. Notwithstanding the foregoing,
in no event may a holder of Vested LTIP Units convert a number of Vested LTIP Units that exceeds (x) the Economic Capital Account
Balance of such holder, to the extent attributable to its ownership of LTIP Units, divided by (y) the Class A Unit Economic Balance,
in each case as determined as of the effective date of conversion (the “Capital Account Limitation”).

 

C.           Notice.
In order to exercise his or her Conversion Right, a holder of LTIP Units shall deliver a notice (a “Conversion Notice”)
in the form attached as Attachment A to this Exhibit E to the Partnership not less than 10 nor more than 60 days prior to
a date (the “Conversion Date”) specified in such Conversion Notice. Each holder of LTIP Units covenants and
agrees with the Partnership that all Vested LTIP Units to be converted pursuant to this Section 7 shall be free and clear of all
liens. Notwithstanding anything herein to the contrary, a holder of LTIP Units may deliver a Redemption Notice pursuant to Section
8.06 of the Agreement relating to those Class A Units that will be issued to such holder upon conversion of such LTIP Units into
Class A Units in advance of the Conversion Date; provided, however, that the redemption of such Class A Units by
the Partnership shall in no event take place until the Conversion Date. For clarity, it is noted that the objective of this paragraph
is to put a holder of LTIP Units in a position where, if he or she so wishes, the Class A Units into which his or her Vested LTIP
Units will be converted can be redeemed by the Partnership simultaneously with such conversion, with the further consequence that,
if the General Partner elects to assume the Partnership’s redemption obligation with respect to such Class A Units under
Section 8.06 of the Agreement by delivering to such holder Shares rather than cash, then such holder can have such Shares issued
to him or her simultaneously with the conversion of his or her Vested LTIP Units into Class A Units. The General Partner shall
cooperate with a holder of LTIP Units to coordinate the timing of the different events described in the foregoing sentence.

 

    	E-4

    	 

    

 

D.           Forced
Conversion. The Partnership, at any time at the election of the General Partner, may cause any number of Vested LTIP Units
held by a holder of LTIP Units to be converted (a “Forced Conversion”) into an equal number of Class A Units,
giving effect to all adjustments (if any) made pursuant to Section 4; provided, that the Partnership may not cause a Forced
Conversion of any LTIP Units that would not at the time be eligible for conversion at the option of the holder of such LTIP Units
pursuant to Section 7.B above. In order to exercise its right to cause a Forced Conversion, the Partnership shall deliver a notice
(a “Forced Conversion Notice”) in the form attached as Attachment B to this Exhibit E to the applicable
holder not less than 10 nor more than 60 days prior to the Conversion Date specified in such Forced Conversion Notice. A Forced
Conversion Notice shall be provided in the manner provided in Section 15.01 of the Agreement.

 

E.           Conversion
Procedures. A conversion of Vested LTIP Units for which the holder thereof has given a Conversion Notice or the Partnership
has given a Forced Conversion Notice shall occur automatically after the close of business on the applicable Conversion Date without
any action on the part of such holder of LTIP Units, as of which time such holder of LTIP Units shall be credited on the books
and records of the Partnership with the issuance as of the opening of business on the next day of the number of Class A Units issuable
upon such conversion. After the conversion of LTIP Units as aforesaid, the Partnership shall deliver to such holder of LTIP Units,
upon his or her written request, a certificate of the General Partner certifying the number of Class A Units and remaining LTIP
Units, if any, held by such Person immediately after such conversion.

 

F.           Treatment
of Capital Account. For purposes of making future allocations under Section 6.01.D of the Agreement and applying the Capital
Account Limitation, the portion of the Economic Capital Account balance of the applicable holder of LTIP Units that is treated
as attributable to his or her LTIP Units shall be reduced, as of the date of conversion, by the product of the number of LTIP Units
converted multiplied by the Class A Unit Economic Balance.

 

G.           Mandatory
Conversion in Connection with a Transaction. If the Partnership or the General Partner shall be a party to any transaction
(including without limitation a merger, consolidation, unit exchange, self tender offer for all or substantially all Class A Units
or other business combination or reorganization, or sale of all or substantially all of the Partnership’s assets, but excluding
any transaction which constitutes an Adjustment Event), in each case as a result of which Class A Units shall be exchanged for
or converted into the right, or the holders of Class A Units shall otherwise be entitled, to receive cash, securities or other
property or any combination thereof (each of the foregoing being referred to herein as a “Transaction”), then
the General Partner shall, immediately prior to the Transaction, exercise its right to cause a Forced Conversion with respect to
the maximum number of LTIP Units then eligible for conversion, taking into account any allocations that occur in connection with
the Transaction or that would occur in connection with the Transaction if the assets of the Partnership were sold at the Transaction
price or, if applicable, at a value determined by the General Partner in good faith using the value attributed to the Partnership
Units in the context of the Transaction (in which case the Conversion Date shall be the effective date of the Transaction and the
conversion shall occur immediately prior to the effectiveness of the Transaction).

 

    	E-5

    	 

    

  

In anticipation of such Forced Conversion
and the consummation of the Transaction, the Partnership shall use commercially reasonable efforts to cause each holder of LTIP
Units to be afforded the right to receive in connection with such Transaction in consideration for the Class A Units into which
his or her LTIP Units will be converted the same kind and amount of cash, securities and other property (or any combination thereof)
receivable upon the consummation of such Transaction by a holder of the same number of Class A Units, assuming such holder of Class
A Units is not a Person with which the Partnership consolidated or into which the Partnership merged or which merged into the Partnership
or to which such sale or transfer was made, as the case may be (a “Constituent Person”), or an affiliate of
a Constituent Person. In the event that holders of Class A Units have the opportunity to elect the form or type of consideration
to be received upon consummation of the Transaction, prior to such Transaction the General Partner shall give prompt written notice
to each holder of LTIP Units of such election, and shall use commercially reasonable efforts to afford such holders the right to
elect, by written notice to the General Partner, the form or type of consideration to be received upon conversion of each LTIP
Unit held by such holder into Class A Units in connection with such Transaction. If a holder of LTIP Units fails to make such an
election, such holder (and any of its transferees) shall receive upon conversion of each LTIP Unit held him or her (or by any of
his or her transferees) the same kind and amount of consideration that a holder of a Class A Unit would receive if such holder
of Class A Units failed to make such an election.

 

Subject to the rights of the Partnership
and the General Partner under any Vesting Agreement and the terms of any plan under which LTIP Units are issued, the Partnership
shall use commercially reasonable effort to cause the terms of any Transaction to be consistent with the provisions of this Section
7 and to enter into an agreement with the successor or purchasing entity, as the case may be, for the benefit of any holders of
LTIP Units whose LTIP Units will not be converted into Class A Units in connection with the Transaction that will (i) contain provisions
enabling the holders of LTIP Units that remain outstanding after such Transaction to convert their LTIP Units into securities as
comparable as reasonably possible under the circumstances to the Class A Units and (ii) preserve as far as reasonably possible
under the circumstances the distribution, special allocation, conversion, and other rights set forth in the Agreement for the benefit
of the holders of LTIP Units.

 

8.           Redemption
at the Option of the Partnership.

 

LTIP Units will not be redeemable at the
option of the Partnership; provided, however, that the foregoing shall not prohibit the Partnership from repurchasing LTIP Units
from the holder thereof if and to the extent such holder agrees to sell such Units.

 

    	E-6

    	 

    

 

9.            Voting
Rights.

 

A.           Voting
with Class A Units. Holders of LTIP Units shall have the right to vote on all matters submitted to a vote of the holders of
Class A Units; holders of LTIP Units and Class A Units shall vote together as a single class, together with any other class or
series of units of limited partnership interest in the Partnership upon which like voting rights have been conferred. In any matter
in which the LTIP Units are entitled to vote, including an action by written consent, each LTIP Unit shall be entitled to vote
a Percentage Interest equal on a per unit basis to the Percentage Interest of the Class A Units.

 

B.           Special
Approval Rights. In addition to, and not in limitation of, the provisions of Section 9.A above (and notwithstanding anything
appearing to be contrary in the Agreement), the General Partner and/or the Partnership shall not, without the affirmative consent
of the holders of sixty-six and two-thirds percent (66 2/3%) of the then outstanding LTIP Units, given in person or by proxy, either
in writing or at a meeting, take any action that would materially and adversely alter, change, modify or amend the rights, powers
or privileges of the LTIP Units; but subject in any event to the following provisions: (i) no consent of the holders of LTIP Units
will be required if and to the extent that any such alteration, change, modification or amendment would similarly alter, change,
modify or amend the rights, powers or privileges of the Class A Units; (ii) with respect to the occurrence of any merger, consolidation
or other business combination or reorganization, so long as the LTIP Units either (x) are all converted into Class A Units immediately
prior to the effectiveness of the transaction, (y) remain outstanding with the terms thereof materially unchanged or (z) if the
Partnership is not the surviving entity in such transaction, are exchanged for a security of the surviving entity with terms that
are materially the same with respect to rights to allocations, distributions, redemption, conversion and voting as the LTIP Units
and without any income, gain or loss expected to be recognized by the holder upon the exchange for federal income tax purposes
(and with the terms of the Class A Units or such other securities into which the LTIP Units (or the substitute security therefor)
are convertible materially the same with respect to rights to allocations, distributions, redemption, conversion and voting), the
occurrence of any such event shall not be deemed to materially and adversely alter, change, modify or amend the rights, powers
or privileges of the LTIP Units, provided further, that if some, but not all, of the LTIP Units are converted into Class A Units
immediately prior to the effectiveness of the transaction (and neither clause (y) or (z) above is applicable), then the consent
required pursuant to this section will be the consent of the holders of sixty-six and two-thirds percent (66 2/3%) of the LTIP
Units to be outstanding following such conversion; (iii) any creation or issuance of any Class A Units or of any class of series
of common or preferred units of the Partnership (whether ranking junior to, on a parity with or senior to the LTIP Units with respect
to payment of distributions, redemption rights and the distribution of assets upon liquidation, dissolution or winding up), which
either (x) does not require the consent of the holders of Class A Units or (y) does require such consent and is authorized by a
vote of the holders of Class A Units; and LTIP Units voting together as a single class, together with any other class or series
of units of limited partnership interest in the Partnership upon which like voting rights have been conferred, shall not be deemed
to materially and adversely alter, change, modify or amend the rights, powers or privileges of the LTIP Units; and (iv) any waiver
by the Partnership of restrictions or limitations applicable to any outstanding LTIP Units with respect to any holder or holders
thereof shall not be deemed to materially and adversely alter, change, modify or amend the rights, powers or privileges of the
LTIP Units with respect to other holders. The foregoing voting provisions will not apply if, as of or prior to the time when the
action with respect to which such vote would otherwise be required will be taken or be effective, all outstanding LTIP Units shall
have been converted and/or redeemed, or provision is made for such redemption and/or conversion to occur as of or prior to such
time.

 

    	E-7

    	 

    

  

Attachment A to Exhibit E

 

Notice of Election by Partner to Convert

LTIP Units into Class A Units

 

The undersigned holder of LTIP Units hereby
irrevocably elects to convert the number of Vested LTIP Units in GPT Property Trust LP (the “Partnership”) set
forth below into Class A Units in accordance with the terms of the Fourth Amended and Restated Agreement of Limited Partnership
of the Partnership, as amended. The undersigned hereby represents, warrants, and certifies that the undersigned: (a) has title
to such LTIP Units, free and clear of the rights or interests of any other person or entity other than the Partnership; (b) has
the full right, power, and authority to cause the conversion of such LTIP Units as provided herein; and (c) has obtained the consent
or approval of all persons or entities, if any, having the right to consent or approve such conversion.

 

Name of Holder:___________________________________________________________________

(Please Print: Exact Name as
Registered with Partnership)

 

Number of LTIP Units to be Converted: __________________________________________________

 

Conversion Date:___________________________________________________________________

 

_________________________________________________________________________________

(Signature of Holder: Sign Exact Name as Registered
with Partnership)

 

_________________________________________________________________________________

(Street Address)

 

	 	 	 	 	 
	(City)	 	(State)	 	(Zip Code)

 

Signature Guaranteed by:

 

    	 

    	 

    

 

Attachment B to Exhibit E

 

Notice of Election by Partnership to
Force Conversion

of LTIP Units into Class A Units

 

GPT Property Trust LP (the “Partnership”)
hereby irrevocably elects to cause the number of LTIP Units held by the holder of LTIP Units set forth below to be converted into
Class A Units in accordance with the terms of the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership,
as amended.

 

Name of Holder:_____________________________________________________________

(Please Print: Exact Name as
Registered with Partnership)

 

Number of LTIP Units to be Converted: ___________________________________________

 

Conversion Date:____________________________________________________________

 

    	 

    	 

    

 

EXHIBIT F

DESIGNATION OF THE PREFERENCES, CONVERSION

AND OTHER RIGHTS, VOTING POWERS, RESTRICTIONS,

LIMITATIONS AS TO DISTRIBUTIONS, QUALIFICATIONS
AND TERMS

AND CONDITIONS OF REDEMPTION

 

OF THE

 

8.125% SERIES A CUMULATIVE REDEEMABLE
PREFERRED UNITS

 

1.            Definitions.

 

In addition to those terms defined in the
Agreement, the following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to
the terms used in the Agreement and this Exhibit F:

 

“Annual Distribution Rate”
shall have the meaning set forth in 2(B)(i) hereof.

 

“Board of Directors”
shall mean the Board of Directors of the General Partner or any committee authorized by such Board of Directors to perform any
of its responsibilities with respect to the Series A Preferred Stock.

 

“change of control” shall
be deemed to have occurred at such time as (i) the date a “person” or “group” (within the meaning of Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Securities Exchange Act”)) becomes the ultimate
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act, except that a person or
group shall be deemed to have beneficial ownership of all shares of voting stock that such person or group has the right to acquire
regardless of when such right is first exercisable), directly or indirectly, of voting stock representing more than 50% of the
total voting power of the total voting stock of the General Partner; (ii) the date the General Partner sells, transfers or otherwise
disposes of all or substantially all of its assets; or (iii) the date of the consummation of a merger or share exchange of the
General Partner with another entity where stockholders of the General Partner immediately prior to the merger or share exchange
would not beneficially own, immediately after the merger or share exchange, shares representing 50% or more of all votes (without
consideration of the rights of any class of stock to elect directors by a separate group vote) to which all stockholders of the
corporation issuing cash or securities in the merger or share exchange would be entitled in the election of directors, or where
members of the Board of Directors immediately prior to the merger or share exchange would not immediately after the merger or share
exchange constitute a majority of the board of directors of the corporation issuing cash or securities in the merger or share exchange.

 

    	F-1

    	 

    

  

“8.125% Series A Cumulative Redeemable
Preferred Units” means a Partnership Unit issued by the Partnership to the General Partner in consideration of the contribution
by the General Partner to the Partnership of the entire net proceeds received by the General Partner from the issuance of the Series
A Preferred Stock. The 8.125% Series A Cumulative Redeemable Preferred Units are Partnership Units. The 8.125% Series A Cumulative
Redeemable Preferred Units shall have the preferences, conversion and other rights, voting powers, restrictions, limitations as
to distributions, qualifications and terms and conditions of redemption as are set forth in this Exhibit F. It is the intention
of the General Partner, in establishing the 8.125% Series A Cumulative Redeemable Preferred Units that each 8.125% Series A Cumulative
Redeemable Preferred Unit shall be substantially the economic equivalent of a share of Series A Preferred Stock.

 

“Common Stock” shall
mean the common stock, of the General Partner, par value $.001 per share.

 

“Distribution Payment Date”
shall mean April 15, July 15, October 15 and January 15, of each year, commencing on or about July 15, 2007; provided, however,
that if any Distribution Payment Date falls on any day other than a Unit Business Day, the distribution payment due on such Distribution
Payment Date shall be paid on the first Unit Business Day immediately following such Distribution Payment Date.

 

“Distribution Periods”
shall mean quarterly distribution periods commencing on, and including, April 15, July 15, October 15 and January 15 of each year
and ending on and including the day preceding the first day of the next succeeding Distribution Period (other than the initial
Distribution Period with respect to each 8.125% Series A Cumulative Redeemable Preferred Unit, which, (i) for 8.125% Series A Cumulative
Redeemable Preferred Units issued prior to July 15, 2007, shall commence on, but exclude, the date of original issue by the Partnership
of any 8.125% Series A Cumulative Redeemable Preferred Units and end on and include the day preceding the first day of the next
succeeding Distribution Period; and (ii) for 8.125% Series A Cumulative Redeemable Preferred Units issued on or after July 15,
2007, shall commence on the Distribution Payment Date with respect to which distributions were actually paid on 8.125% Series A
Cumulative Redeemable Preferred Units that were outstanding immediately preceding the issuance of such 8.125% Series A Cumulative
Redeemable Preferred Units and end on and include the day preceding the first day of the next succeeding Distribution Period).

 

“Dividend Payment Date”
shall mean a dividend payment date with respect to the Series A Preferred Stock. “Dividend Periods” shall mean the
quarterly dividend periods with respect to the Series A Preferred Stock.

 

“Series A Preferred Stock”
means the 8.125% Series A Cumulative Redeemable Preferred Stock par value $.001 per share, liquidation preference $25.00 per share,
issued by the General Partner.

 

“set apart for payment”
shall be deemed to include, without any action other than the following, the recording by the Partnership or the General Partner
on behalf of the Partnership in its accounting ledgers of any accounting or bookkeeping entry which indicates, pursuant to a declaration
of a distribution by the General Partner, the allocation of funds to be so paid on any series or class of Partnership Units; provided,
however, that if any funds for any class or series of Junior Units or any class or series of Partnership Units ranking on a parity
with the 8.125% Series A Cumulative Redeemable Preferred Units as to the payment of distributions are placed in a separate account
of the Partnership or delivered to a disbursing, paying or other similar agent, then “set apart for payment” with respect
to the 8.125% Series A Cumulative Redeemable Preferred Units shall mean placing such funds in a separate account or delivering
such funds to a disbursing, paying or other similar agent.

 

    	F-2

    	 

    

  

“Unit Business Day” shall
mean any day other than a Saturday, Sunday or a day on which state or federally chartered banking institutions in New York, New
York are not required to be open.

 

“voting stock” shall
mean stock of any class or kind of the General Partner having the power to vote generally in the election of directors.

 

2.            Terms
of the 8.125% Series A Cumulative Redeemable Preferred Units.

 

A.           Number.
As of the close of business on the date of the amendment pursuant to which this Exhibit F was adopted, the total number
of 8.125% Series A Cumulative Redeemable Preferred Units that the Partnership is authorized to issue shall be 4,600,000 and the
total number of 8.125% Series A Cumulative Redeemable Preferred Units issued and outstanding will be 4,600,000. The General Partner
may issue additional 8.125% Series A Cumulative Redeemable Preferred Units from time to time in accordance with the terms of the
Agreement, and in connection with any such additional issuance the General Partner shall revise Exhibit A to the Agreement
to reflect the total number of 8.125% Series A Cumulative Redeemable Preferred Units then issued and outstanding.

 

B.            Distributions

 

(i)          The
General Partner, in its capacity as the holder of the then outstanding 8.125% Series A Cumulative Redeemable Preferred Units, shall
be entitled to receive, when, as and if declared by the General Partner, distributions payable in cash at the rate per annum of
$2.03125 per 8.125% Series A Cumulative Redeemable Preferred Unit (the “Annual Distribution Rate”). Such distributions
with respect to each 8.125% Series A Cumulative Redeemable Preferred Unit issued prior to July 15, 2007 shall be cumulative from,
and including, the date of original issue by the Partnership of any 8.125% Series A Cumulative Redeemable Preferred Unit and with
respect to 8.125% Series A Cumulative Redeemable Preferred Units issued on or after July 15, 2007 shall be cumulative from the
Distribution Payment Date with respect to dividends that were actually paid on 8.125% Series A Cumulative Redeemable Preferred
Units that were outstanding immediately preceding the issuance of such 8.125% Series A Cumulative Redeemable Preferred Units, and
shall be payable quarterly, when, as and if authorized and declared by the General Partner, in arrears on each Distribution Payment
Date commencing with respect to each 8.125% Series A Cumulative Redeemable Preferred Unit on the first Distribution Payment Date
following the issuance of such 8.125% Series A Cumulative Redeemable Preferred Unit; provided that the amount per
8.125% Series A Cumulative Redeemable Preferred Unit to be paid in respect of the initial Distribution Period shall be determined
in accordance with paragraph (ii) below. Accrued and unpaid distributions for any past Distribution Periods may be declared and
paid at any time, without reference to any regular Distribution Payment Date. If following a change of control, the Series A Preferred
Stock is not listed on the New York Stock Exchange or the American Stock Exchange or quoted on NASDAQ, the Annual Distribution
Rate will be increased to $2.28125 per 8.125% Series A Cumulative Redeemable Preferred Unit and the General Partner as the holder
of the 8.125% Series A Cumulative Redeemable Preferred Units shall be entitled to receive, when, as and if declared by the General
Partner out of assets legally available for that purpose, distributions payable in cash cumulative from, but excluding, the first
date on which both the change of control has occurred and the Series A Preferred Stock is not so listed or quoted at the increased
Annual Distribution Rate for as long as the Series A Preferred Stock is not so listed or quoted.

 

    	F-3

    	 

    

  

(ii)         The
amount of distributions payable for each full Distribution Period for the 8.125% Series A Cumulative Redeemable Preferred Units
shall be computed by dividing the Annual Distribution Rate by four. The amount of distributions payable for the initial Distribution
Period, or any other period shorter or longer than a full Distribution Period, on the 8.125% Series A Cumulative Redeemable Preferred
Units shall be computed on the basis of twelve 30-day months and a 360-day year. The General Partner, in its capacity as the holder
of the then outstanding 8.125% Series A Cumulative Redeemable Preferred Units, shall not be entitled to any distributions, whether
payable in cash, property or stock, in excess of cumulative distributions, as herein provided, on the 8.125% Series A Cumulative
Redeemable Preferred Units. No interest, or sum of money in lieu of interest, shall be payable in respect of any distribution payment
or payments on the 8.125% Series A Cumulative Redeemable Preferred Units that may be in arrears.

 

(iii)        So
long as any 8.125% Series A Cumulative Redeemable Preferred Units are outstanding, no distributions, except as described in the
immediately following sentence, shall be declared or paid or set apart for payment on any series or class or classes of Parity
Units or Junior Units for any period unless full cumulative distributions have been or contemporaneously are declared and paid
or declared and a sum sufficient for the payment thereof set apart for such payment on the 8.125% Series A Cumulative Redeemable
Preferred Units for all past Distribution Periods. When distributions are not paid in full or a sum sufficient for such payment
is not set apart, as aforesaid, all distributions declared upon 8.125% Series A Cumulative Redeemable Preferred Units and all distributions
declared upon any other series or class or classes of Parity Units shall be declared ratably in proportion to the respective amounts
of distributions accumulated and unpaid on the 8.125% Series A Cumulative Redeemable Preferred Units and such Parity Units.

 

(iv)        So
long as any 8.125% Series A Cumulative Redeemable Preferred Units are outstanding and except in certain circumstances relating
to the maintenance of the General Partner’s ability to qualify as a real estate investment trust, no distributions (other
than distributions paid solely in Junior Units or options, warrants or rights to subscribe for or purchase Junior Units) shall
be declared or paid or set apart for payment or other distribution declared or made upon Junior Units, nor shall any Junior Units
be redeemed, purchased or otherwise acquired (other than a redemption, purchase or other acquisition of Junior Units made in respect
of a redemption, purchase or other acquisition of Common Stock made for purposes of and in compliance with requirements of an employee
incentive or benefit plan of the General Partner or any subsidiary, or as permitted under the Article VII of the Articles of Incorporation
of the General Partner), for any consideration (or any moneys to be paid to or made available for a sinking fund for the redemption
of any such Junior Units) by the General Partner, directly or indirectly (except by conversion into or exchange for Junior Units),
unless in each case the full cumulative distributions on all outstanding 8.125% Series A Cumulative Redeemable Preferred Units
and any other Parity Units of the Partnership shall have been paid or set apart for payment for all past Distribution Periods with
respect to the 8.125% Series A Cumulative Redeemable Preferred Units and all past distribution periods with respect to such Parity
Units.

 

    	F-4

    	 

    

  

C.           Liquidation
Preference. (i) In the event of any liquidation, dissolution or winding up of the Partnership or the General Partner, whether
voluntary or involuntary, before any payment or distribution of the assets of the Partnership (whether capital or surplus) shall
be made to or set apart for the holders of Junior Units, the General Partner, in its capacity as the holder of the 8.125% Series
A Cumulative Redeemable Preferred Units, shall be entitled to receive, out of the Partnership’s assets legally available
for that purpose, Twenty-Five Dollars ($25.00) per 8.125% Series A Cumulative Redeemable Preferred Unit (the “Liquidation
Preference”) plus an amount per 8.125% Series A Cumulative Redeemable Preferred Unit equal to all distributions (whether
or not earned or declared) accrued and unpaid thereon to the date of final distribution to the General Partner, in its capacity
as such holder; but the General Partner, in its capacity as the holder of 8.125% Series A Cumulative Redeemable Preferred Units,
shall not be entitled to any further payment. If, upon any such liquidation, dissolution or winding up of the Partnership or the
General Partner, the assets of the Partnership, or proceeds thereof, distributable to the General Partner, in its capacity as the
holder of 8.125% Series A Cumulative Redeemable Preferred Units, shall be insufficient to pay in full the Liquidation Preference
and all accrued and unpaid distributions (whether or not earned or declared) and the liquidation preference and all accrued and
unpaid distributions with respect to any other Parity Units, then such assets, or the proceeds thereof, shall be distributed among
the General Partner, in its capacity as the holder of such 8.125% Series A Cumulative Redeemable Preferred Units, and the holders
of any such other Parity Units ratably in accordance with the respective amounts that would be payable on such 8.125% Series A
Cumulative Redeemable Preferred Units and any such other Parity Units if all amounts payable thereon were paid in full. For the
purposes of this Section C, (i) a consolidation or merger of the Partnership or the General Partner with one or more entities,
(ii) a statutory share exchange by the Partnership or the General Partner and (iii) a sale or transfer of all or substantially
all of the Partnership’s or the General Partner’s assets, shall not be deemed to be a liquidation, dissolution or winding
up, voluntary or involuntary, of the Partnership or General Partner.

 

(ii)         Subject
to the rights of the holders of Partnership Units of any series or class or classes of shares ranking on a parity with or prior
to the 8.125% Series A Cumulative Redeemable Preferred Units upon any liquidation, dissolution or winding up of the General Partner
or the Partnership, after payment shall have been made in full to the General Partner, in its capacity as the holder of the 8.125%
Series A Cumulative Redeemable Preferred Units, as provided in this Section C, any series or class or classes of Junior Units shall,
subject to any respective terms and provisions applying thereto, be entitled to receive any and all assets remaining to be paid
or distributed, and the General Partner, in its capacity as the holder of the 8.125% Series A Cumulative Redeemable Preferred Units,
shall not be entitled to share therein.

 

    	F-5

    	 

    

  

D.           Redemption
of the 8.125% Series A Cumulative Redeemable Preferred Units. (i) If at any time following a change of control, the Series
A Preferred Stock is not listed on the New York Stock Exchange or American Stock Exchange, or quoted on NASDAQ, the General Partner
will have the option to cause the Partnership to redeem the 8.125% Series A Cumulative Redeemable Preferred Units, in whole but
not in part, within ninety (90) days after the first date on which both the change of control has occurred and the Series A Preferred
Stock is not so listed or quoted, for cash at $25.00 per 8.125% Series A Cumulative Redeemable Preferred Unit plus any accrued
and unpaid distributions (whether or not declared) with respect to the 8.125% Series A Cumulative Redeemable Preferred Units to
the Redemption Date.

 

(ii)         Except
as set forth in paragraph (i) above or in connection with the redemption of the Series A Preferred Stock by the General Partner
as permitted by the Articles of Incorporation of the General Partner, the 8.125% Series A Cumulative Redeemable Preferred Units
shall not be redeemable prior to April 18, 2012. On and after April 18, 2012, the General Partner may, at its option, cause the
Partnership to redeem the 8.125% Series A Cumulative Redeemable Preferred Units for cash, in whole or in part, as set forth herein,
subject to the provisions described below.

 

(iii)        On
and after April 18, 2012, the 8.125% Series A Cumulative Redeemable Preferred Units may be redeemed, in whole or in part, at the
option of the General Partner, in its capacity as the holder of the 8.125% Series A Cumulative Redeemable Preferred Units, at any
time or from time to time, provided that the General Partner shall redeem an equivalent number of Series A Preferred Stock.
Such redemption of 8.125% Series A Cumulative Redeemable Preferred Units shall occur substantially concurrently with the redemption
by the General Partner of such Series A Preferred Stock (the “Redemption Date”).

 

(iv)        Upon
redemption of 8.125% Series A Cumulative Redeemable Preferred Units by the General Partner on the Redemption Date, each 8.125%
Series A Cumulative Redeemable Preferred Unit so redeemed shall be converted into the right to receive Twenty-Five Dollars ($25.00)
per 8.125% Series A Cumulative Redeemable Preferred Unit, plus any accrued and unpaid distributions with respect to the 8.125%
Series A Cumulative Redeemable Preferred Units to the Redemption Date (the “Redemption Price”).

 

Upon any redemption of 8.125% Series A Cumulative
Redeemable Preferred Units, the Partnership shall pay any accrued and unpaid distributions, in arrears (whether or not earned or
declared), for any Distribution Period ending on or prior to the Redemption Date. If the Redemption Date falls after a Dividend
Payment Record Date and prior to the corresponding Dividend Payment Date, then the General Partner, in its capacity as the holder
of 8.125% Series A Cumulative Redeemable Preferred Units, shall be entitled to distributions payable on the equivalent number of
8.125% Series A Cumulative Redeemable Preferred Units as the number of the Series A Preferred Stock with respect to which the General
Partner shall be required, pursuant to the terms of the Articles of Incorporation, to pay to the holders of Series A Preferred
Stock at the close of business on such Dividend Payment Record Date for the Series A Preferred Stock who, pursuant to such Articles
of Incorporation, are entitled to the dividend payable on such Series A Preferred Stock on the corresponding Dividend Payment Date
notwithstanding the redemption of such Series A Preferred Stock before such Dividend Payment Date. Except as provided above, the
Partnership shall make no payment or allowance for unpaid distributions, whether or not in arrears, on 8.125% Series A Cumulative
Redeemable Preferred Units called for redemption.

 

    	F-6

    	 

    

 

(v)         If
full cumulative distributions on the 8.125% Series A Cumulative Redeemable Preferred Units and any other series or class or classes
of Parity Units of the Partnership have not been paid or declared and set apart for payment, except in connection with a purchase,
redemption or other acquisition of Series A Preferred Stock or shares of capital stock ranking on a parity with such Series A Preferred
Stock as permitted under the Articles of Incorporation of the General Partner, the 8.125% Series A Cumulative Redeemable Preferred
Units may not be redeemed in part and the Partnership may not purchase, redeem or otherwise acquire 8.125% Series A Cumulative
Redeemable Preferred Units or any Parity Units other than in exchange for Junior Units.

 

As promptly as practicable after the surrender
of the certificates for any such 8.125% Series A Cumulative Redeemable Preferred Units so redeemed, such 8.125% Series A Cumulative
Redeemable Preferred Units shall be exchanged for the cash (without interest thereon) for which such 8.125% Series A Cumulative
Redeemable Preferred Units have been redeemed. If fewer than all of the outstanding 8.125% Series A Cumulative Redeemable Preferred
Units are to be redeemed, the 8.125% Series A Cumulative Redeemable Preferred Units to be redeemed shall be selected by the Partnership
from the outstanding 8.125% Series A Cumulative Redeemable Preferred Units not previously called for redemption by lot or pro rata
(with adjustments to avoid redemption of fractional units) or by any other method determined by the General Partner in its sole
discretion to be equitable. If fewer than all the 8.125% Series A Cumulative Redeemable Preferred Units evidenced by any certificate
are to be redeemed, the Partnership shall issue new certificates evidencing the unredeemed 8.125% Series A Cumulative Redeemable
Preferred Units without cost to the holder thereof.

 

E.           Conversion.
The 8.125% Series A Cumulative Redeemable Preferred Units are not convertible into or redeemable or exchangeable for any other
property or securities of the General Partner or the Partnership.

 

F.           Ranking.
(i) Any class or series of Partnership Units shall be deemed to rank:

 

(a)          prior
to the 8.125% Series A Cumulative Redeemable Preferred Units, as to the payment of distributions and as to distribution of assets
upon liquidation, dissolution or winding up of the General Partner or the Partnership, if the holders of such class or series of
Preferred Units shall be entitled to the receipt of distributions or of amounts distributable upon liquidation, dissolution or
winding up, as the case may be, in preference or priority to the holders of 8.125% Series A Cumulative Redeemable Preferred Units
(“Senior Units”);

 

    	F-7

    	 

    

  

(b)          on
a parity with the 8.125% Series A Cumulative Redeemable Preferred Units, as to the payment of distributions and as to the distribution
of assets upon liquidation, dissolution or winding up of the General Partner or the Partnership, whether or not the distribution
rates, distribution payment dates or redemption or liquidation prices per Partnership Unit be different from those of the 8.125%
Series A Cumulative Redeemable Preferred Units, if the holders of such Partnership Units of such class or series and the 8.125%
Series A Cumulative Redeemable Preferred Units shall be entitled to the receipt of distributions and of amounts distributable upon
liquidation, dissolution or winding up in proportion to their respective amounts of accrued and unpaid distributions per Partnership
Unit or liquidation preferences, without preference or priority one over the other (“Parity Units”); and

 

(c)          junior
to the 8.125% Series A Cumulative Redeemable Preferred Units, as to the payment of distributions or as to the distribution of assets
upon liquidation, dissolution or winding up of the General Partner or the Partnership, if such class or series of Partnership Units
shall be Class A Units, LTIP Units or if the holders of 8.125% Series A Cumulative Redeemable Preferred Units, shall be entitled
to receipt of distribution or of amounts distributable upon liquidation, dissolution or winding up, as the case may be, in preference
or priority to the holders of Partnership Units of such class or series (“Junior Units”).

 

(ii)         As
of the date hereof, there are no Senior Units or Parity Units issued and outstanding.

 

G.           Voting.
(i) Except as required by law, the General Partner, in its capacity as the holder of the 8.125% Series A Cumulative Redeemable
Preferred Units, shall not be entitled to vote at any meeting of the Partners or for any other purpose or otherwise to participate
in any action taken by the Partnership or the Partners, or to receive notice of any meeting of the Partners.

 

(ii)         So
long as any 8.125% Series A Cumulative Redeemable Preferred Units are outstanding, the General Partner shall not authorize the
creation of Partnership Units of any new class or series or any interest in the Partnership convertible, exchangeable or redeemable
into Partnership Units of any new class or series ranking prior to the 8.125% Series A Cumulative Redeemable Preferred Units in
the distribution of assets on any liquidation, dissolution or winding up of the General Partner or the Partnership or in the payment
of distributions unless such Partnership Units are issued to the General Partner and the distribution and redemption (but not voting)
rights of such Partnership Units are substantially similar to the terms of securities issued by the General Partner and the proceeds
or other consideration from the issuance of such securities have been or are concurrently with such issuance contributed to the
Partnership.

 

H.           Restrictions
on Ownership and Transfer. The 8.125% Series A Cumulative Redeemable Preferred Units shall be owned and held solely by the
General Partner.

 

I.           General.
(i) The rights of the General Partner, in its capacity as the holder of the 8.125% Series A Cumulative Redeemable Preferred Units,
are in addition to and not in limitation on any other rights or authority of the General Partner, in any other capacity, under
the Agreement. In addition, nothing contained in this Exhibit F shall be deemed to limit or otherwise restrict any rights
or authority of the General Partner under the Agreement, other than in its capacity as the holder of the 8.125% Series A Cumulative
Redeemable Preferred Units.

 

    	F-8

    	 

    

  

(ii)         Anything
herein contained to the contrary notwithstanding, the General Partner shall take all steps that it determines are necessary or
appropriate (including modifying the foregoing terms of the 8.125% Series A Cumulative Redeemable Preferred Units) to ensure that
the 8.125% Series A Cumulative Redeemable Preferred Units (including, without limitation the redemption and conversion terms thereof)
permit the General Partner to satisfy its obligations (including, without limitation, its obligations to make dividend payments
on the Series A Preferred Stock) with respect to the Series A Preferred Stock, it being the intention that the terms of the 8.125%
Series A Cumulative Redeemable Preferred Units shall be substantially similar to the terms of the Series A Preferred Stock.

 

    	F-9

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