Document:

Exhibit 10.1

 

Confidential treatment has been requested for portions of this exhibit pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [**]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

 

Execution Version

 

AMENDMENT AGREEMENT, dated as of January 31, 2014 (this “Amendment”), relating to the Amended and Restated Term Loan Credit Agreement dated as of May 16, 2013, (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “First Restated Credit Agreement”), by and among SUPERVALU INC. (the “Borrower”), the other Loan Parties, GOLDMAN SACHS BANK USA, as administrative agent (in such capacity, the “Administrative Agent”) and as collateral agent (the “Collateral Agent”), and the LENDERS listed on the signature pages hereto.  Capitalized terms used herein without definition shall have the same meanings herein as set forth in the Second Restated Credit Agreement (as defined below).

 

RECITALS

 

WHEREAS, pursuant to the First Restated Credit Agreement, the lenders thereunder have extended credit to the Borrower;

 

WHEREAS, the Borrower and the undersigned Lenders desire that the First Restated Credit Agreement be amended and restated in the form of the Second Amended and Restated Term Loan Credit Agreement attached hereto as Exhibit A (the “Second Restated Credit Agreement”) to, among other things, provide for a new tranche of term loans thereunder (the “New Term Loans”), which term loans will, subject to Section 9.22 of the Second Restated Credit Agreement, refinance the Loans outstanding under and as defined in the First Restated Credit Agreement and which, except as modified hereby, will have the same terms as the existing Loans under and as defined in the First Restated Credit Agreement;

 

WHEREAS, on the Second Restatement Date (as defined below), (a) the Borrower shall borrow New Term Loans in an aggregate principal amount of $1,484,608,413.43 having the terms set forth for Loans (under and as defined in the Second Restated Credit Agreement) (the “New Term Loan Facility”) and (b) the Borrower shall use the proceeds of the New Term Loan Facility, together with cash on hand of the Borrower, if necessary, (i) to repay in full all outstanding Loans under and as defined in the First Restated Credit Agreement, (ii) to pay all accrued and unpaid interest, indemnities, cost reimbursements and other obligations in respect of the outstanding Loans under and as defined in the First Restated Credit Agreement (but not any other Obligations) and (iii) to pay fees and expenses incurred in connection with the foregoing; and

 

WHEREAS, the Lenders set forth on Schedule A hereto (the “New Term Loan Lenders”) are willing to make New Term Loans under the New Term Loan Facility to the Borrower on the Second Restatement Date.

 

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

 

SECTION I. TERM LOANS

 

Each New Term Loan Lender agrees, severally and not jointly, to make, on the Second Restatement Date, a New Term Loan to the Borrower as set forth in Section 2.01(a) of the Second Restated Credit Agreement.  The proceeds of the New Term Loans are to be used by the Borrower solely for the purposes set forth in the Second Restated Credit Agreement.  For the avoidance of doubt, from and after the Second Restatement Date, references in the Second Restated Credit Agreement to the “Loans” shall include the New Term Loans made by the New Term Loan Lenders to the Borrower on the Second Restatement Date and shall exclude the Loans (as defined in the First Restated Credit Agreement) made by the Lenders (as defined in the First Restated Credit Agreement) prior to the Second Restatement Date.

 

 

SECTION II. AMENDMENT AND RESTATEMENT OF FIRST RESTATED CREDIT AGREEMENT

 

Each of the undersigned parties hereto agrees that the First Restated Credit Agreement shall be amended and restated on the Second Restatement Date, such that on the Second Restatement Date the terms set forth in Exhibit A hereto shall replace the terms of the First Restated Credit Agreement.  As used in the Second Restated Credit Agreement, the terms “Agreement”, “this Agreement”, “herein”, “hereinafter”, “hereto”, “hereof”, and words of similar import shall, unless the context otherwise requires, mean, from and after the replacement of the terms of the First Restated Credit Agreement by the terms of the Second Restated Credit Agreement, the Second Restated Credit Agreement.  On and after the Second Restatement Date, each reference to the First Restated Credit Agreement in any Loan Document (or any schedule, exhibit or annex thereto) shall be deemed to be a reference to the Second Restated Credit Agreement.  This Amendment shall constitute a “Loan Document” for all purposes of the Second Restated Credit Agreement and the other Loan Documents.  As used herein, “Joint Lead Arrangers” means Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., in their respective capacities as joint lead arrangers for this Amendment.  Schedules 3.08(b), 3.08(c), 3.10 and 3.13 of the First Restated Credit Agreement, as modified by the most recent update thereto delivered to the Administrative Agent pursuant to Section 5.14(b) of the First Restated Credit Agreement, shall be Schedules 3.08(b), 3.08(c), 3.10, and 3.13 of the Second Restated Credit Agreement.  Schedules 3.06, 3.21(a), 3.21(b), 3.27 and 6.02 of the First Restated Credit Agreement are hereby amended and restated in the form set forth in Schedule B hereto, and, as so amended and restated, shall be Schedules 3.06, 3.21(a), 3.21(b), 3.27 and 6.02 of the Second Restated Credit Agreement.

 

SECTION III. CONDITIONS TO EFFECTIVENESS

 

The effectiveness of this Amendment (and the amendment and restatement of the First Restated Credit Agreement provided for herein) and the obligations of the New Term Loan Lenders to make New Term Loans under the New Term Loan Facility shall be subject to the following conditions precedent (the date of satisfaction of such conditions being referred to herein as the “Second Restatement Date”):

 

A.                                    Execution.  The Administrative Agent shall have received a counterpart of this Amendment, executed and delivered by a duly authorized officer of the Borrower, the other Loan Parties, each of the New Term Loan Lenders, the Administrative Agent and the Collateral Agent; and

 

B.                                    Satisfaction of Conditions in Second Restated Credit Agreement.  Each of the conditions in Section 4.01 of the Second Restated Credit Agreement shall have been satisfied.

 

SECTION IV. REAFFIRMATION

 

A.                                    Each Loan Party hereby acknowledges receipt of a copy of the Second Restated Credit Agreement and hereby consents to the Second Restated Credit Agreement and each of the transactions contemplated thereby and hereby confirms its respective guarantees (in the case of the Guarantors), pledges, grants of security interests and other obligations, as applicable, under and subject to the terms of each of the Loan Documents to which it is party, and agrees that, notwithstanding the effectiveness of the Second Restated Credit Agreement or any of the transactions contemplated thereby, such guarantees (in the case of the Guarantors), pledges, grants of security interests and other obligations, and the terms of each of the Loan Documents to which it is a party, are not impaired or adversely affected in any manner whatsoever and shall continue to be in full force and effect and shall continue to secure all the Obligations, as amended, increased and/or extended pursuant to the Second Restated Credit Agreement including, without limitation, the New Term Loans funded on the Second Restatement Date.  Each Loan Party further confirms that each Loan Document to which it is a party is and shall continue to be in full force and effect and the same are hereby ratified and confirmed in all respects.

 

2

 

B.                                    Each Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, such Guarantor is not required by the terms of the First Restated Credit Agreement or any other Loan Document to consent to the amendments to the First Restated Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Second Restated Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of such Guarantor to any future amendments to the Second Restated Credit Agreement.

 

SECTION V. MISCELLANEOUS

 

A.                                    Expenses and Indemnity.  The Borrower agrees to pay all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent and the Joint Lead Arrangers in connection with this Amendment and any other documents prepared in connection herewith, in each case to the extent required by Section 9.05 of the Second Restated Credit Agreement.  The Borrower hereby confirms that the indemnification provisions set forth in Section 9.05 of the Second Restated Credit Agreement shall apply to this Amendment and such losses, claims, damages, liabilities, costs and expenses (as more fully set forth therein as applicable) which may arise herefrom or in connection herewith.

 

B.                                    Limitation of Amendment.  The terms, provisions and conditions of the Second Restated Credit Agreement and the other Loan Documents shall be in full force and effect and nothing herein shall be deemed to entitle the Borrower to a further consent to, or a further waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Second Restated Credit Agreement or any other Loan Document in similar or different circumstances.

 

C.                                    Authorization of Administrative Agent and Collateral Agent.  Each undersigned Lender hereby authorizes the Administrative Agent and the Collateral Agent to execute an amendment to the Intercreditor Agreement to the extent necessary to reflect the amendments to the First Restated Credit Agreement effected pursuant to this Amendment.

 

D.                                    Consent.  Each Lender that delivers an executed counterpart of this Amendment on or prior to the Second Restatement Date hereby consents to this Amendment and the transactions contemplated hereby.

 

E.                                    Headings.  Section and Subsection headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or be taken into consideration in interpreting, this Amendment.

 

F.                                     APPLICABLE LAW.  THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

 

G.                                   Submission to Jurisdiction.  The Borrower and each other Loan Party hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York County, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Amendment, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be

 

3

 

heard and determined in such New York State or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action 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.  Nothing in this Amendment shall affect any right that the Administrative Agent, the Collateral Agent or any Lender may otherwise have to bring any action or proceeding relating to this Amendment or the other Loan Documents against the Borrower or its properties in the courts of any jurisdiction if required to realize upon the Collateral as determined in good faith by the Person bringing such action or proceeding.

 

H.                                   Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AMENDMENT.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 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 AMENDMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

I.                                        Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or via other electronic means satisfactory to the Administrative Agent shall be effective as delivery of a manually executed counterpart of this Amendment.

 

 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

4

 

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

 

 

	
 
    	
SUPERVALU   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bruce H. Besanko
    
	
 
    	
Name:
    	
Bruce   H. Besanko
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

[SUPERVALU INC. Amendment Agreement]

 

 

	
 
    	
ADVANTAGE   LOGISTICS — SOUTHEAST, INC. 
    
	
 
    	
BUTSON’S   ENTERPRISES, INC.
    
	
 
    	
EASTERN   REGION MANAGEMENT CORP.
    
	
 
    	
FF   ACQUISITION, L.L.C.
    
	
 
    	
FOODARAMA   LLC
    
	
 
    	
RICHFOOD   HOLDINGS, INC.
    
	
 
    	
RICHFOOD, INC.
    
	
 
    	
RICHFOOD   PROCUREMENT, L.L.C.
    
	
 
    	
SCOTT’S   FOOD STORES, INC.
    
	
 
    	
SFW   HOLDING CORP.
    
	
 
    	
SFW   LICENSING CORP.
    
	
 
    	
SHOP   ‘N SAVE ST. LOUIS, INC.
    
	
 
    	
SHOP   ‘N SAVE WAREHOUSE FOODS, INC.
    
	
 
    	
SHOPPERS   FOOD WAREHOUSE CORP.
    
	
 
    	
SUPER   RITE FOODS, INC.
    
	
 
    	
SUPERMARKET   OPERATORS OF AMERICA INC. 
    
	
 
    	
SUPERVALU   HOLDINGS, INC.
    
	
 
    	
SUPERVALU   HOLDINGS — PA LLC
    
	
 
    	
 
    	
By:   SUPERVALU Holdings, Inc., its sole member
    
	
 
    	
SUPERVALU   PHARMACIES, INC.
    
	
 
    	
SUPERVALU   TRANSPORTATION INC.
    
	
 
    	
SUPERVALU   TTSJ, INC.
    
	
 
    	
SVH   REALTY, INC.
    
	
 
    	
W.   NEWELL & CO., LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Bruce H. Besanko
    
	
 
    	
 
    	
 
    	
Name:   Bruce H. Besanko
    
	
 
    	
 
    	
 
    	
Title:   Vice President
    

 

[SUPERVALU INC. Amendment Agreement]

 

 

	
 
    	
CHAMPLIN   2005 L.L.C.
    
	
 
    	
 
    	
By:   SUPERVALU INC., its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Bruce H. Besanko
    
	
 
    	
 
    	
Name:   Bruce H. Besanko
    
	
 
    	
 
    	
Title:   Executive Vice President and Chief Financial Officer
    
					

 

 

	
 
    	
SAVE-A-LOT TYLER GROUP, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Ritchie L. Casteel
    
	
 
    	
 
    	
 
    	
Name:   Ritchie L. Casteel
    
	
 
    	
 
    	
 
    	
Title:   Chairman, President and Chief Executive Officer
    

 

 

	
 
    	
MORAN   FOODS, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Ritchie L. Casteel
    
	
 
    	
 
    	
 
    	
Name:   Ritchie L. Casteel
    
	
 
    	
 
    	
 
    	
Title:   Chief Executive Officer
    

 

[SUPERVALU INC. Amendment Agreement]

 

 

	
 
    	
GOLDMAN   SACHS BANK USA, as Administrative Agent and Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Anisha Malhotra
    
	
 
    	
Anisha   Malhotra
    
	
 
    	
Authorized   Signatory
    

 

[SUPERVALU INC. Amendment Agreement]

 

 

	
 
    	
GOLDMAN   SACHS BANK USA, as a New Term Loan Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Anisha Malhotra
    
	
 
    	
Anisha   Malhotra
    
	
 
    	
Authorized   Signatory
    

 

[SUPERVALU INC. Amendment Agreement]

 

 

Schedule A to Amendment Agreement

 

Commitments

 

	
New Term Lender
    	
 
    	
New Term Loan Commitment
    	
 
    
	
Goldman Sachs Bank USA
    	
 
    	
$
    	
1,484,608,413.43
    	
 
    
	
Total
    	
 
    	
$
    	
1,484,608,413.43
    	
 
    

 

 

Schedule B to Amendment Agreement

 

(See attached.)

 

 

Schedule 3.06

 

Litigation

 

·                  In September 2008, a class action complaint was filed against the Company, as well as International Outsourcing Services, LLC (“IOS”), Inmar, Inc., Carolina Manufacturer’s Services, Inc., Carolina Coupon Clearing, Inc. and Carolina Services, in the United States District Court in the Eastern District of Wisconsin. The plaintiffs in the case are a consumer goods manufacturer, a grocery co-operative and a retailer marketing services company who allege on behalf of a purported class that the Company and the other defendants (i) conspired to restrict the markets for coupon processing services under the Sherman Act and (ii) were part of an illegal enterprise to defraud the plaintiffs under the Federal Racketeer Influenced and Corrupt Organizations Act. The plaintiffs seek monetary damages, attorneys’ fees and injunctive relief. The Company intends to vigorously defend this lawsuit, however all proceedings have been stayed in the case pending the result of the criminal prosecution of certain former officers of IOS.

 

·                  In December 2008, a class action complaint was filed in the United States District Court for the Western District of Wisconsin against the Company alleging that a 2003 transaction between the Company and C&S Wholesale Grocers, Inc. (“C&S”) was a conspiracy to restrain trade and allocate markets.  In the 2003 transaction, the Company purchased certain assets of the Fleming Corporation as part of Fleming Corporation’s bankruptcy proceedings and sold certain assets of the Company to C&S which were located in New England. Since December 2008, three other retailers have filed similar complaints in other jurisdictions.  The cases have been consolidated and are proceeding in the United States District Court for the District of Minnesota.  The complaints allege that the conspiracy was concealed and continued through the use of non-compete and non-solicitation agreements and the closing down of the distribution facilities that the Company and C&S purchased from each other.  Plaintiffs are seeking monetary damages, injunctive relief and attorneys’ fees.  On July 5, 2011, the District Court granted the Company’s Motion to Compel Arbitration for those plaintiffs with arbitration agreements and plaintiffs appealed.   On July 16, 2012, the District Court denied plaintiffs’ Motion for Class Certification and on January 11, 2013, the District Court granted the Company’s Motion for Summary Judgment and dismissed the case regarding the non-arbitration plaintiffs. Plaintiffs have appealed these decisions. On February 12, 2013, the 8th Circuit reversed the District Court decision requiring plaintiffs with arbitration agreements to arbitrate and the Company filed a Petition with the 8th Circuit for an En Banc Rehearing. On June 7, 2013, the 8th Circuit denied the Petition for Rehearing and remanded the case to the District Court. On September 19, 2013, the District Court held a hearing on the Company’s motion to stay the proceedings at the District Court pending a decision on the second 8th Circuit appeal regarding class certification and summary judgment and took the matter under advisement.   On October 30, 2013, the parties attended a District Court ordered mandatory mediation which was not successful in resolving the matter.   On November 21, 2013, the Eight Circuit held a hearing on plaintiffs’ appeal from the Class Certification denial and Summary Judgment decisions.  The Eight Circuit took the matter under advisement.

 

Sch. 3.06

 

Schedule 3.21(a)

 

[**]

 

** Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request, with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934.

 

Sch. 3.21(a)

 

Schedule 3.21(b)

 

Credit Card Arrangements

 

	
EFT Services and License Agreement dated March 27, 1997, between   BUYPASS Corporation and SUPERVALU INC., as amended.
    
	
 
    
	
Agreement for American Express Card Acceptance/Supermarket dated October 29,   1999, between American Express Travel Related Services Company, Inc., and   SUPERVALU Holdings, Inc., as amended.
    
	
 
    
	
Merchant Services Agreement effective as of October 1, 2006,   between Discover Financial Services LLC and SUPERVALU INC., as amended.
    
	
 
    
	
Cash Over Amendment to Merchant Services Agreement dated July 15,   2011, between DFS Services LLC and SUPERVALU INC. 
    
	
 
    
	
Promotional Merchant Fee Letter Agreement dated December 22,   2008, between DFS Services LLC and SUPERVALU INC., as amended by letter   agreement dated August 1, 2011, between the parties.
    
	
 
    
	
Visa Promotional Agreement dated as of October 1, 2011 and   amended April 1, 2013, between Visa U.S.A. Inc. and SUPERVALU INC. 
    

 

Sch. 3.21(b)

 

Schedule 3.27

 

PACA Claims

 

None.

 

Sch. 3.27

 

Schedule 6.02

 

Investments

 

I.             Non-Wholly Owned Entities:

 

[**]

 

** Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request, with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934.

 

II. Investment Policy

 

SUPERVALU INC.

INVESTMENT GUIDELINES

November 5, 2013

 

PURPOSE:

 

To state clearly the responsibility for the investment of surplus cash, the approved types of investments and their maturities.

 

POLICY STATEMENT:

 

Cash temporarily not needed for Company operations or to reduce debt will be invested by the Cash Management Team (in Treasury Services), following approval from either the Treasurer, Controller, Vice President — Tax, Vice President — Shared Services Finance or Chief Financial Officer. The investments will be of appropriate maturities to meet projected cash requirements of the Company, and will be made according to the following written guidelines. The objectives of such investments will be, in order of importance: safety of principal, liquidity of funds, diversification and investment yield.

 

GUIDELINES:

 

All surplus Company cash will be forwarded to the parent. Subsidiaries are not authorized to invest cash with outside parties without prior approval from either the Treasurer, Controller or Chief Financial Officer.

 

APPROVED INVESTMENTS:

 

1.             U.S. Treasury Securities and general obligations fully guaranteed with respect to principal and interest by the U. S. Government.

 

2.             Obligations of U.S. Government Agencies (i.e. GNMA’s and FNMA’s).

 

Sch. 6.02-1

 

3.             Commercial paper of prime quality (rated A-1 by Standard and Poor’s and P-1 by Moody’s), purchased through recognized money market dealers (see list of “Authorized Dealers”).

 

4. Certificates of Deposit and Time Deposits of Banks and their overseas branches are limited to:

 

a.              Top 50 worldwide banks as measured by assets, and

b.     Banks rated A-1/AA- from Standard and Poor’s and/or P-1/Aa3 from Moody’s or better

 

5.             Repurchase Agreements, with authorized money market dealers (see list of “Authorized Dealers”) or major banks as defined in item #4, executed against those securities approved for direct purchase (1-4 above). The current market value of the collateral must cover the principal amount of the investment and collateral must be held in our name.

 

6.             Diversified money market investment funds (see list of “Authorized Money Market Funds”) meeting the following conditions:

 

a.              AAAm rating from Standard and Poor’s or AAA rating from Moody’s

b.              Total assets of at least $5 billion

c.               Rule 2a-7 compliant

d.              At least three years of history

e.               Previously approved by either the Treasurer, Controller, or Chief Financial Officer

 

7.              Other investments, including commercial paper rated A-2/P-2, may be allowed from time to time with specific written authorization from the Chief Financial Officer or the Treasurer.

 

8.              During a period of time where demand deposit accounts (DDA’s) are federally guaranteed by the Temporary Liquidity Guarantee Program or any other similar FDIC guarantee programs , surplus funds may be held in the company’s DDA accounts at authorized participating depository banks.

 

9.              Surplus funds may be held at authorized depository banks not participating in guarantee programs described in #8 above to earn the earnings credit rate that meet one of the following requirements:

 

a.              A Long Term issuer rating no lower than

 

i.  A3 from Moody’s or

ii. A- from Standard and Poor’s

 

b.              Market Credit Default Swap (CDS) rate of no greater than 250 basis points

 

INVESTMENT LIMITATIONS:

 

1.             All short-term investments shall be denominated in U.S. dollars.

 

2.             A maximum principal investment of up to:

 

a.              $50 million per money market fund (determined by CUSIP number)

 

Sch. 6.02-2

 

b.              $25 million per DDA account.

 

3.             For direct securities purchases, the commitment to any one name will be limited to $10 million with the exception of U. S. Government and U. S. Government Agencies (no limit).

 

4.             All securities that are purchased will be held in “safekeeping” by the seller or by a Safekeeping Agent (see list of “Authorized Dealers”) named by SUPERVALU INC. who will issue trade confirmation for all transactions.

 

5.             Maturities for investments are not to exceed 90 days.

 

AUTHORIZED INSTITUTIONS/ FUNDS:

 

The following lists include the Authorized Dealers, Authorized Money Market Funds and Authorized Depository Banks that have been approved as part of the investment policy.

 

Authorized Dealers:

 

1.              Bank of America

2.              US Bank

3.              Wells Fargo

 

Authorized Money Market Funds:

 

1.              JP Morgan Government Fund

2.              Federated Government Obligations Fund

3.              Fidelity Institutional Government Fund

4.              Dreyfus Government Cash Management Fund (BNY Mellon)

5.              Columbia Government Reserves Fund (Bank of America)

6.              First American Government Obligations

7.              Goldman Sachs Financial Square Government Fund

8.              BlackRock Liquidity FedFund Institutional Fund

9.              Western Asset Institutional Government Fund

10.       Funds For Institutions Government Fund (Merrill Lynch)

 

Authorized Depository Banks Participating in Government Sponsored Guarantee Programs

 

1.              Bank of America

2.              US Bank

3.              PNC Bank

4.              JP Morgan

5.              Wells Fargo

6.              Northern Trust

7.              Banco Santander (Sovereign)

8.              Key Bank

 

Nothing in this Schedule 6.02 modifies any Loan Party’s obligations contained in (i) the proviso

 

Sch. 6.02-3

 

at the end of the definition of Permitted Investments or (ii) Section 6.13 of the ABL Credit Agreement.

 

Sch. 6.02-4

 

EXHIBIT A TO AMENDMENT AGREEMENT

 

	
 
    
	
SECOND AMENDED AND RESTATED TERM LOAN CREDIT AGREEMENT
    
	
 
    
	
dated as of
    
	
 
    
	
January 31, 2014
    
	
 
    
	
among
    
	
 
    
	
SUPERVALU INC.,
   as Borrower,
    
	
 
    
	
THE GUARANTORS PARTY HERETO,
    
	
 
    
	
THE LENDERS PARTY HERETO
    
	
 
    
	
and
    
	
 
    
	
GOLDMAN SACHS BANK USA,
   as Administrative Agent and Collateral Agent
    
	
 
    
	    

    
	
 
    
	
GOLDMAN SACHS BANK USA, CREDIT SUISSE SECURITIES (USA) LLC and MORGAN   
   STANLEY SENIOR FUNDING, INC.,
    
	
as Joint Lead Bookrunners and Joint Lead Arrangers
    
	
 
    
	
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and   BARCLAYS BANK PLC,
   as Co-Managers
    
	
 
    
	
CREDIT SUISSE SECURITIES   (USA) LLC
    
	
 
    
	
and
    
	
 
    
	
MORGAN STANLEY SENIOR   FUNDING, INC.,
   as Syndication Agents
    
	
 
    
	
MERRILL LYNCH, PIERCE,   FENNER & SMITH INCORPORATED
    
	
 
    
	
and
    
	
 
    
	
BARCLAYS BANK PLC,
   as Documentation Agents
    
	
 
    

 

 

Table of Contents

	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE I Definitions
    	
1
    
	
 
    	
 
    
	
SECTION 1.01. Defined Terms
    	
1
    
	
SECTION 1.02. Terms   Generally
    	
48
    
	
SECTION 1.03. Pro Forma   Calculations
    	
49
    
	
SECTION 1.04. Classification   of Loans and Borrowings
    	
49
    
	
 
    	
 
    
	
ARTICLE II The Credits
    	
49
    
	
 
    	
 
    
	
SECTION 2.01. Commitments
    	
49
    
	
SECTION 2.02. Loans
    	
49
    
	
SECTION 2.03. Borrowing   Procedure
    	
50
    
	
SECTION 2.04. Evidence of   Debt; Repayment of Loans
    	
51
    
	
SECTION 2.05. Fees
    	
51
    
	
SECTION 2.06. Interest on   Loans
    	
52
    
	
SECTION 2.07. Default   Interest
    	
52
    
	
SECTION 2.08. Alternate Rate   of Interest
    	
52
    
	
SECTION 2.09. Termination of   Commitments
    	
52
    
	
SECTION 2.10. Conversion and   Continuation of Borrowings
    	
53
    
	
SECTION 2.11. Repayment of   Borrowings
    	
54
    
	
SECTION 2.12. Voluntary   Prepayments
    	
55
    
	
SECTION 2.13. Mandatory   Prepayments
    	
56
    
	
SECTION 2.14. Reserve   Requirements; Change in Circumstances
    	
58
    
	
SECTION 2.15. Change in   Legality
    	
59
    
	
SECTION 2.16. Breakage
    	
59
    
	
SECTION 2.17. Pro Rata   Treatment
    	
60
    
	
SECTION 2.18. Sharing of   Setoffs
    	
60
    
	
SECTION 2.19. Payments
    	
61
    
	
SECTION 2.20. Taxes
    	
61
    
	
SECTION 2.21. Assignment of   Commitments Under Certain Circumstances; Duty to Mitigate
    	
62
    
	
SECTION 2.22. Incremental   Loans
    	
63
    
	
SECTION 2.23. Extension   Amendments
    	
66
    
	
 
    	
 
    
	
ARTICLE III Representations and Warranties
    	
68
    
	
 
    	
 
    
	
SECTION 3.01. Existence,   Qualification and Power
    	
68
    
	
SECTION 3.02. Authorization;   No Contravention
    	
68
    
	
SECTION 3.03. Governmental   Authorization; Other Consents
    	
68
    
	
SECTION 3.04. Binding Effect
    	
69
    
	
SECTION 3.05. Financial   Statements; No Material Adverse Effect
    	
69
    
	
SECTION 3.06. Litigation
    	
70
    
	
SECTION 3.07. No Default
    	
70
    
	
SECTION 3.08. Ownership of   Properties; Liens
    	
70
    
	
SECTION 3.09. Environmental   Compliance
    	
71
    
	
SECTION 3.10. Insurance
    	
72
    
	
SECTION 3.11. Taxes
    	
72
    
	
SECTION 3.12. ERISA   Compliance
    	
73
    

 

i

 

	
SECTION 3.13. Subsidiaries;   Equity Interests
    	
73
    
	
SECTION 3.14. Margin   Regulations; Investment Company Act
    	
74
    
	
SECTION 3.15. Disclosure
    	
74
    
	
SECTION 3.16. Compliance   with Laws
    	
75
    
	
SECTION 3.17. Intellectual   Property; Licenses, Etc.
    	
75
    
	
SECTION 3.18. Labor Matters
    	
75
    
	
SECTION 3.19. Security   Documents
    	
75
    
	
SECTION 3.20. Solvency
    	
76
    
	
SECTION 3.21. Deposit   Accounts; Credit Card Arrangements
    	
77
    
	
SECTION 3.22. Brokers
    	
77
    
	
SECTION 3.23. Trade   Relations
    	
77
    
	
SECTION 3.24. Material   Contracts
    	
77
    
	
SECTION 3.25. Casualty
    	
77
    
	
SECTION 3.26. Payable   Practices
    	
77
    
	
SECTION 3.27. Notices from   Farm Products Sellers, Etc.
    	
77
    
	
SECTION 3.28. HIPAA   Compliance
    	
78
    
	
SECTION 3.29. Compliance   with Health Care Laws
    	
78
    
	
SECTION 3.30. Sanctioned   Persons
    	
79
    
	
SECTION 3.31. Anti-Terrorism;   Foreign Corrupt Practices Act
    	
79
    
	
 
    	
 
    
	
ARTICLE IV Conditions of Lending
    	
79
    
	
 
    	
 
    
	
SECTION 4.01. Conditions to   Effectiveness
    	
79
    
	
 
    	
 
    
	
ARTICLE V Affirmative Covenants
    	
81
    
	
 
    	
 
    
	
SECTION 5.01. Financial   Statements
    	
82
    
	
SECTION 5.02. Certificates;   Other Information
    	
83
    
	
SECTION 5.03. Notices
    	
84
    
	
SECTION 5.04. Payment of   Obligations
    	
86
    
	
SECTION 5.05. Preservation   of Existence, Etc.
    	
86
    
	
SECTION 5.06. Maintenance of   Properties
    	
87
    
	
SECTION 5.07. Maintenance of   Insurance
    	
87
    
	
SECTION 5.08. Compliance   with Laws
    	
89
    
	
SECTION 5.09. Books and   Records; Accountants; Maintenance of Ratings
    	
89
    
	
SECTION 5.10. Inspection   Rights
    	
90
    
	
SECTION 5.11. Use of   Proceeds
    	
90
    
	
SECTION 5.12. Additional   Loan Parties
    	
90
    
	
SECTION 5.13. Cash   Management
    	
90
    
	
SECTION 5.14. Information   Regarding the Collateral
    	
91
    
	
SECTION 5.15. [Reserved]
    	
92
    
	
SECTION 5.16. Environmental   Laws
    	
92
    
	
SECTION 5.17. Further   Assurances
    	
92
    
	
SECTION 5.18. Ground Leases
    	
93
    
	
SECTION 5.19. [Reserved]
    	
94
    
	
SECTION 5.20. ERISA
    	
94
    
	
SECTION 5.21. Agricultural   Products
    	
94
    
	
SECTION 5.22. Term Loan   Priority Account
    	
95
    
	
SECTION 5.23. Designation of   Subsidiaries
    	
95
    
	
SECTION 5.24. Preparation of   Environmental Reports
    	
96
    
	
SECTION 5.25. Post-Closing   Collateral
    	
96
    

 

ii

 

	
SECTION 5.26. Escrow   Agreement and Indemnity
    	
97
    
	
 
    	
 
    
	
ARTICLE VI Negative Covenants
    	
97
    
	
 
    	
 
    
	
SECTION 6.01. Liens
    	
97
    
	
SECTION 6.02. Investments,   Loans and Advances
    	
98
    
	
SECTION 6.03. Indebtedness
    	
98
    
	
SECTION 6.04. Fundamental   Changes
    	
98
    
	
SECTION 6.05. Dispositions
    	
99
    
	
SECTION 6.06. Restricted   Payments
    	
99
    
	
SECTION 6.07. Prepayments of   Other Indebtedness
    	
100
    
	
SECTION 6.08. Business of   Borrower and Restricted Subsidiaries
    	
100
    
	
SECTION 6.09. Transactions   with Affiliates
    	
100
    
	
SECTION 6.10. Burdensome   Agreements
    	
101
    
	
SECTION 6.11. Use of   Proceeds
    	
101
    
	
SECTION 6.12. Amendment of   Material Documents
    	
101
    
	
SECTION 6.13. Fiscal Year
    	
101
    
	
SECTION 6.14. Disqualified   Stock
    	
101
    
	
 
    	
 
    
	
ARTICLE VII Events of   Default
    	
101
    
	
 
    	
 
    
	
SECTION 7.01. Events of   Default
    	
101
    
	
SECTION 7.02. Application of   Funds
    	
106
    
	
 
    	
 
    
	
ARTICLE VIII The Administrative Agent and the   Collateral Agent; Etc.
    	
106
    
	
 
    	
 
    
	
ARTICLE IX Miscellaneous
    	
110
    
	
 
    	
 
    
	
SECTION 9.01. Notices;   Electronic Communications
    	
110
    
	
SECTION 9.02. Survival of   Agreement
    	
113
    
	
SECTION 9.03. Binding Effect
    	
113
    
	
SECTION 9.04. Successors and   Assigns
    	
113
    
	
SECTION 9.05. Expenses;   Indemnity
    	
118
    
	
SECTION 9.06. Right of   Setoff
    	
120
    
	
SECTION 9.07. Applicable Law
    	
120
    
	
SECTION 9.08. Waivers;   Amendment
    	
120
    
	
SECTION 9.09. Interest Rate   Limitation
    	
121
    
	
SECTION 9.10. Entire   Agreement
    	
121
    
	
SECTION 9.11. WAIVER OF JURY   TRIAL
    	
122
    
	
SECTION 9.12. Severability
    	
122
    
	
SECTION 9.13. [Reserved]
    	
122
    
	
SECTION 9.14. Headings
    	
122
    
	
SECTION 9.15. Jurisdiction;   Consent to Service of Process
    	
122
    
	
SECTION 9.16.   Confidentiality
    	
123
    
	
SECTION 9.17. Lender Action;   Intercreditor Agreement
    	
123
    
	
SECTION 9.18. USA PATRIOT   Act Notice
    	
124
    
	
SECTION 9.19. No Fiduciary   Duty
    	
124
    
	
SECTION 9.20. Collateral and   Guarantee Matters
    	
124
    
	
SECTION 9.21. Substitution,   Release and Addition of Term Loan Priority Collateral
    	
125
    
	
SECTION 9.22. Effect of   Amendment and Restatement
    	
127
    

 

iii

 

 

	
SCHEDULES
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Schedule   2.01
    	
 
    	
-
    	
 
    	
Lenders   and Commitments
    
	
Schedule   3.01
    	
 
    	
-
    	
 
    	
Organizational   Information of Loan Parties
    
	
Schedule   3.06
    	
 
    	
-
    	
 
    	
Litigation
    
	
Schedule   3.08(b)
    	
 
    	
-
    	
 
    	
Owned   Real Estate
    
	
Schedule   3.08(c)
    	
 
    	
-
    	
 
    	
Leases   Constituting Material Contracts
    
	
Schedule   3.09
    	
 
    	
-
    	
 
    	
Environmental   Matters
    
	
Schedule   3.10
    	
 
    	
-
    	
 
    	
Insurance
    
	
Schedule   3.13
    	
 
    	
-
    	
 
    	
Subsidiaries   and Equity Interests
    
	
Schedule   3.17
    	
 
    	
-
    	
 
    	
Intellectual   Property Matters
    
	
Schedule   3.21(a)
    	
 
    	
-
    	
 
    	
Demand   Deposit Accounts
    
	
Schedule   3.21(b)
    	
 
    	
-
    	
 
    	
Credit   Card Arrangements
    
	
Schedule   3.27
    	
 
    	
-
    	
 
    	
Notices   From Farm Products Sellers, Etc.
    
	
Schedule   5.02
    	
 
    	
-
    	
 
    	
Financial   and Collateral Reports
    
	
Schedule   6.01
    	
 
    	
-
    	
 
    	
Existing   Liens
    
	
Schedule   6.02
    	
 
    	
-
    	
 
    	
Existing   Investments
    
	
Schedule   6.03
    	
 
    	
-
    	
 
    	
Existing   Indebtedness
    
	
Schedule   6.09
    	
 
    	
-
    	
 
    	
Transactions   with Affiliates
    
	
Schedule   9.01(a)
    	
 
    	
-
    	
 
    	
Borrower’s   Website Address
    
	
Schedule   9.01(b)
    	
 
    	
-
    	
 
    	
Administrative   Agent’s Notice and Account Information
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBITS
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Exhibit A
    	
 
    	
-
    	
 
    	
Form of   Administrative Questionnaire
    
	
Exhibit B
    	
 
    	
-
    	
 
    	
Form of   Assignment and Acceptance
    
	
Exhibit C
    	
 
    	
-
    	
 
    	
Form of   Borrowing Request
    
	
Exhibit D
    	
 
    	
-
    	
 
    	
Form of   Compliance Certificate
    
	
Exhibit E
    	
 
    	
-
    	
 
    	
Form of   Perfection Certificate
    
	
Exhibit F
    	
 
    	
-
    	
 
    	
Form of   Security Agreement
    
	
Exhibit G
    	
 
    	
-
    	
 
    	
Form of   Facility Guaranty
    
	
Exhibit H
    	
 
    	
-
    	
 
    	
Form of   Mortgage
    
	
Exhibit I
    	
 
    	
-
    	
 
    	
Form of   Intercreditor Agreement
    
	
Exhibit J
    	
 
    	
-
    	
 
    	
Form of   Promissory Note
    
	
Exhibit K
    	
 
    	
-
    	
 
    	
Form of   Opinion of Dorsey & Whitney LLP
    
	
Exhibit L
    	
 
    	
-
    	
 
    	
Form of   DDA Notification
    
	
Exhibit M
    	
 
    	
-
    	
 
    	
Form of   Credit Card Notification
    
	
Exhibit N
    	
 
    	
-
    	
 
    	
Closing   Date Collateral List
    
	
Exhibit O
    	
 
    	
-
    	
 
    	
Form of   United States Tax Compliance Certificate
    
	
Exhibit P
    	
 
    	
-
    	
 
    	
Form of   Related Real Estate Collateral Security Agreement
    
	
Exhibit Q
    	
 
    	
-
    	
 
    	
Modified   Dutch Auction Procedures
    
	
Exhibit R
    	
 
    	
-
    	
 
    	
Form of   Borrower Assignment and Acceptance
    

 

iv

 

SECOND AMENDED AND RESTATED TERM LOAN CREDIT AGREEMENT, DATED AS OF JANUARY 31, 2014 (AS AMENDED, AMENDED AND RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THIS “AGREEMENT”), AMONG SUPERVALU INC., A DELAWARE CORPORATION (THE “BORROWER”), THE GUARANTORS (SUCH TERM AND EACH OTHER CAPITALIZED TERM USED BUT NOT DEFINED IN THIS INTRODUCTORY STATEMENT HAVING THE MEANING GIVEN IT IN ARTICLE I) PARTY HERETO, THE LENDERS PARTY HERETO AND GOLDMAN SACHS BANK USA (“GOLDMAN SACHS”), AS ADMINISTRATIVE AGENT (IN SUCH CAPACITY, INCLUDING ANY SUCCESSOR THERETO, THE “ADMINISTRATIVE AGENT”) AND AS COLLATERAL AGENT (IN SUCH CAPACITY, INCLUDING ANY SUCCESSOR THERETO, THE “COLLATERAL AGENT”) FOR THE LENDERS.

 

WHEREAS, pursuant to the Original Credit Agreement (as defined below), the Lenders (as defined in the Original Credit Agreement) extended credit in the form of Loans (as defined in the Original Credit Agreement) on the Closing Date, in an aggregate principal amount equal to $1,500,000,000;

 

WHEREAS, pursuant to the First Amendment Agreement (as defined below), the requisite parties to the Original Credit Agreement agreed to amend and restate the Original Credit Agreement as provided for in the First Amendment Agreement, subject to the terms and conditions set forth in the First Amendment Agreement and the First Restated Credit Agreement (as defined below), to, among other things, continue to extend credit to the Borrower in the form of Loans on the First Restatement Date (as defined below) in an aggregate principal amount not in excess of $1,500,000,000; and

 

WHEREAS, the requisite parties to the First Restated Credit Agreement have agreed to amend and restate the First Restated Credit Agreement as provided for in this Agreement, subject to the terms and conditions set forth herein, to, among other things, continue to extend credit to the Borrower in the form of Loans on the Second Restatement Date (as defined below) in an aggregate principal amount not in excess of $1,484,608,413.43.

 

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

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.01.  Defined Terms.  As used in this Agreement, the following terms shall have the meanings specified below:

 

“ABL Collateral Agent” shall mean Wells Fargo Bank, National Association, as collateral agent under the ABL Facility for the benefit of the lenders thereunder, and its successors and assigns including any replacement or successor agent.

 

“ABL Credit Agreement” shall mean the amended and restated asset-based revolving credit agreement, dated as of the Closing Date, by and among the Borrower, each Subsidiary party thereto, the ABL Facility Agent and the various financial institutions from time to time party thereto, as amended, restated, amended and restated, supplemented or otherwise modified in accordance with the terms thereof, hereof and the Intercreditor Agreement.

 

“ABL Debt” shall have the meaning assigned to such term in the Intercreditor Agreement as of the Closing Date.

 

“ABL Facility” shall mean the senior secured asset-based revolving credit facility pursuant to the terms of the ABL Credit Agreement as it may be amended or refinanced in accordance with the terms thereof, hereof and the Intercreditor Agreement.

 

“ABL Facility Agent” shall mean Wells Fargo Bank, National Association, as administrative 

 

1

 

agent under the ABL Facility for the benefit of the lenders thereunder, including its successors and assigns including any replacement or successor agent successors thereto.

 

“ABL Facility Documents” shall mean the ABL Credit Agreement and each other document specified as a “Loan Document” in the ABL Credit Agreement, in each case, as amended, restated, amended and restated, supplemented or otherwise modified in accordance with the terms thereof, hereof and the Intercreditor Agreement.

 

“ABL Priority Collateral” shall have the meaning assigned to such term in the Intercreditor Agreement.

 

“ABL Refinancing” shall mean the amendment and restatement of the Existing ABL Facility with the ABL Facility.

 

“ABR”, when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

 

“Acquired Entity” shall have the meaning assigned to such term in Section 6.02(b).

 

“Acquisition” shall mean, with respect to any Person (a) an Investment in, or a purchase of a Controlling interest in, the Equity Interests of any other Person, (b) a purchase or other acquisition of all or substantially all of the assets or properties of another Person or of any business unit of another Person, (c) any merger or consolidation of such Person with any other Person or other transaction or series of transactions resulting in the acquisition of all or substantially all of the assets, or a Controlling interest in the Equity Interests, of any Person, or (d) any acquisition of any Store locations of any Person, in each case in any transaction or group of transactions which are part of a common plan.

 

“Acquisition Agreement” shall mean that certain Stock Purchase Agreement dated as of January 10, 2013 among Buyer, the Borrower and NAI.

 

“Additional Property” shall have the meaning assigned to such term in Section 9.21.

 

“Adjusted LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum equal to the greater of (a) 1.00% per annum and (b) the product of (i) the LIBO Rate in effect for such Interest Period and (ii) Statutory Reserves.

 

“Administrative Agent” shall have the meaning assigned to such term in the introductory statement to this Agreement.

 

“Administrative Agent Fees” shall have the meaning assigned to such term in Section 2.05.

 

“Administrative Questionnaire” shall mean an Administrative Questionnaire in the form of Exhibit A, or such other form as may be supplied from time to time by the Administrative Agent.

 

“Affiliate” shall mean, with respect to any Person, (a) 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, (b) any director, officer, managing member, partner, trustee or beneficiary of that Person, but excluding such Persons as to any Lender (or in the case of a Lender that is a Related Fund, the entity that administers or manages such Related Fund), (c) any other Person directly or indirectly holding 10% or more of any class of the Equity Interests of that Person, except in the case of a Lender (or in the case of a Lender that is a Related Fund, the entity that administers or manages such Related Fund), 35% or more of any class of the Equity Interests of such Person and (d) any other Person 10% or more of any class of whose Equity Interests is held directly or indirectly by that Person, except in the case of a Lender (or in the case of a Lender that is a Related Fund, the entity that administers or manages such Related Fund), 35% or more of any class of whose Equity Interests is held directly or indirectly by such Person.

 

“Agent Payment Account” shall mean the account of the Administrative Agent set forth on Schedule 9.01(b) or such other account of the Administrative Agent as the Administrative Agent may from time to time designate to the Borrower as the Agent Payment Account for purposes of this Agreement and the other Loan Documents.

 

“Agents” shall have the meaning assigned to such term in Article VIII.

 

2

 

“Agreement” shall have the meaning assigned to such term in the introductory statement to this Agreement.

 

“ALTA” shall mean American Land Title Association, or any successor thereto.

 

“Alternate Base Rate” shall mean, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1.00%, (c) the Adjusted LIBO Rate for a one-month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1.00% and (d) 2.00%; provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the rate determined on such day at approximately 11:00 a.m. (London time) by reference to the British Bankers’ Association Interest Settlement Rates for deposits in dollars (as set forth by any service selected by the Administrative Agent that has been nominated by the British Bankers’ Association as an authorized vendor for the purpose of displaying such rates).  If the Administrative Agent shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate for any reason, including the inability or failure of the Administrative Agent to obtain sufficient quotations in accordance with the terms of the definition thereof, the Alternate Base Rate shall be determined without regard to clause (b) of the preceding sentence until the circumstances giving rise to such inability no longer exist.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective on the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, as the case may be.

 

“Applicable Collateral List” shall mean the Closing Date Collateral List or, if any Restated Collateral List has been delivered to the Administrative Agent pursuant to Section 9.21 (and subject to the satisfaction of the conditions therein), the most recent Restated Collateral List so delivered.

 

“Applicable Margin” shall mean, for any day (a) with respect to any Eurodollar Loan, 3.50% per annum and (b) with respect to any ABR Loan, 2.50% per annum.

 

“ASC” shall mean American Stores Company, LLC, a Delaware limited liability company (formerly American Stores Company, a Delaware corporation).

 

“ASC Guarantee” shall mean that certain Guarantee by the Borrower of the ASC Notes, originally made by Albertson’s Inc., a Delaware corporation, pursuant to that Supplemental Indenture No. 2 dated as of July 6, 2005 between American Stores Company, LLC, a Delaware limited liability company and J.P. Morgan Trust Company, National Association, as successor trustee, to the ASC Indenture, as assigned by Albertson’s LLC, a Delaware limited liability company (formerly Albertson’s, Inc., a Delaware corporation) to the Borrower pursuant to that Assignment and Assumption Agreement dated on or about July 21, 2008 between Albertson’s LLC and the Borrower and that Supplemental Indenture No. 3 to the ASC Indenture dated as of July 21, 2008 between American Stores Company, LLC and Wells Fargo Bank, National Association, as successor trustee.

 

“ASC Indenture” shall mean the Indenture, dated as of May 1, 1995, between ASC and Wells Fargo Bank, National Association (as successor to The First National Bank of Chicago), as amended, supplemented or otherwise modified (including any such modification contained in any notes, officer’s certificates or other operative documents) as of the Closing Date or in accordance with the terms hereof.

 

“ASC Notes” shall have the meaning assigned to such term in the definition of NAI Sale.

 

“Assignment and Acceptance” shall mean an assignment and acceptance entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in the form of Exhibit B or such other form as shall be approved by the Administrative Agent.

 

“Attributable Indebtedness” shall mean, on any date, (a) in respect of any Capital Lease 

 

3

 

Obligation 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 and (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, agreement or instrument were accounted for as a capital lease.

 

“Auction” shall have the meaning assigned to such term in Section 9.04(k)(i).

 

“Auction Manager” means (a) the Administrative Agent or any of its Affiliates or (b) any other financial institution or advisor agreed by Borrower and Administrative Agent (whether or not an affiliate of the Administrative Agent) to act as an arranger in connection with any repurchases pursuant to Section 9.04(k).

 

“Audited Financial Statements” shall mean the audited Consolidated balance sheet of the Borrower and its Subsidiaries (prior to giving effect to the Transactions) for the Fiscal Year ended February 23, 2013, and the related Consolidated statements of income or operations, Shareholders’ Equity and cash flows (in each case, prior to giving effect to the Transactions) for such Fiscal Year of the Borrower and its Subsidiaries, including the notes thereto.

 

“Bank of America” shall mean Bank of America, N.A. and its successors and assigns.

 

“Barclays” shall mean Barclays Bank PLC and its successors and assigns.

 

“Blocked Account” shall mean a deposit account of a Loan Party to which funds from one or more DDAs are from time to time transferred.

 

“Blocked Account Agreement” shall mean, with respect to a deposit account established by a Loan Party, an agreement, in form and substance satisfactory to the Administrative Agent, establishing control (as defined in the UCC) of such account by the Administrative Agent and whereby the bank maintaining such account agrees to comply with instructions originated by the Administrative Agent without the further consent of any Loan Party.

 

“Blocked Account Bank” shall mean each bank at which a Blocked Account is located.

 

“Board” shall mean the Board of Governors of the Federal Reserve System of the United States of America.

 

“Borrower” shall have the meaning assigned to such term in the introductory statement to this Agreement.

 

“Borrower Assignment and Acceptance” shall mean an assignment and acceptance entered into by a Lender and the Borrower, and accepted by the Administrative Agent, in the form of Exhibit R or such other form as may be approved by the Administrative Agent.

 

“Borrower Materials” shall have the meaning assigned to such term in Section 9.01.

 

“Borrowing” shall mean Loans of the same Class and Type made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

 

“Borrowing Request” shall mean a request by the Borrower in accordance with the terms of Section 2.03 and substantially in the form of Exhibit C, or such other form as shall be approved by the Administrative Agent.

 

“Breakage Event” shall have the meaning assigned to such term in Section 2.16.

 

“Business” shall mean retail food operations through traditional and hard-discount retail food stores, wholesale distribution of products to independent retailers and other businesses reasonably related thereto.

 

“Business Day” shall mean 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 of New York and, if such day relates to any Eurodollar Loan, shall mean any such day on which dealings in Dollar deposits are conducted by and between banks in the London interbank market.

 

“Buyer” shall mean AB Acquisition LLC, a Delaware limited liability company.

 

“Capital Expenditures” shall mean, with respect to any Person for any period, (a) all expenditures made (whether made in the form of cash or other property) or costs incurred for the acquisition or improvement of fixed or capital assets of such Person (excluding normal 

 

4

 

replacements and maintenance which are properly charged to current operations), in each case that are (or should be) set forth as capital expenditures in a Consolidated statement of cash flows of such Person for such period, in each case prepared in accordance with GAAP, and (b) without duplication, Capital Lease Obligations or Synthetic Lease Obligations incurred by a Person during such period.

 

“Capital Leases” shall mean, with respect to any Person, any lease of (or any agreement conveying the right to use) any property (whether real, personal or mixed) by such Person as lessee which, in accordance with GAAP, is required to be classified and accounted for as liabilities on the balance sheet of such Person; provided, that, subject to any amendment entered into pursuant to Section 1.02, the adoption or issuance of any accounting standards after the Closing Date will not cause any lease that would not have been treated as a Capital Lease prior to such adoption or issuance to be deemed a Capital Lease regardless of whether such lease was entered into before or after such adoption or issuance.

 

“Capital Lease Obligations” of any Person shall mean the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP; provided, that, subject to any amendment entered into pursuant to Section 1.02, the adoption or issuance of any accounting standards after the Closing Date will not cause any lease that would not have been treated as a Capital Lease prior to such adoption or issuance to be deemed a Capital Lease regardless of whether such lease was entered into before or after such adoption or issuance.

 

“Cash Equivalents” shall mean Investments defined in clauses (a) through (e) of the definition of Permitted Investments, or the equivalents thereof described in the investment policy referred to in clause (f) of such definition.

 

“Casualty Event” shall mean any event that gives rise to the receipt by the Borrower or any Restricted Subsidiary of any insurance proceeds or condemnation awards in respect of any equipment, fixed assets or real property (including any improvements thereon) to replace or repair such equipment, fixed assets or real property.

 

“Cash Pension Contribution” shall mean the actual cash pension funding payments made by the Borrower and the Restricted Subsidiaries with respect to pension funding obligations for the applicable period.

 

“Cerberus” shall mean Cerberus Capital Management, L.P.

 

“CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq.

 

“CERCLIS” shall mean the Comprehensive Environmental Response, Compensation, and Liability Information System maintained by the United States Environmental Protection Agency.

 

“Certified Medicaid Provider” shall mean any provider or supplier, including without limitation a pharmacy, that has in effect an agreement with a Governmental Authority of a State to participate in Medicaid.

 

“Certified Medicare Provider” shall mean a provider or supplier, including without limitation a pharmacy, that has in effect an agreement with the Centers for Medicare and Medicaid Services to participate in Medicare.

 

“Change in Law” shall mean 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 or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority.  For purposes of this definition, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all rules, regulations, orders, requests, guidelines or directives thereunder or in connection therewith and all requests, rules, guidelines or directives concerning capital adequacy known as “Basel III” and

 

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promulgated either by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or by the United States or foreign regulatory authorities pursuant thereto, are deemed to have been adopted and gone into effect after the date of this Agreement.

 

“Change of Control” shall mean an event or series of events by which:

 

(a)   (i) any Person or two or more Persons (other than Cerberus or any of its Affiliates) acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of Equity Interests of the Borrower (or other securities convertible into such Equity Interests) representing 35% or more of the combined voting power of all Equity Interests of the Borrower on a fully-diluted basis (and taking into account all such Equity Interests that such “person” or “group” has the right to acquire pursuant to any option right) or (ii) any Person or two or more Persons (including Cerberus or any of its Affiliates) acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of Equity Interests of the Borrower (or other securities convertible into such Equity Interests) representing 50% or more of the combined voting power of all Equity Interests of the Borrower on a fully-diluted basis (and taking into account all such Equity Interests that such “person” or “group” has the right to acquire pursuant to any option right); or

 

(b)   during any period of up to 24 consecutive months, commencing before or after the date of this Agreement, individuals who at the beginning of such 24-month period were directors of the Borrower shall cease for any reason (other than due to death or disability) to constitute a majority of the board of directors of the Borrower (except to the extent that individuals who at the beginning of such 24-month period were replaced by individuals (i) elected by at least a majority of the remaining members of the board of directors of the Borrower or (ii) nominated for election by a majority of the remaining members of the board of directors of the Borrower and thereafter elected as directors by the shareholders of the Borrower).

 

“Charges” shall have the meaning assigned to such term in Section 9.09.

 

“Class”, when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are Loans, Other Loans or Extended Loans and, when used in reference to any Commitment, refers to whether such Commitment is a commitment to make Loans on the Second Restatement Date or an Incremental Loan Commitment.

 

“Closing Date” shall mean March 21, 2013.

 

“Closing Date Collateral List” shall mean the list of Real Estate sites of the Loan Parties attached hereto as Exhibit N.

 

“Co-Managers” shall mean MLPFS and Barclays, in their capacities as co-managers.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder (unless otherwise provided herein).

 

“Collateral” shall mean any and all “Collateral” as defined in any applicable Security Document and all other property that is or is intended under the terms of the Security Documents to be subject to Liens in favor of the Administrative Agent or the Collateral Agent and shall also include the Real Estate Collateral Properties and the Related Real Estate Collateral.

 

“Collateral Access Agreement and Lien Waiver” means an agreement reasonably satisfactory in form and substance to the Administrative Agent executed by (a) a bailee or other Person in possession of Collateral, or  (b) any landlord with respect to a lease of property on which is located Collateral or other assets that Administrative Agent may require access to, and use of, to realize on such Collateral, and pursuant to which such bailee, other Person, or landlord waives any lien that it may have in such Collateral.

 

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“Collateral Agent” shall have the meaning assigned to such term in the introductory statement to this Agreement.

 

“Collateral Assignment Agreement” shall mean that certain Collateral Assignment of Purchase Agreement and Escrow Agreement, dated as of the Closing Date, by and among the Borrower, the Administrative Agent and the Collateral Agent.

 

“Commitment” shall mean, with respect to any Lender, the commitment of such Lender to make Loans hereunder on the Second Restatement Date as set forth on Schedule A to the Second Amendment Agreement opposite such Lender’s name under the caption “New Term Loan Commitment”, or in the Assignment and Acceptance pursuant to which such Lender assumed its Commitment, as applicable, as the same may be reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.  The aggregate commitments on the Second Restatement Date, immediately prior to the funding of Loans on the Second Restatement Date, is $1,484,608,413.43.  Unless the context shall otherwise require, the “Commitments” shall include the Incremental Loan Commitments.  Each of the parties hereto hereby agrees that the Administrative Agent may, in consultation with the Borrower, take any and all action as may be reasonably necessary to ensure that, upon the effectiveness of the making of the Loans, all such Loans are included in each Borrowing of outstanding Loans on a pro rata basis.

 

“Communications” shall have the meaning assigned to such term in Section 9.01.

 

“Competitor” shall mean a Person, other than a Loan Party, who directly provides products or services that are the same or substantially similar to the products or services provided by, and that constitute a material part of the business of, the Loan Parties taken as a whole, and any Controlled Affiliate of any such Person, in each case who has been identified to the Administrative Agent in writing from time to time and posted to both the “Public Lender” and “Non-Public Lender” portions of the Platform subject to the confidentiality provisions thereof in accordance with Section 9.01 or otherwise made available to all Lenders and, in the case of Persons and Controlled Affiliates of any Person identified to the Administrative Agent on or after the Closing Date, to the extent reasonably acceptable to the Administrative Agent.  In no event shall the designation of a Person as a Competitor apply retroactively to disqualify any Lender as of the date of such designation.

 

“Compliance Certificate” shall mean a certificate substantially in the form of Exhibit D.

 

“Consolidated” shall mean, when used to modify a financial term, test, statement or report of a Person, the application or preparation of such term, test, statement or report (as applicable) based upon the consolidation, in accordance with GAAP, of the financial condition or operating results of such Person and its Subsidiaries.

 

“Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period plus (a) without duplication and to the extent deducted in determining such Consolidated Net Income, the sum of (i) Consolidated Interest Expense for such period, (ii) Consolidated income tax expense for such period, (iii) all amounts attributable to depreciation and amortization for such period, (iv) any extraordinary, non-recurring or unusual charges for such period (including such charges reflected in the financial statements provided to the Lenders prior to the Closing Date), (v) the amount of any non-cash charges, losses or expenses (and minus the amount of such cash gains) resulting from the application of Statement of Financial Accounting Standards No. 123(R) and (vi) Transaction Expenses incurred within one year after the Closing Date, minus (b) without duplication (i) all cash payments made during such period on account of reserves, restructuring charges and other non-cash charges added to Consolidated Net Income pursuant to clauses (a)(iv) and (a)(v) above in a previous period and (ii) to the extent included in determining such Consolidated Net Income, any extraordinary, non-recurring or unusual gains for such period, all determined on a Consolidated basis in accordance with GAAP; provided, that for purposes of calculating the Total Leverage Ratio or the Total Secured Leverage Ratio for any period, (A) the Consolidated EBITDA of any Acquired Entity acquired or investment made by the Borrower or any Restricted Subsidiary pursuant to a Permitted Acquisition during such period shall be 

 

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included on a pro forma basis for such period (assuming the consummation of such acquisition and the incurrence or assumption of any Indebtedness in connection therewith occurred as of the first day of such period) and (B) the Consolidated EBITDA of any Person or line of business sold or otherwise disposed of by the Borrower or any Restricted Subsidiary during such period for shall be excluded for such period (assuming the consummation of such sale or other disposition and the repayment of any Indebtedness in connection therewith occurred as of the first day of such period); provided, further, that for the Fiscal Quarter ending February 23, 2013 and the Fiscal Quarter ending June 15, 2013, Consolidated EBITDA shall be calculated on the basis used in preparing the Deal Basis Financial Statements (as more particularly described in Section 3.05(f) and the Lender Presentation).

 

“Consolidated Interest Expense” shall mean, for any period (a) the interest expense (including imputed interest expense in respect of Capital Lease Obligations and Synthetic Lease Obligations) minus (b) the interest income, in each case, of the Borrower and the Restricted Subsidiaries for such period, determined on a Consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” shall mean, for any period, the net income or loss of the Borrower and the Restricted Subsidiaries for such period determined on a Consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income of any Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions by such Restricted Subsidiary of such income is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, statute, rule or governmental regulation applicable to such Restricted Subsidiary, (b) the income of any Person (other than the Borrower and the Restricted Subsidiaries) in which any other Person (other than the Borrower and the Restricted Subsidiaries or any director holding qualifying shares in compliance with applicable law) owns an Equity Interest, except to the extent of the amount of dividends or other distributions actually paid to the Borrower and the Restricted Subsidiaries during such period, (c) the income or loss of any Person accrued prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with the Borrower or any Restricted Subsidiary or the date that such Person’s assets are acquired by the Borrower or any Restricted Subsidiary and (d) any gains attributable to Dispositions.

 

“Contractual Obligation” shall mean, as to any Person, any provision 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” shall mean 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, and the terms “Controlling” and “Controlled” shall have meanings correlative thereto.

 

“Credit Card Agreements” shall mean all agreements now or hereafter entered into by the Borrower or for the benefit of the Borrower, in each case with any Credit Card Issuer or any Credit Card Processor with respect to sales transactions involving credit card or debit card purchases, including, but not limited to, the agreements set forth on Schedule 3.21(b) hereto.

 

“Credit Card Notification” shall have the meaning assigned to such term in Section 5.13(a).

 

“Credit Card Issuer” shall mean any person (other than a Loan Party) who issues or whose members issue credit cards, including, without limitation, MasterCard or VISA bank credit or debit cards or other bank credit or debit cards issued through World Financial Network National Bank, MasterCard International, Inc., Visa, U.S.A., Inc. or Visa International and American Express, Discover, Diners Club, Carte Blanche and other non-bank credit or debit cards, including, without limitation, credit or debit cards issued by or through American Express Travel Related Services Company, Inc., Novus Services, Inc., PayPal and other issuers approved by the Administrative Agent.

 

“Credit Card Processor” shall mean any servicing or processing agent or any factor or financial 

 

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intermediary who facilitates, services, processes or manages the credit authorization, billing transfer and/or payment procedures with respect to the Borrower’s sales transactions involving credit card or debit card purchases by customers using credit cards or debit cards issued by any Credit Card Issuer.

 

“Credit Card Receivables” shall mean each “Account” (as defined in the UCC) together with all income, payments and proceeds thereof, owed by a Credit Card Issuer or Credit Card Processor to a Loan Party resulting from charges by a customer of a Loan Party on credit or debit cards issued by such Credit Card Issuer or processed by such Credit Card Processor (including, without limitation, electronic benefits transfers) in connection with the sale of goods by a Loan Party, or services performed by a Loan Party, in each case in the ordinary course of its business.

 

“Credit Suisse” shall mean Credit Suisse AG and its successors and assigns.

 

“CS Securities” shall mean Credit Suisse Securities (USA) LLC and its successors and assigns.

 

“Cumulative Credit Amount” shall mean, as of any date, an amount (which shall not be less than zero), determined on a cumulative basis, equal to, without duplication:  (a) the Retained Excess Cash Flow Amount, plus (b) the cumulative amount of Net Cash Proceeds received by the Borrower on or after March 21, 2013 from issuances of the Borrower’s Qualified Capital Stock (but excluding any such sale or issuance by the Borrower of its Equity Interests upon exercise of any warrant or option by directors, officers or employees of any Loan Party or any Subsidiary), minus (c) the cumulative amount of Permitted Investments made in reliance on subclause (y) of clause (o) of the definition thereof, minus (d) the cumulative amount of Restricted Payments made in reliance on Section 6.06(iv), minus (e) the cumulative amount of any payments of Indebtedness made in reliance on Section 6.07(a)(vii).

 

“Current Assets” shall mean, at any time, the consolidated current assets (other than cash and Permitted Investments) of the Borrower and the Subsidiaries.

 

“Current Liabilities” shall mean, at any time, the consolidated current liabilities of the Borrower and the Subsidiaries at such time, but excluding, without duplication, (a) the current portion of any long-term Indebtedness and (b) outstanding revolving loans and swingline loans under the ABL Credit Agreement.

 

“Customer Support Transaction” shall mean any one of the following transactions in the ordinary course of the business of the Loan Parties consistent with the current practices as of the Closing Date: (a) any sublease by a Loan Party to a customer of any Loan Party of leased real property or equipment of such Loan Party that constitutes a Capital Lease, (b) any lease by a Loan Party to a customer of any Loan Party of owned real property or equipment of such Loan Party that constitutes a Capital Lease, (c) any assignment of a lease of real property or equipment by a Loan Party that constitutes a Capital Lease to a customer of any Loan Party in connection with which the assigning Loan Party is not released from liability under such lease, (d) any Guarantee by a Loan Party for the benefit of a third party of Indebtedness or operating lease obligations of a customer of any Loan Party, (e) any loan of money or property (other than ABL Priority Collateral or Term Loan Priority Collateral) by a Loan Party to a customer and (f) any transfer of equipment or lease of Real Estate or equipment not otherwise permitted pursuant to this Agreement by a Loan Party to a customer; provided, that the foregoing shall not be construed to apply to the sale of inventory on credit by a Loan Party to a customer in the ordinary course of business.

 

“Customer Support Transaction Report” shall a report demonstrating in reasonable detail the aggregate exposure of all Loan Parties under Customer Support Transactions.

 

“DDA” shall mean each checking, savings or other demand deposit account maintained by any of the Loan Parties, other than (i) such accounts used for trust, payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of any Loan Party’s employees or exclusively used for the receipt of Medicare and Medicaid receivables or exclusively used to hold funds for the benefit of a particular person in a manner permitted pursuant to the Loan Documents and (ii) such accounts pledged to secure Indebtedness and subject to, or containing proceeds of 

 

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property subject to, a Permitted Encumbrance.  All funds in each DDA shall be presumed to be Collateral and proceeds of Collateral and the Administrative Agent and the Lenders shall have no duty to inquire as to the source of the amounts on deposit in any DDA.

 

“DDA Notification” shall have the meaning assigned to such term in Section 5.17(d).

 

“Deal Basis Financial Statements” shall have the meaning assigned to such term in Section 3.05(f).

 

“Debtor Relief Laws” shall mean 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 and affecting the rights of creditors generally.

 

“Default” shall mean 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 constitute an Event of Default.

 

“Defaulting Lender” shall mean, subject to the second proviso of this definition, any Lender for which the Administrative Agent has received notification that such Lender is, or has a direct or indirect parent company that is (i) insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors or (ii) the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor or sequestrator or the like has been appointed for such Lender or its direct or indirect parent company, or such Lender or its direct or indirect parent company has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender; provided that a Defaulting Lender that has adequately remedied all matters that caused such Lender to be a Defaulting Lender shall cease to be a Defaulting Lender.

 

“Discharge of ABL Debt” shall have the meaning assigned to such term in the Intercreditor Agreement.

 

“Discharge of Obligations” shall have the meaning assigned to such term in Section 9.20(a).

 

“Disposition” or “Dispose” shall mean the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction and any sale, transfer, license or other disposition (whether in one transaction or in a series of transactions) of any property (including, without limitation, any Equity Interests) by any Person (or the granting of 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.

 

“Disqualified Stock” shall mean any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable, in each case, at the option of the holder thereof) or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the Latest Maturity Date; provided, that (i) only the portion of such Equity Interests which so matures or is mandatorily redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such date shall be deemed to be Disqualified Stock and (ii) with respect to any Equity Interest issued to any employee or to any plan for the benefit of employees of the Borrower or its Subsidiaries or by any such plan to such employees, (x) such Equity Interest shall not constitute Disqualified Stock solely because it may be required to be repurchased by the 

 

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Borrower or one of its Subsidiaries in order to satisfy obligations or as a result of such employee’s termination, resignation, death or disability, (y) if any class of such Equity Interest of such Person that by its terms authorizes such Person to satisfy its obligations thereunder by delivery of an Equity Interest that is not Disqualified Stock, such Equity Interests shall not be deemed to be Disqualified Stock solely by reason thereof and (z) any such Equity Interest that would constitute Disqualified Stock solely because the holders thereof have the right to require a Loan Party to repurchase such Equity Interest upon the occurrence of a change of control or an asset sale shall not constitute Disqualified Stock.  The amount of Disqualified Stock deemed to be outstanding at any time for purposes of this Agreement will be the maximum amount that the Borrower and its Subsidiaries may become obligated to pay upon maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock or portion thereof, plus accrued dividends.

 

“Documentation Agents” shall mean MLPFS and Barclays, in their capacities as documentation agents.

 

“Dollars” or “$” shall mean lawful money of the United States of America.

 

“Domestic Subsidiary” shall mean any direct or indirect Subsidiary of a Loan Party other than a Foreign Subsidiary.

 

“E&Y” shall mean Ernst & Young LLP.

 

“Eligible Assignee” shall mean any Person other than a natural Person that is (i) a Lender, an Affiliate of any Lender or a Related Fund (any two or more Related Funds being treated as a single Eligible Assignee for all purposes hereof) or (ii) a commercial bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in Regulation D) and which extends credit or buys loans in the ordinary course; provided that notwithstanding anything herein to the contrary, “Eligible Assignee” shall not include any Person that is a Loan Party (other than the Borrower to the extent provided in Section 9.04(k)), any of the Loan Parties’ Affiliates, any Subsidiaries, Cerberus and any of its Affiliates, any Competitor or any Lender that at the time of the proposed assignment is a Defaulting Lender.

 

“Engagement Letter” shall mean the Engagement Letter, dated as of January 21, 2014, among the Borrower and the Arrangers.

 

“Environmental Laws” shall mean any and all Federal, state, and local statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the Release of any Hazardous Materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

 

“Environmental Liability” shall mean any liability, obligation, damage, loss, claim, action, suit, judgment, order, fine, penalty, fee, expense, or cost, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, or any other Loan Party resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, labeling, storage, treatment, disposal or recycling of, or presence of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Equipment” shall have the meaning assigned to such term in the UCC.

 

“Equity Interests” shall mean, with respect to any Person, the shares of capital stock of (or other ownership or profit interests in) such Person, 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, 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 any of the other ownership or profit interests in such Person (including partnership, member or trust interests 

 

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therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974 and the regulations promulgated thereunder, as amended and in effect.

 

“ERISA Affiliate” shall mean any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of Sections 414(b) or (c) of the Code (and Sections 4.14(m) and (o) of the Code for purposes of provisions relating to Sections 412 or 430 of the Code).

 

“ERISA Event” shall mean (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it 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 Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an 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 or Multiemployer Plan; (f) 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 (g) the breach of any terms of the PBGC Agreement.

 

“Escrow Agreement” shall mean that certain escrow agreement, dated as of the Closing Date, by and among the Borrower, ASC and JPMorgan Chase Bank, N.A., as escrow agent.

 

“Eurodollar”, when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.

 

“Events of Default” shall have the meaning assigned to such term in Section 7.01.

 

“Excess Cash Flow” shall mean, for (A) the period from the Closing Date until February 22, 2014, and (B) any subsequent Fiscal Year of the Borrower (commencing with the Fiscal Year ending closest to February 28, 2015) (a) the sum, without duplication, of (i) Consolidated EBITDA for such period, (ii) reductions to noncash working capital of the Borrower and the Restricted Subsidiaries for such period (i.e., the decrease, if any, in Current Assets minus Current Liabilities from the beginning to the end of such period), (iii)  the amount by which the Pension Expense for such period exceeds the Cash Pension Contribution for such period, if any, and (iv) the Net Cash Proceeds of any Other Asset Sale (whether a single transaction or a series of related transactions) received by the Borrower and the Restricted Subsidiaries during such period in which such Net Cash Proceeds are greater than $50,000 but less than $5,000,000, minus (b) the sum, without duplication, of (i) the amount of any Taxes payable in cash by the Borrower and the Restricted Subsidiaries with respect to such period, (ii) Consolidated Interest Expense for such period paid in cash, (iii) Capital Expenditures made in cash during such period, except to the extent financed with the proceeds of Indebtedness, equity issuances, casualty proceeds, condemnation proceeds or other proceeds that would not be included in Consolidated EBITDA, (iv) scheduled repayments of Indebtedness (other than Indebtedness in respect of the ABL Facility) made in cash by the Borrower and the Restricted Subsidiaries during such period, but only to the extent that the Indebtedness so repaid by its terms cannot be reborrowed or redrawn and such repayments do not occur in connection with a refinancing of all or any portion of such Indebtedness, (v) additions to noncash working capital for such period (i.e., the increase, if any, in Current Assets minus Current Liabilities from the beginning to the end of such period), (vi) the amount by which the Cash Pension Contribution for such period exceeds the Pension Expense for such period, if any, and (vii) the amount of Restricted Payments made in cash during such period 

 

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to the extent permitted under Section 6.06.

 

“Excluded DDAs” shall mean each checking, savings or other demand deposit account maintained by any Loan Party and exclusively used (a) for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of any Loan Party’s employees, (b) for the receipt of Medicare and Medicaid receivables of a Loan Party, (c) to hold proceeds of Term Loan Priority Collateral, subject to the Intercreditor Agreement, unless and until the release of the Lien thereon of the Agents, or (d) for the receipt and deposit of funds of a specific Person other than a Loan Party, or which a Loan Party is holding in trust or as a fiduciary for such Person, in each case in a manner permitted under this Agreement or the other Loan Documents.

 

“Excluded Information” shall have the meaning assigned to such term in Section 9.04(l).

 

“Excluded Real Estate Collateral” shall mean any property that would otherwise constitute a Material Real Estate Asset or Real Estate Collateral Property, (1) that is subject to the terms of a contract, agreement, lease, permit, license, charter or license agreement, or applicable law with respect thereto, the valid grant of a Lien therein to the Collateral Agent would constitute or result in a breach, termination or default under such contract, agreement, lease, permit, license, charter or license agreement and such breach, termination or default has not been or is not waived or the consent of the other party to such contract, agreement, lease, permit, license, charter or license agreement has not been or is not otherwise obtained or under applicable law such prohibition cannot be waived, or which is subject to adverse environmental or other conditions that the Collateral Agent determines makes it unsuitable as collateral and (2) which the Collateral Agent in its discretion designates as Excluded Real Estate Collateral.

 

“Excluded Subsidiaries” shall mean, at any date of determination, each (a) Immaterial Subsidiary, (b) Foreign Subsidiary, (c)  Unrestricted Subsidiary, (d) Subsidiary that is not wholly owned, directly or indirectly, by the Borrower or (e) Insurance Captive; provided that, notwithstanding the foregoing, Moran Foods shall not be deemed to be an Excluded Subsidiary.

 

“Excluded Taxes” shall mean, with respect to the Administrative Agent or any Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction described in clause (a) above, (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 2.21(a)), any U.S. federal withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Lender’s failure to comply with Section 2.20(e), in each case except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrower with respect to such withholding tax pursuant to Section 2.20(a) and (d) any U.S. federal withholding taxes imposed as a result of a Foreign Lender’s failure to comply with FATCA.

 

“Existing ABL Credit Agreement” shall mean that certain asset-based revolving credit agreement, dated as of August 30, 2012, by and among the Borrower, each Subsidiary party thereto, the ABL Facility Agent and the various financial institutions from time to time party thereto.

 

“Existing ABL Facility” shall mean the Borrower’s existing senior secured asset-based revolving credit facility, documented pursuant to the Existing ABL Credit Agreement.

 

“Existing Debt Documents” shall mean, collectively, the SVU 2016 Notes, the SVU 2021 Notes, the SVU Indenture (but solely in respect of the SVU 2016 Notes and the SVU 2021 Notes) and any other notes, indentures, instruments or other agreements evidencing, governing or related to any other Material Indebtedness or securitization arrangements of the Borrower or any of its 

 

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Subsidiaries incurred after the Closing Date with a maturity prior to the date that is five years from the Closing Date.

 

“Existing Term Loan Credit Agreement” shall mean the Term Loan Credit Agreement, dated as of August 30, 2012, among the Borrower, Credit Suisse, as administrative agent, and the various lenders and agents party thereto from time to time.

 

“Existing Term Loan Facility” shall mean the Borrower’s existing senior secured term loan credit facility, documented pursuant to the Existing Term Loan Credit Agreement.

 

“Extended Loan Yield Differential” shall have the meaning assigned to such term in Section 2.23.

 

“Extended Loans” shall have the meaning assigned to such term in Section 2.23.

 

“Extending Lender” shall have the meaning assigned to such term in Section 2.23.

 

“Extension Amendment” shall have the meaning assigned to such term in Section 2.23.

 

“Extension Election” shall have the meaning assigned to such term in Section 2.23.

 

“Extension Fee” shall have the meaning assigned to such term in Section 2.23.

 

“Extension Request” shall have the meaning assigned to such term in Section 2.23.

 

“Facility Guaranty” shall mean the Facility Guaranty, dated as of the Closing Date, made by the Guarantors in favor of the Administrative Agent and the other Secured Parties, substantially in the form of Exhibit G hereto.

 

“Farm Products” shall have the meaning defined in the Food Security Act and the UCC.

 

“Farm Products Sellers” shall mean, collectively, sellers or suppliers to any Loan Party of any Farm Products and including any milk or dairy products, perishable agricultural commodity (as defined in the PACA) or livestock (as defined in the PSA), meat, meat food products or livestock products derived therefrom or any poultry or products derived therefrom; sometimes referred to herein individually as a “Farm Products Seller”.

 

“FATCA” shall mean current Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

“FCPA” shall have the meaning assigned to such term in Section 3.31.

 

“Federal Funds Effective Rate” shall mean, for any day, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for the day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 

“Fee Letter” shall mean the Fee Letter, dated as of January 10, 2013, among the Borrower, Goldman Sachs, CS Securities, Credit Suisse, MSSF, MLPFS, Bank of America and Barclays.

 

“Fees” shall mean the Administrative Agent Fees and the Participation Fees.

 

“Fiscal Intermediary” shall mean any qualified insurance company or other Person that has entered into an ongoing relationship with any Governmental Authority to make payments to payees under Medicare, Medicaid or any other Federal, state or local public health care or medical assistance program pursuant to any of the Health Care Laws.

 

“Fiscal Period” shall mean any four-week or five-week fiscal period of any Fiscal Year, in accordance with the fiscal accounting calendar of the Loan Parties as in effect on the Closing Date.

 

“Fiscal Quarter” shall mean the period consisting of the first four Fiscal Periods of each Fiscal Year and the next three periods of three Fiscal Periods each in such Fiscal Year.

 

“Fiscal Year” shall mean any period of 13 consecutive Fiscal Periods ending on the last Saturday of February of any calendar year.

 

“First Amendment Agreement” shall mean that certain Amendment Agreement, dated as of the 

 

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First Restatement Date effecting, among other things, the amendment and restatement of the Original Credit Agreement, among the Borrower, the other Loan Parties, the Administrative Agent, the Collateral Agent and the Lenders listed on the signature pages thereto.

 

“First Restated Credit Agreement” shall mean that certain Amended and Restated Term Loan Credit Agreement, dated as of May 16, 2013 (as in effect immediately prior to the amendment and restatement thereof on the Second Restatement Date pursuant to the Second Amendment Agreement), among the Borrower, the other Loan Parties and the lenders and agents time to time party thereto.

 

“First Restatement Date” shall mean May 16, 2013.

 

“Flood Certificate” shall mean a “Standard Flood Hazard Determination Form” of the Federal Emergency Management Agency and any successor Governmental Authority performing a similar function.

 

“Flood Program” shall mean the National Flood Insurance Program created by the U.S. Congress pursuant to the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973, the National Flood Insurance Reform Act of 1994 and the Flood Insurance Reform Act of 2004, in each case as amended from time to time, and any successor statutes.

 

“Flood Zone” shall mean areas having special flood hazards as described in the National Flood Insurance Act of 1968, as amended from time to time, and any successor statute.

 

“Food Security Act” shall mean the Food Security Act of 1984, 7 U.S.C. § 1631 et. seq., as the same now exists or may hereafter from time to time be amended, modified, recodified or supplemented, together with all rules and regulations thereunder.

 

“Food Security Act Notices” shall have the meaning assigned to such term in Section 3.27(a).

 

“Foreign Lender” shall mean any Lender that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code.

 

“Foreign Subsidiary” shall mean a direct or indirect Subsidiary of a Loan Party organized or incorporated under the laws of a jurisdiction other than a State of the United States, the United States or the District of Columbia.

 

“GAAP” shall mean United States generally accepted accounting principles in effect from time to time.

 

“Goldman Sachs” shall have the meaning assigned to such term in the introductory statement to this Agreement.

 

“Governmental Authority” shall mean 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).

 

“Granting Lender” shall have the meaning assigned to such term in Section 9.04(i).

 

“Ground Lease” shall mean, individually and collectively, as the context may require, each ground lease described on the Applicable Collateral List.

 

“Guarantee” shall mean, 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

 

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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 (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).  The term “Guarantee” as a verb shall have a meaning correlative thereto.

 

“Guarantor” shall mean (a) each Subsidiary of the Borrower that is not an Excluded Subsidiary, together with its successors and assigns, and (b) each other Subsidiary of the Borrower from time to time party to the Facility Guaranty.

 

“Hazardous Materials” shall mean all chemicals, materials, substances or wastes of any nature that are listed, classified, regulated, characterized or otherwise defined as “hazardous,” “toxic,” “radioactive,” a “pollutant,” a “contaminant,” or terms of similar intent or meaning, by any Governmental Authority or that are otherwise prohibited, limited or regulated pursuant to any Environmental Law, including petroleum or petroleum distillates, friable asbestos or friable asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes.

 

“Health Care Laws” shall mean all Federal, state and local laws, rules, regulations, interpretations, guidelines, ordinances and decrees primarily relating to patient healthcare, any health care provider, medical assistance and cost reimbursement program, as now or at any time hereafter in effect, applicable any Loan Party, including, but not limited to, the Social Security Act, the Social Security Amendments of 1972, the Medicare-Medicaid Anti-Fraud and Abuse Amendments of 1977, the Medicare and Medicaid Patient and Program Protection Act of 1987, HIPAA and the Patient Protection and Affordable Care Act of 2010.

 

“HIPAA” shall mean the Health Insurance Portability and Accountability Act of 1996, as the same now exists or may hereafter from time to time be amended, modified, recodified or supplemented, together with all rules and regulations thereunder.

 

“HIPAA Compliance Date” shall have the meaning assigned to such term in Section 3.28(b).

 

“HIPAA Compliance Plan” shall have the meaning assigned to such term in Section 3.28(a).

 

“HIPAA Compliant” shall have the meaning assigned to such term in Section 3.28(b).

 

“Immaterial Subsidiary” shall mean each Subsidiary of the Borrower identified as an “Immaterial Subsidiary” pursuant to a certificate executed and delivered by a Responsible Officer of the Borrower to the Administrative Agent within 60 days of the delivery of annual financial statements pursuant to Section 5.01(a) (certifying as to each of the items set forth in the following proviso); provided (i) no Subsidiary shall be an Immaterial Subsidiary if the book value of its assets (net of assets arising from intercompany transactions that would be eliminated on a Consolidated balance sheet of the Borrower) exceed 1.00% of the Total Assets of the Borrower and its Subsidiaries on a Consolidated basis and (ii) the aggregate book value of the assets of all Immaterial Subsidiaries (net of assets arising from intercompany transactions that would be eliminated on a Consolidated balance sheet of the Borrower) shall not exceed 5.00% of the Total Assets of the Borrower and its Subsidiaries on a Consolidated basis, in each case as determined for the most recently completed Fiscal Quarter for which the Borrower has provided financial statements pursuant to Section 5.01(b); provided, further, that Moran Foods shall not constitute an Immaterial Subsidiary.

 

“Incremental Lender” shall mean a Lender with an Incremental Loan Commitment or an outstanding Incremental Loan.

 

“Incremental Loan Amount” shall mean, at any time, the excess, if any, of (a) $500,000,000 over (b) the aggregate amount of all Incremental Loan Commitments established prior to such time pursuant to Section 2.22.

 

“Incremental Loan Assumption Agreement” shall mean an Incremental Loan Assumption Agreement among, and in form and substance reasonably satisfactory to, the Borrower, the Administrative Agent and one or more Incremental Lenders.

 

“Incremental Loan Commitment” shall mean the commitment of any Lender, established pursuant to Section 2.22, to make Incremental Loans to the Borrower.

 

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“Incremental Loan Maturity Date” shall mean the final maturity date of any Incremental Loan, as set forth in the applicable Incremental Loan Assumption Agreement.

 

“Incremental Loan Repayment Dates” shall mean the dates scheduled for the repayment of principal of any Incremental Loan, as set forth in the applicable Incremental Loan Assumption Agreement.

 

“Incremental Loans” shall mean Loans made by one or more Lenders to the Borrower pursuant to Section 2.01(b).  Incremental Loans may be made in the form of additional Loans or, to the extent permitted by Section 2.22 and provided for in the relevant Incremental Loan Assumption Agreement, Other Loans.

 

“Indebtedness” shall mean, 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;

 

(b)   the maximum amount of all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, and similar instruments (and including reimbursement obligations in connection with surety bonds);

 

(c)   the Swap Termination Value under any Swap Contract;

 

(d)   all obligations of such Person to pay the deferred purchase price of property or services which are due six months or more from the date after such property is acquired or such services are completed, and including, without limitation, customary indemnification, adjustment of purchase price or similar obligations, earn-outs or other similar obligations (but excluding trade accounts payable incurred in the ordinary course of business on normal trade terms and not overdue by more than 90 days unless such trade payables or other obligations are being contested or disputed by such Person in good faith), in each case to the extent required to be recorded as liabilities in accordance with GAAP;

 

(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 of such Person;

 

(g)   all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interests of such Person or any other Person (including, without limitation, Disqualified Stock), or any warrant, right or option to acquire such Equity Interests, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends;

 

(h)   all obligations under, or the net investments outstanding pursuant to, any receivables financing; and

 

(i)   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 

 

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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; provided, (i) as to Swap Contracts relating to fuel entered into by the Borrower in the ordinary course of business consistent with its current practices, the Swap Termination Value may be determined at the end of the most recently ended Fiscal Period for purposes of this Agreement and (ii) as to Swap Contracts other than such Swap Contracts with respect to fuel, the Swap Termination Value may be determined at the end of the most recently ended Fiscal Period for purposes of this Agreement until the Administrative Agent may notify the Borrower otherwise.

 

“Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

 

“Indemnitee” shall have the meaning assigned to such term in Section 9.05(b).

 

“Information” shall have the meaning assigned to such term in Section 9.16.

 

“Insurance Captive” shall mean each of (a) Wetterau Insurance Co. Ltd., a Bermuda corporation, (b) Market Company, Ltd., a Bermuda corporation and (c) such other Subsidiaries of the Borrower that perform similar insurance functions, in each case to the extent organized and maintained as a captive insurance Subsidiary of the Borrower.

 

“Intercreditor Agreement” shall mean the Intercreditor Agreement, dated as of the Closing Date, by and among the Administrative Agent, the Collateral Agent and the ABL Facility Agent, as acknowledged and agreed to by the Borrower and the Guarantors, providing for such parties’ relative rights and priorities with respect to the assets and properties of the Loan Parties and related matters, substantially in the form of Exhibit I hereto.

 

“Intercreditor Provisions” shall have the meaning assigned to such term in Section 7.01(p).

 

“Interest Payment Date” shall mean (a) with respect to any ABR Loan, the last Business Day of each March, June, September and December, and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day that would have been an Interest Payment Date had successive Interest Periods of three months’ duration been applicable to such Borrowing.

 

“Interest Period” shall mean, with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day (or, if there is no numerically corresponding day, on the last day) in the calendar month that is one, two, three or six months (or 12 months if agreed to by all Lenders and, with respect to a Eurodollar Borrowing on the Second Restatement Date, the period commencing on the Second Restatement Date and ending on March 31, 2014) thereafter, as the Borrower may elect; provided, however, that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, (b) any Interest Period 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 (c) no Interest Period for any Loan shall extend beyond the maturity date of such Loan.  Interest shall accrue from and including the first day of an Interest Period to but excluding the last day of such Interest Period.  For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

 

“Internal Control Event” shall mean a material weakness in, or fraud that involves senior management or other employees who have a significant role in, the Borrower’s and/or its Subsidiaries’ internal controls over financial reporting, in each case as described in the Securities Laws.

 

“Internally Generated Cash” shall mean, with respect to any Person, funds of such Person and its Restricted Subsidiaries not constituting (x) proceeds of the issuance of (or contributions in respect 

 

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of) Equity Interests of such Person, (y) proceeds of the incurrence of Indebtedness (other than the incurrence of loans under the ABL Facility or extensions of credit under any other revolving credit or similar facility or other short-term Indebtedness) by such Person or any of its Restricted Subsidiaries or (z) proceeds of Dispositions and Casualty Events.

 

“Investment” shall mean, 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 Indebtedness of, or purchase or other acquisition of any other debt or interest in, another Person, (c) any Acquisition or (d) any other investment of money or capital in order to obtain a profitable return.  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.

 

“IRS” shall mean the United States Internal Revenue Service.

 

“Joinder Agreement” shall mean an agreement, in form satisfactory to the Administrative Agent, pursuant to which a Subsidiary becomes a party to, and bound by the terms of, this Agreement, the Facility Guaranty or the Security Agreement, as applicable.

 

“Joint Lead Arrangers” shall mean Goldman Sachs, CS Securities and MSSF, in their capacities as joint bookrunners and joint lead arrangers.

 

“Latest Maturity Date” shall mean, at any date of determination, the latest maturity date applicable to any Class of Loans or Commitments with respect to such Loans or Commitments at such date of determination, including, for the avoidance of doubt, the latest maturity date of any Incremental Loans, Incremental Loan Commitments, Other Loans or Extended Loans, in each case, as extended from time to time in accordance with this Agreement.

 

“Laws” shall mean each international, foreign, Federal, state and local statute, treaty, rule, guideline, regulation, ordinance, code and administrative or judicial precedent or authority, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and each applicable administrative order, directed duty, request, license, authorization and permit of, and agreement with, any Governmental Authority, in each case whether or not having the force of law.

 

“Lender Presentation” shall mean the Lender Presentation, dated January 2013, included in the Borrower’s current report on form 8-K filed January 28, 2013.

 

“Lenders” shall mean (a) the Persons listed on Schedule A to the Second Amendment Agreement (other than any such Person that has ceased to be a party hereto pursuant to an Assignment and Acceptance) and (b) any Person that has become a party hereto pursuant to an Assignment and Acceptance.

 

“LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest Period, the rate per annum determined by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the commencement of such Interest Period by reference to the British Bankers’ Association Interest Settlement Rates for deposits in Dollars (as set forth by any service selected by the Administrative Agent that has been nominated by the British Bankers’ Association as an authorized information vendor for the purpose of displaying such rates) for a period equal to such Interest Period; provided that, to the extent that an interest rate is not ascertainable pursuant to the foregoing provisions of this definition, the “LIBO Rate” shall be the interest rate per annum determined by the Administrative Agent to be the average of the rates per annum at which deposits in Dollars are offered for such relevant Interest Period to major banks in the London interbank market in London, England by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of such Interest Period.

 

“Lien” shall mean (a) any mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, 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 

 

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nature whatsoever (including any conditional sale, any lease or other agreement giving rise to a Capital Lease Obligation, Synthetic Lease Obligation, or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing) and (b) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

 

“Loan Documents” shall mean this Agreement, the First Amendment Agreement, the Second Amendment Agreement, the Intercreditor Agreement, the Security Documents, each Incremental Loan Assumption Agreement, the promissory notes, if any, executed and delivered pursuant to Section 2.04(e) and any other document executed in connection with any of the foregoing and together with all schedules, exhibits, annexes and other attachments thereto.

 

“Loan Parties” shall mean, collectively, the Borrower and the Guarantors.

 

“Loans” shall mean term loans made by the Lenders to the Borrower pursuant to Section 2.01.  Unless the context shall otherwise require, the term “Loans” shall include any Incremental Loans and any Extended Loans.

 

“Master Agreement” shall have the meaning assigned to such term in the definition of “Swap Contract.”

 

“Material Adverse Effect” shall mean (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of the Loan Parties to perform their obligations under the Loan Documents; or (c) a material impairment of the rights and remedies of the Administrative Agent or the Lenders under the Loan Documents or a material adverse effect upon the legality, validity, binding effect or enforceability against the Loan Parties of the Loan Documents.  In determining whether any individual event would result in a Material Adverse Effect, notwithstanding that such event in and of itself does not have such effect, a Material Adverse Effect shall be deemed to have occurred if the cumulative effect of such event and all other then existing events described in the applicable provision since the applicable date would result in a Material Adverse Effect.

 

“Material Contract” shall mean with respect to any Loan Party, each contract or agreement to which such Loan Party is a party that is deemed to be a material contract or material definitive agreement under any Securities Laws applicable to such Loan Party, including, without limitation, the types of contracts specified in item 601(b)(10)(ii) of Regulation S-K, and in the event that at any time hereafter the Borrower ceases to be required to comply with the Securities Laws, then the same definitions shall continue to apply for purposes of this Agreement and the other Loan Documents.

 

“Material Indebtedness” shall mean the Indebtedness evidenced by or arising under the Existing Debt Documents and any other Indebtedness (other than the Obligations) of the Loan Parties in an aggregate principal amount exceeding $50,000,000.  For purposes of determining the amount of Material Indebtedness at any time, (a) the amount of the obligations in respect of any Swap Contract at such time shall be calculated at the Swap Termination Value thereof, (b) undrawn committed or available amounts shall be included and (c) all amounts owing to all creditors under any combined or syndicated credit arrangement shall be included.

 

“Material Real Estate Asset” means Real Estate (other than an operating leasehold interest and Excluded Real Estate Collateral) having a Value in excess of $1,000,000, as determined in good faith by the Borrower, the acquiring Loan Party, E&Y or another independent, third-party expert reasonably satisfactory to the Administrative Agent, as of the date of the acquisition thereof.

 

“Material Related Collateral Location” means any Real Estate, other than a Real Estate Collateral Property, owned, leased or operated by the Borrower or any Loan Party if the Value of the property, plant and equipment (excluding information technology, leasehold improvements, vehicles and aircraft) located at such Real Estate on the Borrower’s or such Loan Party’s financial statements exceeds $150,000 as of the Closing Date or as of the acquisition thereof.

 

“Maturity Date” shall mean March 21, 2019.

 

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“Maximum Rate” shall have the meaning assigned to such term in Section 9.09.

 

“Medicaid” shall mean the health care financial assistance program jointly financed and administered by the Federal and State governments under Title XIX of the Social Security Act.

 

“Medicare” shall mean the health care financial assistance program under Title XVIII of the Social Security Act.

 

“MLPFS” shall mean Merrill Lynch, Pierce, Fenner & Smith Incorporated and its successors and assigns.

 

“MMMF” shall having the meaning assigned to such term in the Escrow Agreement.

 

“Moody’s” shall mean Moody’s Investors Service, Inc., or any successor thereto.

 

“Moran Foods” shall mean Moran Foods, LLC, a Missouri limited liability company.

 

“Moran Sale” shall mean a sale, transfer or other disposition (including by way of merger, casualty, condemnation or otherwise) of all or substantially all of the assets or property of Moran Foods and its Subsidiaries (whether in one transaction or a series of related transactions) or of all of the outstanding Equity Interests of Moran Foods; provided that (a) no Default or Event of Default shall have occurred or be continuing or shall occur as a result of any such transaction, (b) the Borrower shall have delivered to the Administrative Agent opinions of counsel, in each case in form and substance reasonably satisfactory to the Administrative Agent, opining that the occurrence of any such transaction (i) will not conflict with the SVU Indenture, the SVU 2016 Notes, the SVU 2021 Notes or any other Material Indebtedness, (ii) will not result in any “change of control” offer or similar offer being required to be made under the SVU Indenture, the SVU 2016 Notes, the SVU 2021 Notes or any other any Material Indebtedness and (iii) will not result in the application of any of the consolidation, merger, conveyance, transfer or lease of assets (however so denominated) provisions of the SVU Indenture, the SVU 2016 Notes, the SVU 2021 Notes or any other Material Indebtedness, (c) to the extent applicable, the Borrower shall apply the Net Cash Proceeds thereof in accordance with Section 2.13, (d) the consideration paid in connection therewith shall be paid contemporaneously with consummation thereof (other than consideration received in connection with customary earn-out arrangements (calculated as of the date of such Moran Sale as the present value of expected future payments in respect thereof) in an amount not to exceed 25% of the aggregate consideration therefor) and shall be in an amount not less than the fair market value of the property disposed of and (e) the consideration paid in connection therewith shall be at least 75% in cash or Cash Equivalents.

 

“Mortgage” shall mean any mortgage, deed of trust or leasehold mortgage delivered pursuant to clause (a) of the definition of “Term Loan Priority Collateral Requirements” encumbering any Real Estate Collateral Property, given by the Loan Party owning or leasing such Real Estate Collateral Property in favor of the Collateral Agent, substantially in the form of Exhibit H hereto or such other form reasonably satisfactory to the Administrative Agent, together with such schedules and including such provisions as shall be necessary to conform such document to applicable Laws or as shall be customary under applicable Laws.

 

“MSSF” shall mean Morgan Stanley Senior Funding, Inc. and its successors and assigns.

 

“Multiemployer Plan” shall mean 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 six plan years, has made or been obligated to make contributions.

 

“NAI” shall mean New Albertson’s, Inc., an Ohio corporation.

 

“NAI Indenture” shall mean the Indenture, dated as of May 1, 1992, between NAI and U.S. Bank National Association, as trustee, as successor trustee to Morgan Guaranty Trust Company of New York, as supplemented by Supplemental Indenture No. 1 dated as of May 7, 2004, Supplemental Indenture No. 2 dated as of June 1, 2006, and Supplemental Indenture No. 3 dated as of December 29, 2008, and as further amended, supplemented or otherwise modified (including any such modification contained in any notes, officer’s certificates or other operative documents) as of the Closing Date.

 

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“NAI Notes” shall have the meaning assigned to such term in the definition of “NAI Sale”.

 

“NAI Sale” shall mean the purchase by Buyer of all of the issued and outstanding shares of NAI from the Borrower (together with the subsequent transfer pursuant to Section 1.5 of the Acquisition Agreement by the Borrower to NAI of (x) the equity interests in US Satellite Corporation, Inc. and (y) the FCC-issued licenses and permits set forth in Section 5.23 of the Seller Disclosure Letter to the Acquisition Agreement as in effect on the Closing Date, in each case as to such equity interests and licenses and permits retained by the Borrower solely for the purpose of obtaining necessary regulatory consents) in consideration of, among other things, not less than $100,000,000 in cash and Cash Equivalents, as adjusted in accordance with the Acquisition Agreement, Buyer shall acquire NAI subject to certain direct and indirect liabilities, including those arising under the notes (including, without limitation, NAI’s 7.25% Notes due 2013, 7.45% Debentures due 2029, 7.75% Debentures due 2026, 8.70% Debentures due 2030, 8.00% Debentures due 2031 and 6.34-7.15% Medium Term Notes due 2013-2028) issued by NAI pursuant to the NAI Indenture (the “NAI Notes”), and the notes (including, without limitation, ASC’s 7.90% Debentures due 2017, 8.00% Debentures due 2026, 7.50% Debentures due 2037 and 7.10% Medium Term Notes due 2028) issued by ASC under the ASC Indenture (the “ASC Notes”), certain capital leases and all workers’ compensation claims (and including any obligations to provide any form of security for the benefit of the California Office of Self Insured Funds, the California Department of Industrial Relations or the California Self-Insured Security Fund or similar entities) relating to banners operated by NAI and its Subsidiaries (the “NAI Workers’ Compensation Liabilities”), and the Borrower and its Subsidiaries after giving effect to the NAI Sale shall have their liability eliminated, limited or indemnified in a manner reasonably satisfactory to the Joint Lead Arrangers (as defined in the Original Credit Agreement) in connection with the NAI Workers’ Compensation Liabilities (and such obligations to provide any form of security) and the ASC Notes. In connection with the NAI Sale, the Buyer and the Borrower will enter into transition services agreements and a cross-license agreement as contemplated by the Acquisition Agreement.

 

“NAI Workers’ Compensation Liabilities” shall have the meaning assigned to such term in the definition of “NAI Sale”.

 

“Net Cash Proceeds” shall mean (a) with respect to any Term Loan Priority Collateral Sale, Other Asset Sale or Moran Sale, the cash proceeds (including cash proceeds subsequently received (as and when received) in respect of noncash consideration initially received), net of (i) selling expenses (including reasonable broker’s fees or commissions, legal fees, transfer and similar taxes and the Borrower’s good faith estimate of income taxes paid or payable in connection with such sale), (ii) amounts provided as a reserve, in accordance with GAAP, against any liabilities under any indemnification obligations or purchase price adjustment associated with such Term Loan Priority Collateral Sale or Other Asset Sale (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds) and (iii) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness which is secured by the asset sold in such Term Loan Priority Collateral Sale or Other Asset Sale by a Lien permitted hereunder which, to the extent the Administrative Agent has a Lien on such asset, is senior to the Administrative Agent’s Lien on such asset and which is required to be repaid with such proceeds (excluding any such Indebtedness assumed by the purchaser of such asset); and (b) with respect to any issuance or incurrence of Indebtedness (other than Permitted Indebtedness) or Equity Interests (other than Equity Interests issued to directors, officers or employees of the Borrower or its Subsidiaries), the cash proceeds thereof, net of all taxes and customary fees, commissions, costs and other expenses incurred in connection therewith.

 

“New Valuation” shall mean any valuation of a Substitute Property, a Replaced Property, a Released Property or an Additional Property conducted by E&Y or another independent, third-party expert reasonably satisfactory to the Administrative Agent provided in connection with the 

 

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applicable Term Loan Priority Collateral Substitution, Term Loan Priority Collateral Release or Term Loan Priority Collateral Addition for which the New Valuation Conditions have been met.

 

“New Valuation Conditions” shall mean with respect to a Substitute Property, a Replaced Property, a Released Property (other than in connection with a Permitted Disposition) or an Additional Property consisting of Real Estate, such property (i) has not been Valued during the year preceding the date of the Restated Collateral List provided in connection with the applicable Term Loan Priority Collateral Substitution, Term Loan Priority Collateral Release or Term Loan Priority Addition and is Valued at more than $4,000,000 pursuant to the most recent Valuation thereof or (ii) has not been Valued; provided that, notwithstanding the foregoing, the New Valuation Conditions shall be deemed to be satisfied at any time after the aggregate Value of all Substitute Properties and Additional Properties that have been added to the Term Loan Priority Collateral during the current Fiscal Year without being Valued at any time in such Fiscal Year exceeds $10,000,000.

 

“Non-Extended Loans” shall have the meaning assigned to such term in Section 2.23.

 

“NPL” shall mean the National Priorities List under CERCLA.

 

“Obligations” shall mean all obligations, liabilities and indebtedness of every kind, nature and description owing by any Loan Party to any Secured Party, including principal, interest, charges, fees, premiums, indemnities and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, arising under any of the Loan Documents, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of the Loan Documents or after the commencement of any case with respect to any Loan Party under the Bankruptcy Code or any other Debtor Relief Law or any other insolvency proceeding (and including, without limitation, any principal, interest, fees, costs, expenses and other amounts which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or in part in such case or similar proceeding), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured.

 

“Occurrence Update Schedule”  shall mean each of Schedule 3.01 (Loan Parties Organizational Information), 3.06 (Litigation), 3.09 (Environmental Matters),  3.10 (for primary casualty insurance policies that cover Collateral), 3.13 (Subsidiaries; Other Equity Investments), 3.17 (Intellectual Property Matters) and 3.21(b) (Credit Card Agreements).

 

“OFAC” shall have the meaning assigned to such term in Section 3.30.

 

“Offer” shall have the meaning assigned to such term in the Tender Offer Agreement.

 

“OID” shall have the meaning assigned to such term in Section 2.22(b).

 

“Original Credit Agreement” shall mean that certain Term Loan Credit Agreement, dated as of March 21, 2013 (as in effect immediately prior to the amendment and restatement thereof on the First Restatement Date pursuant to the First Amendment Agreement), among the Borrower, the other Loan Parties and the lenders and agents time to time party thereto.

 

“Organization Documents” shall mean, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with 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; (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; and (d) in each case, all shareholder or other equity holder agreements, voting trusts and similar arrangements to which such Person is a party.

 

“Original Loans” shall have the meaning assigned to such term in Section 2.23.

 

“Other Asset Sale” shall mean a sale, transfer or other disposition (including by way of merger, 

 

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casualty, condemnation or otherwise) that is not a Permitted Disposition pursuant to clauses (a) through (n) of the definition thereof or clause (p) of the definition thereof, of any assets or property of the Borrower and the Restricted Subsidiaries other than a Disposition consisting solely of Term Loan Priority Collateral or Equity Interests of any Subsidiary to the extent the assets of such Subsidiary consist solely of Term Loan Priority Collateral.

 

“Other Loans” shall have the meaning assigned to such term in Section 2.22(a).

 

“Other Taxes” shall mean any and all present or future stamp or documentary Taxes or any other excise or property Taxes, charges or similar levies arising from any payment made under any Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, any Loan Document.

 

“PACA” shall mean the Perishable Agricultural Commodities Act, 1930, as amended, 7 U.S.C. § 499a et. seq., as the same now exists or may hereafter from time to time be amended, modified, recodified or supplemented, together with all rules and regulations thereunder.

 

“Participation Fees” shall have the meaning assigned to such term in Section 2.05.

 

“PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

 

“PBGC Agreement” shall mean that certain term sheet by and among AB Acquisition LLC, the Borrower and the PBGC, dated January 9, 2013, and any subsequent agreement entered into pursuant thereto.

 

“PCAOB” shall mean the Public Company Accounting Oversight Board.

 

“Pension Expense” shall mean the actual pension expense for the applicable period of the Borrower and the Restricted Subsidiaries pursuant to the profit and loss statement charge (or benefit) with respect to such pension funding obligations for such period.

 

“Pension Plan” shall mean any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA Affiliate or to which Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding six plan years.

 

“Perfection Certificate” shall mean the Perfection Certificate substantially in the form of Exhibit E hereto.

 

“Periodic Update Schedule” shall mean each of Schedule 3.13 (as to Immaterial Subsidiaries and Unrestricted Subsidiaries), 3.08(b) (Owned Real Estate), 3.08(c) (Leased Real Estate), 3.10 (for policies other than primary casualty policies that cover Collateral) and 3.21(a) (Demand Deposit Accounts).

 

“Permitted Acquisition” shall mean an Acquisition permitted pursuant to Section 6.02(b).

 

“Permitted Disposition” shall mean any of the following:

 

(a)   Dispositions of Inventory in the ordinary course of business (which for this purpose does not include any Disposition in connection with a Store closing or sale of a Store location);

 

(b)   bulk sales of the Inventory of a Loan Party not in the ordinary course of business in connection with Store closings, provided that the number of such Store closings and related sales of Inventory, minus the number of new Store locations opened during the same period, shall not exceed in any Fiscal Year of the Borrower and its Subsidiaries, seven and one-half percent (7.5%) of the number of the Loan Parties’ Stores as of the beginning of such Fiscal Year and shall not exceed, in the aggregate from and after the Closing Date, fifteen percent (15.0%) of the number of the Loan Parties’ Stores in existence as of the Closing Date;

 

(c)   non-exclusive licenses or sublicenses of Intellectual Property of a Loan Party or any of its Subsidiaries in the ordinary course of business;

 

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(d)   licenses for the conduct of licensed departments within the Loan Parties’ Stores in the ordinary course of business;

 

(e)   Dispositions in the ordinary course of business of Equipment that is, in the reasonable good faith judgment of the Borrower, no longer useful or necessary in its business or that of a Subsidiary;

 

(f)   Dispositions among the Loan Parties or by any Restricted Subsidiary to a Loan Party; provided, that with respect to any such Disposition of Real Estate Collateral Property (a) the Borrower provides at least 15 Business Days prior written notice thereof (or such shorter notice as the Administrative Agent may approve) identifying such Real Estate Collateral Property, (b) such Real Estate Collateral Property is Disposed of subject in all respects to the Mortgage thereon and such Mortgage remains a valid first priority lien on such Real Estate Collateral Property so Disposed of and (c) the Borrower shall have delivered to the Administrative Agent such documents and other information evidencing that such Real Estate Collateral Property was so Disposed of subject to the Mortgage thereon as the Administrative Agent may reasonably request;

 

(g)   Dispositions by an Excluded Subsidiary to an Excluded Subsidiary or to a Loan Party;

 

(h)   (i) Dispositions of interests in Real Estate that constitute, create or occur pursuant to Permitted Encumbrances pursuant to clauses (f), (g) and (h) of the definition thereof (but only to the extent thereof); (ii) Dispositions in the ordinary course of business of fixtures that (A) are, in the reasonable good faith judgment of the Borrower, no longer useful or necessary in its business or that of a Subsidiary or (B) are replaced with similar property having at least equivalent value; (iii) with respect to Real Estate that does not constitute Term Loan Priority Collateral, sale and leaseback transactions pursuant to leases on market terms, so long as, as of the date of such sale and after giving effect thereto, (x) no Default or Event of Default shall exist or have occurred and be continuing and (y) the consideration paid to such Loan Party in connection therewith shall be paid contemporaneously with the transaction (other than consideration received in connection with customary earn-out arrangements in an amount (calculated as of the date of such Disposition as the present value of expected future payments in respect thereof) not to exceed 25% of the aggregate consideration therefor) and shall be in an amount not less than the fair market value of the property disposed of and shall be at least 75% in cash or Cash Equivalents; and (iv) assignments or terminations of leases, subleases, licenses, and sublicenses, that do not constitute Term Loan Priority Collateral and that, in the reasonable, good faith judgment of a Loan Party, are no longer useful or necessary in its business or that of any Subsidiary;

 

(i)   Dispositions by any Loan Party constituting a Customer Support Transaction; provided, that the aggregate exposure of the Loan Parties under or pursuant to all of such Customer Support Transactions, when combined with the aggregate exposure of the Loan Parties under or pursuant to Investments made pursuant to clause (n) of the definition of “Permitted Investments” and Indebtedness incurred pursuant to clause (j) of the definition of “Permitted Indebtedness”, shall not exceed $250,000,000 at any time outstanding; provided, further, that, as to any such Disposition, each of the following conditions is satisfied:

 

(i) as of the date of any such Disposition, and in each case after giving effect thereto, no Default or Event of Default shall have occurred and be continuing;

 

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(ii) the Person receiving the property subject to such Disposition shall be engaged in a business related, ancillary or complementary to the business of the Borrower permitted by this Agreement; and

 

(iii) the Administrative Agent shall have received a Customer Support Transaction Report once each month;

 

(j)   Dispositions by any Loan Party of Intellectual Property; provided that, (i) such Intellectual Property is no longer used or useful in the business of any Loan Party or Restricted Subsidiary, (ii) such Intellectual Property is not otherwise material to the business of any Loan Party or any of its Affiliates or Subsidiaries, (iii) such Intellectual Property does not have material value and (iv) no Default or Event of Default shall have occurred and be continuing as of the date of such Disposition;

 

(k)   sales of Prescription Files in the ordinary course of business, other than in connection with the sale of a Store location where such Prescription Files are maintained or in connection with the sale of other assets (and in such case, clause (o) of this definition shall be applicable), (i) in connection with the sale of one or more Stores or (ii) in the ordinary course of business; provided, that as to any such sale pursuant to this clause (ii), each of the following conditions is satisfied: (A) the appraised value (as determined pursuant to the ABL Credit Agreement) of all Prescription Files disposed of pursuant to this clause (ii) in any one Fiscal Year shall not exceed $12,500,000 and (B) as of the date of any such sale and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing;

 

(l)   the NAI Sale;

 

(m)   the issuance and sale by any Loan Party or Restricted Subsidiary of Equity Interests of such Loan Party or Restricted Subsidiary after the Closing Date; provided that (i) such Loan Party or Restricted Subsidiary shall not be required to pay any cash dividends or repurchase or redeem such Equity Interests or make any other payments in respect thereof, except as otherwise permitted in Section 6.06, (ii) as of the date of such issuance and sale and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing and (iii) no wholly-owned Restricted Subsidiary that is a Loan Party shall issue and sell Equity Interests to any Person other than another Loan Party;

 

(n)   Dispositions pursuant to a Permitted Store Swap Transaction or consisting of transfers described in clause (s) of the definition of Permitted Encumbrances;

 

(o)   sales or other Dispositions (including, for the avoidance of doubt, Dispositions of Intellectual Property, but excluding any Moran Sale) of assets of Loan Parties not otherwise subject to the provisions set forth in this definition, provided that, as to any such sale or other Disposition, each of the following conditions is satisfied:

 

(i) the consideration paid in connection therewith shall be paid contemporaneously with consummation of the transaction (other than consideration received in connection with customary earn-out arrangements in an amount (calculated as of the date of such Disposition as the present value of expected future payments in respect thereof) not to exceed 25% of the aggregate consideration therefor), shall be in an amount not less than the fair market value of the property disposed of and shall be at least 75% in cash or Cash Equivalents;

 

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(ii) if such sale or Disposition is a sale and leaseback transaction, such transaction is permitted under clause (h)(iii) above;

 

(iii) such sale or Disposition does not involve the sale or other disposition of a minority Equity Interest in any wholly-owned Restricted Subsidiary or Accounts of any Loan Party;

 

(iv) in the case of any (A) Term Loan Priority Collateral Sale or (B) Other Asset Sale (whether a single transaction or a series of related transactions) including Term Loan Priority Collateral for which the Net Cash Proceeds (before deducting the Value of any Term Loan Priority Collateral included therein) exceed $5,000,000, (x) the ratio of the aggregate Value of the Term Loan Priority Collateral (giving pro forma effect to any permitted reinvestment of proceeds) to the amount of outstanding Obligations on a pro forma basis after giving effect to such Term Loan Priority Collateral Sale or Other Asset Sale and any related prepayments of the Loans (using such Net Cash Proceeds that the Borrower has elected not to exercise its right of reinvestment pursuant to Section 2.13(a) or (b) with respect thereto) shall not be less than the ratio of the aggregate Value of the Term Loan Priority Collateral to the amount of outstanding Obligations prior to giving effect to such Term Loan Priority Collateral Sale or Other Asset Sale and (y) in the case of a Term Loan Priority Collateral Sale or Other Asset Sale with respect to which the Borrower has elected to exercise its right of reinvestment pursuant to Section 2.13(a) or (b), (i) the Related Real Estate Collateral on a pro forma basis after giving effect to such Term Loan Priority Collateral Sale or Other Asset Sale and such reinvestment shall not constitute more than 45% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral and (ii) the owned Real Estate Collateral Properties on a pro forma basis after giving effect to such Term Loan Priority Collateral Sale or Other Asset Sale and such reinvestment shall constitute at least 50% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral; and

 

(v) as of the date of any such sale or Disposition, and in each case after giving effect thereto, no Default or Event of Default shall have occurred and be continuing;

 

(p)   any Moran Sale; and

 

(q)   any Disposition pursuant to a Store Conversion Transaction.

 

“Permitted Encumbrances” shall mean:

 

(a)   Liens imposed by law for Taxes that are not yet delinquent (or remain payable without penalty) or are being contested in compliance with Section 5.04; provided that adequate reserves with respect thereto are maintained on the books of the relevant Loan Party, to the extent required by GAAP;

 

(b)   carriers’, warehousemen’s, mechanics’, materialmen’s, landlords’, repairmen’s and other like Liens imposed by applicable Law, arising in the ordinary course of business and securing obligations that are not delinquent (or remain payable without penalty) or are being contested in compliance with Section 5.04 (other than clause (iv) thereof);

 

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(c)   pledges and deposits of cash made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations, other than any Lien imposed by ERISA;

 

(d)   deposits of cash to secure the performance of bids, trade contracts, government contracts, leases (other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and to secure liability to insurance carriers, and other obligations of a like nature incurred in the ordinary course of business;

 

(e)   Liens in respect of judgments that would not constitute an Event of Default hereunder;

 

(f)   (i) easements, covenants, conditions, restrictions, building code laws, zoning restrictions, leases, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business and such other minor title defects or survey matters that are disclosed by current surveys (or would have been disclosed by current surveys if the same were not obtained); provided, that in each case, the same does not (A) secure any monetary obligation that is not Permitted Indebtedness, (B) materially detract from the value of the affected Real Estate Collateral Property, (C) materially detract from the value of the affected property as a going concern in connection with such Loan Party’s business or (D) materially interfere with the ordinary conduct of business of any Loan Party; and (ii) Liens and encumbrances against or upon any property as shown on or pursuant to the express terms of a document shown on (A) Schedule B-I or B-II of the Title Insurance Policies insuring the Mortgages, or (B) surveys of the Real Estate Collateral Properties to the extent such surveys were provided to the Collateral Agent pursuant to the Term Loan Priority Collateral Requirements;

 

(g)   interests or title of lessors, sublessors, licensors or sublicensors under any lease or license otherwise permitted pursuant to this Agreement;

 

(h)   Leases, subleases, licenses, sublicenses and similar encumbrances on Real Estate, Intellectual Property and other property, or interests therein, arising in the ordinary course of business (or in connection with a Store closure permitted under this Agreement) for fair market value; provided that, in each case, if such Real Estate, Intellectual Property or other property is owned by a Loan Party, such lease, sublease, license, sublicense, or similar encumbrance does not secure any monetary obligation that is not Permitted Indebtedness, and does not materially detract from the value of the affected property operated by a Loan Party as a going concern in connection with such Loan Party’s business or materially interfere with the ordinary conduct of business of any Loan Party or any Store closures otherwise permitted under this Agreement; provided, further, that to the extent affected Real Estate constitutes Real Estate Collateral Property, such leases, subleases, licenses, sublicenses, and similar encumbrances do not also materially detract from the value of such Real Estate Collateral Property;

 

(i)   Liens existing on the First Restatement Date and listed on Schedule 6.01 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, (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 otherwise permitted hereunder;

 

(j)   Liens on fixed or capital assets acquired or constructed by any Loan Party which secure Indebtedness permitted under clauses (c) or (f) of the definition of “Permitted 

 

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Indebtedness” so long as (i) such Liens and the Indebtedness secured thereby are incurred prior to or within 180 days after such acquisition, improvement or construction, (ii) the principal amount of the Indebtedness secured thereby does not exceed the cost of acquisition and construction of such fixed or capital assets (including any shipping and installation costs) and (iii) such Liens shall not extend to any other property or assets of the Loan Parties other than proceeds of such secured property or assets;

 

(k)   Liens in favor of the Administrative Agent;

 

(l)    Liens of landlords if the leases are not in default in respect of rent, except where a Collateral Access Agreement and Landlord Waiver is required by Section 5.17;

 

(m)   possessory Liens in favor of brokers and dealers arising in connection with the acquisition or disposition of Permitted Investments; provided that such Liens (i) attach only to such Permitted Investments and (ii) secure only obligations incurred in the ordinary course and arising in connection with the acquisition or disposition of such Permitted Investments and not any obligation in connection with margin financing;

 

(n)   banker’s Liens, Liens in favor of securities intermediaries, rights of setoff or similar rights and remedies as to deposit accounts or securities accounts or other funds maintained with depository institutions or securities intermediaries in the ordinary course of business of the maintenance and operation of such accounts;

 

(o)   Liens arising from precautionary UCC filings regarding “true” operating leases or, to the extent permitted under the Loan Documents, the consignment of goods to a Loan Party;

 

(p)   Liens on property (other than ABL Priority Collateral) in existence at the time such property is acquired pursuant to a Permitted Acquisition or on such property of a Subsidiary of a Loan Party in existence at the time such Subsidiary is acquired pursuant to a Permitted Acquisition; provided that such Liens are not incurred in connection with or in anticipation of such Permitted Acquisition and do not attach to any other assets of any Loan Party or any Subsidiary;

 

(q)   Liens or rights of setoff against credit balances of the Borrower with Credit Card Issuers or Credit Card Processors or amounts owing by such Credit Card Issuers or Credit Card Processors to the Borrower in the ordinary course of business, but not Liens on or rights of setoff against any other property or assets of the Borrower pursuant to the Credit Card Agreements to secure the obligations of the Borrower to such Credit Card Issuers or Credit Card Processors as a result of fees and chargebacks;

 

(r)   Liens on inventory in favor of customs and revenues authorities imposed by applicable Law arising in the ordinary course of business in connection with the importation of goods and securing obligations not secured by deposits permitted pursuant to clause (d) of this definition, (i) that are being contested in good faith by appropriate proceedings, (ii) as to which the applicable Loan Party or Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (iii) which contest effectively suspends collection of the contested obligation and enforcement of any Lien securing such obligation;

 

(s)   transfers of any receivables not included in the Borrowing Base (as defined in the ABL Credit Agreement) to secure any receivables financing that constitutes Permitted Indebtedness under clause (k) of the definition thereof;

 

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(t)   Liens in favor of the ABL Facility Agent in and on the ABL Priority Collateral to secure the ABL Facility and in and on the Term Loan Priority Collateral to secure the ABL Debt; provided that such Liens are at all times subject to the terms of the Intercreditor Agreement;

 

(u)   Leases and licenses constituting Permitted Dispositions; and

 

(v)   other Liens on assets (other than Term Loan Priority Collateral) to secure obligations permitted hereunder that do not exceed $30,000,000 at any time outstanding.

 

“Permitted Indebtedness” shall mean each of the following, so long as no Default or Event of Default exists or would arise from the incurrence thereof:

 

(a)   Indebtedness outstanding on the First Restatement Date and listed on Schedule 6.03 hereto and any Permitted Refinancing Indebtedness with respect thereto;

 

(b)   (i) unsecured Indebtedness of any Loan Party to any other Loan Party or (ii) unsecured Indebtedness of any Loan Party or a Restricted Subsidiary to any Restricted Subsidiary that is not a Loan Party arising in the ordinary course of their respective businesses or conducted on the Closing Date pursuant to the cash concentration and disbursement practices of the Lead Borrower and its Subsidiaries, provided, that, as to such Indebtedness or other obligations of a Loan Party to a Restricted Subsidiary that it not a Loan Party, (A) will be subordinated in right of payment to the payment in full of the Obligations on terms and conditions reasonably satisfactory to Administrative Agent pursuant to a subordination agreement to be delivered to Administrative Agent within 30 days after the Closing Date (or such longer period of time as the Administrative Agent may agree), (B) repayments of such Indebtedness or other obligations shall be permitted in the ordinary course of their businesses consistent with and pursuant to the cash concentration and disbursement practices of the Borrower and its Subsidiaries as conducted on the Closing Date, so long as no Specified Event of Default exists or has occurred and (C) Borrower shall cause any Restricted Subsidiary that is not a Loan Party not to exercise any legal remedies to enforce any of the Indebtedness or other obligations owed to it;

 

(c)   without duplication of Indebtedness described in clause (f) of this definition, purchase money Indebtedness of any Loan Party incurred after the Closing Date to finance the acquisition of any fixed or capital assets, including Capital Lease Obligations and Synthetic Lease Obligations, and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, any earn-out obligations that constitute Indebtedness incurred in a transaction permitted hereunder and any Permitted Refinancing Indebtedness with respect thereto; provided, that the aggregate principal amount of Indebtedness permitted by this clause (c), when combined with the aggregate principal amount of all Indebtedness incurred pursuant to clause (f) of this definition, shall not exceed $300,000,000 at any time outstanding and in any event the incurrence of such Indebtedness permitted by this clause (c), when combined with the aggregate principal amount of all Indebtedness incurred pursuant to clause (f) of this definition, in any Fiscal Year (commencing with the Fiscal Year in which the Closing Date occurs) shall not exceed $100,000,000;

 

(d)   obligations (contingent or otherwise) of any Loan Party or any Subsidiary thereof existing or arising under any Swap Contract, provided that (i) 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 fluctuations in interest rates or foreign exchange rates or commodity prices, and not for purposes of speculation or taking a “market view” and (ii) the aggregate Swap Termination Value of all such Swap Contracts, excluding Swap Contracts 

 

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entered into to mitigate risks associated with interest on the Loans, shall not exceed $25,000,000 at any time outstanding;

 

(e)   contingent liabilities under surety bonds or similar instruments incurred in the ordinary course of business;

 

(f)   Indebtedness incurred after the Closing Date for the construction or acquisition or improvement of, or to finance or to refinance the construction, acquisition or improvement of, any Real Estate owned by any Loan Party (including therein any Indebtedness incurred in connection with sale and leaseback transactions permitted hereunder), provided, that the aggregate principal amount of Indebtedness permitted by this clause (f), when combined with the aggregate principal amount of all Indebtedness incurred pursuant to clause (c) of this definition, shall not exceed $300,000,000 at any time outstanding and in any event the incurrence of such Indebtedness permitted by this clause (f), when combined with the aggregate principal amount of all Indebtedness incurred pursuant to clause (c) of this definition, in any Fiscal Year (commencing with the Fiscal Year in which the Closing Date occurs) shall not exceed $100,000,000;

 

(g)   Indebtedness of any Person that becomes a Subsidiary of a Loan Party in a Permitted Acquisition, which Indebtedness is existing at the time such Person becomes a Subsidiary of a Loan Party (other than Indebtedness incurred in contemplation of such Permitted Acquisition);

 

(h)   the Obligations;

 

(i)   Indebtedness under the ABL Facility in an aggregate outstanding principal amount not to exceed $1,250,000,000 and any Permitted Refinancing Indebtedness with respect thereto;

 

(j)   Indebtedness of any Loan Party pursuant to Customer Support Transactions; provided, that as of the date of incurring such Indebtedness and after giving effect thereto, (i) the aggregate amount of the exposure of the Loan Parties under or pursuant to all Customer Support Transactions (including, without duplication, Customer Support Transactions constituting Permitted Indebtedness, Permitted Investments and Permitted Dispositions) shall not exceed $250,000,000, (ii) the aggregate amount of the exposure under any one of the types of transactions described in clauses (a), (b), (c) or (e) of the definition of “Customer Support Transactions” shall not exceed $150,000,000 at any time outstanding and (iii) no Default or Event of Default shall exist or have occurred and be continuing;

 

(k)   Obligations under, or the net investments outstanding pursuant to, a receivables financing involving transfers described in clause (s) of the definition of Permitted Encumbrances, in an amount not to exceed $200,000,000;

 

(l)   Indebtedness of the Borrower and the Restricted Subsidiaries for customary indemnification, purchase price adjustments or similar obligations (other than earn-outs and similar obligations) in each case in respect of the purchase price or other similar adjustments incurred in connection with a Permitted Acquisition or Permitted Disposition;

 

(m)   Indebtedness of a Loan Party as an account party in respect of letters of credit issued pursuant to a Commercial LC Facility (as defined in the ABL Credit Agreement), provided, in no event shall the aggregate amount of all such Indebtedness in respect of all Commercial LC Facilities exceed $15,000,000 at any time outstanding;

 

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(n)   other Indebtedness of the Borrower or the Restricted Subsidiaries (in the case of Indebtedness of the Restricted Subsidiaries, in an aggregate principal amount not to exceed $150,000,000 at any time outstanding) and Permitted Refinancing Indebtedness in respect thereof, provided, that with respect to such Indebtedness or Permitted Refinancing Indebtedness, (i) as of the incurrence of such Indebtedness (A) both before and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing and (B) the Total Leverage Ratio of the Borrower shall not exceed 4.00:1.00 on a pro forma basis after giving effect to such incurrence of Indebtedness and the use of proceeds thereof, (ii) such Indebtedness shall have a maturity date that is at least 91 days after the Latest Maturity Date, (iii) the terms and provisions of such Indebtedness (including any guarantees thereof) shall be, taken as a whole, not materially more favorable to the lenders than those contained in the Loan Documents, (iv) such Indebtedness does not provide for any early maturity (excluding any maturity as the result of an optional redemption by the issuer thereof or an event of default), is not mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, is not redeemable at the option of the holder thereof (other than pursuant to customary asset sale and change of control provisions that permit payment of the Obligations prior to the payment of such Indebtedness), in whole or in part, and does not require the payment of any cash dividend or any other scheduled amortization payments in excess of 1.00% of the principal amount thereof in any Fiscal Year constituting a return of capital, (v) if such Indebtedness is subordinated to any other Indebtedness of any Loan Party or its Subsidiaries it will be subordinated in right of payment to the Obligations on terms and conditions no less favorable to the Administrative Agent and the Lenders than any other holder of senior debt (and if such Indebtedness is owed to a seller of assets to the Borrower or any other Loan Party, then it shall be required to be subordinated in right of payment and shall be subordinated on terms and conditions reasonably satisfactory to the Administrative Agent) and (vi) the Administrative Agent shall have received 10 Business Days prior written notice of the incurrence of such Indebtedness and the transactions contemplated thereby and prior to the incurrence thereof shall have received such information with respect thereto and with respect to such related transactions as the Administrative Agent shall have reasonably requested; and

 

(o)   other Indebtedness of the Borrower and the Restricted Subsidiaries in an aggregate principal amount for all such Persons not to exceed $30,000,000 at any time outstanding.

 

“Permitted Investments” shall mean each of the following, so long as no Default or Event of Default exists or would arise from the making of such Investment:

 

(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 is pledged in support thereof;

 

(b)   commercial paper issued by any Person organized under the laws of any state of the United States 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;

 

(c)   time deposits with, or insured certificates of deposit or bankers’ acceptances of, any commercial bank that (i) is a Lender or is organized under the laws of the United States, 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, 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 (b) of this definition and (iii) has combined 

 

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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;

 

(d)   fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) of this definition (without regard to the limitation on maturity contained in such clause) and entered into with a financial institution satisfying the criteria described in clause (c) of this definition or with any primary dealer and having a market value at the time that such repurchase agreement is entered into of not less than 100% of the repurchase obligation of such counterparty entity with whom such repurchase agreement has been entered into;

 

(e)   Investments, classified in accordance with GAAP as current assets of the Loan Parties, in any money market fund, mutual fund or other investment companies that are registered under the Investment Company Act of 1940, as amended, which are administered by financial institutions that have the highest rating obtainable from either Moody’s or S&P, and which invest solely in one or more of the types of securities described in clauses (a) through (d) of this definition;

 

(f)   Investments described on Schedule 6.02 (and in the case of Investments covered by the investment policy of Borrower included in Schedule 6.02, Investments of such type), but not any additional payments to increase the amount thereof or other modification of the terms thereof that increases the obligations or liabilities of any Loan Party, except to increase the scheduled Investments or for other modifications of the terms thereof that increase the obligations or liabilities of any Loan Party if such increases in the aggregate do not exceed $10,000,000 in any Fiscal Year; provided, that with respect to other similar short-term investments entered into at the good faith discretion of the Borrower’s Chief Financial Officer or Treasurer as a means of managing the Borrower’s cash in the ordinary course of business and in accordance with the investment policy attached hereto as Schedule 6.02, in each case, such investments have been specifically identified in writing to the Administrative Agent and approved by it in its reasonable discretion;

 

(g)   (i) Investments by any Loan Party and its Restricted Subsidiaries in their respective Restricted Subsidiaries outstanding on the First Restatement Date, (ii) additional Investments by any Loan Party or Restricted Subsidiary in Loan Parties (other than the Borrower), (iii) additional Investments by any Restricted Subsidiary that is not a Loan Party in other Subsidiaries that are not Loan Parties, (iv) additional investments consisting of loans or advances made by an Insurance Captive to the Borrower or any Subsidiary, or the purchase of any real or personal property from the Borrower or any Subsidiary and (v) additional Investments by any Loan Party in Subsidiaries that are not Loan Parties (determined without regard to any write-downs or write-offs of such Instruments) provided that, in the case of clause (v) as of the date of such Investment and after giving effect thereto, either (A) such Investment gave rise to Indebtedness of such Subsidiary to the Loan Parties of the type described in clause(b)(ii) of the definition of Permitted Indebtedness, or (B) such Investments, excluding those described in subclause (A), in the aggregate do not to exceed $25,000,000 at any time outstanding; and provided further that in the case of clauses (i) and (ii), to the extent any Investment consists of Real Estate Collateral Property, (a) the Borrower provides at least 15 Business Days prior written notice thereof to the Administrative Agent (or such shorter notice as the Administrative Agent may approve) identifying such Real Estate Collateral Property, (b) such Real Estate Collateral Property is invested subject in all respects to the Mortgage thereon and such Mortgage remains a valid first priority lien on such Real Estate Collateral Property so invested and (c) the Borrower shall have delivered to the Administrative Agent such documents and other information evidencing that such 

 

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Real Estate Collateral Property was invested subject to the Mortgage thereon as the Administrative Agent may reasonably request;

 

(h)   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;

 

(i)   Guarantees constituting Permitted Indebtedness;

 

(j)   Investments by any Loan Party in Swap Contracts entered into in the ordinary course of business and for bona fide business (and not speculative) purposes to protect against fluctuations in interest rates in respect of the Obligations or other Permitted Indebtedness or fluctuations in commodity prices;

 

(k)   Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary course of business;

 

(l)   advances to officers, directors and employees of the Loan Parties and their Subsidiaries in the ordinary course of business in an amount not to exceed $1,000,000 to any individual at any time or in an aggregate amount not to exceed $2,000,000 at any time outstanding, for travel, entertainment, relocation and analogous ordinary business purposes;

 

(m)   Investments constituting a Permitted Store Swap Transaction;

 

(n)   Investments under or pursuant to Customer Support Transactions; provided, that (i) as of the date of any such Investment and after giving effect thereto, the aggregate amount of the exposure of the Loan Parties under or pursuant to all Customer Support Transactions (including, without duplication, Customer Support Transactions constituting Permitted Indebtedness, Permitted Investments and Permitted Dispositions) shall not exceed $250,000,000, (ii) the aggregate amount of the exposure of the Loan Parties under any one of the types of transactions described in clauses (a), (b), (c) or (e) of the definition of “Customer Support Transactions” shall not exceed $150,000,000, (iii) as of the date of such transaction and after giving effect thereto, no Default or Event of Default shall exist or have occurred and be continuing, (iv) the Administrative Agent shall have received (A) with respect to any such loan in an amount equal to or greater than $5,000,000, not less than two Business Days’ prior written notice thereof setting forth in reasonable detail the nature and terms thereof, (B) true, correct and complete copies of all agreements, documents and instruments relating thereto and (C) such other information with respect thereto as the Administrative Agent may request, including a report once each month on the outstanding balance of all such Permitted Investments and including the then outstanding amount of the existing loans and advances by Loan Parties and Restricted Subsidiaries to third parties pursuant to this clause (n);

 

(o)   additional investments, loans and advances by the Borrower and the Restricted Subsidiaries so long as the aggregate amount invested, loaned or advanced pursuant to this clause (o) (determined without regard to any write-downs or write-offs of such investments, loans and advances) does not exceed an amount equal to the sum of (x) $100,000,000 plus (y) the Cumulative Credit Amount; provided that, at the time of such investment, loan or advance (i) both before and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing, (ii) in the case of the foregoing clause (y), the Total Leverage Ratio of the 

 

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Borrower shall not exceed 4.00:1.00 on a pro forma basis after giving effect to such payment and (iii) the Borrower shall have delivered a certificate of a Responsible Officer, certifying as to the satisfaction of the foregoing clauses (i) and (ii), in form and substance satisfactory to the Administrative Agent; and

 

(p)   additional investments made with the Net Cash Proceeds of a Moran Sale that are not required to be applied to prepay Loans hereunder pursuant to Section 2.13 or to prepay loans or cash collateralize letters of credit under the ABL Facility and reinvestments of the Net Cash Proceeds of a Term Loan Priority Collateral Sale or Other Asset Sale permitted pursuant to, and in compliance with, Section 2.13.

 

“Permitted Refinancing Indebtedness” shall mean Indebtedness of any Loan Party arising after the Closing Date issued in exchange for, or the proceeds of which are used to extend, refinance, replace or substitute for other Indebtedness (such extended, refinanced, replaced or substituted Indebtedness, the “Refinanced Obligations”) to the extent permitted hereunder; provided that:

 

(a)   the Administrative Agent shall have received not less than 10 Business Days’ prior written notice of the intention to incur such Indebtedness, which notice shall set forth in reasonable detail satisfactory to the Administrative Agent the amount of such Indebtedness, the schedule of repayments and maturity date with respect thereto and such other information with respect thereto as the Administrative Agent may reasonably request;

 

(b)   promptly upon the Administrative Agent’s request, the Administrative Agent shall have received true, correct and complete copies of all agreements, documents and instruments evidencing or otherwise related to such Indebtedness, as executed and delivered by the parties thereto;

 

(c)   the principal amount of such Permitted Refinancing Indebtedness shall not exceed the principal amount of the Refinanced Obligations (plus interest and premium, if any, thereon and the amount of reasonable refinancing fees and expenses incurred in connection therewith);

 

(d)   such Indebtedness shall have a final maturity that is no earlier than (i) in the case of Refinanced Obligations that constitute Material Indebtedness, 91 days after the Latest Maturity Date, and (ii) in the case of all other Refinanced Obligations, 364 days after the final maturity date of such Refinanced Obligations or, if earlier, 91 days after the Latest Maturity Date;

 

(e)   such Indebtedness shall have a Weighted Average Life to Maturity not less than the shorter of the Weighted Average Life to Maturity of (i) the Refinanced Obligations or (ii) the outstanding Loans;

 

(f)   such Indebtedness shall rank in right of payment no more senior than, and be subordinated (if subordinated) to the Obligations on terms no less favorable to the Secured Parties than, the Refinanced Obligations;

 

(g)   as of the date of incurring such Indebtedness and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing;

 

(h)   except in the case of Loans or Other Loans used to refinance the SVU 2016 Notes or any Permitted Refinancing Indebtedness in respect thereof, if the Refinanced Obligations or any Guarantees thereof are unsecured, such Indebtedness and any Guarantees thereof shall be unsecured;

 

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(i)   if the Refinanced Obligations or any Guarantees thereof are secured, such Indebtedness and any Guarantees thereof shall be secured in all material respects by substantially the same or less collateral as secured such Refinanced Obligations or any Guarantees thereof, on terms no less favorable to the Administrative Agent or the Lenders;

 

(j)   if the Refinanced Obligations or any Guarantees thereof are secured, the Liens to secure such Indebtedness shall not have a priority more senior than the Liens securing such Refinanced Obligations and, if subordinated to any other Liens on such property, shall be subordinated to the Administrative Agent’s Liens on terms and conditions no less favorable;

 

(k)   if the Refinanced Obligations or any Guarantees thereof are subordinated to any Indebtedness of the Borrower, such Refinancing Indebtedness and any Guarantees thereof shall be subordinated to the Obligations on terms (including intercreditor terms) no less favorable to the Administrative Agent or the Lenders;

 

(l)   except in the case of Loans or Other Loans used to refinance the SVU 2016 Notes or any Permitted Refinancing Indebtedness in respect thereof, the obligors in respect of the Refinanced Obligations immediately prior to such refinancing, refunding, extending, renewing or replacing thereof shall be the only obligors on such Permitted Refinancing Indebtedness; and

 

(m)   except in the case of Loans or Other Loans used to refinance the SVU 2016 Notes or any Permitted Refinancing Indebtedness in respect thereof, the terms and conditions (excluding as to pricing, premiums and optional prepayment or redemption provisions) of any such Indebtedness, taken as a whole, are not more restrictive with respect to the Borrower and the Restricted Subsidiaries, as reasonably determined by the Borrower in good faith, than the terms and conditions of the Refinanced Obligations.

 

“Permitted Specified Note Prepayment” shall mean the prepayment of the SVU 2016 Notes permitted pursuant to Section 6.07.

 

“Permitted Store Swap Transaction” means the transfer by a Loan Party of ownership of a Store or Stores to an unaffiliated third party in an arm’s length transaction in the ordinary course of business in exchange for the transfer to such Loan Party of a retail store or stores (and the related assets, including real property, fixtures, equipment, inventory and other property related thereto) owned and operated by such third party; provided, that, as to any such exchange, (a) the value of the Store or Stores transferred by such Loan Party shall be reasonably equivalent to the value of the store or stores (and related assets) transferred to it, (b) the transfer of such assets by the Loan Party to such third party and by such third party to such Loan Party shall be substantially contemporaneous, (c) the aggregate number of such Stores transferred to unaffiliated third parties by the Loan Parties in any Fiscal Year pursuant to such exchanges shall not exceed 10, except as Administrative Agent may otherwise agree in the exercise of its discretion, (d) as of the date of any such transaction, and after giving effect thereto, no Default or Event of Default shall exist or have occurred and be continuing and (e) any Material Real Estate Assets and Related Real Estate Collateral) received in connection with such an exchange shall be pledged as Collateral to the extent required by Section 5.12 or Section 5.17.

 

“Person” shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, limited partnership, Governmental Authority or other entity.

 

“Plan” shall mean any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Borrower or, with respect to any such plan that is subject to Sections 412 or 430 of the Code or Sections 302 or 303 or Title IV of ERISA, any ERISA Affiliate.

 

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“Platform” shall have the meaning assigned to such term in Section 9.01.

 

“Prescription Files” shall mean, as to a Loan Party, all of such Loan Party’s now owned or hereafter existing or acquired retail customer files with respect to prescriptions for retail customers and other medical information related thereto, maintained by the retail pharmacies of Loan Parties, wherever located.

 

“Prime Rate” shall mean the rate of interest per annum quoted in the print edition of The Wall Street Journal, Money Rates Section as the Prime Rate (currently defined as the base rate on corporate loans posted by at least 75% of the nation’s thirty largest banks), as in effect from time to time.  The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer.  The Administrative Agent or any other Lender may make commercial loans or other loans at rates of interest at, above or below the Prime Rate.

 

“PSA” shall mean the Packers and Stockyard Act of 1921, 7 U.S.C. § 181 et. seq., as the same now exists or may from time to time hereafter be amended, modified, recodified or supplemented, together with all rules, regulations and interpretations thereunder or related thereto.

 

“Public Lender” shall have the meaning assigned to such term in Section 9.01.

 

“Qualified Capital Stock” of any Person shall mean any Equity Interest of such Person that is not Disqualified Stock.

 

“Real Estate” shall mean all right, title, and interest (including any leasehold, fee, mineral or other estate) in and to any and all parcels of or interests in real property owned, leased or operated by the Borrower or any of its Subsidiaries, whether by lease, license or other means, and the buildings, structures, parking areas and other improvements thereon, now or hereafter owned by the Borrower or any of its Subsidiaries, including all fixtures, easements, hereditaments, appurtenances, rights-of-way and similar rights relating thereto and all leases, tenancies and occupancies thereof now or hereafter owned by the Borrower or any of its Subsidiaries.

 

“Real Estate Collateral Properties” shall mean the Real Estate of the Loan Parties at the sites designated as Material Real Estate Assets on the Applicable Collateral List, excluding, however, Excluded Real Estate Collateral.

 

“Receivables Purchase Agreement” shall mean (a) each Purchase Agreement as defined in the receivables purchase agreement referred to in clause (a) of the definition of “Receivables Transfer Agreement” and (b) any agreement amending, supplementing, extending, refinancing or replacing such Receivables Purchase Agreement, in whole or in part.

 

“Receivables Transfer Agreement” shall mean (a) the Second Amended and Restated Receivables Purchase Agreement, dated as of November 30, 2011, by and among Supervalu Receivables Funding Corporation, as seller, the Borrower, as servicer, the banks and other financial institutions party thereto, as purchasers, and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent, and (b) any agreement amending, supplementing, extending, refinancing or replacing, in whole or in part, such Receivables Transfer Agreement.

 

“Refinanced Obligations” shall have the meaning assigned to such term in the definition of “Permitted Refinancing Indebtedness”.

 

“Register” shall have the meaning assigned to such term in Section 9.04(d).

 

“Registered Public Accounting Firm” shall have the meaning specified by the Securities Laws and shall be independent of the Borrower and its Subsidiaries as prescribed by the Securities Laws.

 

“Regulation D” shall mean Regulation D of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Regulation T” shall mean Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Regulation U” shall mean Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Regulation X” shall mean Regulation X of the Board as from time to time in effect and all 

 

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official rulings and interpretations thereunder or thereof.

 

“Related Fund” shall mean, with respect to any Lender that is a fund or commingled investment vehicle that invests in bank loans, any other fund that invests in bank loans and is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor.

 

“Related Parties” shall mean, with respect to any Person, such Person’s Affiliates and the partners, members, controlling persons, directors, officers, employees, agents, advisors, representatives and successors and assigns of such Person and of such Person’s Affiliates.

 

“Related Real Estate Collateral” shall mean all Equipment now or hereafter owned by the Borrower or any Loan Party located on any Real Estate Collateral Property or any Material Related Collateral Location.

 

“Related Real Estate Collateral Security Agreement” shall mean any security agreement delivered pursuant to clause (a) of the definition of “Term Loan Priority Collateral Requirements,” substantially in the form of Exhibit P hereto, or such other form reasonably satisfactory to the Administrative Agent.

 

“Release” shall have the meaning assigned to such term in Section 101(22) of CERCLA.

 

“Release Property” shall have the meaning assigned to such term in Section 9.21.

 

“Repayment Date” shall have the meaning given such term in Section 2.11(a).

 

“Replaced Property” shall have the meaning assigned to such term in Section 9.21.

 

“Reportable Event” shall mean any of the events set forth in Section 4043(c) of ERISA as in effect as of the Closing Date, other than events for which the 30-day notice period has been waived.

 

“Repricing Transaction” shall mean the voluntary prepayment, refinancing, substitution or replacement of all or a portion of the Loans, except following a Change of Control, with the incurrence by the Borrower of any debt financing having an effective interest cost or weighted average yield (with the comparative determinations to be made by the Administrative Agent consistent with generally accepted financial practices, after giving effect to, among other factors, margin, interest rate floors, upfront or similar fees or original issue discount shared with all providers of such financing, but excluding the effect of any arrangement, structuring, syndication or other fees payable in connection therewith that are not shared with all providers of such financing, and without taking into account any fluctuations in the Adjusted LIBO Rate) that is less than the effective interest cost or weighted average yield (as determined by the Administrative Agent on the same basis) of such Loans so repaid, refinanced, substituted or replaced, including without limitation, as may be effected through any amendment to this Agreement relating to the interest rate for, or weighted average yield of, such Loans.

 

“Required Lenders” shall mean, at any time, Lenders having Loans and Commitments representing more than 50% of the sum of all Loans outstanding and Commitments at such time.

 

“Responsible Officer” shall mean the chief executive officer, chief financial officer, vice president of tax, controller, treasurer or assistant treasurer of a Loan Party or, with the consent of the Administrative Agent, any of the other individuals designated in writing to the Administrative Agent by an existing Responsible Officer of a Loan Party as an authorized signatory of any certificate or other document to be delivered hereunder.

 

“Restated Collateral List” shall mean, at any date of determination, the Closing Date Collateral List as modified to reflect all Term Loan Priority Collateral Releases, Term Loan Priority Collateral Substitutions and Term Loan Priority Collateral Additions to and including the date of such Restated Collateral List.

 

“Restricted Indebtedness” shall mean Indebtedness of the Borrower or any Restricted Subsidiary, the payment, prepayment, repurchase or defeasance of which is restricted under Section 6.07.

 

“Restricted Payment” shall mean 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 payment (whether in cash, securities or other property), including any sinking fund or similar 

 

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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 such Person’s stockholders, partners or members (or the equivalent of any thereof), or any holder of an option, warrant or other right to acquire any such dividend or other distribution or payment and any payment of management fees (or other fees of a similar nature) by any Person to any holder of an Equity Interest of any Person or any of its Subsidiaries.  Without limiting the foregoing, “Restricted Payments” with respect to any Person shall also include all payments made by such Person to holders of Equity Interests with any proceeds of a dissolution or liquidation of such Person.

 

“Restricted Subsidiary” shall mean any Subsidiary that is not an Unrestricted Subsidiary.

 

“Retained Excess Cash Flow Amount” shall mean, at any date of determination, an amount equal to (a) the sum of the amounts of Excess Cash Flow for each Fiscal Year (or portion thereof) ending on or prior to the date of determination for which the amount of Excess Cash Flow shall have been calculated as provided in Section 2.13(c) and with respect to which the payments required under Section 2.13(c) have been made (commencing with the period from the Closing Date until February 22, 2014), minus (b) the sum at the time of determination of the aggregate amount of prepayments required to be made pursuant to Section 2.13(c) through the date of determination calculated without regard to any reduction in such sum that resulted from voluntary prepayments of the Loans referred to in Section 2.13(c)(y).

 

“S&P” shall mean Standard& Poor’s Ratings Service, or any successor thereto.

 

“Sarbanes-Oxley” shall mean the Sarbanes-Oxley Act of 2002.

 

“SEC” shall mean the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Second Amendment Agreement” shall mean that certain Amendment Agreement, dated as of the Second Restatement Date effecting, among other things, the amendment and restatement of the First Restated Credit Agreement, among the Borrower, the other Loan Parties, the Administrative Agent, the Collateral Agent and the Lenders listed on the signature pages thereto.

 

“Second Restatement Date” shall mean January 31, 2014.

 

“Section 2.23 Additional Agreement” shall have the meaning assigned to such term in Section 2.23.

 

“Secured Parties” shall mean the collective reference to (a) the Administrative Agent, (b) the Collateral Agent, (c) the Lenders, (d) the beneficiaries of each indemnification or reimbursement obligation undertaken by any Loan Party under any Loan Document and (e) the successors and assigns of each of the foregoing.

 

“Securities Laws” shall mean the Securities Act of 1933, the Securities Exchange Act of 1934, Sarbanes-Oxley, and the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the PCAOB.

 

“Securitization Termination” shall mean the repayment in full of all of the obligations of the Borrower and its Subsidiaries under the Receivables Transfer Agreement and each Receivables Purchase Agreement and the termination thereof, the repurchase by the Borrower and its Subsidiaries of all of the receivables sold thereunder, the termination or release, as applicable, of all guarantees, and all security interests and liens, in each case arising thereunder or in connection therewith, and the Borrower and its Subsidiaries having no further obligations or liabilities with respect thereto.

 

“Security Agreement” shall mean the Security Agreement, dated as of the Closing Date, by and among the Loan Parties and the Collateral Agent, substantially in the form of Exhibit F hereto.

 

“Security Documents” shall mean the Mortgages, the Facility Guaranty, the Security Agreement, each Related Real Estate Collateral Security Agreement, the Collateral Assignment Agreement and each of the security agreements, mortgages and other instruments and documents executed and delivered to the Administrative Agent pursuant to this Agreement or any other Loan Document granting a Lien to secure any of the Obligations.

 

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“Shareholders’ Equity” shall mean, as of any date of determination, consolidated shareholders’ equity of the Borrower and its Subsidiaries as of that date determined in accordance with GAAP.

 

“Solvent” and “Solvency” shall mean, with respect to any Person on a particular date, that on such date (a) at fair valuation, all of the properties and assets of such Person (and including as assets for this purpose, at a fair valuation, all rights of subrogation, contribution or indemnification in favor of such Person) are greater than the sum of the liabilities, including contingent liabilities (and including as liabilities for this purpose, at a fair valuation, all obligations of subrogation, contribution or indemnification against such Person), of such Person, (b) the present fair saleable value of the properties and assets of such Person is not less than the amount that would be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person is able to realize upon its properties and assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (d) such Person does not intend to, and does not believe that it will, incur debts beyond such Person’s ability to pay as such debts mature and (e) such Person is not engaged in a business or a transaction, and is not about to engage in a business or transaction, for which such Person’s properties and assets would constitute unreasonably small capital after giving due consideration to the prevailing practices in the industry in which such Person is engaged.  The amount of all guarantees and other contingent liabilities at any time shall be computed as the amount that, in light of all the facts and circumstances existing at the time, can reasonably be expected to become an actual or matured liability.

 

“Specified Event of Default” shall mean the occurrence of (a) any Event of Default described in Sections 7.01(a), 7.01(f) or 7.01(g) or (b) the Lender’s exercise of any of its remedies pursuant to the last paragraph of Section 7.01 following any other Event of Default.

 

“Specified Representations” means those representations and warranties made by the Borrower and the Guarantors in Sections 3.01(a) and (b)(ii) (solely with respect to power and authority), 3.02(a), 3.04, 3.05(a), (b) and (f), 3.06, 3.08 (a), (b) and (c), 3.09, 3.12, 3.13, 3.14, 3.15(b), 3.16, 3.19(a), (b) and (c), 3.20(a), 3.30 and 3.31.

 

“SPV” shall have the meaning assigned to such term in Section 9.04(i).

 

“Statutory Reserves” shall mean a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board and any other banking authority, domestic or foreign, to which the Administrative Agent or any Lender (including any branch, Affiliate or other fronting office making or holding a Loan) is subject for Eurocurrency Liabilities (as defined in Regulation D).  Eurodollar Loans shall be deemed to constitute Eurocurrency Liabilities (as defined in Regulation D) and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under Regulation D.  Statutory Reserves shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Store” shall mean any retail store (which may include any Real Estate, Equipment, inventory and other property related thereto) operated, or to be operated, by any Loan Party, a Person in which any Loan Party holds an Equity Interest or a Save-A-Lot licensee.

 

“Store Conversion Transaction” means either (a) a transaction in which one or more existing Save-A-Lot Stores owned by the Borrower or a Subsidiary is transferred to a Person that is not an Affiliate and that is licensed to operate such Stores as a Save-A-Lot Store, provided, in each case that (i) the consideration paid or to be paid at closing or on a deferred basis in connection therewith is in an amount not less than the book value of the assets so transferred and any cash proceeds received by the Loan Parties in respect of such transaction shall be applied to the extent and in the manner set forth in Section 2.13, (ii) the purchaser agrees to continue to purchase inventory for such Stores from the Borrower or a Subsidiary for a period of not less than one year or, if longer, the period until the consideration described in clause (i) has been paid in full and 

 

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(iii) all payment obligations and other obligations of the purchaser in connection with such transaction are payable or otherwise owed to Moran Foods or a Subsidiary thereof that is a Guarantor or (b) a transaction in which one or more existing Stores owned by the Borrower or a Subsidiary is transferred to a joint venture in which the Borrower or a Guarantor owns an Equity Interest, provided that (i) a Loan Party pledges such Equity Interest to the Collateral Agent and any cash proceeds received by the Loan Parties in respect of such transaction shall be applied to the extent and in the manner set forth in Section 2.13, (ii) the joint venture agrees to continue to purchase inventory for such Stores from the Borrower or a Subsidiary for a period of not less than one year and (iii) the Total Leverage Ratio of the Borrower shall not exceed 4.00:1.00 on a pro forma basis after giving effect to such transfer and the use of proceeds thereof.

 

“Subordinated Indebtedness” shall mean any Indebtedness which is expressly subordinated in right of payment to the prior payment in full of the Obligations and which is in form and on terms approved in writing by the Administrative Agent.

 

“Subsidiary” of a Person shall mean a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of Equity Interests having ordinary voting power for the election of directors or other governing body 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 a Loan Party, and shall exclude NAI and its subsidiaries.

 

“Substitute Property” shall have the meaning assigned to such term in Section 9.21.

 

“SVU 2014 Note Repayment” shall mean (a) to the extent the Borrower has made a tender offer for any SVU 2014 Notes and any of the SVU 2014 Notes have been tendered pursuant thereto, the purchase and cancellation of such SVU 2014 Notes on the Closing Date and (b) the providing of an irrevocable notice of redemption to the holders of all untendered SVU 2014 Notes, if any (or, to the extent the Borrower has not made a tender offer therefor, all SVU 2014 Notes) and the depositing with the trustee under the SVU Indenture in trust on the Closing Date the full amount (including, without limitation, all interest, fees and prepayment penalties due and payable on the redemption date) required to redeem, and the providing of evidence of the delivery to such trustee of all materials required to redeem, all untendered SVU 2014 Notes, if any (or, to the extent the Borrower has not made a tender offer therefor, all SVU 2014 Notes), in accordance with the terms of the SVU Indenture and the SVU 2014 Notes.

 

“SVU 2014 Notes” shall mean the 7.50% Senior Notes due November 15, 2014 issued by the Borrower pursuant to the SVU Indenture in the original principal amount of $500,000,000.

 

“SVU 2016 Notes” shall mean the 8.00% Senior Notes due May 1, 2016 issued by the Borrower pursuant to the SVU Indenture in the original principal amount of $1,000,000,000.

 

“SVU 2021 Notes” shall mean the 6.75% Senior Notes due June 1, 2021 issued by the Borrower pursuant to the SVU Indenture in the original principal amount of $400,000,000.

 

“SVU Indenture” shall mean the Indenture, dated as of July 1, 1987, between the Borrower and Deutsche Bank Trust Company (formerly Bankers Trust Company), as trustee, as supplemented by the First Supplemental Indenture dated as of August 1, 1990, the Second Supplemental indenture dated as of October 1, 1992, the Third Supplemental Indenture dated as of September 1, 1995, the Fourth Supplemental Indenture dated as of August 4, 1999, and the Fifth Supplemental Indenture dated as of September 17, 1999, and as further amended, amended and restated, supplemented or otherwise modified  (including any such modifications contained in any notes, officer’s certificates or other operative documents) as of the Closing Date in accordance with the terms hereof.

 

“Swap Contract” shall mean (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,

 

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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 Termination Value” shall mean, 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).

 

“Symphony” shall mean Symphony Investors LLC, a Delaware limited liability company.

 

“Syndication Agents” shall mean CS Securities and MSSF, in their capacities as syndication agents.

 

“Synthetic Lease Obligations” shall mean 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).

 

“Synthetic Purchase Agreement” shall mean any swap, derivative or other agreement or combination of agreements pursuant to which the Borrower or any Restricted Subsidiary is or may become obligated to make (a) any payment in connection with a purchase by any third party from a Person other than the Borrower or any Restricted Subsidiary of any Equity Interest or Restricted Indebtedness or (b) any payment (other than on account of a permitted purchase by it of any Equity Interest or Restricted Indebtedness) the amount of which is determined by reference to the price or value at any time of any Equity Interest or Restricted Indebtedness; provided that no phantom stock or similar plan providing for payments only to current or former directors, officers or employees of the Borrower or the Restricted Subsidiaries (or to their heirs or estates) shall be deemed to be a Synthetic Purchase Agreement.

 

“Taxes” shall mean any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority, including any interest, penalties and additions to tax related thereto.

 

“Tender Offer Agreement” that certain Tender Offer Agreement dated as of January 10, 2013 among Symphony, Cerberus and the Borrower.

 

“Term Facility” shall mean the term loan facility provided for by this Agreement.

 

“Term Loan Priority Collateral” shall have the meaning assigned to such term in the Intercreditor Agreement.

 

“Term Loan Priority Collateral Addition” shall have the meaning assigned to such term in Section 9.21.

 

“Term Loan Priority Collateral Release” shall have the meaning assigned to such term in Section 9.21.

 

“Term Loan Priority Collateral Requirements” shall mean the collective requirements that:

 

(a)   the Collateral Agent shall have received:

 

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(i) a Mortgage, a Related Real Estate Collateral Security Agreement and a UCC financing statement with respect to each Real Estate Collateral Property and the Related Real Estate Collateral thereon, and a Related Real Estate Collateral Security Agreement and a UCC financing statement with respect to all other Related Real Estate Collateral, which Security Documents shall be in form and substance satisfactory to the Administrative Agent, shall have been duly executed by the parties thereto and delivered to the Collateral Agent and shall be in full force and effect, together with, in the case of Real Estate Collateral Property, an acknowledgment by a title insurance company of receipt of such Mortgage and UCC financing statement and an agreement to record or file, as applicable, such Mortgage and UCC financing statement in the real estate records for the county in which the Real Estate Collateral Property is located (if determined by the Administrative Agent to be necessary under the Laws of the jurisdiction where such Real Estate Collateral Property is located to perfect in fixtures), so as to effectively create upon such recording and filing (together with the filing of a UCC-1 financing statement in the applicable state filing office) valid and enforceable perfected first-priority Liens upon such Real Estate Collateral Property and Related Real Estate Collateral, in favor of the Collateral Agent (or such other trustee as may be desired under local law), subject only to the Permitted Encumbrances.  Unless otherwise (i) required to avoid triggering any of the equal and ratable security provisions of the SVU Indenture or (ii) agreed by the Administrative Agent, and subject to limitations of local law, each such Mortgage shall secure the total amount of the Obligations, provided that if the jurisdiction in which any applicable Real Estate Collateral Property is located imposes a mortgage recording, intangibles or similar tax and does not permit the allocation of undivided aggregate indebtedness for the purpose of determining the amount of such tax payable, or if there are other local state impediments to the Mortgage securing the full amount of the Obligations, the principal amount secured by such Mortgage shall be limited to secure a maximum amount acceptable to the Administrative Agent, not to exceed 125% of the fair market value of such Real Estate Collateral Property;

 

(ii)  (A) a Title Insurance Policy (or a marked, signed and dated commitment to issue a Title Insurance Policy) insuring or committing to insure (upon payment of the premium therefor) the Lien of the Mortgage encumbering each Real Estate Collateral Property, (1) with respect to each Real Estate Collateral Property having a Value greater than $3,000,000, with the standard exception for survey matters deleted and a “same as survey” endorsement, (2) otherwise with the standard exception for survey matters deleted and a “same as survey” endorsement but only to the extent available without requirement for the Borrower to procure a new survey, and (3) in all cases with other lenders’ endorsements and otherwise as reasonably required by the Administrative Agent but only to the extent available without requirement for the Borrower to procure a new survey with respect to any Real Estate Collateral Property having a Value of less than or equal to $3,000,000 (in the case of a Term Loan Priority Collateral Substitution, issued by the title company that issued the Title Insurance Policies insuring the Liens of the existing Mortgages and dated as of the date of the recording of the Mortgage for the Substitute Property); (B) to the extent available, a “tie-in” and a “first loss” endorsement, or similar endorsements, to the Title Insurance Policy, in form and substance reasonably satisfactory to the Administrative Agent, but only to the extent available without a requirement for the Borrower to procure a new survey with respect to any Real Estate Collateral Property having a Value of less than $3,000,000, provided that to the extent any such endorsements are available at commercially reasonable rates with the delivery of a CDS Inspection Report with respect to each such property (excluding sites #5496 and #5558 on Exhibit N), the Administrative Agent shall be entitled to obtain such

 

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reports and endorsements; and (C) a copy of any survey, plat, or site plan of the Real Estate Collateral Property that the Borrower provides to the title company issuing the Title Insurance Policy, with any such surveys recertified to the Collateral Agent to the extent reasonably available and as reasonably required by the Administrative Agent; provided, that the Administrative Agent will not require any such recertification with respect to any such survey that was created or last updated more than five years before the later of (1) the date of the Loan Parties’ satisfaction of the requirements set forth in Section 5.25 and (2) any Term Loan Priority Collateral Substitution, as the case may be.  The Collateral Agent also shall have received copies of paid receipts or other evidence showing that all premiums in respect of such Title Insurance Policies and endorsements have been paid;

 

(iii) (A) a completed Flood Certificate with respect to each Real Estate Collateral Property, which Flood Certificate shall (x) be addressed to the Collateral Agent, (y) be completed by a company that has guaranteed the accuracy of the information contained therein and (z) otherwise comply with the Flood Program; (B) evidence describing whether the community in which each Real Estate Collateral Property is located participates in the Flood Program; (C) if any Flood Certificate states that a Real Estate Collateral Property is located in a Flood Zone, the applicable Loan Party’s written acknowledgement of receipt of written notification from the Collateral Agent (x) as to the existence of each such Real Estate Collateral Property and (y) as to whether the community in which each such Real Estate Collateral Property is located is participating in the Flood Program; and (D) if any Real Estate Collateral Property is located in a Flood Zone and is located in a community that participates in the Flood Program, evidence that the applicable Loan Party has obtained flood insurance that is in compliance with all applicable regulations of the Flood Program;

 

(iv) if required by the Administrative Agent, documentation regarding environmental matters acceptable to the Administrative Agent with respect to each Real Estate Collateral Property, and, if warranted by the findings of such documentation, a Phase I environmental report acceptable to the Administrative Agent, and, if warranted by the findings of such Phase I environmental report or other documentation, a Phase II environmental report acceptable to the Administrative Agent, which concludes that such Real Estate Collateral Property (A) does not contain any Hazardous Materials in contravention of Environmental Law in any material respect and (B) is not subject to any significant risk of contamination from any off site Hazardous Materials in contravention of Environmental Law in any material respect;

 

(v) (x) an opinion or opinions of counsel admitted to practice under the laws of the State in which each Real Estate Collateral Property is located, regarding the enforceability of the Liens of the Mortgages in that State, (y) a due execution, delivery, and authority opinion (consistent with the requirements of Section 4.01(d)) and (z) an opinion or opinions of counsel regarding each Related Real Estate Collateral Security Agreement, in each case in form and substance reasonably acceptable to the Administrative Agent;

 

(vi) true and correct copies of all Material Contracts relating to the leasing or operation of each Real Estate Collateral Property and each other property on which Related Real Estate Collateral is located, each of which shall be in form and substance reasonably satisfactory to the Administrative Agent;

 

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(vii) satisfactory (i.e., showing no Liens other than Permitted Encumbrances) UCC, tax lien, judgment and litigation searches with respect to each Real Estate Collateral Property and each other property on which Related Real Estate Collateral is located and the Loan Party that is the owner or lessee thereof, in the State in which such Real Estate Collateral Property or such other property is located and the jurisdictions where each such Loan Party has its principal place of business; and

 

(viii) in the case of any Ground Lease, (A) a true and correct copy of the applicable Ground Lease, together with (to the extent required by the Administrative Agent) all amendments and modifications thereto and a recorded memorandum thereof, in form and substance reasonably satisfactory in all respects to the Administrative Agent and subject to leasehold mortgagee provisions and protections in form and substance reasonably satisfactory in all respects to the Administrative Agent and which shall provide, among other things, cure rights reasonably acceptable to the Administrative Agent for Loan Party defaults thereunder, and (B) if required by the Administrative Agent, a Ground Lease estoppel executed by the fee owner and ground lessor of such Real Estate Collateral Property, reasonably acceptable to the Administrative Agent;

 

(b)   the Borrower shall have paid or reimbursed the Administrative Agent for all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent (including, without limitation, reasonable attorneys’ fees and disbursements) in connection with the preparation and negotiation of the Mortgage of each Real Estate Collateral Property and the Borrower shall have paid all recording charges, filing fees, taxes or other out-of-pocket expenses (including, without limitation, title insurance premiums, mortgage and intangibles taxes and documentary stamp taxes) payable in connection therewith;

 

(c)   on the date of the applicable Mortgage, the grants of security interests in the Term Loan Priority Collateral on the Applicable Collateral List (after giving effect to all Term Loan Priority Collateral List Substitutions) will not violate the SVU Indenture or any other Material Indebtedness or trigger any of the equal and ratable sharing provisions thereof, as evidenced by (i) a certificate of a Responsible Officer of the Borrower in substantially the form of the certificate required to be delivered pursuant to Section 4.01(f) (covering factual matters supporting the legal opinions delivered pursuant this clause (c)) and (ii) a customary no conflicts opinion from the Borrower’s counsel, in each case in form and substance satisfactory to the Administrative Agent, certifying and opining, respectively, that the grants of security interests in the Term Loan Priority Collateral on the Applicable Collateral List will not violate the SVU Indenture or any other Material Indebtedness or trigger any of the equal and ratable sharing provisions thereof;

 

(d)   the Administrative Agent shall have received a certificate of the type described in Section 4.01(g)(ii) of the Original Credit Agreement from the relevant Loan Parties; and

 

(e)   each Real Estate Collateral Property shall be fee owned or ground leased by a Loan Party or a Subsidiary which shall have become a Loan Party hereunder pursuant to and in accordance with the requirements of Section 5.12 prior to the execution and delivery of the applicable Mortgage.

 

“Term Loan Priority Collateral Sale” shall mean any sale, transfer or other disposition (including by way of merger, casualty, condemnation or otherwise) of Term Loan Priority Collateral or Equity Interests of any Subsidiary to the extent the assets of such Subsidiary consist solely of Term Loan Priority Collateral that produces $50,000 or more of Net Cash Proceeds and

 

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that is not part of an Other Asset Sale and that is not a Permitted Disposition pursuant to clauses (a) through (n) (other than clause (j)) of the definition thereof or clause (p) of the definition thereof.

 

“Term Loan Priority Collateral Substitution” shall have the meaning assigned to such term in Section 9.21.

 

“Term Loan Refinancing” shall mean the repayment in full of all of the obligations of the Borrower and its Subsidiaries under the Existing Term Loan Facility, the termination or release, as applicable of all guarantees and all security interests and liens, in each case arising under or in connection therewith, and the Borrower and its Subsidiaries having no further obligations or liabilities with respect thereto.

 

“Third Party Payor” shall mean any Person, such as a Fiscal Intermediary, Blue Cross/Blue Shield or private health insurance company, which is obligated to reimburse or otherwise make payments to health care providers who provide medical care or medical assistance or other goods or services for eligible patients under Medicare, Medicaid or any private insurance contract.

 

“Title Insurance Policy” shall mean, with respect to each Real Estate Collateral Property, an ALTA mortgagee title insurance policy in a form reasonably acceptable to the Administrative Agent (or, if a Real Estate Collateral Property is located in a State which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State and reasonably acceptable to the Administrative Agent) issued with respect to such Real Estate Collateral Property and insuring the Lien of the Mortgage encumbering such Real Estate Collateral Property, which Title Insurance Policy shall (i) provide coverage in an amount satisfactory to the Administrative Agent (provided that the aggregate insured amount of all Title Insurance Policies will not exceed the aggregate amount of the Loans, except as is reasonably necessary to insure Real Estate Collateral Properties under Title Insurance Policies that cannot be “tied in” with other Title Insurance Policies), (ii) insure the Collateral Agent that the relevant Mortgage creates a valid first lien on the Real Estate Collateral Property encumbered thereby, free and clear of all exceptions from coverage other than Permitted Encumbrances, (iii) contain such endorsements and affirmative coverages as have been reasonably requested by the Administrative Agent to the extent available in the applicable jurisdiction where such Real Estate Collateral Property is located (and subject to the availability thereof for Real Estate Collateral Properties with respect to which additional surveys are not required pursuant to the definition of Term Loan Priority Collateral Requirements) and (iv) name the Collateral Agent as the insured.

 

“Total Assets” shall mean, at any date, the amount that would, in conformity with GAAP, be set forth opposite the caption “total assets” (or any like caption) on a Consolidated balance sheet of the Borrower and the Restricted Subsidiaries.

 

“Total Debt” shall mean, at any time, the total Indebtedness of the Borrower and the Restricted Subsidiaries at such time (excluding Indebtedness of the type described in clauses (b), (c) and (g) of the definition of such term, except, in the case of such clause (b), to the extent of any unreimbursed drawings thereunder, and also excluding the ASC Guarantee and all Synthetic Lease Obligations).

 

“Total Leverage Ratio” shall mean, on any date, the ratio of (a) Total Debt on such date (net of the amount of Unrestricted Cash as of such date up to a maximum amount of $150,000,000 or, when the amount of Total Debt is reduced pursuant to the proviso set forth in this definition, up to a maximum amount of $50,000,000) to (b) Consolidated EBITDA for the period of four consecutive Fiscal Quarters then most recently ended on or prior to such date; provided that, with respect to any date of determination occurring during the Fiscal Periods ending closest to October 31, November 30 and December 31 of any Fiscal Year, an amount equal to $150,000,000 shall be deducted from the calculation of Total Debt for the purposes of this calculation.

 

“Total Secured Leverage Ratio” shall mean, on any date, the ratio of (a) Total Debt that is secured by Liens on such date (net of the amount of Unrestricted Cash as of such date up to a maximum amount of $150,000,000 or, when the amount of Total Debt is reduced pursuant to the 

 

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proviso set forth in this definition, up to a maximum amount of $50,000,000) to (b) Consolidated EBITDA for the period of four consecutive Fiscal Quarters then most recently ended on or prior to such date; provided that, with respect to any date of determination occurring during the Fiscal Periods ending closest to October 31, November 30 and December 31 of any Fiscal Year, an amount equal to $150,000,000 shall be deducted from the calculation of Total Debt for the purposes of this calculation.

 

“Transaction Expenses”  shall mean all of the one-time fees, costs, losses, charges and expenses incurred by the Borrower and its Restricted Subsidiaries in connection with the Transactions, including employee severance expenses associated with the Transactions, prepayment premiums payable in connection with the Term Loan Refinancing, legal, advisory and other professionals fees and expenses incurred in connection with the Transactions, financing fees incurred in connection with the Transactions, recruitment expenses associated with the Transactions, stock transfer taxes payable in connection with the transactions contemplated by the Tender Offer Agreement, information technology investments related to the Transactions, corporate expenses incurred in connection with the Transactions other than personnel expenses, employee retention plan expenses associated with the Transactions, litigation contingency and legal reserves related to the Transactions and environmental expenses incurred in connection with the Transactions.

 

“Transactions” shall mean (i) the NAI Sale (including the funding of the Escrow Account (as defined in the Escrow Agreement) substantially contemporaneously with the consummation of the Albertson’s Asset Purchase (as defined in the Acquisition Agreement) as contemplated by the Acquisition Agreement and the Escrow Agreement), (ii) the SVU 2014 Note Repayment, (iii) the Term Loan Refinancing, (iv) the ABL Refinancing, (v) the Securitization Termination, (vi) the execution, delivery and performance by the Loan Parties of the Loan Documents to which they are a party and the making of the Borrowings hereunder, (vii) the use of proceeds of the Loans on the First Restatement Date to prepay in full the term loans outstanding under the Original Credit Agreement prior to such date, (viii) the use of proceeds of the Loans on the Second Restatement Date to prepay in full the term loans outstanding under the First Restated Credit Agreement prior to such date, (ix) the payment of fees and expenses in connection with the foregoing and (x) the transactions reasonably related to the foregoing.

 

“Type”, when used in respect of any Loan or Borrowing, shall refer to the Rate by reference to which interest on such Loan or on the Loans comprising such Borrowing is determined. For purposes hereof, the term “Rate” shall mean the Adjusted LIBO Rate and the Alternate Base Rate.

 

“UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided that (a) if a term is defined in Article 9 of the Uniform Commercial Code differently than in another Article thereof, such term shall have the meaning set forth in Article 9 and (b) if by reason of mandatory provisions of law, perfection or the effect of perfection or non-perfection of a security interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be.

 

“Unfunded Pension Liability” shall mean the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Sections 412 or 430 of the Code and Sections 302 or 303 of ERISA for the applicable plan year.

 

“Unrestricted Cash” shall mean, at any date of determination, the aggregate amount of cash of the Borrower and the Restricted Subsidiaries at such date to the extent that the use of such cash for application to payment of the Obligations or other Indebtedness is not prohibited by law or any contract or other agreement and such cash is free and clear of all Liens (other than Liens in 

 

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favor of the Collateral Agent and the ABL Facility Agent or as would not cause such cash to be classified as “restricted” on a consolidated balance sheet of the Borrower prepared in accordance with GAAP).

 

“Unrestricted Subsidiary” shall mean any Subsidiary of the Borrower that is designated by the Borrower as an “Unrestricted Subsidiary” as provided in Section 5.23; provided that an Unrestricted Subsidiary shall cease to be an Unrestricted Subsidiary if converted to a Restricted Subsidiary in accordance with Section 5.23; provided further, that in no event will Moran Foods constitute an Unrestricted Subsidiary.  As of the Closing Date, no Subsidiary of the Borrower is an Unrestricted Subsidiary.

 

“USA PATRIOT Act” shall mean The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)).

 

“Value” shall mean (a) the value of the Real Estate sites (and the Equipment located thereon that is owned by the Borrower or its Subsidiaries) as set forth in the Closing Date Collateral List, and (b) with respect to any Substitute Property or Additional Property (and the Equipment located thereon that is owned by the Borrower or its Subsidiaries), the book value thereof (and, in the case of any Replaced Property or Released Property, the value thereof as set forth in the Applicable Collateral List) or, with respect to any Real Estate site valued pursuant to a New Valuation, the value of such Real Estate site (and the Equipment located thereon that is owned by the Borrower or its Subsidiaries) set forth in such New Valuation.

 

“Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness at any date, the number of years obtained by dividing (a) the then outstanding principal amount of such Indebtedness by (b) the total of the product of (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof multiplied by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment.

 

“Yield Differential” shall have the meaning assigned to such term in Section 2.22(b).

 

SECTION 1.02.  Terms Generally.  The definitions in Section 1.01 shall apply equally to both 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”; and the words “asset” and “property” shall be construed as having 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.  Any reference to any law, code, statute, treaty, rule, guideline, regulation or ordinance of a Governmental Authority shall, unless otherwise specified, refer to such law, code, statute, treaty, rule, guideline, regulation or ordinance as amended, supplemented or otherwise modified from time to time.  Any reference to any IRS form shall be construed to include any successor form.  All references herein to Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, this Agreement unless the context shall otherwise require.  Except as otherwise expressly provided herein, (a) any reference in this Agreement to any Loan Document or other agreement, document or instrument shall mean such document as amended, restated, supplemented or otherwise modified from time to time, in each case, in accordance with the express terms of this Agreement, and (b) all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided, however, that if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any calculation or any related definition to eliminate the effect of any change in GAAP occurring after the date of this Agreement on the operation of such covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend any calculation or any related definition), then the Borrower’s 

 

48

 

compliance with such covenant shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant or definition is amended in a manner satisfactory to the Borrower and the Required Lenders.  Neither this Agreement or any other Loan Document nor any other agreement, document or instrument referred to herein or executed and delivered in connection herewith shall be construed against any Person as the principal draftsperson hereof or thereof.

 

SECTION 1.03.  Pro Forma Calculations.  All pro forma calculations permitted or required to be made by the Borrower or any Subsidiary pursuant to this Agreement shall include only those adjustments that would be (a) permitted or required by Regulation S-X under the Securities Act of 1933, as amended, together with those adjustments that (i) have been certified by a Responsible Officer of the Borrower as having been prepared in good faith based upon reasonable assumptions and (ii) are based on reasonably detailed written assumptions reasonably acceptable to the Administrative Agent and (b) required by the definition Consolidated EBITDA.

 

SECTION 1.04.  Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., an “Other Loan”) or by Class and Type (e.g., a “Eurodollar Other Loan”) . Borrowings also may be classified and referred to by Class (e.g., an “Other Borrowing”) or by Class and Type (e.g., an “Other Eurodollar Borrowing”).

 

ARTICLE II

 

THE CREDITS

 

SECTION 2.01.  Commitments.  (a)    Subject to the terms and conditions and relying upon the representations and warranties herein set forth, each Lender agrees, severally and not jointly, to make a Loan to the Borrower on the Second Restatement Date in a principal amount not to exceed its Commitment.  Amounts paid or prepaid in respect of the Loans may not be reborrowed.

 

(b)   Each Lender having an Incremental Loan Commitment, severally and not jointly, hereby agrees, subject to the terms and conditions and relying upon the representations and warranties set forth herein and in the applicable Incremental Loan Assumption Agreement, to make Incremental Loans to the Borrower, in an aggregate principal amount not to exceed its Incremental Loan Commitment.  Amounts paid or prepaid in respect of Incremental Loans may not be reborrowed.

 

SECTION 2.02.  Loans.  (a)  Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their applicable Commitments; provided, however, that the failure of any Lender to make any Loan shall not in itself relieve any other Lender of its obligation to lend hereunder (it being understood, however, that no Lender shall be responsible for the failure of any other Lender to make any Loan required to be made by such other Lender).  The Loans comprising any Borrowing shall be in an aggregate principal amount that is (i) an integral multiple of $1,000,000 and not less than $5,000,000 (except, with respect to any Incremental Borrowing, to the extent otherwise provided in the related Incremental Loan Assumption Agreement) or (ii) equal to the remaining available balance of the applicable Commitments.

 

(b)   Subject to Sections 2.08 and 2.15, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request pursuant to Section 2.03. Each Lender may at its option make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not 

 

49

 

affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. Borrowings of more than one Type may be outstanding at the same time; provided, however, that the Borrower shall not be entitled to request any Borrowing that, if made, would result in more than eight Eurodollar Borrowings outstanding hereunder at any time. For purposes of the foregoing, Borrowings having different Interest Periods, regardless of whether they commence on the same date, shall be considered separate Borrowings.

 

(c)   Each Lender shall make each Loan or Incremental Loan to be made by it hereunder on the Second Restatement Date or the proposed date of Borrowing thereof, as applicable, by wire transfer of immediately available funds to such account in New York City as the Administrative Agent may designate not later than 9:00 a.m., New York City time, and the Administrative Agent shall promptly wire transfer the amounts so received in accordance with instructions received from the Borrower in the applicable Borrowing Request or, if a Borrowing shall not occur on such date because any condition precedent herein specified shall not have been met, return the amounts so received to the respective Lenders.

 

(d)   Unless the Administrative Agent shall have received notice from a Lender prior to the date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the date of such Borrowing in accordance with Section 2.02(c) and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If the Administrative Agent shall have so made funds available then, to the extent that such Lender shall not have made such portion available to the Administrative Agent, such Lender and the Borrower severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower to but excluding the date such amount is repaid to the Administrative Agent at (i) in the case of the Borrower, a rate per annum equal to the interest rate applicable at the time to the Loans comprising such Borrowing and (ii) in the case of such Lender, a rate determined by the Administrative Agent to represent its cost of overnight or short-term funds (which determination shall be conclusive absent manifest error). If such Lender shall repay to the Administrative Agent such corresponding amount, such amount shall constitute such Lender’s Loan as part of such Borrowing for purposes of this Agreement.

 

SECTION 2.03.  Borrowing Procedure.  In order to request a Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 2:00 p.m., New York City time, three Business Days before a proposed Borrowing, and (b) in the case of an ABR Borrowing, not later than 2:00 p.m., New York City time, one Business Day before a proposed Borrowing.  Each such telephonic Borrowing Request shall be irrevocable, and shall be confirmed promptly by hand delivery, e-mail or fax to the Administrative Agent of a written Borrowing Request and shall specify the following information: (i) whether the Borrowing then being requested is to be a Borrowing of Loans or a Borrowing of Incremental Loans and whether such Borrowing is to be a Eurodollar Borrowing or an ABR Borrowing (provided that, until the Administrative Agent shall have notified the Borrower that the primary syndication of the Commitments has been completed (which notice shall be given as promptly as practicable and, in any event, within 30 days after the Second Restatement Date), the Borrower shall not be permitted to request a Eurodollar Borrowing with an Interest Period in excess of one month); provided, however, that the initial Interest Period of any Eurodollar Borrowing made on the Second Restatement Date shall commence on the Second Restatement Date and end on March 31, 2014; (ii) the date of such Borrowing (which shall be a Business Day); (iii) the number and location of the account to which 

 

50

 

funds are to be disbursed; (iv) the amount of such Borrowing; and (v) if such Borrowing is to be a Eurodollar Borrowing, the Interest Period with respect thereto; provided, however, that, notwithstanding any contrary specification in any Borrowing Request, each requested Borrowing shall comply with the requirements set forth in Section 2.02.  If no election as to the Type of Borrowing is specified in any such notice, then the requested Borrowing shall be an ABR Borrowing.  If no Interest Period with respect to any Eurodollar Borrowing is specified in any such notice, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  The Administrative Agent shall promptly advise the applicable Lenders of any notice given pursuant to this Section 2.03 (and the contents thereof), and of each Lender’s portion of the requested Borrowing.

 

SECTION 2.04.  Evidence of Debt; Repayment of Loans.  (a)  The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the principal amount of each Loan of such Lender as provided in Section 2.11.

 

(b)   Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement.

 

(c)   The Administrative Agent shall maintain the Register in which it will record (i) the amount of each Loan made hereunder, the Class and Type thereof and, if applicable, the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower or any Guarantor and each Lender’s share thereof.

 

(d)   The entries made in the Register maintained pursuant to Section 2.04(c) shall be prima facie evidence of the existence and amounts of the obligations therein recorded; provided, however, that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligations of the Borrower to repay the Loans in accordance with their terms.

 

(e)   Any Lender may request that Loans made by it hereunder be evidenced by a promissory note.  In such event, the Borrower shall execute and deliver to such Lender a promissory note payable to such Lender and its registered assigns and in the form attached hereto as Exhibit J.  Notwithstanding any other provision of this Agreement, in the event any Lender shall request and receive such a promissory note, the interests represented by such note shall at all times thereafter (including after any assignment of all or part of such interests pursuant to Section 9.04) be represented by one or more promissory notes payable to the payee named therein or its registered assigns.

 

SECTION 2.05.  Fees.  The Borrower agrees to pay to the Administrative Agent, for its own account, the administrative fees set forth in the Fee Letter at the times and in the amounts specified therein (the “Administrative Agent Fees”).  In addition, the Borrower agrees to pay on the Second Restatement Date to each Lender that is a party to the Second Amendment Agreement as a Lender on the Second Restatement Date, as fee compensation for the funding of such Lender’s Loan, a closing fee (collectively, the “Participation Fees”) in an amount equal to 0.125% of the stated principal amount of such Lender’s Loan, payable to such Lender from the proceeds of its Loans as and when funded on the Second Restatement Date.  Such Participation Fees will be in all respects fully earned, due and payable on the Second Restatement Date.All Fees shall be paid on the dates due, in immediately available funds, to the Administrative 

 

51

 

Agent for distribution, if and as appropriate, among the Lenders.  Once paid, none of the Fees shall be refundable under any circumstances.

 

SECTION 2.06.  Interest on Loans.  (a)  Subject to the provisions of Section 2.07, the Loans comprising each ABR Borrowing shall bear interest (computed on the basis of the actual number of days elapsed over a year of 365 or 366 days, as the case may be, when the Alternate Base Rate is determined by reference to the Prime Rate and over a year of 360 days at all other times and calculated from and including the date of such Borrowing to but excluding the date of repayment thereof) at a rate per annum equal to the Alternate Base Rate plus the Applicable Margin.

 

(b)   Subject to the provisions of Section 2.07, the Loans comprising each Eurodollar Borrowing shall bear interest (computed on the basis of the actual number of days elapsed over a year of 360 days) at a rate per annum equal to the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin.

 

(c)   Interest on each Loan shall be payable on the Interest Payment Dates applicable to such Loan except as otherwise provided in this Agreement. The applicable Alternate Base Rate or Adjusted LIBO Rate for each Interest Period or day within an Interest Period, as the case may be, shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

 

SECTION 2.07.  Default Interest.  If any Event of Default under Sections 7.01(a), 7.01(f) or 7.01(g) has occurred and is continuing then, until such defaulted amount shall have been paid in full, to the extent permitted by law, such defaulted amounts shall bear interest (after as well as before judgment), payable on demand, (a) in the case of principal, at the rate otherwise applicable to such Loan pursuant to Section 2.06 plus 2.00% per annum and (b) in all other cases, at a rate per annum (computed on the basis of the actual number of days elapsed over a year of 365 or 366 days, as the case may be, when determined by reference to the Prime Rate and over a year of 360 days at all other times) equal to the rate that would be applicable to an ABR Loan plus 2.00% per annum.

 

SECTION 2.08.  Alternate Rate of Interest.  In the event, and on each occasion, that on the day two Business Days prior to the commencement of any Interest Period for a Eurodollar Borrowing the Administrative Agent shall have determined (a) that Dollar deposits in the principal amounts of the Loans comprising such Borrowing are not generally available in the London interbank market, (b) that the rates at which such Dollar deposits are being offered will not adequately and fairly reflect the cost to the Required Lenders of making or maintaining Eurodollar Loans during such Interest Period or (c) that reasonable means do not exist for ascertaining the Adjusted LIBO Rate, the Administrative Agent shall, as soon as practicable thereafter, give written or fax notice of such determination to the Borrower and the Lenders. In the event of any such determination, until the Administrative Agent shall have advised the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, any request by the Borrower for a Eurodollar Borrowing pursuant to Sections 2.03 or 2.10 shall be deemed to be a request for an ABR Borrowing.  Each determination by the Administrative Agent under this Section 2.08 shall be conclusive absent manifest error.

 

SECTION 2.09.  Termination of Commitments.  (a)  The Commitments set forth on Schedule A to the Second Amendment Agreement under the caption “New Term Loan Commitment” (and excluding, for the avoidance of doubt, any Incremental Loan Commitments, which shall terminate as provided in the related Incremental Loan Assumption Agreement) shall automatically terminate upon the making of the Loans on the Second Restatement Date.

 

52

 

(b)   Upon at least three Business Days’ prior irrevocable written or fax notice to the Administrative Agent, the Borrower may at any time in whole permanently terminate, or from time to time in part permanently reduce, the Commitments; provided, however, that each partial reduction of the Commitments shall be in an integral multiple of $1,000,000 and in a minimum amount of $5,000,000.

 

(c)   Each reduction in the Commitments hereunder shall be made ratably among the Lenders in accordance with their respective applicable Commitments.

 

SECTION 2.10.  Conversion and Continuation of Borrowings.  The Borrower shall have the right at any time upon prior irrevocable notice (including by telephone or e-mail, which in the case of telephonic notice, shall be promptly followed by written notice) to the Administrative Agent (a) not later than 2:00 p.m., New York City time, one Business Day prior to conversion, to convert any Eurodollar Borrowing into an ABR Borrowing, (b) not later than 2:00 p.m., New York City time, three Business Days prior to conversion or continuation, to convert any ABR Borrowing into a Eurodollar Borrowing or to continue any Eurodollar Borrowing as a Eurodollar Borrowing for an additional Interest Period, and (c) not later than 2:00 p.m., New York City time, three Business Days prior to conversion, to convert the Interest Period with respect to any Eurodollar Borrowing to another permissible Interest Period, subject in each case to the following:

 

(i)  until the Administrative Agent shall have notified the Borrower that the primary syndication of the Commitments has been completed (which notice shall be given as promptly as practicable and, in any event, within 30 days after the Second Restatement Date), no ABR Borrowing may be converted into a Eurodollar Borrowing with an Interest Period in excess of one month;

 

(ii)  each conversion or continuation shall be made pro rata among the Lenders in accordance with the respective principal amounts of the Loans comprising the converted or continued Borrowing;

 

(iii)  if less than all the outstanding principal amount of any Borrowing shall be converted or continued, then each resulting Borrowing shall satisfy the limitations specified in Sections 2.02(a) and 2.02(b) regarding the principal amount and maximum number of Borrowings of the relevant Type;

 

(iv)  each conversion shall be effected by each Lender and the Administrative Agent by recording for the account of such Lender the new Loan of such Lender resulting from such conversion and reducing the Loan (or portion thereof) of such Lender being converted by an equivalent principal amount; accrued interest on any Eurodollar Loan (or portion thereof) being converted shall be paid by the Borrower at the time of conversion;

 

(v)  if any Eurodollar Borrowing is converted at a time other than the end of the Interest Period applicable thereto, the Borrower shall pay, upon demand, any amounts due to the Lenders pursuant to Section 2.16;

 

(vi)  any portion of a Borrowing maturing or required to be repaid in less than one month may not be converted into or continued as a Eurodollar Borrowing;

 

(vii)  any portion of a Eurodollar Borrowing that cannot be converted into or continued as a Eurodollar Borrowing by reason of the immediately preceding clause shall 

 

53

 

be automatically converted at the end of the Interest Period in effect for such Borrowing into an ABR Borrowing;

 

(viii)  no Interest Period may be selected for any Eurodollar Borrowing that would end later than a Repayment Date occurring on or after the first day of such Interest Period if, after giving effect to such selection, the aggregate outstanding amount of (A) the Eurodollar Borrowings comprised of Loans or Other Loans, as applicable, with Interest Periods ending on or prior to such Repayment Date and (B) the ABR Borrowings comprised of Loans or Other Loans, as applicable, would not be at least equal to the principal amount of Borrowings to be paid on such Repayment Date; and

 

(ix)  upon notice to the Borrower from the Administrative Agent given at the request of the Required Lenders, after the occurrence and during the continuance of a Default or Event of Default, no outstanding Loan may be converted into, or continued as, a Eurodollar Loan.

 

Each notice pursuant to this Section 2.10 shall be irrevocable and shall refer to this Agreement and specify (i) the identity and amount of the Borrowing that the Borrower requests be converted or continued, (ii) whether such Borrowing is to be converted to or continued as a Eurodollar Borrowing or an ABR Borrowing, (iii) if such notice requests a conversion, the date of such conversion (which shall be a Business Day) and (iv) if such Borrowing is to be converted to or continued as a Eurodollar Borrowing, the Interest Period with respect thereto.  If no Interest Period is specified in any such notice with respect to any conversion to or continuation as a Eurodollar Borrowing, the Borrower shall be deemed to have selected an Interest Period of one month’s duration. The Administrative Agent shall advise the Lenders of any notice given pursuant to this Section 2.10 and of each Lender’s portion of any converted or continued Borrowing. If the Borrower shall not have given notice in accordance with this Section 2.10 to continue any Borrowing into a subsequent Interest Period (and shall not otherwise have given notice in accordance with this Section 2.10 to convert such Borrowing), such Borrowing shall, at the end of the Interest Period applicable thereto (unless repaid pursuant to the terms hereof), automatically be converted to an ABR Borrowing.

 

SECTION 2.11.  Repayment of Borrowings.  (a)  (i)  The Borrower shall pay to the Administrative Agent, for the account of the Lenders, on the dates set forth below, or if any such date is not a Business Day, on the next preceding Business Day (each such date being called a “Repayment Date”), a principal amount of the Loans other than Other Loans (as adjusted from time to time pursuant to Sections 2.11(b), 2.12, 2.13(f) and 2.22(d)) equal to the amount set forth below for such date, together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment:

 

	
Repayment Date
    	
 
    	
Amount
    	
 
    
	
March 31, 2014
    	
 
    	
$
    	
3,750,000
    	
 
    
	
June 30, 2014
    	
 
    	
$
    	
3,750,000
    	
 
    
	
September 30, 2014
    	
 
    	
$
    	
3,750,000
    	
 
    
	
December 31, 2014
    	
 
    	
$
    	
3,750,000
    	
 
    
	
March 31, 2015
    	
 
    	
$
    	
3,750,000
    	
 
    
	
June 30, 2015
    	
 
    	
$
    	
3,750,000
    	
 
    
	
September 30, 2015
    	
 
    	
$
    	
3,750,000
    	
 
    
	
December 31, 2015
    	
 
    	
$
    	
3,750,000
    	
 
    
	
March 31, 2016
    	
 
    	
$
    	
3,750,000
    	
 
    
	
June 30, 2016
    	
 
    	
$
    	
3,750,000
    	
 
    
	
September 30, 2016
    	
 
    	
$
    	
3,750,000
    	
 
    
	
December 31, 2016
    	
 
    	
$
    	
3,750,000
    	
 
    
	
March 31, 2017
    	
 
    	
$
    	
3,750,000
    	
 
    
	
June 30, 2017
    	
 
    	
$
    	
3,750,000
    	
 
    
	
September 30, 2017
    	
 
    	
$
    	
3,750,000
    	
 
    
	
December 31, 2017
    	
 
    	
$
    	
3,750,000
    	
 
    
	
March 31, 2018
    	
 
    	
$
    	
3,750,000
    	
 
    
	
June 30, 2018
    	
 
    	
$
    	
3,750,000
    	
 
    
	
September 30, 2018
    	
 
    	
$
    	
3,750,000
    	
 
    
	
December 31, 2018
    	
 
    	
$
    	
3,750,000
    	
 
    
	
Maturity Date
    	
 
    	
Remaining unpaid principal amount of the Loans
    	
 
    

 

54

 

(ii)  The Borrower shall pay to the Administrative Agent, for the account of the Incremental Lenders, on each Incremental Loan Repayment Date, a principal amount of the Other Loans (as adjusted from time to time pursuant to Sections 2.11(b), 2.12 and 2.13(f)) equal to the amount set forth for such date in the applicable Incremental Loan Assumption Agreement, together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment.

 

(b)   In the event and on each occasion that the Incremental Loan Commitments shall be reduced or shall expire or terminate other than as a result of the making of an Incremental Loan, the installments payable on each Incremental Repayment Date shall be reduced pro rata by an aggregate amount equal to the amount of such reduction, expiration or termination.

 

(c)   To the extent not previously paid, all Loans, Other Loans and Extended Loans shall be due and payable on the Maturity Date, the Incremental Loan Maturity Date and the maturity date of such Extended Loans, respectively, together with accrued and unpaid interest on the principal amount to be paid to but excluding the date of payment.

 

(d)   All repayments pursuant to this Section 2.11 shall be subject to Section 2.16, but shall otherwise be without premium or penalty.

 

SECTION 2.12.  Voluntary Prepayments.  (a)  The Borrower shall have the right at any time and from time to time to prepay any Borrowing, in whole or in part, upon at least three Business Days’ prior written or fax notice (or telephone notice promptly confirmed by written or fax notice) in the case of Eurodollar Loans, or written or fax notice (or telephone notice promptly confirmed by written or fax notice) at least one Business Day prior to the date of prepayment in the case of ABR Loans, to the Administrative Agent before 12:00 noon, New York City time; provided, however, that each partial prepayment shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000.

 

(b)   Voluntary prepayments of outstanding Loans shall be applied against the remaining scheduled installments of principal due in respect of the Loans under Section 2.11 as directed by the Borrower.

 

(c)   Each notice of prepayment shall specify the prepayment date and the principal amount of each Borrowing (or portion thereof) to be prepaid, shall be irrevocable and shall commit the Borrower to prepay such Borrowing by the amount stated therein on the date stated therein; provided, however, that if such prepayment is for all of the then outstanding Loans, then

 

55

 

the Borrower may revoke such notice and/or extend the prepayment date by not more than five Business Days; provided, further, however, that the provisions of Section 2.16 shall apply with respect to any such revocation or extension. All prepayments under this Section 2.12 shall be subject to Section 2.16 but otherwise without premium or penalty (subject to the last sentence of this Section 2.12(c)).  All prepayments under this Section 2.12 shall be accompanied by accrued and unpaid interest on the principal amount to be prepaid to but excluding the date of payment.  In the event that prior to the date that is six months after the Second Restatement Date, the Borrower (i) voluntarily prepays or otherwise refinances, substitutes or replaces any Loans pursuant to any Repricing Transaction or (ii) effects any amendment of this Agreement resulting in a Repricing Transaction, then the Borrower shall pay to the Lenders (x) in the case of clause (i), a fee of 1.00% of the aggregate principal amount of Loans so voluntarily prepaid, refinanced, substituted or replaced and (y) in the case of clause (ii), a fee equal to 1.00% of the aggregate principal amount of the applicable Loans outstanding immediately prior to such amendment.

 

SECTION 2.13.  Mandatory Prepayments.

 

(a)   Not later than the tenth day following the receipt of Net Cash Proceeds (other than a Store Conversion Transaction not involving Net Cash Proceeds in excess of $1,000,000) in respect of any Term Loan Priority Collateral Sale, the Borrower shall apply 100% of the Net Cash Proceeds received with respect thereto to prepay outstanding Loans in accordance with Section 2.13(f); provided that, if (i) the Borrower shall deliver a certificate of a Responsible Officer to the Administrative Agent not later than the tenth day following receipt thereof setting forth the Borrower’s intent to reinvest such proceeds in productive assets of a kind then used or usable in the business of the Borrower and its Restricted Subsidiaries within 365 days of receipt of such proceeds, (ii) such proceeds are at all times following the delivery of such certificate and prior to such reinvestment, held in a depositary account maintained in accordance with Section 5.22 hereof and subject to a Blocked Account Agreement in favor of the Collateral Agent and the ABL Collateral Agent and (iii) no Default or Event of Default shall have occurred and shall be continuing at the time of such certificate or at the proposed time of the application of such proceeds, such proceeds shall not be required to prepay outstanding Loans except to the extent not so used at the end of such 365-day period or committed to be so used at the end of and so used within 180 days after the end of such 365-day period, at which time any such proceeds not so used shall be applied to prepay outstanding Loans in accordance with Section 2.13(f); provided, further, that the Net Cash Proceeds received with respect thereto shall be reinvested (v) such that after giving effect to such reinvestment, the Related Real Estate Collateral shall not constitute more than 45% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral, (w) such that after giving effect to such reinvestment, the owned Real Estate Collateral Properties shall constitute at least 50% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral, (x) to the extent attributable to a Loan Party, in assets of a Loan Party, (y) to the extent attributable to Related Real Estate Collateral or Real Estate Collateral Properties, in Related Real Estate Collateral or Real Estate Collateral Properties and (z) in Term Loan Priority Collateral.

 

(b)   In the event that the Borrower or any Restricted Subsidiary conducts any Other Asset Sale for which the Net Cash Proceeds exceed $5,000,000, then the Borrower shall apply 100% of the Net Cash Proceeds received with respect thereto to prepay outstanding Loans in accordance with Section 2.13(f) not later than the tenth day following the receipt of such Net Cash Proceeds; provided that if (x) the Borrower shall deliver a certificate of a Responsible Officer to the Administrative Agent not later than the tenth day following receipt thereof setting forth the Borrower’s intent to reinvest such proceeds in productive assets of a kind then used or usable in the business of the Borrower and its Restricted Subsidiaries within 365 days of receipt 

 

56

 

of such proceeds, (y) such proceeds attributable to Term Loan Priority Collateral are at all times following the delivery of such certificate and prior to such reinvestment, held in a depositary account maintained in accordance with Section 5.22 hereof and subject to a Blocked Account Agreement in favor of the Collateral Agent and the ABL Collateral Agent and (z) no Default or Event of Default shall have occurred and shall be continuing at the time of such certificate or at the proposed time of the application of such proceeds, such proceeds shall not be required to prepay outstanding Loans except to the extent not so used at the end of such 365-day period or committed to be so used at the end of and so used within 180 days after the end of such 365-day period, at which time any such proceeds not so used shall be applied to prepay outstanding Loans in accordance with Section 2.13(f); provided, further, that the Net Cash Proceeds received with respect thereto shall be reinvested (v) to the extent attributable to Term Loan Priority Collateral, such that after giving effect to such reinvestment, the Related Real Estate Collateral shall not constitute more than 45% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral, (w) to the extent attributable to Term Loan Priority Collateral, such that after giving effect to such reinvestment, the owned Real Estate Collateral Properties shall constitute at least 50% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral, (x) to the extent attributable to a Loan Party, in assets of a Loan Party, (y) to the extent attributable to Term Loan Priority Collateral that is Related Real Estate Collateral or Real Estate Collateral Properties, in Related Real Estate Collateral or Real Estate Collateral Properties and (z) to the extent attributable to Term Loan Priority Collateral, in other Term Loan Priority Collateral.

 

(c)   No later than 90 days after the end of each Fiscal Year of the Borrower, commencing with the Fiscal Year ending closest to February 28, 2014, the Borrower shall prepay outstanding Loans in accordance with Section 2.13(f) in an aggregate principal amount equal to (x) 50% of Excess Cash Flow for the Fiscal Year then ended minus (y) voluntary prepayments of Loans under Section 2.12 made during such Fiscal Year with Internally Generated Cash; provided that such prepayments do not occur in connection with a refinancing of all or any portion of such Indebtedness; provided, further, that the Excess Cash Flow percentage for any Fiscal Year with respect to which Excess Cash Flow is measured shall be reduced to (A) 25% if the Total Secured Leverage Ratio as of the last day of such Fiscal Year is less than or equal to 2.00:1.00 but greater than 1.50:1.00 and (B) zero if the Total Secured Leverage Ratio as of the last day of such Fiscal Year is less than or equal to 1.50:1.00.

 

(d)   In the event that the Borrower or any Restricted Subsidiary shall receive Net Cash Proceeds from the issuance or incurrence of Indebtedness for money borrowed (other than Permitted Indebtedness), the Borrower shall, substantially simultaneously with (and in any event not later than the first Business Day next following) the receipt of such Net Cash Proceeds by the Borrower or such Restricted Subsidiary, apply an amount equal to 100% of such Net Cash Proceeds to prepay outstanding Loans in accordance with Section 2.13(f).

 

(e)   Not later than the tenth day following the receipt of Net Cash Proceeds in respect of any Moran Sale, the Borrower shall apply an amount equal to (x) 100% of the first $750,000,000 of Net Cash Proceeds received with respect thereto and (y) thereafter, 50% of the Net Cash Proceeds in excess of such amount up to an amount that would cause the Total Secured Leverage Ratio on a pro forma basis after giving effect to such prepayment to be 1.50:1.00, in each case to prepay outstanding Loans in accordance with Section 2.13(f).

 

(f)   Mandatory prepayments of outstanding Loans under this Agreement shall be allocated pro rata between the Loans, the Other Loans and the Extended Loans (unless Other Loans or Extended Loans agreed to receive less than their pro rata share) and applied first, to the 

 

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next four succeeding scheduled installments of principal due in respect of the Loans, Other Loans and Extended Loans under Sections 2.11(a)(i) and (ii), respectively, second, pro rata against the remaining scheduled installments of principal due in respect of the Loans, Other Loans and the Extended Loans under Sections 2.11(a)(i) and (ii), respectively (excluding the final payments on the Maturity Date of the Loans (or the maturity date in respect of such Other Loans or Extended Loans) under Sections 2.11(a)(i) and (ii), respectively and third, to the final payment on the Maturity Date of the Loans (or the final payment on the maturity date of such Other Loans or Extended Loans).

 

(g)   The Borrower shall deliver to the Administrative Agent, at the time of each prepayment required under this Section 2.13, (i) a certificate signed by a Responsible Officer of the Borrower setting forth in reasonable detail the calculation of the amount of such prepayment and (ii) to the extent practicable (except in respect of prepayments required under Section 2.13(d)), at least three Business Days prior written notice of such prepayment.  Each notice of prepayment shall specify the prepayment date, the Type of each Loan being prepaid and the principal amount of each Loan (or portion thereof) to be prepaid.  All prepayments of Borrowings under this Section 2.13 shall be subject to Section 2.16, but shall otherwise be without premium or penalty, and shall be accompanied by accrued and unpaid interest on the principal amount to be prepaid to but excluding the date of payment.

 

SECTION 2.14.  Reserve Requirements; Change in Circumstances.  (a)  Notwithstanding any other provision of this Agreement, if any Change in Law shall impose, modify or deem applicable any reserve, special deposit, liquidity requirement, Tax (other than Indemnified Taxes indemnified pursuant to Section 2.20 and Excluded Taxes) or similar requirement against assets of, deposits with or for the account of or credit extended by any Lender (except any such reserve requirement which is reflected in the Adjusted LIBO Rate) or shall impose on such Lender or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender, and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan or increase the cost to any Lender or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or otherwise) by an amount deemed by such Lender to be material, then the Borrower will pay to such Lender upon demand such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.

 

(b)   If any Lender shall have determined that any Change in Law regarding capital adequacy or liquidity has had 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 or the Loans made by such Lender pursuant hereto 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 and liquidity) by an amount deemed by such Lender to be material, then from time to time the Borrower shall pay to such Lender upon demand such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

 

(c)   A certificate of a Lender setting forth (i) the amount or amounts necessary to compensate such Lender or its holding company, as applicable, and (ii) the calculations supporting such amount or amounts, as specified in Sections 2.14(a) or 2.14(b) shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate delivered by it within 10 days after its receipt of the same.

 

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(d)   Failure or delay on the part of any Lender to demand compensation for any increased costs or reduction in amounts received or receivable or reduction in return on capital shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be under any obligation to compensate any Lender under Sections 2.14(a) or 2.14(b) with respect to increased costs or reductions with respect to any period prior to the date that is 180 days prior to such request if such Lender knew or would reasonably have been expected to know of the circumstances giving rise to such increased costs or reductions and of the fact that such circumstances would result in a claim for increased compensation by reason of such increased costs or reductions; provided, further, that the foregoing limitation shall not apply to any increased costs or reductions arising out of the retroactive application of any Change in Law within such 180-day period. The protection of this Section 2.14 shall be available to each Lender regardless of any possible contention of the invalidity or inapplicability of the Change in Law that shall have occurred or been imposed.

 

SECTION 2.15.  Change in Legality.  (a)  Notwithstanding any other provision of this Agreement, if any Change in Law shall make it unlawful for any Lender to make or maintain any Eurodollar Loan or to give effect to its obligations as contemplated hereby with respect to any Eurodollar Loan, then, by written notice to the Borrower and to the Administrative Agent:

 

(i) such Lender may declare that Eurodollar Loans will not thereafter (for the duration of such unlawfulness) be made by such Lender hereunder (or be continued for additional Interest Periods) and ABR Loans will not thereafter (for such duration) be converted into Eurodollar Loans, whereupon any request for a Eurodollar Borrowing (or to convert an ABR Borrowing to a Eurodollar Borrowing or to continue a Eurodollar Borrowing for an additional Interest Period) shall, as to such Lender only, be deemed a request for an ABR Loan (or a request to continue an ABR Loan as such for an additional Interest Period or to convert a Eurodollar Loan into an ABR Loan, as the case may be), unless such declaration shall be subsequently withdrawn; and

 

(ii) such Lender may require that all outstanding Eurodollar Loans made by it be converted to ABR Loans, in which event all such Eurodollar Loans shall be automatically converted to ABR Loans as of the effective date of such notice as provided in Section 2.15(b).

 

In the event any Lender shall exercise its rights under clauses (i) or (ii) above, all payments and prepayments of principal that would otherwise have been applied to repay the Eurodollar Loans that would have been made by such Lender or the converted Eurodollar Loans of such Lender shall instead be applied to repay the ABR Loans made by such Lender in lieu of, or resulting from the conversion of, such Eurodollar Loans.

 

(b)   For purposes of this Section 2.15, a notice to the Borrower by any Lender shall be effective as to each Eurodollar Loan made by such Lender, if lawful, on the last day of the Interest Period then applicable to such Eurodollar Loan; in all other cases such notice shall be effective on the date of receipt by the Borrower.

 

SECTION 2.16.  Breakage.  The Borrower shall indemnify each Lender against any loss or expense that such Lender may sustain or incur as a consequence of (a) any event, other than a default by such Lender in the performance of its obligations hereunder, which results in (i) such Lender receiving or being deemed to receive any amount on account of the principal of any Eurodollar Loan prior to the end of the Interest Period in effect therefor, (ii) the conversion of any Eurodollar Loan to an ABR Loan, or the conversion of the Interest Period with respect to any Eurodollar Loan, in each case other than on the last day of the Interest Period in effect therefor, or (iii) any Eurodollar Loan to be made by such Lender (including any Eurodollar Loan to be made 

 

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pursuant to a conversion or continuation under Section 2.10) not being made after notice of such Loan shall have been given by the Borrower hereunder (any of the events referred to in this clause (a) being called a “Breakage Event”) or (b) any default in the making of any payment or prepayment of any Eurodollar Loan required to be made hereunder.  In the case of any Breakage Event, such loss shall include an amount equal to the excess, as reasonably determined by such Lender, of (i) its cost of obtaining funds for the Eurodollar Loan that is the subject of such Breakage Event for the period from the date of such Breakage Event to the last day of the Interest Period in effect (or that would have been in effect) for such Loan over (ii) the amount of interest likely to be realized by such Lender in redeploying the funds released or not utilized by reason of such Breakage Event for such period.  Each Lender shall provide a certificate setting forth any amount or amounts which such Lender is entitled to receive pursuant to this Section 2.16 to the Borrower within 180 days after the Breakage Event and such certificate shall be conclusive absent manifest error.

 

SECTION 2.17.  Pro Rata Treatment.  Except as required under Section 2.15 or otherwise stated herein, each Borrowing, each payment or prepayment of principal of any Borrowing, each payment of interest on the Loans and each conversion of any Borrowing to or continuation of any Borrowing as a Borrowing of any Type shall be allocated pro rata among the Lenders in accordance with their respective applicable Commitments (or, if such Commitments shall have expired or been terminated, in accordance with the respective principal amounts of their outstanding Loans).  Each Lender agrees that in computing such Lender’s portion of any Borrowing to be made hereunder, the Administrative Agent may, in its discretion, round each Lender’s percentage of such Borrowing to the next higher or lower whole Dollar amount.

 

SECTION 2.18.  Sharing of Setoffs.  Each Lender agrees that if it shall, through the exercise of a right of banker’s lien, setoff or counterclaim against the Borrower or any other Loan Party, or pursuant to a secured claim under Section 506 of Title 11 of the United States Code or other security or interest arising from, or in lieu of, such secured claim, received by such Lender under any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means, obtain payment (voluntary or involuntary) in respect of any Loan or Loans as a result of which the unpaid principal portion of its Loans shall be proportionately less than the unpaid principal portion of the Loans of any other Lender, it shall be deemed simultaneously to have purchased from such other Lender at face value, and shall promptly pay to such other Lender the purchase price for, a participation in the Loans of such other Lender, so that the aggregate unpaid principal amount of the Loans held by each Lender shall be in the same proportion to the aggregate unpaid principal amount of all Loans then outstanding as the principal amount of its Loans prior to such exercise of banker’s lien, setoff or counterclaim or other event was to the principal amount of all Loans outstanding prior to such exercise of banker’s lien, setoff or counterclaim or other event; provided, however, that (i) if any such purchase or purchases or adjustments shall be made pursuant to this Section 2.18 and the payment giving rise thereto shall thereafter be recovered, such purchase or purchases or adjustments shall be rescinded to the extent of such recovery and the purchase price or prices or adjustment restored without interest, and (ii) the provisions of this Section 2.18 shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or 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 to any Affiliates of the Borrower (as to which the provisions of this Section 2.18 shall apply).  The Borrower expressly consents to the foregoing arrangements and agrees that any Lender holding a participation in a Loan deemed to have been so purchased may exercise any and all rights of banker’s lien, setoff or counterclaim with respect to any and all moneys owing by the Borrower to such Lender by reason thereof as fully as if such Lender had made a Loan directly to the Borrower in the amount of such participation.

 

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SECTION 2.19.  Payments.  (a)  The Borrower shall make each payment (including principal of or interest on any Borrowing or any Fees or other amounts) hereunder and under any other Loan Document not later than 2:00 p.m., New York City time, on the date when due in immediately available Dollars, without setoff, defense or counterclaim. Each such payment shall be made to the Administrative Agent at its offices described on Schedule 9.01(b) (or as otherwise notified by the Administrative Agent in writing to the Borrower from time to time).  Any payments received by the Administrative Agent after 2:00 p.m., New York City time, may, in the Administrative Agent’s sole discretion, be deemed received on the next succeeding Business Day.  Subject to Article VIII, the Administrative Agent shall promptly distribute to each Lender any payments received by the Administrative Agent on behalf of such Lender.

 

(b)   Except as otherwise expressly provided herein, whenever any payment (including principal of or interest on any Borrowing or any Fees or other amounts) hereunder or under any other Loan Document shall become due, or otherwise would occur, on a day that is not a Business Day, such payment may be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of interest or Fees, if applicable.

 

SECTION 2.20.  Taxes.  (a)  Any and all payments by or on account of any obligation of the Borrower or any other Loan Party hereunder or under any other Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that, if any Indemnified Taxes or Other Taxes are required to be deducted from such payments, then (i) the sum payable by the Borrower or other Loan Party shall be increased as necessary so that after making all required deductions, (including deductions applicable to additional sums payable under this Section 2.20) the Administrative Agent and each Lender (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower or such Loan Party shall make such deductions as required by law and (iii) the Borrower or such Loan Party shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

 

(b)   In addition, the Borrower and any other Loan Party, as the case may be, shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

 

(c)   The Borrower shall indemnify the Administrative Agent and each Lender, within 30 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent or such Lender, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower or any other Loan Party hereunder or otherwise with respect to any Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.20) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other 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 the Borrower by a Lender or by the Administrative Agent on behalf of itself or a Lender shall be conclusive absent manifest error.

 

(d)   Not later than 30 days after any payment of Indemnified Taxes or Other Taxes by the Borrower or any other Loan Party to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

 

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(e)   Any Lender that is entitled to an exemption from or reduction of withholding tax with respect to payments under this Agreement shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law and reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate.  Without limiting the generality of the foregoing, each Foreign Lender shall deliver to the Borrower and the Administrative Agent, on or prior to the date it becomes a Lender hereunder and thereafter upon the expiration, obsolescence or invalidity of any previously delivered documentation or upon the reasonable request of the Borrower or the Administrative Agent, two original, properly completed IRS Forms W-8BEN (claiming the benefits of an applicable tax treaty), W-8ECI, W-8EXP or W-8IMY (together with any required attachments) or, if the Foreign Lender is relying on the so-called “portfolio interest exemption,” two properly completed IRS Forms W-8BEN and two executed certificates substantially in the form of Exhibit O hereto stating that the Foreign Lender is not (i) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (ii) a “10-percent shareholder” within the meaning of Section 871(h)(3)(B) of the Code or (iii) a “controlled foreign corporation” related to any Loan Party within the meaning of Section 864(d)(4) of the Code, in the case of any of the foregoing certifying that the Foreign Lender is entitled to an exemption or reduced rate of U.S. federal withholding tax on payments hereunder.  Each Lender that is not a Foreign Lender shall deliver to the Borrower and the Administrative Agent, on or prior to the date it becomes a Lender hereunder and thereafter upon the expiration, obsolescence or invalidity of any previously delivered documentation or upon the reasonable request of the Borrower or the Administrative Agent, two original, properly completed IRS Forms W-9 or shall otherwise establish an exemption from U.S. backup withholding.  Notwithstanding the foregoing, this Section 2.20(e) shall not require any Lender to provide any forms or documentation that it is not legally entitled to provide.

 

(f)   If a payment made to a Lender hereunder may be subject to U.S. federal withholding tax under FATCA if such Lender fails to comply with the applicable reporting requirements of FATCA, such Lender 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 and such additional documentation reasonably requested by the Borrower or the Administrative Agent to comply with its withholding obligations, to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this Section 2.20(f), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

SECTION 2.21.  Assignment of Commitments Under Certain Circumstances; Duty to Mitigate.  (a)  In the event (i) any Lender delivers a certificate requesting compensation pursuant to Section 2.14, (ii) any Lender delivers a notice described in Section 2.15, (iii) the Borrower is required to pay any additional amount to any Lender or any Governmental Authority on account of any Lender pursuant to Section 2.20 or (iv) any Lender refuses to consent to any amendment, waiver or other modification of any Loan Document requested by the Borrower that requires the consent of a greater percentage of the Lenders than the Required Lenders and such amendment, waiver or other modification is consented to by the Required Lenders, then, in each case, the Borrower may, at its sole expense and effort (including with respect to the processing and recordation fee referred to in Section 9.04(b)), upon notice to such Lender and the Administrative Agent, require such Lender to transfer and assign, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all of its interests, rights and obligations under this Agreement (or, in the case of clause (iv) above, all of its interests, rights and obligations with respect to the Class of Loans or Commitments that is the subject of the 

 

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related consent, amendment, waiver or other modification) to an Eligible Assignee that shall assume such assigned obligations and, with respect to clause (iv) above, shall consent to such requested amendment, waiver or other modification of any Loan Documents (which assignee may be another Lender, if a Lender accepts such assignment); provided that (x) such assignment shall not conflict with any law, rule or regulation or order of any court or other Governmental Authority having jurisdiction, (y) the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld or delayed, and (z) the Borrower or such assignee shall have paid to the affected Lender in immediately available funds an amount equal to the sum of the principal of and interest accrued to the date of such payment on the outstanding Loans of such Lender plus all Fees and other amounts accrued for the account of such Lender hereunder with respect thereto (including any amounts under Sections 2.14 and 2.16 and, in the case of any such assignment occurring in connection with a Repricing Transaction occurring prior to the date that is six months after the Second Restatement Date, the prepayment fee pursuant to Section 2.12(c) (with such assignment being deemed to be a voluntary prepayment for purposes of determining the applicability of Section 2.12(c), such amount to be payable by the Borrower)); provided, further, that if prior to any such transfer and assignment the circumstances or event that resulted in such Lender’s claim for compensation under Section 2.14, notice under Section 2.15 or the amounts paid pursuant to Section 2.20, as the case may be, cease to cause such Lender to suffer increased costs or reductions in amounts received or receivable or reduction in return on capital, or cease to have the consequences specified in Section 2.15, or cease to result in amounts being payable under Section 2.20, as the case may be (including as a result of any action taken by such Lender pursuant to Section 2.21(b)), or if such Lender shall waive its right to claim further compensation under Section 2.14 in respect of such circumstances or event or shall withdraw its notice under Section 2.15 or shall waive its right to further payments under Section 2.20 in respect of such circumstances or event or shall consent to the proposed amendment, waiver, consent or other modification, as the case may be, then such Lender shall not thereafter be required to make any such transfer and assignment hereunder.  Each Lender hereby grants to the Administrative Agent an irrevocable power of attorney (which power is coupled with an interest) to execute and deliver, on behalf of such Lender, as assignor, any Assignment and Acceptance necessary to effectuate any assignment of such Lender’s interests hereunder in the circumstances contemplated by this Section 2.21(a).

 

(b)   If (i) any Lender shall request compensation under Section 2.14, (ii) any Lender delivers a notice described in Section 2.15 or (iii) the Borrower is required to pay any additional amount to any Lender or any Governmental Authority on account of any Lender pursuant to Section 2.20, then such Lender shall use reasonable efforts (which shall not require such Lender to incur an unreimbursed loss or unreimbursed cost or expense or otherwise take any action inconsistent with its internal policies or legal or regulatory restrictions or suffer any disadvantage or burden deemed by it to be significant) (x) to file any certificate or document reasonably requested in writing by the Borrower or (y) to assign its rights and delegate and transfer its obligations hereunder to another of its offices, branches or affiliates, if such filing or assignment would reduce its claims for compensation under Section 2.14 or enable it to withdraw its notice pursuant to Section 2.15 or would reduce amounts payable pursuant to Section 2.20, as the case may be, in the future.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such filing or assignment, delegation and transfer.

 

SECTION 2.22.  Incremental Loans.  (a)  The Borrower may, by written notice to the Administrative Agent from time to time, request Incremental Loan Commitments in an amount not to exceed the Incremental Loan Amount from one or more Incremental Lenders, all of which must be Eligible Assignees. Such notice shall set forth (i) the amount of the Incremental Loan Commitments being requested (which shall be in minimum increments of $1,000,000 and a 

 

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minimum amount of $5,000,000 or such lesser amount equal to the remaining Incremental Loan Amount), (ii) the date on which such Incremental Loan Commitments are requested to become effective (which shall not be less than 10 Business Days nor more than 60 days after the date of such notice), and (iii) whether such Incremental Loan Commitments are commitments to make additional Loans or commitments to make term loans with terms different from the Loans (“Other Loans”).

 

(b)   The Borrower may seek Incremental Loan Commitments from existing Lenders (each of which shall be entitled to agree or decline to participate in its sole discretion) and additional banks, financial institutions and other institutional lenders who will become Incremental Lenders in connection therewith; provided that the Borrower and the Administrative Agent shall have consented to such additional banks, financial institutions and other institutional lenders to the extent the consent of the Borrower or the Administrative Agent, as applicable, would be required if such institution were receiving an assignment of Loans pursuant to Section 9.04 (provided, further, that the consent of the Administrative Agent shall not be required with respect to an additional bank, financial institution, or other institutional lender that is an Affiliate of a Lender or a Related Fund).  The Borrower and each Incremental Lender shall execute and deliver to the Administrative Agent an Incremental Loan Assumption Agreement and such other documentation as the Administrative Agent shall reasonably specify to evidence the Incremental Loan Commitment of each Incremental Lender.  The terms and provisions of the Incremental Loans shall be identical to those of the  Loans except as otherwise set forth herein or in the Incremental Loan Assumption Agreement.  Without the prior written consent of the Administrative Agent, (i) the final maturity date of any Other Loans shall be no earlier than the Maturity Date, (ii) the average life to maturity of the Other Loans shall be no shorter than the remaining average life to maturity of the Loans, (iii) if the initial yield on such Other Loans (as reasonably determined by the Administrative Agent to be equal to the sum of (x) the margin above the Adjusted LIBO Rate on such Other Loans (taking into account any interest rate floors with respect to such Other Loans) and (y) if such Other Loans are initially made at a discount or the Lenders making the same receive a fee directly or indirectly from the Borrower or any Subsidiary for doing so (the amount of such discount or fee, expressed as a percentage of the Other Loans, being referred to herein as “OID”), the amount of such OID divided by the lesser of (A) the average life to maturity of such Other Loans and (B) four) exceeds the Applicable Margin then in effect for Eurodollar Loans by more than 50 basis points (the amount of such excess above 50 basis points being referred to herein as the “Yield Differential”), then the Applicable Margin then in effect for Loans shall automatically be increased by the Yield Differential, effective upon the making of the Other Loans and (iv) the other terms and documentation in respect of such Other Loans, to the extent not consistent with the Term Facility, shall be reasonably satisfactory to the Administrative Agent.  The Administrative Agent shall promptly notify each Lender as to the effectiveness of each Incremental Loan Assumption Agreement.  Notwithstanding anything in Section 9.08 to the contrary, each of the parties hereto hereby agrees that, upon the effectiveness of any Incremental Loan Assumption Agreement, this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Incremental Loan Commitment and the Incremental Loans evidenced thereby, and the Administrative Agent and the Borrower may revise this Agreement to evidence such amendments.  Incremental Loans and Other Loans shall have the same guarantees as, and be secured on a pari passu basis with, the Loans.

 

(c)   Notwithstanding the foregoing, no Incremental Loan Commitment shall become effective under this Section 2.22 unless (i) on the date of such effectiveness, (x) the representations and warranties set forth in Article III and in each other Loan Document shall be true and correct in all material respects (or in all respects to the extent qualified by materiality or 

 

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Material Adverse Effect) on and as of such date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (or in all respects to the extent qualified by materiality or Material Adverse Effect) on and as of such earlier date and (y) at the time of and immediately after the giving effect to the Borrowing of Incremental Loans, no Default or Event of Default shall have occurred and be continuing, and the Administrative Agent shall have received a certificate to that effect dated such date and executed by a Responsible Officer of the Borrower, (ii) the Borrower’s Total Secured Leverage Ratio shall not exceed 2.50:1.00 on a pro forma basis after giving effect to such Incremental Loan Commitment, the incurrence of the Incremental Loans thereunder the use of proceeds thereof and the Administrative Agent shall have received a certificate to that effect showing such calculations in reasonable detail dated such date and executed by a Responsible Officer of the Borrower, (iii) all fees and expenses owing to the Administrative Agent and the Lenders in respect of such increase shall have been paid, (iv) except as otherwise specified in the applicable Incremental Loan Assumption Agreement, the Administrative Agent shall have received (with sufficient copies for each of the Incremental Lenders) legal opinions, board resolutions and other closing certificates reasonably requested by the Administrative Agent and consistent with those delivered on the Closing Date under Section 4.01 of the Original Credit Agreement and (v) to the extent reasonably necessary to maintain the continuing priority of the Lien of the Mortgages on the Real Estate Collateral Properties as security for the Obligations, as determined by the Administrative Agent in its reasonable discretion, (x) the applicable Loan Party to any Mortgages shall have entered into, and delivered to the Administrative Agent, at the direction and in the sole discretion of the Administrative Agent a mortgage modification or new Mortgage in proper form for recording in the relevant jurisdiction and in a form reasonably satisfactory to the Administrative Agent, (y) the Borrower shall have caused to be delivered to the Administrative Agent for the benefit of the Lenders an endorsement to the title insurance policy, date down(s) or other evidence reasonably satisfactory to the Administrative Agent insuring that the priority of the Lien of such Mortgages as security for the Obligations has not changed and confirming and/or insuring that since the issuance of the title insurance policy there has been no change in the condition of title and there are no intervening liens or encumbrances that may then or thereafter take priority over the Lien of such Mortgages (other than Permitted Encumbrances) and (z) the Borrower shall have delivered, at the request of the Administrative Agent, to the Administrative Agent and/or all other relevant third parties all other items reasonably necessary to maintain the continuing priority of the Lien of such Mortgages as security for the Obligations.

 

(d)   Each of the parties hereto hereby agrees that the Administrative Agent may, in consultation with the Borrower, take any and all action as may be reasonably necessary to ensure that all Incremental Loans (other than Other Loans), when originally made, are included in each Borrowing of outstanding Loans on a pro rata basis.  This may be accomplished by requiring each outstanding Eurodollar Borrowing to be converted into an ABR Borrowing on the date of each Incremental Loan, or by allocating a portion of each Incremental Loan to each outstanding Eurodollar Borrowing on a pro rata basis.  Any conversion of Eurodollar Loans to ABR Loans required by the preceding sentence shall be subject to Section 2.16.  If any Incremental Loan is to be allocated to an existing Interest Period for a Eurodollar Borrowing, then the interest rate thereon for such Interest Period and the other economic consequences thereof shall be as set forth in the applicable Incremental Loan Assumption Agreement.  In addition, to the extent any Incremental Loans are not Other Loans, the scheduled amortization payments under Section 2.11(a)(i) required to be made after the making of such Incremental Loans shall be ratably increased by the aggregate principal amount of such Incremental Loans and shall be further increased for all Lenders on a pro rata basis to the extent necessary to avoid any reduction in the amortization payments to which the Lenders were entitled before such recalculation.

 

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SECTION 2.23.  Extension Amendments.  (a)   So long as no Event of Default or Default has occurred and is continuing (after giving effect to any amendments and/or waivers that are or become effective on the date of the relevant conversion), the Borrower may at any time and from time to time request that all or a portion of any Class of Loans then outstanding selected by the Borrower (such series, the “Original Loans”) be converted to extend the maturity date thereof and to provide for other terms permitted by this Section 2.23 (any portion thereof that have been so extended, the “Extended Loans” and the remainder not so extended, the “Non-Extended Loans”).  Prior to entering into any Extension Amendment with respect to any Original Loans, the Borrower shall provide a notice to the Administrative Agent (who shall provide a copy of such notice to each Lender who has Original Loans) in such form as approved from time to time by the Borrower and the Administrative Agent (each, an “Extension Request”) setting forth the terms of the proposed Extended Loans, as applicable, which terms shall be identical to those applicable to the Original Loans, except for Section 2.23 Additional Agreements or as otherwise permitted by this Section 2.23 and except (w) the maturity date of Extended Loans may be delayed to a date after the Maturity Date, (x) Extended Loans may have different amortization payments than the Original Loans; provided that the Weighted Average Life to Maturity of such Extended Loans shall be no shorter than the Weighted Average Life to Maturity of the Original Loans from which they were converted and (y) the initial yield (including, without limitation, margins, fees and premiums) of the Extended Loans may be higher or lower than the initial yield (including, without limitation, margins, fees and premiums) of the Original Loans; provided, however, that if the initial yield on such Extended Loans (as reasonably determined by the Administrative Agent to be equal to the sum of (x) the margin above the Adjusted LIBO Rate on such Extended Loans (taking into account any interest rate floors with respect to such Extended Loans) and (y) if the Extending Lenders agreeing to extend their Loans receive a fee directly or indirectly from the Borrower or any Subsidiary for doing so (the amount of such fee, expressed as a percentage of the Extended Loans, being referred to herein as the “Extension Fee”), the amount of such Extension Fee divided by the lesser of (A) the average life to maturity of such Extended Loans and (B) four) exceeds the Applicable Margin for the Original Loans by more than 50 basis points (the amount of such excess above 50 basis points being referred to herein as the “Extended Loan Yield Differential”), then the Applicable Margin then for such Loans shall automatically be increased by the Extended Loan Yield Differential, effective upon the extension of the Extended Loans.  In addition to any other terms and changes required or permitted by this Section 2.23, each Extension Amendment establishing a Class of Extended Loans shall amend the scheduled amortization payments provided under Section 2.11 with respect to the related Non-Extended Loans to reduce each scheduled installment for such Non-Extended Loans to an aggregate amount equal to the product of (1) the original aggregate amount of such installment with respect to the Original Loans, multiplied by (2) a fraction, the numerator of which is the aggregate principal amount of such related Non-Extended Loans and (y) the denominator of which is the aggregate principal amount of such Original Loans prior to the effectiveness of such Extension Amendment (it being understood that the amount of any installment payable with respect to any individual Non-Extended Loan shall not be reduced as a result thereof without the consent of the holder of such individual Non-Extended Loan).  No Lender shall have any obligation to agree to have any of its Original Loans converted into Extended Loans pursuant to any Extension Request.

 

(b)   The Borrower shall provide the applicable Extension Request at least seven Business Days prior to the date on which the applicable Lenders are requested to respond (or such later date as the Administrative Agent may agree).  Any Lender (an “Extending Lender”) wishing to have all or a portion of its Original Loans converted into Extended Loans shall notify the Administrative Agent (such notice to be in such form as approved from time to time by the Borrower and the Administrative Agent) (each, an “Extension Election”) on or prior to the date specified in such Extension Request (which shall in any event be no less than three Business Days 

 

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prior to the effectiveness of the applicable Extension Amendment) of the amount of its Original Loans that it has elected to convert into Extended Loans.  In the event that the aggregate amount of the applicable Original Loans subject to Extension Elections exceeds the amount of the applicable Extended Loans requested pursuant to the Extension Request, the applicable Original Loans subject to such Extension Elections shall be converted to Extended Loans on a pro rata basis based on the amount of the applicable Original Loans included in each such Extension Election.

 

(c)   Subject to the requirements of this Section 2.23, so long as no Event of Default or Default has occurred and is continuing (after giving effect to any amendments and/or waivers that are or become effective on the date that such Extended Loans are established), Extended Loans may be established pursuant to a supplement (which shall set forth the effective date of such extension) to this Agreement (which, except to the extent otherwise expressly contemplated by this Section 2.23(c), shall require the consent only of the Lenders who elect to make the Extended Loans established thereby) in such form as approved from time to time by the Borrower and the Administrative Agent in the reasonable exercise of its discretion (each, an “Extension Amendment”) executed by the Loan Parties, the Administrative Agent and the Extending Lenders.  Any Extension Amendment may provide for additional terms (other than those referred to or contemplated in this Section 2.23 or in the form of the Extension Request or Extension Amendment (each, a “Section 2.23 Additional Agreement”)) to this Agreement and the other Loan Documents; provided that no such Section 2.23 Additional Agreement shall become effective prior to the time that such Section 2.23 Additional Agreement has been consented to by such of the Lenders, Loan Parties and other parties (if any) as would be required (including, without limitation, under the requirements of Section 9.08) if such Section 2.23 Additional Agreement were a separate and independent amendment of this Agreement.  In connection with any Extension Amendment, (i) if requested by the Administrative Agent, the Borrower shall deliver an opinion of counsel reasonably acceptable to the Administrative Agent as to any matters reasonably requested by the Administrative Agent and (ii) to the extent reasonably necessary to maintain the continuing priority of the Lien of the Mortgages on the Real Estate Collateral Properties as security for the Obligations, as determined by the Administrative Agent in its reasonable discretion, (x) the applicable Loan Party to any Mortgages shall have entered into, and delivered to the Administrative Agent, at the direction and in the sole discretion of the Administrative Agent a mortgage modification or new Mortgage in proper form for recording in the relevant jurisdiction and in a form reasonably satisfactory to the Administrative Agent, (y) the Borrower shall have caused to be delivered to the Administrative Agent for the benefit of the Lenders an endorsement to the title insurance policy, date down(s) or other evidence reasonably satisfactory to the Administrative Agent insuring that the priority of the Lien of such Mortgages as security for the Obligations has not changed and confirming and/or insuring that since the issuance of the title insurance policy there has been no change in the condition of title and there are no intervening liens or encumbrances that may then or thereafter take priority over the Lien of such Mortgages (other than Permitted Encumbrances) and (z) the Borrower shall have delivered, at the request of the Administrative Agent, to the Administrative Agent and/or all other relevant third parties all other items reasonably necessary to maintain the continuing priority of the Lien of such Mortgages as security for the Obligations.

 

(d)   The Lenders hereby irrevocably authorize the Administrative Agent to enter into technical amendments to this Agreement and the other Loan Documents with the applicable Loan Parties as may be necessary or advisable in order to effectuate the transactions contemplated by this Section 2.23.

 

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ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

To induce the Secured Parties to enter into this Agreement and to make Loans hereunder, each Loan Party represents and warrants to the Administrative Agent and the other Secured Parties that:

 

SECTION 3.01.  Existence, Qualification and Power.  Each Loan Party and each Restricted Subsidiary (a) is a corporation, limited liability company, trust, partnership or limited partnership, duly incorporated, organized or formed, validly existing and, where applicable, in good standing under the Laws of the jurisdiction of its incorporation, organization, or formation; (b) has all requisite power and authority and all requisite governmental licenses, permits, 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, where 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 (c), to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect.  Schedule 3.01 annexed hereto sets forth, as of the Closing Date, each Loan Party’s name as it appears in official filings, state of incorporation or organization, organization type, organization number, if any, issued by its state of incorporation or organization, and its federal employer identification number.

 

SECTION 3.02.  Authorization; No Contravention.  The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is a party (including the use of proceeds of the Loans on the Second Restatement Date to prepay in full the term loans outstanding under the First Restated Credit Agreement immediately prior to such date), have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of any of such Person’s Organization Documents; (ii) conflict with or result in any breach, termination, or contravention of, or constitute a default under or require any payment to be made under (x) any Material Contract or any Material Indebtedness to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (y) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject, in each case under this clause (ii), which has had or would reasonably be expected to have a Material Adverse Effect; (iii) result in or require the creation of any Lien upon any asset of any Loan Party or any guarantee by any Loan Party (other than Liens in favor of the Administrative Agent under the Security Documents and guarantees in favor of the Administrative Agent); (iv) violate any applicable Law where such violation has had or would reasonably be expected to have a Material Adverse Effect; (v) result in any “change of control” offer or similar offer being required to be made under any Material Indebtedness to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries; or (vi) result in the application of any of the consolidation, merger, conveyance, transfer or lease of assets (however so denominated) provisions of any Material Indebtedness to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries.

 

SECTION 3.03.  Governmental Authorization; Other Consents.  No approval, consent (including, the consent of equity holders or creditors of any Loan Party or Restricted Subsidiary), exemption, authorization, license or other action by, or notice to, or filing with, any Governmental Authority or regulatory body or any other Person is necessary or required for the grant of the security interest by such Loan Party or Restricted Subsidiary of the Collateral 

 

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pledged by it pursuant to the Security Documents or for the execution, delivery or performance by, or enforcement against, any Loan Party or Restricted Subsidiary of this Agreement or any other Loan Document, except for (a) the perfection or maintenance of the Liens created under the Security Documents (including the first priority (subject to the Intercreditor Agreement) nature thereof), (b) such consents which have been obtained or made prior to the Second Restatement Date and are in full force and effect and (c) such consents which are required for the exercise of remedies with respect to the ABL Priority Collateral, if any, under the terms of the Intercreditor Agreement or any other Loan Document.

 

SECTION 3.04.  Binding Effect.  This Agreement has been, and each other Loan Document, when delivered, 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 applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

SECTION 3.05.  Financial Statements; No Material Adverse Effect.

 

(a)   The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present the financial condition of the Borrower and its Subsidiaries (prior to giving effect to the Transactions) as of the date thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein.

 

(b)   [Reserved].

 

(c)   Since February 23, 2013, as of the Second Restatement Date, there has not occurred any Material Adverse Effect or any event, condition, change or effect that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  Since the end of the most recent period for which financial statements were required to be delivered pursuant to Sections 5.01(a) or 5.01(b), as applicable, as of each date of the making of representations and warranties under this Article III, there has been no event or circumstance, either individually or in the aggregate, that has had or would reasonably be expected to have a Material Adverse Effect.

 

(d)   To the best knowledge of the Borrower, no Internal Control Event exists or has occurred since the date of the Audited Financial Statements that has resulted in or would reasonably be expected to result in a misstatement in any material respect, in any financial information delivered or to be delivered to the Administrative Agent or the Lenders, of (i) the covenant compliance calculations provided hereunder or (ii) the assets, liabilities, financial condition or results of operations of the Borrower and its Subsidiaries on a Consolidated basis.

 

(e)   The Consolidated forecasted balance sheet and statements of income and cash flows of the Borrower and its Subsidiaries delivered pursuant to Section 5.01(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 (it being understood that projections by their nature are inherently uncertain and that, even though such forecasts are prepared in good faith on the basis of assumptions believed to be reasonable at the time such forecasts were prepared, the results reflected in such forecasts may not be achieved and actual results may differ and such differences may be material).

 

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(f)   The deal basis financial statements described in Section 4.01(n) of the Original Credit Agreement (the “Deal Basis Financial Statements”) have been prepared to reflect the historical financial information of the remaining operations of the Borrower and its Subsidiaries following the Transactions and exclude the financial information of NAI’s business operations sold to the Buyer, other than the assets and liabilities of NAI and its subsidiaries retained by the Borrower pursuant to the Acquisition Agreement.  The Deal Basis Financial Statements reflect periods during which the Borrower and its Subsidiaries operated as a consolidated entity inclusive of the operations of NAI and its subsidiaries, and accordingly, the presentation to exclude such operations has relied on assumptions and allocations to separate the operations of NAI and its subsidiaries, and are not necessarily indicative of the future operations or financial position of the Borrower and its Subsidiaries following the Transactions.  The Borrower believes the assumptions and allocations underlying the Deal Basis Financial Statements are reasonable and appropriate, but such assumptions and allocations are preliminary and based on estimates and are subject to change.

 

SECTION 3.06.  Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Loan Parties after due and diligent investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or any of its Subsidiaries or against any of its properties, rights or revenues that (a) purport to materially and adversely affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) except as specifically disclosed in Schedule 3.06, either individually or in the aggregate, if determined adversely, would reasonably be expected to have a Material Adverse Effect.  Since the Second Restatement Date, there has been no material adverse change in the status, or financial effect on any Loan Party or Restricted Subsidiary, of the matters described on Schedule 3.06.

 

SECTION 3.07.  No Default.  No Loan Party or Restricted Subsidiary is in default under or with respect to any Material Indebtedness.  No Event of Default (other than an Event of Default arising from the inaccuracy of the representation set forth in the second sentence of Section 3.15(a)) has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.  Neither the Borrower nor any of its Subsidiaries is a party to any agreement or instrument or subject to any corporate restriction that has had or would reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.08.  Ownership of Properties; Liens.

 

(a)   Each Loan Party and each Restricted Subsidiary has good and marketable title in fee simple to or valid leasehold interests in, all Real Estate necessary or used in the ordinary conduct of its business and each Loan Party and each Restricted Subsidiary has good title to, valid leasehold interests in, or valid licenses or service agreements for all personal property material to the ordinary conduct of its business, except, in each case, as does not have and would not reasonably be expected to have a Material Adverse Effect.  The property of each Loan Party and each Restricted Subsidiary is subject to no Liens other than Permitted Encumbrances.

 

(b)   Schedule 3.08(b) sets forth the street address, county and state of each site of land that is fee-owned by any Loan Party or Restricted Subsidiary as of November 30, 2013.  As of November 30, 2013, except as set forth on Schedule 3.08(b), no Responsible Officer for a Loan Party or Restricted Subsidiary has received any written notice of, or has any knowledge of, any pending or contemplated condemnation proceeding affecting any Real Estate Collateral Property or any sale or disposition thereof in lieu of condemnation.  To the best of the knowledge of any Responsible Officer, except as set forth on Schedule 3.08(b), no Loan Party or Restricted Subsidiary is obligated under any unrecorded right of first refusal, option or other contractual 

 

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right to sell, assign or otherwise dispose of any such Real Estate Collateral Property or any interest therein that would not constitute a Permitted Encumbrance.

 

(c)   Schedule 3.08(c) as of November 30, 2013 sets forth each lease that constitutes a Material Contract or a Ground Lease (pursuant to the Closing Date Collateral List) or a lease of any location where ABL Priority Collateral is located, in each case, to which any Loan Party or any Restricted Subsidiary is a party as tenant or subtenant, together with the street address, county and state of the property subject thereto, and the name and contact information of the lessor thereunder.  Each of such leases is in full force and effect, the Loan Parties and the Restricted Subsidiaries are not in default (beyond applicable cure periods) of the terms of any such leases, and each of the Loan Parties and the Restricted Subsidiaries enjoys peaceful and undisturbed possession under all such leases, except, in each case, as would not reasonably be expected to have a Material Adverse Effect.

 

(d)   Schedule 6.01 sets forth a complete and accurate list of all Liens on the property or assets of each Loan Party and each Restricted Subsidiary, other than Liens that would constitute Permitted Encumbrances under clauses (a) through (h) or clauses (j) through (u) of the definition thereof, showing as of the First Restatement Date the lienholder thereof and the property or assets of such Loan Party or Restricted Subsidiary subject thereto.

 

(e)   Schedule 6.02 sets forth a true and accurate copy of the investment policy of the Borrower and the Restricted Subsidiaries and a complete and accurate list of all Investments held by any Loan Party or any Restricted Subsidiary on the Second Restatement Date, other than Investments in Subsidiaries and Cash Equivalents, in each case in excess of $10,000,000.

 

(f)   Schedule 6.03 sets forth a complete and accurate list of all Indebtedness of each Loan Party (other than Indebtedness among the Loan Parties) or any Restricted Subsidiary on the First Restatement Date, in each case in excess of $10,000,000, showing as of the First Restatement Date the amount, obligor or issuer and maturity thereof and whether such Indebtedness is secured by a Lien; provided, that for Capital Leases, Schedule 6.03 sets forth only the aggregate amount of each type of Capital Lease.

 

SECTION 3.09.  Environmental Compliance.

 

(a)   Except as specifically disclosed in Schedule 3.09, no Loan Party or Restricted Subsidiary (i) has failed to comply in all material respects with applicable Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under applicable Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any material Environmental Liability or (iv) has a Responsible Officer with knowledge of any basis for any material Environmental Liability, except, in each case, as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(b)   Except as specifically disclosed in Schedule 3.09, (i) none of the properties currently or formerly owned or operated by any Loan Party or Restricted Subsidiary is or was listed or proposed for listing on the NPL or on the CERCLIS or any analogous state or local list at any time while such property was owned by such Loan Party or, to the knowledge of any Responsible Officer, at any time prior to or after such property was owned by such Loan Party, and, to the knowledge of any Responsible Officer, no property currently owned or operated by any Loan Party or Restricted Subsidiary is adjacent to any such property, in each case in connection with any matter for which any Loan Party or Restricted Subsidiary would have any 

 

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material Environmental Liability; (ii) there are no and never have been any underground or above-ground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned or operated by any Loan Party or Restricted Subsidiary in violation of any Environmental Laws or, to the best of the knowledge of any Responsible Officer, on any property formerly owned or operated by any Loan Party or Restricted Subsidiary; (iii) there is no friable asbestos or friable asbestos-containing material on any property currently owned or operated by any Loan Party or Restricted Subsidiary; (iv) Hazardous Materials have not been Released, discharged or disposed of on any property currently or formerly owned or operated by any Loan Party or Restricted Subsidiary in violation of any Environmental Laws; and (v) to the knowledge of any Responsible Officer, there are no pending or threatened Liens under or pursuant to any applicable Environmental Laws on any real property or other assets owned or leased by any Loan Party or Restricted Subsidiary, and to the best of the knowledge of any Responsible Officer, no actions by any Governmental Authority have been taken or are in process which would subject any of such properties or assets to such Liens, except, in the case of clauses (i) through (v) above, as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(c)   Except as specifically disclosed in Schedule 3.09, no Loan Party or Restricted Subsidiary is undertaking, and no Loan Party or Restricted Subsidiary has 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, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any Environmental Law that has or would reasonably be expected to have a Material Adverse Effect; and all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly owned or operated by any Loan Party or Restricted Subsidiary have been disposed of in a manner not reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

 

SECTION 3.10.  Insurance.  The properties of the Loan Parties and the Restricted Subsidiaries are insured with financially sound and reputable insurance companies (including any Insurance Captive) in such amounts (after giving effect to any self-insurance), with such deductibles and covering such risks (including, without limitation, workers’ compensation, public liability, business interruption and property damage insurance) as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Loan Party or Restricted Subsidiary operates.  Schedule 3.10 sets forth a description of all such insurance currently maintained (excluding title, group health and disability, and similar types of insurance) by or on behalf of the Loan Parties and the Restricted Subsidiaries as of November 30, 2013.  Each insurance policy listed on Schedule 3.10 is in full force and effect and all premiums in respect thereof that are due and payable have been paid.

 

SECTION 3.11.  Taxes.  The Loan Parties and the Restricted Subsidiaries have filed all Federal, state and other material tax returns and reports (collectively, the “Tax Returns”) required to be filed, and all such Tax Returns are true, correct and complete in all material respects, and have paid when due and payable (subject to any grace periods) all Federal, state and other material Taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings being diligently conducted, for which adequate reserves have been provided in accordance with GAAP, as to which Taxes no Lien has been filed and which contest effectively suspends the collection of the contested obligation and the enforcement of any Lien securing such obligation.  There is no proposed tax assessment 

 

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against any Loan Party or any Restricted Subsidiary that would, if made, have a Material Adverse Effect.  No Loan Party or Restricted Subsidiary is a party to any tax sharing agreement.

 

SECTION 3.12.  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 Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the best knowledge of the Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification.  Each Loan Party and each ERISA Affiliate has made all required contributions, including without limitation any such contributions required pursuant to the PBGC Agreement, to each Plan subject to Sections 302 or 303 of ERISA or Sections 412 or 430 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 302 of ERISA or Section 412 of the Code has been made with respect to any Plan.  No Lien imposed under the Code or ERISA exists or is likely to arise on account of any Plan.

 

(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 would 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 had or would reasonably be expected to have a Material Adverse Effect.

 

(c)   (i) No ERISA Event has occurred or is reasonably expected to occur that, together with all other ERISA Events that have occurred or are reasonably expected to occur, has had or would reasonably be expected to have a Material Adverse Effect; (ii) no Pension Plan has any Unfunded Pension Liability; except, that, based on the latest valuation of the SUPERVALU Inc. Retirement Plan and Shaw’s Supermarkets, Inc. Pension Plan for Union Employees and on the actuarial methods and assumptions employed for such valuation (determined in accordance with the assumptions used for funding such Pension Plan pursuant to Sections 412 or 430 of the Code or Sections 302 or 303 of ERISA), as of the Closing Date the aggregate current value of accumulated “benefit liabilities” of such Pension Plan under Section 4001(a)(16) of ERISA is in excess of the aggregate current value of the assets of such Pension Plan, but the scheduled payments with respect to such underfunding do not have, and would not reasonably be expected to have, a Material Adverse Effect and the Loan Parties have complied, and shall continue to comply, with the requirements of ERISA and the PBGC Agreement with respect to the funding of each of their Pension Plans; (iii) neither any Loan Party nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA and amounts payable under the PBGC Agreement) that, individually or in the aggregate, has or would reasonably be expected to have a Material Adverse Effect; (iv) neither any Loan Party nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan, that has had or would reasonably be expected to have a Material Adverse Effect; and (v) neither any Loan Party nor any ERISA Affiliate has engaged in a transaction that would be subject to Sections 4069 or 4212(c) of ERISA.

 

SECTION 3.13.  Subsidiaries; Equity Interests.  As of November 30, 2013, the Loan Parties have no Subsidiaries other than those specifically disclosed in Part (a) of Schedule 3.13, which Schedule sets forth the legal name, jurisdiction of incorporation or formation and the 

 

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percentage interest of such Loan Party therein.  The outstanding Equity Interests in such Subsidiaries described on Part (a) of Schedule 3.13 as owned by a Loan Party (or a Subsidiary of a Loan Party) have been validly issued, are fully paid and non-assessable and are owned by a Loan Party (or a Subsidiary of a Loan Party) free and clear of all Liens.  Except as set forth in Schedule 3.13, as of November 30, 2013, there are no outstanding rights to purchase any Equity Interests in any Restricted Subsidiary.  All of the outstanding Equity Interests in the Loan Parties have been validly issued, and are fully paid and non-assessable and, with respect to the Loan Parties and their Subsidiaries (other than the Borrower and Excluded Subsidiaries), are owned in the amounts specified on Part (c) of Schedule 3.13 free and clear of all Liens.  The copies of the Organization Documents of each Loan Party and each amendment thereto provided pursuant to Section 4.01 of the Original Credit Agreement are true and correct copies of each such document, each of which is valid and in full force and effect, except as disclosed on any officer’s certificate delivered to the Administrative Agent on the Second Restatement Date.

 

SECTION 3.14.  Margin Regulations; Investment Company Act.

 

(a)   No Loan Party or Restricted Subsidiary is engaged or will be engaged, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U), or extending credit for the purpose of purchasing or carrying margin stock.  None of the proceeds of the Loans shall be used directly or indirectly for the purpose of purchasing or carrying any margin stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any margin stock or for any other purpose that might cause any of the Loans to be considered a “purpose credit” within the meaning of Regulations T, U or X.

 

(b)   None of the Loan Parties or any Restricted Subsidiary is or is required to be registered as an “investment company” under the Investment Company Act of 1940.

 

SECTION 3.15.  Disclosure.  (a) Each Loan Party 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, would reasonably be expected to result in a Material Adverse Effect.  No report, financial statement, certificate or other information furnished (whether in writing or orally) 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 any other Loan Document or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) 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 Loan Parties represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time (based upon accounting principles consistent with the historical audited financial statements of the Borrower) and using due care in the preparation of such information, report, financial statement or certificate.

 

(b)           No material written report, financial statement, certificate or other information (other than projections and other than information that is accurately disclosed by the Borrower and is covered by one of the other representations set forth in this Article III or in the other Loan Documents) 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 any other Loan Document or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) that is customarily used by financing sources in making credit or underwriting decisions in transactions 

 

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of this type and that is relevant to the Term Facility 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.

 

SECTION 3.16.  Compliance with Laws.  Each of the Loan Parties and the Restricted Subsidiaries is 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 the failure to comply therewith, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.17.  Intellectual Property; Licenses, Etc.  The Loan Parties and the Restricted Subsidiaries own, or possess the right to use, all of the Intellectual Property, licenses, permits and other authorizations that are reasonably necessary for the operation of their respective businesses, without conflict with the rights of any other Person.  To the best of the knowledge of the Loan Parties, no slogan or other advertising device, product, process, method, substance, part or other material now employed, or now contemplated to be employed, by any Loan Party or Restricted Subsidiary infringes upon any rights held by any other Person.  Except as specifically disclosed in Schedule 3.17, no claim or litigation regarding any of the foregoing is pending or, to the best of the knowledge of the Loan Parties, threatened, which, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.18.  Labor Matters.  There are no strikes, lockouts, slowdowns or other material labor disputes against any Loan Party or any Restricted Subsidiary pending or, to the knowledge of any Loan Party, threatened.  The hours worked by and payments made to employees of the Loan Parties and the Restricted Subsidiaries have not been in violation of the Fair Labor Standards Act and any other applicable federal, state, local or foreign Law dealing with such matters in any material respect.  All payments due from any Loan Party or Restricted Subsidiary, or for which any claim may be made against any Loan Party or Restricted Subsidiary, on account of wages and employee health and welfare insurance and other benefits, have been paid or properly accrued in accordance with GAAP as a liability on the books of such Loan Party or Restricted Subsidiary. The Loan Parties and the Restricted Subsidiaries have disclosed, in accordance with all applicable Securities Laws, any collective bargaining agreement, management agreement, employment agreement, bonus, restricted stock, stock option, or stock appreciation plan or agreement, or any similar plan, agreement or arrangement required to be disclosed.  There are no complaints, unfair labor practice charges, grievances, arbitrations, unfair employment practices charges or any other claims or complaints against any Loan Party or Restricted Subsidiary pending or, to the knowledge of any Loan Party, threatened to be filed with any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the employment or termination of employment of any employee of any Loan Party or Restricted Subsidiary which has had or would reasonably be expected to have a Material Adverse Effect.  The consummation of the transactions contemplated by the Loan Documents will not give rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to which any Loan Party or Restricted Subsidiary is bound.

 

SECTION 3.19.  Security Documents.

 

(a)   The Security Agreement creates in favor of the Administrative Agent, for the benefit of the Secured Parties referred to therein, a legal, valid, continuing and enforceable security interest in the Collateral (as defined in the Security Agreement), the enforceability of which is subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

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(b)   The financing statements, releases and other filings are in appropriate form and have been or will be filed in the offices specified in Schedule II of the Security Agreement.  Upon such filings and/or the obtaining of “control” (as defined in the UCC) or possession, the Administrative Agent will have a perfected Lien on, and security interest in, to and under all right, title and interest of the Loan Parties in all Collateral that may be perfected by filing, recording or registering a financing statement or analogous document (including, without limitation, the proceeds of such Collateral subject to the limitations relating to such proceeds in the UCC) or by obtaining control or possession, under the UCC (in effect on the date this representation is made), prior and superior in right to any other Person, except for those Permitted Encumbrances that have priority in such Collateral by operation of law and except, as to the ABL Priority Collateral, for the Liens of the ABL Facility Agent to the extent provided in the Intercreditor Agreement.

 

(c)   When the Security Agreement (or a short form thereof) is filed in the United States Patent and Trademark Office and the United States Copyright Office and when financing statements, releases and other filings in appropriate form are filed in the offices specified in Schedule II of the Security Agreement, the Administrative Agent shall have a fully perfected Lien on, and security interest in, all right, title and interest of the applicable Loan Parties in the Intellectual Property (as defined in the Security Agreement) in which a security interest may be perfected by filing, recording or registering a security agreement, financing statement or analogous document in the United States Patent and Trademark Office or the United States Copyright Office, as applicable, in each case prior and superior in right to any other Person (it being understood that subsequent recordings in the United States Patent and Trademark Office and the United States Copyright Office may be necessary to perfect a Lien on registered trademarks, trademark applications and copyrights acquired by the Loan Parties after the Closing Date), except for those Permitted Encumbrances that have priority in such Collateral by operation of law.

 

(d)   Upon the execution and delivery of the Mortgage amendments and/or the Mortgages required by Section 5.25(a), the Mortgages will create in favor of the Administrative Agent, for the benefit of the Secured Parties referred to therein, a legal, valid, continuing and enforceable first-priority Lien on, and security interests in, the Real Estate Collateral Property described therein, subject to Permitted Encumbrances, the enforceability of which is subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.  Upon the filing or recording of the Mortgage amendments and/or the Mortgages required by Section 5.25(a) with the appropriate Governmental Authorities, the Administrative Agent will have a perfected Lien on, and security interest in, to and under all right, title and interest of the grantors thereunder in all Real Estate Collateral Property that may be perfected by such filing (including, without limitation, the proceeds of such Real Estate Collateral Property), in each case prior and superior in right to any other Person, except for those Permitted Encumbrances that have priority in such Collateral by operation of law and except, as to the ABL Priority Collateral, for the Liens of the ABL Facility Agent to the extent provided in the Intercreditor Agreement.

 

SECTION 3.20.  Solvency.

 

(a)   After giving effect to the Transactions to occur on the Second Restatement Date (and after giving effect to the application of proceeds of the Loans funded on such date), the Loan Parties, on a consolidated basis, are Solvent.

 

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(b)   No transfer of property has been or will be made by any Loan Party and no obligation has been or will be incurred by any Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of any Loan Party.

 

SECTION 3.21.  Deposit Accounts; Credit Card Arrangements.

 

(a)   Annexed hereto as Schedule 3.21(a) is a list of all DDAs (and including Blocked Accounts) maintained by the Loan Parties as of November 30, 2013, which Schedule includes, with respect to each DDA (i) the name and address of the depository; (ii) the purpose of such DDA and (iii) the identification of the Blocked Account Bank to which funds from such DDA are sent.

 

(b)   Annexed hereto as Schedule 3.21(b) is a list describing all arrangements as of the Second Restatement Date to which any Loan Party is a party with respect to the processing and/or payment to such Loan Party of the proceeds of any credit card charges and debit card charges for sales made by such Loan Party.

 

SECTION 3.22.  Brokers.  No broker or finder brought about the obtaining, making or closing of the Loans or transactions contemplated by the Loan Documents, and no Loan Party, Restricted Subsidiary or Affiliate thereof has any obligation to any Person in respect of any finder’s or brokerage fees in connection therewith.

 

SECTION 3.23.  Trade Relations.  There exists no actual or, to the knowledge of any Loan Party, threatened, termination or cancellation of, or any material adverse modification or change in the business relationship of any Loan Party with any supplier material to its operations.

 

SECTION 3.24.  Material Contracts.  The Loan Parties and the Restricted Subsidiaries have disclosed, in accordance with all applicable Securities Laws, all Material Contracts.  No Loan Party is in breach or in default in any material respect of or under any Material Contract and has not received any notice of the intention of any other party thereto to terminate any Material Contract, in each case, that has had or would reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.25.  Casualty.  Neither the businesses nor the properties of any Loan Party or Restricted Subsidiary 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) that has had or would reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.26.  Payable Practices.  No Loan Party has made any material change in the historical accounts payable practices from those in effect immediately prior to the Second Restatement Date that has had or would reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.27.  Notices from Farm Products Sellers, Etc.

 

(a)   Except as set forth on Schedule 3.27, no Loan Party has, within the one-year period prior to the Second Restatement Date, received any written notice pursuant to the applicable provisions of the PSA, the PACA, the Food Security Act, the UCC or any other applicable local laws from (i) any Farm Products Seller or (ii) any lender to any Farm Products Seller or any other Person with a security interest in the assets of any Farm Products Seller or (iii) the Secretary of State (or equivalent official) or other Governmental Authority of any State, Commonwealth or political subdivision thereof in which any Farm Products purchased by such Loan Party are produced, in any case advising or notifying such Loan Party of the intention of such Farm

 

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Products Seller or other Person to preserve the benefits of any trust applicable to any assets of the Borrower established in favor of such Farm Products Seller or other Person under the provisions of any law or claiming a Lien upon or other claim or encumbrance with respect to any perishable agricultural commodity or any other Farm Products which may be or have been purchased by a Loan Party or any related or other assets of such Loan Party (all of the foregoing, together with any such notices as any Loan Party may at any time hereafter receive, collectively, the “Food Security Act Notices”), if (A) any such notice involves a claim of $50,000 or more or (B) all such notices outstanding involve claims in the aggregate amount of $250,000 or more.

 

(b)   No Loan Party is a “live poultry dealer” (as such term is defined in the PSA) or otherwise purchases or deals in live poultry of any type whatsoever.  The Loan Parties do not purchase livestock pursuant to cash sales as such term is defined in the PSA.  Each Loan Party is not engaged in, and shall not engage in, raising, cultivating, propagating, fattening, grazing or any other farming, livestock or aquacultural operations.

 

SECTION 3.28.  HIPAA Compliance.

 

(a)   To the extent that and for so long as any Loan Party is a “covered entity” within the meaning of HIPAA, such Loan Party (i) has undertaken or will promptly undertake all appropriate surveys, audits, inventories, reviews, analyses and/or assessments (including any necessary risk assessments) of all areas of its business and operations required by HIPAA; (ii) has developed or will promptly develop an appropriate plan and time line for becoming HIPAA Compliant (a “HIPAA Compliance Plan”); and (iii) has implemented or will implement those provisions of such HIPAA Compliance Plan in all material respects necessary to ensure that such Loan Party is or becomes HIPAA Compliant.

 

(b)   For purposes hereof, “HIPAA Compliant” shall mean that a Loan Party or Restricted Subsidiary (i) is or will be in compliance in all material respects with each of the applicable requirements of the so-called “Administrative Simplification” provisions of HIPAA on and as of each date that any part thereof, or any final rule or regulation thereunder, becomes effective in accordance with its or their terms, as the case may be (each such date, a “HIPAA Compliance Date”) and (ii) is not and would not reasonably be expected to become, as of any date following any such HIPAA Compliance Date, the subject of any civil or criminal penalty, process, claim, action or proceeding, or any administrative or other regulatory review, survey, process or proceeding (other than routine or mandated surveys or reviews conducted by any Governmental Authority, government health plan or other accreditation entity) that has had or would reasonably be expected to have a Material Adverse Effect.

 

(c)   Each Loan Party has entered into a business associate agreement with any third party acting on behalf of the Loan Party as a business associate as defined in 45 C.F.R. §160.103, where the failure to enter into such a business associate agreement has had or would reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.29.  Compliance with Health Care Laws.  Without limiting the generality of Sections 3.16 or 3.28 or any other representation or warranty made herein or in any of the other Loan Documents:

 

(a)   Each Loan Party is in compliance in all material respects with all applicable Health Care Laws, including all Medicare and Medicaid program rules and regulations applicable to them.  Without limiting the generality of the foregoing, no Loan Party has received notice by a Governmental Authority of any violation of any provisions of the Medicare and Medicaid Anti-Fraud and Abuse or Anti-Kickback Amendments of the Social Security Act (presently codified in 

 

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Section 1128(B)(b) of the Social Security Act) or the Medicare and Medicaid Patient and Program Protection Act of 1987.

 

(b)   Each Loan Party has maintained in all material respects all records required to be maintained by the Food and Drug Administration, Drug Enforcement Agency and State Boards of Pharmacy and the Federal and State Medicare and Medicaid programs and as otherwise required by applicable Health Care Laws, and each Loan Party has all necessary permits, licenses, franchises, certificates and other approvals or authorizations of Governmental Authority as are required under applicable Health Care Laws.

 

(c)   Each Loan Party and each Restricted Subsidiary who is a Certified Medicare Provider or Certified Medicaid Provider has in a timely manner filed all requisite cost reports, claims and other reports required to be filed in connection with all Medicare and Medicaid programs due on or before the Closing Date, all of which are complete and correct in all material respects.  There are no known claims, actions or appeals pending before any Third Party Payor or Governmental Authority, including any Fiscal Intermediary, the Provider Reimbursement Review Board or the Administrator of the Centers for Medicare and Medicaid Services, with respect to any Medicare or Medicaid cost reports or claims filed by any Loan Party or Restricted Subsidiary on or before the Closing Date.  There currently exist no restrictions, deficiencies, required plans of correction actions or other such remedial measures with respect to Federal and State Medicare and Medicaid certifications or licensure.

 

SECTION 3.30.  Sanctioned Persons.  No Loan Party or Restricted Subsidiary, nor to the knowledge of the Borrower, any director, officer, agent, employee or Affiliate of any Loan Party or Restricted Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Borrower will not directly or indirectly use the proceeds of the Loans or otherwise make available such proceeds to any Person for the purpose of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC.

 

SECTION 3.31.  Anti-Terrorism; Foreign Corrupt Practices Act.  To the extent applicable, each of the Loan Parties and the Restricted Subsidiaries is in compliance in all material respects with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (ii) the USA PATRIOT Act.  No part of the proceeds of the Loans will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977 (the “FCPA”).

 

ARTICLE IV

 

CONDITIONS OF LENDING

 

The obligations of the Lenders to make the Loans hereunder on the Second Restatement Date are subject to the satisfaction of the following conditions:

 

SECTION 4.01.  Conditions to Effectiveness.  On the Second Restatement Date:

 

(a)   The Administrative Agent shall have received a counterpart of the Second Amendment Agreement, executed and delivered by a duly authorized officer of the Borrower, the other Loan Parties, each of the Lenders, the Administrative Agent and the Collateral Agent.

 

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(b)   The Administrative Agent shall have received a notice of such Borrowing as required by Section 2.03 (or such notice shall have been deemed given in accordance with Section 2.02).

 

(c)   The representations and warranties set forth in Article III and in each other Loan Document shall be true and correct without giving effect to any materiality or Material Adverse Effect qualifications therein (except for such failures to be so true and correct as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect), on and as of the Second Restatement Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct without giving effect to any materiality or Material Adverse Effect qualifications therein (except for such failures to be so true and correct as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect), on and as of such earlier date.

 

(d)   The Administrative Agent shall have received, on behalf of itself and the Lenders, (i) a favorable written opinion of Dorsey & Whitney LLP, counsel for the Borrower, in form and substance reasonably satisfactory to the Administrative Agent and (ii) a favorable written opinion of local counsel in those jurisdictions of organization of Loan Parties reasonably requested by the Administrative Agent (or, to the extent agreed by the Administrative Agent with respect to particular jurisdictions, a favorable written opinion of the Executive Vice President and General Counsel of the Borrower), in each case (A) dated the Second Restatement Date, (B) addressed to the Administrative Agent, the Collateral Agent and the Lenders and (C) covering such other matters relating to the Loan Documents as the Administrative Agent shall reasonably request, and the Borrower hereby requests such counsel to deliver such opinions.

 

(e)   The Administrative Agent shall have received a certificate of the Secretary or the Assistant Secretary (or other Responsible Officer acceptable to the Administrative Agent) of each Loan Party dated the Second Restatement Date and certifying (A) that attached thereto is a true and complete copy of the resolutions duly adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and performance of the Second Amendment Agreement and the borrowings and other transactions contemplated by the Second Amendment Agreement and this Agreement, and that such resolutions have not been modified, rescinded or amended and are in full force and effect and (B) except as indicated therein, that the certificate or articles of incorporation, the bylaws or other organizational documents and the incumbency and specimen signatures of the authorized officers of such Loan Party previously delivered on the Closing Date have not been amended or changed since the Closing Date, in each case, other than those changes attached to the certificate.

 

(f)   The Administrative Agent shall have received a certificate, dated the Second Restatement Date and signed by a Responsible Officer of the Borrower, confirming compliance with the conditions precedent set forth in Sections 4.01(c) and (l).

 

(g)   All fees and other amounts required to be paid on the Second Restatement Date pursuant to the Engagement Letter and reasonable and documented out-of-pocket expenses required to be paid on the Second Restatement Date pursuant to the Engagement Letter (in the case of out-of-pocket expenses, to the extent invoiced at least two business 

 

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days prior to the Second Restatement Date), shall have been paid (which amounts may be offset against the proceeds of the Loans).

 

(h)   The Administrative Agent shall have received a certificate from the chief financial officer of the Borrower in form reasonably satisfactory to the Administrative Agent certifying that the Borrower and its Subsidiaries, on a Consolidated basis after giving effect to the Transactions are Solvent.

 

(i)   The Administrative Agent shall have received, at least three Business Days prior to the Second Restatement Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, that has been reasonably requested by the Lenders at least ten days prior to the Second Restatement Date.

 

(j)   The Borrower shall have made arrangements reasonably acceptable to the Administrative Agent for the application of the aggregate proceeds of the Loans funded on the Second Restatement Date to prepay in full the principal amount of all term loans outstanding under the First Restated Credit Agreement and to pay related fees and expenses.  The Borrower shall have, concurrently with making of the Loans, (a) paid all accrued and unpaid interest on the aggregate principal amount of the term loans outstanding under the First Restated Credit Agreement and all amounts, if any, due under Section 2.16 of the First Restated Credit Agreement in respect of any term loans under the First Restated Credit Agreement so prepaid and (b) paid to all Lenders (under and as defined in the First Restated Credit Agreement in effect prior to the effectiveness of this Agreement), all indemnities, cost reimbursements and other obligations, if any, then due and owing to such term lenders under the Loan Documents (as defined under the First Restated Credit Agreement and in effect prior to the effectiveness of this Agreement) and of which the Borrower has been notified at least two Business Days prior to the Second Restatement Date.

 

(k)   The Collateral Agent shall have received the results of judgment searches and a search of the UCC filings (or equivalent filings) made with respect to the Loan Parties in the states (or other jurisdictions) of formation of such Persons, in which the chief executive office of each such Person is located and in the other jurisdictions in which such Persons maintain property, together with copies of the financing statements (or similar documents) disclosed by such search, and accompanied by evidence satisfactory to the Collateral Agent that the Liens indicated in any such financing statement (or similar document) would be permitted under Section 6.01 or have been or will be contemporaneously released or terminated.

 

(l)   At the time of and immediately after such the Borrowing on the Second Restatement Date, no Default or Event of Default shall have occurred and be continuing.

 

ARTICLE V

 

AFFIRMATIVE COVENANTS

 

The Loan Parties covenant and agree with each Lender that so long as this Agreement shall remain in effect and until the Commitments have been terminated and the principal of and interest on each Loan, all Fees and all other expenses or amounts payable under any Loan Document shall 

 

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have been paid in full (other than contingent indemnification obligations not then due and payable), unless the Required Lenders shall otherwise consent in writing, the Loan Parties will, and will, to the extent provided below, cause each of the Restricted Subsidiaries to:

 

SECTION 5.01.  Financial Statements.  Deliver to the Administrative Agent, in form and detail satisfactory to the Administrative Agent (for distribution to each Lender):

 

(a)   as soon as available, but in any event within 90 days after the end of each Fiscal Year, a Consolidated balance sheet of the Borrower as at the end of such Fiscal Year, and the related Consolidated statements of income or operations, 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, such Consolidated statements to be audited and accompanied by (i) a report and opinion of a Registered Public Accounting Firm of nationally recognized standing reasonably acceptable to the Administrative Agent, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit to the effect that such Consolidated financial statements fairly present the financial condition and results of operations of the Borrower and its Subsidiaries on a Consolidated and consolidating basis in accordance with GAAP consistently applied, together with a customary “management discussion and analysis” provision and (ii) an opinion of such Registered Public Accounting Firm independently assessing the Loan Parties’ internal controls over financial reporting in accordance with Item 308 of SEC Regulation S-K, PCAOB Auditing Standard No. 2 and Section 404 of Sarbanes-Oxley expressing a conclusion that contains no statement that there is a material weakness in such internal controls, except for such material weaknesses as to which the Required Lenders do not object;

 

(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, a Consolidated balance sheet of the Borrower as at the end of such Fiscal Quarter, and the related Consolidated statements of income or operations and cash flows for such Fiscal Quarter and for the portion of the Fiscal Year then ended, setting forth in each case in comparative form the figures for (i) the corresponding Fiscal Quarter of the previous Fiscal Year and (ii) the corresponding portion of the previous Fiscal Year, all in reasonable detail, such Consolidated statements to be certified by a Responsible Officer of the Borrower as fairly presenting the financial condition, results of operations and cash flows of the Borrower as of the end of such Fiscal Quarter in accordance with GAAP consistently applied, subject to normal year-end audit adjustments, together with a customary “management discussion and analysis” provision, subject only to normal year-end audit adjustments and the absence of footnotes;

 

(c)   as soon as available, but in any event no more than 45 days after the end of each Fiscal Year, forecasts prepared by management of the Borrower, in form satisfactory to the Administrative Agent, of Consolidated balance sheets and statements of income or operations, cash flows and availability of the Borrower and its Subsidiaries on a Consolidated basis using Fiscal Periods for the immediately following Fiscal Year (including the Fiscal Year in which the Maturity Date occurs), and as soon as available, any significant revisions to such forecasts with respect to such Fiscal Year; and

 

(d)   the Borrower hereby acknowledges and agrees that all financial statements and certificates furnished pursuant to Sections 5.01(a) and 5.01(b) are hereby deemed to be Borrower Materials suitable for distribution, and to be made available, to Public Lenders as contemplated by Section 9.01(d) and may be treated by the Administrative Agent and the Lenders as if the same had been marked “PUBLIC” in accordance with such paragraph.

 

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SECTION 5.02.  Certificates; Other Information.

 

(a)   Deliver to the Administrative Agent and, upon the Administrative Agent’s request, each Lender, in form and detail satisfactory to the Administrative Agent:

 

(i) concurrently with the delivery of the financial statements referred to in Sections 5.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible Officer of the Borrower, and in the event of any change in GAAP used in the preparation of such financial statements, the Borrower shall also provide a statement of reconciliation conforming such financial statements to GAAP and a copy of management’s discussion and analysis with respect to such financial statements;

 

(ii) [Reserved];

 

(iii) 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 Loan Parties, and copies of all annual, regular, periodic and special reports and registration statements which any Loan Party may file or be required to file with the SEC under Sections 13 or 15(d) of the Securities Exchange Act of 1934 or with any national securities exchange, and in any case not otherwise required to be delivered to the Administrative Agent pursuant hereto;

 

(iv) the financial and collateral reports described on Schedule 5.02 hereto, at the times set forth in such Schedule;

 

(v) as soon as available, but in any event within 30 days after the end of each Fiscal Year, and as more frequently as may be reasonably requested by the Administrative Agent, (A) 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 may reasonably specify and (B) a report summarizing collective bargaining agreements then in effect (specifying parties, expiration dates, number of employees covered and locations) and containing such additional information as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably specify;

 

(vi) promptly after the Administrative Agent’s request therefor, copies of all Material Contracts (but only to the extent not then publicly available from the SEC) and documents evidencing Material Indebtedness;

 

(vii) promptly after the Administrative Agent’s request therefor, a list of any “business associate agreements” (as such term is defined in HIPAA) that any Loan Party is a party to or bound by that is accurate in all material respects as of the date set forth therein and a copy of any standard form of such agreement used by any Loan Party;

 

(viii) 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 any Governmental Authority (including, without limitation, the SEC (or comparable agency in any applicable non-U.S. jurisdiction)) concerning any proceeding with, or investigation or possible investigation or other inquiry by such Governmental Authority regarding financial or other operational results 

 

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of any Loan Party or any Subsidiary thereof or any other matter which, if adversely determined, would reasonably be expected to have a Material Adverse Effect;

 

(ix) if requested by the Administrative Agent, promptly, and in any event within five Business Days after such request, provide to the Administrative Agent the name(s) used on each tax return filed by the Borrower or any of its Subsidiaries, together with a copy of the portion of the tax return that shows such name(s);

 

(x) promptly after the receipt thereof by the Borrower or any of its Subsidiaries, a copy of any “management letter” received by any such Person from its certified public accountants and the management’s response thereto;

 

(xi) promptly after the request by any Lender, all documentation and other information that such Lender reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act; and

 

(xii) promptly, such additional information regarding the business affairs, financial condition or operations of any Loan Party or any Subsidiary, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender may from time to time reasonably request.

 

(b)   Documents required to be delivered pursuant to Sections 5.01(a), 5.01(b) or 5.02(a)(iv) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (1) specified in Section 9.01 with respect to e-mail communications, (2) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the website address listed on Schedule 9.01(a); or (3) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided, that (x) the Borrower shall notify the Administrative Agent and each Lender (by telecopier or e-mail) of the posting of any such documents and (y) if for any reason the Administrative Agent is unable to obtain electronic versions of the documents posted, promptly upon the Administrative Agent’s request provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Notwithstanding anything contained herein, except as the Administrative Agent may specify otherwise at any time and from time to time, in every instance the Borrower shall be required to provide paper copies of the Compliance Certificate required by Section 5.02(a)(i) to the Administrative Agent.  The Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Loan Parties with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

 

SECTION 5.03.  Notices.  Promptly notify the Administrative Agent of:

 

(a)   the occurrence of any Default or Event of Default, specifying the nature and extent thereof and the corrective action (if any) taken or proposed to be taken with respect thereto;

 

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(b)   any matter that has resulted or would reasonably be expected to result in a Material Adverse Effect, such as (i) any breach or non-performance of, or any default under, a Material Contract or with respect to Material Indebtedness of any Loan Party or any Restricted Subsidiary; (ii) any dispute, litigation, investigation, proceeding or suspension between any Loan Party or any Restricted Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting any Loan Party or any Restricted Subsidiary, including pursuant to any applicable Environmental Laws;

 

(c)   the occurrence of any event, including any violation of Environmental Law, Release of Hazardous Materials, acquisition of any stock, assets or property, or the receipt of notice, claim, demand, action or suit pertaining to any of the foregoing, that, in each case, would reasonably be expected to result in Environmental Liabilities in excess of $25,000,000;

 

(d)   the occurrence of any ERISA Event that itself, or together with any other ERISA Events that have occurred, has had or would reasonably be expected to have a Material Adverse Effect;

 

(e)   any material change in accounting policies or financial reporting practices by any Loan Party or any Subsidiary thereof;

 

(f)   any change in any Loan Party’s chief executive officer, chief financial officer, chief operating officer or treasurer;

 

(g)   the discharge by any Loan Party of its present Registered Public Accounting Firm or any withdrawal or resignation by such Registered Public Accounting Firm;

 

(h)   the filing of any Lien for unpaid taxes exceeding $15,000,000 in the aggregate against the Loan Parties;

 

(i)   any casualty or other insured damage to any material portion of the Collateral or the commencement of any action or proceeding for the taking of any interest in a material portion of the Collateral under power of eminent domain or by condemnation or similar proceeding or if any material portion of the Collateral is damaged or destroyed;

 

(j)   the receipt of any notice from a supplier, seller or agent pursuant to either the PACA or the PSA, if (A) any such notice involves a claim of $50,000 or more or (B) all such notices outstanding involve claims in the aggregate amount of $250,000 or more;

 

(k)   any transaction of the nature contained in Article VI hereof, occurring after the Closing Date, consisting of: (i) the entry by a Loan Party into a Material Contract, (ii) the incurrence by a Loan Party of Material Indebtedness (or in the case of Indebtedness of less than $50,000,000 but greater than $25,000,000, notify the Administrative Agent at the same time as the next Compliance Certificate to be delivered to the Administrative Agent), (iii) the voluntary or involuntary grant of any Lien other than a Permitted Encumbrance upon any property of a Loan Party; or (iv) the making of any Permitted Investments by a Loan Party in excess of $50,000,000 (or in the case of any Permitted Investment less than $50,000,000 but greater than $25,000,000, notify the Administrative Agent at the same time as the next Compliance Certificate to be delivered to the Administrative Agent); and (v) mergers or acquisitions permitted under Section 6.04;

 

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(l)   any failure by the Loan Parties to pay rent at (i) 5.00% or more of the Loan Parties’ locations in the aggregate or (ii) any of such Loan Party’s locations if such failure continues for more than 10 days following the day on which such rent first came due and such failure has had or would reasonably be expected to have a Material Adverse Effect;

 

(m)   any change in the Borrower’s corporate rating by S&P, in the Borrower’s corporate family rating by Moody’s or in the ratings of the Term Facility by S&P or Moody’s, or any notice from either such agency indicating its intent to effect such a change or to place the Borrower or the Term Facility on a “CreditWatch” or “WatchList” or any similar list, in each case with negative implications, or its cessation of, or its intent to cease, rating the Borrower or the Term Facility; and

 

(n)   (i) any claim being asserted for payment under the ASC Guarantee, (ii) any payment being made from the Initial Escrow Amount Subaccount (as defined in the Escrow Agreement) other than to retire principal obligations on the ASC Notes, or from the Additional Escrow Amount Subaccount (as defined in the Escrow Agreement) to pay amounts other than interest on the ASC Notes, (iii) any claim for payment being made from either subaccount of the Escrow Account (as defined in the Escrow Agreement) and such claim not being honored by the Escrow Agent (as defined in the Escrow Agreement) or (iv) any claim being asserted for payment under the Borrower’s guarantee of NAI Workers’ Compensation Liabilities.

 

Each notice pursuant to this Section 5.03 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 5.03(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached.

 

SECTION 5.04.  Payment of Obligations.  Pay and discharge as the same shall become due and payable, all its obligations and liabilities, including (a) all Taxes, assessments and governmental charges or levies upon it or its properties, assets, income or profits before the same shall have become delinquent or in default, (b) all lawful claims (including claims of landlords, warehousemen, freight forwarders and carriers, and all claims for labor materials and supplies or otherwise) which, if unpaid, would by law become a Lien upon its property; and (c) all Indebtedness, as and when due and payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness, except, in each case under clauses (a), (b) or (c), where (i) and to the extent, the validity or amount thereof is being contested in good faith by appropriate proceedings, (ii) such Loan Party has set aside on its books adequate reserves with respect thereto in accordance with GAAP, (iii) such contest effectively suspends collection of the contested obligation and enforcement of any Lien securing such obligation, (iv) in the case of any Real Estate Collateral Property subject to a Mortgage, there is no present risk of forfeiture or such Real Estate Collateral Property and (v) the failure to make payment pending such contest would not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 5.05.  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 or formation except in a transaction permitted by Section 6.05; (b) take all necessary action to maintain and keep in full force and effect all rights, privileges, permits, licenses and franchises material to the normal conduct of its business; and (c) preserve or renew all of its Intellectual Property, except to the extent such Intellectual Property (i) is no longer used or useful in the business of any Loan Party or Restricted Subsidiary and (ii) is not otherwise material to the business of any Loan Party or Restricted Subsidiary in any respect.

 

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SECTION 5.06.  Maintenance of Properties.  (a) Maintain, preserve and protect all of its material properties and Equipment material to the operation of its business in good working order and condition, ordinary wear and tear excepted; and (b) make all repairs thereto and renewals, improvements, additions and replacements thereof necessary in order that the business carried on in connection therewith may be properly conducted at all times.

 

SECTION 5.07.  Maintenance of Insurance.

 

(a)   Maintain with financially sound and reputable insurance companies reasonably acceptable to the Administrative Agent and not Affiliates of the Loan Parties (except to the extent that the Insurance Captives are Affiliates of the Loan Parties), 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 and operating in the same or similar locations and as is otherwise required by applicable Law, of such types and in such amounts (after giving effect to any self-insurance compatible with the following standards) as are customarily carried under similar circumstances by such other Persons and as are reasonably acceptable to the Administrative Agent, including coverage for business interruption and public liability insurance against claims for personal injury or death or property damage occurring upon, in, about or in connection with the use of any properties owned, occupied or controlled by it.

 

(b)   Cause fire and extended coverage policies maintained with respect to any Collateral and business interruption coverage to provide (by endorsement or otherwise):

 

(i)   a non-contributing mortgage clause (regarding improvements to real property);

 

(ii)   that none of the Loan Parties, Secured Parties or any other Person (other than an Insurance Captive) shall be a co-insurer;

 

(iii)   a customary lender’s loss payable clause, in form and substance reasonably satisfactory to the Administrative Agent, which shall provide that the insurance carrier shall pay all proceeds otherwise payable to the Loan Parties under the policies to the Administrative Agent as its interests may appear (it being understood that there will be a separate lender’s loss payable clause for the benefit of the ABL Facility Agent as its interests may appear, and that the rights of Administrative Agent and ABL Facility Agent will be subject to the Intercreditor Agreement);

 

(iv)   that neither the Loan Parties, the Administrative Agent nor any other Person (other than an Insurance Captive) shall be a co-insurer thereunder;

 

(v)   a “Replacement Cost Endorsement”, without any deduction for depreciation; and

 

(vi)   such other provisions as the Administrative Agent may reasonably require from time to time to protect its and the Lenders’ interests.

 

(c)   Cause commercial general liability policies to provide coverage to the Administrative Agent as an additional insured.

 

(d)   (i) Cause each policy of insurance required by this Section 5.07 to also provide that it shall not be canceled by reason of nonpayment of premium except upon not less than ten (10) days’ prior written notice thereof by the insurer to the Administrative Agent or for any other reason except upon not less than thirty (30) days’ prior written notice thereof by the insurer to the Administrative Agent, except, in each case, in the case of force majeure, (ii) notify the 

 

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Administrative Agent promptly (and in any event within five (5) Business Days) whenever it receives a notice from the insurance carrier that any policy required by this Section 5.07 will be canceled for any reason and (iii) use reasonable efforts to include in such clause that the insurance carrier will provide prior written notice to the loss payee of any modification to the policy so as to reduce the scope or amount of coverage in any material respect and otherwise notify the Administrative Agent on or about the date that any policy required by this Section 5.07 is modified so as to reduce the scope or amount of coverage in any material respect.

 

(e)   Deliver to the Administrative Agent, on or about the date of cancellation or non-renewal of any policy of insurance required by this Section 5.07, a certificate of insurance for the replacement policy; and deliver to the Administrative Agent, on or about the date of the renewal of any policy of insurance required by this Section 5.07, a certificate evidencing renewal of each such policy.

 

(f)   Maintain for themselves and their Subsidiaries, a Directors and Officers insurance policy, and a “Blanket Crime” policy, the “Blanket Crime” policy including employee dishonesty, forgery or alteration, theft, disappearance and destruction, robbery and safe burglary, and computer fraud coverage, placed with responsible companies and otherwise as customarily insured against by Persons engaged in the same or similar business and operating in the same or similar locations and as is otherwise required by applicable Law, of such types and in such amounts (after giving effect to any self-insurance compatible with the following standards) as are customarily carried under similar circumstances by such other Persons, and will upon request by the Administrative Agent furnish the Administrative Agent certificates evidencing renewal of each such policy.

 

(g)   Permit, upon the reasonable request of the Administrative Agent, any representatives that are designated by the Administrative Agent to inspect the insurance policies maintained by or on behalf of the Loan Parties and to inspect books and records related thereto and any properties covered thereby at any reasonable time during business hours.

 

(h)   Deliver to the Administrative Agent, upon the Administrative Agent’s reasonable request therefor, (A) copies and updated certificates of insurance for the insurance policies required by this Section 5.07 and the applicable provisions of the Security Documents, and (B) duplicate originals or certified copies of all such policies covering any Collateral.

 

(i)   If at any time the area in which any Real Estate Collateral Property subject to a Mortgage is located is designated (i) in a federally designated “special flood hazard area,” flood hazard insurance in an amount equal to the maximum amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended to comply with current regulations required or (ii)  in “seismic zone” 3 or 4 (as defined in the Uniform Building Code 1997 map published by the International Conference of Building Officials), obtain earthquake insurance in such total amount as is customarily carried under similar circumstances by Persons engaged in the same or similar business and operating in the same or similar locations, and as is otherwise required by applicable Law, and as is reasonably acceptable to the Administrative Agent.

 

(j)   With respect to any Real Estate Collateral Property, carry and maintain commercial general liability insurance on an occurrence basis covering bodily injury including death, and property damage liability in such amounts (after giving effect to any self-insurance compatible with the following standards) as is customarily carried under similar circumstances by Persons 

 

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engaged in the same or similar business and operating in the same or similar locations or as required by applicable Law, and as is reasonably acceptable to the Administrative Agent, naming the Administrative Agent as an additional insured.

 

(k)   (i) Notify the Administrative Agent promptly whenever any separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this Section 5.07 is taken out by any Loan Party, and (ii) deliver to the Administrative Agent a certificate of insurance for such policy or policies within thirty (30) days of such policy or policies (or, at the reasonable request of the Administrative Agent, duplicate originals thereof) being taken out by any Loan Party.

 

(l)   The insurance companies providing the insurance required to be maintained under this Section 5.07 shall have no rights of subrogation against any Secured Party or its agents or employees.  If, however, the insurance policies do not provide waiver of subrogation rights against such parties, as required above, then the Loan Parties hereby agree, to the extent permitted by law, to waive their right of recovery, if any, against the Secured Parties and their agents and employees to the extent payment for such loss or damage is actually made by the insurance companies issuing the insurance policies required to be maintained under this Section 5.07.  The designation of any form, type or amount of insurance coverage by any Secured Party under this Section 5.07 shall in no event be deemed a representation, warranty or advice by such Secured Party that such insurance is adequate for the purposes of the business of the Loan Parties or the protection of their properties.

 

SECTION 5.08.  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 the failure to comply therewith would not reasonably be expected to have a Material Adverse Effect.

 

SECTION 5.09.  Books and Records; Accountants; Maintenance of Ratings.

 

(a)   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 Loan Parties or such Subsidiary, as the case may be; and maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction over the Loan Parties or such Subsidiary, as the case may be.

 

(b)   At all times retain a Registered Public Accounting Firm which is reasonably satisfactory to the Administrative Agent and shall instruct such Registered Public Accounting Firm to cooperate with, and be available to, the Administrative Agent or its representatives to discuss, with a representative of the Borrower present, the Loan Parties’ financial performance, financial condition, operating results, controls, and such other matters, within the scope of the retention of such Registered Public Accounting Firm, as may be raised by the Administrative Agent.

 

(c)   Use commercially reasonable efforts to cause the Term Facility to be continuously rated by S&P and Moody’s, and use commercially reasonable efforts to maintain a corporate rating from S&P and a corporate family rating from Moody’s, in each case in respect of the Borrower.

 

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SECTION 5.10.  Inspection Rights.  Permit representatives and independent contractors of the Administrative Agent 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 Registered Public Accounting Firm, all at the expense of the Loan Parties and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, that when an Event of Default exists, the Administrative Agent (or any of its representatives or independent contractors) may do any of the foregoing at the expense of the Loan Parties at any time during normal business hours.

 

SECTION 5.11.  Use of Proceeds.  Use the proceeds of the Loans (other than Incremental Loans) to consummate the Transactions and to pay fees and expenses in connection therewith, and for no other purpose; provided that (i) the proceeds of the Loans made on the First Restatement Date shall be used by the Borrower solely to prepay in full the outstanding principal amount of the term loans outstanding under the Original Credit Agreement immediately prior to the effectiveness of the First Restated Credit Agreement on the First Restatement Date and to pay accrued and unpaid interest, premiums and other amounts outstanding thereunder and related fees and expenses and (ii) the proceeds of the Loans made on the Second Restatement Date shall be used by the Borrower solely to prepay in full the outstanding principal amount of the term loans outstanding under the First Restated Credit Agreement immediately prior to the effectiveness of this Agreement on the Second Restatement Date and to pay accrued and unpaid interest and other amounts outstanding thereunder and related fees and expenses.

 

SECTION 5.12.  Additional Loan Parties.  Notify the Administrative Agent at the time that any Person becomes a Subsidiary, whether such Person shall be an Excluded Subsidiary (and if so, pursuant to which clause or clauses of the definition thereof), and promptly thereafter (and in any event within 30 days), cause any such Person which is not an Excluded Subsidiary, (i) to become a Loan Party and grant a Lien to the Collateral Agent on such Person’s assets of the types constituting Collateral to secure the Obligations by executing and delivering to the Administrative Agent a joinder to each of the Security Agreement and the Facility Guaranty and such other documents (including, to the extent applicable, Mortgages and Related Real Estate Collateral Security Agreements) as the Administrative Agent shall deem appropriate for such purpose and by complying with the Term Loan Priority Collateral Requirements with respect to any Material Real Estate Assets and Material Related Collateral Locations, (ii) deliver to the Administrative Agent documents of the types referred to in Sections 4.01(g) and 4.01(k) of the Original Credit Agreement and, upon the Administrative Agent’s reasonable request, favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in this sentence) and (iii) if any Indebtedness of such Person is owned by or on behalf of any Loan Party in an amount greater than or equal to $10,000,000 individually or in the aggregate, to pledge such Indebtedness and promissory notes evidencing such Indebtedness, in each case in form, content and scope reasonably satisfactory to the Administrative Agent.  In no event shall compliance with this Section 5.12 waive or be deemed a waiver or consent to any transaction giving rise to the need to comply with this Section 5.12 if such transaction was not otherwise expressly permitted by this Agreement.

 

SECTION 5.13.  Cash Management.

 

(a)   On or prior to the Closing Date, deliver to the Administrative Agent copies of notifications (each, a “Credit Card Notification”) substantially in the form attached hereto as Exhibit M (with such changes as may be approved by the ABL Facility Agent) which have been executed on behalf of such Loan Party and delivered to such Loan Party’s Credit Card Processors listed on Schedule 3.21(b).

 

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(b)   Within 60 days after the Closing Date (or such longer period as the ABL Facility Agent may approve in writing in its sole discretion), deliver to the Administrative Agent (i) Blocked Account Agreements reasonably satisfactory in form and substance to the ABL Facility Agent duly authorized, executed and delivered by such Loan Party and the applicable Blocked Account Bank with which such Loan Party maintains each Blocked Account covering each such Blocked Account and (ii) control agreements reasonably satisfactory in form and substance to the ABL Facility Agent duly authorized executed and delivered by such Loan Party and any securities intermediary with which such Loan Party maintains any securities or investment accounts, covering each such securities or investment account maintained with such securities intermediary that at any time holds or constitutes any Related Collateral (as defined in the Security Agreement).

 

(c)   All funds received in the Agent Payment Account shall be applied to the Obligations as provided in accordance with Section 7.02 of this Agreement to the extent that the Obligations are then due and payable.

 

SECTION 5.14.  Information Regarding the Collateral.

 

(a)   Furnish to the Administrative Agent (i) at least 10 Business Days prior written notice of any change in any Loan Party’s name, organizational structure, jurisdiction of incorporation or formation or other change in Article 9 location; or (ii) notice not less than 30 days after any Loan Party makes a change in any trade name used to identify it in the conduct of its business or in the ownership of its properties, the location of any office in which it maintains books or records relating to Collateral owned by it, any office or facility at which Collateral owned by it is located (including the establishment of any such new office or facility) or its Federal Taxpayer Identification Number or the organizational identification number assigned to it by its state of organization.  The Loan Parties agree not to effect or permit any change referred to in clause (i) of the preceding sentence unless all filings have been made under the UCC or otherwise that are required in order for the Administrative Agent to continue at all times following such change to have a valid, legal and perfected first priority security interest in all of the Term Loan Priority Collateral and a valid, legal and perfected second priority security interest in all of the ABL Priority Collateral, in each case, for its own benefit and the benefit of the other Secured Parties.

 

(b)   Should any of the information on any (i) Periodic Update Schedule hereto become inaccurate or misleading in any material respect as a result of changes after the Closing Date, the Borrower shall provide updated versions of such Periodic Update Schedule together with the next delivery of financial statements required to be delivered to the Administrative Agent pursuant to Section 5.01(a) or (b) and (ii) Occurrence Update Schedule become inaccurate or misleading in any material respect as a result of changes after the Closing Date, the Borrower shall advise the Administrative Agent in writing of such revisions or updates as may be necessary or appropriate to update or correct the same promptly, but in any event within 10 Business Days.  From time to time as may be reasonably requested by the Administrative Agent, the Borrower shall supplement each Schedule hereto, or any representation herein or in any other Loan Document, with respect to any matter arising after the Closing Date that, if existing or occurring on the Closing Date, would have been required to be set forth or described in such Schedule or as an exception to such representation or that is necessary to correct any information in such Schedule or representation which has been rendered inaccurate thereby (and, in the case of any supplements to any Schedule, such Schedule shall be appropriately marked to show the changes made therein).  Notwithstanding the foregoing, no supplement or revision to any Schedule or representation shall be deemed the Secured Parties’ consent to the matters reflected in such updated Schedules or revised representations nor permit the Loan Parties to undertake any actions otherwise prohibited 

 

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hereunder or fail to undertake any action required hereunder from the restrictions and requirements in existence prior to the delivery of such updated Schedules or such revision of a representation; nor shall any such supplement or revision to any Schedule or representation be deemed the Secured Parties’ waiver of any Default resulting from the matters disclosed therein.

 

SECTION 5.15.  [Reserved].

 

SECTION 5.16.  Environmental Laws.  (a) Conduct its operations and keep and maintain its Real Estate, and require all lessees and sublessees of such Real Estate to operate and maintain such Real Estate, in material compliance with all Environmental Laws; (b) obtain and renew all environmental permits necessary for its operations and properties; and (c) implement any and all investigation, remediation, removal and response actions that are appropriate or necessary to comply with Environmental Laws pertaining to the presence, generation, treatment, storage, use, disposal, transportation or Release of any Hazardous Materials on, at, in, under, above, to, from or about any of its Real Estate, provided, that neither a Loan Party nor any Restricted Subsidiary 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 and by proper proceedings and adequate reserves have been set aside and are being maintained by the Loan Parties and Restricted Subsidiaries with respect to such circumstances in accordance with GAAP.

 

SECTION 5.17.  Further Assurances.

 

(a)   Execute any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements and other documents), that may be required under any applicable Law, or which the Administrative Agent may reasonably request, to carry out the terms and conditions of this Agreement and the other Loan Documents and to establish, maintain, renew, preserve or protect the rights and remedies of Administrative Agent and other Secured Parties hereunder and under the other Loan Documents, or to grant, preserve, protect or perfect the Liens created or intended to be created by the Security Documents or the validity or priority of any such Lien, all at the expense of the Loan Parties.  The Loan Parties also agree to provide to the Administrative Agent, from time to time upon request, evidence satisfactory to the Administrative Agent as to the perfection and priority of the Liens created or intended to be created by the Security Documents.

 

(b)   If any Collateral is acquired by any Loan Party after the Closing Date that does not become subject to the Lien of the Security Documents upon acquisition thereof, notify the Administrative Agent thereof, and the Loan Parties will cause such assets to be subjected to a Lien securing the Obligations and will take such actions as shall be necessary or shall be requested by the Administrative Agent to grant and perfect such Liens, including actions described in Section 5.17(a), all at the expense of the Loan Parties. In no event shall compliance with this Section 5.17(b) waive or be deemed a waiver or Consent to any transaction giving rise to the need to comply with this Section 5.17(b) if such transaction was not otherwise expressly permitted by this Agreement.

 

(c)   Other than for Store Locations, if the Borrower or any Loan Party leases any Material Related Collateral Location, then the Borrower shall use commercially reasonable efforts, or shall cause such Loan Party to use commercially reasonable efforts, on or before the date that is 90 days after the Closing Date or the initial leasing of such property (or such later date as the Administrative Agent may approve in its sole discretion), to obtain Collateral Access Agreements and Lien Waivers for each such Material Related Collateral Location.

 

(d)   Upon the request of the Administrative Agent, deliver to the Administrative Agent copies of notifications (each, a “DDA Notification”) substantially in the form attached hereto as 

 

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Exhibit L, with such changes reasonably acceptable to the ABL Facility Agent, which have been executed on behalf of such Loan Party and delivered to each depository institution at which a DDA (other than an Excluded DDA) is maintained.

 

(e)   If the Borrower or any Loan Party acquires a Material Real Estate Asset (including, without limitation, pursuant to a Permitted Acquisition or a Permitted Store Swap Transaction), and the Term Loan Priority Collateral Requirements and the requirements of Section 9.21 applicable to Additional Properties have not otherwise been satisfied with respect to such Material Real Estate Asset, then the Borrower shall satisfy, or shall cause such Loan Party to satisfy, on or before the date that is 45 days after the acquisition of such Material Real Estate Asset (or such later date as the Administrative Agent may approve in its sole discretion) the Term Loan Priority Collateral Requirements and the other requirements of Section 9.21 with respect to such Material Real Estate Asset; provided that the satisfaction of such requirements will not violate the SVU Indenture or any other Material Indebtedness or trigger any of the equal and ratable sharing provisions thereof.  If the Borrower or any Loan Party acquires a Material Related Collateral Location (including, without limitation, pursuant to a Permitted Acquisition or a Permitted Store Swap Transaction), and such requirements have not otherwise been satisfied with respect to such Material Related Collateral Location, then the Borrower shall, or shall cause such Loan Party to, on or before the date that is 45 days after the acquisition of such Material Related Collateral Location (or such later date as the Administrative Agent may approve in its sole discretion) deliver to the Collateral Agent a Related Real Estate Collateral Security Agreement and a UCC financing statement with respect to such Material Related Collateral Location, which Security Documents shall have been duly executed by the parties thereto and delivered to the Collateral Agent and shall be in full force and effect, together with a certificate of the type described in Section 4.01(g)(ii) of the Original Credit Agreement; provided that the satisfaction of such requirements will not violate the SVU Indenture or any other Material Indebtedness or trigger any of the equal and ratable sharing provisions thereof.

 

(f)   As of the Closing Date, if Borrower or any Loan Party has entered into a lease or other agreement with a third party with respect to any such Material Real Estate Asset and such lease or other agreement expressly prohibits the granting of a Lien encumbering the Material Real Estate Asset as Collateral in accordance with the terms of this Agreement, then Borrower shall use commercially reasonable efforts, or shall cause the applicable Loan Party to use commercially reasonable efforts, for a period of 90 days after the Closing Date, to obtain such third party’s written consent expressly permitting Borrower’s or such Loan Party’s grant of a Lien on such Material Real Estate Asset. If such consent is obtained within such 90 day period, then Borrower shall satisfy or cause such Loan Party to satisfy the requirements set forth in Section 9.21(c) with respect to such Material Real Estate Asset within forty-five (45) days after the date of receipt of such consent by Borrower.  If such consent is not obtained within such 90 day period, then Borrower shall have no further obligation to pursue such consent. In addition, if Borrower is unable to obtain such consent and such lease or other agreement is subsequently terminated or amended or modified after the Closing Date to permit the applicable Material Real Estate Asset to become subject to a Lien, then Borrower shall satisfy all such requirements set forth in Section 9.21(c) with respect to such Material Real Estate Asset within forty-five (45) days after the date of such termination, amendment or modification.

 

SECTION 5.18.  Ground Leases. Perform and observe all the terms and provisions of each Ground Lease to be performed or observed by it, maintain each such Ground Lease in full force and effect, enforce each such Ground Lease in accordance with its material terms, take all such action to such end as may be from time to time reasonably requested by the Administrative Agent and, upon reasonable request of the Administrative Agent, make to each other party to 

 

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each such Ground Lease 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 Ground Lease, and cause each of its Subsidiaries that are party to Ground Leases to do so.

 

SECTION 5.19.  [Reserved].

 

SECTION 5.20.  ERISA.

 

(a)   Each Loan Party shall, and shall cause each of its ERISA Affiliates to: (i) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal and State law; (ii) cause each Plan which is qualified under Section 401(a) of the Code to maintain such qualification; (iii) not terminate any Pension Plan so as to incur any material liability to the PBGC; (iv) not allow or suffer to exist any prohibited transaction involving any Plan or any trust created thereunder which would subject such Loan Party or ERISA Affiliate to a material tax or other liability on prohibited transactions imposed under Section 4975 of the Code or ERISA; (v) make all required contributions to any Plan which it is obligated to pay under Sections 302 or 303 of ERISA, Sections 412 or 430 of the Code, the PBGC Agreement or the terms of such Plan; (vi) not allow or suffer to exist any violation of the “minimum funding standards” (within the meaning of Section 302 of ERISA and Section 412 of the Code), whether or not waived, with respect to any such Pension Plan; (vii) not engage in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA; and (viii) not allow or suffer to exist any occurrence of a Reportable Event or any other event or condition, to the extent such Reportable Event or other event or condition presents a material risk of termination by the PBGC of any Plan that is a single employer plan, if such termination could result in any material liability to the PBGC.

 

(b)   Promptly upon each determination of the amount of the contributions or other payments required to be made for any calendar year by any Loan Party in respect of any underfunded Pension Plan in order to eliminate or reduce the funding deficiency and prior to any Loan Party making any contribution of other payment in respect of such calendar year, the Borrower shall notify the Administrative Agent of such determination and provide such information with respect thereto as the Administrative Agent may reasonably request.

 

SECTION 5.21.  Agricultural Products.

 

(a)   The Borrower shall at all times comply in all material respects with all existing and future Food Security Act Notices during their periods of effectiveness under the Food Security Act, including, without limitation, directions to make payments to the Farm Products Seller by issuing payment instruments directly to the secured party with respect to any assets of the Farm Products Seller or jointly payable to the Farm Products Seller and any secured party with respect to the assets of such Farm Products Seller, as specified in the Food Security Act Notice, so as to terminate or release the security interest in any Farm Products maintained by such Farm Products Seller or any secured party with respect to the assets of such Farm Products Seller under the Food Security Act.

 

(b)   The Borrower shall take all other actions as may be reasonably required, if any, to ensure that any perishable agricultural commodity (in whatever form) or other Farm Products are purchased free and clear of any Lien or other claims in favor of any Farm Products Seller or any secured party with respect to the assets of any Farm Products Seller.

 

(c)   The Borrower shall promptly notify the Administrative Agent in writing after receipt by or on behalf of the Borrower of any Food Security Act Notice or amendment to a previous Food Security Act Notice, and including any notice from any Farm Products Seller of the intention of such Farm Products Seller to preserve the benefits of any trust applicable to any 

 

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assets of any Loan Party under the provisions of the PSA, the PACA or any other statute, if (A) any such notice involves a claim of $50,000 or more or (B) all such notices outstanding involve claims in the aggregate amount of $250,000 or more; and upon the request of the ABL Facility Agent (or, after the Discharge of ABL Debt (as defined in the Intercreditor Agreement), upon the request of the Administrative Agent), the Borrower shall promptly provide the Administrative Agent with a true, correct and complete copy of such Food Security Act Notice or amendment, as the case may be, and other information delivered to or on behalf of the Borrower pursuant to the Food Security Act.

 

(d)   To the extent that the Borrower purchases any Farm Products from a Person who produces such Farm Products in a state with a central filing system certified by the United States Secretary of Agriculture, the Borrower shall immediately register, as a buyer, with the Secretary of State of such state (or the designated system operator).  The Borrower shall forward promptly to the Administrative Agent a copy of such registration as well as a copy of all relevant portions of the master list periodically distributed by any such Secretary of State (or the designated system operator).  The Borrower shall comply with any payment of obligations in connection with the purchase of any Farm Products imposed by a secured party as a condition of the waiver or release of a security interest effective under the Food Security Act or other applicable law whether or not as a result of direct notice or the filing under any applicable central filing system.  The Borrower shall also provide to the Administrative Agent from time to time upon its request true and correct copies of all state filings recorded in any such central filing system in respect of a Person from whom the Borrower has purchased Farm Products within the preceding 12 months.

 

SECTION 5.22.  Term Loan Priority Account.  The Borrower shall maintain a depositary account subject to a Blocked Account Agreement in favor of the Collateral Agent and the ABL Facility Agent in which solely the proceeds of the Term Loan Priority Collateral (as defined in the Intercreditor Agreement) are deposited.  The Borrower will deposit, or will cause to be deposited, all Net Cash Proceeds of the Term Loan Priority Collateral (as defined in the Intercreditor Agreement) into such account.

 

SECTION 5.23.  Designation of Subsidiaries.  The Borrower may from time to time after the Closing Date, pursuant to a determination by its board of directors, designate any of its Subsidiaries as an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary; provided that (i) immediately before and after such designation, no Default or Event of Default shall have occurred and be continuing or would result therefrom, (ii) each Subsidiary to be designated as an Unrestricted Subsidiary and its Subsidiaries has not at the time of such designation and does not thereafter create incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to which the lender thereof has recourse to any of the assets of the Borrower, any Guarantor or any Restricted Subsidiary, (iii) the fair market value of any such Subsidiary to be designated as an Unrestricted Subsidiary and its Subsidiaries would be permitted as an Investment under Section 6.02(a), (iv) the designation of any Unrestricted Subsidiary as a Restricted Subsidiary will constitute the incurrence at the time of designation of all Indebtedness and Liens of such Subsidiary existing at the time of such designation, (v) no Restricted Subsidiary may be designated as an Unrestricted Subsidiary if it is a “restricted subsidiary” (or a term having a similar effect) for purposes of any other Material Indebtedness of the Borrower and its Subsidiaries; and (vi) any Unrestricted Subsidiary that has been designated as a Restricted Subsidiary may not subsequently be re-designated as an Unrestricted Subsidiary without the prior consent of the Administrative Agent.  Any such designation by the Board of Directors shall be evidenced to the Administrative Agent by promptly delivering to the Administrative Agent a copy of the resolution of the Borrower’s board of directors giving effect to such designation and a certificate signed by a Responsible Officer of the Borrower certifying that such designation complied with the foregoing provisions.

 

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SECTION 5.24.  Preparation of Environmental Reports.

 

(a)   If a Default caused by reason of a breach of Section 3.09 or Section 5.16 shall have occurred and be continuing for more than 20 days without any Loan Party commencing activities reasonably likely to cure such Default, at the written request of the Lenders through the Administrative Agent, provide to the Lenders within 90 days after such request, at the expense of the Borrower, an environmental site assessment report regarding the matters which are the subject of such Default prepared by an environmental consulting firm reasonably acceptable to the Administrative Agent and indicating the presence or absence of Hazardous Materials and the estimated cost of any compliance or remedial action in connection with such Default.

 

(b)   If any Event of Default shall have occurred, at the written request of the Lenders through the Administrative Agent, provide to the Lenders within 45 days after such request, at the expense of the Borrower, an environmental site assessment report for any Real Estate Collateral Property (whether owned or leased) prepared by an environmental consulting firm reasonably acceptable to the Administrative Agent regarding the presence or absence of Hazardous Materials at such property, the extent of any Environmental Liabilities associated with such Loan Party’s operations thereon, and the estimated cost of any compliance or remedial action in connection therewith.

 

(c)   If any Loan Party has not promptly commenced preparation for completion of an environmental report duly requested by the Lenders pursuant to this Section 5.24, the Administrative Agent may, after prior notice to the Borrower and at the Borrower’s expense, engage a qualified environmental consultant to prepare such reports.  The Loan Parties shall provide the Administrative Agent, its consultant or other designated representative, with reasonable access to its Real Estate, records and personnel for the purpose of completing all necessary investigations related to preparation of the requested environmental reports (the scope of which shall be consistent with the then current ASTM Phase I standard practice, but which shall not include the taking of soil, groundwater, surface water, air or building samples or other invasive testing unless the Borrower has provided its prior written consent, which consent shall not be unreasonably withheld; provided, that such testing is reasonably related to information set forth in the Phase I report or reasonably related to the specific Event of Default that has occurred and is continuing).

 

SECTION 5.25.  Post-Closing Collateral.

 

(a)   On or prior to the date that is 60 days after the Second Restatement Date (or such later date as may be agreed by the Administrative Agent in its sole discretion), to the extent reasonably necessary to maintain the Lien of the Mortgages on the Real Estate Collateral Properties as security for the Obligations, as determined by the Administrative Agent in its reasonable discretion, the Collateral Agent shall have received such Mortgage amendments (or new Mortgages) as Administrative Agent reasonably determines are required under applicable Law to grant, preserve, protect or perfect the Liens created or intended to be created by the Mortgages with respect to the Real Estate Collateral Properties as in effect immediately prior to the Second Restatement Date or the validity or priority of any such Lien, in proper form for recording in the relevant jurisdictions and in a form reasonably satisfactory to the Administrative Agent; and (i) together with each such Mortgage amendment, the Collateral Agent shall have received an ALTA 11-06 Mortgage Modification endorsement (or equivalent endorsement under applicable Law) to the Title Insurance Policy for such amended Mortgage and an opinion or opinions of counsel admitted to practice under the laws of the State in which the Real Estate Collateral Property for the amended Mortgage is located, regarding the Mortgages and the 

 

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Mortgage amendments in that State, and a due execution, delivery, and authority opinion (consistent with the requirements of Section 4.01(d), in each case in form and substance reasonably acceptable to the Administrative Agent; and (ii) together with any such new Mortgage, the Collateral Agent shall have received with respect thereto the items required by subparts (a)(ii), (a)(iii), (a)(v)(x), (a)(v)(y), (a)(viii), (b), (d) and (e) of the definition of “Term Loan Priority Collateral Requirements”.

 

(b)   After the Closing Date, the Borrower may substitute one or more fee-owned or ground leasehold interests in Real Estate (and the Equipment located thereon) for any Term Loan Priority Collateral on the Applicable Collateral List subject to the satisfaction of the terms and conditions set forth in Section 9.21.

 

SECTION 5.26.  Escrow Agreement and Indemnity.

 

(a)   To the extent that any demand for payment has been made on the Borrower in respect of its obligations under the ASC Guarantee, the Borrower shall diligently exercise its rights pursuant to the Escrow Agreement and Section 5.11(c) of the Acquisition Agreement to obtain payment (directly or indirectly to the indenture trustee under the ASC Indenture in satisfaction in full of the amount demanded) in respect of any amount demanded under the ASC Guarantee prior to the Borrower making any payment in respect thereof and, to the extent the Borrower makes any payment in respect thereof, the Borrower will appropriately exercise its rights pursuant to the Escrow Agreement and Section 5.11(c) of the Acquisition Agreement to obtain reimbursement for such payment.

 

(b)   Unless the Escrow Fund (as defined in the Escrow Agreement) has been fully released pursuant to the terms of the Escrow Agreement, the Escrow Fund and all other assets and property subject to the Escrow Agreement shall at all times be and remain invested in a MMMF or one or more other investments reasonably satisfactory to the Administrative Agent, except for cash or Cash Equivalents received in connection with liquidations distributing proceeds thereof and except for other liquid non-cash investments of the type described in clauses (a) through (e) of the term “Permitted Investments”.

 

ARTICLE VI

 

NEGATIVE COVENANTS

 

The Loan Parties covenant and agree with each Lender that so long as this Agreement shall remain in effect and until the Commitments have been terminated and the principal of and interest on each Loan, all Fees and all other expenses or amounts payable under any Loan Document shall have been paid in full (other than contingent indemnification obligations not then due and payable), unless the Required Lenders shall otherwise consent in writing, the Loan Parties will not, and will not, to the extent provided below, cause or permit any Restricted Subsidiary to:

 

SECTION 6.01.  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 UCC or any similar Law or statute of any jurisdiction a financing statement that names any Loan Party or any Subsidiary thereof as debtor; sign or suffer to exist any security agreement authorizing any Person thereunder to file such financing statement; sell any of its property or assets subject to an understanding or agreement (contingent or otherwise) to repurchase such property or assets with recourse to it or any of its Subsidiaries; or assign or otherwise transfer any accounts or other rights to receive income, except as to all of the above, Permitted Encumbrances.

 

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SECTION 6.02.  Investments, Loans and Advances.  Make any Investments except:

 

(a)   Permitted Investments; and

 

(b)   the Borrower or any Subsidiary may acquire all or substantially all the assets of a Person or line of business of such Person, or not less than 100% of the Equity Interests (other than directors’ qualifying shares) of a Person (referred to herein as the “Acquired Entity”); provided that (i) such acquisition was not preceded by an unsolicited tender offer for such Equity Interests by, or proxy contest initiated by, the Borrower or any Subsidiary and the board of directors (or other comparable governing body) of the Person to be acquired shall not have announced that it will oppose such acquisition or shall not have commenced any action or proceeding which alleges that such acquisition will violate any applicable law; (ii) the Acquired Entity shall be in a substantially similar, reasonably related or incidental to line of business as that of the Borrower and its Subsidiaries as conducted during the current and most recent calendar year; (iii) the Administrative shall have received 10 Business Days prior written notice of such acquisition and prior to the consummation thereof shall have received such information with respect thereto as the Administrative Agent shall have reasonably requested and (iv) at the time of such transaction (A) both before and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing; (B) the Total Leverage Ratio of the Borrower shall not exceed 4.00:1.00 on a pro forma basis after giving effect to such acquisition, any incurrence or assumption of Indebtedness in connection therewith and the use of proceeds thereof; (C) the Borrower shall have delivered a certificate of a Responsible Officer, certifying as to the satisfaction of the foregoing clauses (A) and (B) and containing reasonably detailed calculations in support thereof, in form and substance satisfactory to the Administrative Agent; (D) the Acquired Entity, if a Person, shall become a Loan Party prior to or substantially simultaneously with such acquisition or, if all or substantially all of the assets or a line of business of a Person shall be acquired, the same shall be acquired by a Person who is a Loan Party or becomes a Loan Party substantially simultaneously with such acquisition; and (E) the Borrower shall comply, and shall cause the Acquired Entity to comply, with the applicable provisions of Section 5.12, Section 5.17 and the Security Documents (any acquisition of an Acquired Entity meeting all the criteria of this Section 6.02(b) being referred to herein as a “Permitted Acquisition”).

 

SECTION 6.03.  Indebtedness.  Incur, create, assume or permit to exist any Indebtedness, except Permitted Indebtedness.

 

SECTION 6.04.  Fundamental Changes.  Merge, dissolve, liquidate or consolidate with or into another Person (or agree to do any of the foregoing), except that, so long as no Default or Event of Default shall have occurred and be continuing prior to or immediately after giving effect to any action described below or would result therefrom:

 

(a)   any Loan Party may merge with any Excluded Subsidiary; provided that the Loan Party shall be the continuing or surviving Person;

 

(b)   any Restricted Subsidiary may merge into any Loan Party, and any Restricted Subsidiary that is not a Loan Party may merge into any other Restricted Subsidiary that is not a Loan Party, provided that, (i) in any merger involving the Borrower, the Borrower shall be the continuing or surviving Person, (ii) subject to the foregoing clause (i), in any merger involving a Loan Party, the continuing or surviving entity shall be a Loan Party and (ii) in any merger involving Moran Foods or any of its Subsidiaries and a Loan Party that is not Moran Foods or any of its Subsidiaries, Moran Foods or such Subsidiary shall be the continuing or surviving person;

 

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(c)   in connection with a Permitted Acquisition, any Subsidiary of a Loan Party may merge with or into or consolidate with any other Person or permit any other Person to merge with or into or consolidate with it; provided that (i) the Person surviving such merger shall be a Subsidiary of a Loan Party and (ii) in the case of any such merger to which any Loan Party is a party, such Loan Party is the surviving Person; and

 

(d)   any Restricted Subsidiary may be wound up and dissolved, provided, promptly upon the commencement of the winding up or any action to dissolve such Restricted Subsidiary, (i) any assets of such Restricted Subsidiary which constitute Collateral are either (A) transferred to a Loan Party and are subject to the valid perfected second priority security interest of the Administrative Agent as to any ABL Priority Collateral and valid perfected first priority security interest of the Administrative Agent as to any Term Loan Priority Collateral or (B) are subject to a Permitted Disposition and (ii) any such Restricted Subsidiary that is a Loan Party shall cease to be a Loan Party; provided that notwithstanding the foregoing, Moran Foods and its Subsidiaries may not be wound up or dissolved.

 

SECTION 6.05.  Dispositions.  Make any Disposition, or enter into any agreement to make any Disposition, except Permitted Dispositions.

 

SECTION 6.06.  Restricted Payments.  Declare or make, or agree to declare or make, directly or indirectly, any Restricted Payment (including pursuant to any Synthetic Purchase Agreement), or incur any obligation (contingent or otherwise) to do so; provided, however, that as of the date of any such Restricted Payment and after giving effect thereto, (i) any Restricted Subsidiary may declare and pay dividends or make other distributions ratably to its equity holders, (ii) so long as no Event of Default or Default shall have occurred and be continuing or would result therefrom, the Borrower may repurchase its Equity Interests owned by employees of the Borrower or the Subsidiaries or make payments to employees of the Borrower or the Subsidiaries upon termination of employment in connection with the exercise of stock options, stock appreciation rights or similar equity incentives or equity based incentives pursuant to management incentive plans or in connection with the death or disability of such employees, (iii) the Borrower may make other Restricted Payments in an aggregate amount when combined with all payments made pursuant to Section 6.07(a)(vi) not to exceed $175,000,000 and (iv) the Borrower may make other Restricted Payments in an aggregate amount not to exceed the Cumulative Credit Amount; provided, that (x) in the case of clause (i), to the extent any such dividends or distributions consist of Real Estate Collateral Property, (1) the Borrower provides at least 15 Business Days prior written notice thereof (or such shorter notice as the Administrative Agent may approve) identifying such Real Estate Collateral Property, (2) such Real Estate Collateral Property is distributed subject in all respects to the Mortgage thereon and such Mortgage remains a valid first priority lien on such Real Estate Collateral Property so distributed and (3) the Borrower shall have delivered to the Administrative Agent such documents and other information evidencing that such Real Estate Collateral Property was distributed subject to the Mortgage thereon as the Administrative Agent may reasonably request; (y) in the case of clause (iv), the Total Leverage Ratio of the Borrower shall not exceed 3.50:1.00 on a pro forma basis after giving effect to such payment; and (z) in the case of clauses (iii) and (iv), at the time of the declaration and making of such Restricted Payment, (A) both before and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing and (B) the Borrower shall have delivered a certificate of a Responsible Officer, certifying as to compliance with the remaining availability pursuant to clause (iii) and the usage of the Cumulative Credit Amount, as applicable, and the satisfaction of the foregoing clauses (y) and (z)(A), as applicable, and containing reasonably detailed calculations in support thereof, in form and substance satisfactory to the Administrative Agent.

 

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SECTION 6.07.  Prepayments of Other Indebtedness.  (a) Make any distribution, whether in cash, property, securities or a combination thereof, other than regular scheduled payments of principal and interest as and when due (to the extent not prohibited by applicable subordination provisions), in respect of, or pay, or commit to pay, or directly or indirectly (including pursuant to any Synthetic Purchase Agreement) redeem, repurchase, retire or otherwise acquire for consideration, or set apart any sum for the aforesaid purposes, any Indebtedness (other than Indebtedness in respect of the ASC Guarantee) except (i) the payment of the Indebtedness created hereunder or under the ABL Facility, (ii) refinancings of Permitted Indebtedness with Permitted Refinancing Indebtedness, (iii) payments of the SVU 2016 Notes (A) with proceeds of borrowings under the ABL Facility (including any Permitted Refinancing Indebtedness with respect thereto) (provided, that the ABL Facility or such Permitted Refinancing Indebtedness with respect thereto has a final maturity date at least six months after the Latest Maturity Date), (B) so long as no Default or Event of Default shall have occurred and be continuing, with the Net Cash Proceeds of a Moran Sale that are not required to be applied to prepay Loans hereunder pursuant to Section 2.13 or prepay loans or cash collateralize letters of credit under the ABL Facility and (C) so long as no Default or Event of Default shall have occurred and be continuing, with other sources of cash that are not required to be applied to prepay Loans hereunder or prepay loans or cash collateralize letters of credit under the ABL Facility, (iv) the payment of secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, (v) [Reserved], (vi) payments in an aggregate amount when combined with all Restricted Payments made pursuant to Section 6.06(iii) not to exceed $175,000,000 and (vii) other payments of Indebtedness in an aggregate amount not to exceed the Cumulative Credit Amount; provided that, in the case of clauses (vi) and (vii), (A) at the time of such payment, both before and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing and (B) the Borrower shall have delivered a certificate of a Responsible Officer, certifying as to the satisfaction of the foregoing clause (A), and containing reasonably detailed calculations certifying as to compliance with the remaining availability pursuant to clause (vi) or the usage of the Cumulative Credit Amount, as applicable, in form and substance satisfactory to the Administrative Agent or (b) pay in cash any amount in respect of any Indebtedness or preferred Equity Interests that may at the obligor’s option be paid in kind or in other securities.  Payments originally made in reliance on clause (vi) above may subsequently be reallocated to clauses (v) or (vii) to the extent permitted at the time of reallocation under such clauses.

 

SECTION 6.08.  Business of Borrower and Restricted Subsidiaries.  Engage in any line of business substantially different from the Business conducted by the Loan Parties and their Subsidiaries on the Second Restatement Date or any business substantially related or incidental thereto.

 

SECTION 6.09.  Transactions with Affiliates.  Enter into, renew, extend or be a party to any transaction of any kind with any Affiliate of any Loan Party, whether or not in the ordinary course of business, other than (a) those set forth on Schedule 6.09 hereto, (b) Restricted Payments permitted under Section 6.06, (c) the payment of compensation and benefits and the providing of indemnification to officers and directors in the ordinary course of business and consistent with past practices or (d) on fair and reasonable terms substantially as favorable to the Loan Parties as would be obtainable by the Loan Parties at the time in a comparable arm’s-length transaction with a Person other than an Affiliate.  The foregoing restriction shall not restrict (i) a transaction between or among the Loan Parties, (ii) advances for commissions, travel and other similar purposes in the ordinary course of business to directors, officers and employees, (iii) the issuance of Equity Interests of the Borrower to any officer, director or employee of the Borrower or any of its Subsidiaries in the ordinary course of business, (iv) the payment of reasonable fees and out-of-pocket costs to directors, and compensation and employee benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees of the Borrower or any of 

 

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its Subsidiaries, and (v) any issuances of Qualified Equity Interests of the Borrower (other than Disqualified Stock and other Equity Interests not permitted hereunder) or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, severance agreements, retention plans, employment agreements, deferred compensation agreements, stock options, restricted stock agreements and stock ownership plans (in each case in respect of Qualified Equity Interests of the Borrower) of the Borrower or any of its Subsidiaries.

 

SECTION 6.10.  Burdensome Agreements.  Enter into or permit to exist any Contractual Obligation (other than this Agreement or any other Loan Document or any ABL Facility Documents) that (a) limits the ability (i) of any Subsidiary to make Restricted Payments or other distributions to any Loan Party or to otherwise transfer property to or invest in a Loan Party, (ii) of any Subsidiary (other than an Excluded Subsidiary) to Guarantee the Obligations, (iii) of any Subsidiary (other than an Excluded Subsidiary) to make or repay loans to a Loan Party or (iv) of the Loan Parties or any Subsidiary (other than an Excluded Subsidiary) to create, incur, assume or suffer to exist Liens on property of such Person in favor of the Administrative Agent; provided, that this clause (iv) shall not prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under clauses (c) or (f) of the definition of “Permitted Indebtedness” solely to the extent any such negative pledge relates to the property financed by or securing such Indebtedness; or (b) other than the SVU Indenture and any Permitted Refinancing Indebtedness in respect thereof, 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.

 

SECTION 6.11.  Use of Proceeds.  Use the proceeds of any Loan, whether directly or indirectly, and whether immediately, incidentally or ultimately, (a) to purchase or carry margin stock (within the meaning of Regulation U) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund Indebtedness originally incurred for such purpose; or (b) for purposes other than those permitted under this Agreement.

 

SECTION 6.12.  Amendment of Material Documents.  Amend, modify, consent to or waive any of a Loan Party’s rights under or any provision of (a) its Organization Documents, the Acquisition Agreement or any document related to the Acquisition Agreement (including the Escrow Agreement and the transition services agreements referred to in the Acquisition Agreement), in each case in a manner materially adverse to the Secured Parties or (b) the SVU Indenture, the SVU 2016 Notes, the SVU 2021 Notes, the ASC Guarantee or any other Material Indebtedness, in each case in a manner that would be materially adverse to the Secured Parties (including, in the case of the SVU Indenture, the SVU 2016 Notes, the SVU 2021 Notes and the ASC Guarantee, changing the obligors with respect to such Material Indebtedness) or to the extent that such amendment, modification or waiver would reasonably be expected to have a Material Adverse Effect.

 

SECTION 6.13.  Fiscal Year.  Change the Fiscal Year of any Loan Party, or the accounting policies or reporting practices of the Loan Parties, except as required by GAAP.

 

SECTION 6.14.  Disqualified Stock.  Issue any Disqualified Stock.

 

ARTICLE VII

 

EVENTS OF DEFAULT

 

SECTION 7.01.  Events of Default.  In case of the happening of any of the following events (“Events of Default”).

 

(a)   Non-Payment.  The Borrower or any Restricted Subsidiary fails to pay when and as required to be paid herein, whether at the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or otherwise, (i) any amount of principal of any Loan or (ii) any interest on any Loan, or any fee due hereunder, within five Business 

 

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Days of the due date or (iii) any other amount payable hereunder or under any other Loan Document, within five Business Days of the due date; or

 

(b)   Specific Covenants.  The Borrower or any Restricted Subsidiary fails to perform or observe any term, covenant or agreement contained in any of Sections 5.01, 5.02(a)(i), 5.02(a)(iv), 5.03, 5.05, 5.07, 5.11, 5.12 or 5.13 or Article VI; or

 

(c)   Other Defaults.  The Borrower or any Restricted Subsidiary fails to perform or observe (i) any term, covenant or agreement contained in Section 4.9 of the Security Agreement, (ii) any term, covenant or agreement contained in Sections 5(a), the first sentence of Section 5(c), Section 6 or Section 7 of any of the Mortgages, or (iii) any other term, covenant or agreement (not specified in Sections 7.01(a) or 7.01(b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days after the date written notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; provided, that in the case of clause (iii), in the event the Borrower fails to notify the Administrative Agent pursuant to Section 5.03(a) within three Business Days after the occurrence of its failure to perform or observe such term, covenant or agreement as provided therein, an Event of Default will occur as a result of the failure to perform or observe such term, covenant or agreement 30 days after the earlier of (x) the date of the event or occurrence which is the basis for such Event of Default and (b) the date written notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; or

 

(d)   Representations and Warranties.  Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or any Restricted Subsidiary herein, in any other Loan Document, or in any document, report, certificate, financial statement or other instrument delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made, except that such materiality qualifier shall not be applicable to any representation or warranty that is already qualified by materiality or “material adverse effect”; or

 

(e)   Cross-Default.  (i) Any Loan Party or Restricted Subsidiary (a) fails to make any payment when due (regardless of amount and whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Material Indebtedness (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement), or (b) fails to observe or perform any other agreement or condition relating to any such Material Indebtedness 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 Material Indebtedness or the beneficiary or beneficiaries of any Guarantee thereof (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with or without the giving of notice, lapse of time or both, such Indebtedness to be demanded, accelerated 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; (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 a Loan Party or any Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (b) any Termination Event (as defined in such Swap Contract) under such Swap Contract as to which a Loan Party or any Subsidiary thereof is an Affected 

 

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Party (as defined in such Swap Contract) and, in either event, the Swap Termination Value owed by the Loan Party or such Subsidiary as a result thereof is greater than $50,000,000; (iii) (a) any party to the Escrow Agreement fails to pay any amount due to the Borrower thereunder, to deposit any amount required to be deposited thereunder, or follow the terms of the Escrow Agreement with respect to any dispute by Borrower thereunder, (b) the Escrow Agent (as defined in the Escrow Agreement) fails to comply with its obligations not to enter into any control agreement or any other agreement with any other Person relating to the securities accounts established pursuant to the Escrow Agreement, (c) ASC fails to comply with its obligations not to grant any Lien on its rights under the Escrow Agreement or on any funds deposited pursuant thereto except as contemplated by the Escrow Agreement or (d) the Escrow Agent (as defined in the Escrow Agreement) disburses funds deposited pursuant to the Escrow Agreement other than in accordance with the terms thereof, and in each case with respect to this clause (iii) such failure continues for 45 days (after the Borrower obtains knowledge thereof other than in the case of any such failure on the part of the Borrower); (iv) the Borrower fails to observe or perform any agreement or condition contained in the ASC Guarantee, or any other event occurs, the effect of which default or other event is to cause the ASC Guarantee to be in default, and such failure continues for 45 days; or (v) the Borrower fails to observe or perform its obligations under any guarantee of NAI Workers’ Compensation Liabilities, and such failure continues for 45 days; or

 

(f)   Insolvency Proceedings, Etc.  Any Loan Party or Subsidiary (other than an Excluded Subsidiary) (i) institutes or consents to the institution of any voluntary or involuntary proceeding under any Debtor Relief Law, or makes a general assignment for the benefit of creditors; or (ii) applies for or consents to the appointment of any receiver, trustee, custodian, sequestrator, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or (iii) a proceeding shall be commenced or a petition filed, without the application or consent of such Person, seeking or requesting the appointment of any receiver, trustee, custodian, sequestrator, conservator, liquidator, rehabilitator or similar officer is appointed and the appointment continues undischarged, undismissed or unstayed for 60 calendar days or an order or decree approving or ordering any of the foregoing shall be entered; (iv) files an answer admitting the material allegations of a petition filed against it in any proceeding described in the foregoing clauses (i), (ii) or (iii), or (v) 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

 

(g)   Inability to Pay Debts; Attachment.  (i) Any Loan Party or Subsidiary (other than an Excluded Subsidiary) becomes unable or admits in writing its inability or fails generally to pay its debts as they become due in the ordinary course of business, 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 issuance or levy, or (iii) takes any action for the purpose of effecting the events described in the foregoing paragraph (f) or this paragraph (g); or

 

(h)   Judgments.  There is entered against any Loan Party or Subsidiary (other than an Excluded Subsidiary) (i) one or more judgments or orders or any combination thereof for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding $50,000,000 (to the extent not covered by independent third-party insurance as to which the insurer is rated at least “A” by A.M. Best Company, has been 

 

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notified of the potential claim and does not dispute coverage), or (ii) any one or more non-monetary judgments that have, or would 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 45 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, is not in effect; or

 

(i)   Racketeering.  There is filed against any Loan Party or Subsidiary by any federal or state Governmental Authority any action, suit or proceeding under any federal or state racketeering statute (including the Racketeer Influenced and Corrupt Organization Act of 1970), which action, suit or proceeding: (i) is not dismissed within 120 days and (ii) would reasonably be expected to result in the confiscation or forfeiture of any material portion of the Collateral; or

 

(j)   ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan, Multiemployer Plan or the PBGC Agreement which, in the case of a Pension Plan or Multiemployer Plan, has resulted or would reasonably be expected to result in the liability of any Borrower or any Restricted Subsidiary under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC and that has or would reasonably be expected to have a Material Adverse Effect when taken together with all other such ERISA Events or (ii) a Loan Party 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 or any installment in connection with an underfunded Pension Plan as provided in Section 5.20, in either case as to any such installment that is in excess of $50,000,000; or

 

(k)   Invalidity of Loan Documents.  (i) 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 (other than in accordance with its terms) and as a result thereof, a Material Adverse Effect would occur or would reasonably be expected to occur; 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 provision of any Loan Document (other than as a result of the discharge of such Loan Party in accordance with the terms of the applicable Loan Document), or purports to revoke, terminate or rescind any provision of any Loan Document or seeks to avoid, limit or otherwise adversely affect any Lien purported to be created under any Security Document; or (ii) any Lien purported to be created under any Security Document shall cease to be, or shall be asserted by any Loan Party or any other Person not to be, a valid and perfected Lien on any Collateral, with the priority required by the applicable Security Document (after satisfaction of the requirements set forth in Section 5.25(a) with respect to any Collateral described therein); or

 

(l)   Cessation of Business.  Except as otherwise expressly permitted hereunder, the Borrower or any Restricted Subsidiary shall take any action to suspend the operation of its business in the ordinary course, liquidate all or a material portion of its assets or Store locations, or employ an agent or other third party to conduct a program of closings, liquidations or “going-out-of-business” sales of any material portion of its business; or

 

(m)   Loss of Collateral.  There occurs any uninsured loss to any material portion of the Term Loan Priority Collateral having a value in excess of $50,000,000; or

 

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(n)   Indictment.  The indictment or institution of any legal process or proceeding against, any Loan Party or any Restricted Subsidiary, under any federal or state criminal statute, rule, regulation, order, or other requirement having the force of law for a felony; or

 

(o)   Guaranty.  The termination or attempted termination of any Facility Guaranty except as expressly permitted hereunder or under any other Loan Document; or

 

(p)   Subordination; Intercreditor Agreement.  (i) The subordination provisions of the documents evidencing or governing any Subordinated Indebtedness, or provisions of the Intercreditor Agreement (or any other intercreditor agreement entered into by the Administrative Agent after the Closing Date), any such provisions being referred to as the “Intercreditor 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 Indebtedness as a result of any act or omission of any Loan Party or any Restricted Subsidiary; or (ii) any Loan Party or any Restricted Subsidiary shall, directly or indirectly, disavow or contest in any manner (a) the effectiveness, validity or enforceability of any of the Intercreditor Provisions, (b) that the Intercreditor Provisions exist for the benefit of the Secured Parties or (c) in the case of Subordinated Indebtedness, 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 or Restricted Subsidiary, shall be subject to any of the Intercreditor Provisions;

 

(q)   Maturity of ABL Facility.  The maturity of the ABL Facility prior to its originally scheduled maturity date (as a result of the failure of the Borrower or any Restricted Subsidiary to obtain refinancing or otherwise as a result of any act or omission of the Borrower or any Restricted Subsidiary after the Closing Date); or

 

(r)   Payments Under ASC Guarantee.  The Borrower or any Restricted Subsidiary (a) makes any payment, whether in cash, property, securities or a combination thereof, in respect of the ASC Guarantee using Internally Generated Cash or proceeds of Indebtedness in an aggregate amount in excess of $40,000,000 (other than amounts subsequently reimbursed to the Borrower from the Escrow Fund (as defined in the Escrow Agreement) or other assets or property subject to the Escrow Agreement or pursuant to Section 5.11(c) of the Acquisition Agreement), or (b) makes any payment, whether in cash, property, securities or a combination thereof, in respect of the ASC Guarantee in an aggregate amount in excess of $40,000,000 in respect of interest, fees, expenses, indemnities and other amounts (other than principal) from the proceeds of the Escrow Fund (as defined in the Escrow Agreement) or other assets or property subject to the Escrow Agreement, other than payments made or reimbursed from the Additional Escrow Amount Subaccount (as defined in the Escrow Agreement);

 

then, and in every such event (other than an event with respect to the Borrower described in Sections 7.01(f) or 7.01(g)), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times:  (i) terminate forthwith the Commitments and (ii) declare the Loans then outstanding to be forthwith due and payable in whole or in part, whereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and any unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder and under any other Loan Document, shall become forthwith due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Borrower, anything contained herein or

 

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in any other Loan Document to the contrary notwithstanding; and in any event with respect to the Borrower described in Sections 7.01(f) or 7.01(g), the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and any unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder and under any other Loan Document, shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Borrower, anything contained herein or in any other Loan Document to the contrary notwithstanding and the Administrative Agent and the Collateral Agent shall have the right to take all or any actions and exercise any remedies available under the Loan Documents or applicable law or in equity.

 

SECTION 7.02.  Application of Funds.  After the exercise of remedies provided for in this Article VII (or after the Loans have automatically become immediately due and payable as set forth in this Article VII), any amounts received on account of the Obligations shall (subject to the Intercreditor Agreement) 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 the Collateral Agent and amounts payable under Section 2.20) payable to the Administrative Agent and the Collateral Agent, in their capacities as such;

 

second, to payment of that portion of the Obligations constituting indemnities, expenses, and other amounts (other than principal, interest and fees) payable to the Lenders (including fees, charges and disbursements of counsel to the respective Lenders and amounts payable under Section 2.20), ratably among them in proportion to the 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, and fees, 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;

 

fifth, to payment of all other Obligations ratably among the Secured Parties in proportion to the respective amounts described in this clause fifth held by them; and

 

last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Loan Parties or as otherwise required by Law.

 

ARTICLE VIII

 

THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT; ETC.

 

(a)   Each Lender hereby irrevocably appoints the Administrative Agent and the Collateral Agent (for purposes of this Article VIII, the Administrative Agent and the Collateral Agent are referred to collectively as the “Agents”) its agent hereunder and under the other Loan Documents and authorizes the Agents to take such actions on its behalf and to exercise such powers as are delegated to such Agent by the terms hereof and thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article VIII are solely for the benefit of the Agents and 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 or Collateral Agent, as applicable, 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.  Without limiting the generality of the foregoing, the Agents are hereby expressly authorized to 

 

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(i) execute any and all documents (including releases and the Security Documents) with respect to the Collateral and the rights of the Secured Parties with respect thereto, as contemplated by and in accordance with the provisions of this Agreement and the Security Documents and (ii) negotiate, enforce or the settle any claim, action or proceeding affecting the Lenders in their capacity as such, at the direction of the Required Lenders, which negotiation, enforcement or settlement will be binding upon each Lender.

 

(b)   The Person serving as the Administrative Agent and/or the Collateral 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 an Agent, and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as an 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 (subject to securities law and other requirements of applicable law) as if it were not an Agent hereunder and without any duty to account therefor to the Lenders.

 

(c)   Neither Agent shall have any duties or obligations except those expressly set forth herein and in the Loan Documents, and its duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, (a) neither Agent shall be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is continuing, (b) neither Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that such Agent is instructed in writing to exercise by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided for herein or in the other Loan Documents); provided that neither Agent shall be required to take any action that, in its opinion or the opinion of its counsel, may expose such Agent to liability or that is contrary to any Loan Document or applicable law and (c) except as expressly set forth herein and in the other Loan Documents, neither Agent shall have any duty to disclose, nor shall it be liable for the failure to disclose, any information relating to the Borrower or any of the Subsidiaries that is communicated to or obtained by the Person serving as the Administrative Agent and/or the Collateral Agent or any of its Affiliates in any capacity.  Neither Agent shall be liable for any action taken or not taken by it 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 such Agent shall believe in good faith shall be necessary, under the circumstances as provided in Article VII or Section 9.08) or in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by a final non-appealable judgment.  Neither Agent shall be deemed to have knowledge of any Default or Event of Default unless and until written notice thereof is given to such Agent by the Borrower or a Lender.  Neither Agent shall 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 thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to such Agent.

 

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(d)   Each 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.  Each Agent may also 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, each Agent may presume that such condition is satisfactory to such Lender unless such Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan.  Each 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.

 

(e)   Each Agent may perform any and all 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 it.  Each Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the Term Facility as well as activities as Agent.  Neither Agent shall 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 such Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

 

(f)   Either Agent may resign at any time by notifying the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right, with the consent of the Borrower (prior to the occurrence of a Specified Event of Default), to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 60 days after the retiring Agent gives notice of its resignation, then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent which shall be a financial institution with an office in New York, New York, or an Affiliate of any such financial institution. If no successor Agent has been appointed pursuant to the immediately preceding sentence by the 60th day after the date such notice of resignation was given by such Agent, such Agent’s resignation shall become effective (and such Agent shall be discharged from its duties and obligations hereunder) and the Required Lenders shall thereafter perform all the duties of such Agent hereunder and/or under any other Loan Document until such time, if any, as the Required Lenders appoint a successor Administrative Agent and/or Collateral Agent, as the case may be, with the consent of the Borrower (prior to the occurrence of a Specified Event of Default).  Upon the acceptance of its appointment as Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder (if not already discharged therefrom as provided above).  The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After an Agent’s resignation hereunder, the provisions of this Article VIII and Section 9.05 shall continue in effect for the benefit of such retiring 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 acting as Agent.

 

(g)   Each Lender acknowledges that it has, independently and without reliance upon the Agents or any other Lender or any of their Related Parties and based on such documents and 

 

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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 Agents 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, any related agreement or any document furnished hereunder or thereunder.

 

(h)   Notwithstanding any other provision of this Agreement or any provision of any other Loan Document, each of the Joint Lead Arrangers, the Co-Managers, the Syndication Agents and the Documentation Agents are named as such for recognition purposes only, and in their respective capacities as such shall have no duties, responsibilities or liabilities with respect to this Agreement or any other Loan Document; it being understood and agreed that each of the Joint Lead Arrangers, the Co-Managers, the Syndication Agents and the Documentation Agents shall be entitled to all indemnification and reimbursement rights in favor of the Agents provided herein and in the other Loan Documents.  Without limitation of the foregoing, neither the Joint Lead Arrangers, the Co-Managers, the Syndication Agents nor the Documentation Agents in their respective capacities as such shall, by reason of this Agreement or any other Loan Document, have any fiduciary relationship in respect of any Lender, Loan Party or any other Person.

 

(i)   In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, each 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 such Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise (a) 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 of the Lenders and the Agents (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Agents and their respective agents and counsel and all other amounts due the Lenders and Agents under Section 9.05) allowed in such judicial proceeding and (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same and, in either case, any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and each other Secured Party to make such payments to such Agent and, in the event that such Agent shall consent to the making of such payments directly to the Lenders, to pay to such Agent any amount due for the reasonable compensation, expenses, disbursements and advances of such Agent and its agents and counsel, and any other amounts due such Agent under Section 9.05.

 

(j)   To the extent required by any applicable law, the Administrative Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding Tax.  If any payment has been made to any Lender by the Administrative Agent without the applicable withholding Tax being withheld from such payment and the Administrative Agent has paid over the applicable withholding Tax to the IRS or any other Governmental Authority, or the IRS or any other Governmental Authority asserts a claim that the Administrative Agent did not properly withhold Tax from amounts paid to or for the account of any Lender because the appropriate form was not delivered or was not properly executed or because such Lender failed to notify the Administrative Agent of a change in circumstance which rendered the exemption from, or reduction of, withholding Tax ineffective or for any other reason, such Lender shall indemnify 

 

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the Administrative Agent fully for all amounts paid, directly or indirectly, by the Administrative Agent as Tax or otherwise, including any penalties or interest and together with all expenses (including legal expenses, allocated internal costs and out-of-pocket expenses) incurred.

 

ARTICLE IX

 

MISCELLANEOUS

 

SECTION 9.01.  Notices; Electronic Communications.

 

(a)   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 fax, as follows:

 

(i) if to the Borrower, to it at SUPERVALU Inc., 250 Park Center Boulevard, P.O. Box 20, Boise, Idaho 83706, Attention: Treasurer, Fax: (208) 395-6631, with a copy to SUPERVALU Inc., 7075 Flying Cloud Drive, Eden Prairie, Minnesota 55344, Attention: Executive Vice President and General Counsel, Fax: (952) 828-4403;

 

(ii) if to the Administrative Agent, to Goldman Sachs Bank USA, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 9.01(b);

 

(iii) if to the Collateral Agent, to Goldman Sachs Bank USA, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 9.01(b); and

 

(iv) if to a Lender, to such Lender at its address (or fax number) set forth on Schedule 2.01 or in the Assignment and Acceptance pursuant to which such Lender shall have become a party hereto.

 

(b)   All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or overnight courier service or sent by fax or on the date five Business Days after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in this Section 9.01 or in accordance with the latest unrevoked direction from such party given in accordance with this Section 9.01.

 

(c)   As agreed to among the Borrower, the Administrative Agent and the applicable Lenders from time to time, notices and other communications may also be delivered by e-mail to the e-mail address of a representative of the applicable Person provided from time to time by such Person.  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 Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under Article II by electronic communication.  The Administrative Agent or the Borrower may, 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.

 

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(d)   Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the intended recipient’s receipt of the notice or communication, which shall be evidenced by an acknowledgment from the intended recipient (such as by the “delivery receipt” function, as available, return e-mail or other written acknowledgement); provided that, if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient; provided, further, that if the sender receives an “out-of-office” reply e-mail containing instructions regarding notification to another person in the intended recipient’s absence, such notice or other communication shall be deemed received upon the sender’s compliance with such instructions, 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.

 

(e)   The Borrower hereby agrees, unless directed otherwise by the Administrative Agent or unless the e-mail address referred to below has not been provided by the Administrative Agent to the Borrower, that it will, or will cause its Subsidiaries to, provide to the Administrative Agent all information, documents and other materials that it is obligated to furnish to the Administrative Agent pursuant to the Loan Documents or to the Lenders under Article V, including all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) is or relates to a Borrowing Request, a notice pursuant to Section 2.10, (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default under this Agreement or any other Loan Document or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any Borrowing or other extension of credit hereunder (all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting the Communications in an electronic/soft medium that is properly identified in a format acceptable to the Administrative Agent to an e-mail address as directed by the Administrative Agent.  In addition, the Borrower agrees, and agrees to cause its Subsidiaries, to continue to provide the Communications to the Administrative Agent or the Lenders, as the case may be, in the manner specified in the Loan Documents but only to the extent requested by the Administrative Agent.

 

(f)   The Borrower hereby acknowledges that (i) the Administrative Agent will make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, the “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (ii) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the Borrower, its Subsidiaries or their respective securities for purposes of United States federal and state securities laws) (each, a “Public Lender”).  The Borrower hereby agrees that (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, its Subsidiaries or their respective 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 Section 9.16); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated as “Public Investor;” and (z) the Administrative 

 

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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 marked as “Public Investor.” Notwithstanding the foregoing, the following Borrower Materials shall be marked “PUBLIC” and the Borrower agrees that the following documents may be distributed to all Lenders (including Public Lenders) unless, solely with respect to the documents described in clauses (B) and (C) below, the Borrower advises the Administrative Agent in writing (including by e-mail) within a reasonable time prior to their intended distribution that such material should only be distributed to Lenders other than Public Lenders (it being agreed that the Borrower and its counsel shall have been given a reasonable opportunity to review such documents and comply with applicable securities law disclosure obligations): (A) the Loan Documents; (B) administrative materials prepared by the Administrative Agent for prospective Lenders; (C) term sheets and notification of changes in the terms of the Term Facility; and (D) the Audited Financial Statements, the Deal Basis Financial Statements and the financial statements and certificates furnished pursuant to Sections 5.01(a) and 5.01(b).

 

(g)   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 Communications 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.

 

(h)   THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”.  NEITHER THE ADMINISTRATIVE AGENT NOR ANY OF ITS RELATED PARTIES WARRANTS THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM AND EACH EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS.  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 THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM.  IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED PARTIES HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER OR ANY OTHER PERSON FOR DAMAGES OF ANY KIND, WHETHER OR NOT BASED ON STRICT LIABILITY AND INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY SUCH PERSON IS FOUND IN A FINAL RULING BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH PERSON’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

(i)   The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications to the Administrative Agent for purposes of the Loan 

 

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Documents.  Each Lender agrees that receipt of notice to it (as provided in the next sentence) specifying that the Communications have been posted to the Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents.  Each Lender agrees to notify the Administrative Agent in writing (including by electronic communication) from time to time of such Lender’s e-mail address to which the foregoing notice may be sent by electronic transmission and that the foregoing notice may be sent to such e-mail address.

 

SECTION 9.02.  Survival of Agreement.  Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.  All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the Lenders and shall survive the making by the Lenders of the Loans, regardless of any investigation made by the Lenders or on their behalf, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any Fee or any other amount payable under this Agreement or any other Loan Document is outstanding and unpaid and so long as the Commitments have not been terminated.  The provisions of Sections 2.14, 2.16, 2.20 and 9.05 shall remain operative and in full force and effect regardless of the expiration of the term of this Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the Loans, the expiration of the Commitments, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on behalf of the Administrative Agent, the Collateral Agent or any Lender.

 

SECTION 9.03.  Binding Effect.  This Agreement shall become effective as provided in the Second Amendment Agreement.

 

SECTION 9.04.  Successors and Assigns.  (a)  Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of the Borrower, the other Loan Parties, the Administrative Agent, the Collateral Agent or the Lenders that are contained in this Agreement shall bind and inure to the benefit of their respective successors and assigns.

 

(b)   Each Lender may assign to one or more Eligible Assignees all or a portion of its interests, rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it), with the prior written consent of the Administrative Agent (not to be unreasonably withheld or delayed) and the Borrower (not to be unreasonably withheld or delayed); provided, however, that (i) the consent of the Borrower shall not be required to any assignment made (x) to a Lender, an Affiliate of a Lender or a Related Fund, (y) in connection with the initial syndication of the Term Facility to Persons identified by the Joint Lead Arrangers to the Borrower prior to the Second Restatement Date or (z) after the occurrence and during the continuance of any Specified Event of Default (provided, further, that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five Business Days after having received notice thereof), (ii) the consent of the Administrative Agent shall not be required to any assignment (x) made by an assigning Lender to a Related Fund of such Lender or (y) of an amount less than $1,000,000 by an assigning Lender to a Related Fund of such Lender, (iii) the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent) shall be in an integral multiple of, and not less than, $1,000,000 (or, if less, the entire remaining amount of such Lender’s Commitment or Loans of 

 

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the relevant Class); provided that simultaneous assignments by two or more Related Funds shall be combined for purposes of determining whether the minimum assignment requirement is met, (iv) the parties to each assignment shall (A) execute and deliver to the Administrative Agent an Assignment and Acceptance via an electronic settlement system acceptable to the Administrative Agent or (B) if previously agreed with the Administrative Agent, manually execute and deliver to the Administrative Agent an Assignment and Acceptance, and, in each case, shall pay to the Administrative Agent a processing and recordation fee of $3,500 (which fee may be waived or reduced in the sole discretion of the Administrative Agent); provided that only one such fee shall be payable in the event of simultaneous assignments to or from two or more Related Funds by a single Lender and (v) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire (in which the assignee shall designate one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Loan Parties and their Related Parties or their respective securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including Federal and state securities laws) and all applicable tax forms.  Upon acceptance and recording pursuant to Section 9.04(e), from and after the effective date specified in each Assignment and Acceptance, (A) the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement and (B) the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an 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 2.14, 2.16, 2.20 and 9.05, as well as to any Fees accrued for its account and not yet paid).

 

(c)   By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the assignee thereunder shall be deemed to confirm to and agree with each other and the other parties hereto as follows:  (i) such assigning Lender warrants that it is the legal and beneficial owner of the interest being assigned thereby free and clear of any adverse claim and that its Commitment and the outstanding balances of its Loans, in each case without giving effect to assignments thereof which have not become effective, are as set forth in such Assignment and Acceptance, (ii) except as set forth in clause (i) above, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement, or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto, or the financial condition of the Borrower or any Subsidiary or the performance or observance by the Borrower or any Subsidiary of any of its obligations under this Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto; (iii) such assignee represents and warrants that it is an Eligible Assignee legally authorized to enter into such Assignment and Acceptance; (iv) such assignee confirms that it has received a copy of this Agreement, together with copies of the most recent financial statements referred to in Section 3.05(a) or delivered pursuant to Section 5.01 and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (v) such assignee will independently and without reliance upon the Administrative Agent, the Collateral Agent, such assigning Lender or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (vi) such assignee appoints and authorizes the Administrative Agent and the Collateral Agent to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Administrative Agent and the 

 

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Collateral Agent, respectively, by the terms hereof, together with such powers as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their terms all the obligations which by the terms of this Agreement are required to be performed by it as a Lender.

 

(d)   The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices in New York City a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error and the Borrower, the Administrative Agent, the Collateral Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower, the Collateral Agent and any Lender (solely with respect to any entry relating to such Lender’s Loans and Commitments), at any reasonable time and from time to time upon reasonable prior notice.

 

(e)   Upon its receipt of, and consent to, a duly completed Assignment and Acceptance executed by an assigning Lender and an assignee, an Administrative Questionnaire completed in respect of the assignee (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in Section 9.04(b), if applicable, and the written consent of the Administrative Agent and, if required, the Borrower to such assignment and any applicable tax forms, the Administrative Agent shall (i) accept such Assignment and Acceptance and (ii) record the information contained therein in the Register.  No assignment shall be effective unless it has been recorded in the Register as provided in this Section 9.04(e).

 

(f)   Each Lender may, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to one or more banks or other Persons in all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided, however, that (i) no Lender shall, without the written consent of the Borrower, sell participations in Loans or Commitments to any Competitor of the Borrower, (ii) such Lender’s obligations under this Agreement shall remain unchanged, (iii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iv) the participating banks or other Persons shall be entitled to the benefit of the cost protection provisions contained in Sections 2.14, 2.16 and 2.20 to the same extent as if they were Lenders (but, with respect to any particular participant, to no greater extent than the Lender that sold the participation to such participant unless a greater payment results from a Change in Law occurring after such particular participant acquired the applicable participation or the sale of such participation was approved in writing by the Borrower), (v) 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, and such Lender shall retain the sole right to enforce the obligations of the Borrower relating to the Loans and to approve any amendment, modification or waiver of any provision of this Agreement (other than amendments, modifications or waivers decreasing any fees payable to such participating bank or Person hereunder or the amount of principal of or the rate at which interest is payable on the Loans in which such participating bank or Person has an interest, extending any scheduled principal payment date or date fixed for the payment of interest on the Loans in which such participating bank or Person has an interest, increasing or extending the Commitments in which such participating bank or Person has an interest or releasing all or substantially all of the value of the Facility Guaranty or all or substantially all of the Collateral) and (v) such Lender shall maintain a register on which it records the name and address of each participant and the principal amounts of

 

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each participant’s participating interest with respect to the Loans, Commitments or other interests hereunder, which entries shall be conclusive absent manifest error; provided, further, that no Lender shall have any obligation to disclose any portion of such register to any Person except to the extent disclosure is necessary to establish that the Loans, Commitments or other interests hereunder are in registered form for United States federal income tax purposes.  To the extent permitted by law, each participating bank or other Person also shall be entitled to the benefits of Section 9.06 as though it were a Lender, provided such participating bank or other Person agrees to be subject to Section 2.18 as though it were a Lender.

 

(g)   Any Lender or participant may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Section 9.04, disclose to the assignee or participant or proposed assignee or participant any information relating to the Borrower furnished to such Lender by or on behalf of the Borrower; provided that, prior to any such disclosure of information designated by the Borrower as confidential, each such assignee or participant or proposed assignee or participant shall execute an agreement whereby such assignee or participant shall agree (subject to customary exceptions) to preserve the confidentiality of such confidential information on terms no less restrictive than those applicable to the Lenders pursuant to Section 9.16.

 

(h)   Any Lender may at any time assign all or any portion of its rights under this Agreement to secure extensions of credit to such Lender or in support of obligations owed by such Lender; provided that no such assignment shall release a Lender from any of its obligations hereunder or substitute any such assignee for such Lender as a party hereto.

 

(i)   Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPV”), identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Loan that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPV to make any Loan and (ii) if an SPV elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPV hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPV shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPV, it will not institute against, or join any other Person in instituting against, such SPV any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof.  In addition, notwithstanding anything to the contrary contained in this Section 9.04, any SPV may (i) with notice to, but without the prior written consent of, the Borrower and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any financial institutions (consented to by the Borrower and Administrative Agent) providing liquidity and/or credit support to or for the account of such SPV to support the funding or maintenance of Loans and (ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPV.

 

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(j)   Neither the Borrower nor any Guarantor shall assign or delegate any of its rights or duties hereunder or any other Loan Document without the prior written consent of the Administrative Agent and each Lender, and any attempted assignment without such consent shall be null and void.

 

(k)   Notwithstanding anything to the contrary contained in this Section 9.04 or any other provision of this Agreement, so long as no Default or Event of Default has occurred and is continuing or would result therefrom, each Lender shall have the right at any time to sell, assign or transfer all or a portion of its Loans owing to it to the Borrower on a non-pro rata basis (provided, however, that each assignment shall be of a uniform, and not varying, percentage of all rights and obligations under and in respect of any applicable Loan), subject to the following limitations:

 

(i) The Borrower shall conduct one or more modified Dutch auctions (each, an “Auction”) to repurchase all or any portion of the Loans, provided that, (A) notice of the Auction shall be made to all Lenders and (B) the Auction shall be conducted pursuant to such procedures as the Auction Manager may establish which are consistent with this Section 9.04(k) and the Auction Procedures set forth on Exhibit Q and are otherwise reasonably acceptable to Borrower, the Auction Manager and Administrative Agent;

 

(ii) With respect to all repurchases made by the Borrower pursuant to this Section 9.04(k), (A) the Borrower shall deliver to the Auction Manager and the Administrative Agent a certificate of a Responsible Officer stating that no Default or Event of Default has occurred and is continuing or would result from such repurchase, (B) the Borrower shall not use the proceeds of any loans under the ABL Facility to acquire such Loans, (C) Loans so purchased shall not constitute a prepayment of Loans hereunder for the purposes of calculating Excess Cash Flow, (D) the assigning Lender and the Borrower shall execute and deliver to the Auction Manager and the Administrative Agent a Borrower Assignment and Acceptance and (E) no representation or warranty regarding the possession of any information that has not been disclosed to the Administrative Agent or non-Public Lenders and that may be material to a Lender’s decision to participate in such repurchase shall be required; and

 

(iii) Following repurchase by the Borrower pursuant to this Section 9.04(k), the Loans so repurchased shall, without further action by any Person, be deemed cancelled for all purposes and no longer outstanding (and may not be resold by the Borrower), for all purposes of this Agreement and all other Loan Documents, including, but not limited to (A) the making of, or the application of, any payments to the Lenders under this Agreement or any other Loan Document, (B) the making of any request, demand, authorization, direction, notice, consent or waiver under this Agreement or any other Loan Document or (C) the determination of Required Lenders, or for any similar or related purpose, under this Agreement or any other Loan Document.  In connection with any Loans repurchased and cancelled pursuant to this Section 9.04(k), the Administrative Agent is authorized to make appropriate entries in the Register to reflect any such cancellation.

 

(l)   Each Lender acknowledges that (i) the Borrower currently may have information regarding the Loan Parties, their ability to perform their Obligations or any other matter that may be material to a decision by any Lender to participate in any repurchase contemplated by Section 9.04(k) and that has not previously been disclosed to the Administrative Agent and the Lenders (“Excluded Information”), (ii) the Excluded Information may not be available to it, the 

 

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Administrative Agent or the other Lenders and (iii) it has independently and without reliance on any other party made its own analysis and determined to participate in any repurchase contemplated by Section 9.04(k) thereby notwithstanding its lack of knowledge of the Excluded Information.

 

(m)   Notwithstanding anything to the contrary contained in this Agreement, any Lender may assign all or a portion of its Loans in connection with any primary syndication of such Loans relating to any refinancing, extension, loan modification or similar transaction permitted by the terms of this Agreement, pursuant to cashless settlement mechanisms approved by the Borrower, the Administrative Agent, the assignor Lender and the assignee of such Lender.

 

SECTION 9.05.  Expenses; Indemnity.  (a)  The Borrower agrees to pay all reasonable out-of-pocket expenses incurred by the Joint Lead Arrangers, the Co-Managers, the Administrative Agent, the Collateral Agent, the Syndication Agents and the Documentation Agents in connection with the syndication of the Term Facility and, all reasonable out-of-pocket expenses incurred by the Administrative Agent and the Collateral Agent in connection with the preparation, execution and delivery and administration of this Agreement and the other Loan Documents or in connection with any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions hereby or thereby contemplated shall be consummated) or incurred by the Joint Lead Arrangers, the Co-Managers, the Administrative Agent, the Collateral Agent, Syndication Agents, the Documentation Agents or any Lender in connection with the enforcement or protection of its rights in connection with this Agreement and the other Loan Documents or in connection with the Loans made hereunder, including the fees, charges and disbursements of one primary counsel for such Persons taken as a whole (and, to the extent deemed reasonably necessary by the Administrative Agent in its good faith discretion, one local counsel in each relevant jurisdiction to the Joint Lead Arrangers, the Co-Managers, the Administrative Agent, the Collateral Agent, the Syndication Agent, the Documentation Agent and the Lenders, taken as a whole, and one special or regulatory counsel in each relevant specialty), and, solely in the case of a conflict of interest or a potential conflict of interest, one additional primary counsel (and, to the extent deemed reasonably necessary or advisable by the affected persons in their good faith discretion, one local counsel in each relevant jurisdiction and one special or regulatory counsel in each relevant specialty) to the affected persons, taken as a whole.

 

(b)   The Borrower agrees to indemnify the Joint Lead Arrangers, the Co-Managers, the Administrative Agent, the Collateral Agent, the Syndication Agent, the Documentation Agent, each Lender and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including reasonable counsel fees, charges and disbursements, incurred by or asserted against any Indemnitee arising out of, in any way connected with, or as a result of (i) the execution or delivery of this Agreement or any other Loan Document or any agreement or instrument contemplated thereby, the performance by the parties thereto of their respective obligations thereunder or the consummation of the Transactions and the other transactions contemplated thereby (including the Term Facility and the syndication thereof), (ii) the use of the proceeds of the Loans, (iii) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether or not any Indemnitee is a party thereto (and regardless of whether such matter is initiated by a third party or by the Borrower, any other Loan Party or any of their respective Affiliates or equity holders) or (iv) any actual or alleged presence or Release of Hazardous Materials on any property currently or formerly owned or operated by the Borrower or any of the Subsidiaries, or any Environmental Liability related in any way to the Borrower or the Subsidiaries; provided that such indemnity shall not, as to any Indemnitee, be available (A) to the extent that such losses, claims, damages, liabilities or related expenses are 

 

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determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted primarily from (1) the bad faith, gross negligence or willful misconduct of such Indemnitee, (2) disputes solely among Indemnitees (or their Related Persons) (other than claims against any Indemnitee (x) in its capacity or in fulfilling its role as agent or arranger or any similar role under the Term Facility or (y) arising out of any act or omission on the part of the Borrower or any of its Subsidiaries or Affiliates) or (B) in respect of legal fees or expenses of the Indemnitees, other than the reasonable invoiced fees, expenses and charges of one primary counsel for all Indemnitees taken as a whole (and, to the extent deemed reasonably necessary by the Administrative Agent in its good faith discretion, one local counsel in each relevant jurisdiction and one special or regulatory counsel in each relevant specialty), and solely in the case of a conflict of interest or a potential conflict of interest, one additional primary counsel (and, to the extent deemed reasonably necessary by the Administrative Agent in its good faith discretion, one local counsel in each relevant jurisdiction and one special or regulatory counsel in each relevant specialty) to the affected Indemnitees, taken as a whole.

 

(c)   To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent or the Collateral Agent under Sections 9.05(a) or 9.05(b), each Lender severally agrees to pay to the Administrative Agent or the Collateral Agent, as the case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent or the Collateral Agent in its capacity as such.  For purposes hereof, a Lender’s “pro rata share” shall be determined based upon its share of the sum of the outstanding Loans and unused Commitments at the time.

 

(d)   To the extent permitted by applicable law, no Loan Party shall assert, and hereby waives, any claim against any Indemnitee, and no Indemnitee shall assert, and hereby waives, any claim against any Loan Party, 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 or any agreement or instrument contemplated hereby, the Transactions, any Loan or the use of the proceeds thereof; provided  that nothing contained in this sentence will limit the indemnity obligations of any Loan Party to the extent indirect, special, punitive or consequential damages are included in any third party claim in connection with which such Indemnitee is entitled to indemnification hereunder.

 

(e)   No Indemnitee seeking indemnification or reimbursement under this Agreement will, without the Borrower’s prior written consent (not to be unreasonably withheld, delayed or conditioned), settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any claim, litigation, action, investigation or proceeding referred to herein; provided that the foregoing indemnity will apply to any such settlement in the event that (i) the Borrower was offered the ability to assume the defense of the action that was the subject matter of such settlement and elected not to so assume or (ii) such settlement is entered into more than seventy-five (75) days after receipt by the Borrower of a request by the applicable Indemnitee for reimbursement of its legal or other expenses incurred in connection with such claim, litigation, action, investigation or proceeding and the Borrower not having reimbursed such Indemnitee in accordance with such request prior to the date of such settlement (provided that the foregoing indemnity will not apply to any settlement made in accordance with this clause (ii) if the Borrower is disputing such expenses in good faith in accordance with paragraph (b) of this Section 9.05), and the foregoing indemnity will also apply to any settlement with the Borrower’s written consent or if there is a final judgment for the plaintiff against an Indemnitee in any such proceeding.

 

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(f)   Notwithstanding the foregoing, each Indemnitee (and its Related Persons) shall be obligated to refund and return promptly any and all amounts paid by the Loan Parties under Section 9.05(b) to such Indemnitee (or such Related Person) for any such fees, expenses or damages to the extent such Indemnitee (or such Related Person) is not entitled to payment of such amounts in accordance with the terms hereof, as determined by a final non-appealable judgment of a court of competent jurisdiction.

 

(g)   The provisions of this Section 9.05 shall remain operative and in full force and effect regardless of the expiration of the term of this Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the Loans, the expiration of the Commitments, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on behalf of the Administrative Agent, the Collateral Agent or any Lender.  All amounts due under this Section 9.05 shall be payable on written demand therefor.

 

SECTION 9.06.  Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from time to time, except to the extent prohibited by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing under this Agreement and other Loan Documents held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement or such other Loan Document and although such obligations may be unmatured.  The rights of each Lender under this Section 9.06 are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.

 

SECTION 9.07.  Applicable Law.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER SOUNDING 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 WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

 

SECTION 9.08.  Waivers; Amendment.  (a)  No failure or delay of the Administrative Agent, the Collateral Agent or any Lender in exercising any power or right hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Collateral Agent and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower or any other Loan Party therefrom shall in any event be effective unless the same shall be permitted by Section 9.08(b), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No notice or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances.

 

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(b)   Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders; provided, however, that no such agreement shall (i) decrease the principal amount of, or extend the maturity of or any scheduled principal payment date or date for the payment of any interest on any Loan, or waive or excuse any such payment or any part thereof, or decrease the rate of interest on any Loan, without the prior written consent of each Lender directly adversely affected thereby, (ii) increase or extend the Commitment or decrease or extend the date for payment of any Fees of any Lender without the prior written consent of such Lender, (iii) amend or modify the pro rata requirements of Section 2.17, the provisions of Section 9.04(k) or the provisions of this Section 9.08 or release all or substantially all of the value of the Facility Guaranty or all or substantially all of the Collateral, without the prior written consent of each Lender, (iv) change the provisions of any Loan Document in a manner that by its terms adversely affects the rights in respect of payments due to Lenders holding Loans of one Class differently from the rights of Lenders holding Loans of any other Class without the prior written consent of Lenders holding a majority in interest of the outstanding Loans and unused Commitments of each adversely affected Class, (v) modify the protections afforded to an SPV pursuant to the provisions of Section 9.04(i) without the written consent of such SPV, (vi) reduce the percentage contained in the definition of “Required Lenders” without the prior written consent of each Lender (it being understood that with the consent of the Required Lenders, additional extensions of credit pursuant to this Agreement may be included in the determination of the Required Lenders on substantially the same basis as the Commitments on the date hereof) or (vii) modify any other provision, if any, of this Agreement that expressly requires the consent of each Lender or each directly affected Lender without the prior written consent of each Lender; provided, further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent or the Collateral Agent hereunder or under any other Loan Document without the prior written consent of the Administrative Agent or the Collateral Agent.

 

(c)   The Administrative Agent and the Borrower may amend any Loan Document to correct administrative errors or omissions, or to effect administrative changes that are not adverse to any Lender.  Notwithstanding anything to the contrary contained herein, such amendment shall become effective without any further consent of any other party to such Loan Document.

 

SECTION 9.09.  Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section 9.09 shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or participations or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 

SECTION 9.10.  Entire Agreement.  This Agreement, the Fee Letter and the other Loan Documents constitute the entire contract between the parties relative to the subject matter hereof.  Any other previous agreement among the parties with respect to the subject matter hereof is superseded by this Agreement and the other Loan Documents.  Nothing in this Agreement or in the other Loan Documents, expressed or implied, is intended to confer upon any Person (other than the parties hereto and thereto, their respective successors and assigns permitted hereunder 

 

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and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Collateral Agent and the Lenders) any rights, remedies, obligations or liabilities under or by reason of this Agreement or the other Loan Documents.

 

SECTION 9.11.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 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, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.11.

 

SECTION 9.12.  Severability.  In the event any one or more of the provisions contained in this Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction).  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 9.13.  [Reserved].

 

SECTION 9.14.  Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

 

SECTION 9.15.  Jurisdiction; Consent to Service of Process.  (a)  The Borrower and each other Loan Party hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York County, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action 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.  Nothing in this Agreement shall affect any right that the Administrative Agent, the Collateral Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or the other Loan Documents against the Borrower or its properties in the courts of any jurisdiction if required to realize upon the Collateral as determined in good faith by the Person bringing such action or proceeding.

 

(b)   The Borrower and each other Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any New York State or Federal court.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

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(c)   Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01 excluding service of process by mail.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

SECTION 9.16.  Confidentiality.  Each of the Administrative Agent, the Collateral Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ officers, directors, employees and agents, including accountants, legal counsel, numbering, administration and settlement service providers and other advisors (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 requested or required by any regulatory authority or quasi-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) in connection with the exercise of any remedies hereunder or under the other Loan Documents or any suit, action or proceeding relating to the enforcement of its rights hereunder or thereunder, (e) subject to an agreement containing provisions substantially the same as or no less restrictive than those of this Section 9.16, to any actual or prospective assignee of or participant in any of its rights or obligations under this Agreement and the other Loan Documents, (f) with the consent of the Borrower, (g) to the extent such Information becomes publicly available other than as a result of a breach of this Section 9.16, (h) subject to an agreement containing provisions substantially the same as or no less restrictive than those of this Section 9.16, to actual or proposed direct or indirect counterparties in connection with any Swap Contract relating to the Loan Parties or their obligations or (i) disclosure to any rating agency when required by it, provided that, prior to any disclosure, such rating agency shall undertake in writing to preserve the confidentiality of any confidential information relating to Loan Parties received by it from any Agent or any Lender.  In addition, each Agent and each Lender may disclose the existence of this Agreement and the information about this Agreement to market data collectors, similar services providers to the lending industry, and service providers to the Agents and the Lenders in connection with the administration and management of this Agreement and the other Loan Documents.  For the purposes of this Section 9.16, “Information” shall mean all information received from the Borrower and related to the Borrower or its business, other than any such information that was available to the Administrative Agent, the Collateral Agent or any Lender on a nonconfidential basis prior to its disclosure by the Borrower.  Any Person required to maintain the confidentiality of Information as provided in this Section 9.16 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord its own confidential information.

 

SECTION 9.17.  Lender Action; Intercreditor Agreement.  (a)  Each Lender agrees that it shall not take or institute any actions or proceedings, judicial or otherwise, for any right or remedy against any Loan Party or any other obligor under any of the Loan Documents (including the exercise of any right of setoff, rights on account of any banker’s lien or similar claim or other rights of self-help), or institute any actions or proceedings, or otherwise commence any remedial procedures, with respect to any Collateral or any other property of any such Loan Party, unless expressly provided for herein or in any other Loan Document, without the prior written consent of the Administrative Agent.  The provisions of this Section 9.17 are for the sole benefit of the Lenders and shall not afford any right to, or constitute a defense available to, any Loan Party.

 

(b)   Each Lender that has signed this Agreement shall be deemed to have consented to and hereby irrevocably authorizes the Collateral Agent to enter into the Intercreditor Agreement (and including any and all amendments, amendments and restatements, modifications, 

 

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supplements and acknowledgments thereto) from time to time, and agree to be bound by the provisions thereof.

 

(c)   Notwithstanding anything herein to the contrary, each Lender and the Agents acknowledge that the Lien and security interest granted to the Collateral Agent pursuant to the Security Documents and the exercise of any right or remedy by the Collateral Agent thereunder, are subject to the provisions of the Intercreditor Agreement.  In the event of a conflict or any inconsistency between the terms of the Intercreditor Agreement and the Security Documents, the terms of the Intercreditor Agreement shall prevail.

 

SECTION 9.18.  USA PATRIOT Act Notice.  Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower and the Guarantors that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies the Borrower and the Guarantors, which information includes the name and address of the Borrower and the Guarantors and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower and the Guarantors in accordance with the USA PATRIOT Act.

 

SECTION 9.19.  No Fiduciary Duty.  The parties hereto hereby acknowledge that each Agent, each Joint Lead Arranger, each Co-Manager, each Syndication Agent, each Documentation Agent, each Lender and their respective Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have economic interests that conflict with those of any Loan Party, its stockholders and/or their respective Affiliates.  The Borrower agrees, on behalf of itself and each other Loan Party, that nothing in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender, on the one hand, and any Loan Party, its stockholders or their respective Affiliates on the other hand.  The Borrower acknowledges and agrees, on behalf of itself and each other Loan Party, that (a) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lenders, on the one hand, and the Loan Parties, on the other hand, and (b) in connection therewith and with the process leading thereto, (i) no Lender has assumed an advisory or fiduciary responsibility in favor of any Loan Party, with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender has advised, is currently advising or will advise any Loan Party, on other matters) or any other obligation to any Loan Party except the obligations expressly set forth in the Loan Documents and (ii) each Lender is acting solely as principal and not as the agent or fiduciary of any Loan Party.

 

The Borrower acknowledges and agrees, on behalf of itself and each other Loan Party, that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  The Borrower agrees, on behalf of itself and each other Loan Party, that it will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to any Loan Party, in connection with such transaction or the process leading thereto.

 

SECTION 9.20.  Collateral and Guarantee Matters.  Each of the Lenders irrevocably authorizes the Collateral Agent, at its option and in its discretion:

 

(a)   to release any Lien on any property granted to or held by the Collateral under any Loan Document (i) upon termination of the Commitments and payment in full of all Obligations (other than contingent, unasserted indemnification obligations) (the occurrence of the events described in this clause (i), the “Discharge of Obligations”), (ii) that is sold or otherwise disposed of or to be sold or otherwise disposed of as part of or 

 

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in connection with any sale or other disposition permitted hereunder (including, without limitation, in connection with a receivables facility described in clause (k) of the definition of Permitted Indebtedness) or under any other Loan Document and, in the case of any Lien on any Real Estate Collateral Property, which sale or other disposition is made in accordance with the requirements of Section 9.21, (iii) in connection with a release permitted by and in accordance with Section 9.21 or (iv) subject to Section 9.08, if approved, authorized or ratified in writing by the Required Lenders; and

 

(b)   to release any Guarantor from its obligations under each of the Security Agreement and the Facility 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 Collateral Agent’s authority to release its interest in particular types or items of property, or to release any Guarantor from its obligations under the Facility Guaranty pursuant to this Section 9.20. In each case as specified in this Section 9.20, 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 Security Documents, or to release such Guarantor from its obligations under the Facility Guaranty, in each case in accordance with the terms of the Loan Documents and this Section 9.20.

 

The Collateral 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, the existence, priority or perfection of the Collateral 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.

 

SECTION 9.21.  Substitution, Release and Addition of Term Loan Priority Collateral.  Subject to the terms and conditions of this Section 9.21 and the requirements of Section 5.25, the Borrower may, after the Closing Date, (i) substitute one or more fee-owned or ground leased Real Estate sites (and the Equipment located thereon owned by the Borrower or any of its Subsidiaries) as Term Loan Priority Collateral (each, a “Substitute Property”), in lieu of any one or more Real Estate Collateral Properties (each, a “Replaced Property”) and the Related Real Estate Collateral located thereon (each such substitution, once the requirements of Section 5.25 and this Section 9.21 have been satisfied with respect to such Replaced Property, a “Term Loan Priority Collateral Substitution”), provided that no such substitution shall affect the amount of time permitted for taking any action in accordance with Section 5.25, (ii) request that the Collateral Agent release its Lien on any Real Estate Collateral Property and the Related Real Estate Collateral located thereon, or on the Related Real Estate Collateral located on any Material Related Collateral Location (each, a “Release Property”) and, with respect to such Release Property, to the extent the relevant requirements of this Section 9.21 are satisfied, the Collateral Agent shall release such Lien in accordance with Section 9.20 (each, a “Term Loan Priority Collateral Release”) and (iii) add one or more fee-owned or ground leased Real Estate sites (and the Equipment located thereon owned by the Borrower or any of its Subsidiaries) or Related Real Estate Collateral on additional Material Related Collateral Locations (in each case including pursuant to the requirements of Section 5.12 or Section 5.17) (each, an “Additional Property”) as Term Loan Priority Collateral (each, a “Term Loan Priority Collateral Addition”); provided that the following conditions have been satisfied:

 

(a)   In the case of a Term Loan Priority Collateral Substitution, (i) the Administrative Agent shall have received at least 15 Business Days’ prior written notice thereof (or such shorter notice as may be approved by the Administrative Agent) identifying the proposed Substitute Property and Replaced Property, (ii) if the New Valuation Conditions are satisfied with respect to 

 

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such Substitute Property and/or Replaced Property, the Administrative Agent shall have received a New Valuation of such Substitute Property and/or Replaced Property to the extent requested by the Administrative Agent within 10 Business Days of receiving the notice described in clause (i) above, (iii) both before and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing, (iv) the Administrative Agent shall have received a Restated Collateral List after giving effect thereto, (v)(a) the aggregate Value of the Term Loan Priority Collateral set forth on such Restated Collateral List shall not be less than the Value of the Term Loan Priority Collateral on the Applicable Collateral List (prior to giving effect to such restatement), (b) the Related Real Estate Collateral on a pro forma basis after giving effect to such Term Loan Priority Collateral Substitution shall not constitute more than 45% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral and (c) the owned Real Estate Collateral Properties on a pro forma basis after giving effect to such Term Loan Priority Collateral Substitution shall constitute at least 50% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral, (vi) no fee-owned Real Estate Collateral Property shall have been replaced by a ground leased Real Estate site, (vii)  the Term Loan Priority Collateral Requirements shall have been satisfied with respect to the applicable Substitute Property and (viii) at the request of the Administrative Agent, the Administrative Agent shall have received (A) a certificate of a Responsible Officer of the Borrower (1) certifying that the requirements set forth in the foregoing clauses (i) through (vii) have been satisfied and (2) setting forth in reasonable detail the calculations described in clause (v), if applicable, all in form and substance reasonably satisfactory to the Administrative Agent, (B) a certificate of a Responsible Officer of the Borrower of the type described in Section 4.01(g)(ii) of the Original Credit Agreement, and (C) (1) a certificate of a Responsible Officer of the Borrower as to factual matters supporting the legal opinions delivered pursuant to this clause (C) and (2) a customary no conflicts opinion from Borrower’s counsel, in each case in form and substance satisfactory to the Administrative Agent, opining that the grants of security interests in the Term Loan Priority Collateral on the Restated Collateral List (after giving effect to such Term Loan Priority Collateral Substitution) will not violate the SVU Indenture or any other Material Indebtedness or trigger any of the equal and ratable sharing provisions thereof.

 

(b)   In the case of a Term Loan Priority Collateral Release, (i) the Administrative Agent shall have received at least 15 Business Days’ prior written notice thereof (or such shorter notice as may be approved by the Administrative Agent) identifying the proposed Release Property, (ii) both before and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing, (iii) unless the Term Loan Priority Collateral Release is in connection with a Permitted Disposition, if the New Valuation Conditions are satisfied with respect to such Release Property, the Administrative Agent shall have received a New Valuation of such Release Property to the extent requested by the Administrative Agent within 10 Business Days of receiving the notice described in clause (i) above, (iv) unless the Term Loan Priority Collateral Release is in connection with a Permitted Disposition, (a) the aggregate Value of the Term Loan Priority Collateral set forth on such Restated Collateral List shall not be less than the Value of the Term Loan Priority Collateral on the Applicable Collateral List (prior to giving effect to such restatement), (b) the Related Real Estate Collateral on a pro forma basis after giving effect to such Term Loan Priority Collateral Release shall not constitute more than 45% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral and (c) the owned Real Estate Collateral Properties on a pro forma basis after giving effect to such Term Loan Priority Collateral Release shall constitute at least 50% of the aggregate Value of the Real Estate Collateral Properties and the Related Real Estate Collateral, (v) the Administrative Agent shall have received a Restated Collateral List after giving effect thereto, (vi) to the extent applicable, the Borrower shall have made any payments required by Section 2.13 and (vii) the Administrative Agent shall have received an officer’s certificate of a Responsible Officer of the 

 

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Borrower (A) certifying that the requirements set forth in the foregoing clauses (i) through (vi) have been satisfied and (B) setting forth in reasonable detail the calculations described in clause (iv), if applicable, all in form and substance reasonably satisfactory to the Administrative Agent.

 

(c)   In the case of a Term Loan Priority Collateral Addition, (i) the Administrative Agent shall have received at least 15 Business Days’ prior written notice thereof (or such shorter notice as may be approved by the Administrative Agent) identifying the proposed Additional Property, (ii) if the New Valuation Conditions are satisfied with respect to such Additional Property, (at the request of the Administrative Agent) the Administrative Agent shall have received a New Valuation of such Additional Property to the extent requested by the Administrative Agent within 10 Business Days of receiving the notice described in clause (i) above, (iii) the Administrative Agent shall have received a Restated Collateral List after giving effect thereto, (iv) the Term Loan Priority Collateral Requirements shall have been satisfied with respect to the applicable Additional Property, except to the extent additional time to satisfy the Term Loan Priority Collateral Requirements is provided elsewhere in this Agreement, (v) the Administrative Agent shall have received (A) an officer’s certificate of a Responsible Officer of the Borrower certifying that the requirements set forth in the foregoing clauses (i) through (iv) have been satisfied, all in form and substance reasonably satisfactory to the Administrative Agent, (B) a certificate of a Responsible Officer of the Borrower in substantially the form of the certificate required to be delivered pursuant to Section 4.01(g)(ii) of the Original Credit Agreement and (C) (1) a certificate of a Responsible Officer of the Borrower as to factual matters supporting the legal opinions delivered pursuant to this clause (C) and (2)  a customary no conflicts opinion from Borrower’s counsel, in each case in form and substance satisfactory to the Administrative Agent, opining that the grants of security interests in the Term Loan Priority Collateral on the Restated Collateral List (after giving effect to such Term Loan Priority Collateral Addition) will not violate the SVU Indenture or any other Material Indebtedness or trigger any of the equal and ratable sharing provisions thereof.

 

SECTION 9.22.  Effect of Amendment and Restatement.  This Agreement shall, except as otherwise expressly set forth herein, supersede the First Restated Credit Agreement from and after the Second Restatement Date with respect to the Loans outstanding under the First Restated Credit Agreement as of the Second Restatement Date.  The Schedules and Exhibits to the First Restated Credit Agreement (other than any such Schedule or Exhibit that is expressly amended and restated pursuant to the Second Amendment Agreement) shall be deemed to be Schedules and Exhibits, respectively, to this Agreement, and any references in such Schedules and Exhibits to the First Restated Credit Agreement shall be deemed to refer without further amendment to this Agreement.  The parties hereto acknowledge and agree, however, that (a) this Agreement and all other Loan Documents executed and delivered herewith do not constitute a novation, payment and reborrowing or termination of the Obligations (under and as defined in the First Restated Credit Agreement) and the other Loan Documents as in effect prior to the Second Restatement Date and (b) such Obligations are in all respects continuing with only the terms being modified as provided in this Agreement and the other Loan Documents. The parties hereto further acknowledge and agree that (i) the liens and security interests in favor of the Collateral Agent for the benefit of the Secured Parties securing payment of the Obligations (under and as defined in the First Restated Credit Agreement) are in all respects continuing and in full force and effect with respect to all Obligations and (ii) all references in the other Loan Documents to the First Restated Credit Agreement shall be deemed to refer without further amendment to this Agreement.

 

[Remainder of page blank]

 

127Exhibit 10.1

EXECUTION COPY

 

 

 

CUSIP Number:  92937YAC4

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of January 31, 2014

 

among

 

 

W.P. CAREY INC.

as Borrower

 

Certain Subsidiaries of W.P. CAREY INC. identified herein,

as Guarantors

 

 

 

BANK OF AMERICA, N.A.,
 as Administrative Agent, Swing Line Lender and
 L/C Issuer

 

and

 

JPMORGAN CHASE BANK, N.A.,
 as Syndication Agent

 

and

 

The Other Lenders Party Hereto

 

and

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

and

J.P. MORGAN SECURITIES, LLC,
 as Joint Lead Arrangers and Joint Bookrunners

 

and

 

BARCLAYS BANK PLC,
 CITIBANK, N.A.,
 U.S. BANK NATIONAL ASSOCIATION and
 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as Documentation Agents

 

and

 

CAPITAL ONE, NATIONAL ASSOCIATION 
 and REGIONS BANK,
 as Senior Managing Agents

 

and

 

FIFTH THIRD BANK,
 PNC BANK NATIONAL ASSOCIATION
 and RBS CITIZENS, N.A.,
 as Managing Agents

 

 

 

TABLE OF CONTENTS

 

	
Section
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE I
    	
 
    	
 
    
	
DEFINITIONS AND ACCOUNTING TERMS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
1.01
    	
 
    	
Defined Terms
    	
 
    	
6
    
	
1.02
    	
 
    	
Other Interpretive Provisions
    	
 
    	
51
    
	
1.03
    	
 
    	
Accounting Terms
    	
 
    	
52
    
	
1.04
    	
 
    	
Rounding
    	
 
    	
53
    
	
1.05
    	
 
    	
Times of Day
    	
 
    	
53
    
	
1.06
    	
 
    	
Letter of Credit Amounts
    	
 
    	
53
    
	
1.07
    	
 
    	
Exchange Rates; Currency Equivalents
    	
 
    	
53
    
	
1.08
    	
 
    	
Additional Alternative Currencies
    	
 
    	
54
    
	
1.09
    	
 
    	
Change of Currency
    	
 
    	
55
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE II
    	
 
    	
 
    
	
THE COMMITMENTS AND CREDIT EXTENSIONS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
2.01
    	
 
    	
The Loans
    	
 
    	
56
    
	
2.02
    	
 
    	
Borrowings, Conversions and Continuations of Loans
    	
 
    	
57
    
	
2.03
    	
 
    	
Competitive Loans
    	
 
    	
59
    
	
2.04
    	
 
    	
Letters of Credit
    	
 
    	
62
    
	
2.05
    	
 
    	
Swing Line Loans
    	
 
    	
72
    
	
2.06
    	
 
    	
Prepayments
    	
 
    	
75
    
	
2.07
    	
 
    	
Termination or Reduction of Commitments
    	
 
    	
77
    
	
2.08
    	
 
    	
Repayment of Loans
    	
 
    	
78
    
	
2.09
    	
 
    	
Interest
    	
 
    	
79
    
	
2.10
    	
 
    	
Fees
    	
 
    	
79
    
	
2.11
    	
 
    	
Computation of Interest and Fees; Retroactive   Adjustments of Applicable Rate
    	
 
    	
80
    
	
2.12
    	
 
    	
Evidence of Debt
    	
 
    	
81
    
	
2.13
    	
 
    	
Payments Generally; Administrative Agent’s Clawback
    	
 
    	
81
    
	
2.14
    	
 
    	
Sharing of Payments by Lenders
    	
 
    	
84
    
	
2.15
    	
 
    	
Extensions of Maturity Dates
    	
 
    	
85
    
	
2.16
    	
 
    	
Increase in Commitments
    	
 
    	
86
    
	
2.17
    	
 
    	
Cash Collateral
    	
 
    	
88
    
	
2.18
    	
 
    	
Defaulting Lenders
    	
 
    	
89
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE III
    	
 
    	
 
    
	
TAXES, YIELD PROTECTION AND ILLEGALITY
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
3.01
    	
 
    	
Taxes
    	
 
    	
92
    
	
3.02
    	
 
    	
Illegality
    	
 
    	
97
    
	
3.03
    	
 
    	
Inability to Determine Rates
    	
 
    	
97
    
	
3.04
    	
 
    	
Increased Costs; Reserves on Eurocurrency Rate Loans
    	
 
    	
98
    
	
3.05
    	
 
    	
Compensation for Losses
    	
 
    	
100
    

 

 

	
3.06
    	
 
    	
Mitigation Obligations; Replacement of Lenders
    	
 
    	
101
    
	
3.07
    	
 
    	
Survival
    	
 
    	
101
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IV
    	
 
    	
 
    
	
CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
4.01
    	
 
    	
Conditions of Effectiveness
    	
 
    	
101
    
	
4.02
    	
 
    	
Conditions to All Credit Extensions
    	
 
    	
104
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE V
    	
 
    	
 
    
	
REPRESENTATIONS AND WARRANTIES
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
5.01
    	
 
    	
Existence, Qualification and Power
    	
 
    	
105
    
	
5.02
    	
 
    	
Authorization; No Contravention
    	
 
    	
105
    
	
5.03
    	
 
    	
Governmental Authorization; Other Consents
    	
 
    	
106
    
	
5.04
    	
 
    	
Binding Effect
    	
 
    	
106
    
	
5.05
    	
 
    	
Financial Statements; No Material Adverse Effect
    	
 
    	
106
    
	
5.06
    	
 
    	
Litigation
    	
 
    	
106
    
	
5.07
    	
 
    	
No Default
    	
 
    	
107
    
	
5.08
    	
 
    	
Ownership of Property; Liens
    	
 
    	
107
    
	
5.09
    	
 
    	
Environmental Compliance
    	
 
    	
107
    
	
5.10
    	
 
    	
Taxes
    	
 
    	
107
    
	
5.11
    	
 
    	
ERISA Compliance
    	
 
    	
107
    
	
5.12
    	
 
    	
Subsidiaries; Equity Interests; Loan Parties
    	
 
    	
108
    
	
5.13
    	
 
    	
Margin Regulations; Investment Company Act
    	
 
    	
109
    
	
5.14
    	
 
    	
Disclosure
    	
 
    	
109
    
	
5.15
    	
 
    	
Compliance with Laws
    	
 
    	
109
    
	
5.16
    	
 
    	
Intellectual Property; Licenses, Etc.
    	
 
    	
109
    
	
5.17
    	
 
    	
Solvency
    	
 
    	
109
    
	
5.18
    	
 
    	
Casualty, Etc.
    	
 
    	
110
    
	
5.19
    	
 
    	
SEC Reports
    	
 
    	
110
    
	
5.20
    	
 
    	
Anti-Money Laundering; Sanctions
    	
 
    	
110
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VI
    	
 
    	
 
    
	
AFFIRMATIVE COVENANTS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6.01
    	
 
    	
Financial Statements
    	
 
    	
110
    
	
6.02
    	
 
    	
Certificates; Other Information
    	
 
    	
111
    
	
6.03
    	
 
    	
Notices
    	
 
    	
113
    
	
6.04
    	
 
    	
Payment of Obligations
    	
 
    	
114
    
	
6.05
    	
 
    	
Preservation of Existence, Etc.
    	
 
    	
114
    
	
6.06
    	
 
    	
Maintenance of Properties
    	
 
    	
115
    
	
6.07
    	
 
    	
Maintenance of Insurance
    	
 
    	
115
    
	
6.08
    	
 
    	
Compliance with Laws
    	
 
    	
115
    
	
6.09
    	
 
    	
Books and Records
    	
 
    	
115
    
	
6.10
    	
 
    	
Inspection Rights
    	
 
    	
115
    
	
6.11
    	
 
    	
Use of Proceeds
    	
 
    	
116
    

 

2
 

 

	
6.12
    	
 
    	
Additional Guarantors
    	
 
    	
116
    
	
6.13
    	
 
    	
Compliance with Environmental Laws
    	
 
    	
116
    
	
6.14
    	
 
    	
Distributions in the Ordinary Course
    	
 
    	
116
    
	
6.15
    	
 
    	
Company Status
    	
 
    	
117
    
	
6.16
    	
 
    	
Further Assurances
    	
 
    	
117
    
	
6.17
    	
 
    	
Compliance with Terms of Leaseholds
    	
 
    	
117
    
	
6.18
    	
 
    	
Material Contracts
    	
 
    	
117
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VII
    	
 
    	
 
    
	
NEGATIVE COVENANTS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
7.01
    	
 
    	
Liens
    	
 
    	
118
    
	
7.02
    	
 
    	
Indebtedness
    	
 
    	
118
    
	
7.03
    	
 
    	
Investments
    	
 
    	
118
    
	
7.04
    	
 
    	
Fundamental Changes
    	
 
    	
119
    
	
7.05
    	
 
    	
Dispositions
    	
 
    	
120
    
	
7.06
    	
 
    	
Restricted Payments
    	
 
    	
120
    
	
7.07
    	
 
    	
Change in Nature of Business
    	
 
    	
121
    
	
7.08
    	
 
    	
Transactions with Affiliates
    	
 
    	
121
    
	
7.09
    	
 
    	
Amendments of Organizational Documents
    	
 
    	
121
    
	
7.10
    	
 
    	
Use of Proceeds
    	
 
    	
121
    
	
7.11
    	
 
    	
Financial Covenants
    	
 
    	
122
    
	
7.12
    	
 
    	
Prepayments, Etc. of Indebtedness
    	
 
    	
122
    
	
7.13
    	
 
    	
Fiscal Year Changes
    	
 
    	
123
    
	
7.14
    	
 
    	
Sanctions
    	
 
    	
123
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VIII
    	
 
    	
 
    
	
EVENTS OF DEFAULT AND REMEDIES
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
8.01
    	
 
    	
Events of Default
    	
 
    	
123
    
	
8.02
    	
 
    	
Remedies Upon Event of Default
    	
 
    	
125
    
	
8.03
    	
 
    	
Application of Funds
    	
 
    	
126
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IX
    	
 
    	
 
    
	
ADMINISTRATIVE AGENT
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
9.01
    	
 
    	
Appointment and Authority
    	
 
    	
127
    
	
9.02
    	
 
    	
Rights as a Lender
    	
 
    	
127
    
	
9.03
    	
 
    	
Exculpatory Provisions
    	
 
    	
127
    
	
9.04
    	
 
    	
Reliance by Administrative Agent
    	
 
    	
128
    
	
9.05
    	
 
    	
Delegation of Duties
    	
 
    	
128
    
	
9.06
    	
 
    	
Resignation of Administrative Agent
    	
 
    	
129
    
	
9.07
    	
 
    	
Non-Reliance on Administrative Agent and Other   Lenders
    	
 
    	
130
    
	
9.08
    	
 
    	
No Other Duties, Etc.
    	
 
    	
130
    
	
9.09
    	
 
    	
Administrative Agent May File Proofs of Claim
    	
 
    	
131
    
	
9.10
    	
 
    	
Guaranty Matters
    	
 
    	
131
    

 

3
 

 

	
ARTICLE X
    	
 
    	
 
    
	
CONTINUING GUARANTY
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
10.01
    	
 
    	
Guaranty
    	
 
    	
131
    
	
10.02
    	
 
    	
Rights of Lenders
    	
 
    	
132
    
	
10.03
    	
 
    	
Certain Waivers
    	
 
    	
132
    
	
10.04
    	
 
    	
Obligations Independent
    	
 
    	
133
    
	
10.05
    	
 
    	
Subrogation
    	
 
    	
133
    
	
10.06
    	
 
    	
Termination; Reinstatement
    	
 
    	
133
    
	
10.07
    	
 
    	
Subordination
    	
 
    	
134
    
	
10.08
    	
 
    	
Stay of Acceleration
    	
 
    	
134
    
	
10.09
    	
 
    	
Condition of Loan Parties
    	
 
    	
134
    
	
10.10
    	
 
    	
Releases of Guarantors
    	
 
    	
135
    
	
10.11
    	
 
    	
Contribution
    	
 
    	
136
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE XI
    	
 
    	
 
    
	
MISCELLANEOUS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
11.01
    	
 
    	
Amendments, Etc.
    	
 
    	
137
    
	
11.02
    	
 
    	
Notices; Effectiveness; Electronic Communications
    	
 
    	
139
    
	
11.03
    	
 
    	
No Waiver; Cumulative Remedies; Enforcement
    	
 
    	
142
    
	
11.04
    	
 
    	
Expenses; Indemnity; Damage Waiver
    	
 
    	
142
    
	
11.05
    	
 
    	
Payments Set Aside
    	
 
    	
144
    
	
11.06
    	
 
    	
Successors and Assigns
    	
 
    	
145
    
	
11.07
    	
 
    	
Treatment of Certain Information; Confidentiality
    	
 
    	
150
    
	
11.08
    	
 
    	
Right of Setoff
    	
 
    	
151
    
	
11.09
    	
 
    	
Interest Rate Limitation
    	
 
    	
151
    
	
11.10
    	
 
    	
Counterparts; Effectiveness
    	
 
    	
151
    
	
11.11
    	
 
    	
Survival of Representations and Warranties
    	
 
    	
152
    
	
11.12
    	
 
    	
Severability
    	
 
    	
152
    
	
11.13
    	
 
    	
Replacement of Lenders
    	
 
    	
152
    
	
11.14
    	
 
    	
Governing Law; Jurisdiction; Etc.
    	
 
    	
153
    
	
11.15
    	
 
    	
WAIVER OF JURY TRIAL
    	
 
    	
154
    
	
11.16
    	
 
    	
No Advisory or Fiduciary Responsibility
    	
 
    	
155
    
	
11.17
    	
 
    	
Electronic Execution of Assignments and Certain   Other Documents
    	
 
    	
155
    
	
11.18
    	
 
    	
USA PATRIOT Act
    	
 
    	
155
    
	
11.19
    	
 
    	
Judgment Currency
    	
 
    	
156
    
	
11.20
    	
 
    	
ENTIRE AGREEMENT
    	
 
    	
156
    
	
11.21
    	
 
    	
Original Notes
    	
 
    	
156
    
	
11.22
    	
 
    	
Amendment and Restatement
    	
 
    	
157
    

 

4
 

 

	
SCHEDULES
    	
 
    
	
 
    	
 
    
	
1.01(A)
    	
Managed REITs
    
	
1.01(B)
    	
Existing Letters   of Credit
    
	
2.01
    	
Commitments and   Applicable Percentages
    
	
5.11(d)
    	
ERISA
    
	
5.12
    	
Subsidiaries and   Other Equity Investments; Loan Parties
    
	
7.02
    	
Existing   Indebtedness
    
	
11.02
    	
Administrative   Agent’s Office, Certain Addresses for Notices
    
	
 
    	
 
    
	
 
    	
 
    
	
EXHIBITS
    	
 
    
	
 
    	
 
    
	
Form of
    	
 
    
	
 
    	
 
    
	
A
    	
Loan Notice
    
	
B-1
    	
Competitive Bid   Request
    
	
B-2
    	
Competitive Bid
    
	
B-3
    	
Competitive Loan   Note
    
	
C
    	
Swing Line Loan   Notice
    
	
D-1
    	
Term Note
    
	
D-2
    	
Revolving Credit   Note
    
	
E
    	
Compliance   Certificate
    
	
F-1
    	
Assignment and   Assumption
    
	
F-2
    	
Administrative   Questionnaire
    
	
G
    	
Joinder   Agreement
    
	
H
    	
Solvency   Certificate
    
	
I
    	
United States   Tax Compliance Certificate
    
	
J
    	
Supplemental   Addendum
    

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) is entered into as of January 31, 2014, among W.P. Carey Inc. (together with its permitted successors and assigns, the “Company” or the “Borrower”), certain Subsidiaries of the Company identified herein, as guarantors, each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

PRELIMINARY STATEMENTS:

 

WHEREAS, the Company, certain Guarantors, the Administrative Agent and certain Lenders party hereto are party to a certain Amended and Restated Credit Agreement, dated as of February 17, 2012, as amended through but excluding the date hereof (as so amended, the “Original Credit Agreement”); and

 

5

 

 

WHEREAS, the parties hereto desire to amend and restate the Original Credit Agreement in its entirety, but not as a novation, on the terms and subject to the conditions hereinafter set forth;

 

In consideration of the mutual covenants and agreements herein contained, the parties hereto hereby agree that the Original Credit Agreement shall be, and hereby is, amended and restated in its entirety as follows, effective on and as of the Closing Date and hereby further 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:

 

“Absolute Rate” means a fixed rate of interest expressed in multiples of 1/100th of one basis point.

 

“Absolute Rate Loan” means a Competitive Loan that bears interest at a rate determined with reference to an Absolute Rate.

 

“Acquisition” means the acquisition of all of the Equity Interests of CPA®:16 by the Company pursuant to the Agreement and Plan of Merger dated as of July 25, 2013.

 

“Acquisition Documents” means each agreement, certificate, instrument, letter or other document related thereto (including in each case each exhibit, schedule, annex or attachment thereto) executed and delivered in connection with the Acquisition.

 

“Adjusted Funds From Operations” means a modified computation of NAREIT defined FFO as reported by the Company on the SEC’s website; provided that for purposes of determining compliance with Section 7.06(b), Adjusted Funds From Operations shall exclude impairment charges, charges from the early extinguishment of indebtedness, deferred income tax benefits or expenses, gains or losses from deconsolidation of Subsidiaries, amortization of intangibles, unrealized foreign exchange gains or losses and other non-cash or non-recurring charges not already excluded under NAREIT defined FFO as evidenced by a certification of a Responsible Officer of the Company containing calculations in reasonable detail satisfactory to the Administrative Agent.  Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect Adjusted Funds From Operations on the same basis.

 

“Adjusted Management EBITDA” means, for any period, an amount equal to:

 

(a)        Management EBITDA during such period; minus

 

(b)        structuring revenues earned by the Company and its Subsidiaries during such period in excess of 35% of management revenues earned by the Company and its Subsidiaries (as described in clause (a) of the definition of Management EBITDA) during such period; minus

 

6
 

 

(c)        distributions in cash received by the Company and its Subsidiaries in respect of equity in managed funds and Managed REITs during such period.

 

“Adjusted Property EBITDA” means, for any period, an amount equal to:

 

(a)        Property EBITDA during such period; plus

 

(b)        the Loan Parties’ pro rata share of Total G&A Expense; minus

 

(c)        EBITDA during such period in respect of Properties owned by the Company or one of its Subsidiaries for fewer than four fiscal quarters.

 

“Adjusted Total EBITDA” means, for any period, an amount equal to:

 

(a)        EBITDA of the Company and its Subsidiaries during such period; plus

 

(b)        Joint Venture EBITDA for such period; minus

 

(c)        revenues earned by the Company and its Subsidiaries in equity (if any) of managed funds and Managed REITs under management/advisory contracts; minus

 

(d)       structuring revenues earned by the Company and its Subsidiaries during such period in excess of 35% of management revenues earned by the Company and its Subsidiaries (as described in clause (a) of the definition of Management EBITDA) during such period; plus

 

(e)        distributions in cash received by the Company and its Subsidiaries in respect of equity in managed funds and Managed REITs during such period.

 

“Administrative Agent” means Bank of America in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

 

“Administrative Agent’s Office” means, with respect to any currency, the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 11.02 with respect to such currency, or such other address or account with respect to such currency as the Administrative Agent may from time to time notify to the Company and the Lenders.

 

“Administrative Questionnaire” means an Administrative Questionnaire in substantially the form of Exhibit F-2 or any other form approved by the Administrative Agent.

 

“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.

 

“Aggregate Alternative Currency Tranche Commitments” means, at any time, the aggregate amount of the Lenders’ Alternative Currency Tranche Commitments at such time.

 

“Aggregate Commitments” means, at any time, the aggregate amount of the Lenders’ Revolving Credit Commitments and Term Commitments at such time.

 

7
 

 

“Aggregate Dollar Tranche Commitments” means, at any time, the aggregate amount of the Lenders’ Dollar Tranche Commitments at such time.

 

“Agreement” means this Credit Agreement.

 

“Alternative Currency” means each of Euro, Sterling, Yen, Hong Kong Dollars, Canadian Dollars, Swiss Francs and Australian Dollars.

 

“Alternative Currency Equivalent” means, at any time, with respect to any amount denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as determined by the Administrative Agent or the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of such Alternative Currency with Dollars.

 

“Alternative Currency Sublimit” means an amount equal to the lesser of (a) $250,000,000 and (b) the Revolving Credit Facility.  The Alternative Currency Sublimit is part of, and not in addition to, the Revolving Credit Facility.

 

“Alternative Currency Tranche” means, at any time, Alternative Currency Tranche Commitments of all the Lenders.

 

“Alternative Currency Tranche Commitment” means, as to each Lender, its obligation to make Revolving Credit Loans to the Borrower pursuant to Section 2.01(b)(ii), in Dollars and Alternative Currencies in an aggregate principal amount for each such Alternative Currency not to exceed the Dollar amount (if any) set forth opposite such Lender’s name on Schedule 2.01 under the caption “Acceptable Alternative Currencies” or opposite such caption in the Assignment and Assumption or New Lender Joinder Agreement pursuant to which such Lender becomes a party hereto, in an aggregate principal amount for all such  Revolving Credit Loans at any one time outstanding not to exceed the Dollar amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Alternative Currency Tranche Commitment” or under such caption in the Assignment and Assumption or New Lender Joinder Agreement pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be increased by such Lender pursuant to Section 2.16 or otherwise adjusted from time to time in accordance with this Agreement.

 

“Alternative Currency Tranche Lender” means any Person that is a Lender hereunder in respect of the Alternative Currency Tranche in its capacity as a Lender in respect of such Tranche.

 

“Alternative Currency Tranche Loan” has the meaning specified in Section 2.01(b)(ii).

 

“Applicable Percentage” means (a) with respect to any Term Lender at any time, the percentage (carried out to the ninth decimal place) of the Term Facility represented by (i) on or prior to the Closing Date, such Term Lender’s Term Commitment at such time and (ii) thereafter, the principal amount of such Term Lender’s Term Loans at such time and (b) in respect of the Revolving Credit Facility, with respect to any Revolving Credit Lender at any time, the percentage (carried out to the ninth decimal place) of the Revolving Credit Facility represented by such Revolving Credit Lender’s Revolving Credit Commitment at such time,

 

8
 

 

subject to adjustment as provided in Section 2.16.  If the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02, or if all Commitments in respect of either Facility have expired, then the Applicable Percentage of each Lender in respect of the applicable Facility shall be determined based on the Applicable Percentage of such Lender in respect of such Facility most recently in effect, giving effect to any subsequent assignments.  The initial Applicable Percentage of each Lender in respect of each Facility is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption or New Lender Joinder Agreement pursuant to which such Lender becomes a party hereto, as applicable.

 

“Applicable Rate” means, for any day, with respect to any Eurocurrency Loan, Base Rate Loan, Letter of Credit Fee, Facility Fee and Unused Fee, as the case may be:

 

(a)        at all times on and after the Investment Grade Pricing Effective Date, the applicable rate per annum set forth below, based upon such Debt Ratings as set forth below applicable on such date (the “Ratings-Based Applicable Rate”):

 

	
Pricing
   Level

 
    	
Debt Ratings
   (S&P and
   Fitch /
   Moody’s):

 
    	
 

Revolving   Credit Facility

 
    	
 

Term   Facility

 
    
	
Eurocurrency
   Loans and
   Letters of
   Credit

 
    	
Base Rate
   Loans

 
    	
Facility
   Fee

 
    	
Eurocurrency
   Loans

 
    	
Base Rate
   Loans

 
    
	
Category 1

 
    	
A- / A3 or better

 
    	
0.925%

 
    	
0.00%

 
    	
0.125%

 
    	
1.00%

 
    	
0.00%

 
    
	
Category 2

 
    	
BBB+ / Baa1

 
    	
1.00%

 
    	
0.00%

 
    	
0.15%

 
    	
1.10%

 
    	
0.10%

 
    
	
Category 3

 
    	
BBB / Baa2

 
    	
1.10%

 
    	
0.10%

 
    	
0.20%

 
    	
1.25%

 
    	
0.25%

 
    
	
Category 4

 
    	
BBB- / Baa3

 
    	
1.30%

 
    	
0.30%

 
    	
0.25%

 
    	
1.50%

 
    	
0.50%

 
    
	
Category 5

 
    	
Lower than
   BBB- / Baa3

 
    	
1.70%

 
    	
0.70%

 
    	
0.30%

 
    	
1.95%

 
    	
0.95%

 
    

 

For purposes of the foregoing, (i) if a Debt Rating is issued by only two of S&P, Moody’s and Fitch, and such Debt Ratings are split, then the higher of such Debt Ratings shall apply, unless there is a split in Debt Ratings of more than one level, in which case the level that is one level lower than the higher Debt Rating shall apply, and (ii) if a Debt Rating is issued by all three of S&P, Moody’s and Fitch, and such Debt Ratings are split, then the higher of such Debt Ratings shall apply, unless there is a split in Debt Ratings of more than one level between the highest and lowest such Debt Ratings, in which case the level that is the average of the two highest such Debt Ratings shall apply, and if such average is not a recognized rating category, then the level of the second highest Debt Rating of the three shall apply.  Initially, the Ratings-Based Applicable Rate shall be determined based upon the Debt Ratings specified in the certificate delivered pursuant to clause (ii) of the definition of “Investment Grade Pricing Effective Date”.  Thereafter, each change in the Ratings-Based Applicable Rate resulting from a publicly announced change in a Debt Rating shall be effective, in the case of an upgrade, during the

 

9
 

 

period commencing on the date of delivery by the Company to the Administrative Agent of notice thereof pursuant to Section 6.03(e) and ending on the date immediately preceding the effective date of the next such change and, in the case of a downgrade, during the period commencing on the date of the public announcement thereof and ending on the date immediately preceding the effective date of the next such change.  If the rating system of Moody’s, S&P or Fitch shall change, or if any such rating agency shall cease to be in the business of rating companies or corporate debt obligations, the Company and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be determined by reference to the rating most recently in effect prior to such change or cessation; or

 

(b)        until the Investment Grade Pricing Effective Date, the applicable rate per annum set forth below, based upon the range into which the Leverage Ratio then falls in accordance with the following table (the “Leverage-Based Applicable Rate”):

 

	
Pricing
   Level

 
    	
Leverage Ratio:

 
    	
Revolving Credit Facility

 
    	
Term Facility

 
    
	
Eurocurrency
   Loans and
   Letters of
   Credit

 
    	
Base
   Rate
   Loans

 
    	
Unused
   Fee

 
    	
Eurocurrency
   Loans

 
    	
Base
   Rate
   Loans

 
    
	
Category 1

 
    	
< 45%

 
    	
1.50%

 
    	
0.50%

 
    	
0.25%

 
    	
1.45%

 
    	
0.45%

 
    
	
Category 2

 
    	
> 45% but < 50%

 
    	
1.65%

 
    	
0.65%

 
    	
0.25%

 
    	
1.60%

 
    	
0.60%

 
    
	
Category 3

 
    	
> 50% but < 55%

 
    	
1.85%

 
    	
0.85%

 
    	
0.30%

 
    	
1.80%

 
    	
0.80%

 
    
	
Category 4

 
    	
> 55%

 
    	
2.05%

 
    	
1.05%

 
    	
0.35%

 
    	
2.00%

 
    	
1.00%

 
    

 

The Leverage Ratio shall be determined as of the end of each fiscal quarter based on the financial statements and related Compliance Certificate delivered pursuant to Section 6.01 and Section 6.02, respectively, in respect of such fiscal quarter, and each change in rates resulting from a change in the Leverage Ratio shall be effective from and including the day when the Administrative Agent receives such financial statements and related Compliance Certificate indicating such change but excluding the effective date of the next such change.  Notwithstanding the foregoing, if either the financial statements or related Compliance Certificate are not delivered when due in accordance with Section 6.01 and Section 6.02, respectively, then the highest pricing shall apply as of the first Business Day after the date on which such financial statements and related Compliance Certificate were required to have been delivered and shall continue to apply until the first Business Day immediately following the date such financial statements and related Compliance Certificate are delivered in accordance with Section 6.01 and Section 6.02, respectively, whereupon the Applicable Rate shall be adjusted based upon the calculation of the Leverage Ratio contained in such Compliance Certificate.  The Applicable Rate in effect from the Closing Date through the first Business Day immediately following the date financial statements and a Compliance Certificate are required to be delivered

 

10
 

 

pursuant to Section 6.01 and Section 6.02, respectively, for the fiscal year ending December 31, 2013 shall be Category 1.

 

Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.11(b).

 

“Applicable Revolving Credit Percentage” means with respect to any Revolving Credit Lender at any time, such Revolving Credit Lender’s Applicable Percentage in respect of the Revolving Credit Facility at such time.

 

“Applicable Time” means, with respect to any borrowings and payments in any Alternative Currency, the local time in the place of settlement for such Alternative Currency as may be determined by the Administrative Agent or the L/C Issuer, as the case may be, to be necessary for timely settlement on the relevant date in accordance with normal banking procedures in the place of payment.

 

“Applicable Tranche Percentage” means, at any time, with respect to any Alternative Currency Tranche Lender and any currency with respect to which such Alternative Currency Tranche Lender holds an Alternative Currency Tranche Commitment, (a) in the case of a Revolving Credit Borrowing denominated in such currency, the quotient (expressed as a percentage carried out to the ninth decimal place) of (i) the lesser of (x) such Alternative Currency Tranche Lender’s unfunded Alternative Currency Tranche Commitment with respect to such currency and (y) such Alternative Currency Tranche Lender’s unfunded Alternative Currency Tranche Commitment divided  by (ii) the lesser of (x) the aggregate amount of unfunded Alternative Currency Tranche Commitments with respect to such currency of all Revolving Credit Lenders and (y) the aggregate amount of unfunded Alternative Currency Tranche Commitments of all Revolving Credit Lenders and (b) in the case of any payment or prepayment of a Revolving Credit Loan denominated in such currency, the quotient of (i) the aggregate outstanding amount of Alternative Currency Tranche Loans denominated in such currency made by such Alternative Currency Tranche Lender divided  by (ii) the aggregate outstanding amount of Alternative Currency Tranche Loans denominated in such currency made by all Alternative Currency Tranche Lenders.  If the commitment of each Revolving Credit Lender to make Revolving Credit Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02, or if all Aggregate Alternative Currency Tranche Commitments have expired, then the Applicable Tranche Percentage of such Alternative Currency Tranche Lender shall be determined based on the Applicable Tranche Percentage of such Lender most recently in effect, giving effect to any subsequent assignments.

 

“Appropriate Lender” means, at any time, (a) with respect to the Term Facility or the Revolving Credit Facility, a Lender that has a Commitment with respect to such Facility or holds a Term Loan or a Revolving Credit Loan, respectively, at such time, (b) with respect to the Letter of Credit Sublimit, (i) the L/C Issuer and (ii) if any Letters of Credit have been issued pursuant to Section 2.04(a), the Revolving Credit Lenders, (c) with respect to the Swing Line Sublimit, (i) the Swing Line Lender and (ii) if any Swing Line Loans are outstanding pursuant to Section 2.05(a), the Revolving Credit Lenders, (d) with respect to the Dollar Tranche, a Revolving Credit Lender that has a Dollar Tranche Commitment and (e) with respect to the

 

11
 

 

Alternative Currency Tranche, a Revolving Credit Lender that has an Alternative Currency Tranche Commitment.

 

“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.

 

“Arrangers” means Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities, LLC, each in its capacity as a lead arranger and bookrunner.

 

“Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor.

 

“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 F-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 Company and its Subsidiaries for the fiscal year ended December 31, 2012, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Company and its Subsidiaries, including the notes thereto.

 

“Authorizing Lender” has the meaning specified in Section 1.08.

 

“Availability Period” means the period from and including the Closing Date to the earliest of (i) the Maturity Date, (ii) the date of termination of the Revolving Credit Commitments pursuant to Section 2.07, and (iii) the date of termination of the commitment of each Revolving Credit Lender to make Revolving Credit Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02.

 

“Bank of America” means Bank of America, N.A. and its successors.

 

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1% (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) the Eurocurrency Rate plus 1.00%.  The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or

 

12
 

 

below such announced rate.  Any change in such prime rate announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change.

 

“Base Rate Loan” means a Revolving Credit Loan or a Term Loan that bears interest based on the Base Rate.  All Base Rate Loans shall be denominated in Dollars.

 

“Borrower” has the meaning specified in the preamble hereto.

 

“Borrower Materials” has the meaning specified in Section 6.02.

 

“Borrowing” means a Revolving Credit Borrowing, a Swing Line Borrowing, a Competitive Borrowing, or a Term Borrowing, as the context may require.

 

“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 with respect to Obligations denominated in Dollars is located and:

 

(a)        if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in Dollars, any fundings, disbursements, settlements and payments in Dollars in respect of any such Eurocurrency Rate Loan, or any other dealings in Dollars to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means any such day that is also a London Banking Day;

 

(b)        if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in Euro, any fundings, disbursements, settlements and payments in Euro in respect of any such Eurocurrency Rate Loan, or any other dealings in Euro to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means a TARGET Day;

 

(c)        if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in a currency other than Dollars or Euro, means any such day on which dealings in deposits in the relevant currency are conducted by and between banks in the London or other applicable offshore interbank market for such currency; and

 

(d)       if such day relates to any fundings, disbursements, settlements and payments in a currency other than Dollars or Euro in respect of a Eurocurrency Rate Loan denominated in a currency other than Dollars or Euro, or any other dealings in any currency other than Dollars or Euro to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan (other than any interest rate settings), means any such day on which banks are open for foreign exchange business in the principal financial center of the country of such currency.

 

“Capital Expenditures” means, with respect to any Person for any period, 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).

 

13

 

 

“Capitalization Rate” means seven and one-half percent (7.50%).

 

“Capitalized Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases.

 

“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Administrative Agent, L/C Issuer or Swing Line Lender (as applicable) and the Lenders, as collateral for L/C Obligations, Obligations in respect of Swing Line Loans, or obligations of Lenders to fund participations in respect of either thereof (as the context may require), cash or deposit account balances or, if the Administrative Agent, the L/C Issuer and Swing Line Lender shall agree in their sole discretion, other credit support, in each case, pursuant to documentation in form and substance satisfactory to, and in such currencies, in the case of L/C Obligations denominated in an Alternative Currency, as may be requested by (a) the Administrative Agent and (b) the L/C Issuer or the Swing Line Lender (as applicable).  “Cash Collateral” has a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

 

“Cash and Cash Equivalents” means unrestricted (a) cash, (b) marketable direct obligations issued or unconditionally guaranteed by the United States government (or any other sovereign nation with an equivalent rating by S&P or Moody’s) and backed by the full faith and credit of the United States government or such other nation; and (c) domestic and eurocurrency certificates of deposit and time deposits, bankers’ acceptances and floating rate certificates of deposit issued by any commercial bank organized under the laws of the United States, any state thereof, the District of Columbia, any foreign bank, or its branches or agencies (fully protected against currency fluctuations), which are rated A-1 (or better) by S&P or P-1 (or better) by Moody’s provided that, in the case of each of clauses (b) and (c), the maturities of such Cash and Cash Equivalents shall not exceed one year.

 

“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.

 

“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

 

14
 

 

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 Company entitled to vote for members of the board of directors or equivalent governing body of the Company 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); or

 

(b)        any Person or two or more Persons acting in concert shall have acquired by contract, 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 Company, or control over the equity securities of the Company entitled to vote for members of the board of directors or equivalent governing body of the Company 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

 

(c)        the Company shall cease, directly or indirectly, to Control any of the Guarantors other than as the result of a release of such Guarantor required under Section 10.10.

 

“Closing Date” means the first date all the conditions precedent in Section 4.01 are satisfied or waived in accordance with Section 11.01.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Combined Equity Value” means Total Value minus Total Outstanding Indebtedness.

 

“Commitment” means, as to each Lender, its Dollar Tranche Commitment, Alternative Currency Tranche Commitment, Term Commitment or Revolving Credit Commitment, as the context may require.

 

“Company” has the meaning specified in the preamble hereto.

 

“Competitive Bid” means a written offer by a Lender to make one or more Competitive Loans substantially in the form of Exhibit B-2, duly completed and signed by such Lender.

 

“Competitive Bid Request” means a written request for one or more Competitive Loans substantially in the form of Exhibit B-1.

 

“Competitive Borrowing” means a borrowing consisting of simultaneous Competitive Loans of the same Type from each of the Lenders whose offer to make one or more Competitive Loans as part of such borrowing has been accepted under the auction bidding procedures described in Section 2.03.

 

“Competitive Loan” has the meaning specified in Section 2.03.

 

“Competitive Loan Lender” means, in respect of any Competitive Loan, the Lender making such Competitive Loan to the Borrower.

 

15
 

 

“Competitive Loan Note” means a promissory note made by the Borrower in favor of a Competitive Loan Lender, in substantially the form of Exhibit B-3 hereto, evidencing the indebtedness of the Borrower to such Competitive Loan Lender resulting from a Competitive Loan made by such Competitive Loan Lender.

 

“Competitive Loan Sublimit” means 50% of the aggregate Revolving Credit Commitments of all Revolving Credit Lenders.  The Competitive Loan Sublimit is part of, and not in addition to, the Revolving Credit Facility.

 

“Compliance Certificate” means a certificate substantially in the form of Exhibit E.

 

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

 

“Consolidated Businesses” means the Company and its Subsidiaries, on a consolidated basis (without taking into account any non-wholly owned Person or entity).

 

“Contingent Obligation” as to any Person means, without duplication, (a) any contingent obligation of such Person required to be shown on such Person’s balance sheet in accordance with GAAP, and (b) any obligation required to be disclosed in the footnotes to such Person’s financial statements in accordance with GAAP, guaranteeing partially or in whole any non-recourse Indebtedness, lease, dividend or other obligation, exclusive of contractual indemnities (including, without limitation, any indemnity or price adjustment provision relating to the purchase or sale of securities or other assets) and guarantees of non-monetary obligations (other than guarantees of completion) which have not yet been called on or quantified, of such Person or of any other Person.  The amount of any Contingent Obligation described in clause (b) shall be deemed to be (i) with respect to a guaranty of interest or interest and principal, or operating income guaranty, the sum of all payments required to be made thereunder (which in the case of an operating income guaranty shall be deemed to be equal to the debt service for the note supported thereby), calculated at the interest rate applicable to such Indebtedness, through (x) in the case of an interest or interest and principal guaranty, the stated maturity of the obligation (and commencing on the date interest could first be payable thereunder), or (y) in the case of an operating income guaranty, the date through which such guaranty will remain in effect, and (ii) with respect to all guarantees not covered by the preceding clause (i) an amount equal to the stated or determinable amount of the primary obligation in respect of which such guaranty is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as recorded on the balance sheet and on the footnotes to the most recent financial statements of the Company required to be delivered pursuant hereto.  Notwithstanding anything contained herein to the contrary, guarantees of completion and of Nonrecourse Carveouts shall not be deemed to be Contingent Obligations unless and until a claim for payment has been made thereunder, at which time any such guaranty of completion or of Nonrecourse Carveouts shall be deemed to be a Contingent Obligation in an amount equal to any such claim.  Subject to the preceding sentence, (a) in the case of a joint and several guaranty given by such Person and another Person (but only to the extent such guaranty is recourse, directly or indirectly to the applicable Person), the amount of such guaranty shall be deemed to be 100% thereof unless and only to the extent that (i) such

 

16
 

 

other Person has delivered Cash and Cash Equivalents to secure all or any part of such Person’s guaranteed obligations or (ii) such other Person holds an Investment Grade Credit Rating from any of Moody’s, S&P or Fitch (for avoidance of doubt, if any of the joint and several parties to a guaranty holds such a rating, such guaranty will be treated the same as if it were fully cash collateralized), and (b) in the case of a guaranty (whether or not joint and several) of an obligation otherwise constituting Indebtedness of such Person, the amount of such guaranty shall be deemed to be only that amount in excess of the amount of the obligation constituting Indebtedness of such Person. Notwithstanding anything contained herein to the contrary, “Contingent Obligations” shall not be deemed to include guarantees of loan commitments or of construction loans to the extent the same have not been drawn.

 

“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.

 

“CPA®:16” means Corporate Properties Associates 16 - Global  Incorporated, a Maryland corporation.

 

“CPA®:16 Credit Agreement” means that certain Credit Agreement, dated as of May 2, 2011, as amended, supplemented or otherwise modified, among CPA®:16, CPA 16 LLC, a Delaware limited liability company, CPA 16 Merger Sub Inc., a Maryland corporation, as the borrower, the lenders from time to time party thereto, and Bank of America, as, among other things, administrative agent for the lenders.

 

“Credit Extension” means each of the following:  (a) a Borrowing and (b) an L/C Credit Extension.

 

“Creditor Parties” means, collectively, the Administrative Agent, the Lenders, the L/C Issuer and each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.05, and the other Persons to whom the Obligations are owing.

 

“Debt Rating” means, as of any date of determination, the rating as determined by any of S&P, Moody’s and/or Fitch (collectively, the “Debt Ratings”) of the Company’s senior unsecured non-credit enhanced long-term Indebtedness for borrowed money.

 

“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 and affecting the rights of creditors generally.

 

“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.

 

17
 

 

“Default Rate” means (a) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate for Base Rate Loans under the Revolving Credit Facility (assuming that Category 4 of the Leverage-Based Applicable Rate applied in the then applicable pricing grid set forth in the definition of “Applicable Rate”) plus (iii) 2% per annum; provided, however, that (x) with respect to a Base Rate Loan, the Default Rate shall be an interest rate equal to (i) the Base Rate, plus (ii) the Applicable Rate for Base Rate Loans for the Facility under which such Loan was made (assuming that Category 4 of the Leverage-Based Applicable Rate applied in the then applicable pricing grid set forth in the definition of “Applicable Rate”), plus (iii) 2% per annum and (y) with respect to a Eurocurrency Rate Loan, the Default Rate shall be an interest rate equal to (i) the Eurocurrency Rate, plus (ii) the Applicable Rate for Eurocurrency Rate Loans for the Facility under which such Loan was made (assuming that Category 4 of the Leverage-Based Applicable Rate applied in the then applicable pricing grid set forth in the definition of “Applicable Rate”), plus (iii) 2% per annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate then applicable to Letter of Credit Fees (assuming that Category 4 of the Leverage-Based Applicable Rate applied in the then applicable pricing grid set forth in the definition of “Applicable Rate”) plus 2% per annum.

 

“Defaulting Lender” means, subject to Section 2.18(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Company in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the L/C Issuer, the Swing Line Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swing Line Loans) within two Business Days of the date when due, (b) has notified the Company, the Administrative Agent, the L/C Issuer or the Swing Line Lender in writing that it does not intend to comply with its funding obligations hereunder or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based upon such Lender’s determination that a condition precedent to funding  (which conditions precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Company, to confirm in writing to the Administrative Agent and the Company that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Company), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of

 

18
 

 

attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above, and of the effective date of such status, shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.18(b)) as of the date established therefor by the Administrative Agent in a written notice of such determination, which shall be delivered by the Administrative Agent to the Company, the L/C Issuer, the Swing Line Lender and each other Lender promptly following such determination.

 

“Departing Lender” has the meaning set forth in Section 11.22.

 

“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 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.

 

“Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency, the equivalent amount thereof in Dollars as determined by the Administrative Agent or the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of Dollars with such Alternative Currency.

 

“Dollar Tranche” means, at any time, Dollar Tranche Commitments of all the Lenders.

 

“Dollar Tranche Commitment” means, as to each Lender, its obligation to (a) make Dollar Tranche Loans to the Borrower pursuant to Section 2.01(b)(i), (b) purchase participations in L/C Obligations, and (c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the Dollar amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Dollar Tranche Commitment” or in the Assignment and Assumption or New Lender Joinder Agreement pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be increased by such Lender pursuant to Section 2.16 or otherwise adjusted from time to time in accordance with this Agreement.

 

“Dollar Tranche Lender” means any Person that is a Lender hereunder in respect of the Dollar Tranche in its capacity as a Lender in respect of such Tranche.

 

“Dollar Tranche Loan” has the meaning specified in Section 2.01(b)(i).

 

“Dollar Tranche Percentage” means, with respect to any Lender at any time, the percentage (carried out to the ninth decimal place) of the Aggregate Dollar Tranche

 

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Commitments represented by such Lender’s Dollar Tranche Commitment at such time, subject to adjustment as provided in Section 2.18.  If the commitment of each Lender to make Revolving Credit Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02, or if the Aggregate Dollar Tranche Commitments have expired, then the Dollar Tranche Percentage of each Lender shall be based on the Dollar Tranche Percentage of such Lender most recently in effect, giving effect to any subsequent assignments.  The initial Dollar Tranche Percentage of each Lender is set forth opposite the name of such Lender on Schedule 2.01 under the caption “Dollar Tranche Percentage” or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

 

“Domestic Subsidiary” or “Domestic Wholly-Owned Subsidiary” means, with respect to any Person, a Subsidiary or a Wholly-Owned Subsidiary of such Person organized under the laws of the United States, any state thereof or the District of Columbia.

 

“EBITDA” means, for any Person for any period, the Net Income (Loss) of such Person for such period taken as a single accounting period, plus (a) the sum of the following amounts of such Person and its Subsidiaries for such period determined on a consolidated basis in conformity with GAAP to the extent included in the determination of such Net Income (Loss): (i) depreciation expense, (ii) amortization expense and other non-cash charges, (iii) interest expense, (iv) income tax expense, (v) extraordinary losses and other non-recurring charges (and other losses on asset sales not otherwise included in extraordinary losses and other non-recurring charges), and (vi) adjustments as a result of the straight lining of rents, less (b) extraordinary gains (and in the case of the Company and its consolidated Subsidiaries, gains on asset sales not otherwise included in extraordinary gains) of such Person and its Subsidiaries determined on a consolidated basis in conformity with GAAP to the extent included in the determination of such Net Income (Loss).

 

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.06(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 11.06(b)(iii)).

 

“Eligible Ground Lease” means a ground lease that (a) has a minimum remaining term of thirty (30) years, including tenant controlled options, as of any date of determination, (b) has customary notice rights, default cure rights, bankruptcy new lease rights and other customary provisions for the benefit of a leasehold mortgagee or has equivalent protection for a leasehold permanent mortgagee by a subordination to such leasehold permanent mortgagee of the landlord’s fee interest, and (c) is otherwise acceptable for non-recourse leasehold mortgage financing under customary prudent lending requirements.

 

“Eligible Project” means a Project (a) which is free of all title defects, except for Permitted Defects, and material structural defects, and (b) which is free of Hazardous Materials except as would not materially affect the value of such Project.

 

“Environment” means ambient air, indoor air, surface water, groundwater, drinking water, soil, surface and subsurface strata, and natural resources such as wetlands, flora and fauna.

 

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“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, agreements or governmental restrictions relating to pollution or the protection of the Environment or of human health (to the extent related to exposure to Hazardous Materials), including those relating to the manufacture, generation, handling, transport, storage, treatment, Release or threat of Release of Hazardous Materials.

 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the presence, generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the 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.

 

“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 any Loan Party 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 any Loan Party 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 any Loan Party 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

 

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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 any Loan Party or any ERISA Affiliate; or (i) a failure by any Loan Party or any ERISA Affiliate to meet all applicable requirements under the Pension Funding Rules in respect of a Pension Plan, whether or not waived, or the failure by any Loan Party or any ERISA Affiliate to make any required contribution to a Multiemployer Plan.

 

“Euro” and “EUR” mean the single currency of the Participating Member States.

 

“Eurocurrency Bid Margin” means the margin above or below the Eurocurrency Rate  to be added to or subtracted from the Eurocurrency Rate, which margin shall be expressed in multiples of 1/100th of one basis point.

 

“Eurocurrency Margin Bid Loan” means a Competitive Loan that bears interest at a rate based upon the Eurocurrency Rate.

 

“Eurocurrency Rate” means:

 

(a)        With respect to any Credit Extension:

 

(i)         denominated in a LIBOR Quoted Currency, 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 Reuters 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 the applicable Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period;

 

(ii)        denominated in Canadian dollars, the rate per annum equal to the Canadian Dealer Offered Rate (“CDOR”), or a comparable or successor rate which rate is approved by the Administrative Agent, as published on the applicable Reuters screen page (or such other page or commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at or about 10:00 a.m. (Toronto, Ontario time) on the Rate Determination Date with a term equivalent to such Interest Period;

 

(iii)       denominated in Australian dollars, the rate per annum equal to the Bank Bill Swap Reference Bid Rate (“BBSY”) or a comparable or successor rate, which rate is approved by the Administrative Agent, as published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at or about 10:30 a.m. (Melbourne, Australia time) on the Rate Determination Date with a term equivalent to such Interest Period;

 

(iv)       denominated in Hong Kong dollars, the rate per annum equal to the Hong Kong Interbank Offered Rate (“HIBOR”), or a comparable or successor rate

 

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which rate is approved by the Administrative Agent, as published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at or about 11:00 a.m. (Hong Kong time) on the Rate Determination Date with a term equivalent to such Interest Period;

 

(v)        denominated in a Non-LIBOR Quoted Currency other than those currencies listed above, the rate per annum as designated with respect to such Alternative Currency at the time such Alternative Currency is approved by the Administrative Agent and the Lenders pursuant to Section 1.08; and

 

(b)        for any rate 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 with any rate set forth in this definition, the approved rate shall be applied to the applicable Interest Period 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 to the applicable Interest Period in a manner as otherwise reasonably determined by the Administrative Agent.

 

“Eurocurrency Rate Committed Loan” means a Eurocurrency Rate Loan other than a Eurocurrency Margin Bid Loan.

 

“Eurocurrency Rate Loan” means a Revolving Credit Loan or a Term Loan that bears interest at a rate based on clause (a) of the definition of “Eurocurrency Rate.”  Eurocurrency Rate Loans may be denominated in Dollars or in an Alternative Currency.  All Loans denominated in an Alternative Currency must be Eurocurrency Rate Loans.

 

“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, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Company under Section 11.13) or (ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to Section 3.01(a)(ii) or (c), amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its Lending Office, (c) Taxes attributable

 

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to such Recipient’s failure to comply with Section 3.01(e) and (d) any Taxes imposed under, or as a result of the failure of such Recipient to satisfy the applicable requirements under, FATCA.

 

“Existing Letter of Credit” means a “Letter of Credit” issued pursuant to the terms of, and as defined in, the Original Credit Agreement or the CPA®:16 Credit Agreement and outstanding on the Closing Date and described on Schedule 1.01(B).

 

“Extension Notice” has the meaning specified in Section 2.15(a).

 

“FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.

 

“Facility” means the Term Facility or the Revolving Credit Facility, as the context may require.

 

“Facility Fee” has the meaning specified in Section 2.10(a).

 

“Fair Market Value” means, with respect to any asset or property, the sale value that would be obtained in an arm’s-length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy.  Fair Market Value shall be determined by an officer of the Company acting in good faith and shall be evidenced by an Officer’s Certificate.  The Fair Market Value of any readily marketable securities shall be the number of such securities multiplied by the average Market Price per share or per unit of such securities during the five consecutive trading days immediately preceding the date of determination.  The “Market Price” of any security on any trading day shall mean, with respect to any security which is listed on a national securities exchange, the last sale price regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices regular way, in either case on the New York Stock Exchange, or, if such security is not listed or admitted to trading on such exchange, on the principal national securities exchange on which such security is listed or admitted to trading, or, if such security is not listed or admitted to trading on any national securities exchange but is designated as a national market system security by the National Association of Securities Dealers, the last sale price, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, in either case as reported on the National Association of Securities Dealers Automated Quotation/National Market System, or if such security is not so designated as a national market systems security, the average of the highest reported bid and lowest reported asked prices as furnished by the National Association of Securities Dealers or similar organization if the National Association of Securities Dealers is no longer reporting such information.  With respect to operating partnership units of any REIT, such operating partnership units shall in no event have a value greater than the value of the number of shares of the REIT into which such operating partnership units are then convertible.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to current Section 1471(b)(1) of the

 

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Code (or any amended or successor version described above) and any intergovernmental agreements implementing the foregoing (together with any law implementing such agreements).

 

“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 Bank of America on such day on such transactions as determined by the Administrative Agent.

 

“Fee Letter” means the letter agreement, dated October 18, 2013, among the Company, the Administrative Agent and Bank of America, as an Arranger.

 

“Fitch” means Fitch, Inc. and any successor thereto.

 

“Fixed Charges” means, with respect to any period, the sum of (a) Interest Expense for such period plus (b) the aggregate of all scheduled principal payments on Total Outstanding Indebtedness according to GAAP made or required to be made during such period by the Company and its Subsidiaries (with appropriate adjustments for minority interests) or allocable to the Company and its Subsidiaries on account of interests in Joint Venture (but excluding balloon payments of principal due upon the stated maturity of any Indebtedness) plus (c) the aggregate of all dividends payable on the Company’s or any of its consolidated Subsidiaries’ preferred equity interests (if any).

 

“Foreign Lender” means, with respect to any Borrower, (a) if such Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if such Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which such 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.

 

“FRB” means the Board of Governors of the Federal Reserve System of the United States.

 

“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the L/C Issuer, such Defaulting Lender’s Applicable Percentage of the Outstanding Amount of all outstanding L/C Obligations other than L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swing Line Lender, such Defaulting Lender’s Applicable Percentage of Swing Line Loans other than Swing Line Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

 

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“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 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).

 

“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 anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.

 

“Guaranteed Obligations” has the meaning specified in Section 10.01.

 

“Guarantor Release Notice” has the meaning specified in Section 10.10(b).

 

“Guarantors” means, collectively, (a) each Domestic Wholly-Owned Subsidiary of the Company (other than Carey Financial, LLC) that, as of the Closing Date, receives fees under a Management Contract, is a Wholly-Owned REIT Subsidiary or owns an Unencumbered Eligible

 

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Project; provided that if the owner of any Unencumbered Eligible Project is a Domestic Subsidiary but not a Wholly-Owned Subsidiary, then each of the most immediate parents of such owner that are Domestic Wholly-Owned Subsidiaries of the Company (if any), and (b) each Domestic Wholly-Owned Subsidiary of the Company that joins as a Guarantor pursuant to Section 6.12 or otherwise, in each case, together with their successors and permitted assigns, to the extent such Domestic Wholly-Owned Subsidiary has not been released from its obligations hereunder in accordance with Section 10.10.

 

“Guaranty” means the Guaranty made by the Guarantors under Article X in favor of the Creditor Parties.

 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances or wastes, including petroleum or petroleum distillates, natural gas, natural gas liquids, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, toxic mold, infectious or medical wastes and all other substances, wastes, chemicals, pollutants, contaminants or compounds of any nature in any form regulated pursuant to any Environmental Law.

 

“Hong Kong Dollars” and “HK$” mean the lawful currency of Hong Kong.

 

“Impacted Loans” has the meaning specified in Section 3.03.

 

“Increase Effective Date” has the meaning specified in Section 2.16(d).

 

“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;

 

(b)        the maximum amount of all direct or contingent obligations of such Person in respect of letters of credit (including standby and commercial), bankers’ acceptances and similar instruments (including bank guaranties, surety bonds, comfort letters, keep-well agreements and capital maintenance agreements) to the extent such instruments or agreements support financial, rather than performance, obligations;

 

(c)        the aggregate net obligations, if any, of such Person under all Swap Contracts, taken as a whole; provided, that if the aggregate net amount of such obligations is less than $0, the amount of such Person’s Indebtedness under this clause (c) shall be $0;

 

(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);

 

(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;

 

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(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 clause (a), Other Taxes.

 

“Indemnitee” has the meaning specified in Section 11.04(b).

 

“Information” has the meaning specified in Section 11.07.

 

“Initial Maturity Date” means (a) with respect to the Revolving Credit Facility, the fourth anniversary of the Closing Date, and (b) with respect to the Term Facility, the second anniversary of the Closing Date.

 

“Interest Expense” means, for any period, an amount equal to (a) interest expense (including capitalized interest expense) of the Company and its Subsidiaries during such period, plus (b) the portion of the interest expense of Joint Ventures allocable to the Company and its Subsidiaries in accordance with GAAP on account of ownership of an interest in a Joint Venture during such period (with appropriate adjustments for minority interests) minus (c) extraordinary interest expense related to debt prepayments or defeasance of loans minus (d) amortization of deferred costs associated with new financings or refinancings of existing Indebtedness minus (e) capitalized interest expense related to Real Property under construction.

 

“Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date of the Facility under which such Loan was made; provided, however, that if any Interest Period for a Eurocurrency 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 (including a Swing Line Loan), the last Business Day of each March, June, September and December and the Maturity Date of the Facility under which such Loan was made (with Swing Line Loans being deemed made under the Revolving Credit Facility for purposes of this definition).

 

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“Interest Period” means, (a) as to each Eurocurrency Rate Loan other than a Eurocurrency Margin Bid Loan, the period commencing on the date such Eurocurrency Rate Loan is disbursed or converted to or continued as a Eurocurrency 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, (b)  as to each Eurocurrency Margin Bid Loan, the period commencing on the date such Eurocurrency Margin Bid Loan is disbursed and ending on the date one week, two weeks, one month, two months, three months, four months or six months thereafter, as selected by the Borrower in its Competitive Bid Request, and (c) as to each Absolute Rate Loan, a period of not less than 7 days and not more than 180 days as selected by the Borrower in its Competitive Bid Request; provided that:

 

(a)        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 Eurocurrency Rate Loan, such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

 

(b)        any Interest Period pertaining to a Eurocurrency 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;

 

(c)        no Interest Period shall extend beyond the Maturity Date of the Facility under which such Loan was made; and

 

(d)       in order to consolidate two (2) or more Eurocurrency Rate Loans, in connection with an extension of the Initial Maturity Date pursuant to Section 2.15, to facilitate an increase of the Aggregate Commitments pursuant to Section 2.16 and in such other circumstances as the Lenders may agree, the Interest Period for Eurocurrency Rate Loans may be such period that is shorter than one (1) month as the Lenders may agree.

 

For purposes hereof, the date of a Loan initially shall be the date on which such Loan is made and, in the case of a Revolving Credit Loan or Term Loan, thereafter shall be the effective date of the most recent conversion or continuation of such Loan.

 

“Interim Maturity Date” has the meaning specified in Section 2.15(a).

 

“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 or other securities 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 equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person, (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 or (d) the purchase, acquisition or other investment in any real property or real property-related assets (including, without limitation, mortgage loans and other real estate-related debt investments, investments in land holdings, and costs to construct real property

 

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assets under development).  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.

 

“Investment Grade Credit Rating” means receipt of two Debt Ratings of BBB- or higher by S&P or Fitch, or Baa3 or higher by Moody’s.

 

“Investment Grade Permitted Release” has the meaning specified in Section 10.10(a).

 

“Investment Grade Pricing Effective Date” means the first Business Day following the date on which (i) the Company has obtained an Investment Grade Credit Rating and (ii) the Company has delivered to the Administrative Agent an Officer’s Certificate (x) certifying that an Investment Grade Credit Rating has been obtained and is in effect (which certification shall also set forth the Debt Ratings received, if any, from each of S&P, Moody’s and Fitch as of such date) and (y) notifying the Administrative Agent that the Company has irrevocably elected to have the Ratings-Based Applicable Rate apply to the pricing of the Facilities.

 

“IP Rights” has the meaning specified in Section 5.17.

 

“IRS” means the United States Internal Revenue Service.

 

“ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).

 

“Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the L/C Issuer and the Borrower or any Guarantor or in favor of the L/C Issuer and relating to such Letter of Credit.

 

“Joint Venture” means a partnership, limited liability company, joint venture (including a tenancy in common ownership pursuant to a written agreement providing for substantially the same rights and obligations relating to such property that would be in a joint venture agreement), or corporation which is not wholly-owned by the Company (or one of its Subsidiaries).

 

“Joint Venture EBITDA” means, for any period, EBITDA from a Joint Venture, calculated as revenue allocated to the Company and its Subsidiaries based on such Person’s ownership interest in such Joint Venture, minus 2% of such revenue.

 

“Laws” means, collectively, all international, foreign, Federal, state and local statutes, 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 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.

 

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“L/C Advance” means, with respect to each Revolving Credit Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with its Applicable Dollar Tranche Percentage.  All L/C Advances shall be denominated in Dollars.

 

“L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Revolving Credit Borrowing.  All L/C Borrowings shall be denominated in Dollars.

 

“L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof.

 

“L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder; provided that for so long as any Existing Letter of Credit remains outstanding hereunder, the issuer of such Existing Letter of Credit shall continue to be the L/C Issuer with respect to such Existing Letter of Credit.

 

“L/C Obligations” means, at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings.  For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06 and Section 1.07.  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

 

“Lease” means a lease, license, concession agreement or other agreement providing for the use or occupancy of any portion of any Project, including all amendments, supplements, modifications and assignments thereof and all side letters or side agreements relating thereto.

 

“Lender” has the meaning specified in the introductory paragraph hereto and, as the context requires, includes the Swing Line Lender.

 

“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 Company and the Administrative Agent.

 

“Letter of Credit” means any standby letter of credit issued hereunder and shall include the Existing Letters of Credit.  Letters of Credit may be issued in Dollars or in an Alternative Currency.

 

“Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

 

“Letter of Credit Expiration Date” means the day that is seven days prior to the Maturity Date then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the next preceding Business Day).

 

“Letter of Credit Fee” has the meaning specified in Section 2.04(h).

 

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“Letter of Credit Sublimit” means, at any time, the lesser of (a) $50,000,000 and (b) the Aggregate Dollar Tranche Commitments.  The Letter of Credit Sublimit is part of, and not in addition to, the Revolving Credit Facility.

 

“Leverage-Based Applicable Rate” has the meaning specified in the definition of “Applicable Rate”.

 

“Leverage Ratio” as of any date means the ratio, expressed as a percentage, of Total Outstanding Indebtedness as of such date to Total Value as of such date.

 

“LIBOR” has the meaning specified in the definition of Eurocurrency Rate.

 

“LIBOR Quoted Currency” means each of the following currencies:  Dollars, Euro, Sterling, Yen and Swiss Franc; in each case as long as there is a published LIBOR rate with respect thereto.

 

“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, 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, any easement, right of way or other encumbrance on title to real property, 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 in the form of a Term Loan, a Revolving Credit Loan, a Competitive Loan or a Swing Line Loan.

 

“Loan Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) the Guaranty, (d) the Fee Letter, (e) each Issuer Document, (f) the Escrow Agreement, (g) any agreement creating or perfecting rights in cash collateral pursuant to the provisions of Section 2.17 and (h) each other agreement, instrument, and document heretofore, now or hereafter delivered in connection with this Agreement or evidencing, securing, guaranteeing, or otherwise relating to any of the Obligations or any other aspect of the transactions contemplated by this Agreement.

 

“Loan Notice” means a notice of (a) a Term Borrowing, (b) a Revolving Credit Borrowing, (c) a conversion of Loans from one Type to the other, or (d) a continuation of Eurocurrency Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A.

 

“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.

 

“Managed REIT” means a REIT managed or advised by the Company or a Subsidiary and listed on Schedule 1.01(A) (as updated from time to time by the Company).

 

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“Management Contract” means a management contract or advisory agreement under which the Company or one of its Subsidiaries provides management and advisory services to a third party, consisting of management of properties or provision of advisory services on property acquisition and dispositions, equity and debt placements and related transactional matters.

 

“Management EBITDA” means, for any period, an amount equal to:

 

(a)        the aggregate sum of revenues for such period earned by the Company and its Subsidiaries from providing management services under Management Contracts, including asset management revenue, performance revenue, structuring revenue, advisor’s participation in cash flow (if any), interest income or any revenue earned as stipulated in a Management Contract and booked for financial reporting purposes, together with appropriate adjustments for minority interests and excluding revenue related to reimbursed costs but including distributions received for such period related to the ownership of shares in managed funds and Managed REITs; minus

 

(b)        Management G&A Expense for such period.

 

“Management G&A Expense” means, for any period, (a) Total G&A Expense during such period (net of reimbursed costs and non-cash stock based compensation expenses) minus (b) Property G&A Expense for such period.

 

“Marketable Securities” means (a) short term marketable securities, issued by any entity (other than the Company or an Affiliate of the Company) organized and existing under the laws of the United States of America, with a long term unsecured indebtedness rating with Moody’s or S&P of Baa2/BBB or better, respectively, and (b) in the case of any Subsidiary other than  a Domestic Subsidiary, local short term marketable securities comparable to those described in clause (a) of this definition.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, assets, financial condition or results of operations of the Company and the Subsidiaries taken as a whole or (b) the validity or enforceability of the Loan Documents or the rights or remedies of the Administrative Agent and the Lenders under the Loan Documents.

 

“Material Indebtedness” means Indebtedness (other than the Loans, Letters of Credit and Nonrecourse Indebtedness) or obligations in respect of one or more Swap Contracts, of any one or more of the Company and its Subsidiaries in an aggregate principal amount exceeding $25,000,000.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Company or any Subsidiary in respect of any Swap Contract at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Company or such Subsidiary would be required to pay if such Swap Contract were terminated at such time.

 

“Material Subsidiary” means, at any date of determination, each Subsidiary or group of Subsidiaries of the Company (a) whose contribution to Total Value at the last day of the most recent fiscal period for which a Compliance Certificate was delivered pursuant to Section 6.02(a) was equal to or greater than 5% of Total Value at such date (it being understood that such calculations shall be determined in the aggregate for all Subsidiaries of the Company subject to any of the events specified in clause (f) and (g) of Section 8.01).

 

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“Maturity Date” means the later of (a) the Initial Maturity Date and (b) if the Initial Maturity Date is extended pursuant to Section 2.15, such extended maturity date as determined pursuant to such Section; provided, however, that, in each case, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

 

“MLPF&S” means Merrill Lynch, Pierce, Fenner & Smith Incorporated and its successors.

 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

 

“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which any Loan Party 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.

 

“Net Asset Value” means the value of a security determined on a net asset value basis by an officer of the Company in good faith and evidenced by an Officer’s Certificate, which determination shall be based on an appraisal of an independent third-party appraiser regularly engaged in the valuation of securities of the same type as the securities being valued.

 

“Net Income (Loss)” means, for any Person for any period, the aggregate of net income (or loss) of such Person and its Subsidiaries for such period, determined on a consolidated basis in conformity with GAAP.

 

“Net Offering Proceeds” means all cash or other assets received by the Company as a result of the sale of common shares, preferred shares, partnership interests, limited liability company interests, convertible securities or other ownership or equity interests in the Company, less customary costs and discounts of issuance paid by the Company.

 

“Net Operating Income” means, with respect to any Property at any time, an amount equal to (a) the aggregate gross revenues from the operation of such Property from tenants in occupancy and paying rent during the then most recently ended fiscal quarter of the Company for which financial statements have been provided to the Administrative Agent and the Lenders, minus (b) the sum of (i) all expenses and other proper charges incurred by the Company during such fiscal quarter in connection with the operation of such Property (including accruals for real estate taxes and insurance, but excluding debt service charges, income taxes, depreciation, amortization and other non-cash expenses), which expenses and accruals shall be calculated in accordance with GAAP and (ii) a management, advisory or similar fee in an amount equal to the greater of (x) three percent (3.00%) of the rent payable in respect of such Property during such fiscal quarter and (y) actual management, advisory or similar fees paid in cash during such fiscal quarter.  Notwithstanding the foregoing, the Net Operating Income with respect to any Property that has not at the time of determination been owned by one or more Subsidiaries of the Company (or by any Joint Venture in which the Company, directly or indirectly, owns an interest) for an entire fiscal quarter shall be deemed to be the Projected Property NOI of such Property.

 

“New Lender Joinder Agreement” has the meaning specified in Section 2.16(a).

 

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“New Term Facility” has the meaning specified in Section 2.16(a).

 

“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (i) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 11.01 and (ii) has been approved by the Required Lenders.

 

“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.

 

“Non-LIBOR Quoted Currency” means any currency other than a LIBOR Quoted Currency.

 

“Nonrecourse Carveouts” means the personal liability of an obligor under Indebtedness for fraud, misrepresentation, misapplication or misappropriation of cash, waste, environmental liability, bankruptcy filing or any other circumstances customarily excluded from non-recourse provisions and non-recourse financing of real estate.

 

“Nonrecourse Indebtedness” of any Person means all Indebtedness of such Person with respect to which recourse for payment is limited to specific assets encumbered by a Lien securing such Indebtedness (other than Nonrecourse Carveouts); provided, that if in connection therewith a personal recourse claim is established by judgment decree or award by any court of competent jurisdiction or arbitrator of competent jurisdiction and execution or enforcement thereof shall not be effectively stayed for 30 consecutive days and such Indebtedness shall not be paid or otherwise satisfied within such 30 day period, then such Indebtedness in an amount equal to the personal recourse claim established by judgment or award shall not constitute Nonrecourse Indebtedness for purposes of this Agreement.

 

“Note” means a Term Note, a Revolving Credit Note or a Competitive Loan Note, as the context may require.

 

“Obligations” means, collectively, 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 or Letter of Credit, 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.

 

“Officer’s Certificate” means a certificate signed by a Responsible Officer of the Company or by such other officer as may be specified herein, and delivered to the Administrative Agent hereunder.

 

“Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents

 

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with 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.

 

“Original Credit Agreement” has the meaning specified in the preliminary statements hereto.

 

“Original Note” means a Note (as defined in the Original Credit Agreement).

 

“Original Term Loan Credit Agreement” means that certain Term Loan Credit Agreement, dated as of July 31, 2013, among the Company, certain Guarantors, the Administrative Agent and certain Lenders party hereto, as amended through the date hereof.

 

“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 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 Document).

 

“Other Taxes” means any and all present or future stamp, court, documentary, intangible, recording, filing, or any other excise, property or similar Taxes arising from any payment made hereunder or under any other Loan Document or from the execution, delivery, transfer or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Sections 3.06 and 11.13).

 

“Outstanding Amount” means (a) with respect to Revolving Credit Loans on any date, the Dollar Equivalent of the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Revolving Credit Loans occurring on such date; (b) with respect to Term Loans and Swing Line Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Term Loans and Swing Line Loans, as the case may be, occurring on such date; and (c) with respect to any L/C Obligations on any date, the Dollar Equivalent of the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements by the Borrower of Unreimbursed Amounts.

 

“Overnight Rate” means, for any day, (a) with respect to any amount denominated in Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the Administrative Agent, the L/C Issuer, or the Swing Line Lender, as the case may be, in accordance with banking industry rules on interbank compensation, and (b) with respect to any

 

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amount denominated in an Alternative Currency, the rate of interest per annum at which overnight deposits in the applicable Alternative Currency, in an amount approximately equal to the amount with respect to which such rate is being determined, would be offered for such day by a branch or Affiliate of Bank of America in the applicable offshore interbank market for such currency to major banks in such interbank market.

 

“Participant” has the meaning specified in Section 11.06(d).

 

“Participant Register” has the meaning specified in Section 11.06(d).

 

“Participating Member State” means any member state of the European Union that has the Euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

 

“PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.

 

“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, Sections 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 any Loan Party 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.

 

“Permitted Defects” means:

 

(a)                               Liens imposed by law for taxes, assessments, governmental charges or levies that are not yet due or are being contested in compliance with Section 6.04;

 

(b)                              carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 6.04;

 

(c)                               easements, zoning restrictions, rights of way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or materially interfere with the ordinary conduct of business of the Company or any Subsidiary;

 

(d)                             Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.01(h);

 

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(e)                               Liens consisting of an agreement to Dispose of any property in a Disposition permitted by Section 7.05; provided that such Liens encumber only the applicable assets pending consummation of the Disposition;

 

(f)                                (i) leases, licenses, subleases or sublicenses granted to other Persons in the ordinary course of business which do not (A) interfere in any material respect with the business of the Company and its Subsidiaries, taken as a whole, or (B) secure any Indebtedness and (ii) the rights reserved or vested in any Person by the terms of any lease, license, franchise, grant or permit held by any of the Company or its Subsidiaries); and

 

(g)                              Liens with respect to Capitalized Leases of equipment entered into in the ordinary course of business of the Loan Parties.

 

“Permitted Encumbrances” means:

 

(a)                               Liens imposed by law for taxes, assessments, governmental charges or levies that are not yet due or are being contested in compliance with Section 6.04;

 

(b)                              carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 6.04;

 

(c)                               pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations or to secure the performance of bids, purchases, contracts (other than for the payment of borrowed money) and surety, appeal and performance bonds;

 

(d)                             deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;

 

(e)                               easements, zoning restrictions, rights of way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or materially interfere with the ordinary conduct of business of the Company or any Subsidiary;

 

(f)                                statutory and common law landlord Liens;

 

(g)                              Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.01(h);

 

(h)                              Liens consisting of an agreement to Dispose of any property in a Disposition permitted by Section 7.05; provided that such Liens encumber only the applicable assets pending consummation of the Disposition;

 

(i)                                  (i) leases, licenses, subleases or sublicenses granted to other Persons in the ordinary course of business which do not (A) interfere in any material respect with the business

 

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of the Company and its Subsidiaries, taken as a whole, or (B) secure any Indebtedness, and (ii) the rights reserved or vested in any Person by the terms of any lease, license, franchise, grant or permit held by any of the Company or its Subsidiaries;

 

(j)                                  (i) statutory and common law rights of set-off and other similar rights and remedies as to deposits of cash, securities, commodities and other funds in favor of banks, other depositary institutions, securities or commodities intermediaries or brokerages and (ii) Liens of a collecting bank arising in the ordinary course of business under Section 4-208 of the UCC in effect in the relevant jurisdiction and covering only the items being collected upon; and

 

(k)                              Liens arising from precautionary UCC financing statements or similar filings made in respect of operating leases entered into by the Company or any of its Domestic Subsidiaries;

 

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.

 

“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 any Loan Party or any ERISA Affiliate or any such Plan to which any Loan Party or any ERISA Affiliate is required to contribute on behalf of any of its employees.

 

“Platform” has the meaning specified in Section 6.02.

 

“Project” means any office, industrial/manufacturing facility, educational facility, retail facility, distribution/warehouse facility, assembly or production facility, hotel, day care center, storage facility, health care/hospital facility, restaurant, radio or TV station, broadcasting/communication facility (including any transmission facility), any combination of any of the foregoing, or any land to be developed into any one or more of the foregoing pursuant to a written agreement with respect to such land for a transaction involving a Lease (or franchise agreement, in the case of a hotel), in each case owned, directly or indirectly, by any of the Consolidated Businesses.

 

“Projected Property NOI” means, with respect to any Property that has not at the time of determination been owned by one or more Subsidiaries of the Company (or by any Joint Venture in which the Company, directly or indirectly, owns an interest) for an entire fiscal quarter, the projected, pro forma Net Operating Income for such Property for such fiscal quarter as mutually agreed by the Company and the Administrative Agent based on (i) if available, historical financial statements for such Property under prior ownership for the full fiscal quarter ended immediately prior to the date of determination or (ii) if such historical financial statements are not available, the projected aggregate gross revenues from the operation of such Property from tenants in occupancy and paying rent for the fiscal quarter during which such determination is made (calculated on a pro forma basis based on the assumption that such tenants were in occupancy and paying rent from and after the first day of such fiscal quarter through and including the last day thereof).

 

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“Property” means any Real Property or personal property, plant, building, facility, structure, equipment, general intangible, receivable, or other asset owned or leased by any of the Consolidated Businesses or any Joint Venture in which the Company, directly or indirectly, owns an interest.

 

“Property EBITDA” means, for any period, an amount equal to:

 

(a)                               Adjusted Total EBITDA for such period; minus

 

(b)                              Adjusted Management EBITDA for such period; minus

 

(c)                               distributions in cash received by the Company and its Subsidiaries in respect of equity in managed funds and Managed REITs for such period.

 

“Property G&A Expense” means, for any period, 8% of the total lease revenues of the Company and its Subsidiaries for such period, as set forth on the Company’s consolidated financial statements for such period.

 

“Public Lender” has the meaning specified in Section 6.02.

 

“Rate Determination Date” means two (2) Business Days  prior to the commencement of such Interest Period (or such other day as is generally treated as the rate fixing day by market practice in such interbank market, as determined by the Administrative Agent; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such other day as otherwise reasonably determined by the Administrative Agent).

 

“Ratings-Based Applicable Rate” has the meaning specified in the definition of “Applicable Rate”.

 

“Recipient” means the Administrative Agent, any Lender, the L/C Issuer or any other recipient of any payment to be made by or on account of any obligation of any Loan Party hereunder.

 

“Real Property” means any present and future right, title and interest (including, without limitation, any leasehold estate) in (a) any plots, pieces or parcels of land, (b) any buildings, fixtures, structures, parking areas and related facilities and amenities (including all sitework, utilities, infrastructure, paving, striping, signage, curb and gutter, landscaping and other improvements whether existing now or hereafter constructed), together with all machinery and mechanical, electrical, HVAC and plumbing systems presently located thereon and used in the operation thereof, excluding (i) any such items owned by utility service providers, (ii) any such items owned by tenants or other third parties unaffiliated with the Company and (iii) any items of personal property (the rights and interests described in clauses (a) and (b) above being the “Premises”), (c) all easements, rights of way, gores of land or any lands occupied by streets, ways, alleys, passages, sewer rights, water courses, water rights and powers, air rights and public places adjoining such land, and any other interests in property constituting appurtenances to the Premises, or which hereafter shall in any way belong, relate or be appurtenant thereto, (d) all hereditaments, gas, oil, minerals (with the right to extract, sever and remove such gas, oil and minerals), and easements, of every nature whatsoever, located in, on or benefiting the Premises

 

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and (e) all other rights and privileges thereunto belonging or appertaining and all extensions, additions, improvements, betterments, renewals, substitutions and replacements to or of any of the rights and interests described in clauses (c) and (d) above.

 

“Register” has the meaning specified in Section 11.06(c).

 

“REIT” means a domestic trust or corporation that qualifies as a real estate investment trust under the provisions of Sections 856 et seq. of the Code.

 

“REIT Status” means, with respect to any Person, (a) the qualification of such Person as a REIT and (b) the applicability to such Person and its shareholders of the method of taxation provided for in Sections 857 et seq. of the Code.

 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, advisors, auditors (including internal auditors), attorneys and representatives 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, from or through any building, structure or facility.

 

“Removal Effective Date” has the meaning specified in Section 9.06(b).

 

“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.

 

“Request for Credit Extension” means (a) with respect to a Borrowing, conversion or continuation of Term Loans or Revolving Credit Loans, a Loan Notice, (b) with respect to a Competitive Loan, a Competitive Bid Request, (c) with respect to an L/C Credit Extension, a Letter of Credit Application, and (d) with respect to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required Lenders” means, as of any date of determination, Lenders holding more than 50% of the sum of the (a) Total Outstandings (with the aggregate amount of each Revolving Credit Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Revolving Credit Lender for purposes of this definition) other than the Outstanding Amount of Competitive Loans and (b) aggregate unused Revolving Credit Commitments (determined without giving effect to any Competitive Loans outstanding on such date); provided that the unused Revolving Credit Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders; provided  further that, the amount of any participation in any Swing Line Loan and Unreimbursed Amounts that such Defaulting Lender has failed to fund that have not been reallocated to and funded by another Lender shall be deemed to be held by the Lender that is the Swing Line Lender or L/C Issuer, as the case may be, in making such determination.

 

“Required Revolving Lenders” means, as of any date of determination, Revolving Credit Lenders holding more than 50% of the sum of the (a) Total Revolving Credit Outstandings (with

 

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the aggregate amount of each Revolving Credit Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Revolving Credit Lender for purposes of this definition) other than the Outstanding Amount of Competitive Loans and (b) aggregate unused Revolving Credit Commitments (determined without giving effect to any Competitive Loans outstanding on such date); provided that the unused Revolving Credit Commitment of, and the portion of the Total Revolving Credit Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Lenders; provided  further that, the amount of any participation in any Swing Line Loan and Unreimbursed Amounts that such Defaulting Lender has failed to fund that have not been reallocated to and funded by another Lender shall be deemed to be held by the Lender that is the Swing Line Lender or L/C Issuer, as the case may be, in making such determination.

 

“Required Term Lenders” means, as of any date of determination, Term Lenders holding more than 50% of the Term Facility on such date; provided that the portion of the Term Facility held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Term Lenders.

 

“Resignation Effective Date” has the meaning specified in Section 9.06(a).

 

“Responsible Officer” means the chief executive officer, president, chief operating officer, chief accounting officer, chief financial officer, treasurer or controller of a Loan Party, solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of a Loan Party and, solely for purposes of notices given pursuant to Article II, any other officer of the applicable Loan Party so designated by any of the foregoing officers in a notice to the Administrative Agent.  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.

 

“Restricted Payment” means (i) any dividend or other distribution on any equity securities of the Company (except dividends payable solely in equity securities of the Company or in rights to subscribe for or purchase equity securities of the Company) and (ii) payments in excess of $100,000,000 per year on account of the purchase, redemption, retirement or acquisition of (a) any equity securities of the Company or (b) any option, warrant or other right to acquire equity securities of the Company, except to the extent such purchase, redemption, retirement or acquisition occurs substantially concurrently with receipt by the Company of a like amount of proceeds from the issuance (other than to a Subsidiary or to an employee stock ownership plan or any trust established by the Company or any of its Subsidiaries) of new shares of (x) the same class of its Equity Interests or (y) common stock or other common Equity Interests of the Company.

 

“Revaluation Date” means, (i) with respect to any Revolving Credit Loan, each of the following:  (a) each date of a Borrowing of a Eurocurrency Rate Loan denominated in an Alternative Currency, (b) each date of a continuation of a Eurocurrency Rate Loan denominated in an Alternative Currency pursuant to Section 2.02, and (c) such additional dates as the

 

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Administrative Agent shall determine or the Tranche Required Lenders with respect to the Alternative Currency Tranche shall require and (ii) with respect to any Letter of Credit, each of the following:  (a) each date of issuance of a Letter of Credit denominated in an Alternative Currency, (b) each date of an amendment of any such Letter of Credit having the effect of increasing the amount thereof, (c) each date of any payment by the L/C Issuer under any Letter of Credit denominated in an Alternative Currency and (d) such additional dates as the Administrative Agent or the L/C Issuer shall determine or the Tranche Required Lenders with respect to the Dollar Tranche shall require.

 

“Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving Credit Loans of the same Type and, in the case of Eurocurrency Rate Loans, having the same Interest Period made by each of the Revolving Credit Lenders pursuant to Section 2.01(b).

 

“Revolving Credit Commitment” means, as to each Revolving Credit Lender, its Dollar Tranche Commitment and/or Alternative Currency Tranche Commitment, as the context may require.

 

“Revolving Credit Facility” means, at any time, the aggregate amount of the Revolving Credit Lenders’ Revolving Credit Commitments at such time.  On the Closing Date, the Revolving Credit Facility is $1,000,000,000.

 

“Revolving Credit Lender” means, at any time, any Lender that has a Revolving Credit Commitment at such time.

 

“Revolving Credit Loan” means a Dollar Tranche Loan or an Alternative Currency Tranche Loan.

 

“Revolving Credit Note” means a promissory note made by the Borrower in favor of a Revolving Credit Lender evidencing Revolving Credit Loans or Swing Line Loans, as the case may be, made by such Revolving Credit Lender, substantially in the form of Exhibit D-2.

 

“Rule 144A Transaction” means a sale or issuance of notes or bonds that are exempt from registration with the SEC under Rule 144A of the Securities Act.

 

“S&P” means Standard & Poor’s Financial Services LLC, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

 

“Same Day Funds” means (a) with respect to disbursements and payments in Dollars, immediately available funds, and (b) with respect to disbursements and payments in an Alternative Currency, same day or other funds as may be determined by the Administrative Agent or the L/C Issuer, as the case may be, to be customary in the place of disbursement or payment for the settlement of international banking transactions in the relevant Alternative Currency.

 

“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.

 

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“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“SEC Reports” has the meaning specified in Section 5.19.

 

“Secured Indebtedness” means any Indebtedness secured by a Lien (excluding Indebtedness hereunder).

 

“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.  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.

 

“Solvency Certificate” means a Solvency Certificate of the chief financial officer of the Company substantially in the form of Exhibit H.

 

“Special Notice Currency” means at any time an Alternative Currency, other than the currency of a country that is a member of the Organization for Economic Cooperation and Development at such time located in North America or Europe.

 

“Spot Rate” for a currency means the rate determined by the Administrative Agent or the L/C Issuer, as applicable, to be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date as of which the foreign exchange computation is made; provided that the Administrative Agent or the L/C Issuer may obtain such spot rate from another financial institution designated by the Administrative Agent or the L/C Issuer if the Person acting in such capacity does not have as of the date of determination a spot buying rate for any such currency; and provided  further that the L/C Issuer may use such spot rate quoted on the date as of which the foreign exchange computation is made in the case of any Letter of Credit denominated in an Alternative Currency.

 

“Sterling” and “£” mean the lawful currency of the United Kingdom.

 

“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

 

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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 Company.

 

“Supplemental Addendum” has the meaning specified in Section 1.08.

 

“Supplemental Currency” has the meaning specified in Section 1.08.

 

“Supplemental Request” has the meaning specified in Section 1.08.

 

“Supplemental Tranche Effective Date” has the meaning specified in Section 1.08.

 

“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 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).

 

“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.05.

 

“Swing Line Lender” means Bank of America in its capacity as provider of Swing Line Loans, or any successor swing line lender hereunder.

 

“Swing Line Loan” has the meaning specified in Section 2.05(a).

 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.05(b), which, if in writing, shall be substantially in the form of Exhibit C.

 

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“Swing Line Sublimit” means the lesser of (a) $50,000,000 and (b) the Revolving Credit Facility.  The Swing Line Sublimit is part of, and not in addition to, the Revolving Credit Facility.

 

“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 indebtedness of such Person (without regard to accounting treatment).

 

“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilizes a single shared platform and which was launched on November 19, 2007.

 

“TARGET Day” means any day on which TARGET2 (or, if such payment system ceases to be operative, such other payment system, if any, determined by the Administrative Agent to be a suitable replacement) is open for the settlement of payments in Euro.

 

“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.

 

“Term Borrowing” means a borrowing consisting of simultaneous Term Loans of the same Type and, in the case of Eurocurrency Rate Loans, having the same Interest Period made by each of the Term Lenders pursuant to Section 2.01(a).

 

“Term Commitment” means, as to each Term Lender, its obligation to make Term Loans to the Borrower pursuant to Section 2.01(a) in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Term Lender’s name on Schedule 2.01 under the caption “Term Commitment” or under such caption in the Assignment and Assumption or the New Lender Joinder Agreement pursuant to which such Term Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

 

“Term Facility” means (a) on or prior to the Closing Date, the aggregate amount of the Term Commitments at such time and (b) thereafter, the aggregate principal amount of the Term Loans of all Term Lenders outstanding at such time.  On the Closing Date, the Term Facility is $250,000,000.

 

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“Term Lender” means (a) at any time on or prior to the Term Loan Closing Date, any Lender that has a Term Commitment at such time and (b) at any time after the Term Loan Closing Date, any Lender that holds Term Loans at such time.

 

“Term Loan” means an advance made by any Term Lender under the Term Facility.

 

“Term Note” means a promissory note made by the Borrower in favor of a Term Lender evidencing Term Loans made by such Term Lender, substantially in the form of Exhibit D-1.

 

“Total G&A Expense” means, for any period, the total general and administrative expenses of the Company and its Subsidiaries for such period, as determined in accordance with GAAP.

 

“Total Outstanding Indebtedness” means, as of any date, the sum, without duplication, of (a) the amount of Indebtedness (secured and unsecured and recourse or non-recourse) of the Company and its Subsidiaries, including, without limitation, mortgage loans, outstanding balances on lines of credit and notes payable, in each case, as set forth in the then most recent Compliance Certificate delivered pursuant to Section 6.02(b) plus (b) the outstanding amount of Indebtedness of Joint Ventures allocable in accordance with GAAP on account of ownership of interests in Joint Ventures to the Company and its Subsidiaries as of the time of determination (with appropriate adjustments for minority interests) plus (c) the Contingent Obligations of the Company and its Subsidiaries and, to the extent allocable to the Company and its Subsidiaries in accordance with GAAP on account of ownership of interests in Joint Ventures, of the Joint Ventures (with appropriate adjustments for minority interests).

 

“Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C Obligations.

 

“Total Revolving Credit Outstandings” means the aggregate Outstanding Amount of all Revolving Credit Loans, Swing Line Loans, Competitive Loans and L/C Obligations.

 

“Total Secured Outstanding Indebtedness” means, as of any date, the portion of Total Outstanding Indebtedness that is Secured Indebtedness.

 

“Total Term Loan Outstandings” means the aggregate Outstanding Amount of all Term Loans.

 

“Total Unsecured Outstanding Indebtedness” means, as of any date, the portion of Total Outstanding Indebtedness that is not Secured Indebtedness.

 

“Total Value” means, as of any date, the sum, without duplication, of:

 

(a)        unrestricted Cash and Cash Equivalents which would be included on the Consolidated Businesses’ consolidated balance sheet as of such date; plus

 

(b)        Fair Market Value of Marketable Securities; plus

 

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(c)        in respect of Projects owned or ground-leased by the Company and its Subsidiaries for at least four (4) fiscal quarters, the Adjusted Property EBITDA for such Projects as of the first day of the fiscal quarter in which such date occurs for the previous four consecutive fiscal quarters divided by the Capitalization Rate; plus

 

(d)       the investment (at cost without depreciation) in Projects owned or ground-leased by the Company or its Subsidiaries for fewer than four fiscal quarters (with appropriate adjustments for minority interests); plus

 

(e)        the investment in Joint Ventures, valued according to the methodologies under clauses (c) or (d) above which is allocable to the Company or its Subsidiaries based on their ownership interests in the related Joint Ventures in accordance with GAAP; provided that the amount under this clause (e) shall be limited to 30% of Total Value, increasing to 45% upon the acquisition of a Managed REIT; plus

 

(f)        investments in notes secured by mortgages on the Real Property of any Person at cost, less an amount equal to accrued amortization payments in respect thereof; provided that the amount under this clause (f) shall be limited to 10% of Total Value; plus

 

(g)        the product of seven (7) multiplied by the lesser of (i) the Adjusted Management EBITDA for the previous four fiscal quarters or (ii) the product of two (2) multiplied by the Adjusted Management EBITDA for the previous two fiscal quarters; provided that the amount under this clause (g) shall be limited to 25% of Total Value; plus

 

(h)        the book value of all loans made by the Company or its Subsidiaries to Managed REITs; provided that the amount under this clause (h) shall be limited to 10% of Total Value; plus

 

(i)         the Net Asset Value of all investments in the securities of Managed REITs reported under the treatment of equity investments as of the end of the most recent fiscal quarter for which financial statements have been delivered pursuant to Section 6.01; provided that the amount under this clause (i) shall be limited to 15% of Total Value; plus

 

(j)         investments in Real Property under construction which is proceeding to completion in the ordinary course (valued at the aggregate costs incurred and paid to date); provided that the amount under this clause (j) shall be limited to 10% of Total Value; plus

 

(k)        investments (at the lower of cost or market value) in Real Property consisting of undeveloped land; provided that the amount under this clause (k) shall be limited to 5% of Total Value.

 

Notwithstanding the foregoing and solely for the purposes of this definition:

 

(A)       the sum of the aggregate investments by the Company and its consolidated Subsidiaries pursuant to clauses (f), (g), (h) and (i) above shall not exceed 50% of Total Value; and

 

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(B)       the aggregate investments by the Company and its consolidated Subsidiaries in Properties which are not office, self-storage or industrial/manufacturing, retail, or distribution/warehouse in nature shall not exceed 10% of Total Value.

 

“Tranche” means each of the Dollar Tranche and the Alternative Currency Tranche.

 

“Tranche Required Lenders” means, at any time, with respect to a Tranche, Lenders under such Tranche holding more than 50%  of the sum of the (a) Total Revolving Credit Outstandings (with the aggregate amount of each Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this definition) of such Tranche other than the Outstanding Amount of Competitive Loans and (b) aggregate unused Commitments of such Tranche (determined without giving effect to any Competitive Loans outstanding on such date); provided that the unused Commitment of, and the portion of the Total Revolving Credit Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Tranche Required Lenders; provided  further that, the amount of any participation in any Swing Line Loan and Unreimbursed Amounts that such Defaulting Lender has failed to fund that have not been reallocated to and funded by another Lender shall be deemed to be held by the Lender that is the Swing Line Lender or L/C Issuer, as the case may be, in making such determination.

 

“Type” means, (a) with respect to a Competitive Loan, its character as an Absolute Rate Loan or a Eurocurrency Margin Bid Loan and (b) with respect to any other Loan, its character as a Base Rate Loan or a Eurocurrency 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 to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.

 

“UCP” means, with respect to any Letter of Credit, the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce (“ICC”) Publication No. 600 (or such later version thereof as may be in effect at the time of issuance).

 

“Unencumbered Asset Value” means, as of any date, the sum, without duplication, of:

 

(a)        unrestricted Cash and Cash Equivalents which would be included on the Consolidated Businesses’ consolidated balance sheet as of such date; plus

 

(b)        in respect of Unencumbered Eligible Projects owned or ground-leased by the Company and its Subsidiaries for at least four (4) fiscal quarters, the portion of Unencumbered Property NOI derived from such Unencumbered Eligible Projects for the then most recently ended period of four consecutive fiscal quarters divided by the Capitalization Rate; plus

 

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(c)        the investment (at cost without depreciation) in Unencumbered Eligible Projects owned or ground-leased by the Company or its Subsidiaries for fewer than four fiscal quarters (with appropriate adjustments for minority interests); plus

 

(d)       an amount equal to 50% of the book value of investments made by the Company and its Subsidiaries in Unencumbered Eligible Projects consisting of properties that have been vacant for less than twelve (12) months; plus

 

(e)        Management EBITDA for the then most recently ended period of four consecutive fiscal quarters, multiplied by five (5).

 

Notwithstanding the foregoing and solely for the purposes of this definition:

 

(A)       the sum of the aggregate investments by the Company and its consolidated Subsidiaries pursuant to clauses (a), (d) and (e) above shall not exceed 10% of Unencumbered Asset Value, with any excess over the foregoing limit being excluded from the Unencumbered Asset Value;

 

(B)       the aggregate investments by the Company and its consolidated Subsidiaries in Properties that are owned by Managed REITs (other than the existing “U-Haul” Joint Venture) shall not exceed 10% Unencumbered Asset Value, with any excess over the foregoing limit being excluded from the Unencumbered Asset Value; and

 

(C)       not more than 5% of Unencumbered Asset Value at any time may be in respect of Unencumbered Eligible Projects that are located in Poland, with any excess over the foregoing limit being excluded from the Unencumbered Asset Value.

 

“Unencumbered Eligible Project” means an Eligible Project (a) which is located in the United States, Canada, United Kingdom, Germany, Spain, France Japan, Australia, Netherlands, Poland, Switzerland or Finland, (b) with respect to which either (i) one or more of the Loan Parties has a direct or indirect ownership interest of 100% or a ground leasehold interest under an Eligible Ground Lease, or (ii)(A) one or more of the Loan Parties has an ownership interest (whether directly or indirectly through a Subsidiary or through an interest in a Joint Venture) of more than 25%, (B) one or more Managed REITs has all of the remaining ownership interests (whether directly or through an interest in a Joint Venture) not owned by a Loan Party and (C) the Company (whether directly or through a Subsidiary or a Joint Venture Controlled by the Company) controls the management of such Project, and (c) which is not subject (nor are any equity interests therein owned by the Company and Subsidiaries thereof subject) to any Liens or preferred equity interests, except for Permitted Encumbrances and buy sell rights with respect to Joint Ventures on customary terms and conditions.  As used in this definition only, the term “control” shall mean the authority, with sole discretion, to make major management decisions with respect to the applicable Project, including with respect to sale, financing, refinancing, capital improvements, leasing and the grant of Liens on such Project and to manage the day to day operations of such Project.

 

“Unencumbered Management EBITDA” means, for any period, Management EBITDA for such period generated by Persons whose assets and equity interests are not subject to any

 

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Lien other than Permitted Encumbrances and buy sell rights with respect to Joint Ventures on customary terms and conditions.

 

“Unencumbered Property NOI” means the aggregate Net Operating Income from the Unencumbered Eligible Projects.  Unencumbered Property NOI from Joint Ventures with Managed REITs will be calculated as the Net Operating Income allocated to the Company and its Subsidiaries based on their ownership interest in such Joint Venture.

 

“United States” and “U.S.” mean the United States of America.

 

“Unreimbursed Amount” has the meaning specified in Section 2.04(c)(i).

 

“Unsecured Indebtedness Incurrence” has the meaning specified in Section 10.06.

 

“Unused Fee” has the meaning specified in Section 2.10(a).

 

“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).

 

“Wholly-Owned REIT Subsidiary” means any REIT in which the Company owns, directly or indirectly, 100% of the voting equity thereof.

 

“Wholly-Owned Subsidiary” means, as to any Person, another Person all of the Equity Interests of which (except directors’ qualifying shares) are at the time directly or indirectly owned by such Person and/or another Wholly-Owned Subsidiary of such Person.

 

“Yen” and “¥” mean the lawful currency of Japan.

 

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,

 

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Preliminary Statements, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Preliminary Statements, 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 Consolidated Businesses 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 Company or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Company 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, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Company 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.

 

(c)        Consolidation of Variable Interest Entities.  All references herein to consolidated financial statements of the Company and its Subsidiaries or to the determination of any amount for the Company and its Subsidiaries on a consolidated basis or any similar reference shall, in each case, be deemed to include each variable interest entity that the Company

 

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is required to consolidate pursuant to FASB ASC 810 as if such variable interest entity were a Subsidiary as defined herein.

 

(d)       Pro Forma Calculation.  With respect to any reference herein to determining compliance with Section 7.11 on a pro forma basis after giving effect to a transaction or other event, such determination or compliance shall be calculated as though such transaction or other event had been consummated or made as of the first day of the four fiscal quarter period most recently ended for which financial information pursuant to Section 6.01(a) or (b) has been delivered to the Administrative Agent and the Lenders, and on the basis of such financial information.

 

1.04     Rounding.  Any financial ratios required to be maintained by the Company 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 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.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

 

1.06     Letter of Credit Amounts.  Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the Dollar Equivalent of the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

 

1.07     Exchange Rates; Currency Equivalents. (a)  The Administrative Agent or the L/C Issuer, as applicable, shall determine the Spot Rates as of each Revaluation Date to be used for calculating Dollar Equivalents of Credit Extensions and Outstanding Amounts denominated in Alternative Currencies.  Such Spot Rates shall become effective as of such Revaluation Date and shall be the Spot Rates employed in converting any amounts between the applicable currencies until the next Revaluation Date to occur.  Except for purposes of financial statements delivered by Loan Parties hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the applicable amount of any currency (other than Dollars) for purposes of the Loan Documents shall be such Dollar Equivalent as so determined by the Administrative Agent or the L/C Issuer, as applicable.

 

(b)        Wherever in this Agreement in connection with a Borrowing, conversion, continuation or prepayment of a Eurocurrency Rate Loan or the issuance, amendment or extension of a Letter of Credit, an amount, such as a required minimum or multiple amount, is expressed in Dollars, but such Borrowing, Eurocurrency Rate Loan or Letter of Credit is denominated in an Alternative Currency, such amount shall be the relevant Alternative Currency Equivalent of such Dollar amount (rounded to the nearest unit of such Alternative Currency, with

 

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0.5 of a unit being rounded upward), as determined by the Administrative Agent or the L/C Issuer, as the case may be.

 

(c)        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 “Eurocurrency Rate” or with respect to any comparable or successor rate thereto.

 

1.08     Additional Alternative Currencies(a) . The Borrower may from time to time request (each, a “Supplemental Request”) that the Revolving Credit Lenders provide one or more commitments for Eurocurrency Rate Loans to be made and/or Letters of Credit to be issued in a currency (each, a “Supplemental Currency”) other than those specifically listed in the definition of “Alternative Currency” at the time such request is made; provided that the requested Supplemental Currency is a lawful currency (other than Dollars) that is readily available and freely transferable and convertible into Dollars.  Each Supplemental Request shall be (i) subject to the approval of the Administrative Agent and, in the case of a Supplemental Request with respect to the issuance of Letters of Credit, shall be subject to the approval of the L/C Issuer and (ii) made in writing to the Administrative Agent not later than 11:00 a.m., 20 Business Days prior to the date that the desired commitment in such Supplemental Currency would take effect (or such other time or date as may be agreed by the Administrative Agent and, in the case of a Supplemental Request pertaining to Letters of Credit, the L/C Issuer, in its or their sole discretion).  The Administrative Agent shall promptly notify each Revolving Credit Lender following its receipt of a Supplemental Request; and in the case of a Supplemental Request pertaining to Letters of Credit, the Administrative Agent shall promptly notify the L/C Issuer thereof.

 

No Revolving Credit Lender shall be obligated to provide a commitment in a Supplemental Currency.  Each Revolving Credit Lender that agrees to provide a commitment in a Supplemental Currency (each, an “Authorizing Lender”) shall notify the Administrative Agent, not later than 11:00 a.m., ten Business Days after receipt of such Supplemental Request whether it agrees to provide a commitment for Eurocurrency Rate Loans in the applicable Supplemental Currency.

 

Any failure by an Authorizing Lender to respond to such request within the time period specified in the preceding sentence shall be deemed to be a refusal by such Authorizing Lender to provide a commitment in the applicable Supplemental Currency.

 

If the Administrative Agent and, if applicable, the L/C Issuer consent to a Supplemental Request, and one or more Revolving Credit Lenders agree to provide a commitment in the applicable Supplemental Currency, the Administrative Agent shall so notify the Borrower, the Administrative Agent and the Borrower shall determine the date such commitment shall become effective (the “Supplemental Tranche Effective Date”), and any other terms relating thereto.  The Administrative Agent shall promptly distribute a revised Schedule 2.01 to each Revolving Credit Lender reflecting such new commitment and notify each Revolving Credit Lender of the Supplemental Tranche Effective Date.  If the Administrative Agent shall fail to obtain any requisite consent to a Supplemental Request or no Revolving Credit Lender agrees to provide a

 

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commitment in the applicable Supplemental Currency, the Administrative Agent shall promptly so notify the Borrower.

 

Each Supplemental Request shall be made in the form of an addendum substantially in the form of Exhibit J (a “Supplemental Addendum”) and sent to the Administrative Agent and shall set forth the proposed Supplemental Currency and the other matters set forth on the form of Supplemental Addendum.

 

As a condition precedent to the addition of a commitment in a Supplemental Currency to this Agreement: (i) each applicable Authorizing Lender must be able to make Revolving Credit Loans in the Supplemental Currency in accordance with applicable laws and regulations, (ii) each applicable Authorizing Lender providing a commitment in the Supplemental Currency and the Administrative Agent, and the L/C Issuer if its consent to the addition of such commitment is required, must execute the requested Supplemental Addendum, (iii) the Borrower and each other Loan Party must execute the Supplemental Addendum and (iv) any other documents or certificates that shall be reasonably requested by the Administrative Agent in connection with the addition of such commitment shall have been delivered to the Administrative Agent in form and substance reasonably satisfactory to the Administrative Agent.

 

In connection with the addition of a commitment in a Supplemental Currency, the Administrative Agent, the Borrower and the Lenders with such commitments 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 and the Borrower, to implement the provisions of this Section, a copy of which shall be made available to each Lender.  This Section shall supersede any provisions in Section 11.01 to the contrary to the extent necessary to give effect to this Section 1.08.

 

1.09     Change of Currency. (a)  Each obligation of the Borrower to make a payment denominated in the national currency unit of any member state of the European Union that adopts the Euro as its lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption.  If, in relation to the currency of any such member state, the basis of accrual of interest expressed in this Agreement in respect of that currency shall be inconsistent with any convention or practice in the London interbank market for the basis of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such convention or practice with effect from the date on which such member state adopts the Euro as its lawful currency; provided that if any Borrowing in the currency of such member state is outstanding immediately prior to such date, such replacement shall take effect, with respect to such Borrowing, at the end of the then current Interest Period.

 

(b)        Each provision of this Agreement shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be appropriate to reflect the adoption of the Euro by any member state of the European Union and any relevant market conventions or practices relating to the Euro, and the Administrative Agent shall provide three (3) Business Days prior notice to the Company and the Lenders of any such changes of construction prior to application thereof to any provision of this Agreement.

 

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(c)                               Each provision of this Agreement also shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be appropriate to reflect a change in currency of any other country and any relevant market conventions or practices relating to the change in currency.

 

ARTICLE II
 THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01                                            The Loans.  (a)  The Term Borrowing.  Subject to the terms and conditions set forth herein, each Term Lender severally agrees to make a single loan to the Borrower in Dollars on the Closing Date, in an aggregate amount not to exceed such Term Lender’s Term Commitment.  The Term Borrowing shall consist of Term Loans made simultaneously by the Term Lenders in accordance with their respective Applicable Percentages of the Term Facility.  Amounts borrowed under this Section 2.01(a) and repaid or prepaid may not be reborrowed.  Term Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

 

(b)                              The Revolving Credit Borrowings.

 

(i)                                  Dollar Tranche Loans.  Subject to the terms and conditions set forth herein, each Dollar Tranche Lender severally agrees to make loans (each such loan, a “Dollar Tranche Loan”) to the Borrower in Dollars from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Revolving Credit Lender’s Dollar Tranche Commitment; provided, however, that after giving effect to any Revolving Credit Borrowing under this Section 2.01(b)(i), (w) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility at such time, (x) the aggregate Outstanding Amount of Dollar Tranche Loans plus the Outstanding Amount of all L/C Obligations, plus the Outstanding Amount of all Swing Line Loans shall not exceed the Aggregate Dollar Tranche Commitments, (y) the aggregate Outstanding Amount of the Revolving Credit Loans of any Revolving Credit Lender, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all L/C Obligations, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Revolving Credit Lender’s Revolving Credit Commitment and (z) the aggregate Outstanding Amount of the Dollar Tranche Loans of any Revolving Credit Lender, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all L/C Obligations, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Dollar Tranche Commitment.  Within the limits of each Revolving Credit Lender’s Dollar Tranche Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.01(b)(i), prepay under Section 2.06, and reborrow under this Section 2.01(b)(i).  Dollar Tranche Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

 

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(ii)                              Alternative Currency Tranche Loans.  Subject to the terms and conditions set forth herein, each Alternative Currency Tranche Lender severally agrees to make loans (each such loan, an “Alternative Currency Tranche Loan”) to the Borrower in Dollars or in an Alternative Currency for which such Alternative Currency Tranche Lender has an Alternative Currency Tranche Commitment from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Revolving Credit Lender’s Alternative Currency Tranche Commitment or, with respect to any single Alternative Currency, not to exceed the maximum amount (if any) that such Revolving Credit Lender has committed to provide with respect to such Alternative Currency as part of its Alternative Currency Tranche Commitment; provided, however, that after giving effect to any Revolving Credit Borrowing under this Section 2.01(b)(ii), (w) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility at such time, (x) the aggregate Outstanding Amount of Alternative Currency Tranche Loans shall not exceed the Aggregate Alternative Currency Tranche Commitments, (y) the aggregate Outstanding Amount of  Loans denominated in Alternative Currencies shall not exceed the Alternative Currency Sublimit and (z) the aggregate Outstanding Amount of the Revolving Credit Loans of any Revolving Credit Lender, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all L/C Obligations, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Revolving Credit Lender’s Revolving Credit Commitment.  Within the limits of each Revolving Credit Lender’s Alternative Currency Tranche Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.01(b)(ii), prepay under Section 2.06, and reborrow under this Section 2.01(b)(ii).  Alternative Currency Tranche Loans (other than Alternative Currency Tranche Loans in Dollars) shall only be Eurocurrency Rate Loans, as further provided herein.

 

(iii)                          Selection of Tranches.  The Borrower may borrow from one or more Tranches as selected by the Borrower, but each Borrowing within a Tranche shall be made in a currency permitted under such Tranche of the same Type made simultaneously by all Revolving Credit Lenders with a Commitment with respect to such Tranche and currency ratably according to their Commitments with respect to such Tranche and currency.

 

2.02                    Borrowings, Conversions and Continuations of Loans.  (a)  The Term Borrowing, each Revolving Credit Borrowing, each conversion of Term Loans or Revolving Credit Loans from one Type to the other, and each continuation of Eurocurrency Rate Committed Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone.  Each such notice must be received by the Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to the requested date of any Borrowing of, conversion to or continuation of Eurocurrency Rate Committed Loans denominated in Dollars or of any conversion of Eurocurrency Rate Committed Loans denominated in Dollars to Base Rate Loans, (ii) four Business Days (or five Business Days in the case of a Special Notice Currency) prior to the requested date of any Borrowing or continuation of Eurocurrency Rate Committed Loans denominated in Alternative Currencies, and (iii) one Business Day prior to the requested

 

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date of any Borrowing of Base Rate Loans.  Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower.  Each Borrowing of, conversion to or continuation of Eurocurrency Rate Committed Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Except as provided in Sections 2.04(c) and 2.05(c), each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof.  Each Loan Notice (whether telephonic or written) shall specify (i) whether the Borrower is requesting a Term Borrowing, a Revolving Credit Borrowing, a conversion of Term Loans or Revolving Credit Loans from one Type to the other, or a continuation of Eurocurrency Rate Committed Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to which existing Term Loans or Revolving Credit Loans are to be converted, (v) if applicable, the duration of the Interest Period with respect thereto and (vi) the Tranche and currency of any Revolving Credit Loans requested to be borrowed or continued in such Loan Notice.  If the Borrower fails to specify a currency in a Loan Notice requesting a Revolving Credit Borrowing, then the Loan so requested shall be made in Dollars.  If the Borrower fails to specify a Tranche in a Loan Notice requesting a Revolving Credit Borrowing, then the Loan Notice shall be deemed to be a request for a Borrowing under the Dollar Tranche if the request is for a Borrowing in Dollars and the Alternative Currency Tranche if the request is for a Borrowing in an Alternative Currency.  If the Borrower fails to specify a Type of Loan in a Loan Notice or if the Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Term Loans or Revolving Credit Loans shall be made as, or converted to, Base Rate Loans; provided, however, that in the case of a failure to timely request a continuation of Loans denominated in an Alternative Currency, such Loans shall be continued as Eurocurrency Rate Committed Loans in their original currency with an Interest Period of one month.  Any automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurocurrency Rate Committed Loans.  If the Borrower requests a Borrowing of, conversion to, or continuation of Eurocurrency Rate Committed Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.  No Loan may be converted into or continued as a Loan denominated in a different currency or in a different Tranche, but instead must be prepaid in the original currency of such Loan and reborrowed in the other currency or reborrowed or reborrowed in a different Tranche to the extent permitted herein.  Notwithstanding anything to the contrary herein, a Swing Line Loan may not be converted to a Eurocurrency Rate Loan.

 

(b)                              Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each Appropriate Lender of the amount (and currency) of its Applicable Percentage under the applicable Facility (and Applicable Tranche Percentage in the case of Revolving Credit Loans) of the applicable Term Loans or Revolving Credit Loans, and if no timely notice of a conversion or continuation is provided by the Company, the Administrative Agent shall notify each Appropriate Lender of the details of any automatic conversion to Base Rate Loans or continuation of Loans denominated in a currency other than Dollars, in the case described in Section 2.02(a).  In the case of a Term Borrowing or a Revolving Credit Borrowing, each Appropriate Lender shall make the amount of its Loan available to the Administrative Agent in Same Day Funds at the Administrative Agent’s Office for the applicable currency not

 

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later than 1:00 p.m., in the case of any Loan denominated in Dollars, and not later than the Applicable Time specified by the Administrative Agent in the case of any Loan in an Alternative Currency, in each case on the Business Day specified in the applicable Loan Notice.  Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the initial Credit Extension, 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 Bank of America 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; provided, however, that if, on the date a Loan Notice with respect to a Revolving Credit Borrowing denominated in Dollars is given by the Borrower, there are L/C Borrowings outstanding, then the proceeds of such Revolving Credit Borrowing, first, shall be applied to the payment in full of any such L/C Borrowings, and second, shall be made available to the Borrower as provided above.

 

(c)                               Except as otherwise provided herein, a Eurocurrency Rate Committed Loan may be continued or converted only on the last day of an Interest Period for such Eurocurrency Rate Committed Loan.  During the existence of a Default, no Loans may be requested as, converted to or continued as Eurocurrency Rate Committed Loans (whether in Dollars or any Alternative Currency) without the consent of the Required Lenders, and the Required Revolving Lenders may demand that any or all of the then outstanding Eurocurrency Rate Committed Loans denominated in an Alternative Currency be prepaid, or redenominated into Dollars in the amount of the Dollar Equivalent thereof, on the last day of the then current Interest Period with respect thereto.

 

(d)                             The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Eurocurrency 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 Bank of America’s prime rate used in determining the Base Rate promptly following the public announcement of such change.

 

(e)                               After giving effect to all Term Borrowings, all conversions of Term Loans from one Type to the other, and all continuations of Term Loans as the same Type, there shall not be more than five Interest Periods in effect in respect of the Term Facility.  After giving effect to all Revolving Credit Borrowings, all conversions of Revolving Credit Loans from one Type to the other, and all continuations of Revolving Credit Loans as the same Type, there shall not be more than ten Interest Periods in effect in respect of the Revolving Credit Facility.

 

2.03                    Competitive Loans.  (a)  General.  Subject to the terms and conditions set forth herein, each Lender agrees that the Borrower may from time to time on or after the Investment Grade Pricing Effective Date request the Lenders to submit offers to make loans in Dollars (each such loan, a “Competitive Loan”) to the Borrower prior to the Maturity Date pursuant to this Section 2.03; provided, however, that after giving effect to any Competitive Borrowing, (i) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility, and (ii) the aggregate Outstanding Amount of all Competitive Loans shall not exceed the Competitive Loan Sublimit.  There shall not be more than five different Interest Periods in effect with respect to

 

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Competitive Loans at any time.  Notwithstanding anything to the contrary contained herein, only a Revolving Credit Lender may make a Competitive Loan.

 

(b)                              Requesting Competitive Bids.  The Borrower may request the submission of Competitive Bids by delivering a Competitive Bid Request to the Administrative Agent not later than 11:00 a.m. (i) one Business Day prior to the requested date of any Competitive Borrowing that is to consist of Absolute Rate Loans or (ii) four Business Days prior to the requested date of any Competitive Borrowing that is to consist of Eurocurrency Margin Bid Loans.  Each Competitive Bid Request shall specify (i) the requested date of the Competitive Borrowing (which shall be a Business Day), (ii) the aggregate principal amount of Competitive Loans requested (which must be $5,000,000 or a whole multiple of $1,000,000 in excess thereof), (iii) the Type of Competitive Loans requested, and (iv) the duration of the Interest Period with respect thereto, and shall be signed by a Responsible Officer of the Company.  No Competitive Bid Request shall contain a request for Competitive Loans having more than three different Interest Periods.  Unless the Administrative Agent otherwise agrees in its sole discretion, the Borrower may not submit a Competitive Bid Request if it has submitted another Competitive Bid Request within the prior five Business Days.

 

(c)                               Submitting Competitive Bids.

 

(i)                                  The Administrative Agent shall promptly notify each Lender of each Competitive Bid Request received by it from the Borrower and the contents of such Competitive Bid Request.

 

(ii)                              Each Lender may (but shall have no obligation to) submit a Competitive Bid containing an offer to make one or more Competitive Loans in response to such Competitive Bid Request.  Such Competitive Bid must be delivered to the Administrative Agent not later than 10:30 a.m. (A) on the requested date of any Competitive Borrowing that is to consist of Absolute Rate Loans, and (B) three Business Days prior to the requested date of any Competitive Borrowing that is to consist of Eurocurrency Margin Bid Loans; provided, however, that any Competitive Bid submitted by Bank of America in its capacity as a Lender in response to any Competitive Bid Request must be submitted to the Administrative Agent not later than 10:15 a.m. on the date on which Competitive Bids are required to be delivered by the other Lenders in response to such Competitive Bid Request.  Each Competitive Bid shall specify (A) the proposed date of the Competitive Borrowing; (B) the principal amount of each Competitive Loan for which such Competitive Bid is being made, which principal amount (x) may be equal to, greater than or less than the Revolving Credit Commitment of the bidding Lender, (y) must be $5,000,000 or a whole multiple of $1,000,000 in excess thereof, and (z) may not exceed the principal amount of Competitive Loans for which Competitive Bids were requested; (C) if the proposed Competitive Borrowing is to consist of Absolute Rate Bid Loans, the Absolute Rate offered for each such Bid Loan and the Interest Period applicable thereto; (D) if the proposed Competitive Borrowing is to consist of Eurocurrency Margin Bid Loans, the Eurocurrency Bid Margin with respect to each such Eurocurrency Margin Bid Loan and the Interest Period applicable thereto; and (E) the identity of the bidding Lender.

 

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(iii)                          Any Competitive Bid shall be disregarded if it (A) is received after the applicable time specified in clause (ii) above, (B) is not substantially in the form of a Competitive Bid as specified herein, (C) contains qualifying, conditional or similar language, (D) proposes terms other than or in addition to those set forth in the applicable Bid Request, or (E) is otherwise not responsive to such Competitive Bid Request.  Any Lender may correct a Competitive Bid containing a manifest error by submitting a corrected Competitive Bid (identified as such) not later than the applicable time required for submission of Competitive Bids.  Any such submission of a corrected Competitive Bid shall constitute a revocation of the Competitive Bid that contained the manifest error.  The Administrative Agent may, but shall not be required to, notify any Lender of any manifest error it detects in such Lender’s Competitive Bid.

 

(iv)                          Subject only to the provisions of Sections 3.02, 3.03 and 4.02 and clause (iii) above, each Competitive Bid shall be irrevocable.

 

(d)                             Notice to Company of Competitive Bids.  Not later than 11:00 a.m. (i) on the requested date of any Competitive Borrowing that is to consist of Absolute Rate Loans or (ii) three Business Days prior to the requested date of any Competitive Borrowing that is to consist of Eurocurrency Margin Bid Loans, the Administrative Agent shall notify the Borrower of the identity of each Lender that has submitted a Competitive Bid that complies with Section 2.03(c) and of the terms of the offers contained in each such Competitive Bid.

 

(e)                               Acceptance of Competitive Bids.  Not later than 11:30 a.m. (i) on the requested date of any Competitive Borrowing that is to consist of Absolute Rate Loans and (ii) three Business Days prior to the requested date of any Competitive Borrowing that is to consist of Eurocurrency Margin Bid Loans, the Borrower shall notify the Administrative Agent of its acceptance or rejection of the Competitive Bids notified to it pursuant to Section 2.03(d).  The Borrower shall be under no obligation to accept any Competitive Bid and may choose to reject all Competitive Bids.  In the case of acceptance, such notice shall specify the aggregate principal amount of Competitive Bids for each Interest Period that is accepted.  The Borrower may accept any Competitive Bid in whole or in part; provided that:

 

(i)                                  the aggregate principal amount of each Competitive Borrowing may not exceed the applicable amount set forth in the related Competitive Bid Request;

 

(ii)                              the principal amount of each Competitive Loan must be $5,000,000 or a whole multiple of $1,000,000 in excess thereof;

 

(iii)                          the acceptance of Competitive Bids may be made only on the basis of ascending Absolute Rates or Eurocurrency Bid Margins within each Interest Period; and

 

(iv)                          the Borrower may not accept any Competitive Bid that is described in Section 2.03(c)(iii) or that otherwise fails to comply with the requirements hereof.

 

(f)                                Procedure for Identical Bids.  If two or more Lenders have submitted Competitive Bids at the same Absolute Rate or Eurocurrency Bid Margin, as the case may be, for the same Interest Period, and the result of accepting all of such Competitive Bids in whole

 

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(together with any other Competitive Bids at lower Absolute Rates or Eurocurrency Bid Margins, as the case may be, accepted for such Interest Period in conformity with the requirements of Section 2.03(e)(iii)) would be to cause the aggregate outstanding principal amount of the applicable Competitive Borrowing to exceed the amount specified therefor in the related Competitive Bid Request, then, unless otherwise agreed by the Borrower, the Administrative Agent and such Lenders, such Competitive Bids shall be accepted as nearly as possible in proportion to the amount offered by each such Lender in respect of such Interest Period, with such accepted amounts being rounded to the nearest whole multiple of $1,000,000.

 

(g)                              Notice to Lenders of Acceptance or Rejection of Competitive Bids.  The Administrative Agent shall promptly notify each Lender having submitted a Competitive Bid whether or not its Competitive Bid has been accepted and, if its Competitive Bid has been accepted, of the amount of the Competitive Loan or Competitive Loans to be made by it on the date of the applicable Competitive Borrowing.  Any Competitive Bid or portion thereof that is not accepted by the Borrower by the applicable time specified in Section 2.03(e) shall be deemed rejected.

 

(h)                              Notice of Eurocurrency Rate.  If any Competitive Borrowing is to consist of Eurocurrency Margin Bid Loans, the Administrative Agent shall determine the Eurocurrency Rate for the relevant Interest Period, and promptly after making such determination, shall notify the Borrower and the Lenders that will be participating in such Competitive Borrowing of such Eurocurrency Rate.

 

(i)                                  Funding of Competitive Loans.  Each Lender that has received notice pursuant to Section 2.03(g) that all or a portion of its Competitive Bid has been accepted by the Company shall make the amount of its Competitive Loan(s) available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the date of the requested Competitive Borrowing.  Upon satisfaction of the applicable conditions set forth in Section 4.02, the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent.

 

(j)                                  Notice of Range of Competitive Bids.  After each Competitive Bid auction pursuant to this Section 2.03, the Administrative Agent shall notify each Lender that submitted a Competitive Bid in such auction of the ranges of Competitive Bids submitted (without the bidder’s name) and accepted for each Competitive Loan and the aggregate amount of each Competitive Borrowing.

 

2.04                    Letters of Credit.  (a)  The Letter of Credit Commitment.  (i)  Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the Dollar Tranche Lenders set forth in this Section 2.04, (1) from time to time on any Business Day during the period from the Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit denominated in Dollars or in one or more Alternative Currencies for the account of the Borrower or a Guarantor, and to amend or extend Letters of Credit previously issued by it, in accordance with Section 2.04(b), and (2) to honor compliant drawings under the Letters of Credit; and (B) the Dollar Tranche Lenders severally agree to participate in Letters of Credit issued for the account of a Loan Party and any drawings thereunder; provided that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (v) the Total

 

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Revolving Credit Outstandings shall not exceed the Revolving Credit Facility at such time, (w) the aggregate Outstanding Amount of Dollar Tranche Loans plus the Outstanding Amount of all L/C Obligations, plus the Outstanding Amount of all Swing Line Loans shall not exceed the Aggregate Dollar Tranche Commitments, (x) the aggregate Outstanding Amount of the Dollar Tranche Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Dollar Tranche Commitment, (y) the aggregate Outstanding Amount of the Revolving Credit Loans of any Revolving Credit Lender, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Revolving Credit Lender’s Revolving Credit Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Each request by the Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.  All Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from and after the Closing Date shall be subject to and governed by the terms and conditions hereof.

 

(ii)                              The L/C Issuer shall not issue any Letter of Credit if:

 

(A)                          subject to Section 2.04(b)(iii) the expiry date of the requested Letter of Credit would occur more than twelve months after the date of issuance or last extension, unless the Administrative Agent and the L/C Issuer have approved such expiry date; provided that in no event will any Letter of Credit have an expiry date that is later than the first anniversary of the Maturity Date; or

 

(B)                           the expiry date of the requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless the Administrative Agent and the L/C Issuer have approved such expiry date.

 

(iii)                          The L/C Issuer shall not be under any obligation to issue any Letter of Credit if:

 

(A)                          any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing that Letter of Credit, or any Law applicable to the L/C Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or that Letter of Credit in particular or shall impose upon the L/C Issuer with respect to that Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or

 

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expense which was not applicable on the Closing Date and which the L/C Issuer in good faith deems material to it;

 

(B)                           the issuance of that Letter of Credit would violate one or more policies of the L/C Issuer applicable to letters of credit generally;

 

(C)                           except as otherwise agreed by the Administrative Agent and the L/C Issuer, that Letter of Credit is in an initial stated amount less than $500,000;

 

(D)                          that Letter of Credit is to be denominated in a currency other than Dollars or an Alternative Currency;

 

(E)                            the L/C Issuer does not as of the issuance date of such requested Letter of Credit issue Letters of Credit in the requested currency; or

 

(F)                             any Lender is at that time a Defaulting Lender, unless the L/C Issuer has entered into arrangements, including the delivery of Cash Collateral, satisfactory to the L/C Issuer (in its sole discretion) with the Borrower or such Lender to eliminate the L/C Issuer’s actual or potential Fronting Exposure (after giving effect to Section 2.18(a)(iv)) with respect to the Defaulting Lender arising from that Letter of Credit and all other L/C Obligations as to which the L/C Issuer has actual or potential Fronting Exposure with respect to such Defaulting Lender, as it may elect in its sole discretion.

 

(iv)                          The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be permitted at such time to issue that Letter of Credit in its amended form under the terms hereof.

 

(v)                              The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the L/C Issuer would have no obligation at such time to issue that Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of that Letter of Credit does not accept the proposed amendment to that Letter of Credit.

 

(vi)                          The L/C Issuer shall act on behalf of the Revolving Credit Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in Article IX with respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article IX included the L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to the L/C Issuer.

 

(b)                              Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit.  (i)  Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower.  Such Letter of Credit Application may be sent by facsimile, by United States mail, by overnight courier, by electronic transmission using the

 

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system provided by the L/C Issuer, by personal delivery or by any other means acceptable to the L/C Issuer.  Such Letter of Credit Application must be received by the L/C Issuer and the Administrative Agent not later than 11:00 a.m. at least two Business Days (or such later date and time as the Administrative Agent and the L/C Issuer may agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be.  In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer:  (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount and currency thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; and (H) such other matters as the L/C Issuer may require.  In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer (1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature of the proposed amendment; and (4) such other matters as the L/C Issuer may require.  Additionally, the Borrower shall furnish to the L/C Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may require.

 

(ii)                              Promptly after receipt of any Letter of Credit Application, the L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, the L/C Issuer will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has received written notice from any Revolving Credit Lender, the Administrative Agent or any Loan Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Borrower or the applicable Guarantor or enter into the applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter of Credit, each Dollar Tranche Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Revolving Credit Lender’s Applicable Dollar Tranche Percentage times the amount of such Letter of Credit.

 

(iii)                          If the Borrower so requests in any applicable Letter of Credit Application, the L/C Issuer may, in its sole discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued.

 

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Unless otherwise directed by the L/C Issuer, the Borrower shall not be required to make a specific request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter of Credit has been issued, the Revolving Credit Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date; provided, however, that the L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined that it would not be permitted, or would have no obligation at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.04(a) or otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before the day that is seven Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that the Required Revolving Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Revolving Credit Lender or the Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied, and in each such case directing the L/C Issuer not to permit such extension.

 

(iv)                          Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.

 

(v)                              If the expiry date of any Letter of Credit would occur after the Maturity Date, the Borrower hereby agrees that it will at least seven days prior to the Maturity Date (or, in the case of a Letter of Credit issued or extended on or after seven days prior to the Maturity Date, on the date of such issuance or extension, as applicable) Cash Collateralize such Letter of Credit.

 

(c)                               Drawings and Reimbursements; Funding of Participations.  (i)  Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower and the Administrative Agent thereof.  In the case of a Letter of Credit denominated in an Alternative Currency, the Borrower shall reimburse the L/C Issuer in such Alternative Currency, unless (A) the L/C Issuer (at its option) shall have specified in such notice that it will require reimbursement in Dollars, or (B) in the absence of any such requirement for reimbursement in Dollars, the Borrower shall have notified the L/C Issuer promptly following receipt of the notice of drawing that the Borrower will reimburse the L/C Issuer in Dollars.  In the case of any such reimbursement in Dollars of a drawing under a Letter of Credit denominated in an Alternative Currency, the L/C Issuer shall notify the Borrower of the Dollar Equivalent of the amount of the drawing promptly following the determination thereof.  Not later than 11:00 a.m. on the date of any payment by the L/C Issuer under a Letter of Credit to be reimbursed in Dollars, or the Applicable Time on the date of any payment by the L/C Issuer under a Letter of Credit to be reimbursed in an Alternative Currency (each such date, an “Honor Date”), the Borrower shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing and in the applicable currency.  If the Borrower fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each Dollar Tranche Lender of the Honor Date, the amount of the unreimbursed drawing (expressed in Dollars in the Dollar Equivalent thereof in the case of a Letter of Credit

 

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denominated in an Alternative Currency) (the “Unreimbursed Amount”), and the amount of such Revolving Credit Lender’s Applicable Dollar Tranche Percentage thereof.  In such event, the Borrower shall be deemed to have requested a Revolving Credit Borrowing of Base Rate Loans under the Dollar Tranche to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion of the Dollar Tranche Commitments and the conditions set forth in Section 4.02 (other than the delivery of a Loan Notice).  Any notice given by the L/C Issuer or the Administrative Agent pursuant to this Section 2.04(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

 

(ii)                              Each Dollar Tranche Lender shall upon any notice pursuant to Section 2.04(c)(i) make funds available (and the Administrative Agent may apply Cash Collateral for this purpose) for the account of the L/C Issuer, in Dollars, at the Administrative Agent’s Office for Dollar denominated payments in an amount equal to its Applicable Dollar Tranche Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the provisions of Section 2.04(c)(iii), each Dollar Tranche Lender that so makes funds available shall be deemed to have made a Revolving Credit Loan under the Dollar Tranche that is a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall remit the funds so received to the L/C Issuer in Dollars.

 

(iii)                          With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving Credit Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate.  In such event, each Dollar Tranche Lender’s payment to the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.04(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Section 2.04.

 

(iv)                          Until each Dollar Tranche Lender funds its Revolving Credit Loan or L/C Advance pursuant to this Section 2.04(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Applicable Dollar Tranche Percentage of such amount shall be solely for the account of the L/C Issuer.

 

(v)                              Each Dollar Tranche Lender’s obligation to make Revolving Credit Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.04(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the L/C Issuer,

 

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the Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Dollar Tranche Lender’s obligation to make Revolving Credit Loans pursuant to this Section 2.04(c) is subject to the conditions set forth in Section 4.02 (other than delivery by the Borrower of a Loan Notice).  No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit, together with interest as provided herein.

 

(vi)                          If any Dollar Tranche Lender fails to make available to the Administrative Agent for the account of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(ii), then, without limiting the other provisions of this Agreement, the L/C Issuer shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the L/C Issuer at a rate per annum equal  to the applicable Overnight Rate from time to time in effect, plus any administrative, processing or similar fees customarily charged by the L/C Issuer in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Loan included in the relevant Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case may be as of the date of such Borrowing or L/C Advance.  A certificate of the L/C Issuer submitted to any Dollar Tranche Lender (through the Administrative Agent) with respect to any amounts owing under this Section 2.04(c)(vi) shall be conclusive absent manifest error.

 

(d)                             Repayment of Participations.  (i)  At any time after the L/C Issuer has made a payment under any Letter of Credit and has received from any Dollar Tranche Lender such Lender’s L/C Advance or proceeds of such Dollar Tranche Lender’s Revolving Credit Loan in respect of such payment in accordance with Section 2.04(c), if the Administrative Agent receives for the account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Applicable Dollar Tranche Percentage thereof in Dollars and in the same funds as those received by the Administrative Agent.

 

(ii)                              If any payment received by the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.04(c)(i) and paid to the Dollar Tranche Lenders entitled thereto is required to be returned under any of the circumstances described in Section 11.05 (including pursuant to any settlement entered into by the L/C Issuer in its discretion), each Dollar Tranche Lender shall pay to the Administrative Agent for the account of the L/C Issuer its Applicable Dollar Tranche Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to the Overnight Rate from time to time in effect; provided that, any demand made by the Administrative Agent after 2:00 p.m. on any Business Day shall be deemed received by

 

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the Lenders on the immediately following Business Day.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 

(e)                               Obligations Absolute.  The Borrower’s obligation to reimburse the L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing and each Revolving Credit Loan made pursuant to Section 2.04(c) shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:

 

(i)                                  any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other Loan Document;

 

(ii)                              the existence of any claim, counterclaim, setoff, defense or other right that the Borrower or any Subsidiary thereof may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer, any Lender or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction;

 

(iii)                          any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit;

 

(iv)                          waiver by the L/C Issuer of any requirement that exists for the L/C Issuer’s protection and not the protection of the Borrower;

 

(v)                              honor of a demand for payment presented electronically even if such Letter of Credit requires that demand be in the form of a draft;

 

(vi)                          any payment by the L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law;

 

(vii)                      any adverse change in the relevant exchange rates or in the availability of the relevant Alternative Currency to the Borrower or any Subsidiary thereof; or

 

(viii)                  any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Borrower or any of its Subsidiaries.

 

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The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s instructions or other irregularity, the Borrower will immediately notify the L/C Issuer.  The Borrower shall be conclusively deemed to have waived any such claim against the L/C Issuer and its correspondents unless such notice is given as aforesaid.

 

(f)                                Role of L/C Issuer.  Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document.  None of the L/C Issuer, the Administrative Agent, any Lender, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Revolving Credit Lenders, the Required Revolving Lenders or the Require Dollar Tranche Lender, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document.  The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement.  None of the L/C Issuer, the Administrative Agent, any Lender, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable or responsible for any of the matters described in clauses (i) through (vii) of Section 2.04(e); provided, however, that anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit (other than as a result of an order of a court of competent jurisdiction).  In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

 

(g)                              Applicability of ISP and UCP 600; Limitation of Liability.  Unless otherwise expressly agreed by the L/C Issuer and the Borrower when a Letter of Credit is issued (including any such agreement applicable to an Existing Letter of Credit), the rules of the ISP or UCP 600 shall apply to such Letter of Credit.  Notwithstanding the foregoing, the L/C Issuer shall not be responsible to the Borrower for, and the L/C Issuer’s rights and remedies against the Borrower shall not be impaired by, any action or inaction of the L/C Issuer required or permitted under any law, order, or practice that is required or permitted to be applied to any Letter of Credit or this Agreement, including the Law or any order of a jurisdiction where the L/C Issuer

 

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or the beneficiary is located, the practice stated in the ISP or UCP, as applicable, or in the decisions, opinions, practice statements, or official commentary of the ICC Banking Commission, the Bankers Association for Finance and Trade - International Financial Services Association (BAFT-IFSA), or the Institute of International Banking Law & Practice, whether or not any Letter of Credit chooses such law or practice.

 

(h)                              Letter of Credit Fees.  The Borrower shall pay to the Administrative Agent for the account of each Dollar Tranche Lender in accordance, subject to adjustment as provided in Section 2.18,  with its Applicable Dollar Tranche Percentage, in Dollars, a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Rate times the Dollar Equivalent of the daily amount available to be drawn under such Letter of Credit; provided, however, any Letter of Credit Fees otherwise payable for the account of a Defaulting Lender with respect to any Letter of Credit as to which such Defaulting Lender has not provided Cash Collateral satisfactory to the L/C Issuer pursuant to this Section 2.04 shall be payable, to the maximum extent permitted by applicable Law, to the other Dollar Tranche Lenders in accordance with the upward adjustments in their respective Applicable Dollar Tranche Percentages allocable to such Letter of Credit pursuant to Section 2.18(a)(iv), with the balance of such fee, if any, payable to the L/C Issuer for its own account.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  Letter of Credit Fees shall be (i) due and payable on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii) computed on a quarterly basis in arrears.  If there is any change in the Applicable Rate during any quarter, the daily amount available to be drawn under each  Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.  Notwithstanding anything to the contrary contained herein, upon the request of the Required Revolving Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

 

(i)                                  Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer.  The Borrower shall pay directly to the L/C Issuer for its own account, in Dollars, a fronting fee with respect to each  Letter of Credit, at a rate per annum equal to 0.125%, computed on the Dollar Equivalent of the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears.  Such fronting fee shall be due and payable on the tenth Business Day after the end of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first payment), commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  In addition, the Borrower shall pay directly to the L/C Issuer for its own account, in Dollars, the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in effect.  Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

 

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(j)                                  Conflict with Issuer Documents.  In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

 

(k)                              Letters of Credit Issued for the Borrower and its Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of the Borrower, or is for the account of a Subsidiary thereof, the Borrower shall be obligated to reimburse the L/C Issuer hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the issuance of such Letters of Credit inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.

 

(l)                                  Letters of Credit Issued Under Dollar Tranche.  Without regard to the currency in which a Letter of Credit is denominated, each Letter of Credit may only be issued under the Dollar Tranche.  Letters of Credit may not be issued under any other Tranche.

 

2.05                    Swing Line Loans.  (a)  The Swing Line.  Subject to the terms and conditions set forth herein, the Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set forth in this Section 2.05, to make loans in Dollars (each such loan, a “Swing Line Loan”) to the Borrower from time to time on any Business Day during the Availability Period in an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with (i) the Applicable Revolving Credit Percentage of the Outstanding Amount of Revolving Credit Loans and the Applicable Dollar Tranche Percentage of L/C Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Revolving Credit Commitment and (ii) the aggregate Outstanding Amount of the Dollar Tranche Loans and the Applicable Dollar Tranche Percentage of L/C Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Dollar Tranche Commitment; provided, however, that after giving effect to any Swing Line Loan, (i) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility at such time, (ii) the aggregate Outstanding Amount of the Revolving Credit Loans of any Revolving Credit Lender at such time, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all L/C Obligations at such time, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all Swing Line Loans at such time shall not exceed such Revolving Credit Lender’s Revolving Credit Commitment, (iii) the aggregate Outstanding Amount of the Dollar Tranche Loans of any Revolving Credit Lender, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all L/C Obligations, plus such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Revolving Credit Lender’s Dollar Tranche Commitment and (iv) the aggregate Outstanding Amount of the Dollar Tranche Loans, plus the Outstanding Amount of all L/C Obligations, plus the Outstanding Amount of all Swing Line Loans shall not exceed the Aggregate Dollar Tranche Commitments, and provided  further that (x) the Borrower shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan and (y) the Swing Line Lender shall not be under any obligation to make any Swing Line Loan if it shall determine (which determination shall be conclusive and binding absent manifest error) that it has, or by such Credit Extension may have, Fronting Exposure.  Within the foregoing limits, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.05, prepay under Section 2.06, and reborrow under

 

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this Section 2.05.  Each Swing Line Loan shall bear interest only at a rate based on the Base Rate.  Immediately upon the making of a Swing Line Loan, each Dollar Tranche Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Revolving Credit Lender’s Applicable Dollar Tranche Percentage times the amount of such Swing Line Loan.

 

(b)                              Borrowing Procedures.  Each Swing Line Borrowing shall be made upon the Borrower’s irrevocable notice, to the Swing Line Lender and the Administrative Agent, which may be given by telephone.  Each such notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $100,000, and (ii) the requested borrowing date, which shall be a Business Day.  Each such telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of the Company.  Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Revolving Credit Lender) prior to 2:00 p.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to the first sentence of Section 2.05(a), or (B) that one or more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrower at its office by crediting the account of the Borrower on the books of the Swing Line Lender in Same Day Funds or, if specified in the Swing Line Notice delivered to the Swing Line Lender, by transfer of Same Day Funds to a bank specified by the Borrower, for credit to an account at such bank specified by the Borrower, in such Swing Line Notice.

 

(c)                               Refinancing of Swing Line Loans.  (i)  The Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the Borrower (which hereby irrevocably authorizing the Swing Line Lender to so request on its behalf), that each Dollar Tranche Lender make a Base Rate Loan in an amount equal to such Lender’s Applicable Dollar Tranche Percentage of the amount of Swing Line Loans then outstanding.  Such request shall be made in writing (which written request shall be deemed to be a Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.02, without regard to the minimum and multiples specified therein for the principal amount of Base Rate Loans, but subject to the unutilized portion of the Aggregate Dollar Tranche Commitments and the conditions set forth in Section 4.02.  The Swing Line Lender shall furnish the Borrower with a copy of the applicable Loan Notice promptly after delivering such notice to the Administrative Agent.  Each Dollar Tranche Lender shall make an amount equal to its Applicable Dollar Tranche Percentage of the amount specified in such Loan Notice available to the Administrative Agent in Same Day Funds (and the Administrative Agent may apply Cash Collateral available with respect to the applicable Swing Line Loan) for the account of the Swing Line Lender at the Administrative Agent’s Office

 

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for Dollar-denominated payments not later than 1:00 p.m. on the day specified in such Loan Notice (or on the immediately following Business Day if such notice is received by the Lenders after 11:00 a.m. on the specified funding date), whereupon, subject to Section 2.05(c)(ii), each Dollar Tranche Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall remit the funds so received to the Swing Line Lender.

 

(ii)                              If for any reason any Swing Line Loan cannot be refinanced by such a Revolving Credit Borrowing in accordance with Section 2.05(c)(i), the request for Base Rate Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Dollar Tranche Lenders fund its risk participation in the relevant Swing Line Loan and each Dollar Tranche Lender’s payment to the Administrative Agent for the account of the Swing Line Lender pursuant to Section 2.05(c)(i) shall be deemed payment in respect of such participation.

 

(iii)                          If any Dollar Tranche Lender fails to make available to the Administrative Agent for the account of the Swing Line Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.05(c) by the time specified in Section 2.05(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lender at a rate per annum equal to the applicable Overnight Rate from time to time in effect, plus any administrative, processing or similar fees customarily charged by the Swing Line Lender in connection with the foregoing.  If such Dollar Tranche Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Loan included in the relevant Borrowing or funded participation in the relevant Swing Line Loan, as the case may be, as of the date of such Borrowing or the required date of funding of such participations.  A certificate of the Swing Line Lender submitted to any Dollar Tranche Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.

 

(iv)                          Each Dollar Tranche Lender’s obligation to make Dollar Tranche Loans or to purchase and fund risk participations in Swing Line Loans pursuant to this Section 2.05(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Dollar Tranche Lender’s obligation to make Revolving Credit Loans pursuant to this Section 2.05(c) is subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall relieve or otherwise impair the obligation of the Borrower to repay Swing Line Loans, together with interest as provided herein.

 

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(d)                             Repayment of Participations.  (i)  At any time after any Dollar Tranche Lender has purchased and funded a risk participation in a Swing Line Loan or made a Revolving Credit Loan pursuant to Section 2.05(c), if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Dollar Tranche Lender its Applicable Dollar Tranche Percentage thereof in the same funds as those received by the Swing Line Lender.

 

(ii)                              If any payment received by the Swing Line Lender in respect of principal or interest on any Swing Line Loan and paid to the Dollar Tranche Lenders is required to be returned by the Swing Line Lender under any of the circumstances described in Section 11.05 (including pursuant to any settlement entered into by the Swing Line Lender in its discretion), each Dollar Tranche Lender shall pay to the Swing Line Lender its Applicable Dollar Tranche Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the applicable Overnight Rate.  The Administrative Agent will make such demand upon the request of the Swing Line Lender.  The obligations of the Dollar Tranche Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 

(e)                               Interest for Account of Swing Line Lender.  The Swing Line Lender shall be responsible for invoicing the Borrower for interest on the Swing Line Loans.  Until each Dollar Tranche Lender funds its Base Rate Loan or risk participation pursuant to this Section 2.05 to refinance such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of any Swing Line Loan, interest in respect of such Applicable Dollar Tranche Percentage shall be solely for the account of the Swing Line Lender.

 

(f)                                Payments Directly to Swing Line Lender.  The Borrower shall make all payments of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

 

(g)                              Swing Line Loan Made Under Dollar Tranche.  Each Swing Line Loan may only be made under the Dollar Tranche.  Swing Line Loans may not be made under any other Tranche.

 

2.06                    Prepayments.  (a)  Optional.  (i)  The Borrower may, upon notice from the Company to the Administrative Agent, at any time or from time to time voluntarily prepay Term Loans and Revolving Credit Loans in whole or in part without premium or penalty; provided that (A) such notice must be received by the Administrative Agent not later than 11:00 a.m. (1) three Business Days prior to any date of prepayment of Eurocurrency Rate Loans denominated in Dollars, (2) four Business Days (or five, in the case of prepayment of Loans denominated in Special Notice Currencies) prior to any date of prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies, and (3) on the date of prepayment of Base Rate Loans; (B) any prepayment of Eurocurrency Rate Loans (whether denominated in Dollars or in Alternative Currencies) shall be in a minimum principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and (C) any prepayment of Base Rate Loans shall be in a minimum principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.  Each such notice shall

 

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specify the date and amount of such prepayment, the Facility, Tranche (if applicable) and the Type(s) of Loans to be prepaid and, if Eurocurrency Rate Loans are to be prepaid, the currency and Interest Period(s) of such Loans.  The Administrative Agent will promptly notify each Appropriate Lender of its receipt of each such notice, and of the amount of such Lender’s ratable portion of such prepayment (based on such Lender’s Applicable Percentage in respect of any prepayment of the Term Facility and such Lender’s Applicable Tranche Percentage in respect of any prepayment of any Tranche under the Revolving Credit Facility).  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 Eurocurrency Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05.  Subject to Section 2.18, each such prepayment shall be promptly paid to the Lenders in accordance with their respective Applicable Percentages in respect of any prepayment of the Term Facility and their respective Applicable Tranche Percentage in respect of any prepayment of a Tranche under the Revolving Credit Facility.

 

(ii)        No Competitive Loan may be prepaid without the prior consent of the applicable Competitive Loan Lender.

 

(iii)       The Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part without premium or penalty; provided that (A) such notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the date of the prepayment, and (B) any such prepayment shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and amount 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.

 

(b)        Mandatory.  (i)  If the Administrative Agent notifies the Company at any time that, the Total Outstandings exceed the Aggregate Commitments then in effect, then within two Business Days after receipt of such notice, the Borrower shall prepay Loans (including Swing Line Loans and L/C Borrowings) and/or Cash Collateralize the L/C Obligations (other than the L/C Borrowings) in an aggregate amount at least equal to such excess; provided, however, that, the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.06(b) unless after the prepayment in full of the Revolving Credit Loans the Total Revolving Credit Outstandings exceed the Revolving Credit Facility then in effect.  The Administrative Agent may, at any time and from time to time after the initial deposit of such Cash Collateral, request that additional Cash Collateral be provided in order to protect against the results of further exchange rate fluctuations.

 

(ii)        If the Administrative Agent notifies the Borrower at any time that the Outstanding Amount of all Revolving Credit Loans denominated in Alternative Currencies at such time exceeds an amount equal to 105% of the Alternative Currency Sublimit then in effect, then, within two Business Days after receipt of such notice, the Borrower shall prepay Revolving Credit Loans in an aggregate amount sufficient to

 

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reduce such Outstanding Amount as of such date of payment to an amount not to exceed 100% of the Alternative Currency Sublimit then in effect.

 

(iii)       Each prepayment of Loans pursuant to the foregoing provisions of this Section 2.06(b) shall be applied, first, to the Revolving Credit Facility in the manner set forth in clause (iv) of this Section 2.06(b) and, second, to the Term Facility.

 

(iv)       Prepayments of the Revolving Credit Facility made pursuant to this Section 2.06(b), first, shall be applied ratably to the L/C Borrowings and the Swing Line Loans, second, shall be applied ratably to the outstanding Revolving Credit Loans, and, third, shall be used to Cash Collateralize the remaining L/C Obligations.  Upon a drawing under any Letter of Credit that has been Cash Collateralized, the funds held as Cash Collateral shall be applied (without any further action by or notice to or from any Loan Party) to reimburse the L/C Issuer or the Revolving Credit Lenders, as applicable.

 

(v)        If the Administrative Agent notifies the Borrower at any time that the Outstanding Amount of the L/C Obligations exceeds 105% of the Letter of Credit Sublimit then in effect, then, within two Business Days after receipt of such notice, the Borrower shall Cash Collateralize the L/C Obligations to the extent necessary, such that, after giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash Collateralized hereunder does not exceed 100% of the Letter of Credit Sublimit.

 

2.07     Termination or Reduction of Commitments.  (a)  Optional.  During the Availability Period in respect of the applicable Facility, the Borrower may, upon notice to the Administrative Agent, terminate the Revolving Credit Facility, the Letter of Credit Sublimit, the Swing Line Sublimit, the Alternative Currency Sublimit or the Term Facility, or from time to time permanently reduce the Revolving Credit Facility, the Letter of Credit Sublimit, the Swing Line Sublimit, the Alternative Currency Sublimit or, prior to the date that Term Loans are drawn, any portion of the aggregate Term Commitments; provided that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. five Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess thereof, and (iii) the Borrower shall not terminate or reduce (A) the Revolving Credit Facility if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Revolving Credit Outstandings would exceed the Revolving Credit Facility (as so reduced), (B) the Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash Collateralized hereunder would exceed the Letter of Credit Sublimit, (C) the Swing Line Sublimit if, after giving effect thereto and to any concurrent prepayments hereunder, the Outstanding Amount of Swing Line Loans would exceed the Swing Line Sublimit, (D) the Alternative Currency Sublimit if, after giving effect thereto and to any concurrent prepayments hereunder, the Outstanding Amount of Revolving Credit Loans denominated in Alternative Currencies would exceed the Alternative Currency Sublimit, (E) the Aggregate Dollar Tranche Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the aggregate Outstanding Amount of Dollar Tranche Loans would exceed the Aggregate Dollar Tranche Commitments (as so reduced), or (F) the Aggregate Alternative Currency Tranche Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the aggregate Outstanding Amount of Alternative

 

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Currency Tranche Loans would exceed the Aggregate Alternative Currency Tranche Commitments (as so reduced).

 

(b)        Mandatory.  (i)  The aggregate Term Commitments shall be automatically and permanently reduced to zero on the last day of the Availability Period for the Term Facility.

 

(ii)        If, after giving effect to any reduction or termination of (x) Revolving Credit Commitments under this Section 2.07, the Competitive Loan Sublimit, the Letter of Credit Sublimit, the Swing Line Sublimit, the Aggregate Dollar Tranche Commitments, the Aggregate Alternative Currency Tranche Commitments or the Alternative Currency Sublimit exceeds the Revolving Credit Facility at such time, the Competitive Loan Sublimit, the Letter of Credit Sublimit, the Swing Line Sublimit, the Aggregate Dollar Tranche Commitments, the Aggregate Alternative Currency Tranche Commitments or the Alternative Currency Sublimit, as the case may be, shall be automatically reduced by the amount of such excess, or (y) the Aggregate Dollar Tranche Commitments under this Section 2.07, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds the Aggregate Dollar Tranche Commitments at such time, the Letter of Credit Sublimit or the Swing Line Sublimit, as the case may be, shall be automatically reduced by the amount of such excess.

 

(c)        Application of Commitment Reductions; Payment of Fees.  (i) The Administrative Agent will promptly notify the Lenders of any termination or reduction of the Letter of Credit Sublimit, the Swing Line Sublimit, the Alternative Currency Sublimit or the Revolving Credit Facility under this Section 2.07.  Upon any reduction of the Revolving Credit Facility, the Revolving Credit Commitment of each Revolving Credit Lender shall be reduced by such Lender’s Applicable Revolving Credit Percentage of such reduction amount.  All fees in respect of the Revolving Credit Facility accrued until the effective date of any termination of the Revolving Credit Facility shall be paid on the effective date of such termination.

 

(ii)        The Administrative Agent will promptly notify the Lenders of any termination or reduction of the unused portion of the aggregate Term Commitments under this Section 2.07.  Upon any reduction of the unused portion of the aggregate Term Commitments, the Term Commitment of each Term Lender shall be reduced by such Lender’s ratable portion of such reduction amount.  All fees in respect of the Term Facility accrued until the effective date of any termination of the Term Facility shall be paid on the effective date of such termination.

 

2.08     Repayment of Loans.  (a)  Term Loans.  The Borrower shall repay to the Term Lenders on the Maturity Date the aggregate principal amount of all Term Loans outstanding on such date.

 

(b)        Revolving Credit Loans.  The Borrower shall repay to the Revolving Credit Lenders on the Maturity Date the aggregate principal amount of all Revolving Credit Loans outstanding on such date.

 

(c)        Competitive Loans.  The Borrower shall repay each Competitive Loan on the last day of the Interest Period in respect thereof.

 

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(d)       Swing Line Loans.  The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) the date ten Business Days after such Swing Line Loan is made and (ii) the Maturity Date.

 

2.09     Interest.  (a)  Subject to the provisions of Section 2.09(b), (i) each Eurocurrency Rate Committed Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurocurrency Rate for such Interest Period plus the Applicable Rate; (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate; (iii) each Competitive Loan shall bear interest on the outstanding principal amount thereof for the Interest Period therefor at a rate per annum equal to the Eurocurrency Rate for such Interest Period plus (or minus) the Eurocurrency Bid Margin, or at the Absolute Rate for such Interest Period, as the case may be, and (iv) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate applicable to Base Rate Loans.

 

(b)        (i)  While any Event of Default arising under Section 8.01(a)(i) exists, or upon the request of the Required Lenders while any other 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.

 

(ii)        Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

 

(c)        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.

 

2.10     Fees.  In addition to certain fees described in Sections 2.04(h) and (i) and Section 2.15(b):

 

(a)        Revolving Credit Facility Fees.  At all times during the Availability Period for the Revolving Credit Facility, including at any time during which one or more of the conditions in Article IV is not met, the Borrower agrees to pay to the Administrative Agent for the account of each Revolving Credit Lender (i) prior to the Investment Grade Pricing Effective Date, an unused fee (the “Unused Fee”) equal to the Applicable Rate times the actual daily amount by which such Revolving Credit Lender’s Revolving Credit Commitment exceeds the sum of (x) the Outstanding Amount of Revolving Credit Loans made by such Revolving Credit Lender and (y) such Revolving Credit Lender’s Applicable Dollar Tranche Percentage of the Outstanding Amount of L/C Obligations subject to adjustment as provided in Section 2.18 or (ii) at all times on and after the Investment Grade Pricing Effective Date, a facility fee (the “Facility Fee”) equal to the Applicable Rate on the actual daily amount of the Revolving Credit Facility (or, if the Revolving Credit Commitments have terminated, on the Total Revolving

 

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Credit Outstandings) times its Applicable Revolving Credit Percentage.  Accrued Unused Fees pursuant to clause (i) above and Facility Fees pursuant to clause (ii) above shall be payable quarterly in arrears on the last day of March, June, September and December of each year commencing on the first such date after the Closing Date, and on the date on which the Revolving Credit Commitments terminate; provided that any fees pursuant to clause (i) or (ii) accruing after the date on which the Revolving Credit Commitments terminate shall be payable on demand. The Unused Fee and the Facility Fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.

 

(b)        Other Fees.  (i)  The Company shall pay to the Arrangers and the Administrative Agent for their own respective accounts, in Dollars, fees in the amounts and at the times specified in the Fee Letter.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

(ii)        The Company shall pay to the Lenders, in Dollars, such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

2.11     Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate  (a)  All computations of interest based on the Eurocurrency Rate (other than with respect to Base Rate Loans) will be made by the Administrative Agent on the basis of a year of 360 days, except that (i) with respect to any Loan denominated in Sterling such computations will be made by the Administrative Agent on the basis of a year of 365 days and (ii) with respect to any Loan denominated in an Alternative Currency (other than Sterling and Euro) such computations will be made by the Administrative Agent in accordance with market practice for such Alternative Currency, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or fees are payable.  All computations of interest in respect of Base Rate Loans and of facility fees and letter of credit commission will be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or fees are payable.  Each determination by the Administrative Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. With respect to all Non-LIBOR Quoted Currencies, the calculation of the applicable interest rate shall be determined in accordance with market practice.

 

(b)        If, as a result of any restatement of or other adjustment to the financial statements of the Company or for any other reason, the Company or the Administrative Agent determine that (i) the Leverage Ratio as calculated by the Company as of any applicable date was inaccurate and (ii) a proper calculation of the Leverage Ratio would have resulted in higher pricing for such period, the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent for the account of the applicable Lenders or the L/C Issuer, as the case may be, promptly on demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under any Debtor Relief Law, automatically and without further action by the Administrative Agent, any Lender or the L/C

 

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Issuer), an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period.  This paragraph shall not limit the rights of the Administrative Agent, any Lender or the L/C Issuer, as the case may be, under Sections 2.04(c)(iii), 2.04(h) or 2.09(b) or under Article VIII.  The Borrower’s obligations under this paragraph shall survive the termination of the Aggregate Commitments and the repayment of all other Obligations hereunder.

 

2.12     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.  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.  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 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, currency and maturity of its Loans and payments with respect thereto.

 

(b)        In addition to the accounts and records referred to in Section 2.12(a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing Line Loans.  In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

 

2.13     Payments Generally; Administrative Agent’s Clawback.  (a)  General.  All payments to be made by any Loan Party shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff.  Each prepayment of a Eurocurrency Rate Loan shall be accompanied by any additional amount required pursuant to Section 3.05.  Subject to Section 2.18, (i) each prepayment of a Loan under the Term Facility shall be paid to the Appropriate Lenders in accordance with their Applicable Percentages, (ii) each prepayment of a Dollar Tranche Loan under the Revolving Credit Facility shall be paid to the Appropriate Lenders in accordance with their respective Applicable Dollar Tranche Percentages and (iii) each prepayment of a Revolving Credit Loan denominated in an Alternative Currency shall be paid to the Lenders holding an Alternative Currency Tranche Commitment with respect to such Alternative Currency in accordance with their Applicable Tranche Percentages.  Except as otherwise expressly provided herein and except with respect to principal of and interest on Loans denominated in an Alternative Currency, all payments by any Loan Party hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office in Dollars and in Same Day Funds not later than 2:00 p.m. on the date specified herein.  Except as

 

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otherwise expressly provided herein, all payments by any Loan Party hereunder with respect to principal of and interest on Loans denominated in an Alternative Currency shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office in such Alternative Currency and in Same Day Funds not later than the Applicable Time specified by the Administrative Agent on the dates specified herein.  Without limiting the generality of the foregoing, the Administrative Agent may require that any payments due under this Agreement be made in the United States.  If, for any reason, any Loan Party is prohibited by any Law from making any required payment hereunder in an Alternative Currency, such Loan Party shall make such payment in Dollars in the Dollar Equivalent of the Alternative Currency payment amount.  The Administrative Agent will promptly distribute to each Lender such Lender’s applicable share of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent (i) after 2:00 p.m. in the case of payments in Dollars, or (ii) after the Applicable Time specified by the Administrative Agent in the case of payments in an Alternative Currency, shall in each case 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 any Loan Party 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)        (i)  Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Eurocurrency Rate Committed Loans (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00 noon on the date of such Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.02 (or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with and at the time required by Section 2.02) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in Same Day Funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the applicable Overnight Rate, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing as of the date of such Borrowing.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 

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(ii)        Payments by Borrower; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuer 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 Appropriate Lenders or the L/C Issuer, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Appropriate Lenders or the L/C Issuer, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the L/C Issuer, in Same Day 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, 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 to the Borrower 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.

 

(d)       Obligations of Lenders Several.  The obligations of the Lenders hereunder to make Term Loans and Revolving Credit Loans, to fund participations in Letters of Credit and Swing Line 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.

 

(f)        Insufficient Funds.  If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings, interest and fees then due hereunder, such funds shall be applied (i) first, toward payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due such parties, and (ii) second, toward payment of

 

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principal and L/C Borrowings then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and L/C Borrowings then due such parties.

 

2.14     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 in respect of any of the Facilities due and payable to such Lender under the Loan Documents at such time in excess of its ratable share (according to the proportion of (i) Total Outstandings then due and payable to such Lender (with the aggregate amount of such Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “owing” to such Lender for purposes hereof) to (ii) Total Outstandings then due and payable to all Lenders) of payments on account of the Obligations due and payable to all Lenders under the Loan Documents at such time or (b) Obligations in respect of any of the Facilities owing (but not due and payable) to such Lender under the Loan Documents at such time in excess of its ratable share (according to the proportion of (i) Total Outstandings owing (but not due and payable) to such Lender at such time (with the aggregate amount of such Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “owing” to such Lender for purposes hereof) to (ii) Total Outstandings owing (but not due and payable) at such time) of payments obtained by all of the Lenders at such time on account of the Obligations owing (but not due and payable) to all Lenders under the Loan Documents at such time, then the Lender receiving such greater proportion shall (x) notify the Administrative Agent of such fact, and (y) purchase (for cash at face value) participations in the Loans and subparticipations in L/C Obligations and Swing Line 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 or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations 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 (including the application of funds arising from the existence of a Defaulting Lender), (y) the application of Cash Collateral provided for in Section 2.17, or (z) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or subparticipations in L/C Obligations or Swing Line Loans to any assignee or participant, other than an assignment to the Company or any Affiliate thereof (as to which the provisions of this Section shall apply).

 

Revolving Credit Loans denominated in Alternative Currencies will automatically, at any time that the Administrative Agent determines it necessary or desirable to calculate the pro rata share of the Lenders under this Section 2.14 or Section 8.03, be converted on a notional basis into the Dollar Equivalent thereof solely for the purposes of making any allocations required under this Section 2.14 or Section 8.03.

 

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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 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.

 

2.15     Extensions of Maturity Dates.  (a)  Notification of Extension.  The Company may elect to extend the Maturity Date (i) with respect to the Revolving Credit Facility, for an additional twelve (12) months from the Initial Maturity Date for the Revolving Credit Facility or (ii) with respect to the Term Facility, (x) for an additional twelve (12) months from the Initial Maturity Date for the Term Facility (such new Maturity Date, the “Interim Maturity Date”) and (y) an additional twelve (12) months from the Interim Maturity Date, in each case under clauses (i) and (ii), by written notice to the Administrative Agent (each such notice, an “Extension Notice”) not earlier than 90 days and not later than 30 days prior to the relevant Initial Maturity Date or the Interim Maturity Date, as applicable.  The Administrative Agent shall distribute any such Extension Notice promptly to the Appropriate Lenders following its receipt thereof.

 

(b)        Conditions Precedent to Effectiveness of Maturity Date Extensions.  As conditions precedent to the effectiveness of any such extension, on or prior to the relevant Initial Maturity Date or the Interim Maturity Date, as applicable, each of the following requirements shall be satisfied:

 

(i)         The Administrative Agent shall have received an Extension Notice within the period required under clause (a) above;

 

(ii)        On the date of such Extension Notice and both immediately before and immediately after giving effect to such extension of the Maturity Date, no Default shall have occurred and be continuing;

 

(iii)       The Borrower shall have paid to the Administrative Agent, for the pro rata benefit of the Appropriate Lenders based on their respective Applicable Percentages as of such date, an extension fee in an amount equal to (x) in connection with an extension of the Maturity Date with respect to the Revolving Credit Facility, 0.15% of the aggregate Revolving Credit Commitments as in effect on the Initial Maturity Date with respect to the Revolving Credit Facility and (y) in connection with an extension of the Maturity Date with respect to the Term Facility, 0.10% of the Term Facility as in effect on the Initial Maturity Date or the Interim Maturity Date, as applicable, it being agreed, in each case, that such Extension Fee shall be fully earned when paid and shall not be refundable for any reason;

 

(iv)       The Administrative Agent shall have received a certificate of each Loan Party dated as of the relevant Initial Maturity Date or the Interim Maturity Date, as applicable, signed by a Responsible Officer of such Loan Party (i) (x) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such extension or (y) certifying that, as of the Initial Maturity Date, the resolutions delivered to the Administrative Agent and the Lenders on the Closing Date (which resolutions include approval for an extension of the Maturity Date, with respect to the Revolving

 

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Credit Facility, for an additional twelve (12) months from the Initial Maturity Date with respect to the Revolving Credit Facility, and, with respect to the Term Facility, for an additional 24 months from the Initial Maturity Date with respect to the Term Facility) are and remain in full force and effect and have not been modified, rescinded or superseded since the date of adoption and (ii) certifying that, before and after giving effect to such extension, (A) 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 relevant Initial Maturity Date or the Interim Maturity Date, as applicable, except (x) to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, (y) any representation or warranty that is already by its terms qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct in all respects as of such date after giving effect to such qualification and (z) for purposes of this Section 2.15, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01, and (B) no Default exists; and

 

(v)        Each of the Loan Parties shall have delivered to the Administrative Agent such reaffirmations of its respective obligations under the Loan Documents (after giving effect to the extension), and acknowledgments and certifications that they have no claims, offsets or defenses with respect to the payment or performance of any of the Obligations, including, without limitation, reaffirmations of the Guaranty.

 

(c)        Conflicting Provisions.  This Section shall supersede any provision in Section 11.01 to the contrary.

 

2.16     Increase in Commitments.  (a)  Request for Increase.  Provided there exists no Default, upon written notice to the Administrative Agent, the Borrower, may from time to time, elect to increase the Aggregate Commitments to an amount not exceeding $1,750,000,000 by increasing the Revolving Credit Facility and/or increasing the Term Facility or, if the Term Facility has been terminated or is otherwise no longer outstanding, with a new term facility on substantially the same terms as the Term Facility (and after the Increase Effective Date with respect thereto all references to the “Term Facility” herein and in any other Loan Documents shall mean such new term facility (the “New Term Facility”)); provided that any such request for an increase shall be in a minimum amount of $25,000,000 or a whole multiple of $5,000,000 in excess thereof, or such other amount agreed to by the Borrower and the Administrative Agent.  In such written notice, the Borrower shall specify the Facility that it proposes to increase and the identity of each Appropriate Lender and each Eligible Assignee that it proposes to approach to provide all or a portion of such increase (subject in each case to any requisite consents required under Section 11.06); provided, however, that (i) any existing Appropriate Lender approached to provide all or a portion of such increase may elect or decline, in its sole discretion, to provide all or a portion of such increase in the applicable Facility offered to it (and any Lender that has failed to respond to any such request shall be deemed to have declined to increase its Revolving Credit Commitment or Term Commitment, as applicable) and (ii) any Eligible Assignee providing any portion of such increase in the applicable Facility that is not an existing Lender shall become a Lender pursuant to a joinder agreement in form and substance reasonably satisfactory to the Administrative Agent and its counsel (a “New Lender Joinder Agreement”).

 

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(b)        Effective Date and Allocations.  If either of the Facilities is increased or a new term facility is established in accordance with this Section, the Administrative Agent and the Borrower shall determine the effective date (each an “Increase Effective Date”) and the final allocation of such increase among the Appropriate Lenders.

 

(c)        Conditions to Effectiveness of Increase.  As conditions precedent to each such increase, on or prior to the applicable Increase Effective Date, (i) the Administrative Agent shall have received a certificate of each Loan Party dated as of such Increase Effective Date signed by a Responsible Officer of such Loan Party (x) (1) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase or (2) certifying that, as of such Increase Effective Date, the resolutions delivered to the Administrative Agent and the Lenders on the Closing Date (which resolutions include approval to increase the Aggregate Commitments to an amount at least equal to $1,750,000,000) are and remain in full force and effect and have not been modified, rescinded or superseded since the date of adoption, and (y) in the case of the Borrower, certifying that, before and after giving effect to such increase, (A) 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 such Increase Effective Date, except to the extent that (1) such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, (2) any representation or warranty that is already by its terms qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct in all respects as of such date after giving effect to such qualification and (3) for purposes of this Section 2.16, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01, and (B) no Default exists, (ii) the Administrative Agent shall have received (x) a New Lender Joinder Agreement duly executed by the Borrower and each Eligible Assignee that is becoming a Lender in connection with such increase, which New Lender Joinder Agreement shall be acknowledged and consented to in writing by the Administrative Agent and, if such Eligible Assignee is becoming a Revolving Credit Lender, by the Swing Line Lender and the L/C Issuer and (y) written confirmation from each existing Lender, if any, participating in such increase of the amount by which its Commitment will be increased, which confirmation, if from a Revolving Credit Lender, shall be acknowledged and consented to in writing by the Swing Line Lender and the L/C Issuer and (iii) the Borrower shall have paid to the Arrangers the fee required to be paid pursuant to the Fee Letter in connection therewith.

 

(d)       Settlement Procedures.  On each Increase Effective Date, promptly following fulfillment of the conditions set forth in clause (c) of this Section 2.16, the Administrative Agent shall notify the Appropriate Lenders of the occurrence of the increase of the applicable Facility effected on such Increase Effective Date and the amount of the applicable Commitments and Applicable Percentage of each Appropriate Lender as a result thereof.  In the event that the increase in the applicable Facility results in any change to the Applicable Percentage of any Appropriate Lender, then on the Increase Effective Date, as applicable, (i) the participation interests of the Revolving Credit Lenders in any outstanding Letters of Credit and Swing Line Loans shall be automatically reallocated among the Revolving Credit Lenders in accordance with their respective Applicable Dollar Tranche Percentages after giving effect to such increase, (ii) any new Lender, and any existing Lender whose Commitment has increased, shall pay to the Administrative Agent such amounts as are necessary to fund its new or increased

 

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share of all Revolving Credit Loans or Term Loans, as applicable, (iii) the Administrative Agent will use the proceeds thereof to pay to all existing Lenders whose Applicable Percentage with respect to any Facility is decreasing such amounts as are necessary so that each Lender’s share of all Revolving Credit Loans or Term Loans, as applicable, will be equal to its adjusted Applicable Percentage of such Facility, and (iv) if the Increase Effective Date occurs on a date other than the last day of an Interest Period applicable to any outstanding Loan that is a Eurocurrency Rate Loan, then the Borrower shall pay any amounts required pursuant to Section 3.05 on account of the payments made pursuant to clause (iii) of this sentence.

 

(e)        Conflicting Provisions.  This Section shall supersede any provisions in Section 2.14 or 11.01 to the contrary.

 

2.17     Cash Collateral.  (a)   Certain Credit Support Events.  Upon the request of the Administrative Agent or the L/C Issuer (i) if the L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Borrower shall, in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations.  At any time that there shall exist a Defaulting Lender, immediately upon the request of the Administrative Agent, the L/C Issuer or the Swing Line Lender, the Borrower shall deliver to the Administrative Agent Cash Collateral in an amount sufficient to cover all Fronting Exposure (after giving effect to Section 2.18(a)(iv) and any Cash Collateral provided by all Defaulting Lenders).  If at any time the Administrative Agent determines that any funds held as Cash Collateral are subject to any right or claim of any Person other than the Administrative Agent or that the total amount of such funds is less than the aggregate Outstanding Amount of all L/C Obligations, the Borrower will, forthwith upon demand by the Administrative Agent, pay to the Administrative Agent, as additional funds to be deposited as Cash Collateral, an amount equal to the excess of (x) such aggregate Outstanding Amount over (y) the total amount of funds, if any, then held as Cash Collateral that the Administrative Agent determines to be free and clear of any such right and claim.  Upon the drawing under any Letter of Credit for which funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under applicable Laws, to reimburse the L/C Issuer.

 

(b)        Grant of Security Interest.  All Cash Collateral (other than credit support not constituting funds subject to deposit) shall be maintained in blocked, interest bearing deposit accounts at Bank of America.  The Borrower shall pay on demand therefor from time to time all customary account opening, activity and other administrative fees and charges in connection with the maintenance and disbursement of Cash Collateral.  The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to (and subjects to the control of) the Administrative Agent, for the benefit of the Administrative Agent, the L/C Issuer and the Lenders (including the Swing Line Lender), and agrees to maintain, a first priority security interest in all such cash, such deposit accounts and all balances therein, and all other property so provided as collateral pursuant hereto, and in all proceeds of the foregoing, all as security for the obligations to which such Cash Collateral may be applied pursuant to Section 2.17(c).  If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure and other obligations secured thereby, the Borrower or the relevant Defaulting Lender will, promptly upon

 

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demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency.

 

(c)        Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under any of this Section 2.17 or Sections 2.05, 2.06, 2.07, 2.18 or 8.02 in respect of Letters of Credit or Swing Line Loans shall be held and applied to the satisfaction of the specific L/C Obligations, Swing Line Loans, obligations to fund participations therein (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

 

(d)       Release.  Cash Collateral (or the appropriate portion thereof) provided to reduce Fronting Exposure or to secure other obligations shall be released promptly following (i) the elimination of the applicable Fronting Exposure or other obligations giving rise thereto (including by the termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee following compliance with Section 10.06(b)(vi))) or (ii) the Administrative Agent’s good faith determination that there exists excess Cash Collateral; provided, however, (x) that Cash Collateral furnished by or on behalf of a Loan Party shall not be released during the continuance of a Default (and following application as provided in this Section 2.17 may be otherwise applied in accordance with Section 8.03), and (y) the Person providing Cash Collateral and the L/C Issuer or Swing Line Lender, as applicable, may agree that Cash Collateral shall not be released but instead held to support future anticipated Fronting Exposure or other obligations.

 

2.18     Defaulting Lenders.  (a)   Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

 

(i)         Waivers and Amendments.  That Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of “Required Lenders”, “Required Revolving Lenders”, “Required Term Lenders” and Section 11.01.

 

(ii)        Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of that Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise, and including any amounts made available to, or received by, the Administrative Agent from a Defaulting Lender pursuant to Section 11.08), shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by that Defaulting Lender to the L/C Issuer or Swing Line Lender hereunder; third, if so determined by the Administrative Agent or requested by the L/C Issuer or Swing Line Lender, to be held as Cash Collateral for future funding obligations of that Defaulting Lender of any participation in any Swing Line Loan or Letter of Credit; fourth, as the Borrower may request (so long as no Default exists), to the funding of any Revolving Credit Loan in respect of which that Defaulting Lender

 

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has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released pro rata in order to (x) satisfy potential future funding obligations of that Defaulting Lender to fund Revolving Credit Loans under this Agreement and (y) Cash Collateralize the L/C Issuer’s and Swing Line Lender’s future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued and Swing Line Loans made under this Agreement, in accordance with Section 2.17; sixth, to the payment of any amounts owing to the Lenders, the L/C Issuer or Swing Line Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the L/C Issuer or Swing Line Lender against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or L/C Borrowings in respect of which that Defaulting Lender has not fully funded its appropriate share and (y) such Loans or L/C Borrowings were made, or the related Letters of Credit were issued, at a time when the conditions set forth in Section 2.03 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C Obligations owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or L/C Obligations owed to, that Defaulting Lender until such time as all Loans and funded and unfunded participations in L/C Obligations and Swing Line Loans are held by the Lenders pro rata in accordance with the Commitments hereunder without giving effect to Section 2.18(a)(iv).  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.18(a)(ii) shall be deemed paid to and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

 

(iii)       Certain Fees.

 

(A)       No Defaulting Lender shall be entitled to receive any fee payable under Section 2.10(a) for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

 

(B)       Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Applicable Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section 2.17.

 

(C)       With respect to any fee payable under Section 2.10(a) or any Letter of Credit Fee not required to be paid to any Defaulting Lender pursuant to clause (A) or (B) above, the Company shall (x) pay to each Non-Defaulting Lender that

 

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portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in L/C Obligations or Swing Line Loans that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to the L/C Issuer and Swing Line Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such L/C Issuer’s or Swing Line Lender’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee.

 

(iv)       Reallocation of Applicable Dollar Tranche Percentages to Reduce Fronting Exposure.  All or any part of such Defaulting Lender’s participation in L/C Obligations and Swing Line Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Dollar Tranche Percentages (calculated without regard to such Defaulting Lender’s Commitment) but only to the extent that (x) the conditions set forth in Section 4.02 are satisfied at the time of such reallocation (and, unless the Company shall have otherwise notified the Administrative Agent at such time, the Company shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate Revolving Credit Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Commitment.  No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

 

(v)        Cash Collateral, Repayment of Swing Line Loans.  If the reallocation described in clause (a)(iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under applicable Law, (x) first, prepay Swing Line Loans in an amount equal to the Swing Line Lenders’ Fronting Exposure and (y) second, Cash Collateralize the L/C Issuers’ Fronting Exposure in accordance with the procedures set forth in Section 2.17.

 

(b)        Defaulting Lender Cure.  If the Company, the Administrative Agent, the Swing Line Lender and the L/C Issuer agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Revolving Credit Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans to be held on a pro rata basis by the Lenders in accordance with the provisions of this Agreement (without giving effect to Section 2.18(a)(iv)), whereupon that Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting

 

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Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

 

ARTICLE III
 TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01     Taxes.  (a)  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 Administrative 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.

 

(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.

 

(b)        Payment of Other Taxes by the Loan Parties.  Without limiting the provisions of subsection (a) above, 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.

 

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(c)        Tax Indemnifications.  (i) 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 or required to be withheld or deducted from a payment to 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 as to the amount of such payment or liability delivered to the Company by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest error.  Each of the Loan Parties shall, and does hereby, jointly and severally indemnify the Administrative Agent, and shall make payment in respect thereof within 10 days after demand therefor, for any amount which a Lender or the L/C Issuer for any reason fails to pay indefeasibly to the Administrative Agent as required pursuant to Section 3.01(c)(ii) below.

 

(ii)        Each Lender and the L/C Issuer 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 or the L/C Issuer (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 of the Loan Party to do so), (y) the Administrative Agent and the Loan Party, as applicable, against any Taxes attributable to such Lender’s failure to comply with the provisions of Section 11.06(d) relating to the maintenance of a Participant Register and (z) the Administrative Agent and the Loan Party, as applicable, against any Excluded Taxes attributable to such Lender or the L/C Issuer, in each case, 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 Administrative Agent shall be conclusive absent manifest error.  Each Lender and the L/C Issuer hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender or the L/C Issuer, as the case may be, under this Agreement or any other Loan Document against any amount due to the Administrative Agent under this clause (ii).

 

(d)       Evidence of Payments.  Upon request by the Company or the Administrative Agent, as the case may be, after any payment of Taxes by any Loan Party or by the Administrative Agent to a Governmental Authority as provided in this Section 3.01, the Company shall deliver to the Administrative Agent or the Administrative Agent shall deliver to the Company, as the case may be, the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of any return required by Laws to report such payment or other evidence of such payment reasonably satisfactory to the Company or the Administrative Agent, as the case may be.

 

(e)        Status of Lenders; Tax Documentation.   (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any

 

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Loan Document shall deliver to the Company and the Administrative Agent, at the time or times reasonably requested by the Company or the Administrative Agent, such properly completed and executed documentation prescribed by applicable law or the taxing authorities of a jurisdiction pursuant to such applicable law or reasonably requested by the Company or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Company or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Company or the Administrative Agent as will enable the Company or the Administrative Agent to determine whether or not such Lender 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 either (A) set forth in Section 3.01(e)(ii)(A), (ii)(B) and (ii)(D) below or (B) required by applicable law other than the Code or the taxing authorities of the jurisdiction pursuant to such applicable law to comply with the requirements for exemption or reduction of withholding tax in that jurisdiction) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(ii)        Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

 

(A)       any Lender that is a U.S. Person shall deliver to the Company and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax.

 

(B)       any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company 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 Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent), whichever of the following is applicable:

 

(I)        in the case of a Foreign Lender 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, executed originals of IRS Form W-8BEN  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 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)       executed originals of IRS Form W-8ECI,

 

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(III)     in the case of a Foreign Lender 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 I-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Company 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) executed originals of IRS Form W-8BEN; or

 

(IV)     to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit I-2 or Exhibit I-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit I-4 on behalf of each such direct and indirect partner;

 

(C)       any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company 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 Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company 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 Company or the Administrative Agent to determine the withholding or deduction required to be made; and

 

(D)       if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender 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 Lender shall deliver to the Company and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Company 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 Company or the Administrative Agent as may be necessary for the Company and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  

 

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Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

(iii)       Each Lender 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 Company and the Administrative Agent in writing of its legal inability to do so.

 

(f)        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 the L/C Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any refund of Taxes withheld or deducted from funds paid for the account of such Lender or the L/C Issuer, as the case may be.  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 such 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 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 each Loan Party, upon the request of the Recipient, agrees to repay the amount paid over to such Loan Party (plus any penalties (other than those stated to be imposed as a result of the gross negligence or willful misconduct of the Administrative Agent or such Lender), 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 such 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.

 

(g)        Payments made by Administrative Agent.  For the avoidance of doubt, any payments made by the Administrative Agent to any Lender shall be treated as payments made by the applicable Loan Party.

 

(h)        Lender treated as Partnership.  If any Lender is treated as partnership for purposes of an applicable Indemnified Tax or Other Tax, any withholding made by such Lender shall be treated as if such withholding had been made by the Borrower or the Administrative Agent.

 

(i)         L/C Issuer and Swing Line Lenders.  For purposes of this Section 3.01, the term “Lender” shall include the L/C Issuer and the Swing Line Lender

 

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(j)         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 or the L/C Issuer, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

 

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 applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to the Eurocurrency Rate (whether denominated in Dollars or an Alternative Currency), or to determine or charge interest rates based upon the Eurocurrency 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 or any Alternative Currency in the applicable 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 Eurocurrency Rate Loans in the affected currency or currencies or, in the case of Eurocurrency Rate Loans in Dollars, to convert Base Rate Loans to Eurocurrency 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 Eurocurrency 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 Eurocurrency 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 and such Loans are denominated in Dollars, convert all such Eurocurrency 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 Eurocurrency 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 Eurocurrency Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurocurrency Rate Loans and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurocurrency Rate, the Administrative Agent shall during the period of such suspension compute the Base Rate applicable to such Lender without reference to the Eurocurrency 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 Eurocurrency 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 Eurocurrency Rate Loan or a conversion to or continuation thereof (a) the Administrative Agent determines that (i) deposits (whether in Dollars or an Alternative Currency) are not being offered to banks in the applicable offshore interbank market for such currency for the applicable amount and Interest Period of such Eurocurrency Rate Loan, or (ii) adequate and reasonable means do not exist for determining the Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative Currency) or in connection with an existing or proposed Base Rate Loan (in each case with respect to clause (a) above, “Impacted Loans”), or (b) the Administrative Agent or the Affected 

 

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Lenders determine that for any reason the Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurocurrency Rate Loans in the affected currency or currencies shall be suspended (to the extent of the affected Eurocurrency Rate Loans or Interest Periods), and (y) in the event of a determination described in the preceding sentence with respect to the Eurocurrency Rate component of the Base Rate, the utilization of the Eurocurrency Rate component in determining the Base Rate shall be suspended, in each case until the Administrative Agent (upon the instruction of the Affected 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 Eurocurrency Rate Loans in the affected currency or currencies (to the extent of the affected Eurocurrency 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 (or Dollar Equivalent thereof) specified therein.

 

Notwithstanding the foregoing, if the Administrative Agent has made the determination described in clause (a) of the first sentence 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 Affected 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 Eurocurrency Rate Loans.  (a)  Increased Costs Generally.  If any Change in Law shall:

 

(i)         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) other than as set forth below) or the L/C Issuer;

 

(ii)        subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

 

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(iii)       impose on any Lender or the L/C Issuer or the London interbank market any other condition, cost or expense affecting this Agreement or Eurocurrency Rate Loans made by such Lender or any Letter of Credit or participation therein;

 

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 Eurocurrency Rate (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or the L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer, the Borrower will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered.

 

(b)        Capital Requirements.  If any Lender or the L/C Issuer determines that any Change in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such Lender’s or the L/C Issuer’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 or the L/C Issuer’s capital or on the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit or Swing Line Loans held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction suffered.

 

(c)        Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Company shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(d)       Delay in Requests.  Failure or delay on the part of any Lender or the L/C Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided that the Borrower shall not be required to compensate a Lender or the L/C Issuer 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 or the L/C Issuer, as the case may be, notifies the Company of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, 

 

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then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

 

(e)        Additional Reserve Requirements.  The Borrower shall pay to each Lender, (i) 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 Eurocurrency 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), and (ii) as long as such Lender shall be required to comply with any reserve ratio requirement or analogous requirement of any other central banking or financial regulatory authority imposed in respect of the maintenance of the Commitments or the funding of the Eurocurrency Rate Loans, such additional costs (expressed as a percentage per annum and rounded upwards, if necessary, to the nearest five decimal places) equal to the actual costs allocated to such Commitment or Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which in each case 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 or costs from such Lender.  If a Lender fails to give notice 10 days prior to the relevant Interest Payment Date, such additional interest or costs 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 into any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower;

 

(c)        any failure by the Borrower to make payment of any Loan or drawing under any Letter of Credit (or interest due thereon) denominated in an Alternative Currency on its scheduled due date or any payment thereof in a different currency;

 

(d)       any assignment of a Eurocurrency Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Company pursuant to Section 11.13; or

 

(e)        the failure to borrow any Competitive Loan after accepting the Competitive Bid to make such Loan.

 

including any loss of anticipated profits, any foreign exchange losses and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan, from fees payable to terminate the deposits from which such funds were obtained or from the 

 

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performance of any foreign exchange contract.  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 Eurocurrency Rate Loan made by it at the Eurocurrency Rate for such Loan by a matching deposit or other borrowing in the offshore interbank market for such currency for a comparable amount and for a comparable period, whether or not such Eurocurrency Rate Loan was in fact so funded.

 

A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender as specified in this Section and delivered to the Borrower shall be conclusive absent manifest error.

 

3.06     Mitigation Obligations; Replacement of Lenders.   (a)  Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.04, or the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender, the L/C Issuer, or any Governmental Authority for the account of any Lender or the L/C Issuer pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then, at the request of the Borrower, such Lender or the L/C Issuer 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 Lender or the L/C Issuer, 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 Lender or the L/C Issuer, as the case may be, to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or the L/C Issuer, as the case may be.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender or the L/C Issuer in connection with any such designation or assignment.

 

(b)        Replacement of Lenders.  If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 3.06(a), the Borrower may replace such Lender 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 obligations under any Loan Document, and resignation of the Administrative Agent.

 

ARTICLE IV
 CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

4.01     Conditions of Effectiveness.  The effectiveness of this Agreement is subject to satisfaction of the following conditions precedent.

 

(a)        The Administrative Agent’s receipt of the following, each of which shall be originals, e-mails (in a .pdf format) or telecopies (followed promptly by originals) unless 

 

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otherwise specified, each properly executed by a Responsible Officer or a duly authorized 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 satisfactory to the Administrative Agent and each of the Lenders:

 

(i)         an executed counterpart of this Agreement;

 

(ii)        a Revolving Credit Note and/or a Term Note, as applicable, in each case, duly executed by the Borrower in favor of each Lender requesting a Note;

 

(iii)       such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party;

 

(iv)       such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and each Loan Party is validly existing, in good standing 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;

 

(v)        favorable opinions of DLA Piper LLP (US) and Reed Smith LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to such matters concerning the Loan Parties and the Loan Documents as the Administrative Agent may reasonably request;

 

(vi)       a certificate of a Responsible Officer of the Company either (A) attaching copies of all consents, licenses and approvals required in connection with the execution, delivery and performance by each 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;

 

(vii)      a certificate signed by a Responsible Officer of the Company certifying (A) that the conditions specified in this Section 4.01 and Sections 4.02(a) and (b) have been satisfied (other than those conditions contingent upon the satisfaction of the Administrative Agent and/or the Lenders with respect to certain items received by them under this Section 4.01), (B) that no action, suit, investigation or proceeding is pending or, to the knowledge of any Loan Party, threatened in any court or before any arbitrator or Governmental Authority that could reasonably be expected to be adversely determined and, if adversely determined, could reasonably be expected to have a Material Adverse Effect, and (C) a calculation of the Leverage Ratio as of the last day of the fiscal quarter of the Company most recently ended prior to the Closing Date;

 

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(viii)     a Solvency Certificate from the Company certifying that each Loan Party is Solvent after giving effect to the Credit Extensions to occur on the Term Loan Closing Date;

 

(ix)       a duly completed Compliance Certificate as of the last day of the fiscal quarter of the Company ended immediately prior to the Closing Date for which financial statements were required to be delivered to the Administrative Agent under the Original Credit Agreement, signed by a Responsible Officer of the Company and evidencing that both immediately before and after giving effect to the consummation of the Acquisition and the other transactions contemplated to occur on the Closing Date (including, without limitation, all Credit Extensions to occur on the Closing Date) the Loan Parties shall be in compliance, on a pro forma basis, with the provisions of Section 7.11;

 

(x)        evidence that each of the Original Term Loan Credit Agreement and the CPA®:16 Credit Agreement has been or concurrently with the Closing Date is being terminated and all Liens, if any, securing obligations under each of the Original Term Loan Credit Agreement and the CPA®:16 Credit Agreement have been or concurrently with the Closing Date are being released;

 

(xi)       evidence satisfactory to the Administrative Agent and the Lenders that the Borrowings hereunder in connection with the Acquisition and the application of the proceeds thereof do not violate any of the regulations of the FRB (including, without limitation, Regulation U of the FRB); and

 

(xii)      such other assurances, certificates, documents, consents or opinions as the Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required Lender reasonably may require.

 

(b)        (i) All fees required to be paid to the Administrative Agent and the Arrangers on or before the Closing Date shall have been paid and (ii) all fees required to be paid to the Lenders on or before the Closing Date shall have been paid.

 

(c)        Unless waived by the Administrative Agent, all reasonable fees, charges and disbursements of counsel to the Administrative Agent shall have been paid (directly to such counsel if requested by the Administrative Agent) to the extent invoiced at least one Business Day prior to the Closing Date, plus such reasonable 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).

 

(d)       The Acquisition shall have been consummated in accordance with the terms of the Acquisition Documents, without any material waiver or amendment not consented to by the Lenders of any term, provision or condition set forth therein, and in compliance with all applicable requirements of Law.

 

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(e)        Confirmation that the Company has delivered a written notice to each Departing Lender terminating as of the Closing Date all commitments of the Departing Lenders under the Original Credit Agreement, and all amounts owing (whether or not due) under the Original Credit Agreement and related documents through and including the Closing Date to each Departing Lender shall have been paid in full.

 

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 written notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

 

4.02     Conditions to All Credit Extensions.  The obligation of each Lender to honor any Request for a Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type, or a continuation of Eurocurrency Rate Loans) is subject to the following conditions precedent:

 

(a)        The representations and warranties of each 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 in all material respects on and as of the date of the proposed Credit Extension, except (i) 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, (ii) any representation or warranty that is already by its terms qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct in all respects as of such date after giving effect to such qualification and (iii) for purposes of this Section 4.02, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01;

 

(b)        No Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds thereof;

 

(c)        The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall have received a Request for Credit Extension in accordance with the requirements hereof;

 

(d)       If such Credit Extension is a Competitive Borrowing, on or before the date of such Competitive Borrowing, but prior to such Competitive Borrowing, the Administrative Agent shall have received, if requested by the applicable Competitive Loan Lender, a Competitive Loan Note payable to the order of such Competitive Loan Lender for each of the one or more Competitive Loans to be made by such Competitive Loan Lender as part of such Competitive Borrowing, in a principal amount equal to the principal amount of the Competitive Loan to be evidenced thereby and otherwise on such terms as were agreed to for such Competitive Loan in accordance with Section 2.03;

 

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(e)        If such Credit Extension is a Revolving Credit Borrowing or an L/C Credit Extension, after giving effect to the proposed Credit Extension, the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility at such time; and

 

(f)        In the case of a Revolving Credit Borrowing or Letter of Credit to be denominated in an Alternative Currency, there shall not have occurred any change in national or international financial, political or economic conditions or currency exchange rates or exchange controls which in the reasonable opinion of the Administrative Agent, the Required Revolving Lenders (in the case of any Revolving Loans to be denominated in an Alternative Currency) or the L/C Issuer (in the case of any Letter of Credit to be denominated in an Alternative Currency) would make it impracticable for such Credit Extension to be denominated in the relevant Alternative Currency.

 

Each Request for Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type or a continuation of Eurocurrency Rate Loans) submitted by the Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 4.02(a), (b) and (e) have been satisfied on and as of the date of the applicable Credit Extension.

 

 

ARTICLE V
 REPRESENTATIONS AND WARRANTIES

 

The Company and each Guarantor each 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, except, solely in the case of a Subsidiary of the Company that is not a Loan Party, to the extent that the failure of such Subsidiary to be duly organized or formed and in good standing could not reasonably be expected to have a Material Adverse Effect, (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 consummate the transactions contemplated by the Loan Documents, 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, and the consummation by each Loan Party of the transactions contemplated by, each Loan Document and each Acquisition Document to which such Person is a 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 

 

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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 Contractual Obligation 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 Law.

 

5.03     Governmental Authorization; Other Consents.  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person 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 or Acquisition Documents, or for the consummation of the transactions contemplated by the Loan Documents or the Acquisition Documents  or (b) the exercise by the Administrative Agent or any Lender of its rights under the Loan Documents.

 

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 each Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

5.05     Financial Statements; No Material Adverse Effect.  (a)  The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (ii) fairly present the financial condition of the Company 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.

 

(b)        The unaudited consolidated balance sheet of the Company and its Subsidiaries dated September 30, 2013, 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 the financial condition of the Company 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.

 

(c)        Since December 31, 2012, 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.

 

5.06     Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of any Loan Party, threatened, at law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or any of its Subsidiaries or against any 

 

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of their respective properties or revenues that (a) could reasonably be expected to adversely affect this Agreement, any other Loan Document or any of the transactions contemplated hereby or thereby, or (b) either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.

 

5.07     No Default.  Neither any Loan Party nor any Subsidiary thereof is in default under or with respect 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.  Each Loan Party and each of its Subsidiaries has good record and marketable title to, or valid leasehold interests in, all its Property material to 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.  The property of each Loan Party and its Subsidiaries is subject to no Liens, other than Liens permitted by Section 7.01.

 

5.09     Environmental Compliance.  Except with respect to any matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither a Loan Party nor any of its Subsidiaries (i) has failed to comply with any applicable Environmental Law or to obtain, maintain or comply with any Environmental Permit required under any applicable Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.

 

5.10     Taxes.  Each Loan Party, and each of its Subsidiaries, has timely filed all federal, state and other material tax returns and reports required to be filed, and has timely paid all federal, state 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 in each case, with respect to those Taxes or tax returns (i) which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP, or (ii) where the failure to timely file or timely pay could not reasonably be expected to, individually or in the aggregate, result in a Material Adverse Effect.  There is no proposed tax assessment against any Loan Party or any Subsidiary thereof that, if made, could reasonably be expected to have a Material Adverse Effect.  Neither any Loan Party nor any Subsidiary thereof is party to any tax sharing agreement.  Except as could not be reasonably expected to, individually or in the aggregate, result in a Material Adverse Effect, neither any Loan Party nor any of its Subsidiaries has ever “participated” in a “listed transaction” within the meaning of Treasury Regulation Section 1.6011-4.

 

5.11     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 Plan is 

 

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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 Loan Parties, 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 Loan Parties, 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)        Except as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) no ERISA Event has occurred, and neither the Company 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; (ii) the Company and each ERISA Affiliate has met all applicable requirements under the Pension Funding Rules in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding rules has been applied for or obtained; (iii) 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 Company 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; (iv) neither the Company 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; (v) neither the Company nor any ERISA Affiliate has engaged in a transaction that is subject to Section 4069 or Section 4212(c) of ERISA; and (vi) 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.

 

(d)       Neither the Company 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 other than those listed on Schedule 5.11(d) hereto.

 

5.12     Subsidiaries; Equity Interests; Loan Parties.  As of the Closing Date (based on the Compliance Certificate delivered pursuant to Section 4.01(a)(ix)) and as of the date of each delivery of a Compliance Certificate concurrently with the financial statements referred to in Section 6.01(a), Part (a) of Schedule 5.12 is a complete and accurate list of the Company and its Subsidiaries, showing the correct name of each Subsidiary and whether such Subsidiary is a Guarantor.  The outstanding equity interests of the Company and all of the Subsidiaries are validly issued, fully paid and non-assessable and are owned by such entity free and clear of all Liens, except for Liens permitted by this Agreement.  As of the Closing Date, no Loan Party has any equity investments in any other corporation or entity other than those specifically disclosed in Part (b) of Schedule 5.12.  Set forth on Part (c) of Schedule 5.12 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 or organization, the address of its chief executive office and principal place of 

 

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business, the type of organization it is and its U.S. taxpayer identification number.  The copy of the charter of each Loan Party and each amendment thereto provided pursuant to Section 4.01(a)(iv) is a true and correct copy of each such document, each of which is valid and in full force and effect.

 

5.13     Margin Regulations; Investment Company Act.  (a)  The Company is not engaged, nor will the Company 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.

 

(b)        None of the Company, any Person Controlling the Company, or any Subsidiary of the Company is or is required to be registered as an “investment company” under the Investment Company Act of 1940.

 

5.14     Disclosure.  The Company 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, as of the Closing Date, and all other matters known to it as of the Closing Date, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  None of the  SEC Reports  and none of the reports, financial statements, certificates or other information furnished (whether in writing or orally) by or on behalf of the Company or any other 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 as at such time, 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 Company represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

 

5.15     Compliance with Laws.  Each Loan Party and each Subsidiary thereof is 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.

 

5.16     Intellectual Property; Licenses, Etc.  Each Loan Party, and each of its Subsidiaries, owns, or possesses the right to use, all trademarks, trade names, copyrights, patents and other intellectual property material to its business, and the use thereof by the Loan Parties and their Subsidiaries does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

5.17     Solvency.  The Loan Parties are, together with their Subsidiaries on a consolidated basis, Solvent.

 

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5.18     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 that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

5.19     SEC Reports.  As of the Closing Date, the Company has filed all forms, reports, statements (including proxy statements) and other documents (such filings by the Company are collectively referred to as the “SEC Reports”), required to be filed by it with the Securities and Exchange Commission.  The SEC Reports, including all SEC Reports filed after the Closing Date or on or prior to the date of this Agreement, (i) were or will be prepared in all material respects in accordance with the requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, as the case may be, and the rules and regulations of the Securities and Exchange Commission thereunder applicable to such SEC Reports at the time of filing thereof and (ii) did not at the time they were filed, or will not at the time they are filed, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

5.20     Anti-Money Laundering; Sanctions.     (a)  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 (i) has violated or is in violation of any applicable anti-money laundering law or (ii) has engaged or engages in any transaction, investment, undertaking or activity that conceals the identity, source or destination of the proceeds from any category of offenses designated in any applicable law, regulation or other binding measure implementing the “Forty Recommendations” and “Nine Special Recommendations” published by the Organisation for Economic Cooperation and Development’s Financial Action Task Force on Money Laundering.

 

(b)        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.

 

ARTICLE VI
 AFFIRMATIVE COVENANTS

 

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the Loan Parties shall, and shall  cause each of their respective Subsidiaries to (or, solely in the case of the covenants set forth in Sections 6.01, 6.02, 6.03 and 6.15 the Company shall):

 

6.01     Financial Statements.    Deliver to the Administrative Agent and each Lender, in form and detail satisfactory to the Administrative Agent and the Required Lenders:

 

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(a)        as soon as available, but in any event within 90 days after the end of each fiscal year of the Company (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 Company and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, changes in shareholders’ equity, and cash flows for such fiscal year on Form 10-K, setting forth in each case in comparative form the figures as of the end of and for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of PricewaterhouseCoopers LLP or other “Big 4” accounting firm, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit, and which report shall state that such financial statements fairly present the consolidated financial condition of the Company and its Subsidiaries as at the dates indicated and the results of their operations and cash flow for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except for changes with which PricewaterhouseCoopers LLP or any such other independent certified public accountants, if applicable, shall concur and which shall have been disclosed in the notes to such financial statements) (which report shall be subject to the confidentiality limitations set forth herein); and

 

(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 Company (or, if earlier, five 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 Company and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of income or operations for such fiscal quarter and for the portion of the Company’s fiscal year then ended, and the related consolidated statements of changes in shareholders’ equity and cash flows for the portion of the Company’s fiscal year then ended on Form 10-Q, in each case setting forth in comparative form, as applicable, the figures as of the end of and for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail, certified by the chief executive officer, chief financial officer, treasurer or controller of the Company as fairly presenting the consolidated financial condition, results of operations, shareholders’ equity and cash flows of the Company and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes.

 

As to any information contained in materials furnished pursuant to Section 6.02(b), the Company shall not be separately required to furnish such information under Section 6.01(a) or (b) above, but the foregoing shall not be in derogation of the obligation of the Company to furnish the information and materials described in Sections 6.01(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 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 duly completed Compliance Certificate signed by a Responsible Officer of the Company (which delivery may, unless the Administrative Agent, or a Lender requests executed originals, be by electronic communication including fax or email and shall be 

 

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deemed to be an original authentic counterpart thereof for all purposes) representing and certifying (1) that the officer signatory thereto has reviewed the terms of this Agreement, and has made, or caused to be made under his/her supervision, a review in reasonable detail of the transactions contemplated hereby and the consolidated financial condition of the Company and its Subsidiaries, during the accounting period covered by such reports, that such review has not disclosed the existence during or at the end of such accounting period, and that such officer does not have knowledge of the existence as at the date of such Officer’s Certificate, of any condition or event which constitutes a Default, or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Company or any of its Subsidiaries has taken, is taking and proposes to take with respect thereto, (2) calculations evidencing whether there has been compliance with each of the financial covenants set forth in Section 7.11 and (3) an update of Part (a) of Schedule 5.12, if applicable;

 

(b)        promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders or other equity holders of the Company, and copies of all annual, regular, periodic and special reports and registration statements which any Loan Party may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, or with any national securities exchange, and in any case not otherwise required to be delivered to the Administrative Agent pursuant hereto;

 

(c)        promptly after the furnishing thereof, copies of any statement or report furnished to any holder of debt securities of any Loan Party pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished pursuant to Section 6.01 or any other clause of this Section 6.02;

 

(d)       promptly, and in any event within five Business Days after receipt thereof by any Loan Party 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 or possible investigation or other inquiry by such agency regarding financial or other operational results of any Loan Party;

 

(e)        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 reasonably be expected to have a Material Adverse Effect; and

 

(f)        promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of the Loan Parties or any of their Subsidiaries, or compliance with the terms of this Agreement, as the Administrative Agent may reasonably request including without limitation, tax returns, title reports, insurance certificates and results of environmental site assessments.

 

Documents required to be delivered pursuant to Section 6.01(a) or (b) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Company posts such documents, or provides a link thereto on the Company’s website 

 

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on the Internet at the website address listed on Schedule 11.02; or (ii) on which such documents are posted on the Company’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that the Company shall deliver paper copies of such documents to the Administrative Agent or any Lender upon its request to the Company to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Company with any such request by a Lender for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

 

Each of the Loan Parties hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will make available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of any Loan Party hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on DebtDomain, 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 Company 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.  Each of the Loan Parties hereby agrees that it will identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower Materials 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 Loan Parties shall be deemed to have authorized the Administrative Agent, the Arrangers, the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material non-public information (although it may be sensitive and proprietary) with respect to any Loan Party 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 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 and the Arrangers 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.  Notify the Administrative Agent and each Lender promptly upon a Responsible Officer having actual knowledge thereof:

 

(a)        of the occurrence of any Default;

 

(b)        any agreements, instruments which, and any corporate or other restrictions to which, it or any of its Subsidiaries enters into or becomes subject to after the Closing Date, and all other matters known to it, that, individually or in the aggregate, have or could reasonably be expected to result in a Material Adverse Effect, including any of the following if it could reasonably be expected to result in a Material Adverse Effect: (i) any breach or non-performance of, or any default under, a Contractual Obligation of any Loan Party or any Subsidiary thereof; 

 

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(ii) any dispute, litigation, investigation, proceeding or suspension between any Loan Party or any Subsidiary thereof and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting any Loan Party or any Subsidiary thereof, including pursuant to any applicable Environmental Laws;

 

(c)        of the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Loan Parties and their Subsidiaries in an aggregate amount exceeding $5,000,000;

 

(d)       of any material change in accounting policies or financial reporting practices by any Loan Party or any Subsidiary thereof, including any determination by the Company referred to in Section 2.11(b); and

 

(e)        of any announcement by Moody’s, S&P or Fitch of any change in a Debt Rating; provided, that the provisions of this clause (e) shall not apply until such time, if any, as the Company obtains an Investment Grade Rating.

 

Each notice pursuant to this Section 6.03 (other than Section 6.03(e)) shall be accompanied by a statement of a Responsible Officer of the Company setting forth details of the occurrence referred to therein and stating what action the Company and the other Loan Parties have taken and/or propose 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.  (a) Pay and discharge as the same shall become due and payable, (i) all federal, state and other material 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 such Loan Party or such Subsidiary, (ii) all lawful material claims which, if unpaid, would by law become a Lien (other than a Lien permitted under Section 7.01) upon its property; and (iii) all Indebtedness, as and when due and payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness, except to the extent that the failure to pay such Indebtedness would not constitute an Event of Default under Section 8.01(e); and (b) timely file all tax returns required to be filed, except where the failure to file such tax returns would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

 

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 (i) in a transaction permitted by Section 7.04 or 7.05 or (ii) solely in the case of a Subsidiary of the Company that is not a Loan Party, the failure to do so could not reasonably be expected to have a Material Adverse Effect; (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 

 

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names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect.

 

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; (b) make all necessary repairs thereto and renewals and replacements thereof; and (c) use the standard of care typical in the industry for similar facilities in similar locations in the operation and maintenance of its facilities, except in the case of clauses (a), (b) and (c) where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

6.07     Maintenance of Insurance.  Maintain or cause each of its Subsidiaries to, maintain, or cause tenants of Projects to maintain, with financially sound and reputable insurance companies not Affiliates of the Company, insurance with respect to its properties and its business against general liability, property casualty and such casualties and contingencies as shall be commercially reasonable and in accordance with the customary and general practices of businesses having similar operations and real estate portfolios in similar geographic areas and in amounts, containing such terms, in such forms and for such periods as may be reasonable and prudent for such businesses, including without limitation, insurance policies and programs sufficient to cover (a) the replacement value of the improvements at Projects owned by the Loan Parties and their Subsidiaries (less commercially reasonable deductible amounts) and (b) liability risks associated with such ownership (less commercially reasonable deductible amounts).

 

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.  (a) Maintain proper books of record and account, in which full, true and correct entries in all material respects and in any event in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving its assets and business; and (b) maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction over it.

 

6.10     Inspection Rights.  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 and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Company, provided that except as provided in the following proviso the Borrower shall not be obligated to reimburse the Administrative Agent or any Lender (or any representative thereof) for more than one visit, inspection or examination conducted during any fiscal year of the Company; 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 

 

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the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice.

 

6.11     Use of Proceeds.  Use the proceeds of the Credit Extensions for working capital needs of the Company and its Subsidiaries, to refinance existing Indebtedness of the Company and its Subsidiaries, for acquisitions and for other general corporate purposes not in contravention of any Law or of any Loan Document, including the Acquisition and transaction costs and expenses incurred in connection therewith.

 

6.12     Additional Guarantors.  If, after the Closing Date, (a) a Domestic Subsidiary that is not a Guarantor owns an Unencumbered Eligible Project, then the Company shall cause such Domestic Subsidiary if it is a Wholly-Owned Subsidiary (and otherwise shall cause the most immediate parents of such Domestic Subsidiary that are Domestic Wholly-Owned Subsidiaries of the Company (if any)) to become a Guarantor under this Agreement and to execute and deliver a joinder agreement in substantially the form of Exhibit G, or (b) a Domestic Wholly-Owned Subsidiary that is not a Guarantor (i) receives fees under a Management Contract or (ii) is a Wholly-Owned REIT Subsidiary, then the Company shall cause such Domestic Wholly-Owned Subsidiary to become a Guarantor under this Agreement and to execute and deliver a joinder agreement in substantially the form of Exhibit G, and, in each case under clauses (a) and (b), the Company shall (x) as and to the extent requested by the Administrative Agent, deliver to the Administrative Agent the items referenced in Section 4.01(a)(iii), (iv) and (vi) with respect to each such Domestic Wholly-Owned Subsidiary, (y) as and to the extent requested by the Administrative Agent, deliver to the Administrative Agent a favorable opinion of counsel, which counsel shall be reasonably acceptable to the Administrative Agent, addressed to the Administrative Agent and each Lender, as to such matters concerning each such Domestic Wholly-Owned Subsidiary and the Loan Documents as the Administrative Agent may reasonably request and (z) provide the Administrative Agent with the U.S. taxpayer identification number for each such Domestic Wholly-Owned Subsidiary.

 

6.13     Compliance with Environmental Laws.  Comply in all material respects, with all applicable Environmental Laws and Environmental Permits held by it; obtain and renew or require the applicable tenant to obtain and renew, all Environmental Permits necessary for its operations; and conduct or require the applicable tenant to conduct any investigation, study, sampling and testing, and undertake any cleanup, response or other corrective action required under and in material compliance with Environmental Law necessary to remediate all Hazardous Materials at, on, under or emanating from any of the properties owned, leased or operated by it, in accordance with the requirements of all applicable Environmental Laws, except, in each case, where the failure to do so could not reasonably be expected to result in a Material Adverse Effect; provided, however, that the Loan Parties and their Subsidiaries shall not 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 and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances in accordance with GAAP.

 

6.14     Distributions in the Ordinary Course.  Continue to follow its ordinary course of business practice of causing all of its Subsidiaries to make transfers of net cash and cash equivalents upstream to the Company and not make net transfers of cash and cash equivalents

 

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downstream from the Company to its Subsidiaries, except in the ordinary course of business consistent with past practice and otherwise subject to the terms of this Agreement.

 

6.15     Company Status.   (a) At all times (i) remain publicly traded with securities listed on the New York Stock Exchange or another national stock exchange located in the United States, (ii) except in the case of W. P. Carey International LLC or as the result of a disposition otherwise permitted under this Agreement, retain Control of all Guarantors, and (iii) continue to be organized and operated in a manner that will allow it to qualify for REIT Status.

 

6.16     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, and (ii) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Administrative Agent for the benefit of the Lenders, the rights granted or now or hereafter intended to be granted to the Administrative Agent for the benefit of the Lenders 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.

 

6.17     Compliance with Terms of Leaseholds.  Make all payments and otherwise perform all obligations in respect of all material leases of real property to which the Company or any of its Subsidiaries is a party, keep such leases in full force and effect and not allow such leases to lapse or be terminated or any rights to renew such leases to be forfeited or cancelled, except, in any case, where (a) the Company or such Subsidiary determines in its reasonable business judgment that it will allow such lease to lapse or be terminated, or (b) the failure to do so, either individually or in the aggregate, could not be reasonably likely to have a Material Adverse Effect.

 

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, except, in any case, where (a) the Company or such Subsidiary determines in its reasonable business judgment that it will agree to a work out, deliver a deed-in-lieu or allow such material contract to expire or that it will not enforce such material contract, or (b) where the failure to do so, either individually or in the aggregate, could not reasonably be likely to have a Material Adverse Effect.

 

ARTICLE VII
 NEGATIVE COVENANTS

 

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain

 

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outstanding, the Loan Parties shall not, nor shall they permit any of their respective Subsidiaries 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 Company or any of its Subsidiaries as debtor, or assign any accounts or other right to receive income, other than the following:

 

(a)        Permitted Encumbrances;

 

(b)        Liens with respect to Capitalized Leases of equipment entered into in the ordinary course of business of the Loan Parties; and

 

(c)        Liens securing Secured Indebtedness, the incurrence of which is not prohibited by this Article VII.

 

7.02     Indebtedness.  Create, incur, assume or suffer to exist any Indebtedness, except:

 

(a)        the Obligations;

 

(b)        Secured Indebtedness permitted under Section 7.11(f);

 

(c)        unsecured obligations (contingent or otherwise) existing or arising under any Swap Contract, provided that (i) 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 fluctuations in interest rates or foreign exchange rates and (ii) such Swap Contract does not contain any provision exonerating the non-defaulting party from its obligation to make payments to the defaulting party on outstanding transactions;

 

(d)       unsecured Indebtedness outstanding on the Closing Date and listed on Schedule 7.02 and any refinancings, refundings, renewals or extensions thereof; provided that the Loan Parties shall be in compliance, on a pro forma basis, with the provisions of Section 7.11; and

 

(e)        any other unsecured Indebtedness; provided that taking into account the incurrence of such Indebtedness, the Loan Parties shall be in compliance, on a pro forma basis, with the provisions of Section 7.11.

 

7.03     Investments.  Make or hold any Investments, except:

 

(a)        Investments held by the Loan Parties and their respective Subsidiaries in the form of Cash and Cash Equivalents;

 

(b)        (i) Investments made on or prior to the Closing Date by the Loan Parties and their Subsidiaries in their respective Subsidiaries, (ii) additional Investments by the Loan Parties and their Subsidiaries in Loan Parties (other than the Company), (iii) additional Investments by Subsidiaries that are not Loan Parties in other Subsidiaries that are not Loan

 

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Parties, (iv) Investments made on or prior to the Closing Date in Joint Ventures  and (v) additional Investments by the Loan Parties in Subsidiaries that are not Loan Parties and Joint Ventures; provided that (A) no Default has occurred and is continuing or would result from such Investment and (B) taking into account the making of such Investment, the Loan Parties shall be in compliance, on a pro forma basis, with the provisions of Section 7.11;

 

(c)        Guarantees permitted by Section 7.02;

 

(d)       Investments existing on the date hereof (other than those referred to in Section 7.03(b)(i) and (iv));

 

(e)        Investments in connection with the Acquisition;

 

(f)        loans and advances to employees in the ordinary course of business not to exceed $2,500,000 in the aggregate at any time outstanding;

 

(g)       Investments by the Loan Parties and their Subsidiaries not otherwise permitted under this Section 7.03; provided that, with respect to each Investment made pursuant to this Section 7.03(g):

 

(i)         such Investment shall not include or result in any contingent liabilities that could reasonably be expected to be material to the business, financial condition, operations or prospects of the Company and its Subsidiaries, taken as a whole (as determined in good faith (A) by the board of directors (or persons performing similar functions) of the Company or such Subsidiary if such board of directors is otherwise approving such transaction and (B) in each other case, by a Responsible Officer);

 

(ii)        such Investment shall be in property that is part of, or in lines of business that are, substantially the same lines of business as one or more of the principal businesses of the Loan Parties and their Subsidiaries in the ordinary course or Persons that own such property; and

 

(iii)       (A) immediately before and immediately after giving pro forma effect to any such Investment, no Default shall have occurred and be continuing or would result and (B) immediately after giving effect to such Investment, the Company and its Subsidiaries shall be in compliance, on a pro forma basis, with the provisions of Section 7.11.

 

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 or all of substantially all of the stock of any of its Subsidiaries (in each case, whether now owned or hereafter acquired) to or in favor of any Person, except that, so long as no Default exists or would result therefrom:

 

(a)        (i) any Person may merge into a Loan Party or a Subsidiary in a transaction in which such Loan Party or such Subsidiary is the surviving corporation, subject to the requirements of  Section 6.12, (ii) any Loan Party or any Subsidiary may sell, lease, transfer or otherwise dispose of its assets to another Loan Party or another Subsidiary, subject to the

 

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requirements of Section 6.12, (iii) any Subsidiary (other than a Guarantor) may liquidate or dissolve if the Company determines in good faith that such liquidation or dissolution is in the best interests of the Company and is not materially disadvantageous to the Lenders, and (iv) if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing or would result, any Loan Party or any Subsidiary may sell, transfer or otherwise dispose of Equity Interests of a Subsidiary (other than a Guarantor).  For purposes of clarification, nothing in this Section 7.04 shall prevent the issuance, transfer, conversion or repurchase of limited liability company interests in the Company, or the release of any Guarantor as permitted hereunder;

 

(b)        the Company and its Subsidiaries may consummate the Acquisition; and

 

(c)        in connection with any acquisition permitted under Section 7.03, any Subsidiary of the Company may merge into or consolidate with any other Person or permit any other Person to merge into or consolidate with it; provided that the Person surviving such merger shall be a wholly-owned Subsidiary of the Company and shall comply with the requirements of Section 6.12.

 

7.05     Dispositions.  Make any Disposition or enter into any agreement to make any Disposition, except:

 

(a)        Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business;

 

(b)        Dispositions of property by any Subsidiary to the Company or to a wholly-owned Subsidiary; provided that if the transferor of such property is a Guarantor, the transferee thereof must either be the Borrower or a Guarantor;

 

(c)        Dispositions permitted by Section 7.04;

 

(d)       (i) the Disposition of any Project or other Property and (ii) the sale or other Disposition of all, but not less than all, of the Equity Interests of any Subsidiary that is not a Wholly-Owned REIT Subsidiary; provided that such Disposition shall not result in a Material Adverse Effect and at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing or would result; provided  further that if (x) such Project or other Property is an Unencumbered Eligible Project or (y) such Subsidiary owns any Unencumbered Eligible Projects or receives fees under any Management Contracts, then at least two Business Days prior to the date of such Disposition, the Administrative Agent shall have received (1) an Officer’s Certificate certifying that (A) at the time of and immediately after giving effect to such Disposition no Default shall have occurred and be continuing or would result and (B) such Disposition does not result in a Material Adverse Effect.

 

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 the following shall be permitted:

 

(a)        each Subsidiary of the Company may make Restricted Payments pro rata to the holders of its Equity Interests; and

 

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(b)        the Company may make Restricted Payments in an aggregate amount in any fiscal year not to exceed the greater of (i) 95% of Adjusted Funds From Operations and (ii) the amount of Restricted Payments required to be paid by the Company (in the Company’s reasonable judgment) in order for it to (x) maintain its REIT Status and (y) avoid the payment of federal or state income or excise tax; provided, that (1) during the existence of an Event of Default arising under Section 8.01(a), Restricted Payments by the Company shall only be permitted up to the minimum amount needed to maintain the Company’s REIT Status and (2) notwithstanding the preceding clause (1), no Restricted Payments will be permitted following acceleration of any amount owing under either of the Facilities or during the existence of an Event of Default arising under Section 8.01(f) or (g).

 

7.07     Change in Nature of Business.  (a) Engage to any material extent in any business other than businesses of the type conducted by the Loan Parties and their Subsidiaries on the Closing Date and businesses reasonably related thereto, and (b) the Company shall not engage in any line of business which is not permitted to be engaged in by real estate investment trusts and shall not permit any of its taxable REIT Subsidiaries to engage in any line of business which is not permitted to be engaged in by taxable REIT Subsidiaries thereof.

 

7.08     Transactions with Affiliates.  Enter into or permit to exist any transaction of any kind with any Affiliate of the Company (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service), whether or not in the ordinary course of business, with any holder or holders of more than 5% of any class of equity securities of the Company, or with any Affiliate of the Company which is not its Subsidiary, on terms that are less favorable to the Company or any of its Subsidiaries, as applicable, than those that might be obtained in an arm’s length transaction at the time from Persons who are not such a holder or Affiliate.  Nothing contained in this Section 7.08 shall prohibit (a) increases in compensation and benefits for officers and employees of the Loan Parties or any of their Subsidiaries which are customary in the industry or consistent with the past business practice of such Loan Party or such Subsidiary, provided that no Default has occurred and is continuing or would result; (b) payment of customary partners’ indemnities; (c) performance of any obligations arising under the Loan Documents, (d) transactions between or among the Loan Parties, (e) Investments permitted by Section 7.03, (f) Dispositions permitted by Section 7.05; and (g) any Restricted Payment permitted by Section 7.06.

 

7.09     Amendments of Organizational Documents.  Permit any Subsidiary to, at any time cause or permit its certificate of formation, limited liability company agreement, certificate of limited partnership, partnership agreement, articles of incorporation, by-laws, or other charter documents, as the case may be, to be modified, amended or supplemented in any respect whatsoever, without, in each case, the express prior written consent or approval of the Administrative Agent, if such changes would materially adversely affect the rights of the Administrative Agent or the Lenders hereunder or under any of the other Loan Documents; provided that if such prior consent or approval is not required, such Loan Party shall nonetheless notify the Administrative Agent in writing promptly after any such modification, amendment or supplement to the charter documents of such Loan Party.

 

7.10     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

 

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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.

 

7.11     Financial Covenants.  (a)  Maximum Leverage.  Permit, as of the last day of such calendar quarter, the Leverage Ratio to exceed 60% (or, as of the last day of the two consecutive calendar quarters following (x) the consummation of the Acquisition or (y) the Company’s acquisition, pursuant to one transaction or a series of related transactions occurring contemporaneously, of one or more entities or property portfolios with total assets of at least $500 million, 65%).

 

(b)        Maximum Secured Debt.  Permit, as of the last day of each calendar quarter Total Secured Outstanding Indebtedness to exceed (A) 50% of Total Value on or prior to January 31, 2015, (B) 45% of Total Value after January 31, 2015 and on or prior to January 31, 2016 and (C) 40% of Total Value thereafter.

 

(c)        Minimum Equity Value.  Permit, the Combined Equity Value as of the last day of each fiscal quarter to be less than $3,903,650,000 (resetting upon the acquisition of a Managed REIT to the greater of (i) 75% of the Combined Equity Value calculated on a pro forma basis (giving effect to such acquisition) and (ii) the minimum Combined Equity Value as in effect immediately prior to such acquisition) plus an amount equal to 75% of the Fair Market Value of all Net Offering Proceeds received by the Company after the Closing Date.

 

(d)       Minimum Fixed Charge Coverage Ratio.  Permit, as of the last day of each calendar quarter, the ratio of (i) Adjusted Total EBITDA for such calendar quarter to (ii) Fixed Charges for the same calendar quarter to be less than 1.50 to 1.0 for each calendar quarter.

 

(e)        Minimum Unsecured Interest Coverage Ratio.  Permit, as of the last day of each calendar quarter, the ratio of (i) Unencumbered Property NOI plus Unencumbered Management EBITDA for such calendar quarter to (ii) Interest Expense on Total Unsecured Outstanding Indebtedness for the same calendar quarter to be less than 1.75 to 1.00.

 

(f)        Certain Indebtedness.  Create, incur, assume or permit to exist any Secured Indebtedness of a Loan Party other than (i) Secured Indebtedness that is Nonrecourse Indebtedness and (ii) Secured Indebtedness that is recourse to one or more Loan Parties in an aggregate amount not to exceed 5% of Total Value outstanding at any time.

 

(g)        Unsecured Debt to Unencumbered Asset Value.  Permit, as of the last day of each calendar quarter, Total Unsecured Outstanding Indebtedness to exceed 60% of Unencumbered Asset Value (or, as of the last day of the two consecutive calendar quarters following (x) the consummation of the Acquisition or (y) the Company’s acquisition, pursuant to one transaction or a series of related transactions occurring contemporaneously, of one or more entities or property portfolios with total assets of at least $500 million, 65% of Unencumbered Asset Value).

 

7.12     Prepayments, Etc. of Indebtedness.  Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner any Indebtedness at any

 

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time that an Event of Default exists or would result therefrom, except the prepayment of the Credit Extensions in accordance with the terms of this Agreement.

 

7.13     Fiscal Year Changes.  Make any change in its fiscal year.

 

7.14     Sanctions.  (a)  Directly or indirectly, engage in any transaction, investment, undertaking or activity that conceals the identity, source or destination of the proceeds from any category of prohibited offenses designated in any applicable law, regulation or other binding measure by the Organisation for Economic Cooperation and Development’s Financial Action Task Force on Money Laundering or violate these laws or any other applicable anti-money laundering law or engage in these actions.

 

(b)        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, Arranger, Administrative Agent, L/C Issuer, Swing Line Lender, or otherwise) of Sanctions.

 

ARTICLE VIII
 EVENTS OF DEFAULT AND REMEDIES

 

8.01     Events of Default.  Any of the following shall constitute an Event of Default:

 

(a)        Non-Payment.  Any Loan Party fails to (i) pay when and as required to be paid herein, and in any currency hereunder, any amount of principal of any Loan or any L/C Obligation (whether upon demand at maturity, by reason of acceleration or otherwise) or deposit any funds as Cash Collateral in respect of L/C Obligations, or (ii) pay within five Business Days after the same becomes due, any interest on any Loan or on any L/C Obligation, any fee due hereunder, or any other amount payable hereunder or under any other Loan Document; or

 

(b)        Specific Covenants.  (i) Any Loan Party fails to perform or observe any term, covenant or agreement contained in any of Section 2.04(b)(v), 6.01, 6.02(a), 6.02(f), 6.02(g), 6.03, 6.05, 6.10, 6.11, or Article VII or (ii) any Guarantor fails to perform or observe any term, covenant or agreement contained in the Guaranty; or

 

(c)        Other Defaults.  Any Loan Party fails to perform or observe any other covenant or agreement (not specified in Section 8.01(a) or (b)) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days after the earlier of (i) a Responsible Officer thereof obtaining actual knowledge of such failure and (ii) the Company receiving notice of such failure from the Administrative Agent (which notice shall be given at the request of any Lender); or

 

(d)       Representations and Warranties.  Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of any 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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(e)        Cross-Default.  (i) Any Loan Party or any Subsidiary thereof (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) and such failure continues after the applicable grace period, if any, in respect of any Material Indebtedness, or (B) fails to observe or perform any other agreement or condition relating to any Material Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, and such failure continues after the applicable grace period, if any, 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 Material Indebtedness (or, with respect to a Guarantee, the beneficiary or beneficiaries (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, in the case of a Guarantee, such Guarantee to become payable or cash collateral in respect thereof to be demanded); provided that this clause (e) shall not apply to Secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness; or

 

(f)        Insolvency Proceedings, Etc.  Any Loan Party or any Material Subsidiary thereof 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

 

(g)        Inability to Pay Debts; Attachment.  (i) Any Loan Party or any Material Subsidiary thereof 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

 

(h)        Judgments.  There is entered against any Loan Party or any Subsidiary thereof (i) one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments and orders) in an aggregate amount in excess of $10,000,000 (to the extent not covered by independent third-party insurance as to which the insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not dispute coverage and excluding judgments entered in respect of Nonrecourse Indebtedness and judgments entered in respect of Indebtedness that is recourse solely to a Subsidiary (x) that is not a Loan Party, (y) was formed solely to own a particular Project, and (z) does not engage in any business other than the ownership of such Project, 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 30 consecutive days during

 

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which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or

 

(i)         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 Company and its Subsidiaries under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $5,000,000, or (ii) the Company 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 $5,000,000; or

 

(j)         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 provision of any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document; or

 

(k)        Change of Control.  There occurs any Change of Control; or

 

(l)         REIT Status.  The Company shall, for any reason, lose or fail to maintain its REIT Status.

 

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:

 

(a)        declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be terminated;

 

(b)        declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, 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;

 

(c)        require that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and

 

(d)       exercise on behalf of itself, the Lenders and the L/C Issuer all rights and remedies available to it, the Lenders and the L/C Issuer under the Loan Documents or applicable Laws;

 

provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to any Loan Party under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all

 

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interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case 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 and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to Section 8.02), any amounts received on account of the Obligations shall, subject to the provisions of Sections 2.17 and 2.18 be applied 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, interest and Letter of Credit Fees) payable to the Lenders and the L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders and the L/C Issuer arising under the Loan Documents 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 Letter of Credit Fees, Unused Fees, Facility Fees and interest on the Loans, L/C Borrowings and other Obligations arising under the Loan Documents, ratably among the Lenders and the L/C Issuer 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 and L/C Borrowings, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Fourth held by them;

 

Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by the Borrower pursuant to Sections 2.04 and 2.17; 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.

 

Subject to Sections 2.04(c) and 2.17, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired or cancelled, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

 

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ARTICLE IX
 ADMINISTRATIVE AGENT

 

9.01     Appointment and Authority.  Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America 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 of this Article are solely for the benefit of the Administrative Agent, the Lenders and the L/C Issuer, and neither the Company 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.

 

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 Company 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:

 

(a)        shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

 

(b)        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 the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

 

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(c)        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 Company 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 to the Administrative Agent by the Company, a Lender or the L/C Issuer; and

 

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 (v) 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, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or the L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for the Loan Parties), 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.

 

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.  The Administrative Agent and any such sub-agent 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

 

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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 nonappealable 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, the L/C Issuer and the Company.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Company, 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.  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 and the L/C Issuer, 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)        If the Person serving as Administrative Agent is (i) a Defaulting Lender pursuant to clause (d) of the definition thereof or (ii) determined, by a court of competent jurisdiction by final and nonappealable judgment, to be grossly negligent in the performance of its material obligations and/or duties hereunder or to have engaged in willful misconduct in the performance of such obligations and/or duties, the Required Lenders may, to the extent permitted by applicable law, by notice in writing to the Company and such Person remove such Person as Administrative Agent and, in consultation with the Company, appoint a successor.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

 

(c)        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 L/C Issuer 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, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the L/C Issuer 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(j) and other than any rights to indemnity payments or

 

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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 Loan Parties to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Company and such successor.  After the retiring or removed Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 11.04 shall continue in effect for the benefit of such retiring 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.

 

(d)       Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also constitute its resignation as L/C Issuer and Swing Line Lender.  If Bank of America resigns as an L/C Issuer, it shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto, including the right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.04(c).  If Bank of America resigns as Swing Line Lender, it shall retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.05(c).  Upon the appointment by the Company of a successor L/C Issuer or Swing Line Lender hereunder (which successor shall in all cases be a Lender other than a Defaulting Lender), (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as applicable, (b) the retiring L/C Issuer and Swing Line Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to such Letters of Credit.

 

9.07     Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and the L/C Issuer 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 and the L/C Issuer 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, the Arrangers, the Syndication Agent or the Documentation Agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or

 

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any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the L/C Issuer 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 or L/C Obligation 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 any Loan Party) shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

(a)        to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, the L/C Obligations 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 of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.04(h) and (i), 2.10 and 11.04) allowed in such judicial proceeding; and

 

(b)        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 and the L/C Issuer to make such payments to the Administrative Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuer, 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 2.10 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 or the L/C Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the L/C Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or the L/C Issuer or in any such proceeding.

 

9.10     Guaranty Matters.  Without limiting the provisions of Section 9.09, the Lenders and the L/C Issuer irrevocably authorize the Administrative Agent, at its option and in its discretion to release any Guarantor from its obligations under the Guaranty if required pursuant to Section 10.10 hereof.  Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release any Guarantor from its obligations under the Guaranty pursuant to this Section 9.10.

 

ARTICLE X
 CONTINUING GUARANTY

 

10.01   Guaranty.  Each Guarantor, jointly and severally with the other Guarantors, hereby absolutely, irrevocably and unconditionally guarantees, as a guaranty of payment and

 

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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, and whether arising hereunder or under any other Loan Document (including all renewals, extensions, amendments, refinancings and other modifications thereof and all costs, reasonable and documented attorneys’ fees and expenses incurred in connection with the collection or enforcement thereof) (for each Guarantor, subject to the proviso in this sentence, its “Guaranteed Obligations”); provided, that the liability of each Guarantor individually with respect to this Guaranty shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the Bankruptcy Code of the United States or any comparable provisions of any applicable state law.  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 the Guarantors, and conclusive for the purpose of establishing the amount of the Guaranteed Obligations.  This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Guaranteed Obligations or any instrument or agreement evidencing any Guaranteed 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 Guaranteed Obligations which might otherwise constitute a defense to the obligations of any 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 Creditor Parties may, at any time and from time to time, without notice or demand, without the consent of such Guarantor, 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 Guaranteed Obligations or any part thereof; (b) take, hold, exchange, enforce, waive, release, sell, or otherwise dispose of, or impair or fail to perfect any Lien on, any security for the payment of this Guaranty or any Guaranteed Obligations; (c) apply such security and direct the order or manner of sale thereof as the Administrative Agent, the L/C Issuer and the Lenders in their sole discretion may determine; and (d) release or substitute any other Guarantor or one or more of any endorsers or other guarantors of any of the Guaranteed 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 the Guarantors under this Guaranty or which, but for this provision, might operate as a discharge of one or more of the Guarantors.

 

10.03   Certain Waivers.  Each Guarantor waives (a) any defense arising by reason of any disability or other defense of the Borrower, any other Loan Party or any other guarantor of the Guaranteed Obligations or any part thereof, or the cessation from any cause whatsoever (including any act or omission of any Creditor Party) of the liability of the Borrower (other than the defense of prior payment in full of the Guaranteed Obligations); (b) any defense based on any claim that such Guarantor’s obligations exceed or are more burdensome than those of the Borrower; (c) the benefit of any statute of limitations affecting such Guarantor’s liability hereunder; (d) any requirement to proceed against the Borrower or any other Loan Party, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any other remedy in the power of any Creditor Party whatsoever; (e) any benefit of and any right to participate in any

 

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security now or hereafter held by any Creditor Party; and (f) to the fullest extent permitted by law, any and all other defenses (other than the defense of prior payment in full of the Guaranteed Obligations) 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 Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence, creation or incurrence of new or additional Guaranteed 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 Guaranteed Obligations and the obligations of any other guarantor of the Guaranteed Obligations or any part thereof, and a separate action may be brought against any Guarantor to enforce this Guaranty whether or not the Borrower or any other Person is joined as a party. For the avoidance of doubt, all obligations of each Guarantor under this Guaranty are joint and several obligations of all the Guarantors.

 

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 Guaranteed Obligations and any amounts payable under this Guaranty have been indefeasibly paid and performed in full and the Commitments and the Facilities are terminated.  If any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust by such Guarantor for the benefit of the Creditor Parties and shall forthwith be paid to the Administrative Agent for the benefit of the Creditor Parties to reduce the amount of the Guaranteed Obligations, whether matured or unmatured.

 

10.06   Termination; Reinstatement.  This Guaranty is a continuing, absolute, unconditional and irrevocable guaranty of all Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until all Guaranteed Obligations and any other amounts payable under this Guaranty are indefeasibly paid in full in cash and the Commitments and the Facilities with respect to the Guaranteed Obligations are terminated.  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 Creditor Parties exercises its right of setoff, in respect of the Guaranteed 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 Creditor 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 Creditor Parties are in possession of or have released this Guaranty and regardless of any prior revocation, rescission, termination or reduction.  The obligations of the Guarantors under this paragraph shall survive termination of this Guaranty.

 

Notwithstanding anything to the contrary contained herein, if at any time any Subsidiary is released from its obligations as a Guarantor under this Guaranty as a result of an Investment Grade Permitted Release with respect to such Subsidiary and, subsequent to such Investment Grade Permitted Release, such Subsidiary provides a Guarantee of, or otherwise incurs, any

 

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Indebtedness of the type described in clause (a) of such definition that is not Secured Indebtedness (including, without limitation and for the avoidance of doubt, Indebtedness (other than Secured Indebtedness) that is incurred under or in connection with notes or bonds issued in a Rule 144A Transaction) (any such Guarantee or other incurrence of Indebtedness being referred to herein as an “Unsecured Indebtedness Incurrence”), then the Company shall immediately notify the Administrative Agent thereof and at the time of such Unsecured Indebtedness Incurrence, all obligations of such Subsidiary under this Guaranty (including its guaranty of the Guaranteed Obligations hereunder) shall be automatically revived and reinstated without any action on the part of the Administrative Agent, such Subsidiary or any other Person.  In connection with any such revival and reinstatement of the obligations of such Subsidiary hereunder, such Subsidiary shall (x) execute such reaffirmations of its obligations hereunder (including reaffirmations of its guaranty of the Guaranteed Obligations) as reasonably requested by the Administrative Agent and (y) cause all requirements of Section 6.12 to satisfied with respect to such Subsidiary.

 

10.07   Subordination.  Each Guarantor hereby subordinates the payment of all obligations and indebtedness of any Loan Party 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 Creditor Parties or resulting from such Guarantor’s performance under this Guaranty, to the indefeasible payment in full in cash of all Guaranteed Obligations; provided that such Guarantor may receive regularly scheduled payments of principal and interest on such obligations and indebtedness from the Borrower, except upon the occurrence and continuance of an Event of Default.  If any amounts are paid to any Guarantor in violation of the foregoing subordination, then such amounts shall be held in trust for the benefit of the Creditor Parties and shall forthwith be paid to the Creditor Parties to reduce the amount of the Guaranteed Obligations, whether matured or unmatured.  Upon the occurrence and continuance of an Event of Default, if the Creditor 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 Creditor Parties and the proceeds thereof shall be paid over to the Creditor Parties on account of the Guaranteed 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 Guaranteed Obligations is stayed, in connection with any case commenced by or against the Borrower or any other Loan Party under any Debtor Relief Laws, or otherwise, all such amounts shall nonetheless be payable by the Guarantors immediately upon demand by the Creditor Parties.

 

10.09   Condition of Loan Parties.  Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from the Loan Parties and any other guarantor of the Guaranteed Obligations such information concerning the financial condition, business and operations of the Loan Parties and any such other guarantor as such Guarantor requires, and that none of the Creditor Parties has any duty, and such Guarantor is not relying on the Creditor Parties at any time, to disclose to such Guarantor any information relating to the business, operations or financial condition of any Loan Party or any other guarantor of the Guaranteed Obligations (such Guarantor waiving any duty on the part of the Creditor Parties to disclose such information and any defense relating to the failure to provide the same).

 

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10.10   Releases of Guarantors.

 

(a)        Releases following receipt of Investment Grade Credit Rating.  If at any time the Company obtains an Investment Grade Credit Rating, the Administrative Agent shall (at the sole cost of the Company and pursuant to documentation reasonably satisfactory to the Administrative Agent) promptly release all (or such portion as requested by the Company) of the Guarantors from their obligations under this Agreement and the other Loan Documents (each of such releases being referred to herein as an “Investment Grade Permitted Release”), in each case upon the completion of the following conditions precedent:

 

(i)         At the time of such Investment Grade Permitted Release, any Subsidiary that is being released from its obligations under this Agreement and the other Loan Documents shall not have any Indebtedness, or any Guarantee of any Indebtedness, of the type described in clause (a) of the definition of Indebtedness (other than Secured Indebtedness), including, without limitation and for the avoidance of doubt, Indebtedness (other than Secured Indebtedness) incurred under or in connection with notes or bonds issued pursuant to a Rule 144A Transaction;

 

(ii)        The Company shall have delivered to the Administrative Agent, on or prior to the date that is ten (10) Business Days (or such shorter period of time as agreed to by the Administrative Agent) before the date on which such Investment Grade Permitted Release is to be effected, an Officer’s Certificate (x) certifying that the Company has obtained an Investment Grade Credit Rating and (y) notifying the Administrative Agent and the Lenders of the Investment Grade Permitted Release that it is requesting; and

 

(iii)       The Company shall have submitted to the Administrative Agent and the Lenders, within one (1) Business Date prior to the date on which such Investment Grade Permitted Release is to be effected, an Officer’s Certificate certifying to the Administrative Agent and the Lenders that, immediately before and immediately after giving effect to such Investment Grade Permitted Release, (1) no Default or Event of Default has occurred and is continuing or would result therefrom and (2) 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, are true and correct in all material respects on and as of the date of such release and immediately after giving effect to such release, except (A) 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, (B) any representation or warranty that is already by its terms qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct in all respects as of such date after giving effect to such qualification and (C) for purposes of this Section 10.10, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01.

 

(b)        Release upon Certain Events.  In the event that (i) all of the capital stock or other Equity Interests of any Guarantor is sold or otherwise disposed of in a transaction

 

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permitted by Section 7.05(d) (except to the extent that such sale or disposition is to the Borrower or any other Loan Party) or (ii) a Guarantor (w) does not own any Projects that are Unencumbered Eligible Projects, (x) does not receive any fees under any Management Contracts, (y) does not have any Letters of Credit issued for the account of such Guarantor, and (z) is not a Wholly-Owned REIT Subsidiary, then such Guarantor shall be released from its obligations under this Guaranty and the other Loan Documents; provided, that the Borrower shall have delivered to the Administrative Agent, at least two Business Days prior to the date of the proposed release (or such shorter period of time as agreed to by the Administrative Agent in writing), a written request for release (a “Guarantor Release Notice”), together with an Officer’s Certificate certifying that (x) in the case of clause (i) above, such sale or disposition is as a result of a transaction permitted under this Agreement and (y) as of the effective date of such release (as set forth in the Guarantor Release Notice) such Guarantor (1) will not own any Projects that are Unencumbered Eligible Projects, (2) will not receive any fees under any Management Contracts, (3) will not have any Letters of Credit issued for its account and (4) is not a Wholly-Owned REIT Subsidiary.  The Administrative Agent will (at the sole cost of the Company) following receipt of such Guarantor Release Notice and Officer’s Certificate, and each of the Lenders and the L/C Issuer irrevocably authorizes the Administrative Agent to, execute and deliver such documents as the Company or such Guarantor may reasonably request to evidence the release of such Guarantor from its obligations hereunder and under the other Loan Documents, which documents shall be reasonably satisfactory to the Administrative Agent.

 

(c)        The Administrative Agent shall promptly notify the Lenders of any such release hereunder, and this Agreement and each other Loan Document shall be deemed amended to delete the name of any Guarantor released pursuant to Section 10.10(b).

 

10.11   Contribution.  At any time a payment in respect of the Guaranteed Obligations is made under this Guaranty, the right of contribution of each Guarantor against each other Guarantor shall be determined as provided in the immediately following sentence, with the right of contribution of each Guarantor to be revised and restated as of each date on which a payment (a “Relevant Payment”) is made on the Guaranteed Obligations under this Guaranty.  At any time that a Relevant Payment is made by a Guarantor that results in the aggregate payments made by such Guarantor in respect of the Guaranteed Obligations to and including the date of the Relevant Payment exceeding such Guarantor’s Contribution Percentage (as defined below) of the aggregate payments made by all Guarantors in respect of the Guaranteed Obligations to and including the date of the Relevant Payment (such excess, the “Aggregate Excess Amount”), each such Guarantor shall have a right of contribution against each other Guarantor who either has not made any payments or has made payments in respect of the Guaranteed Obligations to and including the date of the Relevant Payment in an aggregate amount less than such other Guarantor’s Contribution Percentage of the aggregate payments made to and including the date of the Relevant Payment by all Guarantors in respect of the Guaranteed Obligations (the aggregate amount of such deficit, the “Aggregate Deficit Amount”) in an amount equal to (x) a fraction the numerator of which is the Aggregate Excess Amount of such Guarantor and the denominator of which is the Aggregate Excess Amount of all Guarantors multiplied by (y) the Aggregate Deficit Amount of such other Guarantor.  A Guarantor’s right of contribution pursuant to the preceding sentences shall arise at the time of each computation, subject to adjustment at the time of each computation; provided, that no Guarantor may take any action to enforce such right until after all Guaranteed Obligations and any other amounts payable under

 

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this Guaranty are indefeasibly paid in full in cash and the Commitments and the Facilities with respect to the Guaranteed Obligations are terminated, it being expressly recognized and agreed by all parties hereto that any Guarantor’s right of contribution arising pursuant to this Section 10.11 against any other Guarantor shall be expressly junior and subordinate to such other Guarantor’s obligations and liabilities in respect of the Guaranteed Obligations and any other obligations owing under this Guaranty.  As used in this Section 10.11, (i) each Guarantor’s “Contribution Percentage” shall mean the percentage obtained by dividing (x) the Adjusted Net Worth (as defined below) of such Guarantor by (y) the aggregate Adjusted Net Worth of all Guarantors; (ii) the “Adjusted Net Worth” of each Guarantor shall mean the greater of (x) the Net Worth (as defined below) of such Guarantor and (y) zero; and (iii) the “Net Worth” of each Guarantor shall mean the amount by which the fair saleable value of such Guarantor’s assets on the date of any Relevant Payment exceeds its existing debts and other liabilities (including contingent liabilities, but without giving effect to any Guaranteed Obligations arising under this Guaranty) on such date.  All parties hereto recognize and agree that, except for any right of contribution arising pursuant to this Section 10.11, each Guarantor who makes any payment in respect of the Guaranteed Obligations shall have no right of contribution or subrogation against any other Guarantor in respect of such payment until after all Guaranteed Obligations and any other amounts payable under this Guaranty are indefeasibly paid in full in cash and the Commitments and the Facilities with respect to the Guaranteed Obligations are terminated.  Each of the Guarantors recognizes and acknowledges that the rights to contribution arising hereunder shall constitute an asset in favor of the party entitled to such contribution.  In this connection, each Guarantor has the right to waive its contribution right against any Guarantor to the extent that after giving effect to such waiver such Guarantor would remain Solvent, in the determination of the Administrative Agent or the Required Lenders.

 

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 (or, to the extent such amendment or waiver (i) relates solely to a specific Tranche, the Tranche Required Lenders with respect to such Tranche, (ii) changes Section 1.08, the Required Revolving Lenders, (iii) except as otherwise provided in Section 1.08, amends the definition of “Alternative Currency”, each Revolving Credit Lender, (iv) changes the definition of “Required Revolving Lenders”, “Required Term Lenders”, “Tranche Required Lenders” or “Appropriate Lenders”, each Lender under the applicable Facility or (v) waives any obligation of the Borrower to pay interest or Letter of Credit Fees at the Default Rate, the Required Revolving Lenders), the Borrower, 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 (i) the Administrative Agent and the Borrower may, without the consent of any Lender or any Guarantor then party hereto, amend this Agreement to add a Subsidiary as a “Guarantor” hereunder pursuant to a joinder agreement in substantially the form of Exhibit G and (ii) notwithstanding the foregoing provisions of this Section 11.01 (including the first proviso above), no such amendment, waiver or consent shall:

 

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(a)        waive any condition set forth in Section 4.01(a), without the written consent of each Lender;

 

(b)        without limiting the generality of clause (a) above, waive any condition set forth in Section 4.02 as to any Credit Extension under a particular Facility without the written consent of the Required Revolving Lenders or the Required Term Lenders, as the case may be;

 

(c)        extend (except as provided in Section 2.15) or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written consent of such Lender;

 

(d)       postpone any date fixed by this Agreement or any other Loan Document for (i) any payment (excluding mandatory prepayments) of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under such other Loan Document without the written consent of each Lender entitled to such payment or (ii) any scheduled reduction of any Facility hereunder or under any other Loan Document without the written consent of each Appropriate Lender;

 

(e)        reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of the second proviso to this Section 11.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender entitled to such amount; provided, however, that only the consent of the Required Lenders shall be necessary (i) to amend the definition of “Default Rate” or (ii) to amend any financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable hereunder;

 

(f)        change any of the terms or provisions in any Loan Document requiring pro rata payments, distributions, commitment reductions or sharing of payments without the consent of each Lender, including (i) Section 2.14 or 8.03 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender or (ii) the order of application of any reduction in the Commitments or any prepayment of Loans among the Facilities from the application thereof set forth in the applicable provisions of Section 2.06(b) or 2.07(b), respectively, in any manner that materially and adversely affects the Lenders under a Facility without the written consent of (A) if such Facility is the Term Facility, each Term Lender and (B) if such Facility is the Revolving Credit Facility, each Revolving Credit Lender; provided, that with the consent of the Required Lenders, such terms and provisions may be amended on customary terms in connection with an “amend and extend” transaction, but only if all Lenders that consent to such “amend and extend” transaction are treated on a pro rata basis;

 

(g)        change any provision of this Section 11.01 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 (other than the definitions specified in the first paragraph of this Section 11.01), without the written consent of each Lender;

 

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(h)        release all or substantially all of the value of the Guaranty, without the written consent of each Lender, except as expressly provided in the Loan Documents; or

 

(i)         impose any greater restriction on the ability of any Lender under a Facility to assign any of its rights or obligations hereunder without the written consent of (i) if such Facility is the Term Facility, each Term Lender and (ii) if such Facility is the Revolving Credit Facility, each Revolving Credit Lender;

 

and provided, further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) 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 (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender in a disproportionately adverse manner relative to other affected Lenders shall require the consent of such Defaulting Lender.

 

Notwithstanding any provision herein to the contrary, this Agreement may be amended with the written consent of the Required Lenders, the Administrative Agent, the Borrower and the other Loan Parties (i) to add one or more additional revolving credit or term loan facilities to this Agreement, and to permit the extensions of credit and all related obligations and liabilities arising in connection therewith from time to time outstanding to share ratably (or on a basis subordinated to the existing facilities hereunder) in the benefits of this Agreement and the other Loan Documents with the obligations and liabilities from time to time outstanding in respect of the existing facilities hereunder, and (ii) in connection with the foregoing, to permit, as deemed appropriate by the Administrative Agent and approved by the Required Lenders, the Lenders providing such additional credit facilities to participate in any required vote or action required to be approved by the Required Lenders or by any other number, percentage or class of Lenders hereunder.

 

11.02   Notices; Effectiveness; Electronic Communications.  (a)  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 telecopier as follows,

 

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and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

 

(i)         if to a Loan Party, the Administrative Agent, the L/C Issuer or the Swing Line Lender, to the address, telecopier number, electronic mail address or telephone number specified for such Person on Schedule 11.02; and

 

(ii)        if to any other Lender, to the address, telecopier 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 Loan Parties).

 

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 communications sent by telecopier 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).

 

(b)        Electronic Communications.  Notices and other communications to the Lenders and the L/C Issuer 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 Lender or the L/C Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent, the Swing Line Lender, the L/C Issuer or a Loan Party 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.

 

(c)        The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE

 

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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 any Loan Party, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of any Loan Party’s or the Administrative Agent’s transmission of Borrower Materials through the Internet.  In addition, in no event shall any Agent Party have any liability to any Loan Party, any Lender, the L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

(d)       Change of Address, Etc.  Each of the Loan Parties, the Administrative Agent, the L/C Issuer and the Swing Line Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the Company, the Administrative Agent, the L/C Issuer and the Swing Line Lender.  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, telecopier 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 one of more of the Company and its Subsidiaries or their respective securities for purposes of United States Federal or state securities laws.

 

(e)        Reliance by Administrative Agent, L/C Issuer and Lenders.  The Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic or electronic Loan Notices, Letter of Credit Applications and Swing Line Loan Notices) purportedly given by or on behalf of a Loan Party 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 Company shall indemnify the Administrative Agent, the L/C Issuer, 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 a Loan Party.  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.

 

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11.03   No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender, the L/C Issuer 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 and the L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its 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) the L/C Issuer or the Swing Line Lender from exercising the rights and remedies that inure to its benefit (solely in its capacity as L/C Issuer or Swing Line Lender, as the case may be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in accordance with Section 11.08 (subject to the terms of Section 2.14), 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 2.14, 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.  (a)  Costs and Expenses.  The Loan Parties shall pay, or cause to be paid, (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, MLPF&S and their respective Affiliates (including the reasonable documented fees, charges and disbursements of counsel for the Administrative Agent and MLPF&S), 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) all reasonable out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the Administrative Agent, any Lender or the L/C Issuer (including the fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer), 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 Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

 

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(b)        Indemnification.  The Loan Parties shall indemnify the Administrative Agent (and any sub-agent thereof), the Arrangers, the Swing Line Lender, each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Company or any other Loan Party) other than such 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 or thereto of their respective obligations hereunder or thereunder or 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 Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials at, on, under or emanating from any property owned, leased or operated by the any Loan Party or any of its Subsidiaries, or any Environmental Liability related in any way to any Loan Party 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 any Loan Party or any of such Loan Party’s directors, shareholders or creditors, 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 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 Indemnitee (or any Affiliate Controlled by or under common Control with such Indemnitee).

 

(c)        Reimbursement by Lenders.  To the extent that the Company for any reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the Arrangers, the Swing Line Lender, the L/C Issuer or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Arrangers, the Swing Line Lender, the L/C Issuer or such Related Party, as the case may be, such Lender’s ratable share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought according to the proportion of (a) the sum of the (i) Total Outstandings owing to such Lender (with the aggregate amount of such Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Lender for purposes hereof) other than the Outstanding Amount of Competitive Loans and (ii) the aggregate unused Commitments (determined without giving effect to any Competitive Loans outstanding on such date) of such Lender to (b) the sum of (i) Total Outstandings other than the Outstanding Amount of Competitive Loans and (ii) the aggregate unused Commitments (determined without giving effect to any Competitive Loans outstanding on such date)) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the

 

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case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent), any Arranger, the Swing Line Lender or the L/C Issuer in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), the Swing Line Lender or L/C Issuer in connection with such capacity.  The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 2.13(d).

 

(d)       Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, no Loan Party, nor any Subsidiary thereof, shall assert, and each Loan Party hereby waives, and acknowledges that no other Person shall have, any claim against 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 or thereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit 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.

 

(e)        Payments.  All amounts due under this Section shall be payable not later than ten Business Days after demand therefor.

 

(f)        Survival.  The agreements in this Section and the indemnity provisions of Section 11.02(c) shall survive the resignation of the Administrative Agent, the L/C Issuer and the Swing Line Lender, the replacement of any Lender, the termination of the Aggregate Commitments 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 any Loan Party is made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C Issuer 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, the L/C Issuer 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 and the L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount received by such Lender or the L/C Issuer and 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 applicable Overnight Rate from time to time in effect, in the applicable currency of such recovery or payment.  The obligations of the Lenders and the L/C Issuer under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.

 

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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 no 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 any attempted such assignment or transfer without such consent shall be null and void) and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of Section 11.06(b), (ii) by way of participation in accordance with the provisions of Section 11.06(d), or (iii) by way of pledge or assignment, or grant of a security interest, subject to the restrictions of Section 11.06(f), (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, the L/C Issuer 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 Commitment(s) and the Loans (including for purposes of this Section 11.06(b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it); provided that (in each case with respect to any Facility) any such assignment shall be subject to the following conditions:

 

(i)         Minimum Amounts.

 

(A)       in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment under any Facility and/or the Loans at the time owing to it under any Facility or contemporaneous assignments to related Approved Funds that equal at least the amount specified in subsection (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 aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the applicable 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 $5,000,000 in the case of any assignment in respect of any Facility, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Company otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible

 

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Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met;

 

(ii)        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 or the Commitment assigned, except that this clause (ii) shall not (A) apply to rights in respect of Bid Loans or the Swing Line Lender’s rights and obligations in respect of Swing Line Loans or (B) prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities on a non-pro rata basis;

 

(iii)       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 Company (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, (2) if such assignment is with respect to the Revolving Credit Facility, such assignment is to a Revolving Credit Lender or (3) if such assignment is with respect to the Term Facility, such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;

 

(B)       the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if (1) such assignment is with respect to the Revolving Credit Facility and is to a Person that is not a Revolving Credit Lender or (2) such assignment is with respect to the Term Facility and is to Person that is not a Lender, an Affiliate of a Lender or an Approved Fund;

 

(C)       the consent of the L/C Issuer and the Swing Line Lender shall be required for any assignment in respect of the Revolving Credit Facility if such assignment is to a Person that is not a Revolving Credit Lender.

 

(iv)       Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, and shall pay or cause to be paid to the Administrative Agent 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, and such fee shall be waived in the event of an assignment by a Lender to its Affiliate.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

 

(v)        No Assignment to Certain Persons.  No such assignment shall be made to (A) the Company or any of the Company’s Affiliates or Subsidiaries or (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B), or (C) a natural person.

 

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(vi)       Certain Additional Payments.   In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by such Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the L/C Issuer or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swing Line Loans in accordance with its Applicable Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

 

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; provided that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Upon request, the Borrower (at its expense) shall execute and deliver a Note to (i) the assignee Lender and/or (ii) in the case of a partial assignment by a Lender of its rights or obligations under this Agreement, the assigning 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 Section 11.06(d).

 

(c)        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 the Commitments of, and principal amounts (and stated interest) of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and

 

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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 hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by any Loan Party and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(d)       Participations.  Any Lender may at any time, without the consent of, or notice to, the Company, any other Loan Party or the Administrative Agent, sell participations to any Person (other than a natural person, a Defaulting Lender or the Company or any of the Company’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 its Commitment and/or the Loans (including such Lender’s participations in L/C Obligations and/or Swing Line 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 Company, the other Loan Parties, the Administrative Agent, the Lenders and the L/C Issuer 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.  Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 (subject to the requirements and limitations of such sections) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 11.06(b) (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 Section 11.06(b)); provided that such Participant agrees to be subject to the provisions of Sections 3.06(a) and 11.13 as if it were an assignee under Section 11.06(b).  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 2.14 as though it were a Lender.

 

Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) 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

 

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commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive, absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register 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.

 

(e)        Limitations upon Participant Rights.  A Participant shall not be entitled to receive any greater payment under Section 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 or unless the sale of the participation to such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower is notified of the Participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 3.01(e) as though it were a Lender.

 

(f)        Certain Pledges.  Any Lender may at any time pledge or assign, or grant 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, or grant of a security interest, to secure obligations to a Federal Reserve Bank or any other central bank; provided that no such pledge or assignment or grant shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee or grantee for such Lender as a party hereto.

 

(g)        Resignation as L/C Issuer or Swing Line Lender after Assignment.  Notwithstanding anything to the contrary contained herein, if at any time Bank of America assigns all of its Revolving Credit Commitment and Revolving Credit Loans pursuant to Section 11.06(b), Bank of America may (i) upon 30 days’ notice to the Company and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to the Company, resign as Swing Line Lender.  In the event of any such resignation as L/C Issuer or Swing Line Lender, the Company shall be entitled to appoint from among the Lenders a successor L/C Issuer or Swing Line Lender hereunder; provided, however, that no failure by the Company to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case may be.  If Bank of America resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.04(c)).  If Bank of America resigns as Swing Line Lender, it shall retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.05(c).  Upon the appointment of a successor L/C Issuer and/or Swing Line Lender, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring

 

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L/C Issuer or Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to such Letters of Credit.

 

11.07   Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent, the Lenders and the L/C Issuer 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 or obligations under this Agreement or any Eligible Assignee invited to be a Lender pursuant to Section 2.16(c) 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 any Loan Party and its obligations, this Agreement or payments hereunder, (g) on a confidential basis to (i) any rating agency in connection with rating the Company or any of 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 Company 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, the L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other than the Company or another Loan Party.

 

For purposes of this Section, “Information” means all information received from any Loan Party or any Subsidiary thereof relating to any Loan Party or any Subsidiary thereof or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by any Loan Party or any Subsidiary thereof, provided that, in the case of information received from a Loan Party or any such 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 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, the Lenders and the L/C Issuer acknowledges that (a) the Information may include material non-public information concerning a Loan Party or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of

 

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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, the L/C Issuer 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 (and subject to Section 2.14), 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, the L/C Issuer or any such Affiliate to or for the credit or the account of the Company or any other Loan Party against any and all of the obligations of the Company or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender or the L/C Issuer or their respective Affiliates, irrespective of whether or not such Lender, L/C Issuer or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Company or such Loan Party may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender or the L/C Issuer different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided, that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.18 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the L/C Issuer and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The rights of each Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have.  Each Lender and the L/C Issuer agrees to notify the Company 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; 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.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been

 

151
 

 

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 telecopy 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 or any Letter of Credit shall remain outstanding.

 

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.  Without limiting the foregoing provisions of this Section 11.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent, the L/C Issuer or the Swing Line Lender, as applicable, then such provisions shall be deemed to be in effect only to the extent not so limited.

 

11.13   Replacement of Lenders.  If the Borrower is entitled to replace a Lender pursuant to the provisions of Section 3.06, or if any Lender is a Defaulting Lender or a Non-Consenting Lender, or if any other circumstance exists hereunder that gives the Borrower the right to replace a Lender as a party hereto, 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 other 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 (i) from the assignee, the outstanding principal of its Loans and L/C Advances and all accrued interest and fees payable to it hereunder and under the other Loan Documents and (ii) from the

 

152
 

 

Borrower, all other amounts payable by the Borrower hereunder and under the other Loan Documents (including pursuant to Section 3.01, 3.04 or 3.05) (it being understood that the Assignment and Assumption relating to such assignment shall provide that any interest and fees that accrued prior to the effective date of the assignment shall be for the account of the replaced Lender and such amounts that accrue on and after the effective date of the assignment shall be for the account of the replacement Lender);

 

(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; and

 

(d)       such assignment does not conflict with applicable Laws; and

 

(e)       in the case of an assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

 

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.  Each Lender agrees that, if the Borrower elects to replace such Lender in accordance with this Section 11.13, it shall promptly execute and deliver to the Administrative Agent an Assignment and Assumption to evidence the assignment and shall deliver to the Administrative Agent any Note (if a Note has been issued in respect of such Lender’s Loans) subject to such Assignment and Assumption; provided that the failure of any such Lender to execute an Assignment and Assumption shall not render such assignment invalid and such assignment shall be recorded in the Register.

 

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.  THE COMPANY AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY LENDER, THE L/C ISSUER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN 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

 

153
 

 

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.  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.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE COMPANY OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(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 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 11.02.  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).  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.

 

154
 

 

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), each of the Loan Parties acknowledges and agrees, and acknowledges its respective Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Arrangers are arm’s-length commercial transactions between the Company, each of the other Loan Parties and their respective Affiliates, on the one hand, and the Administrative Agent and the Arrangers, on the other hand, (B) each of the Company and the other Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) each of the Company and the other Loan Parties 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, each of the Lenders and each of the Arrangers each 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 Company, any other Loan Party or any of their respective Affiliates, or any other Person and (B) none of the Administrative Agent, any Lender or any Arranger has any obligation to the Company, any other Loan Party or any of their respective 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, the Lenders and the Arrangers and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company, the other Loan Parties and their respective Affiliates, and none of the Administrative Agent, any Lender or any Arranger has any obligation to disclose any of such interests to the Company, the other Loan Parties or any of their respective Affiliates.  To the fullest extent permitted by law, each of the Company and each of the other Loan Parties hereby waives and releases any claims that it may have against the Administrative Agent, any Lender or any Arranger with respect 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 Loan Parties 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 each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance with the Act.

 

155
 

 

Each Loan Party 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   Judgment Currency.   If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given.  The obligation of the Borrower in respect of any such sum due from it to the Administrative Agent or any Lender hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business Day following receipt by the Administrative Agent or such Lender, as the case may be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such Lender, as the case may be, may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent or any Lender from the Borrower in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or such Lender, as the case may be, against such loss.  If the amount of the Agreement Currency so purchased is greater than the sum originally due to the Administrative Agent or any Lender in such currency, the Administrative Agent or such Lender, as the case may be, agrees to return the amount of any excess to the Borrower (or to any other Person who may be entitled thereto under applicable law).

 

11.20   ENTIRE AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

11.21   Original Notes.  On the Closing Date, the Original Notes, if any, held by each Lender shall be deemed to be cancelled and, if such Lender has requested a Revolving Credit Note or a Term Note hereunder, amended and restated by the Revolving Credit Note or Term Note, as applicable, delivered hereunder on or about the Closing Date (regardless of whether any Lender shall have delivered to the Company for cancellation the Original Note held by it).  Each Lender, whether or not requesting a Revolving Credit Note or Term Note hereunder, shall use its commercially reasonable efforts to deliver the Original Notes held by it to the Company for cancellation and/or amendment and restatement.  All amounts owing under, and evidenced by, the Original Notes as of the Closing Date shall continue to be outstanding hereunder, and shall from and after the Closing Date, if requested by the Lender holding such Original Note(s), be evidenced by the Revolving Credit Notes and Term Notes, as applicable, and shall in any event be evidenced by, and governed by the terms of, this Agreement.  Each Lender hereby agrees to indemnify and hold harmless the Loan Parties from and against any and all liabilities, losses,

 

156
 

 

damages, actions or claims that may be imposed on, incurred by or asserted against any Loan Party arising out of such Lender’s failure to deliver the Original Notes held by it to the Company for cancellation, subject to the condition that the Company shall not make any payment to any Person claiming to be the holder of such Original Notes unless such Lender is first notified of such claim and is given the opportunity, at such Lender’s sole cost and expense, to assert any defenses to such payment.

 

11.22   Amendment and Restatement.  As of the Closing Date, the Commitments of certain “Lenders” under (and as defined in) the Original Credit Agreement shall be terminated by the Company (such Lenders, the “Departing Lenders”).  The remaining “Lenders” under (and as defined in) the Original Credit Agreement shall be Lenders under this Agreement with Commitments as set forth on Schedule 2.01 hereto.  By its execution and delivery of this Agreement, each Lender that was a “Lender” under (and as defined in) the Original Credit Agreement hereby consents to the execution and delivery of this Agreement and to the non-pro rata reduction of Commitments (under and as defined in the Original Credit Agreement) occurring on the Closing Date as a result of the termination of the Commitments of the Departing Lenders, and the concurrent repayment in full of all loans and other obligations owing (whether or not due) to the Departing Lenders.  On the Closing Date, effective immediately following such termination and repayment, the Original Credit Agreement shall be amended, restated and superseded in its entirety by this Agreement.  The parties hereto acknowledge and agree that (a) this Agreement and the other Loan Documents, whether executed and delivered in connection herewith or otherwise, do not constitute a novation, payment and reborrowing, or termination of the rights, obligations and liabilities of the respective parties (including the Obligations) existing under the Original Credit Agreement as in effect prior to the Closing Date (except with respect to the Departing Lenders, except that the provisions of the Original Credit Agreement that by their express terms survive the termination of the Original Credit Agreement shall continue for the Departing Lenders) and (b) such obligations are in all respects continuing (as amended and restated hereby) with only the terms thereof being modified as provided in this Agreement.  Without limiting the generality of the foregoing (i) all Revolving Credit Loans, Term Loans, Swing Line Loans and Competitive Loans outstanding under the Original Credit Agreement shall on the Closing Date become Revolving Credit Loans, Term Loans, Swing Line Loans and Competitive Loans, as the case may be, hereunder, (ii) all Letters of Credit under the Original Credit Agreement shall on the Closing Date become Letters of Credit hereunder and (iii) all other Obligations outstanding under the Original Credit Agreement shall on the Closing Date be Obligations under this Agreement.

 

157

 

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

 

 

	
COMPANY:
    	
W.P. CAREY INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President   and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GUARANTORS:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
620   EIGHTH INVESTOR NYT (NY) QRS 16-150, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
AEROBIC   (MO) LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
PUMP   (MO) QRS 14-52, INC.,
    
	
 
    	
 
    	
a   Delaware corporation, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
AUTOPRESS (GER) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
METAL (GER) QRS 15-94, INC.,
    
	
 
    	
 
    	
a Delaware corporation, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
BBRANDS   (MULTI) QRS 16-137, Inc.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
BEVERAGE   (GER) QRS 16-141 LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
CRATE   (GER) QRS 16-142 LLC, a Delaware limited liability company, its Sole Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CPA16   German (DE) Limited Partnership,
    
	
 
    	
 
    	
a   Delaware limited partnership, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CPA16   German GP (DE) QRS 16-155, Inc.,
    
	
 
    	
 
    	
a   Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
BFS (DE) LP,
    
	
 
    	
a Delaware limited partnership
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
BFS (DE) QRS 14-74, INC.,
    
	
 
    	
 
    	
a Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
BOLT   (DE) LIMITED PARTNERSHIP,
    
	
 
    	
a   Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
BOLT   (DE) QRS 15-26, INC.,
    
	
 
    	
 
    	
a   Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BSL   CALDWELL (NC) LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
CPA   16 MERGER SUB INC., a Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
BST TORRANCE LANDLORD (CA) QRS 14-109, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CARDS   LIMITED LIABILITY COMPANY,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:   CARDS (CA) QRS 12-12, INC.,
    
	
 
    	
a   Delaware corporation, its Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CASTING   LANDLORD (GER) QRS 16-109, LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
CPA   16 German (DE) Limited Partnership,
    
	
 
    	
 
    	
a   Delaware limited partnership, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CPA16   German GP (DE) QRS 16-55, Inc.,
    
	
 
    	
 
    	
a   Delaware limited partnership, its General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
CBS (PA) QRS 14-12, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CPA   16 LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
CORPORATE   PROPERTY ASSOCIATES 16 – GLOBAL INCORPORATED, as its managing member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CPA   16 MERGER SUB INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CUPS   (DE) LP,
    
	
 
    	
a   Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
PLATES   (DE) QRS 14-63, INC., a Delaware corporation, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
DELAWARE   FRAME (TX), LP,
    
	
 
    	
a   Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
FRAME   (TX) QRS 14-25, INC., a Delaware corporation, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DEVELOP   (TX) LP,
    
	
 
    	
a   Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
POPCORN   (TX) QRS 14-43, INC., a Delaware corporation, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
IJOBBERS   LLC,
    
	
 
    	
a   Delaware limited liability
    
	
 
    	
 
    
	
 
    	
By:
    	
IJOBBERS   (DE) QRS 14-41, INC.,
    
	
 
    	
 
    	
a   Delaware corporation, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
JEN   (MA) QRS 12-54, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
LEI   (GER) QRS 16-134 LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
POLD   (GER) QRS 16-133, LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CPA16   GERMAN (DE) LIMITED PARTNERSHIP, a Delaware limited partnership, its Managing   Member
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CPA16   GERMAN GP (DE) QRS 16-155, Inc., a Delaware corporation, its General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LINCOLN   (DE) LP,
    
	
 
    	
a Delaware   limited partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
LTI   (DE) QRS 14-81, INC., a Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LONGBOOM   FINANCE (FINLAND) QRS 16-130, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice   President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

	
 
    	
LPD (CT) QRS 16-132, INC.,
    
	
 
    	
a Delaware   corporation
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice   President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MCM (TN) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
MCM MANAGER (TN) QRS 16-115, INC.,
    
	
 
    	
 
    	
a Delaware corporation, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MERI (NC) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
MERI(NC)MM QRS 14-98, INC.,
    
	
 
    	
 
    	
a Delaware corporation, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MIAP (MN) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
CPA 16 Merger Sub Inc.,
    
	
 
    	
 
    	
a Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
MK (MEXICO) QRS 16-48, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MORE   APPLIED UTAH (UT) LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
APPLIED UTAH (UT) QRS 14-76, INC.,
    
	
 
    	
 
    	
a Delaware corporation, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
NETWORK (UT) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
BANDWIDTH (UT) QRS 14-58, INC., its managing   member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PACPRESS (IL-MI) QRS 16-114, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
PARTS (DE) QRS 14-90, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PWE (MULTI) QRS 14-85, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
REYHOLD (DE) QRS 16-32, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
RI(CA) QRS 12-59, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
RRC (TX) LP,
    
	
 
    	
a Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
RRC (TX) GP QRS 12-61, INC.,
    
	
 
    	
 
    	
a Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SHO LANDLORD (FL) QRS   16-104, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SM (NY) QRS   14-93, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
STOR-MOVE UH 15 BUSINESS TRUST,
    
	
 
    	
a Massachusetts business trust
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Brooks Gordon
    	
 
    
	
 
    	
 
    	
Name: 
    	
Brooks Gordon
    
	
 
    	
 
    	
Title:
    	
Trustee
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
STOR-MOVE UH 16 BUSINESS TRUST,
    
	
 
    	
a Massachusetts business trust
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Brooks Gordon
    	
 
    
	
 
    	
 
    	
Name: 
    	
Brooks Gordon
    
	
 
    	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SUN TWO (SC) QRS 12-69, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TEL (VA) QRS 12-15, INC.,
    
	
 
    	
a Virginia corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
UK PANEL LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
PANEL (UK) QRS 14-54, INC.,
    
	
 
    	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
URSA (VT) QRS 12-30, INC.,
    
	
 
    	
a Vermont corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
WINDOUGH   (DE) LP,
    
	
 
    	
a   Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By:   DOUGH (DE) QRS 14-77, INC.,
    
	
 
    	
a   Delaware corporation, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
WINDOUGH LOT (DE) LP,
    
	
 
    	
a Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
Dough Lot (DE) QRS 14-110, Inc.,
    
	
 
    	
 
    	
a Delaware corporation, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
W.P.   CAREY INC.,
    
	
 
    	
a   Maryland corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
(CA)   CHC LP,
    
	
 
    	
a   Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
CITRUS   HEIGHTS (CA) GP, LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
308   ROUTE 38 LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
WPC   REIT MERGER SUB INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

	
 
    	
AUTO (FL) QRS 11-39, INC.,
    
	
 
    	
a Florida corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
AZO –   D L.P., a Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
AZO   Valet (DE) LLC, a Delaware limited
    
	
 
    	
 
    	
liability   company, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
AZO-A   L.P., a Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
AZO   DRIVER (DE) LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC., a Maryland
    
	
 
    	
 
    	
corporation,   its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
AZO-B L.P., a Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
AZO MECHANIC (DE) LLC,
    
	
 
    	
 
    	
a Delaware limited liability company,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY REIT II, INC.,
    
	
 
    	
 
    	
a Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
AZO-C   L.P., a Delaware Limited Partnership
    
	
 
    	
By: 
    	
AZO   NAVIGATOR (DE) LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
BOLDER   (CO) QRS 11-44, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
BROOMFIELD PROPERTIES CORP.,
    
	
 
    	
a Colorado corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CAREY   ASSET MANAGEMENT CORP.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CAREY   LODGING ADVISORS, LLC,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   ASSET MANAGEMENT CORP.,
    
	
 
    	
 
    	
Delaware   corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CAREY   STORAGE I (MA) LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
Carey   Storage Mezzanine I, LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Elizabeth   Raun Schlesinger
    	
 
    
	
 
    	
 
    	
Name:   
    	
Elizabeth   Raun Schlesinger
    
	
 
    	
 
    	
Title:
    	
Director
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
CAREY   STORAGE ASSET MANAGEMENT, LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Elizabeth   Raun Schlesinger
    	
 
    
	
 
    	
 
    	
Name:   
    	
Elizabeth   Raun Schlesinger
    
	
 
    	
 
    	
Title:
    	
Executive   Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CCARE(MULTI)   LIMITED PARTNERSHIP,
    
	
 
    	
a   Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
CCARE(MULTI)GP   QRS 11-60, INC.
    
	
 
    	
 
    	
a   Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CD   UP LP, a Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
BILL   CD LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
CORPORATE   PROPERTY ASSOCIATES, a Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   MANAGEMENT LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CORPORATE   PROPERTY ASSOCIATES 4 — A CALIFORNIA LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:
    	
CAREY   MANAGEMENT LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
CORPORATE   PROPERTY ASSOCIATES 6 – A CALIFORNIA LIMITED PARTNERSHIP
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
CAREY   MANAGEMENT LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CORPORATE   PROPERTY ASSOCIATES 9, L.P., A DELAWARE LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   MANAGEMENT LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DAN   (FL) QRS 15-7, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
DRAYTON   PLAINS (MI), LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
FAUR WPC (OH) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
Corporate Property Associates 6 – a California
    
	
 
    	
 
    	
Limited Partnership, a California limited
    
	
 
    	
 
    	
partnership, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Carey Management LLC, a Delaware limited
    
	
 
    	
 
    	
liability company, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Carey REIT II, Inc., a Maryland corporation,
    
	
 
    	
 
    	
its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GRC-II   (TX) LIMITED PARTNERSHIP, a Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
GRC-II   (TX) QRS 15-80, INC., a Delaware
    
	
 
    	
 
    	
corporation,   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
LINDEN   (GER) LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
GEARBOX   (GER) QRS 15-95, INC.,
    
	
 
    	
 
    	
a   Delaware corporation, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LT   FITNESS (DE) QRS 15-53, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MBM-BEEF   (DE) QRS 15-18, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
METAL   (GER) QRS 15-94, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
MODULE   (DE) LIMITED PARTNERSHIP,
    
	
 
    	
a   Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
SUSPENSION   (DE) QRS 15-1, INC.,
    
	
 
    	
 
    	
a   Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
OPTICAL (CA) QRS 15-8, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
OX   (AL) LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
OX-GP   (AL) QRS 15-15, INC.,
    
	
 
    	
 
    	
a   Delaware corporation, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
PAPER   LIMITED LIABILITY COMPANY
    
	
 
    	
 
    
	
 
    	
By: 
    	
CORPORATE   PROPERTY ASSOCIATES 4,
    
	
 
    	
 
    	
A   CALIFORNIA LIMITED PARTNERSHIP,
    
	
 
    	
 
    	
a   California limited partnership, its Member
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   MANAGEMENT LLC,
    
	
 
    	
 
    	
a Delaware   limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
QRS 10-18 (FL) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY REIT II, INC.,
    
	
 
    	
 
    	
a Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
QS ARK (DE) QRS 15-38, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
ST(TX)   LP, a Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
ST(TX)GP   QRS 11-63, INC.,
    
	
 
    	
 
    	
a   Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TELEGRAPH (MO) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
TELEGRAPH MANAGER (MO) WPC, INC.,
    
	
 
    	
 
    	
a Delaware corporation, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
THREE   AIRCRAFT SEATS (DE) LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By: 
    	
THREE   CABIN SEATS (DE) LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
UH   STORAGE GP (DE) QRS 15-50, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
UNITECH (IL) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
LEARN (IL) QRS 11-53, INC.,
    
	
 
    	
 
    	
a Delaware corporation, its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
WADD-II   (TN) LP,
    
	
 
    	
a   Delaware Limited Partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
WADD-II   General Partner (TN)
    
	
 
    	
 
    	
QRS   15-19, INC., a Delaware corporation,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
WALS   (IN) LLC, a Delaware
    
	
 
    	
 
    
	
 
    	
By: 
    	
CAREY   REIT II, INC.,
    
	
 
    	
 
    	
a   Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
WPC CROWN COLONY (MA) LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
CAREY REIT II, INC.,
    
	
 
    	
 
    	
a Maryland corporation, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff Zomback
    	
 
    
	
 
    	
 
    	
Name: 
    	
Jeff Zomback
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Treasurer
    
					

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
HUM   (DE) QRS 11-45, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeff   Zomback
    	
 
    
	
 
    	
 
    	
Name:  Jeff Zomback
    
	
 
    	
 
    	
Title:      Senior Vice President and Treasurer
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
BANK OF AMERICA,   N.A., as
    
	
 
    	
Administrative   Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anthea Del   Bianco
    	
 
    
	
 
    	
Name:  Anthea Del Bianco
    
	
 
    	
Title:    Vice President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
BANK OF AMERICA,   N.A., as a Lender, L/C 
   Issuer and Swing Line Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael J.   Kauffman
    	
 
    
	
 
    	
Name:  Michael J. Kauffman
    
	
 
    	
Title:    Vice President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
JPMORGAN CHASE BANK,   N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William E.   Schaehet
    	
 
    
	
 
    	
Name:  William E. Schaehet
    
	
 
    	
Title:    Credit Executive
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
BARCLAYS BANK   PLC, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Noam Azachi
    	
 
    
	
 
    	
Name:  Noam Azachi
    
	
 
    	
Title:    Vice President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
CITIBANK, N.A.,   as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John C.   Rowland
    	
 
    
	
 
    	
Name:  John C. Rowland
    
	
 
    	
Title:  Vice President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
U.S. BANK   NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David W.   Heller
    	
 
    
	
 
    	
Name:   David W. Heller
    
	
 
    	
Title:     Senior Vice President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
WELLS FARGO   BANK, NATIONAL 
   ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sean Armah
    	
 
    
	
 
    	
Name:  Sean Armah
    
	
 
    	
Title:    Vice-President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
CAPITAL ONE,   NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Frederick H.   Denecke
    	
 
    
	
 
    	
Name:  Frederick H. Denecke
    
	
 
    	
Title:    Senior Vice President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
REGIONS BANK, as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nicholas   Freeman
    	
 
    
	
 
    	
Name: Nicholas   Freeman
    
	
 
    	
Title:   AVP
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

	
 
    	
FIFTH THIRD   BANK, AN OHIO BANKING CORPORATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Caszy Gzhing
    	
 
    
	
 
    	
Name:  Caszy Gzhing
    
	
 
    	
Title:    Vice President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
PNC BANK   NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian P.   Kelly
    	
 
    
	
 
    	
Name:  Brian P. Kelly
    
	
 
    	
Title:    Senior Vice President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
RBS CITIZENS,   N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Don Woods
    	
 
    
	
 
    	
Name:   Don Woods
    
	
 
    	
Title:     SVP
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
COMERICA BANK,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles   Weddell
    	
 
    
	
 
    	
Name:  Charles Weddell
    
	
 
    	
Title:    Vice   President
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
BMO HARRIS BANK   N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Aaron Lanski
    	
 
    
	
 
    	
Name:  Aaron Lanski
    
	
 
    	
Title:    Managing Director
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

	
 
    	
SIGNATURE BANK,   as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard Assaf
    	
 
    
	
 
    	
Name:  Richard Assaf
    
	
 
    	
Title:    Senior Leader/VP
    

 

[Signature Page to Second Amended and Restated Credit Agreement]

	
  

  	
  Schedule 1.01 -
  Managed REITs Name of Managed REIT Type of Organization State of formation
  CAREY WATERMARK INVESTORS INCORPORATED Corporation Maryland CORPORATE
  PROPERTY ASSOCIATES 17-GLOBAL INCORPORATED Corporation Maryland CORPORATE
  PROPERTY ASSOCIATES 18-GLOBAL INCORPORATED Corporation Maryland

  

 

	
  

  	
  SCHEDULE
  1.01(B) Letter of Credit Issuer Face Amount Bank of America $750,000 Bank of
  America $995,000

  

 

 

	
  

  	
  Schedule
  5.11(d) - Existing Pension Plans None

  

 

	
  

  	
  SCHEDULE
  5.12(a) Borrower: W.P. Carey Inc. * Subsidiaries: (* Indicates a Guarantor
  (also in Bold)) (CA) ADS, LLC (CA) CHC LP * 24 HR-TX (MD) Business Trust 24
  HR-TX (TX) Limited Partnership 24 HR-TX GP (TX) QRS 12-66, Inc. 308 ROUTE 38
  LLC* ACT (GER) QRS 15-58, Inc. ADS2 (CA) QRS 11-41, Inc. ADVA 15 (GA) LLC
  ADV-QRS 15 (GA) QRS 15-4, Inc. AMLN (CA) QRS 14-107, Inc. AMLN Landlord LLC
  AMLN Member (CA) QRS 14-108, Inc., AMPD (DE) Limited Partnership* AMPD GP
  (DE) QRS 15-35, Inc AMPD LP (DE) Trust ANT-LM LLC Asiainvest LLC Auto (FL)
  QRS 11-39, Inc.* AW WPC (KY) LLC AZO Driver (DE) LLC AZO Mechanic (DE) LLC
  AZO Navigator (DE) LLC AZO Valet (DE) LLC AZO–A L.P.* 

  

 

	
  

  	
  AZO–B L.P.*
  AZO–C L.P.* AZO–D L.P.* BBA-1 Sarl BBA-2 Sarl Beaver MM (POL) QRS 15-86, Inc.
  Belgov (DE) QRS 15-66, Inc. Bill CD LLC BN (CT) QRS 11-57, Inc. BN(MA) QRS
  11-58, Inc. Bolder (CO) QRS 11-44, Inc.* BOLT (DE) QRS 15-26, INC. BOLT (DE)
  TRUST Bone (DE) LLC Bone (DE) QRS 15-12, Inc. Bone Manager, Inc. BOS CLUB LL
  (MA) LLC* BOS CLUB MANAGER (MA) QRS 15-93, INC. Brassington Limited Brelade Holdings Limited BROOMFIELD PROPERTIES CORP.* BRY-PL (DE) Limited
  Partnership BRY-PL (MD) Trust BRY-PL
  GP (DE) QRS 15-57, Inc. Build
  (CA) QRS 12-24, Inc. Call LLC Carey Asset Management Corp.* Carey Financial
  LLC CAREY LODGING ADVISORS, LLC*

  

 

	
  

  	
  Carey
  Management LLC Carey Norcross, LLC Carey REIT II, Inc. Carey Self Storage
  Participation LLC Carey Self-Storage REIT LLC Carey Storage Asset Management
  LLC* CAREY STORAGE I (MA ) LLC* Carey Storage Management LLC Carey Storage
  Member LLC CAREY STORAGE MEZZANINE I, LLC CAREY/HUSREF IV SELF STORAGE
  HOLDINGS, LLC Carlog 1 Sarl Carlog 2 Sarl Carlog SCI CCARE(MULTI) GP QRS
  11-60, Inc. CCARE(MULTI) Limited Partnership* CCARE(MULTI)LP QRS 9-1, Inc. CD
  UP LP* CDC Paying Agent LLC Chkfree WPC Member (GA) LLC CIP Acquisition
  Incorporated Citrus Heights (CA) GP, LLC Comquest West (AZ) 11-68, Inc.
  Consys-9 (SC) LLC Containers (DE) Limited Partnership Containers (DE) QRS
  15-36, Inc. Corporate Property Associates 15 Incorporated Corporate Property
  Associates 4, a California Limited Partnership* Corporate Property Associates
  6 – a California limited partnership* 

  

 

	
  

  	
  Corporate
  Property Associates 9, L.P., a Delaware limited partnership* Corporate
  Property Associates* CPA 15 Merger Sub Inc. CPA Paper, Inc. Dan (FL) QRS
  15-7, Inc.* Dcneth Member (NL) QRS 15-102, Inc. Delaware Chip, LLC Deliver
  (TN) QRS 14-49, Inc. DELMO (DE) QRS 11/12-1 INC. DELMO (PA) QRS 11-36 DELMO
  11/12 (DE) LLC Dfence (Belgium) 15 Sprl (Belgium) Dfence (Belgium) 15&16
  Sprl Dfend 15 LLC DIY Poland Sp. Z.o.o DP WPC (TX) LLC DRAYTON PLAINS (MI),
  LLC* Drill GmbH and Co. KG DSG (IN) QRS 15-44, Inc. Energy (NJ) QRS 15-10,
  Inc. Engines (GER) QRS 15-90, Inc. EROS (ESP) CR QRS INC. Eros II Spain 17-16
  B.V. Faur WPC (OH) LLC* Finit (FI) LLC Fit (CO) QRS 15-59, Inc. Four World
  Landlord (GA) LLC Four World Manager (GA) LLC GAL III (IN) QRS 15-49, Inc. 

  

 

	
  

  	
  GAL III (NJ)
  QRS 15-45, Inc. GAL III (NY) QRS 15-48, Inc. Gearbox (GER) QRS 15-95, Inc.
  Goldyard, S.L. GRC (TX) Limited Partnership GRC (TX) QRS 15-47, Inc. GRC (TX)
  Trust GRC-II (TX) Limited Partnership* GRC-II (TX) QRS 15-80, Inc GRC-II (TX)
  Trust H2 INVESTOR (GER) QRS 15-91, INC HAMMER (DE) LP QRS 15-33, INC. HAMMER
  (DE) QRS 15-32, INC. Hibbett (AL) 11-41, Inc. Hum (DE) QRS 11-45, Inc. ICG
  (TX) LIMITED PARTNERSHIP ICG-GP (TX) QRS 15-3, INC. ICG-LP (TX) TRUST
  Ilkinvest SAS Jamesinvest Sprl JPCentre (TX) LLC Learn (IL) QRS 11-53, Inc.
  Linden (GER) LLC* LT Fitness (DE) QRS 15-53, Inc.* Master (DE) QRS 15-71,
  Inc. Mauritius International I LLC MBM-Beef (DE) QRS 15-18, Inc. * Mechanic
  (AZ) QRS 15-41, Inc. Medi (PA) Limited Partnership 

  

 

	
  

  	
  Medi (PA) QRS
  15-21, Inc. Medi (PA) Trust Metal (GER) QRS 15-94, Inc.* Micro (CA) QRS
  11-43, Inc. MM (UT) QRS 11-59, Inc. Module (DE) Limited Partnership* Mons
  (DE) QRS 15-68, Inc. NEOSERV (CO) QRS 10-13, Inc. NEOSERV (CO) QRS 11-8, Inc.
  Nor (GA) QRS 14-17, Inc. Olimpia Investment Sp. Z o.o. Optical (CA) QRS 15-8,
  Inc. * Overtape (CA) QRS 15-14, Inc. OX (AL) LLC* OX-GP (AL) QRS 15-15, Inc.
  PAPER LIMITED LIABILITY COMPANY* Pem (MN) QRS 15-39, Inc. PENSACOLA STORAGE
  (FL) LLC Pensacola Storage Member (FL) LLC PET(TX) LP PET(TX) TRUST PET(TX)GP
  QRS 11-62, INC. Pilbara Investments Limited Plastic (DE) Limited Partnership
  Plastic (DE) QRS 15-56, Inc Plastic (DE) Trust Plex (WI) QRS 11-56, Inc. Plex
  Trust (MD) Plum (DE) QRS 15-67, Inc. 

  

 

	
  

  	
  Pohj Member
  (Finland) QRS 15-82, Inc. Pol (NC) QRS 15-25, Inc. Polkinvest Sprl QRS 10-1
  (ILL), Inc. QRS 10-18 (FL), LLC* QRS 11-2 (AR), LLC QRS 11-41 (AL) LLC QS Ark
  (DE) QRS 15-38, Inc.* Quest-US West (AZ) QRS 11-68, LLC Rails (UK) QRS 15-54,
  Inc. Randolph/Clinton Limited Partnership RII (CA) QRS 15-2, INC. Rush It LLC
  Salted Peanuts (LA) QRS 15-13, Inc. Scan (OR) QRS 11-47, Inc. Schobi
  (Ger-Pol) LLC SF(TX) LP SF(TX) Trust SF(TX)GP QRS 11-61, Inc. SFC (TN) QRS
  11-21, Inc. SHAQ (DE) QRS 15-75, INC. Spec (CA) QRS 12-20, Inc.* ST(TX) LP*
  ST(TX) Trust ST(TX)GP QRS 11-63, Inc. SUNNY CHIP 15 LLC Suspension (DE) QRS
  15-1, Inc. Telegraph (MO) LLC* Telegraph Manager (MO) WPC Inc. 

  

 

	
  

  	
  Three Aircraft
  Seats (DE) Limited Partnership* Three Cabin Seats (DE) LLC Tito (FI) QRS
  15-81, Inc. Tours Invest SAS Toys (NE) QRS 15-74, Inc. UH STORAGE (DE)
  LIMITED PARTNERSHIP UH STORAGE GP (DE) QRS 15-50, INC.* Uni-Tech (CA) QRS
  15-64, Inc. UniTech (IL) LLC* Uni-Tech (PA) QRS 15-51, Inc. Uni-Tech (PA) QRS
  15-63, Inc. Uni-Tech (PA) Trust Uni-Tech (PA), L.P. UP CD LLC Venice (CA) LP
  W. P. Carey & Co. Limited W. P. Carey International LLC W.P. Carey &
  Co B.V. W.P. Carey Equity Investment Management (Shanghai) Limited WADD-II
  (TN) LP* WADD-II General Partner (TN) QRS 15-19, Inc. WALS (IN) LLC* Weg
  (GER) QRS 15-83, Inc. Wegell Verwaltungs GmbH WGN 15 Holdco (GER) QRS 15-98,
  Inc. WGN 15 Member (GER) QRS 15-99, Inc. WGS (MULTI) LLC Wisco (WI) Limited Partnership
  Wolv (DE) Limited Partnership 

  

 

	
  

  	
  Wolv Trust
  World (DE) QRS 15-65, Inc. WP Carey Holdings LLC WPC CROWN COLONY (MA) LLC*
  WPC Holdco LLC WPC REIT Merger Sub Inc. WPCI Holdings I LLC WPCI Holdings II
  LLC WPCI Shanghai Rep Office Wrench (DE) Limited Partnership WRENCH (DE) QRS
  15-31, INC. WRENCH (DE) TRUST Zylinderblock (GER) LLC Miscellaneous
  Subsidiaries: 87th Street Storage (IL) LLC BEDFORD WPC STORAGE (IL) LLC BEST
  STORAGE (FL) LLC Carey HUSREF IV Storage Services, Inc. Carey Storage (DE) TRS
  16-155, INC. CAREY STORAGE ACES GP LLC CAREY STORAGE I (TX) BELTLINE LP CAREY
  STORAGE I (TX) TARRANT LP CAREY STORAGE I (CA) ROHNERT LLC CAREY STORAGE I
  (FL) BULL RUN LLC CAREY STORAGE I (GA) AMERISTOR LLC CAREY STORAGE I (OH)
  ARMOR LLC CAREY STORAGE I (TX) ACES LP CAREY STORAGE I(GA) STORE HOUSE LLC 

  

 

	
  

  	
  CAREY WATERMARK
  HOLDINGS, LLC CC(ILVA) Trust CLA Holdings LLC HARLEM WPC STORAGE (IL) LLC
  LINCOLNSHIRE WPC STORAGE (IL) LLC MAP INVEST 1 Sarl MAP INVEST 2 Sarl MAP
  INVEST SCI MAPI INVEST Sprl PULASKI WPC STORAGE (IL) LLC QS-DARWEN (UK)
  15-60, INC. STORAGE I (CT ) LLC TOTAL STORAGE (AR) LLC 

  

 

	
  

  	
  Former CPA: 16
  Subsidiaries: (* Indicates a Guarantor (also in Bold)) 620 Eighth Investor
  NYT (NY) QRS 16-150, Inc.* ACT Grundstücksverwaltungs GmbH & Co. KG ACT Grundstücksverwaltungs
  Management GmbH & Co. KG ADCIR (CO) QRS 16-60, Inc. ADCIR EXP (CO) LLC
  Aerobic (MO) LLC* AFD (MN) LLC AIR (IL) QRS 14-48, Inc. Alum (Alberta) ULC
  Alum (Canada) QRS 16-103, Inc. ALUSA (TX) DE Limited Partnership ALUSA-GP
  (TX) QRS 16-72, Inc. ALUSA-LP (TX) QRS 16-73, Inc. Amtoll (NM) QRS 14-39,
  Inc. Applied Four (DE) QRS 14-75, Inc. Applied Utah (UT) QRS 14-76, Inc.
  Assembly (MD) Autopress (GER) LLC* Autosafe Airbag 14 (CA) LP Bandwidth (UT)
  QRS 14-58, Inc. BBA I SARL BBA II EURL Bbrands (Multi) QRS 16-137, Inc.* BDF
  (CT) QRS 16-82, Inc. Beverage (GER) QRS 16-141, Inc.* BFS (DE) LP* 

  

 

	
  

  	
  BFS (DE) QRS
  14-74, Inc. Bill-GP (TX) QRS 14-56, Inc. Blocks (GER) QRS 16-89, Inc. BM-LP
  (TX) QRS 14-57, Inc. BOBS (CT) QRS 16-25, Inc. Bolt (DE) Limited Partnership*
  Borneo Agencies Ltd. Bplast 16 Manager (DE) QRS 16-129, Inc. Bplast 16 Member
  (DE) QRS 16-128, Inc. Bplast Two Manager (IN) QRS 16-152, Inc. Bplast Two
  Member (IN) QRS 16-151, Inc. Brelade Holdings Ltd. Brilliant 437 GMBH BSL
  Caldwell (NC) LLC* BST Torrance Landlord (CA) QRS 14-109, Inc.* BT (PA) QRS
  12-25, INC. BT-YORK (PA) Can (WI) QRS 12-34, Inc. Can-Two (DE) QRS 12-67,
  Inc. CAR-4 I SARL CAR-4 II SARL Car-4 SCI CARDS (CA) QRS 11-37, INC. Cards
  (CA) QRS 12-12, Inc. Cards Limited Liability Company* Carey 16 Lending Corp.
  CAREY STORAGE I (MA ) LLC 16 Business Trust Carey Watermark 1 LLC Casting
  Landlord (GER) QRS 16-109 LLC* 

  

 

	
  

  	
  Casting Member
  (GER) QRS 16-108 LLC CBS (PA) QRS 14-12, Inc.* Champion Edge SND BHD Chassis
  (DE) Limited Partnership Chassis (GER) QRS 16-118, Inc. CHS WKS (DE) QRS
  16-81, Inc. Clean (KY) LLC Clean (KY) QRS 16-22, Inc. Coco (WY) QRS 16-51,
  Inc. Coco-Dorm (PA) QRS 16-52, Inc. Coco-Dorm (PA) Trust Coco-Dorm (PA), LP
  Conductor (CA) QRS 14-11, Inc. Consys (SC) QRS 16-66, Inc. Container Finance
  (Finland) QRS 16-62, Inc. CP GAL (IN) QRS 16-61, Inc. CP GAL Fairfax, LLC CP
  GAL Kennesaw, LLC CP GAL Leawood, LLC CP GAL Lombard, LLC CPA 14 (UK) Finance
  Company CPA 14 Netherlands CV CPA 16 LLC* CPA 16 Merger Sub Inc.* CPA 16 Netherlands
  CV CPA16 German (DE) Limited Partnership CPA16 German GP (DE) QRS-155, Inc.
  Crate (GER) QRS 16-142, Inc. CRI (AZ-CO) QRS 16-4, Inc. 

  

 

	
  

  	
  Cups (DE) LP*
  CV GP (Dutch) QRS 14-111, Inc. CV GP (Dutch) QRS 16-148, Inc. Delaware Frame
  (TX), LP* Delmo (PA) QRS 12-10 (this is a PA Trust) DES-Tech (TN) Limited
  Partnership DES-Tech GP (TN) QRS 16-49, Inc. DES-Tech LP (TN) QRS 16-50, Inc.
  Develop (TX) LP* Dfence (Belgium) 15-16 Sprl Dfence (Belgium) 16 Sprl Dfend
  16 LLC DIY (Poland) Sp. Zoo Dough (DE) QRS 14-77, Inc. Dough (MD) Dough Lot
  (DE) QRS 14-110, Inc. Dough Lot (MD) Drill (DE) Trust Drill GmbH & Co. KG
  Drug (AZ) QRS 14-42, Inc. DSG GP (PA) QRS 14-103, Inc. DSG Landlord (PA) L.P.
  DSG LP (PA) Trust Dyne (DE) LP ELL (GER) QRS 16-37, Inc. Erwin Specht GmbH &
  Co. KG Erwin Specht Verwactungs GmbH Fabric (DE) GP Fast (DE) QRS 14-22, Inc.
  

  

 

	
  

  	
  Film (FL) QRS
  14-44, Inc. Finistar (CA-TX) Limited Partnership Finistar GP (CA-TX) QRS
  16-21, Inc. Finistar LP (DE) QRS 16-29, Inc. Finit (FL) LLC Fit (TX) GP QRS
  12-60, Inc. Fit (TX) LP Fit (TX) Trust Fit (UT) QRS 14-92, Inc. Food (DE) QRS
  12-49, Inc. Foss (NH) QRS 16-3, Inc. Frame (TX) QRS 14-25, Inc. Freight (IL)
  LLC FRO 16 (NC) LLC GB-ACT (GER) Limited Partnership GERB TOLLAND QRS (CT) 16
  Inc. Greens (Finland) QRS 16-14, Inc. Greens Shareholder (Finland) QRS 16-16,
  Inc. Guitar Mass (TN) QRS 14-36, Inc. Guitar Plus (TN) QRS 14-37, Inc. H2
  Investor (GER) QRS 16-100, Inc. Hammer (DE) Limited Partnership Hammer (DE)
  LP QRS 12-65, Inc. Hammer (DE) LP QRS 14-100, Inc. Hammer (DE) Trust HEF
  (NC-SC) QRS 14-86, Inc. HELLWEG GmbH & Co. Vermogensverwaltungs KG HLWG B
  NOTE PURCHASER (DE) LLC HLWG Two (GER) LLC 

  

 

	
  

  	
  HM Benefits
  (MI) QRS 16-18, Inc. Hoe Management GmbH Hotel (MN) QRS 16-84, Inc. Hotel
  Operator (MN) TRS 16-87, Inc. Huntwood (TX) Limited Partnership Huntwood (TX)
  QRS 16-8, Inc. Ice (TX) QRS 12-29, Inc. Ijobbers (DE) QRS 14-41, Inc.
  Ijobbers LLC* Image (NY) QRS 16-67, Inc. Jen (MA) QRS 12-54, Inc.* Kiinteisto
  Oy Tietoie 6 Kiinteisto Oy Tietokilo 1-2 KPH (UK) QRS 16-42, Inc. KSM
  Cresskill (NJ) QRS 16-80, Inc. KSM Livingston (NJ) QRS 16-76, INC. KSM
  Maplewood (NJ) QRS 16-77, INC. KSM Montclair (NJ) QRS 16-78, INC. KSM
  Morristown (NJ) QRS 16-79, INC. KSM Summit (NJ) QRS 16-75, Inc. Labels-Ben
  (DE) QRS 16-28, Inc. Labrador (AZ) LP Leather (DE) QRS 14-72, Inc. Lei (GER)
  QRS 16-134 LLC* Lincoln (DE) LP* Longboom (Finland) QRS 16-131, Inc. Longboom
  Finance (Finland) QRS 16-130, Inc.* Longboom Landlord (Finland) LLC LPD (CT)
  QRS 16-132, Inc.* 

  

 

	
  

  	
  LPORT (WA-TX)
  QRS 16-92, Inc. LPORT 2 (WA) QRS 16-147, Inc. LTI (DE) QRS 14-81, Inc. LTI
  Trust (MD) Mag-Info (SC) QRS 16-74, Inc. MAGS (UK) QRS 16-2, INC. Mala-IDS
  (DE) QRS 16-71, Inc. MCM (TN) LLC* MCM Manager (TN) QRS 16-115, Inc. MCM
  Member (TN) QRS 16-116, Inc. Memphis Hotel Operator (TN) TRS 16-121, Inc.
  Memphis Hotel Owner (TN) QRS 16-122, Inc. Meri (NC) LLC* Meri (NC) MM QRS
  14-98, Inc. MET WST (UT) QRS 16-97, Inc. Metal (DE) QRS 14-67, Inc. Metaply
  (MI) LLC MIAP (MN) LLC* MK (Mexico) QRS 16-48, Inc.* MK (NY) Trust MK GP BEN
  (DE) QRS 16-45, Inc. MK Landlord (DE) Limited Partnership MK LP Ben (DE) QRS
  16-46, Inc. MK-Ben (DE) Limited Partnership MK-GP (DE) QRS 16-43, Inc. MK-LP
  (DE) QRS 16-44, Inc. MK-Nom (ONT) Inc. More Applied Four (DE) LLC More
  Applied Utah (UT) LLC* 

  

 

	
  

  	
  Movie (VA) QRS
  14-24, Inc. MPH (UK) QRS 16-41, Inc. Nail (DE) Trust Neonatal Finland, Inc.
  Network (UT) LLC* Nord (GA) QRS 16-98, Inc. Nord B Note (DE) QRS 16-126, Inc.
  NR (LA) QRS 14-95, Inc. Orb (MO) QRS 12-56, Inc. Pacpress (IL-MI) QRS 16-114,
  Inc.* Pallet (FRA) SARL Panel (UK) QRS 14-54, Inc. Parts (DE) QRS 14-90,
  Inc.* PF (GER) QRS 16-96 LLC PG (Multi-16) L.P. PG (Multi-16) QRS 16-7, Inc.
  PG (Multi-16) Trust PG Calgary (DE) Trust PG-Ben (CAN) QRS 16-9, Inc. PG-Nom
  Alberta, Inc. Pipes (UK) QRS 16-59, Inc. Plants (Sweden) QRS 16-13, Inc.
  Plants Shareholder (Sweden) QRS 16-15, Inc. Plastic II (IL) LLC Plastic II
  (IL) QRS 16-27, Inc. Plates (DE) QRS 14-63, Inc. Pliers (DE) Trust Pohj
  Landlord (Finland) LLC Pohj Managing Member (Finland) QRS 16-20, Inc. 

  

 

	
  

  	
  Pol-Beaver LLC
  Pold (GER) QRS 16-133 LLC Poly (Multi) Limited Partnership Poly GP (Multi)
  QRS 16-35, Inc. Poly LP (MD) Trust Popcorn (TX) QRS 14-43, Inc. Ports
  (Finland) LLC Ports (Finland) QRS 16-63, Inc. Primo (MS) QRS 16-94, Inc.
  Print (WI) QRS 12-40, Inc. Prints (UK) QRS 16-1, Inc. Projector (FL) QRS
  14-45, Inc. Provo (UT) QRS 16-85, Inc. Pump (MO) QRS 14-52, Inc. PWE (Multi)
  QRS 14-85, Inc.* QRS 12-Paying Agent, Inc. QRS 14-Paying Agent, Inc. QRS
  16-Global Paying Agent, Inc. Rad-Mon (VA-IN) LLC Reyhold (DE) QRS 16-32,
  Inc.* RI (CA) QRS 12-59, INC.* RI(CA) QRS 12-59, Inc. RRC (TX) GP QRS 12-61,
  Inc. RRC (TX) LP* RRC (TX) Trust Rubbertex (TX) QRS 16-68, Inc. Sealtex (DE)
  QRS 16-69, Inc. Semi (CA) QRS 12-45, Inc. SFCO (GA) QRS 16-127, Inc. 

  

 

	
  

  	
  Shep (KS-OK)
  QRS 16-113, Inc. SHO Landlord (FL) QRS 16-104, Inc.* Shovel Management GmbH
  SM (NY) QRS 14-93, Inc.* South East Asia Pacific Holdings Ltd. Speed (NC) QRS
  14-70, Inc. Steels (UK) QRS 16-58, Inc. Stor-Move UH 15 Business Trust*
  Stor-Move UH 16 Business Trust* Sun (SC) QRS 12-68, Inc. Sun Two (SC) QRS
  12-69, Inc.* Sunny Chip 14 LLC Tech (GER) QRS 16-144, Inc. Teeth Finance
  (Finland) QRS 16-106, Inc. Teeth Landlord (Finland) LLC Teeth Member
  (Finland) QRS 16-107, Inc. Tel (VA) QRS 12-15, Inc.* Telc (NJ) QRS 16-30,
  Inc. Terrier (AZ) QRS 14-78, Inc. Tfarma (CO) QRS 16-93, Inc. Thal Dfence
  Conflans SCI Theatre (DE) QRS 14-14, Inc. Thids (DE) QRS 16-17, Inc. Thids 16
  Company Limited Tissue SARL Tito (FI) QRS 16-6, Inc. Toner (DE) QRS 14-96,
  Inc. Tower (DE) QRS 14-89, Inc. Tower 14 (MD) 

  

 

	
  

  	
  Trucks (France)
  SARL TR-VSS (MI) QRS 16-90. Inc. UK Panel LLC* Ursa (VT) QRS 12-30, Inc.*
  URubber (TX) Limited Partnership UTI-SAC (CA) QRS 16-34, Inc. Valves Germany
  (DE) QRS 16-64, Inc. Valves Member Germany (DE) QRS 16-65, Inc. Vinyl (DE)
  QRS 14-71, Inc. Wegell GmbH & Co. KG Windough (DE) LP* Windough Lot (DE)
  LP* WIRELESS (TX) LP Work (GER) QRS 16-117, Inc. XPD (NJ) LLC XPD Member (NJ)
  QRS 16-12, Inc. Miscellaneous Subsidiaries: CC (Multi) GP QRS 12-62, Inc. CC
  (Multi) Limited Partnership CC (Multi) Trust GERB (CT) QRS 14-73, Inc. H2
  Lender (GER) QRS 16-101, Inc. H2 Lender WPC LLC Hinck (DE) QRS 16-36, Inc.
  Hinck 15 LP (DE) QRS 15-84, Inc. Hinck 16 LP (DE) QRS 16-47, Inc. HLWG Two
  Lender Sarl HLWG Two TRS SARL 

  

 

	
  

  	
  NURSERY (WA) QRS
  16-135, INC. 

  

 

 

	
  

  	
  SCHEDULE
  5.12(b) W. P. CAREY INC. Entity Name Jurisdiction of Incorporation /
  Organization of Entity Entity Owner, Equity Interest and jurisdiction of
  Incorporation / Organization Intermediate Entity Owner and Ultimate Parent
  and Equity Interest Overall Investment Joint Venture Percentage Ownership
  Asiainvest LLC Delaware Individual Member(s) (7.69%) W.P. Carey Inc., a
  Maryland corporation (92.31%) N/A Individual Member(s) (7.69%) W.P. Carey
  Inc., a Maryland corporation (92.31%) Brassington Limited Hong Kong
  Asiainvest LLC, a Delaware limited liability company (100%) Asiainvest LLC is
  owned by W.P. Carey Inc., a Maryland corporation (92.31%) Individual
  Member(s) (7.69%) Individual Member(s) (7.69%) W.P. Carey Inc., a Maryland
  corporation (92.31%) Carey Asset Management Corp. Delaware W.P. Carey Inc., a
  Maryland corporation (100%) N/A N/A Carey Financial LLC Delaware Carey Asset
  Management Corp., a Delaware corporation (100%) Carey Asset Management Corp.
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A CAREY LODGING
  ADVISORS, LLC Delaware Carey Asset Management Corp., a Delaware corporation
  (100%) Carey Asset Management Corp. is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A Carey Watermark Holdings, LLC Delaware CW Advisors
  Holdings, LLC, a Delaware limited liability company (80%) Watermark Capital
  Partners, LLC (20%) CW Advisors Holdings, LLC is owned by Carey REIT II,
  Inc., a Maryland corporation (100%), which is owned by WPC REIT Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) W.P. Carey Inc. (80%) Watermark Capital
  Partners, LLC (20%)** Carey REIT II, Inc. Maryland WPC REIT Merger Sub Inc.,
  a WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Maryland corporation (100%) Carey Inc., a
  Maryland corporation (100%) W. P. Carey International LLC Delaware Individual
  Member(s) (7.69%) Carey Asset Management Corp., a Delaware corporation
  (92.31%) Carey Asset Management Corp. is owned by W.P. Carey Inc., a Maryland
  corporation (100%) Individual Member(s) (7.69%) W.P. Carey Inc., a Maryland
  corporation (92.31%) W. P. Carey & Co. Limited England W.P. Carey
  International LLC, a Delaware limited liability company (100%) W.P. Carey
  International LLC is owned by (i) Individual Member(s) (7.69%) and (ii) Carey
  Asset Management Corp., a Delaware corporation (92.31%) which is owned by
  W.P. Carey Inc., a Maryland corporation (approximately 100%) Individual
  Member(s) (7.69%) W.P. Carey Inc., a Maryland corporation (92.31%) WP Carey
  Holdings LLC Delaware WPCI Holdings I LLC (50% International) Carey REIT II,
  Inc., a Maryland corporation (50% International, 100% Domestic) WPCI Holdings
  I LLC is owned by Carey REIT II, Inc., a Maryland corporation (92.31%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A as to Domestic
  Individual Member(s) (7.69%) (as to International) W.P. Carey Inc., a
  Maryland corporation (92.31%) (as to International) WPCI Holdings I LLC
  Delaware Carey REIT II, Inc., a Maryland corporation (92.31%) Individual
  Member(s) (7.69%) Carey REIT II, Inc. is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) Individual Member(s) (7.69%) W.P. Carey Inc., a
  Maryland corporation (92.31%) WPCI Holdings II LLC Delaware W.P. Carey Inc.,
  a Maryland corporation (92.31%) Individual Member(s) (7.69%) N/A Individual
  Member(s) (7.69%) W.P. Carey Inc., a Maryland corporation (92.31%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership W.P. Carey & Co B.V. Netherlands W.P. Carey
  Inc., a Maryland corporation (50.00%) WPCI Holdings II LLC, a Delaware
  limited liability company (50.00%) WPCI Holdings II LLC is owned by W.P.
  Carey Inc., a Maryland corporation (92.31%) and Individual Member(s) (7.69%)
  Individual Member(s) (approximately 3.845%) W.P. Carey Inc., a Maryland
  corporation (approximately 96.155%) W.P. Carey Equity Investment Management (Shanghai)
  Limited Shanghai Brassington Limited, a Hong Kong company (100%) Brassington
  Limited is owned by Asiainvest LLC, a Delaware limited liability company
  (100%), which is owned by W.P. Carey Inc. (92.31%) and individual Member(s)
  (7.69%) Individual Member(s) (7.69%) W.P. Carey Inc., a Maryland corporation
  (92.31%) WPCI Shanghai Rep Office N/A – representative Shanghai office W.P.
  Carey International LLC, a Delaware limited liability company (100%) W.P.
  Carey International LLC is owned by (i) Individual Member(s) (7.69%) and (ii)
  Carey Asset Management Corp., a Delaware corporation (92.31%) which is owned
  by W.P. Carey Inc., a Maryland corporation (approximately 100%) Individual
  Member(s) (7.69%) W.P. Carey Inc., a Maryland corporation (92.31%) 24 HR-TX
  (TX) Limited Partnership (24 Hour Fitness (Sports & Fitness)) Delaware 24
  HR-TX GP (TX) QRS 12- 66, Inc., a Delaware corporation (.1% (general
  partner)) 24 HR-TX (MD) Business Trust, a Maryland business trust (99.9%) 24
  HR-TX GP (TX) QRS 12-66, Inc. and 24 HR-TX (MD) Business Trust are owned by
  Carey REIT II, Inc., a Maryland corporation (100%), which is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) N/A 308 ROUTE 38 LLC (Pioneer
  Credit Recovery/Lincoln Technical Institute (Cendant)) Delaware WPC REIT
  Merger Sub Inc., a Maryland corporation (100%) WPC REIT Merger Sub Inc. is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A 620 Eighth NYT
  (NY) Limited Partnership Delaware 620 Eighth GP NYT (NY) LLC, a Delaware
  limited liability company (55% (general 620 Eighth GP NYT (NY) LLC is owned
  by CPA: 17 Limited Partnership, a Delaware limited partnership (99%), which
  is owned by Corporate Property Associates 17- Global Incorporated, a Maryland
  corporation Corporate Property Associates 17 – Global Incorporated 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (NY Times Building) partner)) 620 Eighth
  Investor NYT (NY) QRS 16-150, Inc., a Delaware corporation (27.25%) Carey
  REIT II, Inc., a Maryland corporation (17.75%) (99.985%; general partner) and
  W. P. Carey Holdings LLC, a Delaware limited liability company (.015%). W.P.
  Carey Holdings LLC is owned by Carey REIT II Inc., a Maryland corporation
  (50%) and WPCI Holdings I LLC (50%). WPCI Holdings I LLC is owned by Carey
  REIT II Inc. (92.31%) and WPCI Minority Shareholders Carey REIT II, Inc., a
  Maryland corporation (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) 620 Eighth Investor NYT (NY) QRS 16-150, Inc. is
  owned by CPA 16 Merger Sub, Inc., a Maryland corporation (50%), which is
  owned by CPA 16 LLC, a Delaware limited liability company (100%), which is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%). WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%).
  (approximately 55%) W.P. Carey Inc. (approximately 43%) ACT
  Grundstücksverwaltungs GmbH & Co. KG (Actuant) ACT Grundstücksverwaltungs
  Management GmbH & Co. KG(1% (general partner)) ACT (GER) QRS 15-58, Inc.,
  a Delaware corporation) (.1%) GB-ACT (GER) Limited Partnership, a Delaware
  limited partnership (98.9%) ACT Grundstücksverwaltungs Management GmbH is owned
  by GB-ACT (GER) Limited Partnership GB-ACT (GER) Limited Partnership is owned
  by (i) ACT (GER) QRS 15- 58, Inc. (.01% (general partner)), which is owned by
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%),
  which is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%),
  (ii) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED (49.99%) and (iii) CPA 16
  Merger Sub, Inc., a Maryland corporation (50%), which is owned by CPA 16 LLC,
  a Delaware limited liability company (100%), which is owned by WPC REIT
  Merger Sub Inc., a Maryland corporation (1000% ). WPC REIT Merger Sub Inc. is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A ADS2 (CA) QRS
  11-41, Inc. (Omnicom) California CIP Acquisition Incorporated, a Maryland
  corporation (100%) CIP Acquisition Incorporated is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is
  owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation. ADVA 15 (GA) LLC (Arch Chemicals,
  Inc./Advantis Technologies) Delaware ADV-QRS 15 (GA) QRS 15-4, Inc., a
  Delaware corporation (100%) ADV-QRS 15 (GA) QRS 15-4, Inc. is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is
  owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A AFD (MN) LLC
  (McLane) Delaware FOOD (DE) QRS 12-49 INC., a Delaware corporation (40%) FAST
  (DE) QRS 14-22, INC., a Delaware corporation (60%) FOOD (DE) QRS 12-49 INC.
  and FAST (DE) QRS 14-22, INC. are owned by CPA 16 Merger Sub Inc. (100%),
  which is owned by CPA 16 LLC, a Delaware limited liability company (100%),
  which is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%).
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A AMLN Landlord LLC (Teva/Amylin) Delaware AMLN (CA) QRS
  14-107, Inc., a Delaware corporation (49%) AMLN Member (CA) QRS 14- 108,
  Inc., a Delaware corporation (1%; managing member) W.P. Carey Inc., a
  Maryland corporation (50%) AMLN (CA) QRS 14-107, Inc. and AMLN Member (CA)
  QRS 14-108, Inc. are owned by Carey REIT II, Inc., a Maryland corporation
  (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A AMPD (DE) Limited Partnership (American Pad and Paper) Delaware
  AMPD GP (DE) QRS 15-35, Inc., a Delaware corporation (.1% (general partner))
  AMPD LP (DE) Trust, a Maryland business trust (99.9%) AMPD GP (DE) QRS 15-35,
  Inc. and AMPD LP (DE) Trust are owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A ANT-LM LLC (Orbital Sciences Corp.)
  Delaware Corporate Property Associates 9, L.P., a Delaware limited
  partnership (100%) Corporate Property Associates 9, L.P. is owned by Carey
  Management LLC, a Delaware limited liability company (7.67%; general partner)
  and Carey REIT II, Inc., a Maryland corporation (92.33%; limited partner).
  Carey Management LLC is owned by Carey REIT II, Inc. (100%), which is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) ANTH Campus (CA) LLC (Anthony Holdings)
  Delaware Corporate Property Associates 6 - a California limited partnership
  (100%) Corporate Property Associates 6 - a California limited partnership is owned
  by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) Auto (FL) QRS 11-39, Inc. (Detroit Diesel Realty,
  Inc.) Florida CIP Acquisition Incorporated, a Maryland corporation (100%) CIP
  Acquisition Incorporated is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation. N/A Autopress (GER) LLC (67%) and Jamesinvest Sprl
  (33%) (as tenants in common) (Schuler Tic) Autopress (GER) LLC: Delaware
  Jamesinvest Sprl: Belgium Autopress (GER) LLC is owned by (i) Work (GER) QRS
  16-117, Inc., a Delaware corporation (49.75%; limited partner) and (ii) Metal
  (GER) QRS 15-94, Inc., a Delaware corporation (50.25%; general partner)
  Jamesinvest Sprl is owned by Polkinvest Sprl, a Belgian company (100%) Work
  (GER) QRS 16-117, Inc. is owned by CPA 16 Merger Sub, Inc., a Maryland
  corporation (100%), which is owned by CPA 16 LLC, a Delaware limited liability
  company (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) Metal (GER) QRS 15-94, Inc. is owned by owned
  by CPA 15 INCORPORATED, a Maryland corporation (100%), which is owned by CPA
  15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) Polkinvest Sprl is owned by
  (i) Carey REIT II, Inc., a Maryland corporation (approximately 21,819
  shares), which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) and (ii) W.P. Carey & Co., Inc., a Delaware corporation (1 share)
  W.P. Carey Inc.(approximately 99.9999%) W.P. Carey & Co., Inc.
  (approximately .0001%) AW WPC (KY) LLC (Alstom Power, Inc. & Delaware
  Corporate Property Associates 9, L.P., a Delaware limited Corporate Property
  Associates 9, L.P. is owned by Carey Management LLC, a Delaware limited
  liability company (7.67%; general partner) and N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership United States Playing Card Company (Gap &
  Werner)) partnership (100%) Carey REIT II, Inc., a Maryland corporation
  (92.33%; limited partner) Carey Management LLC is owned by Carey REIT II,
  Inc., a Maryland corporation (100%), which is owned by WPC REIT Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) AZO–A L.P. (Autozone, Inc. A) Delaware AZO
  Driver (DE) LLC, a Delaware limited liability company (.01%; general partner)
  Corporate Property Associates 6 - a California limited partnership (99.99%)
  AZO Driver (DE) LLC is owned by Carey REIT II, Inc., a Maryland corporation
  (100%). Corporate Property Associates 6 - a California limited partnership is
  owned by (i) Carey Management LLC, a Delaware limited liability company (5%;
  general partner), which is owned by Carey REIT II, Inc. (100%) and (ii) Carey
  REIT II, Inc. (95%; limited partner), which is owned by WPC REIT Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%). N/A AZO–B L.P. (Autozone, Inc. B) Delaware AZO
  Mechanic (DE) LLC, a Delaware limited liability company (.01%; general
  partner) Corporate Property Associates 6 - a California limited partnership
  (99.99%) AZO Mechanic (DE) LLC is owned by Carey REIT II, Inc., a Maryland
  corporation (100%). Corporate Property Associates 6 - a California limited
  partnership is owned by (i) Carey Management LLC, a Delaware limited
  liability company (5%; general partner), which is owned by Carey REIT II,
  Inc. (100%) and (ii) Carey REIT II, Inc. (95%; limited partner), which is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A AZO – C L.P.
  (Autozone, Inc. C I – Fee Owner) Delaware AZO Navigator (DE) LLC, a Delaware
  limited liability company (.01%; general partner) Corporate Property
  Associates 6 - a California limited partnership (99.99%) AZO Navigator (DE)
  LLC is owned by Carey REIT II, Inc., a Maryland corporation (100%). Corporate
  Property Associates 6 - a California limited partnership is owned by (i)
  Carey Management LLC, a Delaware limited liability company (5%; general
  partner), which is owned by Carey REIT II, Inc. (100%) and (ii) Carey REIT
  II, Inc. (95%; limited partner), which is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%). AZO – D L.P. (Autozone, Inc. D) Delaware
  AZO Valet (DE) LLC, a Delaware limited liability company (.01%; general
  partner) Corporate Property Associates 6 - a California limited partnership
  (99.99%) AZO Valet (DE) LLC is owned by Carey REIT II, Inc., a Maryland
  corporation (100%). Corporate Property Associates 6 - a California limited
  partnership is owned by (i) Carey Management LLC, a Delaware limited
  liability company (5%; general partner), which is owned by Carey REIT II,
  Inc. (100%) and (ii) Carey REIT II, Inc. (95%; limited partner), which is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A Belgov (DE)
  QRS 15-66, Inc. (Regie (Belgov)) Delaware Mons (DE) QRS 15-68, Inc., a
  Delaware corporation (100%) Mons (DE) QRS 15-68, Inc. is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is
  owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A BFS (DE) LP
  (Builders FirstSource (BFS)) Delaware CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (40%) CPA 16 Merger Sub Inc., a Maryland
  corporation (59.9%) BFS (DE) QRS 14-74, Inc., a Delaware Corporation (.1%
  (general partner)) BFS (DE) QRS 14-74, Inc. is owned by CPA 16 Merger Sub
  Inc. (100%), which is owned by CPA 16 LLC, a Delaware limited liability
  company (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED
  is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A BN (CT) 11-57,
  Inc. (B. Dalton Bookseller / Barnes & Noble) Delaware CIP Acquisition
  Incorporated, a Maryland corporation (100%) CIP Acquisition Incorporated is
  owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation. N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership BN(MA) QRS 11-58, Inc. (Barnes & Noble)
  Delaware CIP Acquisition Incorporated, a Maryland corporation (100%) CIP
  Acquisition Incorporated is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation. N/A Bolder (CO) QRS 11-44, Inc. (TPG IPB, Inc.
  (Cognitive Solutions) (Bolder/Northstar)) Delaware CIP Acquisition
  Incorporated, a Maryland corporation (100%) CIP Acquisition Incorporated is
  owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation. N/A Bolt (DE) Limited Partnership (Tru Value (Bolt)) Delaware
  NAIL (DE) TRUST, a Maryland business trust (15%) HAMMER (DE) TRUST, a
  Maryland business trust (35%) BOLT (DE) QRS 15-26, INC., a Delaware
  corporation (.5% (general partner)) BOLT (DE) TRUST, a Maryland business
  trust (49.5%) NAIL (DE) TRUST and HAMMER (DE) TRUST are each owned by CPA 16
  Merger Sub Inc., a Maryland corporation (100%), which is owned by CPA 16 LLC,
  a Delaware limited liability company (100%), which is owned by WPC REIT
  Merger Sub Inc., a Maryland corporation (100%). WPC REIT Merger Sub Inc. is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) BOLT (DE) QRS
  15-26, INC. and BOLT (DE) TRUST are each owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is owned by
  CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) N/A Bone (DE) QRS 15-12, Inc.
  (64%) and Bone (DE) LLC (36%) (tenants in common) (Hologic, Inc.) Delaware
  Bone (DE) QRS 15-12, Inc. is owned by Corporate Property Associates 15
  Incorporated, a Maryland corporation (100%) Bone (DE) LLC is owned by Bone
  Manager, Inc., a Delaware corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), is owned by CPA 15 Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) Bone Manager, Inc., a Delaware corporation
  (100%), is owned by Carey REIT II, Inc., a Maryland corporation (100%) which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%). 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership BROOMFIELD PROPERTIES CORP. (Broomfield)
  Colorado Corporate Property Associates, a California limited partnership
  (100%) Corporate Property Associates is owned by Carey Management LLC, a
  Delaware limited liability company (.9%; general partner) and Carey REIT II,
  Inc., a Maryland corporation (99.1%; limited partner). Carey Management LLC
  is owned by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%). N/A BRY-PL (DE) Limited Partnership (Berry
  Plastics) Delaware BRY-PL GP (DE) QRS 15-57, Inc., a Delaware corporation
  (.5% (general partner)) BRY-PL (MD) Trust, a Maryland business trust (99.5%)
  BRY-PL GP (DE) QRS 15-57, Inc. and BRY-PL (MD) Trust are owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is
  owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A (CA) CHC LP
  (Kmart Corporation) Delaware Citrus Heights (CA) GP, LLC, a Delaware limited
  liability company (1%; general partner) Carey REIT II, Inc., a Maryland
  corporation (99%) Citrus Heights (CA) GP, LLC is owned by Carey REIT II,
  Inc., which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%). N/A Call LLC (Sprint Spectrum, L.P.) Delaware Carey REIT II, Inc., a
  Maryland corporation (100%) Carey REIT II, Inc. is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%). N/A Carey Norcross, LLC (Checkfree) Delaware
  Chkfree WPC Member (GA) LLC, a Delaware limited liability company (50%;
  (manager) Nor (GA) QRS 14-17, Inc., a Georgia corporation (50%) Chkfree WPC Member
  (GA) LLC and Nor (GA) QRS 14-17, Inc. are owned by Carey REIT II, Inc.
  (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%). N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership CAREY STORAGE I (MA ) LLC Delaware Carey Storage
  Mezzanine I, LLC a Delaware limited liability company (100%) Carey Storage
  Mezzanine I, LLC is owned by Carey/HUSREF IV Self- Storage Holdings, LLC, a
  Delaware limited liability company (100%) Carey/HUSREF IV Self-Storage
  Holdings, LLC is owned by (i) Carey Storage Management LLC, a Delaware
  limited liability company (0% capital interest), (ii) HUSREF IV Self-Storage
  Investor LLC, a Delaware limited liability company (0% capital interest),
  (iii) Carey Self-Storage REIT LLC, a Delaware limited liability company (0%
  capital interest) which is owned by W.P. Carey Inc. (100%), (iv) Carey
  Storage Participation LLC, a Delaware limited liability company (75%) and (v)
  HUSREF IV Self-Storage Participation LLC, a Delaware limited liability
  company (25%) Carey Storage Participation LLC is owned by Carey REIT II,
  Inc., a Maryland corporation (100%), which is owned by WPC REIT Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) Carey Storage Management LLC is owned by Carey
  REIT II, Inc., a Maryland corporation (100%), which is owned by WPC REIT
  Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%) HUSREF IV Self-Storage Investor LLC
  and HUSREF IV Self-Storage Participation LLC are owned by HUSREF IV LP, a
  Delaware limited partnership HUSREF IV, LP (25%) W.P. Carey Inc. (75%) CARLOG
  SCI (Carrefour/Logidis) France CARLOG 2 SARL (50%) CARLOG 1 SARL (50%) CARLOG
  2 SARL and CARLOG 1 SARL are owned by MAPI INVEST SPRL (100%) which is owned
  by: (i) POLKINVEST Sprl (1,994 shares), which is owned by (A) Carey REIT II,
  Inc., a Maryland corporation (approximately 21,819 shares) which is owned by
  Carey REIT II, Inc., a Maryland corporation (100%), which is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) and (B) W.P. Carey & Co.,
  Inc., a Delaware corporation (1 share) ; W.P. Carey Inc. (approximately
  99.9899%) W.P. Carey & Co., Inc. (approximately .0001%) Mapinvest
  Delaware LLC (approximately .01%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (ii) Carey REIT II, Inc. (3,500 shares); (iii)
  MAPINVEST DELAWARE LLC (1 share); and (iv) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (6,499 shares), which is owned by CPA 15
  Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%) CCare(MULTI) Limited Partnership
  (Learning Care Group (Childtime Childcare, Inc.)) Delaware CCare(MULTI) GP
  QRS 11-60, Inc., a Delaware corporation (66.07% (general partner))
  CCare(MULTI) LP QRS 9-1, Inc., a Delaware corporation (33.93%) CCare(MULTI)
  GP QRS 11-60, Inc. is owned by CIP Acquisition Incorporated, a Maryland
  corporation (100%), which is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) CCare(MULTI) LP QRS 9-1, Inc. is owned by
  CORPORATE PROPERTY ASSOCIATES 9, L.P., A DELAWARE LIMITED PARTNERSHIP, a
  Delaware limited partnership (100%), which is owned by Carey Management LLC,
  a Delaware limited liability company (7.67%) and Carey Reit II, Inc.
  (92.33%). Carey Management LLC is owned by Carey Reit II, Inc. (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A CD UP LP
  (Century V (J.A. Billip Houston TX Portfolio)) Delaware Bill CD LLC, a
  Delaware limited liability company (.1%: general partner) UP CD LLC, a
  Delaware limited liability company (99.9%) Bill CD LLC and UP CD LLC are
  owned by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%). N/A Consys-9 (SC) LLC (60%) and Consys (SC)
  QRS 16- 66, Inc. (40%) (as tenants in common) (Consolidated Systems, Inc.)
  Delaware Consys-9 (SC) LLC, a Delaware limited liability company is owned by
  Corporate Property Associates 9, L.P., a Delaware limited partnership (100%)
  Consys (SC) QRS 16-66, Inc., Corporate Property Associates 9, L.P. is owned
  by (i) Carey Management LLC, a Delaware limited liability company (7.67%;
  general partner) which is owned by Carey REIT II, Inc., a Maryland
  corporation (100%) and (ii) Carey REIT II, Inc., a Maryland corporation
  (92.33%; limited partner), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership a Delaware limited liability company is owned by
  CPA 16 Merger Sub Inc., a Maryland corporation (100%) Carey Inc., a Maryland
  corporation (100%). CPA 16 Merger Sub Inc. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%), which is owned by WPC REIT
  Merger Sub Inc., a Maryland corporation (100%). WPC REIT Merger Sub Inc. is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) Containers (DE)
  Limited Partnership (Kerr Group/ Berry Plastics) Delaware Containers (DE) QRS
  15-36, Inc., a Delaware corporation (0.5% (general partner)) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (99.5%)
  Containers (DE) QRS 15-36, Inc. is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A Corporate Property Associates (Unisource
  Worldwide, Inc.) California Carey Management LLC, a Delaware limited
  liability company (.9%; general partner) Carey REIT II, Inc., a Maryland
  corporation (99.1%; limited partner) Carey Management LLC is owned by Carey
  REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%). N/A Corporate Property Associates 6 - a California
  limited partnership (BellSouth Telecommunications, Inc. (BellSouth
  Entertainment)) California Carey Management LLC, a Delaware limited liability
  company (5%; general partner) Carey REIT II, Inc., a Maryland corporation
  (95%; limited partner) Carey Management LLC is owned by Carey REIT II, Inc.
  (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%). N/A Corporate Property Associates 6 - a California limited
  partnership (Deloro Stellite Company, California Carey Management LLC, a
  Delaware limited liability company (5%; general partner) Carey REIT II, Inc.,
  a Maryland Carey Management LLC is owned by Carey REIT II, Inc. (100%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc.) corporation (95%; limited partner)
  corporation (100%). Corporate Property Associates 6 - a California limited
  partnership (Jada Toys & Swat-Fame, Inc. (Stoody Deloro Stellite))
  California Carey Management LLC, a Delaware limited liability company (5%;
  general partner) Carey REIT II, Inc., a Maryland corporation (95%; limited
  partner) Carey Management LLC is owned by Carey REIT II, Inc. (100%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A Corporate
  Property Associates 6 - a California limited partnership (Moran Foods d/b/a
  Save- A-Lot and Action Buys Cars Inc. (Winn Dixie)) California Carey
  Management LLC, a Delaware limited liability company (5%; general partner)
  Carey REIT II, Inc., a Maryland corporation (95%; limited partner) Carey
  Management LLC is owned by Carey REIT II, Inc. (100%), which is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%). N/A Corporate Property
  Associates 6 - a California limited partnership (S&ME, Inc. (Powerware))
  California Carey Management LLC, a Delaware limited liability company (5%; general
  partner) Carey REIT II, Inc., a Maryland corporation (95%; limited partner)
  Carey Management LLC is owned by Carey REIT II, Inc. (100%), which is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%), which is owned
  by W.P. Carey Inc., a Maryland corporation (100%). N/A Corporate Property
  Associates 6 - a California limited partnership (Tubular Metal Systems
  (Northern Tube Corporation)) California Carey Management LLC, a Delaware
  limited liability company (5%; general partner) Carey REIT II, Inc., a
  Maryland corporation (95%; limited partner) Carey Management LLC is owned by
  Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%). N/A Corporate Property Associates 9, L.P.
  (Autozone, Inc. C–II Leasehold) Delaware Carey Management LLC, a Delaware
  limited liability company (7.67%; general partner) Carey REIT II, Inc., a
  Maryland corporation (92.33%; limited Carey Management LLC is owned by Carey
  REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%). N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity Interest
  and jurisdiction of Incorporation / Organization Intermediate Entity Owner
  and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership partner) Corporate Property Associates 9, L.P. , a
  Delaware limited partnership (Candle Lamp Company) Delaware Carey Management
  LLC, a Delaware limited liability company (7.67%; general partner) Carey REIT
  II, Inc., a Maryland corporation (92.33%; limited partner) Carey Management
  LLC is owned by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%). N/A Corporate Property Associates 9, L.P. , a
  Delaware limited partnership (Federal Express Corporation – Corpus Christi)
  Delaware Carey Management LLC, a Delaware limited liability company (7.67%;
  general partner) Carey REIT II, Inc., a Maryland corporation (92.33%; limited
  partner) Carey Management LLC is owned by Carey REIT II, Inc. (100%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A Corporate
  Property Associates 9, L.P. , a Delaware limited partnership (Kenyon
  International Emergency Services ) Delaware Carey Management LLC, a Delaware
  limited liability company (7.67%; general partner) Carey REIT II, Inc., a
  Maryland corporation (92.33%; limited partner) Carey Management LLC is owned
  by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%). N/A Corporate Property Associates 9, L.P. , a
  Delaware limited partnership (Kerr Corporation (Sybron & Apogent))
  Delaware Carey Management LLC, a Delaware limited liability company (7.67%;
  general partner) Carey REIT II, Inc., a Maryland corporation (92.33%; limited
  partner) Carey Management LLC is owned by Carey REIT II, Inc. (100%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A Corporate
  Property Associates 9, L.P. , a Delaware limited Delaware Carey Management
  LLC, a Delaware limited liability company (7.67%; general Carey Management
  LLC is owned by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership partnership (NVR, Inc.) partner) Carey REIT II,
  Inc., a Maryland corporation (92.33%; limited partner) corporation (100%).
  Corporate Property Associates 9, L.P. , a Delaware limited partnership
  (Orbital Sciences Corp.) Delaware Carey Management LLC, a Delaware limited
  liability company (7.67%; general partner) Carey REIT II, Inc., a Maryland
  corporation (92.33%; limited partner) Carey Management LLC is owned by Carey
  REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%). N/A Corporate Property Associates 9, L.P., a Delaware
  limited partnership (Northern New England Telephone Operations LLC &
  Fairpoint Communications (Bell Atlantic Corporation/ Verizon) Delaware Carey
  Management LLC, a Delaware limited liability company (7.67%; general partner)
  Carey REIT II, Inc., a Maryland corporation (92.33%; limited partner) Carey
  Management LLC is owned by Carey REIT II, Inc. (100%), which is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%). N/A Corporate Property
  Associates 9, L.P., a Delaware limited partnership (Ormco Corporation
  (Sybron)) Delaware Carey Management LLC, a Delaware limited liability company
  (7.67%; general partner) Carey REIT II, Inc., a Maryland corporation (92.33%;
  limited partner) Carey Management LLC is owned by Carey REIT II, Inc. (100%),
  which is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%),
  which is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A
  Corporate Property Associates 9, L.P., a Delaware limited partnership (The SI
  Organization Delaware Carey Management LLC, a Delaware limited liability
  company (7.67%; general partner) Carey REIT II, Inc., a Maryland Carey
  Management LLC is owned by Carey REIT II, Inc. (100%), which is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%). N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (Lockheed Martin)) corporation (92.33%; limited
  partner) Corporate Property Associates 9, L.P., a Delaware limited
  partnership VACANT (Winn-Dixie Stores, Inc.) Delaware Carey Management LLC, a
  Delaware limited liability company (7.67%; general partner) Carey REIT II,
  Inc., a Maryland corporation (92.33%; limited partner) Carey Management LLC
  is owned by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%). N/A Dan (FL) QRS 15-7, Inc. (Danka Office
  Imaging Co. (KMBS Building)) Delaware CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A Dcneth Landlord (NL) LLC (approximately 15%) and WPC 17-19 BV
  (approximately 85%) (C1000) Netherlands Dcneth Landlord (NL) LLC is owned by
  Dcneth Member (NL) QRS 15-102, Inc. (100%) WPC 17-19 BV is owned by CPA 17
  Pan-European Holding Coop (100%) Dcneth Member (NL) QRS 15-102, Inc. is owned
  by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation
  (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%) CPA
  17 Pan-European Holding Coop is owned by (i) CPA 17 International Holding and
  Financing LLC, a Delaware limited partnership (1%), which is owned by CPA:17
  Limited Partnership, a Delaware limited partnership (100%) and (ii) CPA:17
  Limited Partnership (99%), which is owned by (a) Corporate Property
  Associates 17 – Global incorporated, a Maryland corporation (99.985%) and (b)
  W.P. Carey Holdings LLC, a Delaware limited liability company (.015%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%). Corporate
  Property Associates 17 – Global incorporated (approximately 84.99%) W. P.
  Carey Inc. (approximately 15.01%) DELMO (PA) QRS 11-36 and DELMO (PA) QRS 12-
  10 Pennsylvania DELMO (PA) QRS 12-10, a Pennsylvania business trust (50%), as
  tenant in common DELMO (PA) QRS 11-36, a Pennsylvania business trust DELMO
  (PA) QRS 11-36 is owned by CIP Acquisition Incorporated, a Maryland
  corporation (100%), which is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED,
  a Maryland corporation (100%), which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (Del Monte (Yakima)) (50%), as tenant in common
  Carey Inc., a Maryland corporation (100%) DELMO (PA) QRS 12-10 is owned by
  CPA 16 Merger Sub Inc., a Maryland corporation (100%), which is owned by CPA
  16 LLC, a Delaware limited liability company (100%), which is owned by WPC REIT
  Merger Sub Inc., a Maryland corporation (100%). WPC REIT Merger Sub Inc. is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) DELMO 11/12 (DE)
  LLC (Del Monte (Multi)) Delaware DELMO (PA) QRS 12-10, a Pennsylvania
  business trust (50%) DELMO (PA) QRS 11-36, a Pennsylvania business trust
  (49.5%) DELMO (DE) QRS 11/12-1 INC., a Delaware corporation (.5% (manager))
  DELMO (PA) QRS 11-36 and DELMO (DE) QRS 11/12-1, INC. are owned by CIP
  Acquisition Incorporated, a Maryland corporation (100%), which is owned by
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%),
  which is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%)
  DELMO (PA) QRS 12-10 is owned by CPA 16 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by CPA 16 LLC, a Delaware limited
  liability company (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A DIY Poland Sp. Z.o.o (OBI
  Poland) Poland Brelade Holdings Limited (Cyprus) (100%) Brelade Holdings
  Limited (Cyprus) is owned by Pol-Beaver LLC, a Delaware limited liability
  company (100%), which is owned by (i) CPA 16 Merger Sub, Inc., a Maryland
  corporation (25%), which is owned by CPA 16 LLC, a Delaware limited liability
  company (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%), (ii) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (75%) and (iii) Beaver MM (POL) QRS
  15-86, Inc., a Delware corporation (0% (sole manager)), which is owned by
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%),
  which is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) DP WPC (TX) LLC (American Bottling
  Company (Dr. Pepper Bottling Company of Texas)) Delaware Corporate Property
  Associates 9, L.P., a Delaware limited partnership (100%) Corporate Property
  Associates 9 is owned by Carey Management LLC, a Delaware limited liability
  company (7.67%; general partner) and Carey REIT II, Inc., a Maryland
  corporation (92.33%; limited partner). Carey Management LLC is owned by Carey
  REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%). N/A Dragon Godo Kaisha (Wanbishi) Wanbi Investor LLC, a
  Delaware limited liability company (87% Non-QII TK Investor) CPA 17 Asia
  Holdings LLC (10% TK Investor) Brassington Ltd Hong Kong (non-voting 3%
  equity) Wanbi Investor LLC is owned by CPA 17 Asia Holdings LLC (100%), which
  is owned by CPA:17 Limited Partnership (100%), which is owned by (a)
  Corporate Property Associates 17 – Global incorporated, a Maryland
  corporation (99.985%) and (b) W.P. Carey Holdings LLC, a Delaware limited
  liability company (.015%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%). Brassington Ltd Hong Kong is owned by W.P. Carey
  Inc. Corporate Property Associates 17 – Global incorporated (approximately
  96.99%) W. P. Carey Inc. (approximately 3.01%) DRAYTON PLAINS (MI), LLC
  (Kmart Corporation) Delaware Carey REIT II, Inc., a Maryland corporation
  (100%) Carey REIT II, Inc. is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%). N/A DSG (IN) QRS 15-44, Inc. (Dick’s Sporting Goods)
  Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by
  CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) N/A Energy (NJ) QRS 15-10,
  Inc. (Foster Wheeler) Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED,
  a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED
  is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Faur WPC (OH) LLC (Faurecia) Delaware Corporate
  Property Associates 6 - a California limited partnership (100%) Corporate
  Property Associates 6 - a California limited partnership is owned by Carey
  Management LLC, a Delaware limited liability company (5%; general partner)
  and Carey REIT II, Inc., a Maryland corporation (95%; limited partner). Carey
  Management LLC is owned by Carey REIT II, Inc. (100%), which is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%). N/A Finit (FI) LLC
  (Tietoenator) Finit (FI) LLC owns Kiinteisto Oy Tietokilo 1-2 (100%), which
  owns the property known as Kutojantie 6 and Kutojantie 8 Finit (FI) LLC owns
  Kiinteisto Oy Tietotie 6, which owns the property known as Tietotie 6
  Delaware Tito (FI) QRS 15-81, Inc., a Delaware corporation (60% (managing
  member)) Tito (FI) QRS 16-6, Inc., a Delaware corporation (40%) Tito (FI) QRS
  15-81, Inc. is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%), which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) Tito (FI) QRS 16-6, Inc. is owned by CPA 16 Merger Sub,
  Inc., a Maryland corporation (25%), which is owned by CPA 16 LLC, a Delaware
  limited liability company (100%), which is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%), N/A Fit (CO) QRS 15-59, Inc. (24
  Hour Fitness (Colorado)) Delaware CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A Four World Landlord (GA) LLC (World Color Printing (USA) Corp.)
  Delaware Four World Manager (GA) LLC, a Delaware limited liability company
  (1%; managing member) Corporate Property Associates 9, L.P., a Delaware
  limited partnership (99%; general Four World Manager (GA) LLC is owned by
  Corporate Property Associates 9, LP Corporate Property Associates 9 is owned
  by Carey Management LLC, a Delaware limited liability company (7.67%; general
  partner) and Carey REIT II, Inc., a Maryland corporation (92.33% limited
  partner) , which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership partner) corporation (100%). GAL III (IN) QRS
  15-49, Inc. (Dick’s Sporting Goods (GALYAN’s III)) Delaware CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A GAL III (NJ) QRS 15-45, Inc. (Dick’s Sporting
  Goods (GALYAN’s III)) Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED,
  a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED
  is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A GAL III (NY)
  QRS 15-48, Inc. (Dick’s Sporting Goods (GALYAN’s III)) Delaware CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A Goldyard, S.L. (Eroski: Mallorca) Spain Eros
  II Spain 17-16 B.V., a Dutch company (100%) Eros II Spain 17-16 B.V. is owned
  by: (i) CPA 17 Pan-European Holding Coop (30%), which is owned by (a) CPA 17
  International Holding and Financing LLC, a Delaware limited liability company
  (1%), which is owned by CPA: 17 Limited Partnership, a Delaware limited
  partnership (100%), and (b) CPA: 17 Limited Partnership, a Delaware limited
  partnership (99%), which is owned by Corporate Property Associates 17- Global
  Incorporated, a Maryland corporation (99.985%; general partner) and W. P.
  Carey Holdings LLC, a Delaware limited liability company (.015%). W.P. Carey
  Holdings LLC is owned by Carey REIT II Inc., a Maryland corporation (50%) and
  WPCI Holdings I LLC (50%). WPCI Holdings I LLC is owned by Carey REIT II Inc.
  (92.31%) and WPCI Minority Shareholders (7.69%); and (ii) EROS (ESP) CR QRS
  INC., a Delaware corporation (70%), which is owned by Carey REIT II Inc., a
  Maryland corporation (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%). Corporate Property Associates 17- Global
  Incorporated (29.09%) W.P. Carey Inc. (70.01%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership GRC (TX) Limited Partnership (Grande
  Communications) Delaware GRC (TX) QRS 15-47, Inc., a Delaware corporation
  (.5% (general partner)) GRC (TX) Trust, a Maryland business trust (99.5%) GRC
  (TX) QRS 15-47, Inc. and GRC (TX) Trust are owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is owned by
  CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) N/A GRC-II (TX) Limited
  Partnership (Grande Communications (Grande II)) Delaware GRC-II (TX) QRS
  15-80, Inc, a Delaware corporation (1% (general partner)) GRC-II (TX) Trust,
  a Maryland business trust (99%) GRC-II (TX) QRS 15-80, Inc and GRC-II (TX)
  Trust are owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A Hammer (DE) Limited Partnership (Tru Value (Hammer))
  Delaware HAMMER (DE) LP QRS 12-65, INC., a Delaware corporation (15%) HAMMER
  (DE) LP QRS 14- 100, INC., a Delaware corporation (35%) HAMMER (DE) QRS
  15-32, INC., a Delaware corporation (.5% (general partner)) HAMMER (DE) LP
  QRS 15-33, INC., a Delaware corporation (49.5%) HAMMER (DE) LP QRS 12-65,
  INC. and HAMMER (DE) LP QRS 14- 100, INC. are each owned by CPA 16 Merger Sub
  Inc. (100%), which is owned by CPA 16 LLC, a Delaware limited liability
  company (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) HAMMER (DE) QRS 15-32, INC and HAMMER (DE) LP
  QRS 15-33, INC. are each owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED
  (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A) HELLWEG GmbH & Co. Vermögensverwaltungs KG1 German Shovel
  Management GmbH (0% GP) HLWG TWO (GER) LLC, a Delaware limited liability
  Shovel Management GmbH is owned by HLWG TWO (GER) LLC (100%) Drill GmbH and
  Co. KG is owned by Hoe Management GmbH (0%; GP), W.P. Carey Inc. (67%)
  CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL 1 HELLWEG GmbH & Co.
  Vermögensverwaltungs KG owns (i) Erwin Specht Verwactungs GmbH (100%) and
  (ii) Erwin Specht GmbH & Co. KG (100%), which is the owner of the
  Wiessensee Property. Erwin Specht Verwactungs GmbH is the General Partner of
  Erwin Specht GmbH & Co. KG (0%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (Hellweg II) company (89.9%) Drill GmbH and Co.
  KG (5.1%) Reinhold Semer2 (5%) HLWG TWO (GER) LLC (94.9%) and Reinhold Semer
  (5.1%) Hoe Management GmbH is owned by HLWG TWO (GER) LLC (94.8%) and
  Reinhold Semer (5.2%) HLWG TWO (GER) LLC is owned by H2 INVESTOR (GER) QRS
  14-104 LLC, a Delaware limited liability company (33%), H2 INVESTOR (GER) QRS
  16-100, INC., a Delaware corporation (27%) and H2 INVESTOR (GER) QRS 15-91,
  INC., a Delaware corporation (40%) H2 INVESTOR (GER) QRS 14-104 LLC is owned
  by CPA:17 LIMITED PARTNERSHIP, a Delaware limited partnership (100%) CPA:17
  LIMITED PARTNERSHIP is owned by CORPORATE PROPERTY ASSOCIATES 17 –GLOBAL
  INCORPORATED, a Maryland corporation (99.985% limited partner and general
  partner) and W.P. CAREY HOLDINGS LLC, a Delaware limited liability company
  (0.015% special general partner) W.P. CAREY HOLDINGS LLC is owned by CAREY
  REIT II, INC., a Maryland corporation (50%) and W.P.C.I. Holdings I LLC, a
  Delaware limited liability company (50%) W.P.C.I. Holdings I LLC is owned by
  CAREY REIT II, INC. (near 100%), which is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) H2 INVESTOR (GER) QRS 16-100, INC. is owned by
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDO LLC, a Maryland INCORPORATED (33%) 2
  Reinhold Semer, an individual, is not affiliated with W.P. Carey Inc. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership limited liability company, which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) H2 INVESTOR (GER) QRS 15-91,
  INC. is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) Hum (DE) QRS 11-45, Inc. (Humco Holding Group, Inc.)
  Delaware CIP Acquisition Incorporated, a Maryland corporation (100%) CIP
  Acquisition Incorporated is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation. N/A ICG (TX) LIMITED PARTNERSHIP Delaware ICG-GP (TX)
  QRS 15-3, INC., a Delaware corporation (0.5% (general partner)) ICG-LP (TX)
  TRUST, a Maryland business trust (99.5%) ICG-GP (TX) QRS 15-3, INC. and
  ICG-LP (TX) TRUST are owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED,
  a Maryland corporation (100%), which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A Illkinvest SAS Tours Invest SAS (Bouyges
  Telecom/Groupe Sofemo Illkinvest - France Tours Invest - France Illkinvest is
  owned by Polkinvest Sprl (75%), REM France (10%) and two unaffiliated Belgian
  individuals (15%) Tours Invest is owned by Polkinvest Sprl (95%) and REM
  France (5%) POLKINVEST Sprl is owned by (i) Carey REIT II, Inc., a Maryland
  corporation (approximately 21,819 shares) Carey REIT II, Inc. (100%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%).and (ii) W.P.
  Carey & Co., Inc., a Delaware corporation (1 share) Illkinvest – W.P.
  Carey Inc. (approximately 74.9999%), W.P. Carey & Co., Inc.
  (approximately .0001%), REM France (10%) and two unaffiliated Belgian
  individuals (15%) Tours Invest – W.P. Carey Inc. (approximately 94.9999%),
  W.P. Carey & Co., Inc. (approximately 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership .0001%), and REM France (5%) JPCentre (TX) LLC
  (JPMorgan Chase Bank, National Association) Delaware Corporate Property
  Associates 9, L.P., a Delaware limited partnership (100%) Corporate Property
  Associates 9 is owned by Carey Management LLC, a Delaware limited liability
  company (7.67%; general partner) and Carey REIT II, Inc., a Maryland
  corporation (92.33% limited partner). Carey Management LLC is owned by Carey
  REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%). N/A KF WPC OWNER (IL) LLC (Kraft Foods) Delaware
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%)
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A Labrador (AZ) LP (PetsMart (AZ)) Delaware
  TERRIER (AZ) QRS 14-78, INC., a Delaware corporation (1% (general partner))
  CPA 16 Merger Sub Inc., a Maryland corporation (69%) CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (30%) TERRIER (AZ) QRS
  14-78, INC. is owned by CPA 16 Merger Sub Inc. (100%), which is owned by CPA
  16 LLC, a Delaware limited liability company (100%), which is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%). WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%),
  which is owned by W.P. Carey Inc., a Maryland corporation (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A Linden (GER) LLC (Lindenmaier) Delaware
  Chassis (GER) QRS 16-118, Inc., a Delaware corporation (33.3%) Gearbox (GER)
  QRS 15-95, Inc., a Delaware corporation (66.7% (managing member)) Chassis
  (GER) QRS 16-118, Inc. is owned by CPA 16 Merger Sub, Inc., a Maryland
  corporation (100%), which is owned by CPA 16 LLC, a Delaware limited
  liability company (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%) Gearbox (GER) QRS 15-95, Inc. is
  owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) LT Fitness (DE) QRS 15- 53, Inc. (Life Time
  Fitness) Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by
  CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) N/A Marcourt Investments
  Incorporated (Marcourt Investments Inc./ Marriott) Maryland Coolidge
  Investment Partners, L.P., a Delaware limited partnership (approximately 53%)
  CIP Acquisition Incorporated, a Maryland corporation (approximately 47%) CIP
  Acquisition Incorporated is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation. Coolidge Investment Partners, L.P., a Delaware
  limited partnership (approximately 53%) W.P. Carey Inc. (approximately 47%)
  Mauritius International I LLC3 (India Fund) India W.P. Carey International
  LLC (100%) W.P. Carey International LLC is owned by (i) Individual Member(s)
  (7.69%) and (ii) Carey REIT II, Inc., a Maryland corporation (92.31%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A MBM-Beef (DE)
  QRS 15- 18, Inc. (Meadow Brook Meats) Delaware CORPORATE PROPERTY ASSOCIATES
  15 INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES
  15 INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A Mechanic (AZ) QRS 15- 41, Inc. (Universal Technical Delaware
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland N/A 3
  Owns 150 Class A Preferred Units in India Fund. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Institute of Arizona, Inc.) corporation (100%)
  corporation (100%) Medi (PA) Limited Partnership (MediMedia) Delaware Medi
  (PA) QRS 15-21, Inc., a Delaware corporation (.5% (general partner)) Medi
  (PA) Trust, a Maryland business trust (99.5%) Medi (PA) QRS 15-21, Inc. and
  Medi (PA) Trust are owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%), which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A MM (UT) QRS 11-59, Inc. (Merit Medical
  Systems, Inc.) Delaware CIP Acquisition Incorporated, a Maryland corporation
  (100%) CIP Acquisition Incorporated is owned by CORPORATE PROPERTY ASSOCIATES
  15 INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15
  Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation. N/A Module (DE) Limited Partnership
  (Tower Transaction) Delaware Suspension (DE) QRS 15-1, Inc., a Delaware
  corporation (. 1% (general partner)) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (99.9%) Suspension (DE) QRS 15-1, Inc.
  is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A NEOSERV (CO) QRS 11- 8, Inc. (80%) and NEOSERV (CO)
  QRS 10- 13, Inc. (20%) as tenants in common (EDS Customer Relationship
  Management, Inc. (Centrobe/Neodata)) Colorado NEOSERV (CO) QRS 11-8, Inc. and
  NEOSERV (CO) QRS 10-13, Inc. are owned by CIP Acquisition Incorporated, a
  Maryland corporation (100%), CIP Acquisition Incorporated is owned by
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%),
  which is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation. N/A
  Olimpia Investment Sp. z o.o. Poland Pilbara Investments Limited, a Cypress
  company (100%) Pilbara Investments Limited is owned by Polkinvest Sprl (100%)
  which is owned by (i) Carey REIT II, Inc., a Maryland corporation
  (approximately 21,819 shares) , which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. W.P. Carey Inc.
  (approximately 99.9999%) W.P. Carey & Co., Inc. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (OBI 3) (Wroclaw) Carey Inc., a Maryland
  corporation (100%), and (ii) W.P. Carey & Co., Inc., a Delaware
  corporation (1 share) (approximately .0001%) Optical (CA) QRS 15-8, Inc. (L-3
  Communications SSG Tinsley, Inc.) Delaware CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A Overtape (CA) QRS 15- 14, Inc. (Overland Storage) Delaware
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%)
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A OX (AL) LLC (Gestamp Alabama (Oxford
  Automotive)) Delaware OX-GP (AL) QRS 15-15, Inc., a Delaware corporation
  (100%) OX-GP (AL) QRS 15-15, Inc. is owned by CORPORATE PROPERTY ASSOCIATES
  15 INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15
  Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A PAPER LIMITED LIABILITY COMPANY
  (Unisource Worldwide, Inc.) Delaware CPA Paper, Inc., a Delaware corporation
  (1%) Corporate Property Associates 4, a California Limited Partnership (99%)
  CPA Paper, Inc. is owned by Corporate Property Associates 4, a California
  Limited Partnership (100%) which is owned by Carey Management LLC, a Delaware
  limited liability company (2.6%; general partner) and Carey REIT II, Inc., a
  Maryland corporation (97.4%; limited partner) Carey Management LLC is owned
  by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%). N/A Pem (MN) QRS 15-39, Inc. (Benchmark
  Electronics (Pemstar)) Delaware CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A PENSACOLA STORAGE Delaware Pensacola Storage Member (FL) LLC, a
  Delaware limited Pensacola Storage Member (FL) LLC is owned by Carey Storage
  Member LLC (100%), which is owned by Carey Storage Management N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (FL) LLC liability company (100%) LLC (100%),
  which is owned by Carey REIT II, Inc. (100%), which is owned by WPC REIT
  Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%). PET(TX) LP (PetSmart) Delaware
  PET(TX)GP QRS 11-62, INC., a Delaware corporation (0.1% (general partner))
  PET(TX) TRUST, a Maryland business trust PET(TX)GP QRS 11-62, INC. and
  PET(TX) TRUST are owned by CIP ACQUISITION INCORPORATED, a Maryland
  corporation (100%), which is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A Plastic (DE) Limited Partnership (Rexam
  Consumer Plastic, Inc. (Precise)) Delaware Plastic (DE) QRS 15-56, Inc., a
  Delaware corporation (.5% (general partner)) Plastic (DE) Trust, a Maryland
  business trust (99.5%) Plastic (DE) QRS 15-56, Inc, and Plastic (DE) Trust
  are owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A Pohj Landlord (Finland) LLC (Pohjola) Delaware Pohj Managing
  Member (Finland) QRS 16-20, Inc., a Delaware corporation (40% (managing
  member)) Pohj Member (Finland) QRS 15-82, Inc., a Delaware corporation (60%)
  Pohj Managing Member (Finland) QRS 16-20, Inc. is owned by CPA 16 Merger Sub,
  Inc., a Maryland corporation (100%), which is owned by CPA 16 LLC, a Delaware
  limited liability company (100%), which is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) Pohj Member (Finland) QRS
  15-82, Inc. is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%), which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A Pol (NC) QRS 15-25, Inc. (New Wincup Holdings
  (Polar Plastics)) Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is
  owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership QRS 10-18 (FL), LLC (Fiskars (Enviroworks,
  Inc.)) Delaware Carey REIT II, Inc., a Maryland corporation (100%) Carey REIT
  II, Inc. is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A
  QRS 11-2 (AR), LLC (Xerox) Delaware Carey REIT II, Inc., a Maryland
  corporation (100%) Carey REIT II, Inc. is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%). N/A QRS 11-41 (AL) LLC (Sports Wholesale, Inc.
  (Hibbett Sporting Goods)) Delaware Hibbett (AL) 11-41, Inc., a Delaware
  corporation (.1% (managing member)) Carey REIT II, Inc., a Maryland
  corporation (99.9%) Hibbett (AL) 11-41, Inc. is owned by Carey REIT II, Inc.,
  which is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A
  QS Ark (DE) QRS 15-38, Inc. (Qualserv Corporation) Delaware CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A Quest-US West (AZ) QRS 11-68, LLC (Qwest
  Communications, Inc. (US West)) Delaware Comquest West (AZ) 11-68, Inc., a
  Delaware corporation (.1%; managing member) Carey REIT II, Inc., a Maryland
  corporation (99.9%) Comquest West (AZ) QRS 11-68, LLC is owned by Carey REIT
  II, Inc., which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%). N/A Rails (UK) QRS 15-54, Inc. (Tata Steel – UK Limited) Delaware
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%)
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A Randolph/Clinton Limited Partnership
  (Symphony IRI Group (Information Resources, Delaware Corporate Property
  Associates 9, L.P., a Delaware limited partnership (33.33%) QRS 10-1 (ILL),
  Inc., an Illinois corporation (67% (general Corporate Property Associates 9,
  L.P. is owned by (i) Carey Management LLC, a Delaware limited liability
  company (7.67%; general partner), and (ii) Carey REIT II, Inc., a Maryland
  corporation (92.33%; limited partner) QRS 10-1 (ILL), Inc. is owned by CIP
  Acquisition Incorporated (100%), N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc.)) partner) which is owned by Corporate
  Property Associates 15 Incorporated, a Maryland corporation (100%), which is
  owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) Carey Management
  LLC is owned by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) RII (CA) QRS 15-2, INC. (EADS North America
  Test and Services (Racal)) Delaware CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A
  Rush It LLC (Federal Express Corporation) Delaware Deliver (TN) QRS 14-49,
  Inc., a Delaware corporation (1%; managing member) Carey REIT II, Inc., a
  Maryland corporation (99%) Deliver (TN) QRS 14-49, Inc. is owned by Carey
  REIT II, Inc., which is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%). N/A Salted Peanuts (LA) QRS 15-13, Inc. (Rave Motion
  Pictures Baton Rouge, L.L.C.)) Delaware CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A Scan (OR) QRS 11-47, Inc. (Datalogic/PSC Scanning, Inc.) Delaware
  CIP Acquisition Incorporated, a Maryland corporation (100%) CIP Acquisition
  Incorporated is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%), which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation. N/A SF(TX) LP (Sports and Fitness/24 Delaware SF(TX)GP
  QRS 11-61, Inc., a Delaware corporation (.1% (general partner)) SF(TX)GP QRS
  11-61, Inc. and SF(TX) Trust are owned by CIP Acquisition Incorporated, a
  Maryland corporation (100%), which is owned by CORPORATE PROPERTY ASSOCIATES
  15 INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15
  Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Hour Fitness) SF(TX) Trust, a Maryland business
  trust (99.9%) Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) SFC (TN) QRS 11-21, Inc. (24
  Hour Fitness Tennessee) Tennessee CIP Acquisition Incorporated, a Maryland
  corporation (100%) CIP Acquisition Incorporated is owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is owned by
  CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation. N/A SHAQ (DE) QRS 15-75, INC.
  Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by
  CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) N/A Spec (CA) QRS 12-20, Inc.
  (Juniper Networks (Cree & Spectrian)) California Carey REIT II, Inc., a
  Maryland corporation (100%) Carey REIT II, Inc. is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%). N/A ST(TX) LP (Superior Telecom) Delaware
  ST(TX)GP QRS 11-63, Inc., a Delaware corporation (.1% (general partner))
  ST(TX) Trust, a Maryland business trust (99.9%) ST (TX) GP QRS 11-63, Inc.
  and ST (TX) Trust are owned by CIP Acquisition Incorporated, a Maryland corporation
  (100%), which is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%), which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A SUNNY CHIP 14 LLC (66 2/3 tenant in common
  interest with SUNNY CHIP 15 LLC (33 1/3 tenant in common interest) (Advanced
  Micro Devices) Delaware SUNNY CHIP 14 LLC is owned by SEMI (CA) QRS 12- 45,
  INC., a Delaware corporation (50% (managing member)) and CONDUCTOR (CA) QRS
  14-11, INC., a Delaware corporation (50%) SUNNY CHIP 15 LLC is owned by
  Delaware Chip, LLC, SEMI (CA) QRS 12-45, INC. and CONDUCTOR (CA) QRS 14-11,
  INC. are each owned by CPA 16 Merger Sub Inc., a Maryland corporation (100%),
  which is owned by CPA 16 LLC, a Delaware limited liability company (100%),
  which is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%).
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) Delaware Chip, LLC is owned by Micro (CA) QRS 11-43, Inc.,
  a Delaware corporation, which is owned by CIP Acquisition Incorporated, a Maryland
  corporation (100%), which is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership a Delaware limited liability company (100%)
  corporation (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) Telegraph (MO) LLC (Charter Communications) Delaware
  Telegraph Manager (MO) WPC, Inc., a Delaware corporation (1% Managing
  Partner) Corporate Property Associates 4, a California limited partnership
  (99.9%) Telegraph Manager (MO) WPC, Inc. is owned by Corporate Property
  Associates 4 (100%), which is owned by (i) Carey Management LLC, a Delaware
  limited liability company (2.6%; general partner) and (ii) Carey REIT II,
  Inc., a Maryland corporation (97.4%; limited partner). Carey Management LLC
  is owned by Carey REIT II, Inc. (100%), which is owned by WPC REIT Merger Sub
  Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A Thal Dfence Conflans SCI (Thales Portfolio)
  French BBA-1 Sarl (France) (99.9%) BBA-2 Sarl (France) (0.1%) BBA-2 Sarl is owned
  by BBA-1 Sarl (100%) BBA-1 Sarl is owned by Dfence (Belgium) 15&16 Sprl
  (100%) Dfence (Belgium) 15&16 Sprl is owned by Dfence (Belgium) 16 Sprl
  (35%) and Dfence (Belgium) 15 Sprl (65%) Dfence (Belgium) 16 Sprl is owned by
  Dfend 16 LLC, a Delaware limited liability company (1 share) and CPA 16
  MERGER SUB INC., a Maryland corporation (8270 shares) Dfend 16 LLC is owned
  by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB
  INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%) Dfence (Belgium) 15 Sprl (Belgium)
  is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (99.99%) and Dfend 15 LLC, a Delaware limited liability N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership company (0.01%) Dfend 15 LLC is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) Three Aircraft Seats (DE) Limited Partnership
  (BE Aerospace, Inc.) Delaware Three Cabin Seats (DE) LLC, a Delaware limited
  liability company (.5%; general partner) Carey REIT II, Inc., a Maryland
  corporation (99.5%) Three Cabin Seats (DE) LLC is owned by Carey REIT II,
  Inc., which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%). N/A Tissue Sarl (Prefecture de Police/ Rue Albert Portfolio) French
  Dfence (Belgium) 16 Sprl (Belgium) (50%) Dfence (Belgium) 15 Sprl (Belgium)
  (50%) Dfence (Belgium) 16 Sprl is owned by Dfend 16 LLC, a Delaware limited
  liability company (1 share) and CPA 16 MERGER SUB INC., a Maryland
  corporation (8270 shares) Dfend 16 LLC is owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%). WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%)
  Dfence (Belgium) 15 Sprl (Belgium) (50%) is owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (99.99%) and Dfend 15 LLC,
  a Delaware limited liability company (0.01%) Dfend 15 LLC is owned by
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED (100%), which is owned by CPA
  15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Toys (NE) QRS 15-74, Inc. (Oriental Trading
  Company) Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED a Maryland
  corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by
  CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) N/A UH STORAGE (DE) LIMITED
  PARTNERSHIP (Mercury Partners-UHaul) Delaware Stor-Move UH 14 Business Trust,
  a Massachusetts business trust (11.54%) Stor-Move UH 15 Business Trust, a
  Massachusetts business trust (57.19%) UH STORAGE GP (DE) QRS 15-50, INC., a
  Delaware corporation (.5% (general partner)) Stor-Move UH 16 Business Trust,
  a Massachusetts business trust (30.77%) Stor-Move UH 14 Business Trust is owned
  by CPA:17 Limited Partnership, a Delaware limited partnership (100%), which
  is owned by CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED a Maryland
  corporation (99.985% (general and limited partner)) and W.P. Carey Holdings,
  LLC, a Delaware limited liability company (.015% (special partner)).
  Stor-Move UH 15 Business Trust and UH STORAGE GP (DE) QRS 15- 50, INC. are
  owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED a Maryland corporation
  (100%) Stor-Move UH 16 Business Trust is owned by CPA 16 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by CPA 16 LLC, a Delaware limited
  liability company (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 17 –
  GLOBAL INCORPORATED (approximately 11.54%) W.P. Carey Inc., a Maryland
  corporation (approximately 88.46%) Uni-Tech (CA) QRS 15-64, Inc. (Universal
  Technical Institute of California, Inc.) Delaware CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A UNITECH (IL) LLC (Custom Training Group, Inc. and UTI
  Holdings, Inc. (jointly and severally, as tenants) Delaware Learn (IL) QRS
  11-53, Inc., a Delaware corporation (1% (managing member)) CIP Acquisition
  Incorporated, a Maryland corporation (99%) Learn (IL) QRS 11-53, Inc. is
  owned by CIP Acquisition Incorporated CIP Acquisition Incorporated is owned
  by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation
  (100%), which is owned by CPA 15 Merger Sub Inc., a Maryland corporation
  (100%), which is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation.
  N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Uni-Tech (PA), L.P. (Universal Technical
  Institute of Pennsylvania, Inc.) Delaware Uni-Tech (PA) QRS 15-51, Inc. a
  Delaware corporation (.1% (general partner)) Uni-Tech (PA) Trust, a Maryland
  Business Trust (99.9%) Uni-Tech (PA) QRS 15-51, Inc. is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) Uni-Tech
  (PA) Trust is owned by Uni-Tech (PA) QRS 15-63, Inc., a Delaware corporation
  (100%), which is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED
  (100%) N/A Venice (CA) LP (Google, Inc.) Delaware (CA) ADS, LLC, a Delaware
  limited liability company (1%: general partner) Carey REIT II, Inc., a
  Maryland corporation (99%) (CA) ADS, LLC is owned by Carey REIT II, Inc.,
  which is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A
  Wadd-II (TN) LP (Waddington NA) Delaware Wadd-II General Partner (TN) QRS
  15-19, Inc., a Delaware corporation (.5% (general partner)) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (99.5%) Wadd-II
  General Partner (TN) QRS 15-19, Inc. is owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A WALS (IN) LLC (Wal-Mart Stores, Inc. (Sam’s
  Club)) Delaware Carey REIT II, Inc., a Maryland corporation (100%) Carey REIT
  II, Inc. is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%). N/A
  WEGELL GmbH & Co. KG (Hellweg I) German Wegell Verwaltungs GmbH (0%
  (general partner)) Weg (GER) QRS 15-83, Inc., a Delaware corporation (75%)
  ELL (GER) QRS 16-37, Inc., a Delaware corporation (25%) Wegell Verwaltungs
  GmbH is owned by Weg (GER) QRS 15-83, Inc., which is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is
  owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) Ell (GER) QRS
  16-37, Inc. is owned by CPA 16 Merger Sub, Inc., a Maryland corporation
  (100%), which is owned by CPA 16 LLC, a Delaware limited liability company
  (100%), which is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%). WPC REIT Merger N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity Interest
  and jurisdiction of Incorporation / Organization Intermediate Entity Owner
  and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) WGN (GER) LLC (Wagon) Delaware Conduit B.V., a Dutch B.V.
  (66.67%) (managing member) WGN 15 Member (GER) QRS 15-99, Inc., a Delaware
  corporation (33.33%) Conduit B.V. is owned by CPA 17 Pan-European Holding
  Coöperatief U.A., a cooperative formed under the laws of the Netherlands,
  which is owned by (i) CPA 17 International Holding and Financing LLC, a
  Delaware limited partnership (1%), which is owned by CPA:17 Limited
  Partnership, a Delaware limited partnership (100%) and (ii) CPA:17 Limited
  Partnership (99%), which is owned by (a) Corporate Property Associates 17 –
  Global incorporated, a Maryland corporation (99.985%) and (b) W.P. Carey
  Holdings LLC, a Delaware limited liability company (.015%), which is owned by
  Carey Reit II, Inc., a Maryland corporation (100%), which is owned by W. P.
  Carey & Co. LLC, a Delaware limited liability company WGN 15 Member (GER)
  QRS 15-99, Inc. is owned by WGN 15 Holdco (GER) QRS 15-98, Inc., a Delaware corporation
  (100%), which is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%), which is owned by CPA 15 Merger Sub Inc., a
  Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) Corporate Property Associates 17 – Global
  incorporated (approximately 66.5%) W. P. Carey Inc. (approximately 33.5%) WGS
  (MULTI) LLC (Walgreens) Delaware Carey REIT II, Inc., a Maryland corporation
  (100%) CAREY REIT II, INC. is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A Wisco (WI) Limited Partnership (Plexus/Electronic
  Assembly Corporation) Delaware Plex (WI) QRS 11-56, Inc., a Delaware
  corporation (1% (general partner)) Plex Trust (MD), a Maryland business trust
  (99%) Plex (WI) QRS 11-56, Inc. and Plex Trust (MD) are owned by CIP
  Acquisition Incorporated, a Maryland corporation (100%), which is owned by
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%),
  which is owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%),
  which is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), which is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A
  Wolv (DE) Limited Partnership (Plumbmaster) Delaware Plum (DE) QRS 15-67,
  Inc., a Delaware corporation (.5% (general partner)) Wolv Trust, a Maryland
  Plum (DE) QRS 15-67, Inc. is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership business trust (99.5%) corporation (100%) Wolv
  Trust is owned by Master (DE) QRS 15-71, Inc., a Delaware corporation, which
  is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED (100%) World
  Manager (DE) LLC (World Airways property manager) Delaware CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 Merger Sub Inc., a Maryland
  corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%), which is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A World (DE) QRS 15-65, Inc. (World Airways, Inc./Global
  Aero Logistics) Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is
  owned by CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%), which
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A WPC CROWN
  COLONY (MA) LLC (Arbella) Delaware CAREY REIT II, INC., a Maryland
  corporation (100%) CAREY REIT II, INC. is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (100%) N/A WPC HM 17-29 B.V. (H&M) CPA 17
  PAN-EUROPEAN HOLDING COORPERATIEV UA (100%) CPA 17 PAN-EUROPEAN HOLDING
  COORPERATIEV UA is owned by (i) CPA 17 International Holding and Financing
  LLC, a Delaware limited partnership (1%), which is owned by CPA:17 Limited
  Partnership, a Delaware limited partnership (100%) and (ii) CPA:17 Limited
  Partnership (99%), which is owned by (a) Corporate Property Associates 17 –
  Global incorporated, a Maryland corporation (99.985%) and (b) W.P. Carey
  Holdings LLC, a Delaware limited liability company (.015%), which is owned by
  WPC REIT Merger Sub Inc., a Maryland corporation (100%), which is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%), which is owned
  by W.P. Carey Inc., a Maryland corporation (100%). Corporate Property
  Associates 17 – Global incorporated (approximately 99.99%) W. P. Carey Inc.
  (approximately 0.01%) WPC REIT I BV (Tommy Hilfiger) WPC PAN-EUROPEAN HOLDING
  COORPERATIEV UA (100%) WPC PAN-EUROPEAN HOLDING COORPERATIEV UA is owned by
  (i) WPC International Holding and Financing LLC (1%), which is owned by WPC
  HOLDCO LLC (100%), and (ii) WPC HOLDCO LLC, a N/AMaryland limited liability
  company (99%) WPC HOLDCO LLC is owned by W.P. Carey Inc., a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation (100%) WPC REIT Cargo 4 B.V.
  (Cargotec) WPC PAN-EUROPEAN HOLDING COORPERATIEV UA (100%) WPC PAN-EUROPEAN
  HOLDING COORPERATIEV UA is owned by (i) WPC International Holding and
  Financing LLC (1%), which is owned by WPC HOLDCO LLC (100%), and (ii) WPC
  HOLDCO LLC, a Maryland limited liability company (99%) WPC HOLDCO LLC is
  owned by W.P. Carey Inc., a Maryland corporation (100%) N/A WPC REIT MERGER
  SUB INC. (Lowes Home Improvement/Keystone Capital Company) Maryland WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC is
  owned by W.P. Carey Inc., a Maryland corporation (100%) N/A Wrench (DE)
  Limited Partnership (Tru Value (Wrench)) Delaware PLIERS (DE) TRUST, a
  Maryland business trust (15%) DRILL (DE) TRUST, a Maryland business trust
  (35%) WRENCH (DE) QRS 15-31, INC., a Delaware corporation (.5% (general
  partner)) WRENCH (DE) TRUST, a Maryland business trust (49.5%) PLIERS (DE)
  TRUST and DRILL (DE) TRUST are each owned by CPA 16 Merger Sub, Inc., a
  Maryland corporation (100%), which is owned by CPA 16 LLC, a Delaware limited
  liability company (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%). WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), which is owned by W.P.
  Carey Inc., a Maryland corporation (100%) WRENCH (DE) QRS 15-31, INC. and
  WRENCH (DE) TRUST are each owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%), which is owned by CPA 15 Merger
  Sub Inc., a Maryland corporation (100%), which is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%), which is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A Zylinderblock (GER) LLC (SaarOTEC / Goertz
  & Schiele) Delaware Engines (GER) QRS 15-90, Inc., a Delaware corporation
  (50%) Blocks (GER) QRS 16-89, Inc., a Delaware corporation (50%) (managing
  member) Engines (GER) QRS 15-90, Inc. is owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%), which is owned by
  CPA 15 Merger Sub Inc., a Maryland corporation (100%), which is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%), which is owned by
  W.P. Carey Inc., a Maryland corporation (100%) Blocks (GER) QRS 16-89, Inc.
  is owned by CPA 16 Merger Sub, Inc., a Maryland corporation (100%), which is
  owned by CPA 16 LLC, a N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Delaware limited liability company (100%), which
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%). WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%), which is owned by W.P. Carey Inc., a Maryland corporation
  (100%) Miscellaneous Subsidiaries: (Subsidiaries that are not property owners
  and/or are going to be dissolved) 87TH STREET STORAGE OWNER (IL) LLC BEDFORD
  WPC STORAGE (IL) LLC BEST STORAGE (FL) LLC Carey HUSREF IV Storage Services,
  Inc. CAREY SELF STORAGE PARTICIPATION LLC CAREY STORAGE I (FL) BULL RUN LLC
  CAREY STORAGE I (TX) ACES LP Carey Storage (DE) TRS 16-155, INC CAREY STORAGE
  ACES GP LLC Carey Storage Asset Management LLC CAREY STORAGE I (TX) BELTLINE
  LP CAREY STORAGE I (TX) TARRANT LP CAREY STORAGE I (CA) ROHNERT LLC CAREY STORAGE
  I (GA) AMERISTOR LLC CAREY STORAGE I (GA) STORE HOUSE LLC CAREY STORAGE I
  (OH) ARMOR LLC Carey Storage TRS (DE) 16-155, INC. CAREY WATERMARK HOLDINGS,
  LLC 

  

 

	
  

  	
  CC(ILVA) Trust
  CLA Holdings LLC HARLEM WPC STORAGE (IL) LLC LINCOLNSHIRE WPC STORAGE (IL)
  LLC MAP INVEST 1 Sarl MAP INVEST 2 Sarl MAP INVEST SCI MAPI INVEST Sprl
  PULASKI WPC STORAGE (IL) LLC QRS 11-29 (TX), Inc. QS-DARWEN (UK) 15-60, INC.
  STORAGE I (CT ) LLC TOTAL STORAGE (AR) LLC 

  

 

	
  

  	
  [LOGO]

  

 

 

	
  

  	
  Former CPA:16
  Subsidiaries Entity Name Jurisdiction of Incorporation / Organization of
  Entity Entity Owner, Equity Interest and jurisdiction of Incorporation /
  Organization Intermediate Entity Owner and Ultimate Parent and Equity
  Interest Overall Investment Joint Venture Percentage Ownership 620 EIGHTH NYT
  (NY) LIMITED PARTNERSHIP and 620 EIGHTH LENDER NYT (NY) LIMITED PARTNERSHIP
  (New York Times) Delaware CAREY REIT II, INC., a Maryland corporation
  (17.75%) 620 EIGHTH INVESTOR NYT (NY) QRS 16-150, INC., a Delaware
  corporation (27.25%) 620 EIGHTH GP NYT (NY) LLC, a Delaware limited liability
  company (55%) (General Partner) 620 EIGHTH INVESTOR NYT (NY) QRS 16-150, INC.
  is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%) WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) 620 EIGHTH GP NYT (NY) LLC, is owned by CPA: 17 LIMITED PARTNERSHIP, a
  Delaware limited partnership (100%). CPA:17 LIMITED PARTNERSHIP is owned by
  CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED, a Maryland
  corporation (99.985% limited partner and general partner) and W.P. CAREY
  HOLDINGS LLC, a Delaware limited liability company (0.015% special general
  partner) W.P. CAREY HOLDINGS LLC is owned by CAREY REIT II, INC., a Maryland
  corporation (100%) CAREY REIT II, INC. is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%) W.P. Carey Inc. (45%) CORPORATE PROPERTY
  ASSOCIATES 17 – GLOBAL INCORPORATED (55%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership ACT Grundstucksverwaltungs GmbH & Co. KG
  (Actuant) Germany ACT (GER) QRS 15-58, INC., a Delaware corporation (0.1%)
  GB-ACT (GER) LIMITED PARTNERSHIP, a Delaware limited partnership (98.9%) ACT
  Grundstucksverwaltungs Management GmbH (1%) (General Partner) ACT (GER) QRS
  15-58, INC. is owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a
  Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is
  owned by CPA 15 MERGER SUB INC., a Maryland corporation (100%) CPA 15 MERGER
  SUB INC. is owned by WPC HOLDCO LLC, a Maryland limited liability company WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) GB-ACT (GER) LIMITED PARTNERSHIP is owned by
  ACT (GER) QRS 15-58, INC. (0.01%) (General Partner), CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (49.99%), and CPA 16
  MERGER SUB INC., a Maryland corporation (50%) CPA 16 MERGER SUB INC. is owned
  by CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA
  16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%) ACT Grundstucksverwaltungs Management GmbH is owned
  by GB-ACT (GER) LIMITED PARTNERSHIP, a Delaware limited partnership (100%)
  N/A ADCIR (CO) QRS 16-60, Inc. (Advanced Circuits) Delaware CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) Aerobic (MO) LLC (24 Hour
  Fitness (St Charles MO)) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (99%) PUMP (MO) QRS 14-52, INC., a Delaware corporation (1%
  (managing member)) PUMP (MO) QRS 14-52, INC. is owned by CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A AFD (MN) LLC
  (McLane/Ameriserve) Delaware FOOD WPC (MI) LLC, a Delaware limited liability
  company (40% Class B member) FOOD (DE) QRS 12-49, INC., a Delaware
  corporation (40% Class C member) FAST (DE) QRS 14-22, INC., a Delaware
  corporation (60% Class A member (manager)) FOOD WPC (MI) LLC is owned by
  CAREY REIT II, INC., a Maryland Corporation CAREY REIT II, INC. is owned by
  WPC REIT Merger Sub Inc., a Maryland corporation (0.015% capital interest;
  10% profits interest), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership *Class A member holds 60% beneficial interest in
  both properties owned by company *Class B member holds 40% beneficial interest
  in MI property owned by company only *Class C member holds 40% beneficial
  interest in NJ property owned by company only corporation (100%) FOOD (DE)
  QRS 12-49, INC. and FAST (DE) QRS 14-22, INC. are each owned by CPA 16 MERGER
  SUB INC. a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA
  16 LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), ALUM
  (ALBERTA) ULC (Sapa) Canada ALUM (CANADA) QRS 16-103, INC., a Delaware
  corporation (100%) ALUM (CANADA) QRS 16-103, INC. is owned by CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA 16
  LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC
  REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A ALUSA (TX) Limited
  Partnership (Good Times Enterprise, aka, Southwest Convenience Stores)
  Delaware ALUSA-GP (TX) QRS 16-72, INC., a Delaware corporation (0.1%)
  (general partner) ALUSA-LP (DE) QRS 16-73, INC., a Delaware corporation (99.9%)
  ALUSA-GP (TX) QRS 16-72, INC. is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) ALUSA-LP (DE) QRS 16-73, INC. is owned by CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) AMTOLL (NM) QRS 14-39, INC. (Amtech) Delaware CPA 16 MERGER SUB INC.,
  a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC,
  a Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A AUTOPRESS (GER) LLC4 (Schuler)
  Delaware METAL (GER) QRS 15-94, INC., a Delaware corporation (50.25%) WORK
  (GER) QRS 16-117, INC., a Delaware corporation METAL (GER) QRS 15-94, INC. is
  owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER N/A 4 AUTOPRESS
  (GER) LLC (67%) owns the property jointly with JAMESINVEST SPRL (33%) as
  tenants in common. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (49.75%) SUB INC., a Maryland corporation (100%)
  CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company WPC HOLDCO LLC, a Maryland limited liability company is
  owned by W.P. Carey Inc., a Maryland corporation (100%) WORK (GER) QRS
  16-117, INC. is owned by CPA 16 MERGER SUB INC. (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) AUTOSAFE AIRBAG 14 (CA) LP (Special Devices)
  Delaware INITIATOR (CA) 14-62, INC., a Delaware corporation (.5% (general
  partner)) CPA 16 MERGER SUB INC. a Maryland corporation (99.5%) INITIATOR
  (CA) 14-62, INC . is owned by CPA 16 MERGER SUB INC. a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership Borneo Agencies Limited (IDS- Borneo, Thailand) Malaysia
  Kee County Limited, Alibi County Limited, Bayview County Limited, Gaia County
  Limited (0.1%) Thids 16 Co., Ltd. (49.925%) Thids (DE) QRS 16-17, Inc.
  (49.95%) Thids 16 Co., Ltd is owned by Thids (DE) QRS 16- 17, Inc., a
  Delaware corporation (49%) and Kee County Limited, Alibi County Limited,
  Bayview County Limited and Gaia County Limited (50.8%) Thids (DE) QRS 16-17,
  Inc. is owned by CPA 16 MERGER SUB INC., a Maryland corporation CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) Kee County Limited, Alibi County Limited, Bayview County Limited and
  Gaia County Limited (0.1%) W.P. Carey Inc. (99.875%) BBRANDS (MULTI) QRS
  16-137, Inc. (Best Brands) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT
  Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A BEVERAGE (GER) QRS 16-141 LLC Delaware
  Pallet (France) SARL Pallet (France) SARL is owned by DFENCE (Belgium) 16
  Sprl (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (Schoeller Arca Systems) DFENCE (Belgium) 16
  Sprl is owned by CPA 16 MERGER SUB INC., a Maryland corporation (99.99%) and
  Dfend 16 LLC (.01%) Dfend 16 LLC is owned by CPA 16 Merger Sub Inc. (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) BDF (CT) QRS 16-82, INC. (Bob’s Discount Furniture /
  Expansion) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA
  16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A BFS (DE) LP (Builders FirstSource (BFS)) Delaware
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, Maryland CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland
  corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation (40%) CPA 16 MERGER SUB INC., a
  Maryland corporation (59.9%) BFS (DE) QRS 14-74, Inc., a Delaware Corporation
  (.1% (general partner)) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  BFS (DE) QRS 14-74, Inc. is owned by CPA 16 MERGER SUB INC. (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) Bill-MC 14 LP (McCoy
  Workplace Solutions) Delaware BM-LP (TX) QRS 14-57, INC., a Delaware
  corporation (89.9%) BILL-GP (TX) QRS 14-56, INC., a Delaware corporation (.1%
  (general partner)) BILLIP, INC., a Texas corporation5 (10%) BM-LP (TX) QRS
  14-57, INC. and BILL-GP (TX) QRS 14-56, Inc. are each owned by CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA 16
  LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC
  REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) W.P. Carey Inc. (90% total ownership) BILLIP, INC. (10% total
  ownership) 5 Third party joint venture. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) BOBS (CT)
  QRS 16-25, INC. (Bob’s Discount Furniture) Delaware CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A Bolt (DE) L.P. (True Value
  (Bolt)) Delaware NAIL (DE) TRUST, a Maryland business trust (15%) HAMMER (DE)
  TRUST, a Maryland business trust (35%) BOLT (DE) QRS 15-26, INC., a Delaware
  corporation (.5% (general partner)) BOLT (DE) TRUST, a Maryland business
  trust (49.5%) NAIL (DE) TRUST and HAMMER (DE) TRUST are each owned by CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) BOLT (DE)
  QRS 15-26, INC. and BOLT (DE) TRUST are each owned by CORPORATE PROPERTY N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership ASSOCIATES 15 INCORPORATED (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a
  Maryland corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company BOS CLUB LL (MA) LLC, (Town Sports
  International (TSI Newton)) Delaware BOS CLUB MANAGER (MA) QRS 15-93, INC., a
  Delaware corporation CPA 16 MERGER SUB INC., a Maryland corporation (56%)
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (43.9%)
  BOS CLUB MANAGER (MA) QRS 15-93, INC. is owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland
  corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) N/A BPLAST LANDLORD (DE) LLC
  (Berry Plastics) Delaware BPlast 16 Member (DE) QRS 16-128, Inc., a Delaware
  corporation (49.5%) BPlast 16 Manager (DE) QRS BPlast 16 Member (DE) QRS
  16-128, Inc. is owned by CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) BPlast 16 Manager (DE) QRS 16-129, Inc. is owned Corporate Property
  Associates 17-Global Incorporated (99.85% of 50% which is 49.9% of the 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership 16-129, Inc., a Delaware corporation (0.5%) BPlast
  17 Member (DE) LLC, a Delaware limited liability company (50%) by CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) BPlast 17
  Member (DE) LLC is owned by CPA:17 Limited Partnership, a Delaware limited
  partnership (100%), which is owned by W. P. Carey Holdings LLC, a Delaware
  limited liability company (0.15%) (Special General Partner) and Corporate
  Property Associates 17 - Global Incorporated, a Maryland corporation (99.85%
  (General Partner)) W. P. Carey Holdings LLC is owned by Carey REIT II, Inc.,
  a Maryland corporation (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland Corporation (100%) total ownership) W. P. Carey Inc. (50.1% total
  ownership) BPLAST TWO LANDLORD (IN) LLC (Berry Plastics Parcel Swap) Delaware
  BPLAST TWO MEMBER (IN) QRS 16-151, INC., a Delaware corporation (49.5%)
  BPLAST TWO MANAGER (IN) QRS 16-152, INC., a Delaware corporation (0.5%) (Managing
  Member) BPLAST TWO MEMBER (IN) 17 LLC, a Delaware limited BPLAST TWO MEMBER
  (IN) QRS 16-151, INC. is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) BPLAST TWO MANAGER (IN) QRS 16-152, INC. is owned by CPA
  16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company Corporate Property
  Associates 17 – Global Incorporated (49.925%) W. P. Carey Inc. (50.075%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership liability company (50%) (approximately 100%) CPA
  16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%) WPC HOLDCO LLC, a Maryland limited liability company
  is owned by W.P. Carey Inc., a Maryland corporation (100%) BPLAST TWO MEMBER
  (IN) 17 LLC is owned by CPA:17 Limited Partnership, a Delaware limited
  partnership (100%) which is owned by W. P. Carey Holdings LLC, a Delaware
  limited liability company (0.15%) (Special General Partner) and Corporate
  Property Associates 17-Global Incorporated, a Maryland corporation (99.85%
  (General Partner)) W. P. Carey Holdings LLC is owned by Carey REIT II, Inc.,
  a Maryland corporation (100%), which is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%) BRILLIANT 437 GMBH (Performance Fibers GmbH)
  Germany PF (GER) QRS 16-96 LLC, a Delaware limited liability company (100%)
  PF (GER) QRS 16-96 LLC is owned by CPA16 GERMAN (DE) LIMITED PARTNERSHIP, a
  Delaware limited partnership (6%) and CPA MERGER SUB INC., a Maryland
  corporation (94%) CPA16 GERMAN (DE) LIMITED PARTNERSHIP Is owned by CPA16
  GERMAN GP (DE) QRS 16-155, INC., a Delaware corporation (0.1%) (GP), WPC REIT
  Merger Sub Inc., a Maryland corporation (5.9%) and CPA 16 MERGER SUB INC. (94%)
  CPA16 GERMAN GP (DE) QRS 16-155, INC. is owned by WPC REIT Merger Sub Inc.
  (100%). CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) BSL CALDWELL (NC) LLC (Builder’s FirstSource
  (BSL Caldwell)) Delaware CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A BST Torrance Landlord (CA) QRS 14-109, Inc. (Best Buy)
  Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation (100%) BT (PA) QRS 12-25, INC.
  (Bon-Ton) Pennsylvania CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A BT-YORK (PA) (Bon-Ton) Pennsylvania CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A CAN-TWO (DE) QRS 12-67,
  Inc. (Silgan) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  CAN (WI) QRS 12-34, Inc. (Silgan) Wisconsin CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership CAR-4 SCI (CAR-4) CAR-4 I SARL: 50% CAR-4 II
  SARL: 50% CAR-4 I SARL and CAR-4 II SARL are both owned by DFENCE (Belgium)
  16 Sprl (100%) DFENCE (Belgium) 16 Sprl is owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (8270 shares) and DFEND 16 LLC, a Delaware limited
  liability company (1 share) DFEND 16 LLC is owned by CPA 16 MERGER SUB INC.
  (approximately 100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A CARDS LIMITED LIABILITY COMPANY
  (Formerly Upper Deck) Delaware CARDS (CA) QRS 11-37, INC., a Delaware
  corporation (50%) CARDS (CA) QRS 12-12, INC., a Delaware corporation (50%)
  CARDS (CA) QRS 11-37, INC. is an indirect subsidiary of CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland
  corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership CARDS (CA) QRS 12-12, INC. is owned by CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) CAREY 16 LENDING CORP. Sho Landlord (FL) QRS
  16-104 INC. (SOHO House) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) CAREY WATERMARK 1 LLC (Doubletree) Delaware
  MEMPHIS HOTEL OWNER (TN) QRS 16-122, INC., a Delaware corporation (100%)
  MEMPHIS HOTEL OWNER (TN) QRS 16-122, INC. is owned by CPA 16 MERGER SUB INC.,
  a Maryland corporation CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company N/A
  

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  CASTING LANDLORD (GER) ORS 16-109 LLC (Willy Voit GmbH & Co. Stanz- und
  Metallwerk) Delaware CASTING MEMBER (GER) QRS 16-108 LLC, a Delaware limited
  liability company (100%) CASTING MEMBER (GER) QRS 16-108, INC. is owned by
  CPA16 GERMAN (DE) LIMITED PARTNERSHIP, a Delaware limited partnership (6%)
  and CPA 16 MERGER SUB INC., a Maryland corporation (94%) CPA16 GERMAN (DE)
  LIMITED PARTNERSHIP Is owned by CPA16 GERMAN GP (DE) QRS 16-155, INC., a
  Delaware corporation (0.1%) (GP), WPC REIT Merger Sub Inc., a Maryland
  corporation (5.9%) and CPA 16 MERGER SUB INC. (94%) CPA16 GERMAN GP (DE) QRS
  16-155, INC. is owned by WPC REIT Merger Sub Inc. (100%). CPA 16 MERGER SUB
  INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A CBS (PA) QRS 14-12, Inc. (L-3 Communications) Delaware CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) CHAMPION EDGE SDN BHD (IDS
  Malaysia) Malaysia SOUTH EAST ASIA PACIFIC HOLDINGS LIMITED, a British Virgin
  Islands company SOUTH EAST ASIA PACIFIC HOLDINGS LIMITED is owned by MALA-IDS
  (DE) QRS 16-71, INC., a Delaware corporation, which is owned by CPA 16 MERGER
  SUB INC., a Maryland corporation CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A Chassis (DE) L.P.
  (Tower Automotive) Delaware TOWER (DE) QRS 14-89, INC., a Delaware
  corporation TOWER 14 (MD), a Maryland business trust TOWER (DE) QRS 14-89,
  INC. and TOWER 14 (MD) are each owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  CHS WKS (DE) QRS 16-81, INC. (Cheeseworks Real Properties) Delaware CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A CLEAN
  (KY) LLC (EZ Pack) Delaware CLEAN (KY) QRS 16-22, INC., a Delaware
  corporation (100%) CLEAN (KY) QRS 16-22, INC. is owned by CPA 16 MERGER SUB
  INC. (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership COCO-DORM (PA), LP (MJB ACQUISITION) Delaware
  COCO-DORM (PA) QRS 16-52, INC., a Delaware corporation (0.1%) (general
  partner) COCO-DORM (PA) TRUST, a Maryland business trust (99.9%) COCO-DORM
  (PA) QRS 16-52, INC. is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) COCO-DORM (PA) TRUST is owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) COCO (WY) QRS 16-51, Inc. (MJB
  Acquisition Corp. (WY)) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A CONSYS-9 (SC) LLC & CONSYS (SC) QRS
  16-66, INC. (as tenants in common) Delaware CONSYS-9 (SC) LLC is owned by
  CORPORATE PROPERTY ASSOCIATE 9, L.P., a Delaware limited partnership
  CORPORATE PROPERTY ASSOCIATE 9, L.P. is owned by CAREY MANAGEMENT LLC, a
  Delaware limited liability company (7.67%) and CAREY REIT II, INC., a
  Maryland corporation (92.33%). N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (Consolidated Systems) (100%) CONSYS (SC) QRS
  16-66, INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CAREY MANAGEMENT LLC is owned by CAREY REIT II, INC. (100%) CPA 16 MERGER SUB
  INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) CONTAINER FINANCE (Finland) QRS 16-62, INC.6 (Nurminem Logistics Oyj)
  Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) CRI (AZ-CO) QRS 16-4, INC. (Karcher Floor Care) Delaware CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA 16
  LLC is owned by WPC REIT Merger Sub N/A 6 This entity does not own any
  property. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) CPA 14 Netherlands CV7
  Netherlands CV GP (Dutch) QRS 14-111, Inc., a Delaware corporation (1%)
  (General and Managing Partner) CPA 16 MERGER SUB INC., a Maryland corporation
  (99%) CV GP (Dutch) QRS 14-111, Inc. is owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A TSO-Hungary KFT, a Hungary
  limited liability company (Tesco) Hungary CPA 16 Netherlands CV8, a
  Netherlands limited partnership LABELS-BEN (DE) QRS 16-28 CPA 16 Netherlands
  CV is owned by CV GP (DUTCH) QRS 16-148, INC., a Delaware limited liability
  company (1%, general partner) and CPA 16 MERGER SUB INC. (99%, limited
  partner) CORPORATE PROPERTY ASSOCIATES 17- GLOBAL INCORPORATED, a Maryland
  corporation 7 This entity does not own any property. 8 This entity does not
  own any property. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership INC., a Delaware corporation (49%) GORZOW BEAVER
  17-3 B.V. CV GP (DUTCH) QRS 16-148, INC. is owned by CPA 16 MERGER SUB INC.
  (100%) LABELS-BEN (DE) QRS 16-28 INC. is owned by CPA 16 MERGER SUB INC.
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) GORZOW BEAVER 17-3 B.V. is owned by CPA 17 PAN-EUROPEAN
  HOLDING COOPERATIEF U.A., a Netherlands cooperative (100%) CPA 17
  PAN-EUROPEAN HOLDING COOPERATIEF U.A. is owned by CPA:17 LIMITED PARTNERSHIP,
  a Delaware limited partnership (approximately 100%) CPA:17 LIMITED
  PARTNERSHIP is owned by CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL
  INCORPORATED, a Maryland corporation (99.985%) and W.P. CAREY HOLDINGS LLC, a
  Delaware limited liability company which is owned by CAREY REIT II, INC., a Maryland
  corporation (50%) and W.P.C.I. HOLDINGS I LLC, a Delaware limited liability
  company. CAREY REIT II, INC is owned by WPC REIT Merger Sub Inc., a Maryland
  Corporation (100%) (51%) W.P. Carey Inc. (49%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership CP GAL FAIRFAX LLC (Dick’s Sporting Goods /
  Galyans) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA
  16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A CP GAL KENNESAW LLC (Dick’s Sporting Goods / Galyans)
  Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A CP GAL LEAWOOD LLC (Dick’s Sporting Goods) Delaware CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA 16
  LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC
  REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) CP GAL
  LOMBARD LLC (Dick’s Sporting Goods) Delaware CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A CP GAL PLAINFIELD, LLC (Dicks
  Sporting Goods) Delaware CP GAL (IN) QRS 16-61, INC., a Delaware corporation
  (0.1%) (general partner) CPA 16 MERGER SUB INC., a Maryland corporation (55%)
  CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED, a Maryland
  corporation (44.9%) CP GAL (IN) QRS 16-61, INC., a Delaware corporation is
  owned by CPA 16 MERGER SUB INC. (100%) CPA 16 MERGER SUB INC. is owned by CPA
  16 LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC
  is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) W.P. Carey Inc. (55.1%)
  CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED (44.9%) CUPS (DE) LP
  (Waddington) Delaware PLATES (DE) QRS 14-63, INC., a Delaware corporation (1%
  (general partner)) CPA 16 MERGER SUB INC., a PLATES (DE) QRS 14-63, INC. is
  owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Maryland corporation (99%) (approximately 100%)
  CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%) WPC HOLDCO LLC, a Maryland limited liability company
  is owned by W.P. Carey Inc., a Maryland corporation (100%) DELAWARE FRAME
  (TX), LP (Atrium (Frame)) Delaware FRAME (TX) QRS 14-25, INC., a Delaware
  corporation (.5% (general partner)) CPA 16 MERGER SUB INC., a Maryland
  corporation (99.5%) FRAME (TX) QRS 14-25, INC. is owned by CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A DELMO 11/12 (DE) LLC
  (Del Monte) Delaware DELMO (PA) QRS 12-10, a Pennsylvania business trust
  (50%) DELMO (PA) QRS 11-36, a Pennsylvania business trust (49.5%) DELMO (DE)
  QRS 11/12-1, INC., a Delaware corporation DELMO (PA) QRS 12-10 is owned by
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (.5%(manager)) WPC REIT Merger Sub Inc. is owned
  by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO
  LLC, a Maryland limited liability company is owned by W.P. Carey Inc., a
  Maryland corporation (100%) DELMO (PA) QRS 11-36 and DELMO (DE) QRS 11/12-1,
  INC. are indirect subsidiaries of CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland corporation
  (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company DES-TECH (TN) Limited Partnership (Career Education Corp -
  IADT) Delaware DES-TECH LP (TN) QRS 16- 50, INC., a Delaware corporation
  (99.9%) DES-TECH GP (TN) QRS 16- 49, INC., a Delaware corporation (0.1%)
  (general partner) DES-TECH LP (TN) QRS 16-50, INC. is owned by CPA 16 MERGER
  SUB INC. (100%) DES-TECH GP (TN) QRS 16-49, INC. is owned by CPA 16 MERGER
  SUB INC. (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Develop (TX) LP (US Home Corporation) Delaware
  POPCORN (TX) QRS 14-43, INC., a Delaware corporation (1% (general partner))
  CPA 16 MERGER SUB INC., a Maryland corporation (99%) POPCORN (TX) QRS 14-43,
  INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A DIY Poland Sp. z.o.o. (OBI Group) Poland Brelade Holdings Limited
  (Cyprus) (100%) Brelade Holdings Limited (Cyprus) is owned by POL- BEAVER
  LLC, a Delaware limited liability company (100%) POL-BEAVER LLC, a Delaware
  limited liability company is: (i) owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (25%) and CORPORATE PROPERTY ASSOCIATES 15, a Maryland
  corporation (75%); and (ii) is managed by BEAVER MM (POL) QRS 15-86, INC., a
  Delaware corporation which is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland corporation
  (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company WPC HOLDCO LLC, a Maryland limited liability company is
  owned by W.P. Carey Inc., a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) DRUG (AZ) QRS 14-42, INC. (Advance
  PCS-Caremark-CVS) Delaware CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A DSG LANDLORD (PA), LP (Dick’s Sporting Goods) Delaware
  DSG GP (PA) QRS 14-103, INC., a Delaware corporation (.1% (general partner))
  DSG LP (PA) TRUST, a Maryland business trust (99.9%) DSG GP (PA) QRS 14-103,
  INC. and DSG LP (PA) TRUST are each owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company N/A
  

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  DYNE (DE) LP (Metaldyne) Delaware METAL (DE) QRS 14-67, INC., a Delaware
  corporation (.5% (general partner)) ASSEMBLY (MD), a Maryland business trust
  (99.5%) METAL (DE) QRS 14-67, INC. and ASSEMBLY (MD). are each owned by CPA
  16 MERGER SUB INC. a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A Erwin
  Specht GmbH & Co. KG (Hellweg II) Germany Erwin Specht Verwactungs GmbH
  (0%; general partner) (General Partner) HELLWEG GmbH & Co. Vermogensverwaltungs
  KG (100%) Erwin Specht Verwactungs GmbH is owned by HELLWEG GmbH & Co.
  Vermogensverwaltungs KG (100%) HELLWEG GmbH & Co. Vermogensverwaltungs KG
  is owned by HLWG TWO (GER) LLC, a Delaware limited liability company (SEE
  BELOW) HLWG TWO (GER) LLC is owned by H2 INVESTOR (GER) QRS 14-104, LLC a
  Delaware limited liability company (33%), H2 INVESTOR (GER) QRS 16-100, INC.,
  Delaware corporation (27%) and H2 INVESTOR (GER) QRS 15091, INC., a Delaware
  corporation (40%) H2 INVESTOR (GER) QRS 14-104, LLC is owned by CPA: 17
  Limited Partnership, a Delaware limited W.P. CAREY INC. (67%) CORPORATE
  PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED (33%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership partnership (100%) H2 INVESTOR (GER) QRS 16-100,
  INC is owned by CPA Merger Sub Inc., a Maryland corporation (100%) CPA 16
  Merger Sub Inc. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) H2 INVESTOR (GER) QRS 15091, INC. is owned by Corporate Property
  Associates 15 Incorporated, a Maryland corporation CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland
  corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company FABRIC (DE) GP (IAC Soft Trim) Delaware
  LEATHER (DE) QRS 14-72, INC., a Delaware corporation (50%) VINYL (DE) QRS
  14-71, INC., a Delaware corporation (50%) Both intermediate subsidiaries are
  owned by CPA 16 MERGER SUB INC. a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) FILM (FL) QRS 14-44, Inc.
  (Carmike) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA
  16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A FINISTAR (CA-TX) LIMITED PARTNERSHIP (Finisar)
  Delaware FINISTAR GP (CA-TX) QRS 16- 21, INC., a Delaware corporation (1%)
  (general partner) FINISTAR LP (DE) QRS 16-29, INC., a Delaware corporation
  (99%) FINISTAR GP (CA-TX) QRS 16-21, INC. is owned by CPA 16 MERGER SUB INC.,
  a Maryland corporation (100%) FINISTAR LP (DE) QRS 16-29, INC. is owned by
  CPA 16 MERGER SUB INC. (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC,
  a Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company N/A
  

  

 

	
  

  	
  Entity Name Jurisdiction
  of Incorporation / Organization of Entity Entity Owner, Equity Interest and
  jurisdiction of Incorporation / Organization Intermediate Entity Owner and
  Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) Finit (FI)
  LLC (TietoEnator) Delaware TITO (FI) QRS 15-81, INC., a Delaware corporation
  (60%) (managing member) TITO (FI) QRS 16-6, INC., a Delaware corporation
  (40%) TITO (FI) QRS 15-81, INC., is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland corporation
  (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company TITO (FI) QRS 16-6, INC, is owned by CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A FIT (UT) QRS 14-92,
  Inc. (24 Hour Fitness (Utah)) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) FIT (TX) LP (24 Hour
  Fitness (Houston)) Delaware FIT (TX) TRUST, a Maryland business trust (99.9%)
  FIT (TX) GP QRS 12-60, INC., a Delaware corporation (.1% (general partner)) Both
  intermediate subsidiaries are owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name Jurisdiction
  of Incorporation / Organization of Entity Entity Owner, Equity Interest and
  jurisdiction of Incorporation / Organization Intermediate Entity Owner and
  Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership FOSS (NH) QRS 16-3, Inc. (Foss Manufacturing) Delaware
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A Freight
  (IL) LLC (Towne Air Freight) Delaware AIR (IL) QRS 14-48, INC., a Delaware
  corporation (1%) CPA 16 MERGER SUB INC., a Maryland corporation (99%) AIR
  (IL) QRS 14-48, INC. is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A FRO SPIN (NC) LLC (Frontier Spinning)
  Delaware FRO 16 (NC) LLC, a Delaware limited liability company (40%) FRO MAN
  MEMBER 17 (NC) LLC, a Delaware limited liability company (60%) (managing
  member) FRO 16 (NC) LLC is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub W.P. Carey Inc. (40%) CORPORATE PROPERTY ASSOCIATES 17 –
  GLOBAL INCORPORATED (60%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) FRO MAN MEMBER 17 (NC) LLC is owned
  by CPA: 17 LIMITED PARTNERSHIP, a Delaware limited partnership (100%) which
  is owned by W.P. CAREY HOLDINGS LLC, a Delaware limited liability company
  (0.15%) (Special General Partner) and CORPORATE PROPERTY ASSOCIATES 17 –
  GLOBAL INCORPORATED, a Maryland corporation (99.85%) GERB TOLLAND QRS (CT) 16
  INC. (Gerber Scientific) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A Greens (Finland) QRS 16-14, Inc.
  (Plantasgen - Finland) Delaware Greens Shareholder (Finland) QRS 16-16, INC.,
  a Delaware corporation (100%) Greens Shareholder (Finland) QRS 16-16, INC. is
  owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) 

  

 

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Hammer (DE) L.P. (True Value (Hammer)) Delaware
  HAMMER (DE) LP QRS 12-65, INC., a Delaware corporation (15%) HAMMER (DE) LP
  QRS 14-100, INC., a Delaware corporation (35%) HAMMER (DE) QRS 15-32, INC., a
  Delaware corporation (.5% (general partner)) HAMMER (DE) LP QRS 15-33, INC.,
  a Delaware corporation (49.5%) HAMMER (DE) LP QRS 12-65, INC and HAMMER (DE)
  LP QRS 14-100, INC. are each owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) HAMMER (DE) QRS 15-32, INC and HAMMER (DE) LP
  QRS 15-33, INC. are each owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by
  CPA 15 MERGER SUB INC., a Maryland corporation (100%) CPA 15 MERGER SUB INC.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company N/A HEF
  (NC-SC) QRS 14-86, Inc. (American Tire Distributors) Delaware CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA 16
  LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC
  REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  HELLWEG GmbH & Co. Vermogensverwaltungs KG (“PropCo”) (Hellweg II) Germany
  Shovel Management GmbH (0%; GP), HLWG TWO (GER) LLC, a Delaware limited
  liability company (89.9%) Drill GmbH and Co. KG (5.1%) Reinhold Semer9 (5%)
  Shovel Management GmbH is owned by HLWG TWO (GER) LLC (100%) Drill GmbH and
  Co. KG is owned by Hoe Management GmbH (0%; GP), HLWG TWO (GER) LLC (94.9%)
  and Reinhold Semer (5.1%) Hoe Management GmbH is owned by HLWG TWO (GER) LLC
  (94.8%) and Reinhold Semer (5.2%) HLWG TWO (GER) LLC is owned by H2 INVESTOR
  (GER) QRS 14-104 LLC, a Delaware limited liability company (33%), H2 INVESTOR
  (GER) QRS 16-100, INC., a Delaware corporation (27%) and H2 INVESTOR (GER)
  QRS 15-91, INC., a Delaware corporation (40%) H2 INVESTOR (GER) QRS 14-104
  LLC is owned by CPA:17 LIMITED PARTNERSHIP, a Delaware limited partnership (100%)
  CPA:17 LIMITED PARTNERSHIP is owned by CORPORATE PROPERTY ASSOCIATES 17 –
  GLOBAL INCORPORATED, a Maryland corporation (99.985% limited partner and
  general partner) and W.P. CAREY HOLDINGS LLC, a Delaware limited liability
  company (0.015% special general partner) W.P. CAREY HOLDINGS LLC is owned by
  CAREY REIT II, INC., a Maryland corporation (50%) and WPC REIT Merger Sub
  Inc., a Maryland corporation W.P. CAREY INC. (67%) CORPORATE PROPERTY
  ASSOCIATES 17 – GLOBAL INCORPORATED (33%) 9 Reinhold Semer, an individual, is
  not affiliated with W.P. Carey Inc. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (0.015% capital interest; 10% profits interest),
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%) WPC HOLDCO LLC, a Maryland limited liability company
  is owned by W.P. Carey Inc., a Maryland corporation (100%) H2 INVESTOR (GER)
  QRS 16-100, INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT MERGER SUB INC. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC is
  owned by W.P. Carey Inc., a Maryland corporation (100%) H2 INVESTOR (GER) QRS
  15-91, INC. is owned by Corporate Property Associates 15 Incorporated, a
  Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is
  owned by CPA 15 MERGER SUB INC., a Maryland corporation (100%) CPA 15 MERGER
  SUB INC. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership HLWG B NOTE PURCHASER (DE) LLC10 (Hellweg)
  Delaware CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (40%) CPA 16 MERGER SUB INC., a Maryland corporation (27%) CPA:17
  LIMITED PARTNERSHIP, a Delaware limited partnership (33%) CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland
  corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) CPA:17 LIMITED
  PARTNERSHIP is owned by CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED,
  a Maryland corporation (99.985% limited partner and general partner) and W.P.
  CAREY HOLDINGS LLC, a Delaware limited liability company (0.015% special
  general partner) W.P. CAREY HOLDINGS LLC is owned by CAREY REIT II, INC., a
  Maryland corporation (100%) CAREY REIT II, INC. is owned by WPC REIT MERGER
  SUB INC., a Maryland corporation (100%). W.P. CAREY INC. (67%) CORPORATE
  PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED (33%) 10 This entity does not
  own any property. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership HM BENEFITS (MI) QRS 16-18, INC. (Aetna)
  Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A HOTEL (MN) QRS 16-84, INC. (Hilton Hotel) Delaware CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) HOTEL OPERATOR (MN) TRS 16-87, INC.
  is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A HOTEL OPERATOR (MN) TRS 16-87, INC.11 Delaware CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) N/A N/A 11 Note: HOTEL OPERATOR (MN) TRS
  16-87, INC. leases the property from HOTEL (MN) QRS 16-84, INC. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (Hilton Hotel) HUNTWOOD (TX) LIMITED PARTNERSHIP
  (Huntsman) Delaware HUNTWOOD (TX) QRS 16-8, INC., a Delaware Corporation
  (0.1%) (General Partner) CPA 16 MERGER SUB INC., a Maryland corporation
  (99.9%) HUNTWOOD (TX) QRS 16-8, INC. is owned by CPA 16 MERGER SUB INC.
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A ICE (TX) QRS 12-29, INC (Versacold Texas). Texas CPA
  16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A
  IJOBBERS LLC, a Delaware limited liability company (Institutional Jobbers/Reinhart
  Food Service)) Delaware IJOBBERS (DE) QRS 14-41, INC., a Delaware corporation
  (100% (sole managing member)) IJOBBERS (DE) QRS 14-41, INC. is owned by CPA
  16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) IMAGE (NY) QRS 16-67, INC. (IIMAK) Delaware CPA
  16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A JEN
  (MA) QRS 12-54, INC. (Jen Coat) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation (100%) KSM CRESSKILL (NJ) QRS 16-
  80, INC. (Kings Supermarkets) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A KSM LIVINGSTON (NJ) QRS 16- 76, INC. (Kings
  Supermarkets) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A KSM MAPLEWOOD (NJ) QRS 16- 77, INC. (Kings
  Supermarkets) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  KSM MONTCLAIR (NJ) QRS 16- 78, INC. (Kings Supermarkets) Delaware CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%) WPC HOLDCO LLC, a Maryland limited liability company
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A KSM MORRISTOWN
  (NJ) QRS 16-79, INC. (Kings Supermarkets) Delaware CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A KSM SUMMIT (NJ) QRS 16-75, INC.
  (Kings Supermarkets) Delaware CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) Labrador (AZ) LP (PetsMart
  (DC)) Delaware TERRIER (AZ) QRS 14-78, INC., a Delaware corporation (1%
  (general partner)) CPA 16 MERGER SUB INC., a Maryland corporation (69%)
  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (30%)
  TERRIER (AZ) QRS 14-78, INC. is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED
  is owned by CPA 15 MERGER SUB INC., a Maryland corporation (100%) CPA 15 MERGER
  SUB INC. is owned by WPC HOLDCO LLC, a Maryland limited liability company N/A
  LEI (GER) QRS 16-134 LLC (Leipold) Delaware POLD (GER) QRS 16-133 LLC, a
  Delaware limited liability company (100%) POLD (GER) QRS 16-133 LLC is owned
  by CPA 16 MERGER SUB INC., a Maryland corporation (94%) and CPA16 GERMAN (DE)
  LIMITED PARTNERSHIP, a Delaware limited partnership (6%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership CPA16 GERMAN (DE) LIMITED PARTNERSHIP Is owned
  by CPA16 GERMAN GP (DE) QRS 16-155, INC., a Delaware corporation (0.1%) (GP),
  WPC REIT Merger Sub Inc., a Maryland corporation (5.9%) and CPA 16 MERGER SUB
  INC. (94%) CPA16 GERMAN GP (DE) QRS 16-155, INC. is owned by WPC REIT Merger
  Sub Inc. (100%). CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) Lincoln (DE) LP (Lincoln Tech Institute)
  Delaware LTI TRUST (MD), a Maryland business trust (99.5%) LTI (DE) QRS
  14-81, INC., a Delaware corporation (.5% (general partner)) LTI TRUST (MD)
  and LTI (DE) QRS 14-81, INC. are each owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation (100%) LINDEN (GER) LLC
  (LINDENMAIER) Delaware GEARBOX (GER) QRS 15-95, INC. a Delaware corporation
  (66.7%) (Managing Member) CHASSIS (GER) QRS 16-118, INC., a Delaware
  corporation (33.3%) GEARBOX (GER) QRS 15-95, INC. is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a
  Maryland corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  CHASSIS (GER) QRS 16-118, INC. is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) N/A
  Longboom Landlord (Finland) LLC (Mantsinen) Delaware LONGBOOM (FINLAND) QRS
  16-131, INC., a Delaware corporation (100%) LONGBOOM (FINLAND) QRS 16-131,
  INC. is owned by CPA 16 MERGER SUB INC. (100%) LONGBOOM FINANCE (FINLAND) QRS
  16-130, INC., a Delaware corporation, which made an intercompany loan to
  LONGBOOM LANDLORD (FINLAND), is owned by CPA 16 MERGER SUB INC. (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) Longboom Finance (Finland) QRS
  16-130, Inc.12 (Mantsinen) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) LPD (CT) QRS 16-132, INC. (Leipold (US)) Delaware CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub N/A 12 This entity does not own
  any property. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) LPORT (WA-TX) QRS 16-92,
  INC. (Lifeport) Delaware CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A LPORT 2 (WA) QRS 16-147, INC. (Lifeport 2008) Delaware
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership MAG-INFO(SC) QRS 16-74, INC. (InfoGlobal Solutions)
  Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A MCM (TN) LLC (Oberto Sausage Company) Delaware MCM MEMBER (TN) QRS
  16- 116, INC., a Delaware corporation (1%) MCM MANAGER (TN) QRS 16- 115,
  INC., a Delaware corporation (99%) (managing member) MCM MEMBER (TN) QRS
  16-116, INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) MCM MANAGER (TN) QRS 16-115, INC. is owned by CPA 16 MERGER SUB INC.,
  a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC,
  a Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A MCPA-MASS (TN) ASSOCIATES
  Tennessee GUITAR MASS (TN) QRS 14- 37, INC. (82.5%, managing GUITAR MASS (TN)
  QRS 14-36, INC. is owned by CPA 16 MERGER SUB INC. a Maryland corporation
  W.P. Carey Inc. (82.5% total ownership) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership (Gibson Guitar) venturer) MATHEWS MBE, LLC, a Tennessee
  limited liability company (17.5%)13 (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA 16
  LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC
  REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) MATHEWS MBE, LLC is owned
  by W&R INVESTMENTS LLC (99%) and MCTIM, INC. (1%) MATHEWS MBE, LLC
  (17.5%) 13 This entity is not affiliated with W.P. Carey Inc. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity Interest
  and jurisdiction of Incorporation / Organization Intermediate Entity Owner
  and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership MCPA-PLUS (TN) ASSOCIATES (Gibson Guitar) Tennessee
  GUITAR PLUS (TN) QRS 14- 37, INC. (82.5%, managing venturer) MATHEWS MP
  ASSOCIATES, LLC, a Tennessee limited liability company (17.5%)14 GUITAR PLUS
  (TN) QRS 14-37, INC. is owned by CPA 16 MERGER SUB INC. a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) MATHEWS MP ASSOCIATES, LLC is owned by W&R
  INVESTMENTS LLC, a Tennessee limited liability company (99%) and PLUSMC,
  INC., a Tennessee corporation (1%) W.P. Carey Inc. (82.5% total ownership)
  MATHEWS MP ASSOCIATES, LLC (17.5%) MEMPHIS HOTEL OPERATOR (TN) QRS 16-121,
  INC. 15 (Doubletree / Memphis Hotel) Delaware CPA 16 MERGER SUB INC.,
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company N/A
  14 This entity is not affiliated with W.P. Carey Inc. 15 MEMPHIS HOTEL
  OPERATOR (TN) QRS 16-121, INC. leases the property from CAREY WATERMARK 1
  LLC. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  MERI (NC) LLC (Meridian Automotive) Delaware MERI (NC) MM QRS 14-98, INC., a
  Delaware corporation (.5% (managing member)) CPA 16 MERGER SUB INC., a
  Maryland corporation (99.5%) MERI (NC) MM QRS 14-98, INC. is owned by CPA 16
  MERGER SUB INC. a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned
  by CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA
  16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%) WPC HOLDCO LLC, a Maryland limited liability company
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A MET WST (UT)
  QRS 16-97, INC. (Waste Management of Utah) Delaware CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership MIAP (MN) LLC (Vacant) Delaware APPLIED FOUR
  (DE) QRS 14- 75, Inc., a Delaware limited liability company (1%) (managing
  member) and CPA 16 MERGER SUB INC., a Maryland corporation (99%) APPLIED FOUR
  (DE) QRS 14-75, INC. is owned by CPA 16 MERGER SUB INC. (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A MK Landlord (DE) Limited Partnership (MetoKote – U.S.) Delaware
  MK-GP (DE) QRS 16-43, INC., a Delaware corporation (1%) (general partner)
  MK-LP (DE) QRS 16-44, INC., a Delaware corporation (99%) MK-GP (DE) QRS
  16-43, INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  MK-LP (DE) QRS 16-44, INC. is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A MK (MEXICO) QRS 16-48, INC. Delaware CPA 16
  MERGER SUB INC., a CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (MetoKote – Mexico) Maryland corporation (100%)
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) MK-NOM (ONT), Inc. (MetoKote (Canada)) Ontario, Canada CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) MK (NY) TRUST, a New York Grantor
  Trust is beneficially owned by MK-BEN (DE) LIMITED PARTNERSHIP; a Delaware
  limited partnership (100%) MK-BEN (DE) Limited Partnership, a Delaware
  limited partnership is owned by MK GP BEN (DE) QRS 16-45, Inc., a Delaware
  corporation (1%) (General Partner) and MK LP BEN (DE) QRS 16-46, Inc., a
  Delaware corporation (99%). MK GP BEN (DE) QRS 16-45, Inc. is owned by CPA 16
  MERGER SUB INC., a Maryland corporation. (100%) MK LP BEN (DE) QRS 16-46,
  Inc. is owned by CPA 16 MERGER SUB INC., a Maryland corporation. (100%) CPA
  16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership More Applied Utah (UT) LLC (Zero Manufacturing)
  Delaware Applied Utah (UT) QRS 14-76, Inc., a Delaware corporation (1%) CPA
  16 MERGER SUB INC. a Maryland corporation (99%) Applied Utah (UT) QRS 14-76,
  Inc. is owned by CPA 16 MERGER SUB INC. a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A More Applied Four (DE) LLC (JDS Uniphase) Delaware Applied Four
  (DE) QRS 14-75, Inc., a Delaware corporation (1%) CPA 16 MERGER SUB INC. a
  Maryland corporation (99%) Applied Four (DE) QRS 14-75, Inc. is owned by CPA 16
  MERGER SUB INC. a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned
  by CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA
  16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%) WPC HOLDCO LLC, a Maryland limited liability company
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A MOVIE (VA) QRS
  14-24, INC. (Richmond I Cinema LLC) Delaware CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) MPH (UK) QRS 16-41, Inc.
  (John McGavigan Limited) Delaware KPH (UK) QRS 16-642, INC. a Delaware
  corporation (100%) KPH (UK) QRS 16-642, INC. is owned by CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A NEONATAL FINLAND, INC.
  (Perkin Elmer, Inc./Wallac OY Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation (100%) NETWORK (UT) LLC (Lindon)
  Delaware BANDWIDTH (UT) QRS 14-58, INC., a Delaware corporation (0.01%) CPA
  16 MERGER SUB INC., a Maryland corporation (99.99%) BANDWIDTH (UT) QRS 14-58,
  INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A NORD (GA) QRS 16-98, INC. (Nordic Cold Storage) Delaware CPA 16
  MERGER SUB INC., Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned
  by CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA
  16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%),
  WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited
  liability company (100%) WPC HOLDCO LLC, a Maryland limited liability company
  is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A NR (LA) QRS
  14-95, Inc. (New Park Resources) Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) ORB (MO) QRS 12-56, Inc.
  (Henkel) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA
  16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A PACPRESS (IL-MI) QRS 16-114, INC. (PACIFIC PRESS)
  Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Pallet (France) Sarl France Dfence (Belgium) 16
  Sprl (100%) Dfence (Belgium) 16 Sprl is owned by Dfend 16 LLC, a Delaware
  limited liability company (1 share) and CPA 16 MERGER SUB INC., a Maryland
  corporation (8270 shares) Dfend 16 LLC is owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A PARTS (DE) QRS 14-90, Inc.
  (Katun (US)) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A PG (MULTI-16) L.P. Delaware PG (MULTI-16) QRS 16-7,
  INC., a Delaware corporation (1%) PG (MULTI-16) QRS 16-7, INC. is owned by
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) N/A` 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (Ply Gem – U.S.) (general partner) PG (MULTI)
  TRUST, a Maryland business trust (99%) PG (MULTI) TRUST is owned by CPA 16
  MERGER SUB INC. (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) PG-NOM (Alberta), Inc.16 (CWD
  Windows & Doors (PLY- GEM)) Alberta, Canada CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) PG CALGARY (DE) TRUST, a New York Grantor Trust
  is beneficially owned by PG-BEN (CAN) QRS 16-9, INC., a Delaware corporation
  (100%) PG-BEN (CAN) QRS 16-9, INC. is owned by CPA 16 MERGER SUB INC. (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A 16 Note: PG CALGARY (DE) TRUST, a New York Grantor
  Trust is the beneficial owner of the property. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Plants (Sweden) QRS 16-13, Inc. (Plantasgen -
  Sweden) Delaware Plants Shareholder (Sweden) QRS 16-15, Inc., a Delaware
  corporation (100%) Plants Shareholder (Sweden) QRS 16-15, Inc. is owned by
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A
  Plastic II (IL) LLC (Rexam (PRECISE II)) Delaware Plastic II (IL) QRS 16-27,
  Inc., a Delaware corporation (100%) Plastic II (IL) QRS 16-27, Inc. is owned
  by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB
  INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Pohj Landlord (Finland) LLC (Pohjola) Delaware
  POHJ MANAGING MEMBER (FINLAND) QRS 16-20, INC., a Delaware corporation (40%)
  (Managing Member) POHJ MEMBER (FINLAND) QRS 15-82, INC., a Delaware
  corporation (60%) POHJ MANAGING MEMBER (FINLAND) QRS 16- 20, INC. is owned by
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) POHJ
  MEMBER (FINLAND) QRS 15-82, INC. is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by
  CPA 15 MERGER SUB INC., a Maryland corporation (100%) CPA 15 MERGER SUB INC.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company N/A POLY
  (MULTI) LIMITED PARTNERSHIP (Dura-Line) Delaware POLY GP (MULTI) QRS 16-35,
  INC., a Delaware corporation (0.1%) (general partner) POLY LP (MD) TRUST, a
  Maryland business trust (99.9%) POLY GP (MULTI) QRS 16-35, INC. is owned by
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) POLY LP (MD) TRUST is
  owned by CPA 16 MERGER SUB INC. (100%) CPA 16 MERGER SUB INC. is owned by CPA
  16 LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC
  is owned by WPC REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) Ports (Finland) LLC (John
  Nurmimen) Delaware PORTS (Finland) QRS 16-63, INC., a Delaware corporation (100%)
  PORTS (Finland) QRS 16-63, INC. is owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership PRIMO (MS) QRS 16-94, INC. (Primos - Optronics)
  Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A Prints (UK) QRS 16-1, Inc. (Polestar Petty Limited) Delaware MAGS
  (UK) QRS 16-2, INC., a Delaware corporation (100%) MAGS (UK) QRS 16-2, INC.
  is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A Projector (FL) QRS 14-45, Inc. (Rave (Port St. Lucie)) Delaware
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) PROVO (UT) QRS 16-85, INC. (Provo
  Craft & Novelty) Delaware CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A PWE (MULTI) QRS 14-85, Inc. (JM Eagle) Delaware CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership QRS 14-Paying Agent, Inc.17 Delaware CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A QRS
  16-Global Paying Agent, Inc.18 Delaware CPA 16 MERGER SUB INC., a Maryland
  corporation CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A RAD-MON (VA-IN) LLC (Moog Inc.) Delaware APPLIED FOUR
  (DE) QRS 14- 75, Inc., a Delaware limited liability company (1%) (managing
  member) and CPA APPLIED FOUR (DE) QRS 14-75, INC. is owned by CPA 16 MERGER
  SUB INC. (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 N/A 17 This entity
  does not own any property. 18 This entity does not own any property. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership 16 MERGER SUB INC., a Maryland corporation (99%)
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) Reyhold (DE) QRS 16-32,
  Inc. Delaware CPA 16 MERGER SUB INC., a Maryland corporation CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%), CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%), WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A RI (CA) QRS 12-59, INC. (Breg) Delaware CPA 16 MERGER SUB INC., a
  Maryland corporation CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%), CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%), WPC HOLDCO LLC, a Maryland limited liability N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) RRC (TX) LP (Rave Reviews Hickory Creek, TX) Delaware RRC
  (TX) GP QRS 12-61, INC., a Delaware corporation (.5% (general partner)) RRC
  (TX) TRUST, a Maryland business trust (99.5%) RRC (TX) GP QRS 12-61, INC. and
  RRC (TX) TRUST are each owned by CPA 16 MERGER SUB INC., a Maryland
  corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware
  limited liability company (approximately 100%) CPA 16 LLC is owned by WPC
  REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) N/A SHEP (KS-OK) QRS 16-113, Inc. (Sheplers)
  Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A SHO LANDLORD (FL) QRS 16- 104, INC. Delaware CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (SOHO House) CPA 16 LLC is owned by WPC REIT
  Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is
  owned by WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC
  HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey Inc.,
  a Maryland corporation (100%) SFCO (GA) QRS 16-127, Inc. (Schwan’s Food
  Company) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA
  16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A SM (NY) QRS 14-93, INC. (GKN Aerospace) Delaware CPA
  16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership SPEED (NC) QRS 14-70, INC. (UTI Nascar Technical
  Institute ) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A STEELS (UK) QRS 16-58, INC. (Edgen Murray Europe)
  Delaware PIPES (UK) QRS 16-59, INC., a Delaware corporation (100%) PIPES (UK)
  QRS 16-59, INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A SUN TWO (SC) QRS 12-69, INC. (Sunland Distribution)
  Delaware SUN (SC) QRS 12-68, INC., a Delaware corporation (100%) SUN (SC) QRS
  12-68, INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) SUNNY CHIP 14 LLC (66 2/3
  tenant in common interest with SUNNY CHIP 15 LLC (33 1/3 tenant in common
  interest) (Advanced Micro Devices) Delaware SUNNY CHIP 14 LLC: SEMI (CA) QRS
  12-45, INC., a Delaware corporation (50% (managing member)) and CONDUCTOR
  (CA) QRS 14-11, INC., a Delaware corporation (50%) SUNNY CHIP 15 LLC:
  Delaware Chip LLC, a Delaware limited liability company (100%) SEMI (CA) QRS
  12-45, INC. and CONDUCTOR (CA) QRS 14-11, INC. are each owned by CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) Delaware
  Chip LLC is owned by MICRO (CA) QRS 11-43, INC., a Delaware corporation
  (100%) MICRO (CA) QRS 11-43, INC. is owned by CIP ACQUISITION INC., a
  Maryland corporation (100%) CIP ACQUISITION INC. is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a
  Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership CPA 15 MERGER SUB INC. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  TECH LANDLORD (GER) LLC (Actebis Peacock GmbH) Delaware TECH (GER) QRS
  16-144, INC., a Delaware corporation (30%) Tech (GER) 17-1 B.V., a Dutch B.V.
  (70%) (Managing Member) TECH (GER) QRS 16-144, INC. is owned by CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA 16
  LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC
  REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) Tech (GER) 17-1 B.V. is
  owned by CPA 17 PAN- EUROPEAN HOLDING COOPERATIEF U.A., a Cooperative formed
  under the laws of the Netherlands (100%) CPA 17 PAN-EUROPEAN HOLDING COOPERATIEF
  U.A. is owned by CPA: 17 LIMITED PARTNERSHIP, a Delaware limited partnership
  (99%) and CPA 17 INTERNATIONAL HOLDING AND FINANCING LLC, a Delaware limited
  liability company (1%) CPA: 17 LIMITED PARTNERSHIP is owned by W.P. CAREY
  HOLDINGS LLC, a Delaware limited liability company (0.015% - 10%) and
  CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED, a Maryland
  corporation (89% - W.P. Carey Inc. (30%) CORPORATE PROPERTY ASSOCIATES 17 –
  GLOBAL INCORPORATED (70%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership 99.985%) CPA 17 INTERNATIONAL HOLDING AND
  FINANCING LLC is owned by CPA: 17 LIMITED PARTNERSHIP, a Delaware limited
  partnership (100%) W.P. CAREY HOLDINGS LLC is owned by CAREY REIT II, INC., a
  Maryland corporation (100%) which is owned by W.P. CAREY Inc. a Maryland
  corporation(100%) Teeth Landlord (Finland) LLC (Palodex Group Oy) Delaware
  TEETH MEMBER (FINLAND) QRS 16-107 INC., a Delaware corporation (100%) TEETH
  MEMBER (FINLAND) QRS 16-107 INC. is owned by CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) TEETH FINANCE (FINLAND) QRS 16-106, INC., a
  Delaware corporation is owned by CPA 16 MERGER SUB INC. (100%) CPA 16 MERGER
  SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland
  corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  N/A TELC (NJ) QRS 16-30, INC. (Telcordia) Delaware CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) TEL (VA) QRS 12-15, INC.
  (Telos) Virginia CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A TFARMA (CO) QRS 16-93, INC. (Tolmar Technofarma) Delaware CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Thal Dfence Conflans SCI (Thales) France BBA-1
  Sarl (France) (99.9%) BBA-2 Sarl (France) (0.1%) BBA-2 Sarl is owned by BBA-1
  Sarl (100%) BBA-1 Sarl is owned by Dfence (Belgium) 15&16 Sprl (100%)
  Dfence (Belgium) 15&16 Sprl is owned by Dfence (Belgium) 16 Sprl (35%) and
  Dfence (Belgium) 15 Sprl (65%) Dfence (Belgium) 16 Sprl is owned by Dfend 16
  LLC, a Delaware limited liability company (1 share) and CPA 16 MERGER SUB
  INC., a Maryland corporation (8270 shares) Dfend 16 LLC is owned by CPA 16
  MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) Dfence
  (Belgium) 15 Sprl (Belgium) is owned by CORPORATE PROPERTY ASSOCIATES 15
  INCORPORATED, a Maryland corporation (99.99%) and Dfend 15 LLC, a Delaware
  limited liability company (0.01%) Dfend 15 LLC is owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity Interest
  and jurisdiction of Incorporation / Organization Intermediate Entity Owner
  and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned
  by CPA 15 MERGER SUB INC., a Maryland corporation (100%) CPA 15 MERGER SUB
  INC. is owned by WPC HOLDCO LLC, a Maryland limited liability company THEATRE
  (DE) QRS 14-14, INC. (Production Resources Group (NV)) Delaware CPA 16 MERGER
  SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by
  CPA 16 LLC, a Delaware limited liability company (approximately 100%) CPA 16
  LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC
  REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A Tissue Sarl (Prefecture
  de Police) France Dfence (Belgium) 16 Sprl (Belgium) (50%) Dfence (Belgium)
  15 Sprl (Belgium) (50%) Dfence (Belgium) 16 Sprl is owned by Dfend 16 LLC, a
  Delaware limited liability company (1 share) and CPA 16 MERGER SUB INC., a
  Maryland corporation (8270 shares) Dfend 16 LLC is owned by CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) Dfence
  (Belgium) 15 Sprl (Belgium) (50%) is owned by CORPORATE PROPERTY ASSOCIATES
  15 INCORPORATED, a Maryland corporation (99.99%) and Dfend 15 LLC, a Delaware
  limited liability company (0.01%) Dfend 15 LLC is owned by CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE PROPERTY
  ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a Maryland
  corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company Toner (DE) QRS 14-96, Inc. (Katun /
  Netherlands) Delaware CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A Trucks (France) Sarl (Fraikin) France Dfence (Belgium)
  16 Sprl (Belgium) (100%) Dfence (Belgium) 16 Sprl is owned by Dfend 16 LLC, a
  Delaware limited liability company (1 share) and CPA 16 MERGER SUB INC., a
  Maryland corporation (8270 shares) Dfend 16 LLC is owned by CPA 16 MERGER SUB
  N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) TR-VSS (MI) QRS 16-90, Inc. (TRW) Delaware CPA 16 MERGER SUB INC., a
  Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a
  Delaware limited liability company (approximately 100%) CPA 16 LLC is owned
  by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT Merger
  Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability company
  (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P.
  Carey Inc., a Maryland corporation (100%) N/A TSO-Hungary KFT (Tesco) Hungary
  LABELS-BEN (DE) ORS 16-28, INC., a Delaware corporation (49%) GORZOW BEAVER
  17-3 B.V. (51%) LABELS-BEN (DE) ORS 16-28, INC. is owned by CPA 16 MERGER SUB
  INC., a Maryland corporation. (100%) CPA 16 MERGER SUB INC. is owned by CPA
  16 LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC
  is owned by WPC REIT Merger Sub W.P. Carey Inc. (49%) CORPORATE PROPERTY
  ASSOCIATES 17 – GLOBAL INCORPORATED (51%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) GORZOW BEAVER 17-3 B.V. is
  owned by CPA 17 PAN-EUROPEAN HOLDING COOPERATIEF U.A., a Netherlands
  cooperative (100%) CPA 17 PAN-EUROPEAN HOLDING COOPERATIEF U.A., a
  Netherlands cooperative is owned by CPA: 17 LIMITED PARTNERSHIP, a Delaware
  limited partnership (99%) and CPA 17 INTERNATIONAL HOLDING AND FINANCING LLC,
  a Delaware limited liability company (1%) CPA 17 INTERNATIONAL HOLDING AND
  FINANCING LLC is owned by CPA: 17 LIMITED PARTNERSHIP (100%) CPA: 17 LIMITED
  PARTNERSHIP is owned by CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL
  INCORPORATED, a Maryland corporation (90%) and W.P. CAREY HOLDINGS LLC, a
  Delaware limited liability company (10%). W.P. CAREY HOLDINGS LLC is owned by
  CAREY REIT II, INC., a Maryland corporation (100%) which is owned by W.P.
  Carey Inc., a Maryland corporation(100%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership UH STORAGE (DE) LIMITED PARTNERSHIP (Mercury
  Partners-UHaul) Delaware Stor-Move UH 14 Business Trust, a Massachusetts
  Business Trust (11.54%) Store-Move UH 15 Business Trust, a Massachusetts
  Business Trust (57.19%) UH STORAGE GP (DE) QRS 15-50, INC., a Delaware
  corporation (0.50%) (General Partner) Stor-Move UH 16 Business Trust, a
  Massachusetts Business Trust (30.77%) Stor-Move UH 14 Business Trust is owned
  by CPA:17 LIMITED PARTNERSHIP, a Delaware limited partnership (100%) CPA:17
  LIMITED PARTNERSHIP is owned by CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL
  INCORPORATED, a Maryland corporation (99.985% limited partner and general
  partner) and W.P. CAREY HOLDINGS LLC, a Delaware limited liability company
  (0.015% special general partner) W.P. CAREY HOLDINGS LLC is owned by CAREY
  REIT II, INC., a Maryland corporation (50%) and W.P.C.I. Holdings I LLC, a
  Delaware limited liability company (50%) W.P.C.I. Holdings I LLC is owned by
  CAREY REIT II, INC. (near 100%), which is owned by W.P. Carey Inc., a
  Maryland corporation (approximately 100%) Store-Move UH 15 Business Trust is
  owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland
  corporation (100%) UH STORAGE GP (DE) QRS 15-50, INC. is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a
  Maryland corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC,
  a Maryland limited liability company WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  Stor-Move UH 16 Business Trust is owned by CPA 16 MERGER SUB INC., a Maryland
  corporation CORPORATE PROPERTY ASSOCIATES 17 INCORPORATED (11.54%) W.P. CAREY
  INC. (88.46%) 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) UK Panel LLC (BLP UK Limited / BA Kitchen Components) Delaware
  Panel (UK) QRS 14-54, Inc., a Delaware corporation (100%) Panel (UK) QRS
  14-54, Inc. is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) N/A URSA (VT) QRS 12-30, Inc. (Vermont Teddy Bear) Vermont
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership (100%) WPC HOLDCO LLC, a Maryland limited
  liability company is owned by W.P. Carey Inc., a Maryland corporation (100%)
  URUBBER (TX) LIMITED PARTNERSHIP (Utex) Delaware RUBBERTEX (TX) QRS 16-68,
  INC., a Delaware corporation (1%) (General Partner) SEALTEX (DE) QRS 16-69,
  INC., a Delaware corporation (99%) RUBBERTEX (TX) QRS 16-68, INC. is owned by
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) SEALTEX (DE) QRS 16-69,
  INC. is owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A UTI-SAC (CA) QRS 16-34, Inc. (UTI of Northern California) Delaware
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) VALVES GERMANY (DE) QRS 16-64 LLC (Hilite Germany GmbH
  & CO. KG) Delaware VALVES MEMBER GERMANY (DE) QRS 16-65 LLC, a Delaware
  limited liability company VALVES MEMBER GERMANY (DE) QRS 16-65 LLC is owned
  by CPA16 GERMAN (DE) LIMITED PARTNERSHIP, a Delaware limited partnership (6%)
  and CPA 16 MERGER SUB INC., a Maryland corporation (94%) CPA16 GERMAN (DE)
  LIMITED PARTNERSHIP Is owned by CPA16 GERMAN GP (DE) QRS 16-155, INC., a
  Delaware corporation (0.1%) (GP), WPC REIT Merger Sub Inc., a Maryland
  corporation (5.9%) and CPA 16 MERGER SUB INC. (94%) CPA16 GERMAN GP (DE) QRS
  16-155, INC. is owned by WPC REIT Merger Sub Inc. (100%). CPA 16 MERGER SUB
  INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A WEGELL GmbH & Co. KG (Hellweg I) Germany Wegell Verwaltungs
  GmbH (0%) (General Partner) WEG (GER) QRS 15-83, INC., a Delaware corporation
  (75%) ELL (GER) QRS 16-37, INC., a Wegell Verwaltungs GmbH is owned by WEG
  (GER) QRS 15-83, INC. (100%) WEG (GER) QRS 15-83, INC. is owned by CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Delaware corporation (25%) SUB INC., a Maryland
  corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO LLC, a
  Maryland limited liability company ELL (GER) QRS 16-37, INC. is owned by CPA
  16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is
  owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland
  limited liability company (100%) WPC HOLDCO LLC, a Maryland limited liability
  company is owned by W.P. Carey Inc., a Maryland corporation (100%) Windough
  LOT (DE) LP (Atrium (Windough Lot)) Delaware DOUGH (DE) QRS 14-77, INC., a
  Delaware corporation (.5% (general partner)) DOUGH (MD), a Maryland Business
  Trust (99.5%) Both intermediate subsidiaries are owned by CPA 16 MERGER SUB
  INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC. is owned by CPA 16
  LLC, a Delaware limited liability company (approximately 100%) CPA 16 LLC is
  owned by WPC REIT Merger Sub Inc., a Maryland corporation (100%), WPC REIT
  Merger Sub Inc. is owned by WPC HOLDCO LLC, a Maryland limited liability
  company (100%) WPC HOLDCO LLC, a Maryland limited liability company is owned
  by W.P. Carey Inc., a Maryland corporation (100%) N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership Windough (DE) LP (Atrium (Windough)) Delaware
  DOUGH (DE) QRS 14-77, INC., a Delaware corporation (.5% (general partner))
  DOUGH (MD), a Maryland business trust (99.5%) Both intermediate subsidiaries
  are owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A WIRELESS (TX) LP19 (Nortel Networks) Delaware WIRELINE (TX) QRS
  14-83, INC., a Delaware corporation (1% (general partner)) NOR (MD), a
  Maryland business trust (99%) WIRELINE (TX) QRS 14-83, INC. and NOR (MD) are
  each owned by CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16
  MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland N/A 19 This
  entity does not own any property. 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership corporation (100%) Wrench (DE) Limited
  Partnership (True Value (Wrench)) Delaware PLIERS (DE) TRUST, a Maryland
  business trust (15%) DRILL (DE) TRUST, a Maryland business trust (35%) WRENCH
  (DE) QRS 15-31, INC., a Delaware corporation (.5% (general partner)) WRENCH
  (DE) TRUST, a Maryland business trust (49.5%) PLIERS (DE) TRUST and DRILL
  (DE) TRUST, are each owned by CPA 16 MERGER SUB INC., a Maryland corporation
  (100%) CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited
  liability company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger
  Sub Inc., a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by
  WPC HOLDCO LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a
  Maryland limited liability company is owned by W.P. Carey Inc., a Maryland
  corporation (100%) WRENCH (DE) QRS 15-31, INC. and WRENCH (DE) TRUST are each
  owned by CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED (100%) CORPORATE
  PROPERTY ASSOCIATES 15 INCORPORATED is owned by CPA 15 MERGER SUB INC., a
  Maryland corporation (100%) CPA 15 MERGER SUB INC. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company N/A (Orgil Corporation) Delaware
  CPA 16 MERGER SUB INC., a Maryland corporation (100%) CPA 16 MERGER SUB INC.
  is owned by CPA 16 LLC, a Delaware limited liability company (approximately
  100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a Maryland corporation
  (100%), WPC REIT Merger Sub Inc. is owned by WPC N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint Venture
  Percentage Ownership HOLDCO LLC, a Maryland limited liability company (100%)
  WPC HOLDCO LLC, a Maryland limited liability company is owned by W.P. Carey
  Inc., a Maryland corporation (100%) XPD (NJ) LLC (Xpedite Systems) Delaware
  XPD Member (NJ) QRS 16-12, Inc., a Delaware corporation (99.5%) (Managing
  Member) CPA 16 MERGER SUB INC., a Maryland corporation (0.5%) XPD Member (NJ)
  QRS 16-12, Inc. is owned by CPA 16 MERGER SUB INC. (100%) CPA 16 MERGER SUB
  INC. is owned by CPA 16 LLC, a Delaware limited liability company
  (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc., a
  Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC HOLDCO
  LLC, a Maryland limited liability company (100%) WPC HOLDCO LLC, a Maryland
  limited liability company is owned by W.P. Carey Inc., a Maryland corporation
  (100%) N/A ZYLINDERBLOCK (GER) LLC (G&S Germany) Delaware Engines (GER)
  QRS 15-90, Inc., a Delaware corporation (50%) Blocks (GER) QRS 16-89, Inc., a
  Delaware corporation (50%) (Managing Member) Engines (GER) QRS 15-90, Inc. is
  owned by Corporate Property Associates 15 Incorporated, a Maryland
  corporation (100%) CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED is owned by
  CPA 15 MERGER SUB INC., a Maryland corporation (100%) CPA 15 MERGER SUB INC.
  is owned by WPC HOLDCO LLC, a Maryland limited liability company WPC HOLDCO
  LLC, a Maryland limited liability company is owned by W.P. Carey Inc., a
  Maryland corporation (100%) Blocks (GER) QRS 16-89, Inc. is owned by CPA 16
  N/A 

  

 

	
  

  	
  Entity Name
  Jurisdiction of Incorporation / Organization of Entity Entity Owner, Equity
  Interest and jurisdiction of Incorporation / Organization Intermediate Entity
  Owner and Ultimate Parent and Equity Interest Overall Investment Joint
  Venture Percentage Ownership MERGER SUB INC., a Maryland corporation (100%)
  CPA 16 MERGER SUB INC. is owned by CPA 16 LLC, a Delaware limited liability
  company (approximately 100%) CPA 16 LLC is owned by WPC REIT Merger Sub Inc.,
  a Maryland corporation (100%), WPC REIT Merger Sub Inc. is owned by WPC
  HOLDCO LLC, a Maryland limited liability company (100%) Miscellaneous
  Subsidiaries: (Subsidiaries that are not property owners and/or are going to
  be dissolved) CC (Multi) GP QRS 12-62, Inc. CC (Multi) Limited Partnership CC
  (Multi) Trust GERB (CT) QRS 14-73, Inc. H2 Lender (GER) QRS 16-101, Inc. H2
  Lender WPC LLC HINCK 15 LP (DE) QRS 15-84, INC. HINCK 16 LP (DE) QRS 16-47,
  INC. HINK (DE) QRS 16-36, INC. HLWG Two Lender Sarl HLWG Two TRS SARL NURSERY
  (WA) QRS 16-135, INC. 

  

 

 

	
  

  	
  Schedule
  5.12(c) Loan Party EIN Guarantors 620 Eighth Investor NYT (NY) QRS 16-150,
  Inc. 80-0334693 AEROBIC (MO) LLC 13-4146362 AUTOPRESS (GER) LLC 26-0802656
  BBRANDS (MULTI) QRS 16-137, INC. 26-1768177 BEVERAGE (GER) QRS 16-141 LLC
  26-2104614 BFS (DE) LP 01-0560593 BOLT (DE) LIMITED PARTNERSHIP 30-0135154
  BSL CALDWELL (NC) LLC 13-4107706 BST TORRANCE LANDLORD (CA) QRS 14-109, INC.
  26-0508359 CARDS LIMITED LIABILITY COMPANY 13-3863176 CASTING LANDLORD (GER)
  ORS 16-109 LLC 20-8958305 CBS (PA) QRS 14-12, INC. 13-4035023 CPA 16 LLC
  45-1826365 CPA 16 MERGER SUB INC. 45-1586170 CUPS (DE) LP 52-2308505 DELAWARE
  FRAME(TX), LP 13-4087161 DEVELOP (TX) LP 13-4137847 IJOBBERS LLC 13-4135700
  JEN (MA) QRS 12-54, INC. 52-2327401 LEI (GER) QRS 16-134 LLC 26-2145373 LINCOLN
  (DE) LP 52-2357703 LONGBOOM FINANCE (FINLAND) QRS 16-130, INC. 26-1521394 LPD
  (CT) QRS 16-132, INC. 26-2105333 MCM (TN) LLC 26-0505404 MERI (NC) LLC
  13-4140325 MIAP (MN) LLC 45-2044305 MK (MEXICO) QRS 16-48, INC. 20-2774449
  MORE APPLIED UTAH (UT) LLC 52-2346502 NETWORK (UT) LLC 52-2282819 PACPRESS
  (IL-MI) QRS 16-114, INC. 26-0489900 PARTS (DE) QRS 14-90, INC. 04-3642121 PWE
  (MULTI) QRS 14-85, INC. 52-2363842 REYHOLD (DE) QRS 16-32, INC. 20-2237465
  RRC (TX) LP 02-0602897 SHO LANDLORD (FL) QRS 16-104, INC. 90-0420985 SM (NY)
  QRS 14-93, INC. 02-0602803 STOR-MOVE UH 15 BUSINESS TRUST 06-6539734
  STOR-MOVE UH 16 BUSINESS TRUST 06-6539735 SUN TWO (SC) QRS 12-69, INC.
  20-3956810 TEL (VA) QRS 12-15, INC. 13-3875267 UK PANEL LLC 13-4146355 URSA
  (VT) QRS 12-30, INC. 13-3956542 WINDOUGH (DE) LP 52-2357191 WINDOUGH LOT (DE)
  LP 26-1434191 RI (CA) QRS 12-59, INC. 04-3667961

  

 

	
  

  	
  Type of
  Organization State of Formation Corporation Delaware Limited Liability
  Company Delaware Limited Liability Company Delaware Corporation Delaware
  Limited Liability Company Delaware Limited Partnership Delaware Limited
  Partnership Delaware Limited Liability Company Delaware Corporation Delaware
  Limited Liability Company Delaware Limited Liability Company Delaware
  Corporation Delaware Limited Liability Company Delaware Corporation Maryland
  Limited Partnership Delaware Limited Partnership Delaware Limited Partnership
  Delaware Limited Liability Company Delaware Corporation Delaware Limited
  Liability Company Delaware Limited Partnership Delaware Corporation Delaware
  Corporation Delaware Limited Liability Company Delaware Limited Liability
  Company Delaware Limited Liability Company Delaware Corporation Delaware
  Limited Liability Company Delaware Limited Liability Company Delaware
  Corporation Delaware Corporation Delaware Corporation Delaware Corporation
  Delaware Limited Partnership Delaware Corporation Delaware Corporation
  Delaware Business Trust Massachusetts Business Trust Massachusetts
  Corporation Delaware Corporation Virginia Limited Liability Company Delaware
  Corporation Vermont Limited Partnership Delaware Limited Partnership Delaware
  Corporation Delaware

  

 

	
  

  	
  Chief Executive
  Office and Principal Place of Business c/o W.P. Carey Inc., 50 Rockefeller
  Plaza, New York, NY 10019 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New
  York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020
  c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey
  Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller
  Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New
  York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020
  c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey
  Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50
  Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller
  Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New
  York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020
  c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey
  Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50
  Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller
  Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New
  York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020
  c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey
  Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50
  Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller
  Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New
  York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020
  c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey
  Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50
  Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller
  Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New
  York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020
  c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey
  Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50
  Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller
  Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New
  York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020
  c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey
  Inc., 50 Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50
  Rockefeller Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller
  Plaza, New York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New
  York, NY 10020 c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020
  c/o W.P. Carey Inc., 50 Rockefeller Plaza, New York, NY 10020

  

 

 

	
  

  	
  Schedule 7.02 -
  Existing Indebtedness (Unsecured) None.

  

 

 

EXHIBIT A

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FORM OF LOAN NOTICE

 

Date:  _____________, ______

 

To:                           Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Borrower”), certain Subsidiaries of the Borrower identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The undersigned hereby requests (select one):

o  A Borrowing of Term Loans

o  A Borrowing of Revolving Credit Loans

o  A conversion or continuation of Loans

 

	
1.
    	
 
    	
On __________________________________   (a Business Day).
    
	
 
    	
 
    	
 
    
	
2.
    	
 
    	
In the amount of   $_____________________.
    
	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Comprised of ______________________________________.
    
	
 
    	
 
    	
             [Type   of Loans requested]
    
	
 
    	
 
    	
 
    
	
4.
    	
 
    	
In the following   currency: ______________________.
    
	
 
    	
 
    	
 
    
	
5.
    	
 
    	
For Revolving Credit   Loans denominated in Dollars: under the following Tranche:
    
	
 
    	
 
    	
o   Dollar Tranche
    
	
 
    	
 
    	
o   Alternative Currency Tranche
    
	
 
    	
 
    	
 
    
	
6.
    	
 
    	
For Eurocurrency Rate   Committed Loans: with an Interest Period of __________ months.
    
	
 
    	
 
    	
 
    
	
7.
    	
 
    	
The Loans, if any,   borrowed hereunder shall be disbursed to the following bank for credit by that   bank to the following deposit account:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
___________________
    
	
 
    	
 
    	
___________________
    
	
 
    	
 
    	
___________________
    

 

A-1

Form of Loan Notice
 

 

[The Borrower hereby represents and warrants that the conditions specified in Sections 4.02(a), (b) and (e) shall be satisfied on and as of the date of the proposed Credit Extension.]1

 

 

[Remainder of page intentionally left blank.]

 

 

 

 

 

 

 

 

 

 

 

 

1  Include only in the case of a Borrowing.

 

A-2

Form of Loan Notice
 

 

	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
					

 

A-3

Form of Loan Notice
 

 

EXHIBIT B-1

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

FORM OF
 COMPETITIVE BID REQUEST

 

 

Date:  ___________, _____

 

To:                           Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Borrower”), certain Subsidiaries of the Borrower identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.  The Borrower hereby gives you notice pursuant to Section 2.03(b) of the Agreement that it requests a Competitive Borrowing under the Agreement and in that connection sets forth below the terms on which such Competitive Borrowing is requested to be made:

 

1.         On __________________________________ (a Business Day).

 

2.         In an aggregate amount not exceeding $_____________________.1

 

3.         Comprised of (select one):2

 

	
           o   Absolute Rate Loans
    	
o   Eurocurrency Margin Bid Loans
    

 

	
Bid   Loan
   No.
    	
 
    	
Interest   Period
   requested
    	
 
    	
Maximum   principal
   amount requested
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
______days/mos
    	
 
    	
$________________
    
	
2
    	
 
    	
______days/mos
    	
 
    	
$________________
    
	
3
    	
 
    	
______days/mos
    	
 
    	
$________________
    

 

 

 

 

1                                          Shall not be less than $5,000,000 or a whole multiple of $1,000,000 in excess thereof .

 

2                                          Shall not be a request for more than three different Interest Periods, shall be subject to the definition of “Interest Period” and shall not end later than the Maturity Date.

 

B-1-1

Form of Competitive Bid Request
 

 

The Borrower authorizes the Administrative Agent to deliver this Competitive Bid Request to the Lenders.  Responses by the Lenders must be in substantially the form of Exhibit B-2 to the Agreement and must be received by the Administrative Agent by the time specified in Section 2.03 of the Agreement for submitting Competitive Bids.

 

Upon acceptance of any or all of the Competitive Loans offered by the Lenders in response to this request, the Borrower shall be deemed to have represented and warranted that the conditions to each Loan specified in Sections 4.02(a), (b) and (e) of the Agreement have been satisfied.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
					

 

B-1-2

Form of Competitive Bid Request
 

 

EXHIBIT B-2

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FORM OF
 COMPETITIVE BID

 

 

Date:  ___________, ______

 

To:                           Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Borrower”), certain Subsidiaries of the Borrower identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

In response to the Competitive Bid Request dated _____________, 201__, the undersigned offers to make the following Competitive Loan(s):

 

1.         Borrowing date: _______________________ (a Business Day).

 

2.         In an aggregate amount not exceeding $_________________ (with any sublimits set forth below).

 

3. Comprised of:

 

	
Bid   Loan No.
    	
 
    	
Interest   Period
   offered
    	
 
    	
Bid   Maximum
    	
 
    	
Absolute   Rate or
   Eurocurrency
   Bid Margin*
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
________days/mos
    	
 
    	
$____________
    	
 
    	
(- +) 
    	
 
    	
%
    
	
2
    	
 
    	
________days/mos
    	
 
    	
$____________
    	
 
    	
(- +)
    	
 
    	
%
    
	
3
    	
 
    	
________days/mos
    	
 
    	
$____________
    	
 
    	
(- +)
    	
 
    	
%
    

 

 

 

* Expressed in multiples of 1/100th of a basis point.

 

B-2-1

Form of Competitive Bid
 

 

The undersigned hereby confirms that it shall, subject to the terms and conditions set forth in the Agreement, extend credit to the Borrower upon acceptance by the Borrower of this bid in accordance with Section 2.03(e) of the Agreement.

 

Very truly yours,

 

 

[NAME OF LENDER]

 

 

	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

 

******************************************************************************

 

THIS SECTION IS TO BE COMPLETED BY THE BORROWER IF IT WISHES TO ACCEPT ANY OFFERS CONTAINED IN THIS COMPETITIVE BID:

 

The offers made above are hereby accepted in the amounts set forth below:

 

	
Bid Loan No.

 
    	
Principal Amount Accepted

 
    
	
 
    	
 $

 
    
	
 
    	
 $

 
    
	
 
    	
 $

 
    

 

 

 

 

 

W.P. CAREY INC.

 

 

	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
					

 

B-2-2

Form of Competitive Bid

 

EXHIBIT B-3

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FORM OF
 COMPETITIVE LOAN NOTE

 

Dated: _________, ____

 

FOR VALUE RECEIVED, the undersigned, W.P. CAREY INC. (the “Borrower”), HEREBY PROMISES TO PAY to the order of ___________________________________ the (“Lender”) for the account of its applicable Lending Office (as defined in the Credit Agreement referred to below), on ______________, ____, the principal amount of ___________.

 

The Borrower promises to pay interest on the unpaid principal amount hereof from the date hereof until such principal amount is paid in full, at the interest rate and payable on the interest payment date or dates provided below:

 

Interest Rate:  ____% per annum (calculated on the basis of a year of _____ days for the actual number of days elapsed).

 

Last day of Interest Period:  ___________________. (the “Payment Date”)

 

Both principal and interest are payable in Dollars to Bank of America, N.A. (“Bank of America”), as Administrative Agent, or any successor to Bank of America in such capacity, for the account of the Lender in accordance with the terms of the Credit Agreement in Same Day Funds (as defined in the Credit Agreement) on the Payment Date, free and clear and without any deduction, with respect to the payee named above, for any and all present and future taxes, deductions, charges or withholdings, and all liabilities with respect thereto.

 

This Competitive Loan Note is one of the Competitive Loan Notes referred to in, and is entitled to the benefits of, the Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement;” the terms defined therein being used herein as therein defined), among the Borrower, certain Subsidiaries of the Borrower identified therein as Guarantors,  the Lender and certain other Lenders party thereto, and Bank of America, as Administrative Agent, Swing Line Lender and L/C Issuer.  The Credit Agreement, among other things, contains provisions for acceleration of the maturity hereof upon the happening of certain stated events.

 

The Borrower hereby waives presentment, demand, protest and notice of any kind.  No failure to exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall operate as a waiver of such rights.

 

This Competitive Loan Note shall be governed by, and construed in accordance with, the law of the State of New York.

 

B-3-1

Form of Competitive Loan Note

 

 

IN WITNESS WHEREOF, the Borrower has caused this Competitive Loan Note to be executed by its duly authorized officer as of the date first above written.

 

 

	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

B-3-2

Form of Competitive Loan Note

 

 

EXHIBIT C

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FORM OF SWING LINE LOAN NOTICE

 

Date:  _________, _____

 

 

 

	
To:
    	
Bank of America, N.A.,   as Swing Line Lender
    
	
 
    	
Bank of America, N.A.,   as Administrative Agent
    

 

Ladies and Gentlemen:

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Borrower”), certain Subsidiaries of the Borrower identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The undersigned hereby requests a Swing Line Loan:

 

1.         On ______________________________________ (a Business Day).

 

2.         In the amount of $_______________________.1

 

 

[The Swing Line Loans borrowed hereunder shall be disbursed to the following bank for credit by that bank to the following deposit account:

 

_______________________

_______________________

_______________________]2

 

 

 

 

 

1              Shall not be less than $100,000.

 

2              Include if proceeds of the requested Swing Line Loan is to be disbursed other than by being credited to the account of the Borrower maintained at the Swing Line Lender.

 

C-1

Form of Swing Line Loan Notice

 

The Borrower hereby represents and warrants that the conditions specified in Sections 4.02(a), (b) and (e) shall be satisfied on and as of the date of the proposed Credit Extension.

 

	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
					

 

C-2

Form of Swing Line Loan Notice

 

EXHIBIT D-1

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

FORM OF TERM NOTE

 

____________, ____

 

FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to the order of ______________________ or registered assigns (the “Lender”), in accordance with the provisions of the Agreement (as hereinafter defined), the principal amount of [insert amount of Lender’s Term Loan Commitment] ____________________________ ($_____________) outstanding as a Term Loan under that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014  (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among the Borrower, the Guarantors party thereto, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The Borrower promises to pay interest on the unpaid principal amount of the Term Loan made by the Lender from the date of such Loan until such principal amount is paid in full, at such interest rates and at such times as provided in the Agreement.  All payments of principal and interest shall be made to the Administrative Agent for the account of the Lender in Dollars in Same Day Funds at the Administrative Agent’s Office.  If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement.

 

This Term Note is one of the Term Notes referred to in the Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein.  This Term Note is also entitled to the benefits of the Guaranty.  Upon the occurrence and continuation of one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Term Note shall become, or may be declared to be, immediately due and payable all as provided in the Agreement.  The Administrative Agent will maintain a Register pursuant to the terms of Section 11.06(c) of the Agreement where any transfers of this Term Note, the name and address of the Lender, and the Term Commitment of, and principal amounts (and the related interest amounts) of the Term Loans owing to, the Lender will be recorded.  The Term Loan made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business.  The Lender may also attach schedules to this Term Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loan and payments with respect thereto.

 

The Borrower, for itself and its successors and assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Term Note.

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

D-1-1

Form of Term Note

 

IN WITNESS WHEREOF, the Borrower has caused this Term Note to be executed by its duly authorized officer as of the date first above written.

 

 

	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
						

 

D-1-2

Form of Term Note

 

EXHIBIT D-2

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

FORM OF REVOLVING CREDIT NOTE

 

_____________________

 

 

FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby, jointly and severally, promises to pay to the order of _____________________ or registered assigns (the “Lender”), in accordance with the provisions of the Agreement (as hereinafter defined), the principal amount of each Revolving Credit Loan [and Swing Line Loan] from time to time made by the Lender to the Borrower under that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among the Borrower, the Guarantors party thereto, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The Borrower promises to pay interest on the unpaid principal amount of each Revolving Credit Loan [and Swing Line Loan] from the date of such Loan until such principal amount is paid in full, at such interest rates and at such times as provided in the Agreement.  [Except as provided in Section 2.05(f) of the Agreement with respect to Swing Line Loans, a][A]ll payments of principal and interest shall be made to the Administrative Agent for the account of the Lender in the currency in which such Loan was denominated and in Same Day Funds at the Administrative Agent’s Office for such currency.  If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement.

 

This Revolving Credit Note is one of the Revolving Credit Notes referred to in the Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein.  This Revolving Credit Note is also entitled to the benefits of the Guaranty.  Upon the occurrence and continuation of one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Revolving Credit Note shall become, or may be declared to be, immediately due and payable all as provided in the Agreement. The Administrative Agent will maintain a Register pursuant to the terms of Section 11.06(c) of the Agreement where any transfers of this Revolving Credit Note, the name and address of the Lender, and the Revolving Credit Commitment of, and principal amounts (and the related interest amounts) of the Revolving Credit Loans[, Swing Line Loans] and L/C Obligations owing to, the Lender will be recorded.  The Lender may also attach schedules to this Revolving Credit Note and endorse thereon the date, Type (if applicable), amount, currency and maturity of its Loans and payments with respect thereto.  In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of the Lender, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

 

D-2-1

Form of Revolving Credit Note

 

The Borrower, for itself and its successors and assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Revolving Credit Note.

 

THIS REVOLVING CREDIT NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

 

 

[Remainder of page intentionally left blank.]

 

D-2-2

Form of Revolving Credit Note

 

 

IN WITNESS WHEREOF, the Borrower has caused this Revolving Credit Note to be executed by its duly authorized officer as of the date first above written.

 

 

	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
						

 

D-2-3

Form of Revolving Credit Note
 

 

LOANS AND PAYMENTS WITH RESPECT THERETO

 

	
Date
    	
Type of
   Loan Made
    	
Amount   of
   Loan Made
    	
End of
   Interest
   Period
    	
Amount   of
   Principal or
   Interest
   Paid This
   Date
    	
Outstanding
   Principal
   Balance
   This Date
    	
Notation
   Made By
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
_______
    	
_______
    	
_______
    	
_______
    	
_______
    	
_______
    	
_______
    
	
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_______
    	
_______
    	
_______
    

 

D-2-4

Form of Revolving Credit Note
 

 

EXHIBIT E

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FORM OF COMPLIANCE CERTIFICATE

 

Financial Statement Date: ______,

 

To:                           Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Company”), certain Subsidiaries of the Company identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The undersigned Responsible Officer of the Company hereby certifies as of the date hereof that he/she is the __________________________ of the Company, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of the Loan Parties, and that:

 

[Use following paragraph 1 for fiscal year-end financial statements]

 

1.         The Company has delivered the year-end audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of the Company ended as of the above date, which are attached hereto as Schedule I, together with the report and opinion of PricewaterhouseCoopers LLP or other “Big 4” accounting firm required by such section.

 

[Use following paragraph 1 for fiscal quarter-end financial statements]

 

1.         The Company has delivered the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal quarter of the Company ended as of the above date, which are attached hereto as Schedule I.  Such financial statements fairly present the financial condition, results of operations and cash flows of the Consolidated Group in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

 

2.         The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a review in reasonable detail of the transactions contemplated thereby and consolidated financial condition of the Company and its Subsidiaries, during the accounting period covered by such financial statements, and such review has not disclosed the existence during or at the end of such accounting period, and that the undersigned does not have knowledge of the existence as of the date hereof, of any condition or event which constitutes a Default [other than the Default(s) described below].

 

E-1

Form of Compliance Certificate
 

 

3.         Attached hereto as Schedule II is a true, correct and complete list of all the outstanding Indebtedness of the Loan Parties and their Subsidiaries, including, for each item of Indebtedness, the amount, maturity, interest rate, and amortization requirements on and as of the Financial Statement Date.

 

4.         Attached hereto as Schedule III are true, correct and complete calculations which calculations demonstrate whether there has been compliance with the covenants and financial ratios set forth in Section 7.11 and Section 7.06(b) of the Agreement as of the Financial Statement Date.

 

5.         Adjusted Total EBITDA as of the Financial Statement Date is $___________.  Total Value as of the Financial Statement Date is $_____________.  Management EBITDA as of the Financial Statement Date is $_____________.  Attached hereto as Schedule IV are true, correct and complete calculations of the Adjusted Total EBITDA, Total Value (including limitations on such calculation) and Management EBITDA.

 

6.         Attached hereto as Schedule V is an updated Part (a) of Schedule 5.12 to the Agreement, if applicable.

 

E-2

Form of Compliance Certificate
 

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of ______________, _____.

 

	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
					

 

E-3

Form of Compliance Certificate
 

 

SCHEDULE I

to the Compliance Certificate

 

 

Financial Statements

 

[attach financial statements]

 

E-4

Form of Compliance Certificate
 

 

SCHEDULE II

to the Compliance Certificate

 

 

Indebtedness

as of                             , 20  

 

[attach required information]

 

E-5

Form of Compliance Certificate

 

 

SCHEDULE III

to the Compliance Certificate

 

 

Financial Covenant Compliance Analysis

(in thousands)
  as of                             , 20  

 

 

	
 
    	
 
    	
Maximum Leverage
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
Total Outstanding   Indebtedness
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Total Value
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Maximum Leverage 
   (Line A < 60% of Line B)1
    	
 
    	
Compliance: 
   (Yes or No)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Maximum Secured Debt
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
Total Secured   Outstanding Indebtedness
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Total Value
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Maximum Secured Debt 
   (Line A + Line B < 50% of Line C)2
    	
 
    	
Compliance: 
   (Yes or No)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Minimum Equity Value
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
Combined Equity Value   of the Company
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Fair Market   Value of all Net Offering Proceeds received by the Company after the Closing   Date
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Minimum Combined Equity   Value 
   (Line A > $[75% of CEV at Closing Date]3 + 75% of Line   B)
    	
 
    	
Compliance: 
   (Yes or No)
    

 

1                                           As of the last day of the two consecutive calendar quarters following (x) the consummation of the Acquisition or (y) the Company’s acquisition, pursuant to one transaction or a series of related transactions occurring contemporaneously, of one or more entities or property portfolios with total assets of at least $500 million, Line A < 65% of Line B.

 

2                                           after [date of first anniversary of the Closing Date] and on or prior to [date of second anniversary of the Closing Date], Line A + Line B < 45% of Line C, and thereafter, Line A + Line B < 40% of Line C.

 

3                                           Value resets upon the acquisition of a Managed REIT to the greater of (i) 75% of the Combined Equity Value calculated on a pro forma basis (giving effect to such acquisition) and (ii) the minimum Combined Equity Value as in effect immediate prior to such acquisition.

 

E-6

Form of Compliance Certificate
 

 

	
 
    	
 
    	
Minimum Fixed Charge Coverage   Ratio
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
Adjusted Total EBITDA
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Fixed Charges
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Minimum Fixed Charge   Coverage Ratio 
   (Line A ÷ Line B)
    	
 
    	
                                                  

(Minimum permitted is 
   1.50 to 1.0)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Minimum Unsecured Interest   Coverage Ratio
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
Unencumbered Property   NOI
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Unencumbered Management   EBITDA
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Interest Expense on   Total Unsecured Outstanding Indebtedness
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.
    	
 
    	
Minimum Unsecured Interest   Coverage Ratio 

((Line A + Line B) ÷   Line C)
    	
 
    	
                                                  

(Minimum permitted is   1.75 to 1.00)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Secured Recourse Indebtedness
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
Secured Indebtedness   that is recourse to one or more Loan Parties
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Total Value
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Secured Recourse   Indebtedness 
   (Line A < 5% of Line B))
    	
 
    	
Compliance: 
   (Yes or No)
    

 

E-7

Form of Compliance Certificate

 
 

 

	
 
    	
 
    	
Unsecured Debt to Unencumbered   Asset Value
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
Total Unsecured   Outstanding Indebtedness
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Unencumbered Asset   Value
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Maximum Unsecured   Indebtedness to Unencumbered Asset Value 
   (Line A < 60% of Line B))4
    	
 
    	
Compliance: 
   (Yes or No)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Maximum Dividend Payout1
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
Restricted Payments   made during fiscal year
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Adjusted Funds From   Operations
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Restricted Payments   required to maintain REIT Status and avoid payment of federal or state income   or excise tax
    	
 
    	
$                                                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.
    	
 
    	
Maximum Dividend Payout   
   (Line A < (greater of (95% of Line B) and Line C))
    	
 
    	
Compliance:                            
   (Yes or No)
    

 

 

 

 

[Support for financial covenant calculations to be provided by the Company]

 

 

 

 

 

 

 

 

 

 

 

 

4                                           As of the last day of the two consecutive calendar quarters following (x) the consummation of the Acquisition or (y) the Company’s acquisition, pursuant to one transaction or a series of related transactions occurring contemporaneously, of one or more entities or property portfolios with total assets of at least $500 million, Line A < 65% of Line B

 

5                                           only be included with delivery of fiscal year-end financial statements):

 

E-8

Form of Compliance Certificate
 

 

SCHEDULE IV

to the Compliance Certificate

 

Adjusted Total EBITDA, Total Value and Management EBITDA

as of                             , 20  

 

 

[attach calculations]

 

E-9

Form of Compliance Certificate
 

 

SCHEDULE V

to the Compliance Certificate

 

 

Schedule 5.12(a)

 

 

[attach schedule]

 

E-10

Form of Compliance Certificate

 

 

EXHIBIT F-1

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [the][each]1 Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2 Assignee identified in item 2 below ([the][each, an] “Assignee”).  [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are several and not joint.]4 Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

 

For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below, (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under the [revolving credit][term]5 facility provided pursuant to the Credit Agreement [(including, without limitation, the Letters of Credit and the Swing Line Loans included in such revolving credit facility)]6 and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the credit transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other 

 

1                                           For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language.  If the assignment is from multiple Assignors, choose the second bracketed language.

 

2                                           For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language.  If the assignment is to multiple Assignees, choose the second bracketed language.

 

3                                           Select as appropriate.

 

4                                           Include bracketed language if there are either multiple Assignors or multiple Assignees.

 

5                                           Select as appropriate.

 

6                                           Include as appropriate.

 

 

F-1-1

Form of Assignment and Assumption

 
 

 

claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”).  Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the][any] Assignor.

 

	
1.
    	
Assignor[s]: 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Assignee[s]:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
[for each Assignee,   indicate [Affiliate][Approved Fund] of [identify Lender]]
    
	
 
    	
 
    
	
3.
    	
Borrower:                                 W.P. Carey Inc.
    
	
 
    	
 
    
	
4.
    	
Administrative   Agent: Bank of   America, N.A., as the administrative agent under the Credit Agreement
    
	
 
    	
 
    
	
5.
    	
Credit Agreement:                              Second Amended and Restated Credit Agreement, dated   as of January 31, 2014, among W.P. Carey Inc. (together with its permitted   successors and assigns, the “Borrower”), certain Subsidiaries of the   Borrower identified therein as Guarantors, the Lenders party thereto, and   Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C   Issuer
    

 

F-1-2

Form of Assignment and Assumption
 

 

 

6.                                    Assigned Interest[s]:

 

	
 

Assignor[s]7
    	
 

Assignee[s]8
    	
Aggregate 
   Amount of
   Revolving Credit
   Commitments/
   Revolving Credit
   Loans
    for all Lenders9
    	
Amount of
   Revolving Credit
   Commitments/
   Revolving Credit
   Loans
    Assigned
    	
Aggregate
   Amount of
   Term
   Commitments/
   Term Loans
    for all Lenders10
    	
Amount of
   Term
   Commitments/
   Term Loans
    Assigned
    	
Percentage
   Assigned of
   Commitment/
    Loans11
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
$                    
    	
$                    
    	
$                    
    	
$                    
    	
$                      %
    
	
 
    	
 
    	
$                    
    	
$                    
    	
$                    
    	
$                    
    	
$                      %
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 

Assignor[s]12
    	
 

Assignee[s]13
    	
Aggregate 
   Amount of 
   Dollar Tranche
   Commitments/
   Dollar Tranche
   Loans
    for all Lenders14
    	
Amount of
   Dollar Tranche
   Commitments/
   Dollar Tranche
   Loans
    Assigned
    	
Aggregate 
   Amount of
   Alternative
   Currency
   Tranche
   Commitments/
   Alternative
   Currency
   Tranche Loans
    for all Lenders15
    	
Amount of
   Alternative
   Currency
   Tranche
   Commitments/
   Alternative
   Currency 
   Tranche Loans
    Assigned
    	
Acceptable
   Alternative
    Currencies16
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
$                    
    	
$                    
    	
$                    
    	
$                    
    	
$                      %
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
$                    
    	
$                    
    	
$                    
    	
$                    
    	
$                      %
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

7                                           List each Assignor, as appropriate.

 

8                                           List each Assignee, as appropriate.

 

9                                           Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

 

10                                      Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

 

11                                      Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

12                                      List each Assignor, as appropriate.

 

13                                      List each Assignee, as appropriate.

 

14                                      Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

 

15                                      Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

 

16                                      list Alternative Currencies covered by the Alternative Currency Tranche Commitment.

 

F-1-3

Form of Assignment and Assumption
 

 

[7.                               Trade Date:                                                  ]17

 

Effective Date:                                     , 20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

	
 
    	
ASSIGNOR[S]
    
	
 
    	
 
    
	
 
    	
[NAME OF ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17                                      To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

 

F-1-4

Form of Assignment and Assumption
 

 

	
 
    	
ASSIGNEE[S]
    
	
 
    	
 
    
	
 
    	
[NAME OF ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    

 

 

[Consented to and]18 Accepted:

 

 

	
BANK OF AMERICA, N.A.,   as
    
	
  Administrative Agent
    

 

	
By:
    	
 
    	
 
    
	
 
    	
Title:
    

 

BANK OF AMERICA, N.A., as

  L/C Issuer and Swing Line Lender

 

	
By:
    	
 
    	
 
    
	
 
    	
Title:
    

 

[Consented to:19

 

W.P. CAREY INC.

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Title:]
    

 

 

 

 

 

 

 

 

 

 

 

 

 

18                                      To be added only if the consent of the Administrative Agent, L/C Issuer and/or Swing Line Lender  is required by the terms of the Credit Agreement.

 

19                                      To be added only if the consent of the Company is required by the terms of the Credit Agreement.

 

F-1-5

Form of Assignment and Assumption

 

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.                        Representations and Warranties.

 

1.1.            Assignor.  [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim created by [the][such] Assignor and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Company, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Company, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

1.2.            Assignee.  [The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 11.06(b)(iii) and (v) of the Credit Agreement (subject to such consents, if any, as may be required under Section 11.06(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements referred to in Section 5.05 thereof or delivered pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent, [the][any] Assignor or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance upon the Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and 

 

F-1-6

Form of Assignment and Assumption

 

 

(ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

2.                        Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date.

 

3.                        General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

 

F-1-7

Form of Assignment and Assumption

 

 

EXHIBIT F-2

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FORM OF ADMINISTRATIVE QUESTIONNAIRE

 

[see attached]

 

F-2-1

Form of Assignment and Assumption

 

 

EXHIBIT G

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

FORM OF 
  JOINDER AGREEMENT

 

JOINDER AGREEMENT, dated as of _____, 201_ (this “Joinder Agreement”), made by the Subsidiary[ies] of W.P. Carey Inc. (together with its permitted successors and assigns, the “Borrower”) signatory hereto ([each] a “New Guarantor”) in favor of Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders referred to in that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement;” the terms defined therein being used herein as therein defined), among the Company, the Subsidiaries of the Borrower identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

W I T N E S S E T H:

 

WHEREAS, this Joinder Agreement is entered into pursuant to Section 6.12 of the Credit Agreement;

 

NOW, THEREFORE, in consideration of the premises, the parties hereto hereby agree as follows:

 

1.  [The][Each] New Guarantor, hereby acknowledges that it has received and reviewed a copy of the Credit Agreement, and acknowledges and agrees to:

 

(a)             join the Credit Agreement as a Guarantor, as indicated with its signature below;

 

(b)            be bound by all covenants, agreements and acknowledgments attributable to a Guarantor in the Credit Agreement; and

 

(c)             perform all obligations and duties required of it by the Credit Agreement.

 

2.  [The][Each] New Guarantor represents and warrants that the representations and warranties contained in Article V of the Credit Agreement as they relate to such New Guarantor or which are contained in any certificate furnished by or on behalf of such New Guarantor are true and correct on the date hereof.

 

3.  The address, taxpayer identification number and jurisdiction of organization of [each][the] New Guarantor is set forth in Annex I to this Joinder Agreement.

 

G-1

Form of Joinder Agreement

 

 

4.  This Joinder 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 agreement.

 

4.  Except as expressly supplemented hereby, the Credit Agreement and the Guaranty shall remain in full force and effect.

 

5.  THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF.

 

G-2

Form of Joinder Agreement

 

 

IN WITNESS WHEREOF, each of the undersigned has caused this Joinder Agreement to be duly executed and delivered by its proper and duly authorized officer as of the day and year first above written.

 

 

	
 
    	
[NEW GUARANTOR[S]],
    
	
 
    	
as [the][a] New   Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
W.P. CAREY INC., as the   Borrower
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

 

 

	
ACKNOWLEDGED AND AGREED   TO:
    	
 
    
	
 
    	
 
    
	
BANK OF AMERICA, N.A.,
    	
 
    
	
as Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
				

 

G-3

Form of Joinder Agreement

 

 

EXHIBIT H

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

FORM OF SOLVENCY CERTIFICATE

 

I, the undersigned, chief financial officer of W.P. CAREY INC. (the “Company”), DO HEREBY CERTIFY on behalf of the Loan Parties that:

 

1.                                    This certificate is furnished pursuant to Section 4.01(a)(viii) of the Second Amended and Restated Credit Agreement (as in effect on the date of this certificate; the capitalized terms defined therein being used herein as therein defined) dated as of January 31, 2014 among the Company, certain Subsidiaries of the Company identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (as from time to time in effect, the “Credit Agreement”).

 

2.                                    After giving effect to the Credit Extensions to occur on the Closing Date, (a) the fair value of the property of each Loan Party is greater than the total amount of liabilities, including contingent liabilities, of such Loan Party, (b) the present fair salable value of the assets of each Loan Party is not less than the amount that will be required to pay the probable liability of such Loan Party on its debts as they become absolute and matured, (c) each Loan Party does not intend to, and does not believe that it will, incur debts or liabilities beyond such Loan Party’s ability to pay such debts and liabilities as they mature, (d) each Loan Party is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Loan Party’s property would constitute an unreasonably small capital, and (e) each Loan Party is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business.  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.

 

[Signature Page Follows]

 

H-1

Form of Solvency Certificate

 

 

IN WITNESS WHEREOF, the undersigned has executed this Solvency Certificate as of                                     , 201    .

 

	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
Chief Financial Officer
    

 

H-2

Form of Solvency Certificate

 

 

EXHIBIT I

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FORM OF
 UNITED STATES TAX COMPLIANCE CERTIFICATE
 (For Non-U.S. Lenders That Are Not Partnerships
 For U.S. Federal Income Tax Purposes)

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Company”) as the Borrower, certain Subsidiaries of the Company identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

Pursuant to the provisions of Section 3.01(e) of the Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the “Code”), (iii) it is not a ten percent shareholder of the Company within the meaning of Code Section 881(c)(3)(B), (iv) it is not a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (v) no payments in connection with any Loan Document are effectively connected with a United States trade or business conducted by the undersigned.

 

The undersigned has furnished the Administrative Agent and the Company with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Company and the Administrative Agent in writing and (2) the undersigned shall furnish the Company and the Administrative Agent a properly completed and currently effective certificate in either the calendar year in which payment is to be made by the Company or the Administrative Agent to the undersigned, or in either of the two calendar years preceding such payment.

 

[Signature Page Follows]

 

I-1

Form of United States Tax Compliance Certificate

 

 

	
 
    	
[Lender]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[Address]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:                                  ,   20[  ]
    	
 
    

 

I-2

Form of United States Tax Compliance Certificate

 

 

FORM OF
 UNITED STATES TAX COMPLIANCE CERTIFICATE
 (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Company”) as the Borrower, certain Subsidiaries of the Company identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

Pursuant to the provisions of Section 3.01(e) of the Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) neither the undersigned nor any of its partners/members is a bank within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the “Code”), (iv) none of its partners/members is a ten percent shareholder of the Company within the meaning of Code Section 881(c)(3)(B), (v) none of its partners/members is a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (vi) no payments in connection with any Loan Document are effectively connected with a United States trade or business conducted by the undersigned or its partners/members.

 

The undersigned has furnished the Administrative Agent and the Company with Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN from each of its partners/members claiming the portfolio interest exemption, provided that, for the avoidance of doubt, the foregoing shall not limit the obligation of the Lender to provide, in the case of a partner/member not claiming the portfolio interest exemption, a Form W-8ECI, Form W-9 or Form W-8IMY (including appropriate underlying certificates from each interest holder of such partner/member), in each case establishing such partner/member’s available exemption from U.S. federal withholding tax. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Company and the Administrative Agent and (2) the undersigned shall have at all times furnished the Company and the Administrative Agent in writing with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

[Signature Page Follows]

 

I-3

Form of United States Tax Compliance Certificate

 

 

	
 
    	
[Lender]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[Address]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:                                       ,   20[  ]
    	
 
    

 

I-4

Form of United States Tax Compliance Certificate

 

 

FORM OF
 UNITED STATES TAX COMPLIANCE CERTIFICATE
 (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Company”) as the Borrower), certain Subsidiaries of the Company identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

Pursuant to the provisions of Section 3.01(e) and Section 11.06(d) of the Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the “Code”), (iii) it is not a ten percent shareholder of the Company within the meaning of Code Section 881(c)(3)(B), (iv) it is not a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (v) no payments in connection with any Loan Document are effectively connected with a United States trade or business conducted by the undersigned.

 

The undersigned has furnished its participating non-U.S. Lender with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such non-U.S. Lender in writing and (2) the undersigned shall have at all times furnished such non-U.S. Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

[Signature Page Follows]

 

I-5

Form of United States Tax Compliance Certificate

 

 

	
 
    	
[Participant]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[Address]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:                                          ,   20[  ]
    	
 
    
	
 
    	
 
    

 

I-6

Form of United States Tax Compliance Certificate

 

 

FORM OF
 UNITED STATES TAX COMPLIANCE CERTIFICATE
 (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Company”) as the Borrower, certain Subsidiaries of the Company identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

Pursuant to the provisions of Section 3.01(e) and Section 11.06(d) of the Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of such participation, (iii) neither the undersigned nor any of its partners/members is a bank within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the “Code”), (iv) none of its partners/members is a ten percent shareholder of the Company within the meaning of Code Section 881(c)(3)(B), (v) none of its partners/members is a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (vi) no payments in connection with any Loan Document are effectively connected with a United States trade or business conducted by the undersigned or its partners/members.

 

The undersigned has furnished its participating non-U.S. Lender with Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN from each of its partners/members claiming the portfolio interest exemption, provided that, for the avoidance of doubt, the foregoing shall not limit the obligation of the undersigned to provide, in the case of a partner/member not claiming the portfolio interest exemption, a Form W-8ECI, Form W-9 or Form W-8IMY (including appropriate underlying certificates from each interest holder of such partner/member), in each case establishing such partner/member’s available exemption from U.S. federal withholding tax. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such non-U.S. Lender in writing and (2) the undersigned shall have at all times furnished such non-U.S. Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

[Signature Page Follows]

 

I-7

Form of United States Tax Compliance Certificate

 

 

	
 
    	
[Participant]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[Address]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:                                           ,   20[  ]
    	
 
    

 

I-8

Form of United States Tax Compliance Certificate

 

 

EXHIBIT J

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FORM OF SUPPLEMENTAL ADDENDUM

 

Date:                        ,          

 

To:                           Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of January 31, 2014 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among W.P. Carey Inc. (together with its permitted successors and assigns, the “Borrower”), certain Subsidiaries of the Borrower identified therein as Guarantors, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The undersigned hereby requests (select one or both):

o  commitments for Eurocurrency Rate Loans

o  Letters of Credit to be issued

 

1.         In the following Supplemental Currency:                                          

 

2.                                    Date requested for commitments to take effect:                                         .1

 

3.         Other requests relating to the commitments being requested:

 

 

 

 

 

 

 

 

 

 

[Remainder of page intentionally left blank.]

 

 

 

 

 

1                                           a Business Day at least 20 Business Days after the date of this addendum or such other time or date as may be agreed by the Administrative Agent and, in the case of a Supplemental Request pertaining to Letters of Credit, the L/C Issuer, in its or their sole discretion

 

J-1

Form of Supplemental Addendum

 

 

	
 
    	
W.P. CAREY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    
	
 
    	
Title:
    	
 
    
					

 

J-2

Form of Supplemental Addendum

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