Document:

Exhibit 10.1

 

EXECUTION COPY

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS THIRD
AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of June 30, 2005
by and among KITE REALTY GROUP, L.P. (the “Borrower”), KITE REALTY GROUP TRUST
(the “Parent”), the Lenders party hereto and WACHOVIA BANK, NATIONAL
ASSOCIATION, as Agent (the “Agent”).

 

WHEREAS, the
Borrower, the Parent, the Lenders, the Agent and certain other parties thereto
have entered into that certain Credit Agreement dated as of August 31,
2004 (as amended and in effect immediately prior to the date hereof, the “Credit
Agreement”); and

 

WHEREAS, the
Borrower, the Parent and the Lenders desire to amend the Credit Agreement on
the terms and conditions contained herein.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the parties hereto, the parties hereby agree
as follows:

 

Section 1.  Specific Amendments to Credit Agreement.  The parties hereto agree that the Credit
Agreement is amended as follows:

 

(a)           The Credit Agreement is amended by
adding the following definition of “Permanent Loan Estimate” to Section 1.1.
in the appropriate alphabetical location:

 

“Permanent Loan
Estimate” means, as of any date of determination and with
respect to any Collateral Property, an amount equal to (a)(i) the Net
Operating Income of such Collateral Property for the two most recently ended
fiscal quarters of the Borrower times (ii) 2 divided by (iii) 1.30,
divided by (b) the mortgage constant for a 25-year loan bearing
interest at a per annum rate equal to 1.50% plus the greater of the (x) the
yield on a 10 year United States Treasury Note and (y) 6.00%.

 

(b)           The definition of “Applicable Margin”
in Section 1.1. of the Credit Agreement is amended by deleting the table
contained therein and replacing it with the following:

 

	
   

  	
   

  	
   

  	
   

  	
  Applicable Margin

  	
   

  	
  Applicable Margin

  	
   

  
	
  Level

  	
   

  	
  Collateral Pool Leverage Ratio

  	
   

  	
  For LIBOR Loans

  	
   

  	
  For Base Rate Loans

  	
   

  
	
  1

  	
   

  	
  Less than or equal to 60.0%

  	
   

  	
  1.35

  	
  %

  	
  0.35

  	
  %

  
	
  2

  	
   

  	
  Greater than 60.0% but less than 65.0%

  	
   

  	
  1.50

  	
  %

  	
  0.50

  	
  %

  
	
  3

  	
   

  	
  Greater than or equal to 65.0% but less
  than 70.0%

  	
   

  	
  1.60

  	
  %

  	
  0.60

  	
  %

  

 

(c)           The definition of “Collateral
Property Value” in Section 1.1. of the Credit Agreement is deleted.

 

 

(d)           The definitions of “Borrowing Base”, “Borrowing
Base Certificate” and “Collateral Pool Leverage Ratio” in Section 1.1. of
the Credit Agreement are restated in their entirety as follows:

 

“Borrowing Base”
means an amount equal to the sum of the following: (a) with respect to
each Collateral Property that has not initially been included in calculations
of the Borrowing Base for at least two consecutive fiscal quarters of the
Parent, 70.0% of the Appraised Values of all such Collateral Properties and (b) with
respect to all other Collateral Properties, the lesser of (i) 70.0% of the
Appraised Values of all such Collateral Properties and (ii) the Permanent
Loan Estimates for all such Collateral Properties; provided, however,
to the extent that amount of the Borrowing Base attributable to Collateral
Properties leased by Loan Parties under Ground Leases would exceed 15.0% of the
Borrowing Base, such excess shall be excluded. 
Notwithstanding the foregoing, a Collateral Property shall be excluded
from calculations of the Borrowing Base if (x) at any time such Property shall
cease to be an Eligible Property, (y) the Agent shall cease to hold a valid and
perfected first priority Lien in such Collateral Property, or (z) there shall
have occurred and be continuing an event of default under the Security Deed,
Assignment of Leases and Rents or other Security Document relating to such
Collateral Property.  The Borrowing Base
shall equal $0 if at any time (i) there are fewer than 8 Collateral
Properties or (ii) the Appraised Values of the Collateral Properties is
less than $130,000,000 in the aggregate.

 

“Borrowing Base
Certificate” means a report certified by the chief financial
officer of the Borrower, setting forth the calculations required to establish
the Borrowing Base as of a specified date, all in form and detail satisfactory
to the Agent.

 

“Collateral Pool
Leverage Ratio” means, at any time, the ratio of (a) the
aggregate principal amount of all outstanding Loans, together with the
aggregate amount of all Letter of Credit Liabilities, at such time to (b) the
aggregate Appraised Values at such time of all Collateral Properties then
included in calculations of the Borrowing Base.

 

(e)           Section 4.4
of the Credit Agreement is restated in its entirety as follows:

 

Section 4.4  Frequency of Calculations of Borrowing Base.

 

Initially, the Borrowing Base shall be the amount set forth as such in
the Borrowing Base Certificate delivered under Section 6.1.  Thereafter, the Borrowing Base shall be the
amount set forth as such in the Borrowing Base Certificate delivered from time
to time under Section 4.2.(w), 4.3.(d) or 9.4.(g).  Any increase in the Borrowing Base shall
become effective as of the next determination of the Borrowing Base as provided
in this Section, provided that prior to such date of determination (a) the
applicable Borrowing Base Certificate substantiates such increase and (b) if
at such time such Collateral Property is

 

2

 

subject to a
Security Deed, the Borrower delivers to the Agent (i) if the Property is
not located in a Tie-In Jurisdiction and the increase in the Borrowing Base is
attributable in whole or in part to an increase in the Appraised Value of such
Collateral Property, an endorsement to the title insurance policy in favor of
the Agent with respect to such Collateral Property increasing the coverage
amount thereof as related to such Property to not less than 100% of the
Appraised Value of such Collateral Property and (ii) if such Collateral
Property is located in a Tie-In Jurisdiction, an endorsement to the title
insurance policy in favor of the Agent with respect to such Property increasing
the coverage amount thereof as related to such Property to not less than the
Appraised Value of such Collateral Property, as well as endorsements to all
other existing title insurance policies issued to the Agent with respect to all
other Collateral Properties located in Tie-In Jurisdictions reflecting an
increase in the aggregate insured amount under the “tie-in” endorsements to an
amount equal to the aggregate amount of the Appraised Values of all such
Properties (including each Collateral Property to which the increase in the
Borrowing Base is attributable) but in no event in an amount in excess of the
aggregate amount of the Commitments.

 

Section 2.
 Conditions Precedent.  The effectiveness of the amendments to the
Credit Agreement set forth in Section 1 hereof is subject to receipt by
the Agent of each of the following, each in form and substance satisfactory to
the Agent:

 

(a)           a counterpart of this Amendment duly
executed by the Borrower, the Parent and each Lender party hereto;

 

(b)           the Reaffirmation of Obligations in
the form of Exhibit A attached to this Amendment duly executed by each
existing Guarantor;

 

(c)           evidence of payment of the fees payable
under Section 6 below; and

 

(d)           such other documents, instruments and
agreements as the Agent may reasonably request.

 

Section 3.  Representations.  The Borrower and the Parent represent and
warrant to the Agent and each Lender that:

 

(a)           Authorization.  Each of the Borrower and the Parent has the
right and power, and has taken all necessary action to authorize the execution
and delivery of this Amendment and to perform its respective obligations
hereunder and under the Credit Agreement, as amended by this Amendment, in
accordance with their respective terms. 
This Amendment has been duly executed and delivered by a duly authorized
officer of the Borrower and by a duly authorized officer of the Parent and both
this Amendment and the Credit Agreement, as amended by this Amendment, is a
legal, valid and binding obligation of the Borrower and of the Parent
enforceable against each of them in accordance with its respective terms except
as the enforceability thereof may be limited by bankruptcy, insolvency or similar
laws affecting creditors rights generally.

 

3

 

(b)           Compliance with Laws, etc.  The execution, delivery and performance of
this Amendment and the other Loan Documents to which either Borrower or the Parent
is a party do not and will not, by the passage of time, the giving of notice,
or both:  (i) require any
Governmental Approval or violate any Applicable Law relating to the Borrower or
the Parent; (ii) conflict with, result in a breach of or constitute a
default under the organizational documents of the Borrower, or any indenture,
agreement or other instrument to which the Borrower or the Parent is a party or
by which they or any of their respective properties may be bound; or (iii) result
in or require the creation or imposition of any Lien upon or with respect to
any property now owned or hereafter acquired by either the Borrower or the
Parent other than in favor of the Agent for the benefit of the Lenders.

 

(c)           No Default.  No Default or Event of Default has occurred
and is continuing as of the date hereof nor will exist immediately after giving
effect to this Amendment.

 

Section 4.  Reaffirmation of Representations.  The Borrower and the Parent hereby represent,
repeat and reaffirm all representations and warranties made by them to the
Agent and the Lenders in the Credit Agreement and the other Loan Documents to
which they are a party on and as of the date hereof with the same force and
effect as if such representations and warranties were set forth in this
Amendment in full.

 

Section 5.  Certain References.  Each reference to the Credit Agreement in any
of the Loan Documents shall be deemed to be a reference to the Credit Agreement
as amended by this Amendment.

 

Section 6.  Amendment Fee.  In consideration of the Lenders party hereto
amending the Credit Agreement as provided herein, the Borrower agrees to pay to
the Agent for the account of each Lender executing this Amendment an amendment
fee equal to $5,000 for each such Lender.

 

Section 7.  Expenses.  The Borrower shall reimburse the Agent and
each Lender upon demand for all costs and expenses (including attorneys’ fees)
incurred by the Agent or any Lender in connection with the preparation,
negotiation and execution of this Amendment and the other agreements and
documents executed and delivered in connection herewith.

 

Section 8.  Benefits.  This Amendment shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors and assigns.

 

Section 9.  GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 10.  Effect.  Except as expressly herein amended, the terms
and conditions of the Credit Agreement and the other Loan Documents remain in
full force and effect.  The amendments
contained herein shall be deemed to have prospective application only, unless
otherwise specifically stated herein.

 

4

 

Section 11.  Counterparts.  This Amendment may be executed in any number
of counterparts, each of which shall be deemed to be an original and shall be
binding upon all parties, their successors and assigns.

 

Section 12.  Definitions.  Capitalized terms used in this Amendment and
not otherwise defined herein shall have the respective meanings given such
terms in the Credit Agreement.

 

[Signatures on Next Page]

 

5

 

IN WITNESS
WHEREOF, the parties hereto have caused this Third Amendment to Credit
Agreement to be executed as of the date first above written.

 

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  KITE REALTY
  GROUP, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Kite Realty
  Group Trust, its sole General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARENT:

  
	
   

  	
   

  
	
   

  	
  KITE REALTY
  GROUP TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Signatures Continued on Following Page]

  
											

 

6

 

	
  [Signature Page to Third Amendment for

  
	
  Kite Realty Group, L.P.]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Agent and
  a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN
  COMMERCIAL PAPER INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LASALLE BANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [Signatures Continued on Following Page]

  
						

 

7

 

	
  [Signature Page to Third Amendment for

  
	
  Kite Realty Group, L.P.]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF
  MONTREAL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
  CHEVY CHASE
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

8

 

EXHIBIT A

 

FORM OF REAFFIRMATION OF OBLIGATIONS

 

THIS
REAFFIRMATION OF OBLIGATIONS dated as of June 30, 2005 (this “Reaffirmation”)
executed by each of the undersigned (the “Guarantors”) in favor of WACHOVIA
BANK, NATIONAL ASSOCIATION, as Agent (the “Agent”) and each “Lender” a party to
the Credit Agreement referred to below (the “Lenders”).

 

WHEREAS, Kite
Realty Group, L.P. (the “Borrower”), Kite Realty Group Trust (the “Parent”),
the Lenders, the Agent and the other parties thereto have entered into that
certain Credit Agreement dated as of August 31, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”);

 

WHEREAS, each
of the Guarantors is a party to that certain Guaranty dated as of August 31,
2004 (as amended, restated, supplemented or otherwise modified from time to
time, the “Guaranty”) pursuant to which they guarantied, among other things,
the Borrower’s obligations under the Credit Agreement on the terms and
conditions contained in the Guaranty;

 

WHEREAS, the
Borrower, the Agent and the Lenders are to enter into a Third Amendment to
Credit Agreement dated as of the date hereof (the “Third Amendment”), to amend
the terms of the Credit Agreement on the terms and conditions contained
therein; and

 

WHEREAS, it is
a condition precedent to the effectiveness of the Third Amendment that the
Guarantors execute and deliver this Reaffirmation.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the parties hereto, the parties hereto agree
as follows:

 

Section 1.  Reaffirmation.  Each Guarantor hereby reaffirms its
continuing obligations to the Agent and the Lenders under the Guaranty and
agrees that the transactions contemplated by the Third Amendment shall not in
any way affect the validity and enforceability of the Guaranty, or reduce,
impair or discharge the obligations of such Guarantor thereunder.

 

Section 2.  Governing Law.  THIS REAFFIRMATION SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

[Signatures on Next Page]

 

A-1

 

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

 

	
   

  	
  KITE REALTY GROUP TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KITE PEN, LLC

  
	
   

  	
  GLENDALE CENTRE, L.L.C.

  
	
   

  	
  KITE SILVER GLEN, LLC

  
	
   

  	
  KITE WASHINGTON PARKING, LLC

  
	
   

  	
  KITE EAGLE CREEK, LLC

  
	
   

  	
  KITE KING’S LAKE, LLC

  
	
   

  	
   

  
	
   

  	
  By: Kite
  Realty Group, L.P., its sole Member

  
	
   

  	
   

  
	
   

  	
  By: Kite
  Realty Group Trust, its sole General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KRG CEDAR HILL VILLAGE, LP

  
	
   

  	
  KRG GALLERIA PLAZA, LP

  
	
   

  	
   

  
	
   

  	
  By: KRG
  Texas, LLC, its sole General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KITE SHADELAND, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
													

 

[Signatures Continued on Following Page]

 

A-2

 

[Signature Page to Reaffirmation of Obligations
for

Kite Realty Group, L.P.]

 

 

	
   

  	
  KRG HAMILTON CROSSING, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KITE ACWORTH, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOBLESVILLE PARTNERS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KRG SAN ANTONIO, LP

  
	
   

  	
   

  
	
   

  	
  By: Kite San
  Antonio, LLC, its sole General

  
	
   

  	
  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KRG WATERFORD LAKES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
									

 

A-3Exhibit 10.1

 

PROMISSORY NOTE

 

	
  $400,000

  	
   

  	
  Minneapolis, Minnesota

  
	
   

  	
   

  	
  June 30, 2005

  

 

FOR VALUE
RECEIVED, Angeion Corporation, a Minnesota corporation (referred to herein as “Maker”),
promises to pay to the order of ELA Medical, Inc. (directly and as agent for
ELA Medical, S.A.S.) and its assigns (referred to herein as “Holder”), at 2950
Xenium Lane North, Plymouth Minnesota 55441 or at such other place as the
Holder may designate in writing, without interest, the principal sum of Four
Hundred Thousand Dollars ($400,000), in lawful money of the United States,
payable Two Hundred Thousand ($200,000) on December 31, 2005 and Two Hundred
Thousand Dollars on June 30, 2006.

 

Maker, at any
time, and from time to time, has the right to prepay all or any part of the said
indebtedness at any time even if demand has not been made therefore.

 

No delay or
omission on the part of Holder in exercising any right hereunder will operate
as a waiver of such right or of any other remedy under this Note.  A waiver on any one occasion may not be
construed as a bar to or waiver of any such right or remedy on a future
occasion.

 

The
undersigned agrees to pay this Note; waives demand, presentment, protest,
notice of protest, notice of dishonor and notice of nonpayment of this Note;
and agrees that nothing, except full payment, will affect its liability on this
Note.

 

This Note is
to be governed by and construed under Minnesota law, and Maker hereby consents
to the personal jurisdiction of the state and federal courts of Minnesota.

 

 

	
   

  	
  Angeion
  Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Rodney
  A. Young

  	
   

  
	
   

  	
  By:  Rodney A. Young

  	
   

  
	
   

  	
  President
  and Chief Executive Officer

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