Document:

ex10-1.htm

 

EXHIBIT 10.1

 

Execution Version

 

 

 

 

 

CREDIT AGREEMENT

 

dated as of

 

June 28, 2017

 

By and among

 

EAGLE BULK ULTRACO LLC,

as Borrower,

 

the INITIAL GUARANTORS, along with any Additional Guarantors who may become party hereto,

as Guarantors,

 

The LENDERS party hereto from time to time,

 

The SWAP BANKS party hereto from time to time,

 

and

 

ABN AMRO CAPITAL USA LLC,

as Security Trustee and Facility Agent

 

together with

 

ABN AMRO CAPITAL USA LLC,

DVB BANK SE, and

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL),

as Mandated Lead Arrangers

 

and

 

ABN AMRO CAPITAL USA LLC,

as Arranger and Bookrunner

 

 

 

  

 

 

 

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	
ARTICLE I

	  	  	  
	
DEFINITIONS

	 	 	 
	
1.01
	
Defined Terms
	
1

	
1.02
	
Terms Generally
	
26

	
1.03
	
Accounting Terms; Changes in GAAP
	
26

	
1.04
	
Rates
	
26

	 	 	 
	
ARTICLE II   

	  	  	
  

	
COMMITMENTS   

	 	 	 
	
2.01
	
Commitments
	
27

	
2.02
	
Loans and Borrowings.
	
27

	
2.03
	
Borrowing Requests
	
27

	
2.04
	
Funding of Borrowings
	
27

	
2.05
	
Interest Periods
	
28

	
2.06
	
Repayment
	
29

	
2.07
	
Prepayments
	
29

	
2.08
	
Cancellation of Commitments
	
30

	
2.09
	
Interest
	
30

	
2.10
	
Fees
	
31

	
2.11
	
Evidence of Debt
	
31

	
2.12
	
Payments Generally; Several Obligations of Lenders and Swap Banks
	
32

	
2.13
	
Sharing of Payments
	
33

	
2.14
	
Compensation for Losses
	
33

	
2.15
	
Increased Costs
	
34

	
2.16
	
Taxes
	
35

	
2.17
	
Inability to Determine Rates.
	
38

	
2.18
	
Illegality
	
39

	
2.19
	
Mitigation Obligations; Replacement of Lenders
	
39

	
2.20
	
Defaulting Lenders
	
40

	
2.21
	
Increases in Commitments
	
41

	 	 	 
	
ARTICLE III

	  	  	
  

	
REPRESENTATIONS AND WARRANTIES

	 	 	 
	
3.01
	
Existence, Qualification and Power
	
43

	
3.02
	
Authorization; No Contravention
	
43

	
3.03
	
Governmental Authorization; Other Consents
	
44

	
3.04
	
Execution and Delivery; Binding Effect
	
44

	
3.05
	
Financial Statements; No Material Adverse Effect
	
44

	
3.06
	
Litigation
	
44

	
3.07
	
No Material Adverse Effect; No Default
	
45

	
3.08
	
Property
	
45

	
3.09
	
Taxes
	
45

   

i

 

 

 

	
3.10
	
Disclosure
	
46

	
3.11
	
Compliance with Laws
	
46

	
3.12
	
ERISA Compliance
	
46

	
3.13
	
Environmental Matters
	
47

	
3.14
	
Margin Regulations
	
48

	
3.15
	
Investment Company, Public Utility
	
48

	
3.16
	
PATRIOT Act; Sanctions; Anti-Corruption
	
48

	
3.17
	
ISM Code and ISPS Code Compliance
	
48

	
3.18
	
Solvency
	
49

	
3.19
	
Place of Business
	
49

	
3.20
	
Ownership
	
49

	
3.21
	
Vessels
	
49

	
3.22
	
The Security Documents
	
49

	
3.23
	
Use of Proceeds
	
50

	 	 	 
	
ARTICLE IV   

	  	  	
  

	
CONDITIONS OF LENDING   

	 	 	 
	
4.01
	
Conditions Precedent to First Borrowing
	
50

	
4.02
	
Conditions Precedent to Each Borrowing
	
51

	
4.03
	
Conditions Precedent to each Borrowing for each Vessel
	
53

	
4.04
	
Conditions Precedent to each Borrowing for a Remaining Vessel
	
54

	 	 	 
	
ARTICLE V   

	  	  	
  

	
AFFIRMATIVE COVENANTS   

	 	 	 
	
5.01
	
Financial Statements
	
54

	
5.02
	
Certificates; Other Information
	
55

	
5.03
	
Vessel Valuations
	
56

	
5.04
	
Vessel Value Maintenance
	
57

	
5.05
	
Notices
	
57

	
5.06
	
Preservation of Existence, Etc.
	
58

	
5.07
	
Intentionally Omitted
	
58

	
5.08
	
Maintenance of Properties
	
58

	
5.09
	
Insurances
	
58

	
5.10
	
Insurance Documentation; Letters of Undertaking; Certificates
	
60

	
5.11
	
Mortgagee’s Insurance
	
60

	
5.12
	
Maintenance of Security Interests
	
61

	
5.13
	
Earnings Payments
	
61

	
5.14
	
Payment of Obligations
	
61

	
5.15
	
Vessel Registration
	
61

	
5.16
	
Vessel Repair
	
61

	
5.17
	
Classification Society Instructions and Undertakings
	
61

	
5.18
	
Charters; Charter Assignments; Assignments of Earnings
	
62

	
5.19
	
Compliance with Laws
	
62

	
5.20
	
[Intentionally omitted]
	
62

	
5.21
	
Environmental Matters
	
62

	
5.22
	
Books and Records
	
63

	
5.23
	
Inspection Rights
	
63

  

 

ii

 

 

	
5.24
	
Surveys
	
63

	
5.25
	
Notice of Mortgage
	
63

	
5.26
	
Green Passport
	
63

	
5.27
	
Intentionally Omitted.
	
64

	
5.28
	
Prevention of and Release from Arrest
	
64

	
5.29
	
Use of Proceeds
	
64

	
5.30
	
Subordination of Loans
	
64

	
5.31
	
Anti-Corruption Laws
	
64

	
5.32
	
“Know Your Customer” Documentation
	
64

	
5.33
	
Asset Control
	
64

	
5.34
	
Scrapping
	
65

	 	 	 
	
ARTICLE VI   

	  	  	
  

	
NEGATIVE COVENANTS   

	 	 	 
	
6.01
	
Indebtedness
	
65

	
6.02
	
Liens
	
65

	
6.03
	
Fundamental Changes
	
66

	
6.04
	
Restricted Payments
	
66

	
6.05
	
Investments
	
67

	
6.06
	
Transactions with Affiliates
	
67

	
6.07
	
Changes in Fiscal Periods
	
67

	
6.08
	
Changes in Nature of Business
	
67

	
6.09
	
Changes in Name; Organizational Documents Amendments
	
67

	
6.10
	
Place of Business
	
68

	
6.11
	
Change of Control; Negative Pledge
	
68

	
6.12
	
Restriction on Chartering
	
68

	
6.13
	
Lawful Use
	
68

	
6.14
	
Approved Manager
	
68

	
6.15
	
Insurances
	
68

	
6.16
	
Modification; Removal of Parts
	
69

	
6.17
	
Sanctions
	
69

	 	 	 
	
ARTICLE VII   

	  	  	
  

	
FINANCIAL COVENANTS   

	 	 	 
	
7.01
	
Financial Covenants
	
70

	
7.02
	
Debt Service Reserve
	
70

	
7.03
	
Ballast Water Treatment System Fund
	
70

	
7.04
	
Financial Covenant Cures
	
71

	 	 	 
	
ARTICLE VIII   

	  	  	
  

	
GUARANTY   

	 	 	 
	
8.01
	
Guaranty
	
72

	
8.02
	
Obligations Unconditional
	
72

	
8.03
	
Reinstatement
	
73

	
8.04
	
Subrogation; Subordination
	
73

  

 

iii

 

 

	
8.05
	
Remedies
	
73

	
8.06
	
Instrument for the Payment of Money
	
74

	
8.07
	
Continuing Guarantee
	
74

	
8.08
	
General Limitation on Guarantee Obligations
	
74

	
8.09
	
Right of Contribution
	
74

	
8.10
	
Set-off
	
74

	
8.11
	
Keepwell
	
75

	
8.12
	
Parallel Liability.
	
75

	 	 	 
	
ARTICLE IX   

	  	  	
  

	
EVENTS OF DEFAULT   

	 	 	 
	
9.01
	
Events of Default
	
76

	
9.02
	
Application of Payments
	
78

	 	 	 
	
ARTICLE X   

	  	  	
  

	
AGENCY   

	 	 	 
	
10.01
	
Appointment and Authority
	
79

	
10.02
	
Rights as a Lender
	
80

	
10.03
	
Exculpatory Provisions
	
80

	
10.04
	
Reliance by Agent
	
81

	
10.05
	
Delegation of Duties
	
82

	
10.06
	
Resignation of Agent
	
82

	
10.07
	
Non-Reliance on Agents and Other Lenders
	
83

	
10.08
	
No Other Duties
	
83

	
10.09
	
Facility Agent May File Proofs of Claim
	
83

	
10.10
	
Collateral and Guaranty Matters
	
84

	 	 	 
	
ARTICLE XI   

	  	  	
  

	
MISCELLANEOUS   

	 	 	 
	
11.01
	
Notices
	
84

	
11.02
	
Waivers; Amendments
	
86

	
11.03
	
Expenses; Indemnity; Damage Waiver
	
88

	
11.04
	
Successors and Assigns
	
90

	
11.05
	
Survival
	
93

	
11.06
	
Counterparts; Integration; Effectiveness; Electronic Execution
	
93

	
11.07
	
Severability
	
93

	
11.08
	
Right of Setoff
	
94

	
11.09
	
Governing Law; Jurisdiction; Etc.
	
94

	
11.10
	
WAIVER OF JURY TRIAL
	
95

	
11.11
	
Headings
	
95

	
11.12
	
Treatment of Certain Information; Confidentiality
	
95

	
11.13
	
PATRIOT Act
	
96

	
11.14
	
Interest Rate Limitation
	
96

	
11.15
	
Payments Set Aside
	
96

	
11.16
	
No Advisory or Fiduciary Responsibility
	
97

	
11.17
	
Acknowledgement and Consent to Bail-In of EEA Financial Institutions
	
97

  

 

iv

 

  

SCHEDULES

 

	
SCHEDULE I -A
	
 
	
Lenders and Commitments

	
SCHEDULE I -B
	
 
	
Swap Banks

	
SCHEDULE II
	
- 
	
Initial Guarantors

	
SCHEDULE III
	
- 
	
Approved Brokers

	
SCHEDULE IV
	
- 
	
Vessels

	
SCHEDULE V
	
- 
	
Liens 

	
SCHEDULE VI
	
-
	
Pre-approved Vessel Management Terms

 

 

EXHIBITS

 

	
EXHIBIT A 
	
- 
	
Form of Account Pledge

	
EXHIBIT B 
	
- 
	
Form of Assignment and Assumption

	
EXHIBIT C  
	
- 
	
Form of Assignment of Earnings

	
EXHIBIT D 
	
- 
	
Form of Assignment of Insurances

	
EXHIBIT E 
	
- 
	
Form of Borrowing Request

	
EXHIBIT F 
	
- 
	
Form of Charter Assignment

	
EXHIBIT G 
	
- 
	
Form of Guarantor Accession Agreement

	
EXHIBIT H 
	
- 
	
Form of Manager’s Undertaking

	
EXHIBIT I 
	
- 
	
Form of Master Agreement Assignment

	
EXHIBIT J 
	
- 
	
Form of Membership Interest Pledge

	
EXHIBIT K 
	
- 
	
Form of Vessel Mortgage

	
EXHIBIT L 
	
- 
	
Form of Note

	
EXHIBIT M-1 
	
- 
	
Form of U.S. Tax Compliance Certificate

	
EXHIBIT M-2 
	
- 
	
Form of U.S. Tax Compliance Certificate

	
EXHIBIT M-3 
	
- 
	
Form of U.S. Tax Compliance Certificate

	
EXHIBIT M-4 
	
- 
	
Form of U.S. Tax Compliance Certificate

  

 

v

 

 

This CREDIT AGREEMENT, dated as of June 28, 2017 (this “Agreement”), is by and among EAGLE BULK ULTRACO LLC as Borrower, the INITIAL GUARANTORS, along with any Additional Guarantors who may become party hereto, as Guarantors, the LENDERS party hereto, the SWAP BANKS party hereto, ABN AMRO CAPITAL USA LLC, DVB BANK SE, and SKANDINAVISKA ENSKILDA BANKEN AB (PUBL), as Mandated Lead Arrangers, ABN AMRO CAPITAL USA LLC, as Arranger and Bookrunner, ABN AMRO CAPITAL USA LLC, as Security Trustee and ABN AMRO CAPITAL USA LLC, as Facility Agent.

 

PRELIMINARY STATEMENTS:

 

1.     The Lenders have agreed to make available to the Borrower a senior secured credit facility in an aggregate principal amount of up to the lesser of (a) $61,200,000 and (b) 40% of the lesser of (i) the Purchase Price of the Vessels, and (ii) the Fair Market Value of the Vessels for the purposes of refinancing or reimbursing a part of the acquisition cost of the Delivered Vessels (including through the payment of distributions to the Parent (as defined below)), and financing a part of the acquisition cost of the Remaining Vessels.

 

2.     As a condition to the obligation of the Lenders to make the credit facility available to the Borrower hereunder, the Initial Guarantors have agreed to guarantee, on the terms and conditions set forth herein, the obligations of the Borrower under this Agreement and any Secured Swap Contract.

 

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

 

ARTICLE I

DEFINITIONS

 

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

 

“Account Bank” means ABN AMRO Bank N.V., acting through its office at Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands.

 

“Account Pledge” means any first priority pledge of any of the Guarantor Operating Accounts, the Borrower Operating Account, the BWTS Fund Account, the Liquidity Account, and the Debt Service Reserve Account in the form of Exhibit A, or any other form approved by the Facility Agent, with the consent of the Required Lenders (such consent not to be unreasonably withheld or delayed), in writing.

 

“Acquisition” means, as to any Person, the purchase or other acquisition (in one transaction or a series of transactions, including through a merger) of all of the equity interests of another Person or all or substantially all of the property, assets or business of another Person or of the assets constituting a business unit, line of business or division of another Person.

 

“Additional Guarantor” means any Wholly-Owned Subsidiary of the Borrower that is acceptable to the Required Lenders that shall become a party hereto as Guarantor by executing and delivering to the Facility Agent a Guarantor Accession Agreement, including (a) any such Person that is or shall be the owner of any additional vessel financed or to be financed by any Incremental Commitment pursuant to Section 2.21(a), and (b) any such Person providing additional Collateral to secure the Obligations.

 

 

 

1

 

 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Facility Agent.

 

“Affected Interest Period” has the meaning specified in Section 2.17.

 

“Affected Lender” has the meaning specified in Section 2.17(b).

 

“Affiliate” means, with respect to a specified 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.

 

“Agent Parties” has the meaning specified in Section 11.01(d)(ii).

 

“Agreement” has the meaning specified in the introductory paragraph hereof.

 

“Applicable Law” means, as to any Person, all applicable Laws binding upon such Person or to which such a Person is subject. 

 

“Applicable Percentage” means with respect to any Lender, the percentage of the Total Commitments represented by such Lender’s Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments.

 

“Approved Flag” means the flag of the Marshall Islands, Liberia or Panama or such other flag as the Facility Agent may, with the consent of the Required Lenders (such consent not to be unreasonably withheld, conditioned or delayed), approve from time to time in writing as the flag on which a Vessel shall be registered.

 

“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.

 

“Approved Broker” means (a) the Persons listed on Schedule III, and (b) any other Person proposed by the Borrower which the Facility Agent may, with the consent of the Required Lenders (such consent not to be unreasonably withheld, conditioned or delayed), approve from time to time.

 

“Approved Manager” means (a) the Borrower, (b) any of the Borrower’s Affiliates including Eagle Ship Management LLC, Eagle Shipping International (USA) LLC and Eagle Bulk Pte. Ltd. and (c) any other Person proposed by the Borrower which the Facility Agent may, with the consent of the Required Lenders (such consent not to be unreasonably withheld, conditioned or delayed), approve from time to time as the technical and/or commercial manager of a Vessel.

 

“Approved Pooling Arrangement” means, in respect of a Vessel, any pool agreement proposed by the Borrower which the Facility Agent may, with the consent of the Required Lenders (such consent not to be unreasonably withheld, conditioned or delayed), approve from time to time.

 

“Arranger” means ABN AMRO Capital USA LLC in its capacity as arranger.

 

 

 

2

 

 

“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 11.04), and accepted by the Facility Agent, in substantially the form of Exhibit B or any other form approved by the Facility Agent.

 

“Assignment of Earnings” means, in relation to a Vessel, an assignment of the Earnings and any Requisition Compensation of that Vessel, in substantially the form of Exhibit C, or any other form approved by the Facility Agent. 

 

“Assignment of Insurances” means, in relation to a Vessel, an assignment of the Insurances of that Vessel, in substantially the form of Exhibit D, or any other form approved by the Facility Agent.

 

“Attributable Indebtedness” means, as of any date of determination, (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 (as applicable on the date of this Agreement), and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP (as applicable on the date of this Agreement) if such lease were accounted for as a capital lease. 

 

“Audited Financial Statements” means the audited consolidated balance sheet of the Parent and its Subsidiaries for the fiscal year ended December 31, 2016 and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Parent.

 

“Availability Period” means the period from and including the Closing Date to but excluding the Commitment Termination Date.

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Balloon Installment” has the meaning specified in Section 2.06.

 

“Bookrunner” means ABN AMRO Capital USA LLC in its capacity as bookrunner. 

 

“Borrower” means Eagle Bulk Ultraco LLC, a limited liability company formed and existing under the laws of the Republic of the Marshall Islands.

 

“Borrower Operating Account” means an account in the name of the Borrower with the Account Bank designated “Eagle Bulk Ultraco – Borrower Operating Account”.

 

“Borrowing” means a borrowing consisting of simultaneous Loans made by the Lenders under this Agreement.

 

“Borrowing Request” means a request for a Borrowing which shall be in substantially the form of Exhibit E, or any other form approved by the Facility Agent.

 

 

 

3

 

 

“Business Day” means any day that is not a Saturday, Sunday or other day that is a legal holiday under the laws of The Netherlands, the State of New York, England and Curacao or is a day on which banking institutions in such state are authorized or required by Law to close; provided that, when used in connection with LIBOR, the term “Business Day” means any such day that is also a day on which dealings in Dollar deposits are conducted by and between banks in the London interbank market.

 

“BWTS Fund” has the meaning specified in Section 7.03.

 

“BWTS Fund Account” means an account in the name of the Borrower with the Account Bank designated “Eagle Bulk Ultraco – BWTS Fund Account”.

 

“Capitalized Lease” means each lease that has been or is required to be, in accordance with GAAP (as applicable on the date of this Agreement), recorded as a capitalized lease.

 

“Cash Equivalents” means:

 

(a)     direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one year from the date of acquisition thereof;

 

(b)     investments in certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State thereof that has a combined capital and surplus and undivided profits of not less than $500,000,000;

 

(c)     marketable short-term money market and similar highly liquid funds having a rating of at least P-1 or A-1 from either Moody’s or S&P, respectively (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another Credit Rating Agency);

 

(d)     fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (b) above; and

 

(e)     commercial paper rated at least P-1 by Moody’s or at least A-1 by S&P (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another Credit Rating Agency) and in each case maturing within 12 months after the date of creation thereof.

 

“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.

 

 

 

4

 

 

“Change of Control” means: (a) in respect of the Guarantors, the occurrence of any act, event or circumstance that without prior written consent of all Lenders results in the Borrower owning directly less than 100% of the issued and outstanding Equity Interests in a Guarantor (unless such Guarantor has been released as a Guarantor in accordance with the terms hereof); (b) in respect of the Borrower, the occurrence of any act, event or circumstance that without prior written consent of the Required Lenders results in the Parent owning directly or indirectly less than 100% of the issued and outstanding Equity Interests in the Borrower; and (c) in respect of the Parent, means (i) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act), other than Permitted Holders, that becomes the ultimate “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act and including by reason of any change in the ultimate “beneficial ownership” of the Equity Interests of the Parent) of more than 35% of the total voting power of the Voting Stock of the Parent (calculated on a fully diluted basis); or (ii) any person, other than Permitted Holders, obtains the power (whether or not exercised) to elect a majority of the Board of Directors or equivalent governing body of the Parent.

 

“Charter Assignment” means, in relation to a Vessel, an assignment of any demise charter and any time or consecutive voyage charter for a term which exceeds, or by virtue of any optional extensions may exceed, twelve (12) months for the Vessel entered into by a Guarantor (other than a charter pursuant to an Approved Pooling Arrangement), in substantially the form of Exhibit F, or any other form approved by the Facility Agent.

 

“Classification Society” means, in relation to a Vessel, American Bureau of Shipping, DNV-GL, Lloyd’s Register of Shipping or Nippon Kaiji Kyokai or such other first-class vessel classification society that is a member of IACS that the Facility Agent may, with the prior consent of the Required Lenders, approve from time to time in writing.

 

“Closing Date” means the date of this Agreement.

 

“Code” means the Internal Revenue Code of 1986.

 

“Collateral” means all property (whether real or personal, including, without limitation, any proceeds thereof) with respect to which any security interests have been granted (or purport to be granted) pursuant to any Security Document. 

 

“Commitment” means with respect to each Lender on any date, the commitment of such Lender to make a Loan if such Loan is required to be disbursed on such date, as such commitment may be reduced or increased from time to time pursuant to Section 11.04 or increased from time to time pursuant to Section 2.21. The initial amount of such Lender’s Commitment is set forth on Schedule I or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable.

 

“Commitment Termination Date” means the date falling six (6) months after the Closing Date, subject to extension as may be agreed between the Borrower and the Facility Agent (except that, if such date is not a Business Day, the Commitment Termination Date shall be the next preceding Business Day).

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

“Communications” has the meaning specified in Section 11.01(d)(ii). 

 

 

 

5

 

 

“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 EBITDA” means, for any period, Consolidated Net Income for such period plus, without duplication and to the extent deducted in determining Consolidated Net Income for such period, the sum of (a) all federal, state, local and foreign income taxes and tax distributions; (b) Consolidated Interest Expense; (c) extraordinary and unusual items (in accordance with GAAP); (d) depreciation, depletion, amortization of intangibles and other non-cash charges or non-cash losses (including any drydocking expenses, non-cash transaction expenses and the amortization of debt discounts); (e) non-cash management and board of directors incentive compensation expenses; (f) any write-off for financing costs; (g) losses on sale of vessels; and (k) reasonable fees, costs and expenses, without duplication, incurred in connection with (i) this Agreement and the other Loan Documents, including any future amendment, restatement, supplement or other modification of this Agreement or any of the other Loan Documents, and (ii) the acquisition or disposition of Vessels (irrespective of whether such transaction is actually consummated), minus, to the extent included in determining Consolidated Net Income for such period, (a) any non-cash income or non-cash gains; (b) any extraordinary gains on asset sales not incurred in the ordinary course of business; and (c) gains on any sale of vessels.

 

“Consolidated Interest Expense” means, for any period, total interest expense net of total interest income of the Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP for such period with respect to all outstanding Indebtedness of the Borrower and its Subsidiaries (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under Swap Contracts in respect of interest rates to the extent that such net costs are allocable to such period).

 

“Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Expense. 

 

“Consolidated Net Income” means, for any period, the consolidated net income (or loss) of the Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income (or deficit) 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 of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has an ownership interest, except to the extent that any such income is actually received by the Borrower or such Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of any Subsidiary of the Borrower (other than an Obligor) to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any Contractual Obligation (other than under any Loan Document) or requirement of Law applicable to such Subsidiary.

 

“Consolidated Tangible Net Worth” means, as of any date of determination, for the Borrower and its Subsidiaries on a consolidated basis, Shareholders’ Equity of the Borrower and its Subsidiaries, adjusted for the most recent values of any vessel, on such date minus the Intangible Assets of the Borrower and its Subsidiaries on such date.

 

“Consolidated Total Assets” means, as of any date of determination, the aggregate stated balance sheet amount of all assets of the Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP on such date;

 

“Consolidated Total Debt” means, as of any date of determination, the aggregate stated balance sheet amount of all Indebtedness of the Borrower and its Subsidiaries (or, if higher, the par value or stated face amount of all such Indebtedness (other than zero coupon Indebtedness)) on a consolidated basis on such date (to the extent such Indebtedness would be included on a balance sheet prepared in accordance with GAAP).

 

 

6

 

  

“Contractual Obligation” means, as to any Person, any provision of any material 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.

 

“Corresponding Liabilities means all present and future liabilities and contractual and non-contractual obligations of an Obligor under or in connection with this Agreement, the other Loan Documents and any Secured Swap Contract, but excluding its Parallel Liability.

 

“Credit Rating Agency” means (a) Standard & Poor’s Financial Services LLC (“S&P”), (b) Moody’s Investors Service, Inc. (“Moody’s”), and (c) any other nationally recognized credit rating agency that evaluates the financial condition of issuers of debt instruments and then assigns a rating that reflects its assessment of the issuer's ability to make debt payments, to the extent consented to by the Facility Agent (such consent not to be unreasonably withheld, conditioned or delayed).

 

“Debt Service Reserve Account” means an account in the name of the Borrower with the Account Bank designated “Eagle Bulk Ultraco –Debt Service Reserve Account”.

 

“Debt Service Reserve Release Date” has the meaning specified in Section 7.02.

 

“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, 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.

 

“Debtor Relief Plan” means a plan of reorganization or plan of liquidation pursuant to any Debtor Relief Laws.

 

“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

 

“Default Rate” means an interest rate (before as well as after judgment) equal to the applicable interest rate plus 2.00% per annum.

 

 

 

7

 

 

“Defaulting Lender” means, subject to Section 2.20(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 Facility Agent and the Borrower 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 Facility Agent any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified the Borrower, the Facility Agent 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 on such Lender’s determination that a condition precedent to funding (which condition 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 Facility Agent or the Borrower, to confirm in writing to the Facility Agent and the Borrower 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 Facility Agent and the Borrower), 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, (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 a capacity or (iii) become the subject of a Bail-in Action; 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) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Facility Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.20(b)) upon delivery of written notice of such determination to the Borrower and each Lender.

 

“Delivered Vessel” means each of the Vessels identified in Schedule IV, Part A.

 

“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition of any property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests by a Subsidiary of such Person), 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 Equity Interest” means any Equity Interest that, by its terms (or the terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for Equity Interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), (b) is redeemable at the option of the holder thereof, in whole or in part, (c) provides for scheduled payments of dividends in cash, or (d) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety-one days after the Maturity Date; provided that if such Equity Interests are issued pursuant to a plan for the benefit of employees of the Borrower or any Subsidiary or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Borrower or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, death or disability.

 

“Dollar” and “$” mean lawful money of the United States.

 

“Early Termination Date” shall have the meaning given to that term in any relevant Master Agreement.

 

 

 

8

 

 

“Earnings” means, in relation to a Vessel, all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Guarantor owning that Vessel or the Security Trustee and which arise out of the use or operation of that Vessel, including (but not limited to): 

 

(a)      except to the extent that they fall within paragraph (b) or are otherwise agreed with the prior written consent of the Facility Agent: (i) all freight, hire and passage moneys, (ii) compensation payable to the Guarantor owning that Vessel or the Security Trustee in the event of requisition of that Vessel for hire, (iii) remuneration for salvage and towage services, (iv) demurrage and detention moneys, (v) damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of that Vessel, and (vi) all moneys which are at any time payable under Insurances in respect of loss of hire; and 

 

(b)      if and whenever that Vessel is employed on terms whereby any moneys falling within paragraphs (a)(i) to (vi) are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or sharing arrangement which is attributable to that Vessel.

 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.04(b)(i), (iii) and (iv) (subject to such consents, if any, as may be required under Section 11.04(b)(i)). 

 

“Environmental Laws” means any and all Federal, state, local, and foreign statutes, Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions, including all common law, relating to pollution or the protection of health, safety or the environment or the release of any materials into the environment, including those related to Hazardous Materials, air emissions, discharges to waste or public systems and health and safety matters.

 

“Environmental Liability” means any liability or obligation, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly, resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment, disposal or permitting or arranging for the 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.

 

“Equity Cure” has the meaning specified in Section 7.04. 

 

 

 

9

 

 

“Equity Interests” means, as 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 the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code or Section 302 of ERISA).

 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the failure by the Borrower or any ERISA Affiliate to meet all applicable requirements under the Pension Funding Rules or the filing of an application for the waiver of the minimum funding standards under the Pension Funding Rules; (c) the incurrence by the Borrower or any ERISA Affiliate of any liability pursuant to Section 4063 or 4064 of ERISA or a cessation of operations with respect to a Pension Plan within the meaning of Section 4062(e) of ERISA; (d) 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 or insolvent (within the meaning of Title IV of ERISA); (e) the filing of a notice of intent to terminate a Pension Plan under, or the treatment of a Pension Plan amendment as a termination under, Section 4041 of ERISA; (f) the institution by the PBGC of proceedings to terminate a Pension Plan; (g) any event or condition that constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (h) the determination that any Pension Plan is in at-risk status (within the meaning of Section 430 of the Code or Section 303 of ERISA) or that a Multiemployer Plan is in endangered or critical status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (i) the imposition or incurrence 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; (j) the engagement by the Borrower or any ERISA Affiliate in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; (k) the imposition of a lien upon the Borrower pursuant to Section 430(k) of the Code or Section 303(k) of ERISA; or (l) the making of an amendment to a Pension Plan that could result in the posting of bond or security under Section 436(f)(1) of the Code.

 

“Estate” has the meaning specified in Section 10.01(b).

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

 

“Event of Default” has the meaning specified in Section 9.01.

 

 

 

10

 

 

“Excluded Swap Obligations” means with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guarantee of such Guarantor or the grant of such security interest becomes effective with respect to such related Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal.

 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a 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 applicable 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 Loans or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.19(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.16, 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 to such Recipient’s failure to comply with Section 2.16(g) and (d) any withholding Taxes imposed under FATCA.

 

“Facility” has the meaning specified in Section 2.01. 

 

“Facility Agent” means ABN AMRO Capital USA LLC, in its capacity as facility agent under any of the Loan Documents, or any successor facility agent.

 

“Facility Agent’s Office” means the Facility Agent’s address and, as appropriate, account as set forth in Section 11.01(a), or such other address or account as the Facility Agent may from time to time notify to the Borrower and the Lenders.

 

“Fair Market Value” means, in relation to a Vessel, the market value of such Vessel at any date that is shown by the average of two (2) valuations each prepared for and addressed to the Facility Agent at the cost of the Borrower: (a) as at a date not more than 30 days prior to the date such valuation is delivered to the Facility Agent; (b) by Approved Brokers selected by the Borrower; (c) on a “desk-top” basis without physical inspection of that Vessel; and (d) on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of employment or encumbrances (and with no value to be given to any pooling arrangements); provided that (i) if a range of market values is provided in a particular appraisal, then the market value in such appraisal shall be deemed to be the mid-point within such range, and (ii) if there is a difference of, or in excess of, 12.5% between the two appraisals obtained, the Borrower may, at its sole expense, obtain a third appraisal from an independent ship broker appointed by the Facility Agent, with the value of such Vessel to be deemed the average of the three valuations obtained.

 

“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 Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

 

 

 

11

 

 

“FCPA” has the meaning specified in Section 3.16(c).

 

“Federal Funds Rate” shall mean for any day the rate per annum (based on a year of 360 days and actual days elapsed) which is the daily federal funds open rate as quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day opposite the caption “OPEN” (or on such other substitute Bloomberg Screen that displays such rate), or as set forth on such other recognized electronic source used for the purpose of displaying such rate as selected by the Facility Agent (an “Alternate Source”) (or if such rate for such day does not appear on the Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source, or if there shall at any time, for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute screen) or any Alternate Source, a comparable replacement rate reasonably determined by Facility Agent at such time (which determination shall be conclusive absent manifest error); provided however, that if such day is not a Business Day, the Federal Funds Rate for such day shall be the “open” rate on the immediately preceding Business Day. 

 

“Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the United States.

 

“Fee Letter” means the letter agreement, dated June [__], 2017, among the Borrower and the Facility Agent, as may be amended, restated, modified or supplemented from time to time.

 

“Finance Party” means the Facility Agent, the Bookrunner, the Security Trustee, any Mandated Lead Arranger, the Arranger, any Lender and any Swap Bank, whether as at the date of this Agreement or at any later time.

 

“Financial Covenants” has the meaning specified in Section 7.01. 

 

“Financial Officer” means, as to any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person.

 

“First Repayment Date” means December 31, 2018 but, if all Lenders agree in writing, such date shall be January 4, 2019.

 

“Foreign Lender” means any Lender that is organized under the Laws of a jurisdiction other than the United States (or, in the case of a Lender that is classified for U.S. federal income tax purposes as an entity that is disregarded from another Person, such Lender if such Person is organized under the Laws of a jurisdiction other than the United States). For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

 

“Foreign Plan” means any employee pension benefit plan, program, policy, arrangement or agreement maintained or contributed to by the Borrower or any Subsidiary with respect to employees employed outside the United States (other than any governmental arrangement).

 

“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, bonds and similar extensions of credit in the ordinary course of its activities.

 

“GAAP” means, subject to Section 1.03, United States generally accepted accounting principles as in effect as of the date of determination thereof.

 

“Governmental Authority” means the government of the United States of America 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).

 

 

 

12

 

 

“Green Award” means The Green Award Foundation, an independent foundation established in 1994 on the initiative of the Rotterdam Municipal Port Management and the Dutch Ministry of Transport.

 

“Green Award Incentive Provider” means the name of any entity that has been appointed as such by the Green Award Foundation.

 

“Green Increase” has the meaning specified in Section 2.21(e).

 

“Green Passport” means a green passport statement of compliance issued by a classification society being a member of the International Association of Classification Societies (“IACS”) which includes a list of any and all materials known to be potentially hazardous utilized in the construction of a vessel.

 

“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); provided that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business. 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 8.01. 

 

“Guarantor Accession Agreement” means an agreement providing for the accession of a Person to this Agreement as a Guarantor in substantially the form of Exhibit G hereto, or in any other form approved by the Facility Agent;

 

“Guarantor Operating Account” means, in relation to a Vessel, an account in the name of the Guarantor owning that Vessel with the Account Bank designated “[Vessel Name] Guarantor Operating Account”.

 

“Guarantors” means, collectively, the Initial Guarantors and any Additional Guarantors that become a party hereto.

 

 

 

13

 

 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes, and other substances or wastes of any nature regulated under or with respect to which liability or standards of conduct are imposed pursuant to any Environmental Law.

 

“Incremental Commitment” has the meaning specified in Section 2.21(a).

 

“Incremental Commitment Effective Date” has the meaning specified in Section 2.21(c).

 

“Incremental Lender” has the meaning specified in Section 2.21(b). 

 

“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)     all direct or contingent obligations of such Person arising under (i) letters of credit (including standby and commercial), bankers’ acceptances and bank guaranties and (ii) surety bonds, performance bonds and similar instruments issued or created by or for the account of such Person;

 

(c)     net obligations of such Person under any Swap Contract;

 

(d)     all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business);

 

(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;

 

(g)     all obligations of such Person in respect of Disqualified Equity Interests; 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. The amount of any Indebtedness of any Person for purposes of clause (e) that is expressly made non-recourse or limited-recourse (limited solely to the assets securing such Indebtedness) to such Person shall be deemed to be equal to the lesser of (i) the aggregate principal amount of such Indebtedness and (ii) the fair market value of the property encumbered thereby as determined by such Person in good faith.

 

 

 

14

 

 

“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 the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Indemnitee” has the meaning specified in Section 11.03(b).

 

“Information” has the meaning specified in Section 11.12.

 

“Initial Borrowing Date” means the date of the first Borrowing to occur, in any event no later than the date falling fourteen (14) days after the Closing Date.

 

“Initial Guarantors” means, collectively, the Persons listed on Schedule II.

 

“Insurances” means, in relation to a Vessel:

 

(a)     all policies and contracts of insurance, including entries of that Vessel in any protection and indemnity or war risks association, effected in respect of that Vessel, or otherwise in relation to that Vessel whether before, on or after the date of this Agreement; and 

 

(b)     all rights and other assets relating to, or derived from, any of the foregoing, including any rights to a return of a premium and any rights in respect of any claim whether or not the relevant policy, contract of insurance or entry has expired on or before the date of this Agreement.

 

“Intangible Assets” means intangible assets under GAAP, including customer lists, goodwill, copyrights, trade names, trademarks, patents, franchises, licenses, unamortized deferred charges, unamortized debt discount and capitalized research and development costs.

 

“Interest Period” means a period determined in accordance with Section 2.05. 

 

“Interpolated Screen Rate” shall mean, in relation to LIBOR for any Loan or any part of it, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

 

(a)     the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the relevant Interest Period of that Loan or relevant part of it; and

 

(b)     the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the relevant Interest Period of that Loan or relevant part of it,

 

each as of 11:00 a.m. London time on the Quotation Day for Dollars.

 

“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 debt 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 incurs Indebtedness of the type referred to in clause (h) of the definition of “Indebtedness” in respect of such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of all or substantially all of the property and assets or business of another Person or assets constituting a business unit, line of business or division of such Person. 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 but giving effect to any returns or distributions of capital or repayment of principal actually received in case by such Person with respect thereto.

 

 

 

15

 

 

“IRS” means the United States Internal Revenue Service.

 

“ISM Code” means the International Safety Management Code (including the guidelines on its implementation), as adopted by the International Maritime Organization, as the same may be amended or supplemented from time to time (and the terms “safety management system”, “Safety Management Certificate” and “Document of Compliance” have the same meanings as are given to them in the ISM Code).

 

“ISM Code Documentation” includes, in respect of a Vessel: 

 

(a)     the Document of Compliance and Safety Management Certificate issued pursuant to the ISM Code in relation to that Vessel within the periods specified by the ISM Code;

 

(b)     all other documents and data which are relevant to the safety management system and its implementation and verification which the Facility Agent may require; and

 

(c)     any other documents which are prepared or which are otherwise relevant to establish and maintain that Vessel’s compliance or the compliance of the Guarantor that owns that Vessel or the relevant Approved Manager of such Vessel with the ISM Code which the Facility Agent may require.

 

“ISPS Code” means the International Ship and Port Facility Security Code, as adopted by the International Maritime Organization, as the same may be amended or supplemented from time to time. 

 

“ISPS Code Documentation” includes: 

 

(a)     the ISSC; and

 

(b)     all other documents and data which are relevant to the ISPS Code and its implementation and verification which the Facility Agent may require.

 

“ISSC” means a valid and current International Ship Security Certificate issued under the ISPS Code.

 

“Joinder Agreement” means a joinder or similar agreement entered into by any Person (including any Lender) under Section 2.21 pursuant to which such Person shall provide an Incremental Commitment hereunder and (if such Person is not then a Lender) shall become a Lender party hereto.

 

“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.

 

 

 

16

 

 

“Legacy Fleet”   means thirty eight vessels owned by Subsidiaries of the Parent other than the Obligors (and “Legacy Fleet” does not include any of the Delivered Vessels or any of the Remaining Vessels).

 

“Lenders” means the Persons listed on Schedule I, Part A, any Person that becomes a party hereto pursuant to a Joinder Agreement, and any other Person that shall have become party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. 

 

“Letters of Undertaking” has the meaning specified in Section 5.10.

 

“LIBOR” means, in relation to a Loan or any part of it: (a) the applicable Screen Rate; (b) if no Screen Rate is available for the relevant currency or the relevant Interest Period of a Loan or relevant part of it the Interpolated Screen Rate for a Loan or relevant part of it; or (c) if: (i) no Screen Rate is available for the relevant currency of a Loan or relevant part of it; or (ii) no Screen Rate is available for the relevant Interest Period of a Loan or relevant part of it and it is not possible to calculate an Interpolated Screen Rate for a Loan or relevant part of it, the Reference Bank Rate, as of, in the case of paragraphs (a) and (c) above, 11:00 a.m. London time on the Quotation Day for a period equal in length to the Interest Period of a Loan or relevant part of it and, if that rate is less than zero, LIBOR shall be deemed to be zero.

 

“Lien” means any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement 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).

 

“Liquidity Account” means an account in the name of the Borrower with the Account Bank designated “Eagle Bulk Ultraco – Liquidity Account”.

 

“Loan” means a loan by a Lender to the Borrower under Article II and, unless the context shall require otherwise, the term “Loan” shall also include any loans made pursuant to an Incremental Commitment or a Green Increase.

 

“Loan Documents” means, collectively: (a) this Agreement, (b) any Guarantor Accession Agreement, (c) any Joinder Agreement, (d) any Notes, (e) any Security Document, (f) the Fee Letter, and (g) any other documents, certificates, instruments or agreements executed by or on behalf of a Security Party for the benefit of any Finance Party in connection herewith on or after the date hereof that are jointly designated by such Security Party and the Facility Agent as a “Loan Document”. Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to this Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative.

 

“Manager’s Undertaking” means, in relation to a Vessel, the letter executed and delivered by an Approved Manager, in substantially the form of Exhibit H, or any other form approved by the Facility Agent.

 

“Mandated Lead Arranger” means ABN AMRO Capital USA LLC, DVB Bank SE, and Skandinaviska Enskilda Banken AB (publ), each in its capacity as mandated lead arranger. 

 

 

 

17

 

 

“Margin” means 2.95% per annum.

 

“Margin Stock” means margin stock within the meaning of Regulations T, U and X.

 

“Master Agreement” means any form of master agreement published by the International Swaps and Derivatives Association, Inc. or any other similar agreement used to evidence hedging agreements, together with any related schedules and confirmations.

 

“Master Agreement Assignment” means, in relation to each Master Agreement constituing Collateral, an assignment of such Master Agreement, in substantially the form of Exhibit I, or any other form approved by the Facility Agent.

 

“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect on, the operations, business, properties, liabilities (actual or contingent) or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole, or (b) a material adverse effect on (i) the ability of the Borrower to perform its Obligations, (ii) the legality, validity, binding effect or enforceability against the Borrower of any Loan Document to which it is a party or (iii) the rights, remedies and benefits available to, or conferred upon, the Facility Agent or any Lender under any Loan Documents.

 

“Maturity Date” means the date falling on the earlier of (i) five (5) years after the delivery of the last Remaining Vessel to occur and (ii) October 31, 2022.

 

“Maximum Rate” has the meaning specified in Section 11.14.

 

“Maximum Vessel Borrowing Amount” means in relation to any relevant Vessel, the amount specified in the column of the table in Schedule IV set forth opposite the name of such Vessel and marked “Maximum Vessel Borrowing Amount”. 

 

“Membership Interest Pledge” means a pledge of the membership interests of a Guarantor, in substantially the form of Exhibit J, or any other form approved by the Facility Agent.

 

“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, during the preceding five plan years has made or been obligated to make contributions, or has any liability.

 

“Multiple Employer Plan” means a Plan with respect to which the Borrower or any ERISA Affiliate is a contributing sponsor, and that has two or more contributing sponsors at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

 

“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all or all affected Lenders in accordance with the terms of Section 11.02 and (b) 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.

 

“Note” means a promissory note executed by the Borrower, to the order of a Lender in accordance with Section 2.11(b).

 

 

 

18

 

 

“Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, the Borrower arising under any Loan Document or any Secured Swap Contract or otherwise with respect to any Loan, 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 the Borrower 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. Without limiting the foregoing, the Obligations include (a) the obligation to pay principal, interest, charges, expenses, fees, indemnities and other amounts payable by the Borrower under any Loan Document, (b) the obligation of the Borrower to reimburse any amount in respect of any of the foregoing that the Facility Agent or any Lender, in each case in its sole discretion, may elect to pay or advance on behalf of the Borrower in accordance with this Agreement or any other Loan Document, and (c) obligations under a Secured Swap Contract.

 

“Obligor Materials” has the meaning specified in Section 11.01(e).

 

“Obligors” means, collectively, the Borrower and the Guarantors, and “Obligor” means any of them as the context may require.

 

“OFAC” has the meaning specified in Section 3.16(b).

 

“Operating Accounts” means, collectively, the Borrower Operating Account and each Guarantor Operating Account.

 

“Organizational Documents” means (a) as 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) as to any limited liability company, the certificate or articles of formation or organization and operating or limited liability agreement and (c) as to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

 

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising 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 having sold or assigned an interest in any Loan or Loan Document).

 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.19(b)).

 

“Parallel Liability” means an Obligor's undertaking pursuant to Clause 8.12.

 

“Parent” means Eagle Bulk Shipping Inc., a corporation incorporated and existing under the laws of the Republic of the Marshall Islands.

 

 

 

19

 

 

“Participant” has the meaning specified in Section 11.04(d).

 

“Participant Register” has the meaning specified in Section 11.04(d).

 

“PATRIOT Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Pension Act” means the Pension Protection Act of 2006.

 

“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum funding standards and minimum required contributions (including any installment payment thereof) to Pension Plans and Multiemployer 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, but excluding a Multiemployer Plan) that is maintained or is contributed to by the Borrower or 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 Holders” means each of the Persons owning more than fifteen percent (15%) of the Voting Stock of the Parent on the date hereof, in each case together with their Affiliates, investment advisory clients and managed accounts.

 

“Permitted Lien” has the meaning specified in Section 6.02.

 

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

 

“Pertinent Jurisdiction” means, in relation to a Person:

 

(a)     the jurisdiction under the laws of which the Person is incorporated or formed;

 

(b)     a jurisdiction in which the Person has the center of its main interests or in which the Person’s central management and control is or has recently been exercised;

 

(c)     a jurisdiction in which the overall net income of the Person is subject to corporation tax, income tax or any similar tax;

 

(d)     a jurisdiction in which assets of the Person (other than securities issued by, or loans to, related Persons) having a substantial value are situated, in which the Person maintains a branch or permanent place of business, or in which a Lien created by the Person must or should be registered in order to ensure its validity or priority; or

 

(e)     a jurisdiction the courts of which have jurisdiction to make a winding up, administration or similar order in relation to the Person whether as a main or territorial or ancillary proceedings or which would have such jurisdiction if their assistance were requested by the courts of a country referred to in paragraphs (a) or (b) above.

 

 

 

20

 

 

“Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA, maintained for employees of the Borrower or any Subsidiary, or any such plan to which the Borrower or any Subsidiary is required to contribute on behalf of any of its employees or with respect to which the Borrower has any liability.

 

“Platform” means Debt Domain, Intralinks, Syndtrak, DebtX or a substantially similar electronic transmission system.

 

“Prepayment Notice” means a notice by the Borrower to prepay Loans, which shall be in such form as the Facility Agent may approve.

 

“Prohibited Person” means any Person (whether designated by name or by reason of being included in a class of Persons) against whom Sanctions are directed. 

 

“Purchase Price” means, in respect of a Vessel, the total purchase price payable for it under the memorandum of agreement relating to the sale and purchase of such Vessel entered into between the seller thereof and the relevant Guarantor as buyer. 

 

“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Guarantor that has total assets exceeding $10,000,000 at the time the relevant guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Quotation Day” shall mean, in relation to any period for which an interest rate is to be determined, two Business Days in New York, before the first day of that period.

 

“Recipient” means (a) the Facility Agent, or (b) any Lender, as applicable. 

 

“Reference Bank Rate” shall mean the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Facility Agent at its request by the Reference Banks in relation to LIBOR, as the rate at which the relevant Reference Bank could borrow funds in the London interbank eurodollar market, in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period.

 

“Reference Banks” shall mean, such money center banks that are not affiliated with the Facility Agent as are identified by the Facility Agent to the Borrower from time to time.

 

“Register” has the meaning specified in Section 11.04(c).

 

“Regulation T” means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

 

“Regulation U” means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

 

“Regulation X” means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

 

 

 

21

 

 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates.

 

“Relevant Date” has the meaning specified in Section 2.07(b)(iii)(A).

 

“Relevant Party” has the meaning specified in Section 2.16(i).

 

“Remaining Vessel” means any of the Vessels identified in Schedule IV, Part B.

 

“Removal Effective Date” has the meaning specified in Section 10.05(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.

 

“Required Lenders” means, at any time, Lenders having Total Credit Exposures representing at least 66 2/3% of the Total Credit Exposures of all Lenders. The Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

 

“Requisition” means: (a) any expropriation, confiscation, requisition or acquisition of a Vessel, whether for full consideration, a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding a requisition for hire for a fixed period not exceeding one year without any right to an extension) unless it is within 30 days redelivered to the full control of the Guarantor being the owner thereof; and (b) any capture or seizure of a Vessel (including any hijacking or theft) unless it is within 30 days redelivered to the full control of the Guarantor being the owner thereof.

 

“Requisition Compensation” includes all compensation or other moneys payable by reason of any Requisition.

 

“Resignation Effective Date” has the meaning specified in Section 10.05(a). 

 

“Responsible Officer” means (a) the chief executive officer, president, executive vice president or a Financial Officer of the Borrower, (b) solely for purposes of the delivery of incumbency certificates and certified Organizational Documents and resolutions pursuant to Section 4.01, any vice president, secretary or assistant secretary of the Borrower and (c) solely for purposes of Borrowing Requests, prepayment notices and notices for Commitment terminations or reductions given pursuant to Article II, any other officer or employee of the Borrower so designated from time to time by one of the officers described in clause (a) in a notice to the Facility Agent (together with evidence of the authority and capacity of each such Person to so act in form and substance satisfactory to the Facility Agent). Any document delivered hereunder that is signed by a Responsible Officer of the Borrower shall be conclusively presumed to have been authorized by all necessary corporate, partnership or other action on the part of the Borrower and such Responsible Officer shall be conclusively presumed to have acted on behalf of the Borrower.

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interest of any Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interest, or on account of any return of capital to such Person’s shareholders, partners or members (or the equivalent Persons thereof).

 

 

 

22

 

 

“Sanctions” has the meaning specified in Section 3.16(b).

 

“Screen Rate” means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other Person which takes over the administration of that rate) for Dollars and the relevant period displayed (before any correction, recalculation or republication by the administrator) on pages LIBOR01 or LIBOR02 of Bloomberg or the Thomson Reuters screen (or any replacement page which displays that rate) or on the appropriate page of such other information service that publishes that page from time to time in place of such pages. If the agreed pages are replaced or service ceases to be available, the Facility Agent may specify another page or service displaying the appropriate rate after consultation with the Borrower and the Lenders. 

 

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

 

“Secured Swap Contract” means a Swap Contract between the Borrower and a Swap Bank.

 

“Security Documents” means, collectively: (a) any Charter Assignment (as applicable), (b) any Account Pledge, (c) any Assignment of Earnings, (d) any Assignment of Insurances, (e) any Manager’s Undertaking, (f) any Master Agreement Assignment, (g) any Membership Interest Pledge, (h) any Vessel Mortgage, and (i) and each other security document or pledge agreement delivered in accordance with applicable local Laws to grant a valid, enforceable, perfected security interest (with the priority required under the Loan Documents) in any property as Collateral for the Obligations, and all UCC or other financing statements or instruments of perfection required with respect thereto.

 

“Security Party” means the Obligors and any other person (except a Finance Party and an Approved Manager which is unaffiliated with the Borrower or the Guarantors) who, as a surety, guarantor, mortgagor, assignor or pledgor, as a party to any subordination or priorities arrangement, or in any similar capacity, executes a Loan Document.

 

“Security Trustee” means ABN AMRO Capital USA LLC, in its capacity as security trustee pursuant to Section 10.01(b) and under any of the Loan Documents, or any successor security trustee.

 

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

 

“Shortfall Fiscal Quarter” has the meaning specified in Section 7.04. 

 

“Solvent” means, as to any Person as of 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 saleable value 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 and (d) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

 

 

23

 

 

“Specified Contribution” has the meaning specified in Section 7.04. 

 

“Specified Loan Party” means any Security Party that is not then an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving effect to Section 8.11). 

 

“Subsidiary” of a Person means a corporation, partnership, limited liability company, association or joint venture or other business entity of which a majority of the Equity 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 owned or the management of which is controlled, directly, or indirectly through one or more intermediaries, by such Person. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower. 

 

“Supplier” has the meaning specified in Section 2.16(i).

 

“Sustainability Option” has the meaning specified in Section 2.21(e).

 

“Swap Bank” means any Lender that elects to be a Swap Bank, including those initially listed in Schedule I, Part B, acting on behalf of itself and its Affiliates as a counterparty to a Secured Swap Contract with the Borrower.

 

“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 Master Agreement, including any such obligations or liabilities under any Master Agreement.

 

“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act; 

 

“Swap Termination Value” means, as to 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 by the relevant Swap Bank in accordance with its customary practices.

 

“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 creating obligations that do not appear on the balance sheet of such Person but, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

 

 

 

24

 

 

“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. 

 

“Total Credit Exposure” means, as to any Lender at any time, the unused Commitments and the aggregate principal amount of the outstanding Loans of such Lender at such time. 

 

“Total Commitments” means the aggregate of the Commitments, being a maximum of $61,200,000 on the Closing Date.

 

“Total Loss” means: (a) actual, constructive, compromised, agreed or arranged total loss of a Vessel; or (b) any Requisition of a Vessel.

 

“Total Loss Date” means, in relation to the Total Loss of a Vessel: (a) in the case of an actual loss of a Vessel, the date on which it occurred or, if that is unknown, the date when that Vessel was last heard of; (b) in the case of a constructive, compromised, agreed or arranged total loss of a Vessel, the earlier of: (i) the date on which a notice of abandonment is given to the insurers; and (ii) the date of any compromise, arrangement or agreement made by or on behalf of the Borrower and/or the Guarantor who owns such Vessel with the Vessel’s insurers in which the insurers agree to treat that Vessel as a total loss; and (c) in the case of any other type of Total Loss, the date (or the most likely date) on which it appears to the Facility Agent that the event constituting the total loss occurred.

 

“United States” and “U.S.” mean the United States of America.

 

“U.S. Borrower” means the Borrower if it is a U.S. Person.

 

“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 2.16(g).

 

“Vessel Mortgage” means, in relation to a Vessel, the first priority or first preferred mortgage on that Vessel, in substantially the form of Exhibit K, or any other form approved by the Facility Agent.

 

“Vessels” means, collectively, the Delivered Vessels, the Remaining Vessels, and, as the context may require, any additional vessel owned by an Additional Guarantor.

 

“Wholly-Owned” means, as to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (a) director’s qualifying shares and (b) shares issued to foreign nationals to the extent required by Applicable Law) are owned by such Person and/or by one or more Wholly-Owned Subsidiaries of such Person.

 

“Withholding Agent” means the Borrower and the Facility Agent.

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

 

 

25

 

 

1.02     Terms Generally. 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 (a) any definition of or reference to any agreement, instrument or other document herein 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), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) 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.

 

1.03     Accounting Terms; Changes in GAAP.

 

(a)     Accounting Terms. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall be construed in conformity with GAAP. Financial statements and other information required to be delivered by the Borrower to the Lenders pursuant to Sections 5.01(a) and 5.01(b) shall be prepared in accordance with GAAP as in effect at the time of such preparation. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded. 

 

(b)     Changes in GAAP. If the Borrower notifies the Facility Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Facility Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

 

1.04     Rates. The Facility Agent does not warrant, nor accept responsibility, nor shall the Facility Agent have any liability with respect to the administration, submission or any other matter related to the rates in the definition of “LIBOR” or with respect to any comparable or successor rate thereto.

 

 

 

26

 

 

ARTICLE II

COMMITMENTS 

 

2.01     Commitments. Subject to the terms and conditions set forth herein, each Lender severally agrees to make Loans to the Borrower in up to nine (9) Borrowings from time to time on any Business Day during the Availability Period in an aggregate principal amount not to exceed such Lender’s Commitment; provided however that after giving effect to any Loan the total amount of Loans made shall not exceed the Total Commitments. Each Borrowing shall be applied to finance, refinance or reimburse the acquisition cost (including through the payment of distributions to the Parent) of (a) a Delivered Vessel or (b) a Remaining Vessel, and shall be in an amount up to the Maximum Vessel Borrowing Amount in respect of such Vessel, provided, however, that no Borrowing shall exceed 40% of the lesser of (i) the Purchase Price of such Vessel and (ii) the Fair Market Value of such Vessel. Any amounts repaid, prepaid or cancelled may not be reborrowed.

 

2.02     Loans and Borrowings.

 

(a)     Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders in up to nine (9) Borrowings (as described in Section 2.01 above) ratably in accordance with their respective Commitments. 

 

2.03     Borrowing Requests

 

(a)     Notice by Borrower. Each Borrowing shall be made upon the Borrower’s irrevocable notice to the Facility Agent. Each such notice shall be in the form of a written Borrowing Request, appropriately completed and signed by a Responsible Officer of the Borrower and must be received by the Facility Agent not later than 11:00 a.m. (New York City time) three Business Days prior to the date of the requested Borrowing.

 

(b)     Content of Borrowing Requests. Each Borrowing Request for a Borrowing pursuant to this Section shall specify the following information: (i)  the aggregate amount of the requested Borrowing; (ii) the Vessel to which the Borrowing relates; (iii) the date of such Borrowing (which shall be a Business Day); (iv) the Interest Period therefor; and (v) the location and number of the Borrower’s account, or such other account as the Borrower may specify in the relevant Borrowing Request, to which funds are to be disbursed.

 

(c)     Notice by Facility Agent to Lenders. Promptly following receipt of a Borrowing Request, the Facility Agent shall advise each Lender of the details thereof and the amount of such Lender’s Loan to be made as part of the requested Borrowing (which shall be the Applicable Percentage of the amount specified in the Borrowing Request).

 

(d)     Failure to Elect. If no Interest Period is specified with respect to any requested Borrowing, the Borrower shall be deemed to have selected an Interest Period of three months’ duration.

 

 

 

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2.04     Funding of Borrowings.

 

(a)     Funding by Lenders. Each Lender shall make the amount of its Loan available to the Facility Agent in immediately available funds at the Facility Agent’s Office not later than 1:00 p.m. (New York time) on the Business Day specified in the applicable Borrowing Request. Upon satisfaction of the applicable conditions set forth in Article IV, the Facility Agent shall make all funds so received available to the Borrower in like funds as received by the Facility Agent either by (i) crediting the Operating Account of the Borrower on the books of the Facility Agent with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with the instructions provided to the Facility Agent by the Borrower.

 

(b)     Presumption by Facility Agent. Unless the Facility Agent shall have received notice from a Lender, prior to the proposed date of any Borrowing that such Lender will not make available to the Facility Agent such Lender’s share of such Borrowing, the Facility Agent may assume that such Lender has made such share available on such date in accordance with Section 2.04(a) 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 Facility Agent, then the applicable Lender and the Borrower severally agree to pay to the Facility Agent forthwith on demand such corresponding amount 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 Facility Agent, at (i) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by the Facility Agent in accordance with banking industry rules on interbank compensation, and (ii) in the case of a payment to be made by the Borrower, the interest rate applicable to the respective Borrowing, as determined pursuant to Section 2.09. If the Borrower and such Lender shall pay such interest to the Facility Agent for the same or an overlapping period, the Facility 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 Facility Agent, then the amount so paid shall constitute such Lender’s Loan included in 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 Facility Agent.

 

(c)     Disbursement of Borrowing to Third Party. To the extent requested in writing by the Borrower, the payment by the Facility Agent to a Person other than the Borrower shall constitute the making of the relevant Borrowing and the Borrower shall at that time become indebted, as principal and direct obligor, to each Lender in an amount equal to that Lender’s participation in that Borrowing.

 

2.05     Interest Periods. The Loans comprising each Borrowing initially shall be specified in the applicable Borrowing Request and shall have the Interest Period specified in such Borrowing Request. The first Interest Period for a Borrowing shall commence on the date of such Borrowing and (a) in the case of the first Borrowing or Borrowings, shall end on the numerically corresponding day in the calendar month that is three or six months thereafter, as specified in the applicable Borrowing Request, and (b) in the case of each subsequent Borrowing, shall end on the last day of the other then subsisting Interest Period. Thereafter, the duration of each Interest Period shall be three or six months as the Borrower may, upon notice received by the Facility Agent not later than 11:00 a.m. (New York City time) three Business Days prior to the first day of such Interest Period, select, or such other period as the Facility Agent may, with the authorization of all the Lenders agree with the Borrower, provided, however, (i) 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; (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period; (iii) any Interest Period commencing prior to the First Repayment Date shall end no later than the First Repayment Date; and (iv) any Interest Period selection made by the Borrower shall be irrevocable, and if the Borrower fails to select an Interest Period in accordance with this Section 2.05, then, subject to the above proviso, the Borrower shall be deemed to have selected an Interest Period of three months.

 

 

 

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2.06     Repayment.

 

(a)       Amounts. The Borrower shall repay the principal amount of each Borrowing by:

 

(i)     equal consecutive quarterly principal repayment installments each in the amount specified in the column of the table in Schedule IV set forth opposite the name of such Vessel and marked “Quarterly Installment Amount”; and

 

(ii)     a final balloon payment (the “Balloon Installment”) in an amount equal to the aggregate principal amount of such Borrowing outstanding on the Maturity Date;

 

provided that if any Borrowing is made for a Vessel in an amount less than the relevant Maximum Vessel Borrowing Amount, then the quarterly repayment installments and the Balloon Installment for such Borrowing specified in this Section 2.06(a) shall be reduced pro rata by the undrawn amount.

 

(b)     Repayment Dates. Each quarterly principal repayment installment in respect of each Borrowing shall be repaid commencing on the First Repayment Date, and thereafter on March 31, June 30, September 30 and December 31 of each calendar year, provided that the Balloon Installment in respect of each Borrowing shall be repaid on the Maturity Date.

 

(c)      Maturity Date. On the Maturity Date, the Borrower shall additionally pay to the Facility Agent for the account of the Finance Parties all other sums then accrued and owing under any Loan Document and any Secured Swap Contract.

 

2.07     Prepayments.

 

(a)      Optional Prepayments. The Borrower may, upon notice to the Facility Agent, at any time and from time to time prepay any Borrowing in whole or in part without premium or penalty, except for payments owed pursuant to Section 2.10(c), subject to the requirements of this Section.

 

(i)     Notices. Each such notice pursuant to this Section shall be in the form of a written Prepayment Notice, appropriately completed and signed by a Responsible Officer of the Borrower, and must be received by the Facility Agent not later than 11:00 a.m. (New York City time) three (3) Business Days before the date of prepayment. Each Prepayment Notice shall specify (x)  the prepayment date and (y) the principal amount of each Borrowing or portion thereof to be prepaid. Promptly following receipt of any such notice relating to a Borrowing, the Facility Agent shall advise the applicable Lenders of the contents thereof. Each Prepayment Notice shall be irrevocable.

 

(ii)     Amounts. Each partial prepayment shall be in the aggregate principal amount of at least $1,000,000 or integral multiples of $1,000,000. Any amounts prepaid may not be reborrowed.

 

 

 

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(b)     Mandatory Prepayments.

 

(i)     If a Vessel is sold or becomes a Total Loss, the Borrower shall on the Relevant Date prepay the outstanding amount of the relevant Borrowing relating to such Vessel plus any additional amount required to comply with Section 5.04 immediately after giving effect to such prepayment.

 

(ii)     (A) If a Change of Control occurs in respect of the Borrower or the Parent, the Borrower shall on the Relevant Date prepay the aggregate principal amount at such time of its outstanding Loans in full; and (B) if a Change of Control occurs in respect of a Guarantor, the Borrower shall on the Relevant Date prepay the outstanding amount of the relevant Borrowing relating to the Vessel owned by such Guarantor as if a sale of such Vessel had been completed on the date such Change of Control occurred plus any additional amount required to comply with Section 5.04 immediately after giving effect to such prepayment.

 

(iii)     In this Section 2.07(b), “Relevant Date” means: (1) in the case of a sale of a Vessel, on the date on which the sale is completed by delivery of the relevant Vessel to its buyer, (2) in the case of a Total Loss of a Vessel, on the earlier of: (x) the date falling 180 days after the Total Loss Date, and (y) the date of receipt by the Security Trustee of the proceeds of insurance relating to such Total Loss and (3) in the case of a Change of Control, the date such Change of Control occurs.

 

(c)     Application. 

 

(i)     Each prepayment of a Borrowing pursuant to Section 2.07(a) shall be applied pro rata to the repayment installments (including the Balloon Installment) for such Borrowing specified in Section 2.06. 

 

(ii)     Each prepayment made to satisfy Section 5.04 or Section 7.04 shall be applied against the repayment installments specified in Section 2.06(a) in inverse order of maturity starting with the Balloon Installment. 

 

(iii)     Prepayments shall be accompanied by accrued interest to the extent required by Section 2.09, together with any additional amounts required pursuant to Section 2.14.

 

2.08     Cancellation of Commitments. The Borrower may, upon prior notice to the Facility Agent, cancel any unused portion of the Commitments; provided that each such notice shall be in writing and must be received by the Facility Agent at least three (3) Business Days prior to the effective date of such cancellation, and shall be irrevocable. Any amounts cancelled may not be reinstated.

 

2.09     Interest.

 

(a)     Interest Rate. The Loans or any part of the Loans shall bear interest at a rate per annum equal to the sum of the aggregate of the Margin plus LIBOR for the relevant Interest Period as in effect from time to time.

 

 

 

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(b)     Default Interest. Notwithstanding the foregoing, (i) upon the occurrence and during the continuance of any Default under Section 9.01(a) or any Event of Default under Section 9.01(a), (b), (g) or (h), each Loan shall bear interest, after as well as before judgment, at a rate per annum equal to the applicable Default Rate, and (ii) without duplication of any amounts payable pursuant to preceding clause (i), overdue principal and, to the extent permitted by applicable law, overdue interest, in respect of the Loans shall bear interest, after as well as before judgment, at a rate per annum equal to the applicable Default Rate from time to time.

 

(c)     Payment Dates. Accrued interest on the Loans shall be payable on the last day of each Interest Period applicable thereto and at such other times as may be specified herein; provided that (i) interest accrued pursuant to paragraph (b) of this Section shall be payable on demand and (ii) in the event of any repayment or prepayment of any Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment. If an Interest Period is longer than three months, the Borrower shall also pay interest then accrued on the Loans or the relevant part of the Loans on the dates falling at three monthly intervals after the first day of the Interest Period.

 

(d)     Interest Computation. All interest hereunder shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

2.10     Fees.

 

(a)     Commitment Fees. The Borrower agrees to pay to the Facility Agent for the account of each Lender a commitment fee on the undrawn and un-cancelled amount of the Commitment of such Lender, which shall accrue at a rate per annum equal to 40% of the Margin during the period from and including the Closing Date up to but excluding the Commitment Termination Date. Accrued commitment fees shall be payable quarterly in arrears on the last day of each calendar quarter, commencing on September 30, 2017, and on the date of the last Borrowing to occur. Commitment fees on any cancelled portion of the Commitment of a Lender shall be paid on the date such cancellation is effective.

 

(b)     Upfront Fees. The Borrower agrees to pay to the Facility Agent, for distribution among the Lenders, upfront fees as set forth in the Fee Letter.

 

(c)     Prepayment Fees. Upon voluntary prepayment of the Loan (or any part thereof) pursuant to Section 2.07(a), the Borrower agrees to pay to the Facility Agent as from the Closing Date for distribution among the Lenders a prepayment fee at a rate equal to: (i) during the period commencing on the Closing Date and ending on the day before the first anniversary thereof, 1.50% and (ii) during the period commencing on the first anniversary of the Closing Date and ending on the day before the second anniversary of the Closing Date, 0.75%, in each case, of the amount voluntarily prepaid. From the second anniversary of the Closing Date and at all times thereafter, no prepayment fee shall be payable by the Borrower for any amount voluntarily prepaid.

 

2.11     Evidence of Debt.

 

(a)     Maintenance of Records. Each Lender shall maintain in accordance with its usual practice records evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender. The Facility Agent shall maintain the Register in accordance with Section 11.04(c). The entries made in the records maintained pursuant to this paragraph (a) shall be prima facie evidence absent manifest error of the existence and amounts of the obligations recorded therein. Any failure of any Lender or the Facility Agent to maintain such records or make any entry therein or any error therein shall not in any manner affect the obligations of the Borrower under this Agreement and the other Loan Documents. In the event of any conflict between the records maintained by any Lender and the records maintained by the Facility Agent in such matters, the records of the Facility Agent shall control in the absence of manifest error.

 

 

 

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(b)     Promissory Notes. Upon the request of any Lender made through the Facility Agent, the Borrower shall prepare, execute and deliver to the order of such Lender a promissory note of the Borrower payable to such Lender in the form of Exhibit L, or any other form approved by the Facility Agent, which shall evidence such Lender’s Loans in addition to such records.

 

2.12     Payments Generally; Several Obligations of Lenders and Swap Banks.

 

(a)     Payments by Borrower. All payments to be made by the Borrower hereunder and the other Loan Documents shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all such payments shall be made to the Facility Agent, for the account of the respective Lenders to which such payment is owed, at the Facility Agent’s Office in immediately available funds not later than 12:00 noon (New York City time) on the date specified herein. All amounts received by the Facility Agent after such time on any date shall be deemed to have been received on the next succeeding Business Day and any applicable interest or fees shall continue to accrue. The Facility Agent will promptly distribute to each Lender its ratable share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s applicable lending office (or otherwise distribute such payment in like funds as received to the Person or Persons entitled thereto as provided herein). If any payment to be made by the Borrower shall fall due on a day that is not a Business Day, payment shall be made on the next succeeding Business Day and such extension of time shall be reflected in computing interest or fees, as the case may be; provided that, if such next succeeding Business Day would fall after the Maturity Date, payment shall be made on the immediately preceding Business Day. Except as otherwise expressly provided herein, all payments hereunder or under any other Loan Document shall be made in Dollars.

 

(b)     Application of Insufficient Payments. Subject to Section 7.02, if at any time insufficient funds are received by and available to the Facility Agent to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied (i) first, to pay interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, to pay principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties.

 

(c)     Presumptions by Facility Agent. Unless the Facility Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Facility Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Facility Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders, 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 Lenders, as the case may be, severally agrees to repay to the Facility Agent forthwith on demand the amount so distributed to such Lender, 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 Facility Agent, at the greater of the Federal Funds Rate and a rate determined by the Facility Agent in accordance with banking industry rules on interbank compensation.

 

 

 

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(d)     Deductions by Facility Agent. If any Lender shall fail to make any payment required to be made by it pursuant to Section  2.04(b), 2.10 or 11.03(c), then the Facility Agent may, in its discretion and notwithstanding any contrary provision hereof, (i) apply any amounts thereafter received by the Facility Agent for the account of such Lender for the benefit of the Facility Agent, as applicable, to satisfy such Lender’s obligations to the Facility Agent until all such unsatisfied obligations are fully paid or (ii) hold any such amounts in a segregated account as cash collateral for, and application to, any future funding obligations of such Lender under any such Section, in the case of each of clauses (i) and (ii) above, in any order as determined by the Facility Agent in its discretion.

 

(e)     Several Obligations of Lenders and Swap Banks. The obligations of the Lenders hereunder to make Loans, to fund participations in Loans and to make payments pursuant to Section 11.03(c) are several and not joint. The failure of any Lender to make any Loan or to fund any such participation or to make any such payment 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 participations or to make its payment under Section 11.03(c). The obligations of the Swap Banks hereunder and under the Swap Contracts are several and not joint.

 

2.13     Sharing of Payments. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans or participations in Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Facility Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations 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 principal of and accrued interest on their respective Loans and participations in Loans and other amounts owing them; provided that:

 

(i)     if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

 

(ii)     the provisions of Section 2.13 shall not be construed to apply to (x) any payment made by 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) or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).

 

The Borrower 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 the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

 

 

 

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2.14     Compensation for Losses. In the event of (a) the payment of any principal of the Loans other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b)  the failure to borrow, continue or prepay on the date specified in any notice delivered pursuant hereto or (c ) the assignment of the Loans or any part thereof other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19(b), then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Loan had such event not occurred, at the interest rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest that would accrue on such principal amount for such period at the interest rate that such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the London interbank eurodollar market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section 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 within 10 days after receipt thereof.

 

2.15     Increased Costs.

 

(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;

 

(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

 

(iii)     impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender or to reduce the amount of any sum received or receivable by such Lender or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or other Recipient, the Borrower will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

 

(b)     Capital Requirements. If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender, to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

 

 

 

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(c)     Certificates for Reimbursement. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay such Lender, 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 to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

 

2.16     Taxes.

 

(a)     Defined Terms. For purposes of this Section, the term “Applicable Law” includes FATCA.

 

(b)     Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

 

(c)     Payment of Other Taxes by Borrower. The Borrower shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Facility Agent timely reimburse it for the payment of, any Other Taxes.

 

(d)     Indemnification by Borrower. The Borrower shall indemnify each Recipient, 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) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any 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 Borrower by a Lender (with a copy to the Facility Agent), or by the Facility Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

 

 

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(e)     Indemnification by the Lenders. Each Lender shall severally indemnify the Facility Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Facility Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 11.04(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Facility Agent 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 Facility Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Facility Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Facility Agent to the Lender from any other source against any amount due to the Facility Agent under this paragraph (e).

 

(f)     Evidence of Payments. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section, the Borrower shall deliver to the Facility 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 Facility Agent.

 

(g)     Status of Lenders. Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Facility Agent, at the time or times reasonably requested by the Borrower or the Facility Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Facility 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 Borrower or the Facility Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower or the Facility Agent as will enable the Borrower or the Facility 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 set forth in paragraphs (g)(ii)(A), (ii)(B) and (ii)(D) of this Section) 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.

 

(i)     Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Borrower,

 

(A)     any Lender that is a U.S. Person shall deliver to the Borrower and the Facility Agent on or about the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Facility Agent), executed copies 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 Borrower and the Facility Agent (in such number of copies as shall be requested by the recipient) on or about 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 Borrower or the Facility Agent), whichever of the following is applicable:

 

(1)     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 copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E 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;

 

 

 

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(2)     executed copies of IRS Form W-8ECI;

 

(3)     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 M-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 Borrower within the meaning of Section 871(h)(3)(B) of the Code, or a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E; or

 

(4)     to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit M-2 or Exhibit M-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 M-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 Borrower and the Facility Agent (in such number of copies as shall be requested by the recipient) on or about 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 Borrower or the Facility Agent), executed copies of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower or the Facility 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 Borrower and the Facility Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Facility Agent such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Facility Agent as may be necessary for the Borrower and the Facility 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, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

 

 

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Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Facility Agent in writing of its legal inability to do so.

 

(h)     Treatment of Certain Refunds. If any party 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 pursuant to this Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party 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 paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

 

2.17      Inability to Determine Rates. If, on or prior to the first day of any Interest Period (an “Affected Interest Period”):

 

(a)     the Facility Agent determines (which determination shall be conclusive and binding on the Borrower) that, by reason of circumstances affecting the London interbank eurodollar market, LIBOR cannot be determined pursuant to the definition thereof, or

 

(b)      a Lender or Lenders whose participations in a Loan or the relevant part of a Loan exceed 50% of that Loan or the relevant part of that Loan (the “Affected Lender”) determine that for any reason the cost to such Lender or Lenders of funding such Loan or such part of such Loan from the London interbank eurodollar market or, if cheaper, from whatever source it may reasonably select would be in excess of LIBOR for the relevant Interest Period,

 

the Facility Agent will promptly so notify the Borrower and each Lender and the rate of interest on the Affected Lender’s share of a Loan or the relevant part of a Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of:

 

(i)     the Margin; and

 

(ii)     the rate notified to the Facility Agent by that Affected Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period to be that which expresses as a percentage rate per annum the cost to the relevant Affected Lender of funding its participation in a Loan or that part of a Loan from whatever source it may reasonably select.

 

 

 

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2.18     Illegality. Notwithstanding any other provision of this Agreement, if the introduction of or any change in or in the interpretation of any Law or regulation makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful, for any Lender to perform its obligations hereunder to make the Loans or to fund or maintain the Loans or any portion thereof hereunder, then, upon written notice by the Facility Agent to the Borrower, the Facility Agent and the Borrower shall negotiate in good faith to agree on terms for that Lender to continue the Loans or any portion thereof on a basis which is not unlawful. If no agreement shall be reached between the Borrower and the Facility Agent within a period which in the sole discretion of the Facility Agent is reasonable, the Facility Agent shall be entitled to give notice to the Borrower that the obligation of that Lender to make or maintain the Loans or any portion thereof, as the case may be, shall be forthwith terminated and the amount of that Lender’s Commitment shall be reduced accordingly, and thereupon the aggregate outstanding principal amount of the Loans or any relevant portion thereof, as the case may be, shall become due and payable in full, together with accrued interest thereon and other sums payable hereunder, and such amounts as the Borrower shall be obligated to reimburse that Lender pursuant to Section 11.03(b) if earlier prepayment is required by any Law, regulation and/or regulatory requirement; provided, however, that, before making any such demand, that Lender shall designate a different lending office for monitoring the Loans if the making of such a designation would avoid the need for giving such notice and demand and would not, in the judgment of that Lender, be otherwise disadvantageous to that Lender.

 

2.19     Mitigation Obligations; Replacement of Lenders.

 

(a)     Designation of a Different Lending Office. If any Lender requests compensation under Section 2.15, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.16, then such Lender shall (at the request of the Borrower) 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, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.16, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)     Replacement of Lenders. If any Lender requests compensation under Section 2.15, 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 2.16 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with paragraph (a) of this Section, or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Facility 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 11.04), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.15 or Section 2.16) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

 

(i)     the Borrower shall have paid to the Facility Agent the assignment fee (if any) specified in Section 11.04;

 

 

 

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(ii)     such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 2.14 and Section 11.03(a)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

 

(iii)     in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.16, such assignment will result in a reduction in such compensation or payments thereafter;

 

(iv)     such assignment does not conflict with Applicable Law; and

 

(v)     in the case of any 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.

 

Notwithstanding anything in this Section to the contrary, (i) the Lender that acts as the Facility Agent may not be replaced hereunder except in accordance with the terms of Section 10.05.

 

2.20     Defaulting Lenders.

 

(a)     Defaulting Lender Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

 

(i)     Waivers and Amendments. Such 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 and Section 11.02(b).

 

(ii)     Defaulting Lender Waterfall. Any payment of principal, interest, fees or other amounts received by the Facility Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VII or otherwise) or received by the Facility Agent from a Defaulting Lender pursuant to Section 11.08 shall be applied at such time or times as may be determined by the Facility Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Facility Agent hereunder; second, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Facility Agent; third, if so determined by the Facility Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to the Loans under this Agreement; fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no Default or Event of 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 such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and sixth, to such 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 the Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the relevant conditions set forth in Article IV were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with the Commitments. 

 

 

 

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(iii)     Commitment Fees. No Defaulting Lender shall be entitled to receive any commitment fee 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)     Defaulting Lender Cure. If the Borrower, the Facility Agent and each Lender agree in writing that a Lender is no longer a Defaulting Lender, the Facility 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, 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 Facility Agent may determine to be necessary to cause the Loans to be held pro rata by the Lenders in accordance with the Commitments, whereupon such 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 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.

 

(c)     Termination of Defaulting Lender. The Borrower may terminate the unused amount of the Commitment of any Lender that is a Defaulting Lender upon not less than five Business Days’ prior notice to the Facility Agent (which shall promptly notify the Lenders thereof), and in such event the provisions of Section 2.20(a)(ii) will apply to all amounts thereafter paid by the Borrower for the account of such Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts); provided that (i) no Event of Default shall have occurred and be continuing, and (ii) such termination shall not be deemed to be a waiver or release of any claim the Borrower, the Facility Agent or any Lender may have against such Defaulting Lender.

 

2.21     Increases in Commitments.

 

(a)     Request for Increase. The Borrower may, by notice to the Facility Agent (who shall promptly notify the Lenders), request up to five increases in the Commitments to finance the acquisition of one or more vessels owned by one or more Additional Guarantors (such increase, an “Incremental Commitment”); provided that such increases shall be in an aggregate amount not exceeding an amount equal to the lesser of (i) $38,800,000 and (ii) 40% of the aggregate Fair Market Value of any additional vessels to be financed by the Incremental Commitment; provided further that  (A) any such request for an increase shall be subject to (x) the prior written consent of all the Lenders and (y) the entry into by the Borrower and the other Security Parties of documentation amending and/or supplementing this Agreement and the other Loan Documents as the Facility Agent may reasonably require, (B) Schedule IV shall be supplemented to provide for a Maximum Vessel Borrowing Amount and the quarterly principal installment amounts for each Vessel being financed, and (C) any such request may not be made on or after the first anniversary of the Closing Date.

 

 

 

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(b)     Incremental Lenders. An Incremental Commitment may be provided by any existing Lender or other Person, in each case, that is an Eligible Assignee (each such existing Lender or other Person that agrees to provide an Incremental Commitment, an “Incremental Lender”); provided that each Incremental Lender shall be subject to the consent (in each case, not to be unreasonably withheld or delayed) of all the Lenders. Notwithstanding anything herein to the contrary, no Lender shall have any obligation to agree to increase its Commitment, or to provide a Commitment, pursuant to this Section and any election to do so shall be in the sole discretion of such Lender.

 

(c)     Terms of Incremental Commitments. The Facility Agent and the Borrower shall determine the effective date for such increase pursuant to this Section (an “Incremental Commitment Effective Date”) and, if applicable, the final allocation of such increase among the Persons providing such increase.

 

In order to effect such increase, the Borrower, the Guarantors, the applicable Incremental Lender(s) and the Facility Agent (but no other Lenders or Persons) shall enter into one or more Joinder Agreements and/or such other documents as the Facility Agent may reasonably require, each in form and substance reasonably satisfactory to the Facility Agent, pursuant to which the applicable Incremental Lender(s) will provide the Incremental Commitment(s).

 

Effective as of the applicable Incremental Commitment Effective Date, subject to the terms and conditions set forth in this Section, each Incremental Commitment shall be a Commitment (and not a separate facility hereunder), and each Incremental Lender providing such Incremental Commitment shall be, and have all the rights of, a Lender, for all purposes of this Agreement.

 

(d)     Conditions to Effectiveness. Notwithstanding the foregoing, any increase in the Commitments pursuant to this Section shall not be effective with respect to any Incremental Lender unless:

 

(i)     no Default or Event of Default shall have occurred and be continuing on the Incremental Commitment Effective Date and after giving effect to such increase;

 

(ii)     two valuations, each dated no more than 30 days prior to the Incremental Commitment Effective Date, addressed to the Facility Agent (at the expense of the Borrower) by an Approved Broker indicating the Fair Market Value of each of the Delivered Vessels, each of the Remaining Vessels delivered at the time, and each of the additional vessels to be financed by the Incremental Commitment;

 

(iii)     the Facility Agent shall have received the documents described in (c) above; and

 

(iv)     the Facility Agent shall have received such legal opinions and other documents reasonably requested by the Facility Agent in connection therewith.

 

As of such Incremental Commitment Effective Date, upon the Facility Agent’s receipt of the documents required by this paragraph (d), the Facility Agent shall record the information contained in the applicable Joinder Agreement(s) in the Register and give prompt notice of the increase in the Commitments to the Borrower and the Lenders (including each Incremental Lender).

 

 

 

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(e)     Green Increase. 

 

(i)     Amounts. Anything contained in this Section 2.21 notwithstanding, the Borrower shall have the option to request a further increase of the Commitments in the manner otherwise set forth above (the “Green Increase”) for the purposes of financing capital expenses in order to upgrade the Vessels into more sustainable vessels (the “Sustainability Option”) subject to (x) the prior written consent of all the Lenders and (y) the minimum amount of such increase being $100,000 per Vessel. Any such Green Increase shall be in the maximum amount of up to $600,000 per Vessel subject to the following limitations: (A) in the case of scrubbers, 50% of the cost of such scrubbers (with characteristics acceptable to the Lenders) shall be in an amount up to $600,000 per Vessel; and (B) in the case of other capital expenses, 50% of the costs of other expenses acceptable to the Lenders for other sustainability initiatives, including for example rotors for wind propulsion, shall be in an amount of up to $350,000 in aggregate.

 

(ii)     Terms. In order to effect a Green Increase, the Borrower, the Guarantors, the applicable Lender(s) and the Facility Agent (but no other Lenders or Persons) shall enter into one or more Joinder Agreements and/or such other documents as the Facility Agent may require, each in form and substance satisfactory to the Facility Agent, pursuant to which the applicable Lender(s) will provide such Green Increase upon the terms and conditions therein contained.

 

(iii)     Fees. Upon the exercise of the Sustainability Option, the Borrower shall pay to the Facility Agent an exercise fee of $10,000 in respect of each Vessel upgraded by Loans made pursuant to a Green Increase.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

In order to induce the Lenders to enter into this Agreement and to make the Loans, each of the Obligors, jointly and severally, represents and warrants to each Finance Party as of the Closing Date, on the date of each Borrowing Request and on the first day of each Interest Period (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date): 

 

3.01     Existence, Qualification and Power. Each Obligor (a) is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party or any of the transactions contemplated hereby and thereby, and (c) is duly qualified and in good standing as a foreign company in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed, 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.

 

3.02     Authorization; No Contravention. The execution, delivery and performance by each Obligor of each Loan Document to which it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien (except Permitted Liens) under, or require any payment to be made under (i) any material Contractual Obligation to which such Obligor is a party or affecting such Obligor or the properties of such Obligor or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Obligor or property belonging thereto is subject or (c) violate any Law.

 

 

 

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3.03     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 the execution, delivery or performance by, or enforcement against, any Obligor of this Agreement or any other Loan Document, except for (a) the filing of Uniform Commercial Code financing statements or other similar filing or instruments under the laws of any applicable jurisdiction, (b) any Vessel Mortgage recording requirements under the relevant jurisdiction of such Vessel registration, and (c) such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and are in full force and effect.

 

3.04     Execution and Delivery; Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Obligor party thereto. Except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors’ rights generally and by general principles of equity, the Loan Documents to which each Obligor is a party, constitute or, as the case may be, will constitute upon execution and delivery (and, where applicable, registration as provided for in the Loan Documents), such Obligor’s legal, valid and binding obligations enforceable against it in accordance with their respective terms.

 

3.05     Financial Statements; No Material Adverse Effect.

 

(a)     Financial Statements. The Audited Financial Statement of the Parent and its Subsidiaries was prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and fairly present in all material respects the financial condition of the Parent and its Subsidiaries, as of the date thereof and their results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein. The unaudited consolidated balance sheet of the Borrower and its Subsidiaries and the Parent and its Subsidiaries, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for the fiscal quarter ended on March 31, 2017 were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and fairly present in all material respects the financial condition of the Borrower and its Subsidiaries and the Parent and its Subsidiaries, as of the date thereof and their results of operations and cash flows for the period covered thereby, subject to the absence of footnotes and to normal year-end audit adjustments

 

(b)     No Material Adverse Change. Since December 31, 2016, there has been no event or circumstance that, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.

 

3.06     Litigation. There are no actions, suits, proceedings, claims, disputes or investigations pending or, to the knowledge of any Obligor, threatened, at Law, in equity, in arbitration or before any Governmental Authority, by or against any Obligor or any Subsidiary or against any of their properties or revenues that (a) either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect or (b) purport to affect or pertain to this Agreement or any other Loan Document or any of the transactions contemplated hereby. 

 

 

 

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3.07     No Material Adverse Effect; No Default. No Obligor nor any Subsidiary thereof is in default under or with respect to any Contractual Obligation that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. As of the Closing Date, 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.

 

3.08      Property.

 

(a)        Ownership of Properties. 

 

(i)     No Obligor has created or is contractually bound to create any security interest on or with respect to any of its assets, properties, rights or revenues, in each case, constituting Collateral, except for Permitted Liens, and except as provided in this Agreement no Obligor is restricted by contract, applicable law or regulation or otherwise from creating security interests on any of its assets, properties, rights or revenues, in each case, constituting Collateral.

 

(ii)     Each Guarantor has received all deeds, assignments, waivers, consents, non-disturbance and attornment or similar agreements, bills of sale and other documents, and has duly effected all recordings, filings and other actions, necessary to establish, protect and perfect such Guarantor’s right, title and interest in and to the Delivered Vessel owned by it and other properties and assets owned by it, in each case, constituting Collateral (or arrangements for such recordings, filings and other actions acceptable to the Facility Agent shall have been made).

 

(iii)     Without limiting the generality of Section 3.22 and paragraph (ii) of this Section, at the time of the execution and delivery of each Security Document: (a) the relevant Obligor will have the right to create all the security interests which that Security Document purports to create; and (b) no third party will have any Liens (except for Permitted Liens) or any other interest, right or claim over, in or in relation to any asset to which any such Lien, by its terms, relates.

 

(b)     Intellectual Property. Except for those with respect to which the failure to own or license could not reasonably be expected to have a Material Adverse Effect, each Obligor owns or has the right to use all patents, trademarks, permits, service marks, trade names, copyrights, franchises, formulas, licenses and other rights with respect thereto, and have obtained assignment of all licenses and other rights of whatsoever nature, that are material to its business as currently contemplated without any conflict with the rights of others.

 

3.09     Taxes. 

 

(a)     As of the Initial Borrowing Date and the date of each relevant Borrowing, all payments which any Obligor is liable to make under any Loan Documents to which it is a party can properly be made without deduction or withholding for or on account of any tax payable under any Laws of any Pertinent Jurisdiction.

 

(b)     The Obligors have each filed all Federal, state and other tax returns and reports required to be filed, and have paid all Federal, state and other taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except (a) Taxes that are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves are being maintained in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

 

 

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(c)     No material claim for any tax has been asserted against any Obligor by any taxing authority other than claims that are included in the liabilities for taxes in the most recent balance sheet of such person or disclosed in the notes thereto, if any.

 

(d)     The execution, delivery, filing and registration or recording (if applicable) of the Loan Documents and the consummation of the transactions contemplated thereby will not cause any of the Finance Parties to be required to make any registration with, give any notice to, obtain any license, permit or other authorization from, or file any declaration, return, report or other document with any governmental authority in any Pertinent Jurisdiction. 

 

(e)     No taxes are required by any governmental authority in any relevant Pertinent Jurisdiction to be paid with respect to or in connection with the execution, delivery, filing, recording, performance or enforcement of any Loan Document except any applicable mortgage recording fee in connection with the recording of the Vessel Mortgages in accordance with the relevant Pertinent Jurisdiction of such Vessel registration.

 

(f)     It is not necessary for the legality, validity, enforceability or admissibility into evidence of this Agreement or any other Loan Document that any stamp, registration or similar taxes be paid on or in relation to this Agreement or any of the other Loan Documents.

 

3.10     Disclosure. As of the Closing Date, each Obligor has disclosed to the Facility Agent all agreements, instruments and corporate or other restrictions to which such Obligor is subject, and all other matters known to it, that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. The reports, financial statements, certificates and other written information (other than projected or pro forma financial information) furnished by or on behalf of any Obligor to the Facility 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 (as modified or supplemented by other information so furnished), taken as a whole, do not contain any material misstatement of fact or omit to state any material fact necessary to make the statements therein (when taken as a whole), in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected or pro forma financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time of preparation and delivery (it being understood that such projected information may vary from actual results and that such variances may be material).

 

3.11     Compliance with Laws. Each of the Obligors is in compliance with the requirements of all Laws (including Environmental 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 so comply, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

 

 

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3.12     ERISA Compliance.

 

(a)     Except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect, (i) each Plan is in compliance with the applicable provisions of ERISA, the Code and other Federal or state Laws and (ii) each Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter or opinion letter from the IRS to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the IRS 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 IRS, and, to the knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status.

 

(b)     There are no pending or, to the knowledge of the Borrower, threatened or contemplated claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that, either individually or in the aggregate, 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, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.

 

(c)     No ERISA Event has occurred, and neither the Borrower nor any ERISA Affiliate is aware of any fact, event or circumstance that, either individually or in the aggregate, could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan.

 

(d)     The present value of all accrued benefits under each Pension Plan (based on those assumptions used to fund such Pension Plan) did not, as of the last annual valuation date prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Pension Plan allocable to such accrued benefits by a material amount. As of the most recent valuation date for each Multiemployer Plan, the potential liability of the Borrower or any ERISA Affiliate for a complete withdrawal from such Multiemployer Plan (within the meaning of Section 4203 or Section 4205 of ERISA), when aggregated with such potential liability for a complete withdrawal from all Multiemployer Plans, is zero.

 

(e)     To the extent applicable, each Foreign Plan has been maintained in compliance with its terms and with the requirements of any and all applicable requirements of Law and has been maintained, where required, in good standing with applicable regulatory authorities, except to the extent that the failure to so comply could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect. Neither the Borrower nor any Subsidiary has incurred any material obligation in connection with the termination of or withdrawal from any Foreign Plan. The present value of the accrued benefit liabilities (whether or not vested) under each Foreign Plan that is funded, determined as of the end of the most recently ended fiscal year of the Borrower or Subsidiary, as applicable, on the basis of actuarial assumptions, each of which is reasonable, did not exceed the current value of the property of such Foreign Plan by a material amount, and for each Foreign Plan that is not funded, the obligations of such Foreign Plan are properly accrued.

 

3.13     Environmental Matters. Except with respect to any matters that, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, no Obligor (a) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (b) knows of any basis for any permit, license or other approval required under any Environmental Law to be revoked, canceled, limited, terminated, modified, appealed or otherwise challenged, (c) has or could reasonably be expected to become subject to any Environmental Liability, (d) has received notice of any claim, complaint, proceeding, investigation or inquiry with respect to any Environmental Liability (and no such claim, complaint, proceeding, investigation or inquiry is pending or, to the knowledge of any Obligor, is threatened or contemplated) or (e) knows of any facts, events or circumstances that could give rise to any basis for any Environmental Liability of any Obligor.

 

 

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3.14     Margin Regulations. The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Borrowing hereunder will be used to buy or carry any Margin Stock. Following the application of the proceeds of each Borrowing, not more than 25% of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated basis) will be Margin Stock.

 

3.15     Investment Company, Public Utility. As of the Initial Borrowing Date and the date of each relevant Borrowing, none of the Obligors is (a) an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended; or (b) a “public utility” within the meaning of the United States Federal Power Act of 1920, as amended.

 

3.16     PATRIOT Act; Sanctions; Anti-Corruption.

 

(a)     PATRIOT Act. To the extent applicable, each of the Borrower and its 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 CFR, Subtitle B, Chapter V, as amended), and any other enabling legislation or executive order relating thereto, and (ii) the PATRIOT Act.

 

(b)     Sanctioned Persons. None of the Borrower or any of its Subsidiaries or any director, officer, or to the knowledge of the Borrower, any employee or Affiliate of the Borrower or any of its Subsidiaries is a Person that is, or is owned fifty percent (50%) or more, individually or in the aggregate, directly or indirectly or controlled by one or more Persons that are the subject of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the U.S. Department of State, the United Nations Security Council, the European Union or Her Majesty’s Treasury (collectively, “Sanctions”). None of the Borrower or any of its Subsidiaries is a Person that is, or is owned fifty percent (50%) or more, individually or in the aggregate, directly or indirectly or controlled by one or more Persons that are located, organized or resident in a country or territory that is, or whose government is, the subject of comprehensive Sanctions (currently, Crimea, Cuba, Iran, North Korea, Sudan and Syria).

 

(c)     Anti-Corruption Laws. The Borrower and its Subsidiaries and their respective directors, officers and, to the knowledge of the Borrower, employees and Affiliates of the Borrower and its Subsidiaries are in compliance with the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”) and any other applicable anti-corruption law in all material respects. The Borrower and its Subsidiaries have instituted and maintain policies and procedures designed to ensure continued compliance therewith.

 

3.17     ISM Code and ISPS Code Compliance. Each Guarantor has obtained or will obtain or will cause to be obtained all necessary ISM Code Documentation and ISPS Code Documentation in connection with the Vessel owned or to be owned by it and such Vessel’s operation and will be or will cause such Vessel and the Approved Manager to be in full compliance with the ISM Code and the ISPS Code.

 

 

 

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3.18     Solvency. As of the Initial Borrowing Date and the date of each relevant Borrowing, after giving effect to the funding thereof, the Obligors taken as a whole are Solvent.

 

3.19     Place of Business. 

 

(a)     For the purposes of the Uniform Commercial Code only, the Borrower has its chief executive office at 300 Stamford Place, Stamford, CT 06902. None of the Guarantors has a place of business in the United States of America, the District of Columbia, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of United States of America.

 

(b)     From the date of its incorporation or formation, as the case may be, until the date hereof, neither the Borrower nor any of the Guarantors has conducted any business other than in connection with, or related to, the acquisition and disposition, ownership, and operation of Vessels.

 

3.20     Ownership. 

 

(a)     All of the Equity Interests of the Borrower have been validly issued, are fully paid and non-assessable and free and clear of all security interests and are owned, directly or indirectly, beneficially by the Parent. All of the Equity Interests of each Guarantor have been validly issued, are fully paid, non-assessable and free and clear of all security interests (other than Permitted Liens) and are owned beneficially and of record by the Borrower.

 

(b)     None of the Equity Interests of the Obligors are subject to any existing option, warrant, call, right, commitment or other agreement of any character to which such Obligor is a party requiring, and there are no Equity Interests of any Obligor outstanding which upon conversion or exchange would require, the issuance, sale or transfer of any additional Equity Interests of the Obligor or other Equity Interests convertible into, exchangeable for or evidencing the right to subscribe for or purchase Equity Interests of the Obligor.

 

3.21     Vessels. As of the date of each relevant Borrowing, each relevant Vessel will be: (a) in the sole and absolute ownership of a Guarantor and duly registered in such Guarantor’s name under the law of the Approved Flag, unencumbered save and except for the Vessel Mortgage thereon in favor of the Security Trustee registered against it and Permitted Liens; (b) seaworthy for hull and machinery insurance warranty purposes and in every way fit for its intended service; (c) insured in accordance with the provisions of this Agreement and the requirements hereof in respect of such insurances will have been complied with; (d) in class in accordance with the provisions of this Agreement and the requirements hereof in respect of such classification will have been complied with; and (e) managed by an Approved Manager pursuant to a technical or commercial management agreement.

 

 

 

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3.22     The Security Documents. 

 

(a)     Subject to any applicable exceptions set forth herein, upon execution and delivery of each Security Document, there will be created in favor of the Facility Agent or, as the case may be, the Security Trustee, for the benefit of the Finance Parties, a legal, valid and enforceable Lien on, and security interest in, the Collateral described herein and therein and (i) when all financing statements or the other filings in appropriate form are filed and maintained in the appropriate offices as may be required under applicable Laws and (ii) upon the taking of possession or control by the Facility Agent or, as the case may be, the Security Trustee, of such Collateral with respect to which a security interest may be perfected only by possession or control (which such possession or control shall be given to the Facility Agent or, as the case may be, the Security Trustee, to the extent required by any Security Document), the Liens created under such Security Document will constitute a fully perfected Lien on all right, title and interest of the applicable Obligors as of the Closing Date or, as the case may be, the date of execution of said Security Document, in such Collateral, in each case prior and superior in right to any other Person, other than with respect to Permitted Liens. 

 

(b)     Each Vessel Mortgage, upon execution and delivery thereof, will be effective to create, in favor of the Security Trustee, for its benefit and the benefit of the Finance Parties, a legal, valid and enforceable first priority or first preferred ship mortgage Lien on the Vessel subject to such Vessel Mortgage and the proceeds thereof, subject only to Permitted Liens, and when the Vessel Mortgage is recorded or registered in accordance with the laws of the jurisdiction of the relevant Approved Flag, such Vessel Mortgage shall constitute a fully perfected first priority or first preferred ship mortgage Lien on the Vessel subject to such Vessel Mortgage, in each case, subject to no Liens other than Permitted Liens.

 

3.23     Use of Proceeds. Each Obligor will, and will cause each of its Subsidiaries to, use the proceeds of the Loans solely for purposes set forth in the Preliminary Statements hereof. No part of the proceeds of the Loans will be used, directly or, to the knowledge of the Obligors, indirectly, in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of the FCPA or any other applicable anti-corruption law.

 

ARTICLE IV

CONDITIONS OF LENDING

 

4.01     Conditions Precedent to First Borrowing. The obligation of each Lender to make any Loan is subject to the conditions precedent that, on or before the date of the first Borrowing, the Facility Agent shall have received, in form and substance satisfactory to the Facility Agent and each Lender (unless otherwise specified):

 

(a)     certified copies of the resolutions of the member of the Borrower approving (for itself and as sole member of each Guarantor) each Loan Document and each other document contemplated thereby to which any Obligor is or is to be a party, and of all documents evidencing other necessary corporate or company action and governmental approvals of each Obligor, if any, with respect to such Loan Documents and other documents to which it is or is to be a party;

 

(b)     a certificate of an officer of the Borrower (for itself and as sole member of each Guarantor, as the case may be) certifying the names and true signatures of the respective officers and attorneys-in-fact of each Obligor authorized to sign each Loan Document and each other document contemplated thereby to which it is or is to be a party;

 

 

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(c)     a copy of the Organizational Documents of each Obligor and each amendment thereto, certified (as of a date reasonably near the Initial Borrowing Date) by an officer of the Borrower (for itself or as sole member of each Guarantor, as the case may be) as being a true and correct copy thereof;

 

(d)     an original or a certified copy of any power of attorney under which any Loan Document is executed on behalf of a Obligor;

 

(e)     a copy of a certificate of goodstanding of each Obligor dated as of a date reasonably near the Initial Borrowing Date, certifying that such Obligor is duly formed and in good standing under the laws of its jurisdiction of incorporation;

 

(f)     copies of all consents which an Obligor requires to enter into, or make any payment under any Loan Document, each certified as of a date reasonably near the date of the Borrowing Request by an authorized person of such party as being a true and correct copy thereof, or certification by such authorized person that no such consents are required;

 

(g)     such documentation and other evidence as is reasonably requested by the Facility Agent or a Lender in order for each to carry out and be satisfied with the results of all necessary “know your customer” or other checks which it is required to carry out in relation to the transactions contemplated by this Agreement and the other Loan Documents, including without limitation obtaining, verifying and recording certain information and documentation that will allow the Facility Agent and each of the Lenders to identify each Security Party in accordance with the requirements of the PATRIOT Act;

 

(h)     evidence that each Obligor has duly opened an Operating Account, the Liquidity Account, the Debt Service Reserve Account, and the BWTS Fund Account, as applicable, and has delivered to the Facility Agent all resolutions, signature cards and other documents or evidence required in connection with the opening, maintenance and operation of such accounts with the Account Bank;

 

(i)     a duly executed original of each Loan Document not otherwise referred to in this Article IV in effect on the Closing Date, or any other document in effect on the Closing Date required to be delivered by any such Loan Document if not otherwise referred to in this Article IV;

 

(j)     a copy of the memorandum of agreement (together with all amendments and addenda thereto) for each Delivered and Remaining Vessel, duly executed by the relevant Guarantor and the relevant seller, together with evidence of any address or similar commission arrangements, all of which shall be on terms acceptable to the Facility Agent (certified by an officer of the Borrower to be a true, correct and complete copy thereof);

 

(k)     two valuations of the Fair Market Value of each of the Delivered Vessels, paid for by the Borrower but addressed to the Facility Agent and dated not more than 30 days before service of the first Borrowing Request;

 

(l)     a satisfactory review by the Facility Agent’s counsel of the equity structure of the Borrower and each Guarantor; and

 

(m)     such documents and evidence as any Lender shall reasonably require, based on Applicable Law and such Lender’s own internal guidelines, relating to such Lender’s knowledge of its customers.

 

 

 

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4.02     Conditions Precedent to Each Borrowing

 

(a)     . The obligation of each Lender to make each Loan, including on the Initial Borrowing Date, is subject to the following conditions precedent having been satisfied (or waived in writing by the Facility Agent with the written consent of the Required Lenders) on or prior to the date of the relevant Borrowing:

 

(a)     the Facility Agent shall have received a Borrowing Request as required by Section 2.02;

 

(b)     the Borrower shall have paid the fees due and payable pursuant to Section 2.10 and any other fees due and payable pursuant hereto;

 

(c)     the Facility Agent shall have received forecasts prepared by management of the Borrower pursuant to Section 5.01(e);

 

(d)     a favorable opinion of Watson Farley & Williams LLP, counsel for the Facility Agent, addressed to the Facility Agent and all other Finance Parties in form and substance satisfactory to the Facility Agent; 

 

(e)     a favorable opinion of Reed Smith LLP, counsel for the Obligors, in respect of the Loan Documents (including, without limitation, the Mortgages) executed in connection with the making of the relevant Borrowing and as to such other matters as the Facility Agent may reasonably request addressed to the Facility Agent and all other Finance Parties in form and substance satisfactory to the Facility Agent; 

 

(f)     evidence that, if the tests set out in Article VII or Section 5.04 were applied immediately following the making of the relevant Borrowing, the Borrower would not be obliged to provide additional security or repay part of the Borrowings as therein provided (determined on the basis of the most recent valuation for each Vessel delivered pursuant to Section 5.03);

 

(g)     immediately after the making of the relevant Borrowing, no Default shall have occurred and be continuing;

 

(h)     the representations and warranties contained in Article III shall be true and correct in all material respects on and as of the date of such Borrowing, except to the extent that such representations and warranties specifically refer to an earlier date;

 

(i)     the Facility Agent shall have received on or before such Borrowing, a certificate of an officer of the Borrower (for itself and as sole member of each Guarantor), in form and substance satisfactory to the Facility Agent, dated as of the relevant Borrowing (the statements made in such certificate shall be true on and as of the date of such Borrowing), certifying that each document it is required to provide in connection with such Borrowing is in full force and effect as at the date of such Borrowing; and

 

(j)     to the extent required by any change in applicable law and regulation or any changes in any Lender’s own internal guidelines since the date on which the applicable documents and evidence were delivered to the Facility Agent pursuant to Section 4.01(l), such further documents and evidence as the Facility Agent shall reasonably require relating to each Lender’s knowledge of its customers.

 

The making of each Borrowing hereunder shall be deemed to be a representation and warranty by the Obligors on the date of such Borrowing as to the facts specified in clauses (f) and (g) of this Section 4.02.

 

 

 

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4.03     Conditions Precedent to each Borrowing for each Vessel

 

(a)     . The obligation of each Lender to make a Loan in relation to any Vessel is subject to the following conditions precedent having been satisfied (or waived in writing by the Facility Agent with the written consent of the Required Lenders) on or prior to the relevant Borrowing: the Facility Agent shall have received on or before the date of the relevant Borrowing the following, each dated as of such Borrowing (unless otherwise specified), in form and substance reasonably satisfactory to the Lenders (unless otherwise specified): 

 

(a)     a Vessel Mortgage relating to the relevant Vessel, duly executed by the relevant Guarantor;

 

(b)     an Assignment of Earnings relating to the relevant Vessel, duly executed by the relevant Guarantor;

 

(c)     an Assignment of Insurances relating to the relevant Vessel, duly executed by the relevant Guarantor, together with a signed notice of assignment, substantially in the form attached thereto;

 

(d)     A Letter of Undertaking relating to the relevant Vessel, provided by the relevant approved broker and with such approved insurance companies and/or underwriters;

 

(e)     a Manager’s Undertaking relating to the relevant Vessel, duly executed by each Approved Manager of such Vessel;

 

(f)     evidence of insurance in respect of the relevant Vessel naming the Facility Agent as loss payee and, with respect to hull and machinery insurances, as co-assured with such responsible and reputable insurance companies or associations, and in such amounts and covering such risks, as is required pursuant to this Agreement and the relevant Vessel Mortgage;

 

(g)     a favorable opinion from an independent insurance consultant reasonably acceptable to the Facility Agent on such matters relating to the insurances for the relevant Vessel as the Facility Agent may reasonably require;

 

(h)     a Certificate of Ownership and Encumbrance (or equivalent) issued by the maritime administrator for the Marshall Islands (or other relevant authority) stating that the relevant Vessel is owned by the relevant Guarantor and that there are on record no Liens on such Vessel except the relevant Vessel Mortgage;

 

(i)     evidence of the completion of all other recordings and filings of, or with respect to, the Security Documents executed in connection with the making of the relevant Borrowing that the Facility Agent may reasonably deem necessary or desirable in order to perfect and protect the Liens created thereby, including under the Uniform Commercial Code of New York or such other jurisdiction where the relevant Guarantor and/or any Collateral may be located;

 

(j)     a copy of a certificate duly issued by the Classification Society, dated within seven (7) days of the relevant Borrowing, to the effect that the relevant Vessel has received the highest classification and rating for vessels of the same age and type, free of all overdue recommendations and overdue notations of the Classification Society affecting class;

 

(k)     evidence that the relevant Vessel will, as from the date of the relevant Borrowing, be managed by an Approved Manager on terms reasonably acceptable to the Facility Agent, together with copies of the Document of Compliance and Safety Management Certificate issued pursuant to the ISM Code in respect of such relevant Vessel;

 

 

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(l)     a copy of any charter for a term which exceeds, or by virtue of any optional extensions may exceed, twelve (12) months to which the relevant Vessel is subject as of the date of the relevant Borrowing;

 

(m)     if applicable, a Charter Assignment relating to the relevant Vessel, duly executed by the relevant Guarantor, together with a signed notice of assignment, substantially in the form attached thereto;

 

(n)     evidence that the Green Passport relating to the relevant Vessel is in place; and

 

(o)     such other certificates relating to the relevant Vessel, or the operation thereof, as may be reasonably requested by the Facility Agent.

 

4.04     Conditions Precedent to each Borrowing for a Remaining Vessel. The obligation of each Lender to make a Loan in relation to any Remaining Vessel is subject, in addition to the conditions precedent set forth in Section 4.03, to the following conditions precedent having been satisfied (or waived in writing by the Facility Agent with the written consent of the Required Lenders) on or prior to the date of the relevant Borrowing: the Facility Agent shall have received on or before the date of the relevant Borrowing the following, each dated as of the date of such Borrowing (unless otherwise specified), in form and substance satisfactory to the Facility Agent (unless otherwise specified):

 

(a)     two valuations, each dated no more than 30 days before the service of the relevant Borrowing Request, addressed to the Facility Agent (at the expense of the Borrower) by an Approved Broker indicating the Fair Market Value of the relevant Remaining Vessel;

 

(b)     such evidence as the Facility Agent and its counsel shall require in relation to the due authorization and execution by the relevant seller of the memorandum of agreement relating to the relevant Remaining Vessel and all documents to be executed by the relevant seller pursuant thereto; and

 

(c)     evidence that (A) the relevant Remaining Vessel has been unconditionally delivered by the relevant seller to the relevant Guarantor in accordance with all the terms of the relevant memorandum of agreement, warranted free and clear of all Liens, (B) the relevant seller shall have been paid in full under the terms of the relevant memorandum of agreement; and (C) the relevant Remaining Vessel has been duly registered in the ownership of the relevant Guarantor under the Laws of the Approved Flag. 

 

ARTICLE V

AFFIRMATIVE COVENANTS

 

Until the Commitments have expired or been terminated and all Obligations shall have been paid in full (other than contingent indemnification or reimbursement obligations), the Borrower and each of the Guarantors, as the case may be, covenants and agrees with each Finance Party that:

 

5.01     Financial Statements. The Borrower will furnish to the Facility Agent:

 

(a)     as soon as available, and in any event within 120 days after the end of each fiscal year) (commencing with the fiscal year ending on December 31, 2017), a consolidated balance sheet of the Parent and its Subsidiaries, and of the Borrower and its Subsidiaries, in each case 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, audited, or if audited form is not reasonably available in the case of the Borrower and its Subsidiaries, then unaudited, and accompanied by a report and opinion of independent public accountants of nationally recognized standing, 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, exception or explanatory paragraph or any qualification, exception or explanatory paragraph as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition, results of operations, shareholders’ equity and cash flows of the Parent and its Subsidiaries and of the Borrower and its Subsidiaries, on a consolidated basis in accordance with GAAP consistently applied; 

 

 

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(b)     as soon as available, but in any event within 90 days after the end of each of the first three fiscal quarters of each fiscal year (commencing with the fiscal quarter ending on June 30, 2017), a consolidated balance sheet of the Parent and its Subsidiaries as at the end of such fiscal quarter, the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal quarter and for the portion of the Parent’s fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, certified by a Financial Officer of the Parent as fairly presenting in all material respects the financial condition, results of operations, shareholders’ equity and cash flows of the Parent and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject only to normal year-end audit adjustments and the absence of notes; 

 

(c)     as soon as available, but in any event within 75 days after the end of each of the first three fiscal quarters of each fiscal year (commencing with the fiscal quarter ending on June 30, 2017), a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, certified by a Financial Officer of the Borrower as fairly presenting in all material respects the financial condition, results of operations, shareholders’ equity and cash flows of the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject only to normal year-end audit adjustments and the absence of notes; and

 

(d)     as soon as available, but in any event prior to the beginning each fiscal year, forecasts prepared by management of the Borrower and its Subsidiaries and a summary of material assumptions used to prepare such forecasts, in form satisfactory to the Facility Agent, including projected consolidated balance sheets and statements of income or operations and cash flows of the Borrower and its Subsidiaries on a quarterly basis for such fiscal year.

 

5.02     Certificates; Other Information. The Borrower will deliver to the Facility Agent:

 

(a)     [intentionally omitted];

 

 

 

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(b)     concurrently with the delivery of the financial statements referred to in Sections 5.01(a) and (b), a duly completed certificate signed by a Responsible Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto and (ii) setting forth reasonably detailed calculations demonstrating (i) at the end of each fiscal quarter, compliance with Article VII and (ii) at the end of the second and fourth fiscal quarters of each fiscal year only, compliance with Section 5.04;

 

(c)     promptly after the furnishing thereof, copies of any material request or notice received by the Borrower or any Subsidiary, or any statement or report furnished by the Borrower or any Subsidiary to any holder of debt securities of the Borrower or any Subsidiary, pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished pursuant hereto;

 

(d)     promptly after following request therefor, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or the audit committee of the board of directors) of the Borrower by independent accountants in connection with the accounts or books of the Borrower or any Subsidiary, or any audit of any of them, as the Facility Agent or any Lender (through the Facility Agent) may from time to time reasonably request;

 

(e)     promptly following any request by the Security Trustee therefor, with any information which the Security Trustee (or any such designated person) reasonably requests for the purpose of: (i) obtaining or preparing any report from an independent marine insurance broker as to the adequacy of the obligatory insurances effected or proposed to be effected; and/or (ii) effecting, maintaining or renewing any such insurances or dealing with or considering any matters relating to any such insurances;

 

(f)     promptly following any request therefor, such other information regarding: (i) the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Borrower or any Subsidiary, (ii) any Vessel, its employment, position and engagements, Earnings, payments and amounts due to any its master and crew, expenses incurred, towages and salvages, or its charter or management, or (iii) compliance with the terms of the Loan Documents, as the Facility Agent, Security Trustee, or any Lender (through the Facility Agent) may from time to time reasonably request.

 

Documents required to be delivered pursuant to Section 5.01(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 such materials are publicly available as posted on the Electronic Data Gathering, Analysis and Retrieval system (EDGAR); or (ii) 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 Facility Agent have access (whether a commercial, third-party website or whether sponsored by the Facility Agent). The Facility 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 Borrower with any such request by a Lender for delivery, and each Lender shall be solely responsible for timely accessing posted documents or requesting delivery of paper copies of such document to it and maintaining its copies of such documents.

 

5.03    Vessel Valuations. The Borrower, at its expense, shall procure at least two written appraisal reports to be made by an Approved Broker, dated no earlier than 30 days prior to its delivery to the Facility Agent, indicating the Fair Market Value of: (a) all Vessels subject to a Vessel Mortgage, for inclusion with the certificate delivered with the first and third quarterly financial statements required to be delivered under Section 5.02(b); (b) each Delivered Vessel on or before the giving of the first Borrowing Request; (c) any relevant Remaining Vessel on or before the giving of a Borrowing Request for a Borrowing to finance such Remaining Vessel; (d) all Vessels on or before the date on which the Borrower elects to increase the Commitments pursuant to Section 2.21(a).

 

 

 

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5.04     Vessel Value Maintenance. Each Obligor will ensure that the aggregate Fair Market Value of the Vessels subject to a Vessel Mortgage (plus the market value of any additional security for the time being actually provided to the Lenders pursuant to this Section 5.04) is at all times not less than one hundred fifty percent (150%) of the aggregate outstanding principal amount of the Loans. If the Obligors at any time shall not be in compliance with the preceding sentence, and in any event within thirty (30) days of being notified by the Facility Agent of such noncompliance (which notification shall be conclusive and binding on the Obligors), the Obligors shall (a) prepay (subject to, and in accordance with Section 2.07, provided, however, no prepayment fee shall apply under section 2.10) such part of the Loans as will ensure compliance with this Section 5.04; or (b) provide the Security Trustee with, or procure the provision to the Lenders of, such additional security as shall in the opinion of the Required Lenders be adequate to make up such deficiency, which additional security shall take such form, be constituted by such documentation and be entered into between such parties as the Required Lenders in their absolute discretion may approve or require, (and, if the Obligors do not make proposals satisfactory to the Required Lenders in relation to such additional security within five (5) days of the date of the Facility Agent’s notification to the Obligors aforesaid, the Obligors shall be deemed to have elected to prepay in accordance with (a) above).

 

5.05     Notices. The Borrower will promptly notify the Facility Agent of:

 

(a)     the occurrence of any Default;

 

(b)     the filing or commencement of any action, suit, investigation or proceeding by or before any arbitrator or Governmental Authority against or affecting the Parent, any Obligor, or any Affiliate thereof including pursuant to any applicable Sanctions or Environmental Laws, that could reasonably be expected to result in a Material Adverse Effect;

 

(c)     the occurrence of any ERISA Event that, either individually or together with any other ERISA Events, could reasonably be expected to result in a Material Adverse Effect;

 

(d)     notice of any action arising under any Environmental Law or of any noncompliance by any Obligor with any Environmental Law or any permit, approval, license or other authorization required thereunder that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

 

(e)     any material change in accounting or financial reporting practices by the Borrower or any Subsidiary, other than as permitted by Clause 1.03(b);

 

(f)     any occurrence as a result of which any Vessel owned has become or is, by the passing of time or otherwise, likely to become a Total Loss;

 

(g)     any requirement or condition made by any insurer or classification society or by any competent authority which is not immediately complied with;

 

 

 

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(h)     any arrest or detention of any Vessel, any exercise or purported exercise of any security interest on that Vessel or the Earnings or any requisition of that Vessel for hire;

 

(i)     any intended dry docking of any Vessel;

 

(j)     any claim for breach of the ISM Code or the ISPS Code being made against any Obligor, the Approved Manager or otherwise in connection with any Vessel;

 

(k)     any other matter, event or incident, actual or threatened, the effect of which will or could lead to the ISM Code or the ISPS Code not being complied with; and

 

(l)      [intentionally omitted];

 

(m)     any matter or development that has had or could reasonably be expected to have a Material Adverse Effect.

 

Each notice delivered under this Section shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth the details of the occurrence requiring such notice and stating what action the Borrower has taken and proposes to take with respect thereto.

 

5.06     Preservation of Existence, Etc. Each Obligor will (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; (b) take all reasonable action to maintain all rights, licenses, permits, privileges and franchises necessary or desirable for (i) such Obligor to perform its obligations under this Agreement and all other Loan Documents and (ii) the operation of the Vessels, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect.

 

5.07     Intentionally Omitted. 

 

5.08    Maintenance of Properties. Each Obligor will (a) maintain, preserve and protect all of its properties and equipment, other than Vessels, necessary in the operation of its business in good working order and condition (ordinary wear and tear excepted) and (b) make all necessary repairs thereto and renewals and replacements thereof, except to the extent, in either case, that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

5.09     Insurances. Each Obligor will:

 

(a)     maintain with financially sound and reputable insurance companies, insurance with respect to any of its properties, other than the Vessels, and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts as are customarily carried under similar circumstances by such Persons;

 

 

 

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(b)     keep the Vessel owned by it insured at its expense against: (i) fire and usual marine risks (including hull and machinery, hull interest/increased value, freight interest and excess risks); (ii) war risks (including terrorism, piracy, and confiscation); (iii) protection and indemnity risks (including maximum for pollution liabilities); and (iv) any other risks against which the Security Trustee considers, having regard to practices and other circumstances prevailing at the relevant time, it would in the opinion of the Security Trustee be reasonable for that Guarantor to insure and which are specified by the Security Trustee by notice to that Guarantor;

 

(c)     affect such insurances in respect of the Vessel owned by it: 

 

(i)     (A) in Dollars; (B) in each case, in an amount on an agreed value basis at least the great of: (1) the Fair Market Value of the Vessels and (2) 120% of the Loans; (C) in respect of any obligatory insurances for hull and machinery, in an amount on an agreed value basis at least the greater of: (1) the aggregate of the Loans and (2) 80% of the Fair Market Value of the Vessels, while the remaining cover may be taken out as hull interest and/or freight interest insurance; (D) in the case of oil pollution liability risks, for an aggregate amount equal to the highest level of cover from time to time available under basic protection and indemnity club entry and in the international marine insurance market; (E) in relation to protection and indemnity risks in respect of the full tonnage of the Vessel owned by it; (F) on approved terms; and (G) through approved brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks associations that are members of the International Group of P&I Clubs, such approval not to be unreasonably withheld or delayed;

 

(ii)     (A) subject always to paragraph (B), name that Guarantor as the sole named assured unless the interest of every other named assured is limited: (1) in respect of any obligatory insurances for hull and machinery and war risks; to any provable out-of-pocket expenses that it has incurred and which form part of any recoverable claim on underwriters; and to any third party liability claims where cover for such claims is provided by the policy (and then only in respect of discharge of any claims made against it); and (2) in respect of any obligatory insurances for protection and indemnity risks, to any recoveries it is entitled to make by way of reimbursement following discharge of any third party liability claims made specifically against it; and every other named assured has undertaken in writing to the Security Trustee (in such form as it requires) that any deductible shall be apportioned between that Guarantor and every other named assured in proportion to the aggregate claims made or paid by each of them and that it shall do all things necessary and provide all documents, evidence and information to enable the Security Trustee to collect or recover any moneys which at any time become payable in respect of the obligatory insurances; (B) whenever the Security Trustee requires, name (or be amended to name) the Security Trustee as additional named assured for its rights and interests, warranted no operational interest and with full waiver of rights of subrogation against the Security Trustee, but without the Security Trustee thereby being liable to pay (but having the right to pay) premiums, calls or other assessments in respect of such insurance; (C) name the Security Trustee as loss payee with such directions for payment as the Security Trustee may specify; (D) provide that all payments by or on behalf of the insurers under the obligatory insurances to the Security Trustee shall be made without set-off, counterclaim or deductions or condition whatsoever; (E) provide that the obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Security Trustee or any other Finance Party; and (F) provide that the Security Trustee may make proof of loss if that Guarantor fails to do so;

 

 

 

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(d)     (i) at least 21 days before the expiry of any obligatory insurance: (A) notify the Security Trustee of the brokers (or other insurers) and any protection and indemnity or war risks association through or with whom that Guarantor proposes to renew that obligatory insurance and of the proposed terms of renewal; and (B) obtain the Security Trustee’s approval to the matters referred to in paragraph (A); (ii) at least 14 days before the expiry of any obligatory insurance, renew that obligatory insurance in accordance with the Security Trustee’s approval pursuant to paragraph (i); and (iii) procure that the approved brokers and/or the war risks and protection and indemnity associations with which such a renewal is effected shall promptly after the renewal notify the Security Trustee in writing of the terms and conditions of the renewal;

 

(e)     ensure that any guarantees required by a protection and indemnity or war risks association are promptly issued and remain in full force and effect; and

 

(f)     punctually pay all premiums or other sums payable in respect of the obligatory insurances and produce all relevant receipts when so required by the Security Trustee.

 

5.10     Insurance Documentation; Letters of Undertaking; Certificates. Each Obligor will:

 

(a)     ensure that all approved brokers and with approved insurance companies and/or underwriters provide the Security Trustee with pro forma copies of all policies relating to the obligatory insurances which they are to affect or renew and of a letter or letters or undertaking in a form reasonably required by the Security Trustee and including undertakings by the approved brokers and with approved insurance companies and/or underwriters (“Letters of Undertaking”) that: (i) they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment in accordance with the requirements of the Assignment of Insurances for that Guarantor’s Vessel; (ii) they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; (iii) they will advise the Security Trustee immediately of any material change to the terms of the obligatory insurances or if they cease to act as brokers; (iv) they will notify the Security Trustee, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from that Guarantor or its agents; and (vi) they will not set off against any sum recoverable in respect of a claim relating to the Vessel owned by that Guarantor under such obligatory insurances any premiums or other amounts due to them or any other person whether in respect of that Vessel or otherwise, they waive any lien on the policies, or any sums received under them, which they might have in respect of such premiums or other amounts, and they will not cancel such obligatory insurances by reason of nonpayment of such premiums or other amounts, and will arrange for a separate policy to be issued in respect of that Vessel forthwith upon being so requested by the Security Trustee;

 

(b)     on the Initial Borrowing Date, and thereafter upon either (i) request by the Facility Agent or (ii) material change to the insurance terms, ensure that the Facility Agent is provided with a favorable opinion from an independent insurance consultant acceptable to the Facility Agent on such matters relating to the insurances for the relevant Vessel as the Lenders may require; and

 

(c)     ensure that any protection and indemnity and/or war risks associations in which the Vessel owned by it is entered provides the Security Trustee with: (i) a certified copy of the certificate of entry for that Vessel; and (ii) a letter or letters of undertaking in the form customarily provided by the International Group of P&I Clubs.

 

 

 

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5.11     Mortgagee’s Insurance. The Security Trustee shall, to the extent commercially available, effect, maintain and renew (i) mortgagee’s interest marine insurance, (ii) mortgagee’s interest additional perils insurance and/or (iii) mortgagee’s political risks/rights/war risks (including terrorism, piracy and confiscation) insurance in such amounts (not to exceed 120% of the Loans), on such terms, through such insurers and generally in such manner as the Security Trustee may from time to time consider necessary and the Obligors, jointly and severally, shall upon demand fully indemnify the Security Trustee in respect of all premiums and other reasonable expenses which are incurred in connection with or with a view to effecting, maintaining or renewing any such insurance or dealing with, or considering, any matter arising out of any such insurance.

 

5.12     Maintenance of Security Interests. Each Obligor will: (a) at its own cost, do all that it reasonably can to ensure that any Security Document validly creates the obligations and the security interests which it purports to create; and (b) without limiting the generality of paragraph (a), at its own cost, promptly register, file, record or enroll any Security Document with any court or authority in all relevant jurisdictions, pay any stamp, registration or similar tax in all relevant jurisdictions in respect of any Security Document, give any notice or take any other step which, in the reasonable opinion of the Security Trustee, acting with the instruction of the Required Lenders, is or has become necessary for any Security Document to be valid, enforceable or admissible in evidence or to ensure or protect the priority of any security interest which it creates.

 

5.13     Earnings Payments. Each Obligor shall deposit and cause to be deposited all of its Earnings into its Operating Account.

 

5.14     Payment of Obligations. Each Obligor will pay, discharge or otherwise satisfy as the same shall become due and payable, all of its material obligations and liabilities, including Tax liabilities, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by such Obligor, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

5.15     Vessel Registration. Each Guarantor shall: (a) keep the Vessel owned by it registered in its name under the law of an Approved Flag; (b) not do, omit to do or allow to be done anything as a result of which such registration might be cancelled or imperiled; and (c) not, without the prior written consent of the Facility Agent, change the name or, without the prior written consent of the Lenders, change the port of registry on which such Vessel was registered when it became subject to a Vessel Mortgage.

 

5.16     Vessel Repair. Each Guarantor shall keep the Vessel owned by it in a good and safe condition and state of repair: (a) consistent with first class ship ownership and management practice; (b) so as to maintain the highest class for that Vessel with the Classification Society, free of material overdue recommendations, adverse notations and conditions affecting that Vessel’s class; and (c) so as to comply with all laws and regulations applicable to vessels registered under the law of the Approved Flag on which that Vessel is registered or to vessels trading to any jurisdiction to which that Vessel may trade from time to time, including but not limited to the ISM Code and the ISPS Code. 

 

 

 

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5.17     Classification Society Instructions and Undertakings. Each Guarantor shall instruct the Classification Society (and procure that the Classification Society undertakes with the Security Trustee): (a) to send to the Security Trustee, following receipt of a written request from the Security Trustee, certified true copies of all original class records held by the Classification Society in relation to that Guarantor’s Vessel; (b) to allow the Security Trustee (or its agents), at any time and from time to time, to inspect the original class and related records of that Guarantor and the Vessel owned by it either (i) electronically (through the Classification Society directly or by way of indirect access via the Borrower’s account manager and designating the Security Trustee as a user or administrator of the system under its account) or (ii) in person at the offices of the Classification Society, and to take copies of them electronically or otherwise; (c) to notify the Security Trustee promptly in writing if the Classification Society: (i) receives notification from that Guarantor or any other person that that Vessel’s Classification Society is to be changed; or (ii) becomes aware of any facts or matters which may result in or have resulted in a condition of class or a recommendation, or a change, suspension, discontinuance, withdrawal or expiry of that Vessel’s class under the rules or terms and conditions of that Guarantor’s or that Vessel’s membership of the Classification Society; (d) following receipt of a written request from the Security Trustee: (i) to confirm that that Guarantor is not in default of any of its Contractual Obligations or liabilities to the Classification Society and, without limiting the foregoing, that it has paid in full all fees or other charges due and payable to the Classification Society; and (ii) if that Guarantor is in default of any of its Contractual Obligations or liabilities to the Classification Society, to specify to the Security Trustee in reasonable detail the facts and circumstances of such default, the consequences of such default, and any remedy period agreed or allowed by the Classification Society. 

 

5.18     Charters; Charter Assignments; Assignments of Earnings. Each Guarantor shall: (a) furnish promptly to the Facility Agent a true and complete copy of any demise charter and any time or consecutive voyage charter for a term which exceeds, or by virtue of any optional extensions may exceed, twelve (12) months for the Vessel owned by it (other than a charter pursuant to an Approved Pooling Arrangement), all other documents related thereto and a true and complete copy of each material amendment or other modification thereof; and (b) in respect of any such charter, execute and deliver to the Facility Agent a Charter Assignment and use reasonable commercial efforts to cause the charterer to execute and deliver to the Facility Agent a consent and acknowledgement to such Charter Assignment in the form required thereby.

 

5.19     Compliance with Laws. Each Obligor will comply with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business generally or to the ownership, employment, operation and management of any Vessel, including but not limited to the ISM Code and the ISPS Code, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

5.20     [Intentionally omitted].

 

5.21     Environmental Matters. Except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect, each Obligor will, (a) comply with all Environmental Laws, (b) obtain, maintain in full force and effect and comply with any permits, licenses or approvals required for the Vessel facilities or operations of any Obligor, and (c) conduct and complete any investigation, study, sampling or testing, and undertake any corrective, cleanup, removal, response, remedial or other action necessary to identify, report, remove and clean up all Hazardous Materials present or released at, on, in, under or from any of the Vessel facilities or real properties of any Obligor.

 

 

 

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5.22     Books and Records. Each Obligor will maintain, and cause to be maintained, proper books of record and account, in which full, true and correct entries, in conformity with GAAP as in effect from time to time, consistently applied shall be made of all financial transactions and matters involving the assets and business of such Obligor.

 

5.23     Inspection Rights. Each Obligor will: 

 

(a)     permit representatives and independent contractors of the Facility 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 independent public accountants, all at the reasonable expense of such Obligor and at such reasonable times during normal business hours and as often as may be reasonably requested following 15 Business Days’ prior notice by the Facility Agent (acting on instructions of the Required Lenders); and 

 

(b)     permit the Security Trustee (by surveyors or other persons appointed by it for that purpose at the cost of the Obligors) to board any Vessel, at all reasonable times with 15 Business Days’ prior notice to the relevant Guarantor to inspect its condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections, 1 such inspections per year to be at the reasonable expense of the Borrower, after which such additional inspections to be at the expense of the Lenders;

 

provided that, other than with respect to such visits and inspections during the occurrence and continuation of an Event of Default, the Facility Agent and the Lenders shall not exercise such rights more often than 1 time during any calendar year; provided, further, that when an Event of Default has occurred and is continuing the Facility Agent, the Security Trustee or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing under this Section at the expense of such Obligor and at any time during normal business hours with advance notice. 

 

5.24     Surveys. Each Guarantor, at its sole expense, shall submit the Vessel owned by it regularly to all periodical or other surveys which may be required for classification purposes and, if so required by the Security Trustee, provide the Security Trustee, at that Guarantor’s sole expense, with copies of all survey reports. 

 

5.25     Notice of Mortgage. Each Guarantor shall keep the Vessel Mortgage recorded against the Vessel owned by it as a valid first priority or preferred mortgage, carry on board that Vessel a certified copy of the Vessel Mortgage and place and maintain in a conspicuous place in the navigation room and the master’s cabin of that Vessel a framed printed notice stating that such Vessel is mortgaged by that Guarantor to the Security Trustee. 

 

5.26     Green Passport. Each Guarantor will, at all times after the Closing Date (inclusive), procure that the Vessel owned by it maintains and carries on board a Green Passport, or equivalent document acceptable to the Facility Agent.

 

 

 

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5.27     Intentionally Omitted. 

 

5.28     Prevention of and Release from Arrest. Each Guarantor shall promptly discharge: (a) all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against the Vessel owned by it, the Earnings or the Insurances; (b) all taxes, dues and other amounts charged in respect of the Vessel owned by it, the Earnings or the Insurances; and (c) all other accounts payable whatsoever in respect of the Vessel owned by it, the Earnings or the Insurances, and, forthwith upon receiving notice of the arrest of the Vessel owned by it, or of its detention in exercise or purported exercise of any lien or claim, that Guarantor shall procure its release by providing bail or otherwise as the circumstances may require within 45 days of such arrest or detention. 

 

5.29      Use of Proceeds. Each Obligor will use the proceeds of the Loans only for the purposes set forth in Section 3.23.

 

5.30     Subordination of Loans. Each Obligor will cause all loans made to it by any Affiliate, and all sums and other obligations (financial or otherwise) owed by it to any Affiliate, to be fully subordinated to all Obligations pursuant to a subordination agreement in a form approved by the Facility Agent providing that such loans and other obligations shall be subject and subordinate to the prior payment in full of the Obligations.

 

5.31     Anti-Corruption Laws. Each Obligor will maintain in effect policies and procedures designed to promote compliance by such Obligor, its Subsidiaries, and their respective directors, officers, employees, and agents with the FCPA and any other applicable anti-corruption laws.

 

5.32     “Know Your Customer” Documentation. Each Obligor will produce such documents and evidence as the Facility Agent and each Lender shall from time to time require, based on applicable law and regulations from time to time and the Lender’s own internal guidelines from time to time relating to each Lender’s knowledge of its customers.

 

5.33     Asset Control. Each Obligor shall ensure that: (a) it is not (i) 50% or more owned, directly or indirectly, by one or more Prohibited Persons in the aggregate, or (ii) controlled by a Prohibited Person, or (iii) acting directly on behalf of a Prohibited Person provided that, solely in the case of sectoral sanctions relating to Russia, only to the extent such action would be prohibited if the Obligor were resident or organized in the United States, the European Union or the United Kingdom; (b) it does not own or control a Prohibited Person; (c) to its knowledge, it is not acting indirectly for the benefit of a Prohibited Person provided that, solely in the case of sectoral sanctions relating to Russia, only to the extent that such action would be prohibited if the Obligor were resident or organized in the United States, the European Union or the United Kingdom; (d) no proceeds of any Borrowing (i) shall be made available directly to a Prohibited Person provided that, solely in the case of sectoral sanctions relating to Russia, only to the extent that such action would be prohibited if the Obligor were resident or organized in the United States, the European Union or the United Kingdom, or (ii) otherwise shall be directly applied in a manner or for a purpose prohibited by Sanctions; and (e) to its knowledge, no proceeds of any Borrowing (i) shall be made available indirectly to or for the benefit of a Prohibited Person provided that, solely in the case of sectoral sanctions relating to Russia, only to the extent that such action would be prohibited if the Obligor were resident or organized in the United States, the European Union or the United Kingdom, or (ii) otherwise shall be indirectly applied in a manner or for the purpose prohibited by Sanctions.

 

 

 

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5.34     Scrapping. The Obligors shall develop and implement a policy that any scrapping of a Vessel is conducted in compliance with the IMO Convention for the Safe and Environmentally Sound Recycling of Ship and with the guidelines issued by the IMO in connection with such Convention.

 

ARTICLE VI

NEGATIVE COVENANTS

 

Until the Commitments have expired or been terminated and all Obligations have been paid in full (other than contingent indemnification or reimbursement obligations), the Obligors covenant and agree with the Finance Parties that:

 

6.01     Indebtedness. No Guarantor will create, incur, assume or suffer to exist any Indebtedness, except: 

 

(a)     Indebtedness under the Loan Documents;

 

(b)     Indebtedness to any Obligor, subject to the provisions of Section 5.30;

 

(c)     Guarantees of any Obligor in respect of Indebtedness otherwise permitted hereunder of any Guarantor;

 

(d)     Indebtedness (i) resulting from a bank or other financial institution honoring a check, draft or similar instrument in the ordinary course of business or (ii) arising under or in connection with cash management services in the ordinary course of business; and

 

(e)     Indebtedness owing to Affiliates provided that such Indebtedness is subordinated on terms and conditions acceptable to the Facility Agent and subject in right of payment to the prior payment in full of all amounts outstanding under this Agreement and the Notes. 

 

6.02     Liens. No Guarantor will create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, including any Vessel, whether now owned or hereafter acquired, other than the following (each a “Permitted Lien”): 

 

(a)     Liens securing Indebtedness permitted under Section 6.01(a);

 

(b)     Liens existing on the date hereof reasonably acceptable to the Facility Agent (acting on the instructions of the Lenders) and listed on Schedule V; and

 

 

 

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(c)     Liens arising in the ordinary course of business securing Indebtedness and other obligations (i) not exceeding 30 days overdue, and (ii) in an aggregate amount not exceeding $1,250,000 per Vessel at any time outstanding;

 

(d)     Liens in favor of the Account Bank in respect of its customary charges in maintaining the Operating Accounts or any of them or for reimbursement for reversal of any provisional credits granted by the Account Bank to any Operating Account, to the extent, in each case, that any of the Obligors have not separately paid or reimbursed the Account Bank therefor; and

 

(e)     Liens imposed by law for Taxes that are not required to be paid pursuant to Section 5.14. 

 

6.03     Fundamental Changes. None of the Obligors will, without the prior written approval of all Lenders, merge, dissolve, liquidate, consolidate with or into another Person (including in relation to the Acquisition of the Legacy Fleet or any part thereof), or Dispose of (whether in one transaction or in a series of transactions) any of its assets (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)     the Borrower may merge with any Person other than a Guarantor so long as the Borrower shall be the continuing or surviving Person provided that in respect of an Acquisition relating to the Legacy Fleet or any part thereof, the prior written consent of the Lenders shall be obtained at all times; and

 

(b)     any Guarantor may sell the Vessel owned by it, and the Borrower may sell any Guarantor, pursuant to the terms of this Agreement and so long as the Obligors comply with the mandatory prepayment provisions of Section 2.07, upon which such Guarantor shall be released as a Guarantor hereunder.

 

6.04     Restricted Payments. The Borrower will not, and will not permit any Obligor to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that, so long as no Default shall have occurred and be continuing at the time of any action described below or would result therefrom:

 

(a)     each Obligor may make Restricted Payments to any Obligor including in accordance with Section 7.03;

 

(b)     the Borrower may distribute the proceeds of any Borrowing in connection with the refinancing or reimbursing the acquisition of any Vessel to the Parent; 

 

(c)     on or prior to the First Repayment Date, the Borrower may (i) declare or pay cash dividends to its shareholders and (ii) purchase, redeem or otherwise acquire for cash its Equity Interests only if, after giving effect thereto, (A) the aggregate amount of such dividends, purchases, redemptions, retirements and acquisitions paid or made on or prior to the First Repayment Date does not exceed 50% of Consolidated Net Income of the Borrower and its Subsidiaries as at the date of declaration of such dividend or the completion of such purchase, redemption, retirement or acquisition; (B) the Borrower shall have cash or Cash Equivalents in an amount not less than $1,500,000 per vessel owned by the Borrower or any of its Subsidiaries; (C) the Borrower shall be in compliance with Sections 7.01 and 7.03 and ; and (D) the Debt Service Reserve Account contains a balance of not less than $600,000 per Vessel subject to a Vessel Mortgage; and

 

 

 

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(d)     after the First Repayment Date, the Borrower may (i) declare or pay cash dividends to its shareholders and (ii) purchase, redeem or otherwise acquire for cash its Equity Interests only if, after giving effect thereto, (A) the aggregate amount of such dividends, purchases, redemptions, retirements and acquisitions does not exceed 50% of Consolidated Net Income of the Borrower and its Subsidiaries as at the date of declaration of such dividend or the completion of such purchase, redemption, retirement or acquisition; (B) the Borrower shall be in compliance with Sections 7.01 and 7.03; and (C) if and only if prior to the Debt Service Reserve Release Date, the Debt Service Reserve Account contains a balance of not less than $600,000 per Vessel subject to a Vessel Mortgage.

 

6.05     Investments. No Guarantor will make any Investment, except:

 

(a)     Investments held by such Obligor in the form of Cash Equivalents; and

 

(b)     to the extent constituting an Investment, transactions otherwise permitted by Sections 6.01or 6.06.

 

6.06     Transactions with Affiliates. The Borrower will not, and will not permit any Subsidiary to, enter into any transaction of any kind with any Affiliate of the Borrower, whether or not in the ordinary course of business, other than: (a) in the ordinary course of business, on fair and reasonable terms substantially as favorable, taken as a whole, to the Borrower or such Subsidiary as would be obtainable by the Borrower or such Subsidiary at the time in a comparable arm’s-length transaction with a Person other than an Affiliate, provided that any Indebtedness owing by the Borrower to any Guarantor shall be subordinated on terms and conditions acceptable to the Facility Agent and subject in right of payment to the prior payment in full of all amounts outstanding under this Agreement and the Notes; (b) transactions permitted pursuant to Section 6.01 through Section 6.05 above; (c) the transactions contemplated by the Loan Documents, (d) the payment or reimbursement of the Borrower's and its Subsidiaries’ pro rata share of expenses for shared personnel, office facilities, and administrative overhead of the Parent and its subsidiaries, as fairly and reasonably allocated by the Parent; and (e) management services on economic terms at least as favorable to the Guarantors as those set forth on Schedule VI.

 

6.07     Changes in Fiscal Periods. The Borrower will not permit the last day of its fiscal year to end on a day other than December 31 or change the Borrower’s method of determining its fiscal quarters.

 

6.08     Changes in Nature of Business. No Obligor will, without the prior written consent of the Lenders, engage to any material extent in any business other than those businesses conducted by each Obligor on the date hereof or any business reasonably related or incidental thereto or representing a reasonable expansion thereof.

 

6.09     Changes in Name; Organizational Documents Amendments. No Obligor will permit any change to its entity name or any amendment of its Organizational Documents.

 

 

 

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6.10     Place of Business. Except for as specified in Section 3.19, no Obligor will establish or change any place of business in the United States of America, the District of Columbia, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States of America unless thirty (30) days’ prior written notice of such establishment is given to the Facility Agent.

 

6.11     Change of Control; Negative Pledge. No Obligor will permit any act, event or circumstance that would result in a Change of Control. The Borrower shall not permit any pledge or assignment of a Guarantor’s Equity Interests except in favor of the Security Trustee to secure the Obligations.

 

6.12     Restriction on Chartering. No Guarantor will, without the consent of the Required Lenders, which consent shall not unreasonably be withheld (i) let any Vessel on demise charter for any period; (ii) enter into any time or consecutive voyage charter in respect of any Vessel for (A) a term which exceeds, or which by virtue of any optional extensions may exceed, 12 months, and (B) which would result in the chartering of a greater number of vessels than Vessels owned by the Guarantors at the time; (iii) de-activate or lay up any Vessel; or (iv) put any Vessel into the possession of any Person for the purpose of work being done upon her in an amount exceeding or likely to exceed $2,000,000 (or the equivalent in any other currency).

 

6.13     Lawful Use. No Guarantor will permit any Vessel to be employed: (a) in any way or in any activity which is unlawful under international law or the domestic laws of any relevant country; (b) in carrying illicit or prohibited goods; (c) in a way which may make it liable to be condemned by a prize court or destroyed, seized or confiscated; or (d) in carrying contraband goods; and the persons responsible for the operation of the Vessel shall take all necessary and proper precautions to ensure that this does not happen including participation in industry or other voluntary schemes available to the Vessel and in which leading operators of vessels operating under the same flag or engaged in similar trades generally participate at the relevant time

 

6.14     Approved Manager. No Guarantor will employ a manager of a Vessel other than an Approved Manager, or change the terms and conditions of the management of such Vessel in any material respect other than upon such terms and conditions as the Required Lenders shall approve.

 

6.15     Insurances. No Guarantor will:

 

(a)     agree to any amendment or supplement (other than related confirmations) to, or waive or fail to enforce, any obligatory insurance or material provisions thereof;

 

 

 

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(b)     do nor omit to do (nor permit to be done or not to be done) any act or thing which would or might render any obligatory insurance invalid, void, voidable or unenforceable or render any sum payable under an obligatory insurance repayable in whole or in part; and, in particular: (i) each Guarantor shall take all necessary action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Security Trustee has not given its prior approval; (ii) no Guarantor shall make any changes relating to the classification or classification society or manager or operator of the Vessel owned by it unless approved by the underwriters of the obligatory insurances; (iii) each Guarantor shall make (and promptly supply copies to the Facility Agent and/or Security Trustee of) all quarterly or other voyage declarations which may be required by the protection and indemnity risks association in which the Vessel owned by it is entered to maintain cover for trading to the United States of America and Exclusive Economic Zone (as defined in the United States Oil Pollution Act 1990 or any other applicable legislation); and (iv) no Guarantor shall employ the Vessel owned by it, nor allow it to be employed, otherwise than in conformity with the terms and conditions of the obligatory insurances, without first obtaining the consent of the insurers and complying with any requirements (as to extra premium or otherwise) which the insurers specify; or 

 

(c)     settle, compromise or abandon any claim under any obligatory insurance for Total Loss without the consent of the Security Trustee (not to be unreasonably withheld or delayed), and if so requested by the Security Trustee shall do all things necessary and provide all documents, evidence and information to enable the Security Trustee to collect or recover any moneys which at any time become payable in respect of the obligatory insurances.

 

6.16     Modification; Removal of Parts. No Guarantor will (a) make any modification or repairs to, or replacement of, the Vessel owned by it or equipment installed on that Vessel which would or is reasonably likely to materially alter the structure, type or performance characteristics of that Vessel or materially reduce its value; or (b) remove any material part of the Vessel owned by it, or any item of equipment installed on, that Vessel unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any security interest or any right in favor of any person other than the Security Trustee and becomes on installation on that Vessel, the property of that Guarantor and subject to the security constituted by the Vessel Mortgage, provided that a Guarantor may install and remove equipment owned by a third party if the equipment can be removed without any risk of damage to the Vessel owned by it.

 

6.17     Sanctions. 

 

(a)     No Obligor will, directly or, to its knowledge, indirectly, use the proceeds of the Loans, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the Loans, whether as underwriter, advisor, investor, or otherwise).

 

(b)     Without limiting paragraph (a) above, no Obligor shall charter or, to its knowledge, permit the charter of a Vessel to a Prohibited Person provided that, solely in the case of sectoral sanctions relating to Russia, only to the extent that such charter would be prohibited if the Obligor were resident or organized in the United States, the European Union or the United Kingdom.

 

(c)     None of the Obligor’s funds that are used to repay any obligation under the Credit Agreement shall constitute property of, or shall be beneficially owned directly or indirectly by, any Prohibited Person provided that, solely in the case of sectoral sanctions relating to Russia, only to the extent that such would be prohibited if the Obligor were resident or organized in the United States, the European Union or the United Kingdom. 

 

 

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ARTICLE VII

FINANCIAL COVENANTS

 

7.01     Financial Covenants. 

 

(a)     Minimum Liquidity. The Borrower shall maintain, at all times after the Initial Borrowing Date, free cash or Cash Equivalents (exclusive of any balance held in the Debt Service Reserve Account) in an amount of $600,000 in respect of each Vessel subject to a Vessel Mortgage, to be held in the Liquidity Account. 

 

(b)     Minimum Consolidated Liquidity. The Borrower shall maintain, at all times after the Initial Borrowing Date, free cash or Cash Equivalents held by the Borrower and its Subsidiaries in an amount not less than the greater of (i) $7,500,000 or (ii) 12% of Consolidated Total Debt.

 

(c)     Consolidated Tangible Net Worth. The Borrower shall maintain, at all times after the Initial Borrowing Date, a ratio of Consolidated Tangible Net Worth to Consolidated Total Assets of not less than 0.35 to 1.00.

 

(d)     Consolidated Interest Coverage Ratio. The Borrower shall maintain a Consolidated Interest Coverage Ratio:

 

(i)      not less than 2.00 to 1.00 calculated on a trailing two fiscal quarter basis for the fiscal quarter ending on the second anniversary of the Closing Date;

 

(ii)     not less than 2.25 to 1.00 calculated on a trailing three fiscal quarter basis for the first fiscal quarter ending after the second anniversary of the Closing Date; and

 

(iii)     not less than 2.50 to 1.00 calculated on a trailing four fiscal quarter basis for the second fiscal quarter ending after the second anniversary of the Closing Date and each fiscal quarter ending thereafter; 

 

(iv)     provided, however, the ratio specified in Section 7.01(d)(iii) shall apply to each fiscal quarter ending after the Debt Service Reserve Release Date.

 

7.02     Debt Service Reserve. At the time a Borrowing is made for a Vessel, the Borrower shall deposit into the Debt Service Reserve Account an amount of $600,000 in respect of such Vessel. In the event that there is insufficient liquidity (in excess of the level required to be maintained under Section 7.01(b)), the Borrower may withdraw from the Debt Service Reserve Account any amounts necessary in order to repay the Loans and to pay any interest in accordance with the provisions of Section 2.06 and 2.09. Any amounts held in the Debt Service Reserve Account shall be released on the later of (a) the First Repayment Date or (b) the date on which the Borrower shall have maintained a Consolidated Interest Coverage Ratio of 3.00 to 1.00 calculated on a trailing four fiscal quarter basis (the “Debt Service Reserve Release Date”). 

 

 

 

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7.03     Ballast Water Treatment System Fund. 

 

(a)     Prior to the Initial Borrowing Date, the Borrower shall deposit into the BWTS Fund Account an amount of $4,550,000 (the “BWTS Fund”) in order to fund the anticipated cost of installing any required ballast water treatment systems in seven (7) Vessels. 

 

(b)     The BWTS Fund shall be released to the Borrower upon receipt by the Facility Agent of reasonably acceptable documentation of the cost to complete, evidence of the completion of the installation of the ballast water treatment system, or granting of an extension in respect of any relevant Vessel as follows: (i) an amount up to $650,000 to pay or to reimburse an Obligor the actual documented costs incurred or to be incurred for such installation in such Vessel, (ii) if the costs incurred or to be incurred for such installation are lower than $650,000 for such Vessel, the difference shall be released to the Borrower and (iii) if the relevant regulatory authorities grant an extension on the requirement for the installation of the ballast water treatment system, which extension shall run for a period eighteen (18) months after completion of the first special survey of such Vessel, an amount equal to $650,000 shall be released to the Borrower at the time such extension is granted.  Anything contained in this Agreement to the contrary notwithstanding, (i) any amounts released to the Borrower from the BWTS Fund Account may be distributed to the Parent and (ii) any balance remaining in the BWTS Fund Account on or after the First Repayment Date, shall be released to the Borrower, and, so long as no Event of Default has occurred and is continuing, the Borrower may distribute the amount of such balance to the Parent, so long as, after such release, the Borrower and its Subsidiaries maintain cash or Cash Equivalents, in an aggregate amount at least equal to $1,500,000 per Vessel subject to a Vessel Mortgage.

 

7.04     Financial Covenant Cures. 

 

In addition to any other cure rights provided in this Agreement, in the event the Borrower fails to comply with any of the covenants set forth in Section 5.04 or Section 7.01, 7.02 or 7.03 above (collectively, the “Financial Covenants”), as of the end of any fiscal quarter (a “Shortfall Fiscal Quarter”), the Borrower shall have the right to cure the Event of Default (an “Equity Cure”) resulting from such failure by causing the Parent to contribute cash equity (a “Specified Contribution”) to the Borrower within ten (10) Business Days after the date for required delivery of the financial statements set forth in Section 5.01(a) or 5.01(b), as applicable, subject to the following conditions:

 

(a)     the Borrower shall provide the Facility Agent with written notice of their intention to make an Equity Cure on the date for required delivery of the financial statements set forth in Section 5.01(a) or 5.01(b), as applicable, and, upon receipt of such notice by the Facility Agent, no Event of Default shall be deemed to have occurred prior to the time provided for the Borrower to complete an Equity Cure prior to the deadline set forth hereunder;

 

(b)     the amount of any Specified Contribution shall be not less than the amount necessary for the Borrower to have been in compliance with the Financial Covenants as of the end of the Shortfall Fiscal Quarter;

 

(c)     the Borrower shall use the proceeds of the Specified Contribution first to cure any breach under Sections 7.01(a) and 7.01(b) and the balance, if any, to prepay the Loans; 

 

(d)     Equity Cures shall not occur (i) in consecutive fiscal quarters, (ii) more than two times in any four consecutive fiscal quarter period or (iii) more than five times in the aggregate;

 

 

 

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(e)     the certificate delivered in accordance with Section 5.02(a) for the Shortfall Fiscal Quarter, in addition to all other requirements thereof, or a separate certificate of an authorized officer delivered with notice of the Borrower’s intent to make an equity cure, as applicable, shall (i) specify that an Equity Cure is occurring and the amount of the Specified Contribution with respect thereto, and (ii) show a recalculation of the applicable Financial Covenants after giving effect to the Specified Contribution; and

 

(f)     any Financial Covenant non-compliance that is cured in accordance with the foregoing shall be considered cured for all purposes hereunder and under the other Loan Documents, and no Default or Event of Default resulting solely from such financial covenant non-compliance shall be deemed to have occurred.

 

ARTICLE VIII

GUARANTY

 

8.01     Guaranty. The Guarantors hereby, jointly and severally, guarantee, as primary obligors and not as sureties, to each Finance Party and their respective successors and assigns, the prompt payment and performance in full when due (whether at stated maturity, by required prepayment, declaration, demand, by acceleration or otherwise) of the principal of, premium (if any) and interest (including any interest, fees, costs or charges that would accrue but for the provisions of the Bankruptcy Code after any bankruptcy or insolvency petition under Title 11 of the Bankruptcy Code) on the Loans made by the Lenders to, and the Notes, if any, held by each Lender of, the Borrower, and all other Obligations from time to time owing to the Finance Parties in each case strictly in accordance with the terms thereof (such obligations being herein collectively called the “Guaranteed Obligations”). Notwithstanding the foregoing, “Guaranteed Obligations”, with respect to any Guarantor, shall not include any Excluded Swap Obligations of such Guarantor. Each Guarantor hereby agrees that if the Borrower or other Guarantors shall fail to pay in full when due (whether at stated maturity, by acceleration or otherwise) any of the Guaranteed Obligations, such Guarantor will promptly pay the same in cash, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal.

 

8.02     Obligations Unconditional. The obligations of the Guarantors under Section 8.01 shall constitute a guaranty of payment and performance and not of collection and, to the fullest extent permitted by applicable Laws, are absolute, irrevocable and unconditional, joint and several, irrespective of the value, genuineness, validity, regularity or enforceability of the Guaranteed Obligations under this Agreement, the Notes, if any, or any other agreement or instrument referred to herein or therein, or any substitution, release or exchange of any other guarantee of or security for any of the Guaranteed Obligations, and irrespective of any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety or Guarantor (except for payment in full in cash of the Guaranteed Obligations). Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not alter or impair the liability of the Guarantors hereunder which shall remain absolute, irrevocable and unconditional under any and all circumstances as described above: (a) at any time or from time to time, without notice to the Guarantors, the time for any performance of or compliance with any of the Guaranteed Obligations shall be extended, or such performance or compliance shall be waived; (b) any of the acts mentioned in any of the provisions of this Agreement, the other Loan Documents or the Notes, if any, or any other agreement or instrument referred to herein or therein shall be done or omitted; (c) the maturity of any of the Guaranteed Obligations shall be accelerated, or any of the Guaranteed Obligations shall be amended in any respect, or any right under the Loan Documents or any other agreement or instrument referred to herein or therein shall be amended or waived in any respect or any other guarantee of any of the Guaranteed Obligations or any security therefor shall be released or exchanged in whole or in part or otherwise dealt with; or (d) any Lien or security interest granted to, or in favor of, any Finance Party as security for any of the Guaranteed Obligations shall fail to be valid, perfected or to have the priority required under the Loan Documents.

 

 

 

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The Guarantors hereby expressly waive diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that any Finance Party exhaust any right, power or remedy or proceed against any Obligor under this Agreement or the Notes, if any, or any other agreement or instrument referred to herein or therein, or against any other person under any other guarantee of, or security for, any of the Guaranteed Obligations. The Guarantors waive any and all notice of the creation, renewal, extension, waiver, termination or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by any Finance Party upon this Guarantee or acceptance of this Guarantee, and the Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred in reliance upon this Guarantee, and all dealings between the Borrower and the Finance Parties shall likewise be conclusively presumed to have been had or consummated in reliance upon this Guarantee. This Guarantee shall be construed as a continuing, absolute, irrevocable and unconditional guarantee of payment and performance without regard to any right of offset with respect to the Guaranteed Obligations at any time or from time to time held by the Finance Parties, and the obligations and liabilities of the Guarantors hereunder shall not be conditioned or contingent upon the pursuit by the Finance Parties or any other person at any time of any right or remedy against the Borrower or against any other person which may be or become liable in respect of all or any part of the Guaranteed Obligations or against any collateral security or guarantee therefor or right of offset with respect thereto. This Guarantee shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Guarantors and their respective successors and assigns, and shall inure to the benefit of the Finance Parties, and their respective successors and assigns, notwithstanding that from time to time during the term of this Agreement there may be no Guaranteed Obligations outstanding.

 

8.03     Reinstatement. The obligations of the Guarantors under this Article VIII shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of the Borrower or other Security Party in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise.

 

8.04     Subrogation; Subordination. Each Guarantor hereby agrees that until the indefeasible payment and satisfaction in full in cash of all Guaranteed Obligations (other than contingent indemnification or reimbursement obligations) and the expiration and termination of the Commitments of the Lenders under this Agreement it shall waive any claim and shall not exercise any right or remedy, direct or indirect, arising by reason of any performance by it of its guarantee in Section 8.01, whether by subrogation or otherwise, against the Borrower or any other Guarantor of any of the Guaranteed Obligations or any security for any of the Guaranteed Obligations.

 

 

 

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8.05     Remedies. The Guarantors jointly and severally agree that, as between the Guarantors and the Lenders, the obligations of the Borrower under this Agreement and other Loan Documents may be declared to be forthwith due and payable as provided in Article IX (and shall be deemed to have become automatically due and payable in the circumstances provided in Article IX) for purposes of Section 8.01, notwithstanding any stay, injunction or other prohibition preventing such declaration (or such obligations from becoming automatically due and payable) as against the Borrower and that, in the event of such declaration (or such obligations being deemed to have become automatically due and payable), such obligations (whether or not due and payable by the Borrower) shall forthwith become due and payable by the Guarantors for purposes of Section 8.01.

 

8.06     Instrument for the Payment of Money. Each Guarantor hereby acknowledges that the guarantee in this Article VIII constitutes an instrument for the payment of money, and consents and agrees that any Lender or Facility Agent, at its sole option, in the event of a dispute by such Guarantor in the payment of any moneys due hereunder, shall have the right to bring a motion-action under New York CPLR Section 3213.

 

8.07     Continuing Guarantee. The guarantee in this Article VIII is a continuing guarantee of payment and performance, and shall apply to all Guaranteed Obligations whenever arising.

 

8.08     General Limitation on Guarantee Obligations. In any action or proceeding involving any state corporate, limited partnership or limited liability company law, or any applicable state, federal or foreign bankruptcy, insolvency, reorganization or other Laws affecting the rights of creditors generally, if the obligations of any Guarantor under Section 8.01 would otherwise be held or determined to be void, voidable, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of the amount of its liability under Section 8.01, then, notwithstanding any other provision to the contrary, the amount of such liability shall, without any further action by such Guarantor, any Security Party or any other person, be automatically limited and reduced to the highest amount (after giving effect to the rights of subrogation and contribution established in Sections 8.04 and 8.09, respectively) that is valid and enforceable, not void or voidable and not subordinated to the claims of other creditors as determined in such action or proceeding.

 

8.09     Right of Contribution. Each Guarantor hereby agrees that to the extent that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder which has not paid its proportionate share of such payment. Each Guarantor’s right of contribution shall be subject to the terms and conditions of Section 8.04. The provisions of this Section 8.09 shall in no respect limit the obligations and liabilities of any Guarantor to any Finance Party, and each Guarantor shall remain liable to the Finance Parties for the full amount guaranteed by such Guarantor hereunder.

 

8.10     Set-off. If any of the Guarantors shall fail to pay any of its obligations hereunder when the same shall become due and payable, each Finance Party is hereby authorized at any time and from time to time, to the fullest extent permitted 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 each Finance Party to or for the Guarantor’s credit or account against any and all of the Guaranteed Obligations, whether or not any Lender shall have made any demand under this Guaranty. Each Finance Party agrees promptly to notify the relevant Guarantor after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Finance Parties under this paragraph are in addition to any other rights and remedies (including, without limitation, other rights of set-off) which any Finance Party may have.

 

 

 

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8.11     Keepwell. Each Obligor that is a Qualified ECP Guarantor at the time this Agreement or the grant of a Lien under the Loan Documents, in each case, by any Specified Loan Party becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Loan Party with respect to such Swap Obligation as may be needed by such Specified Loan Party from time to time to honor all of its obligations under the Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under this Article VIII voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this Section shall remain in full force and effect until the Secured Obligations have been paid and performed in full. Each Loan Party intends this Section to constitute, and this Section shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Loan Party for all purposes of the Commodity Exchange Act.

 

8.12     Parallel Liability. 

 

(a)     Each Obligor irrevocably and unconditionally undertakes to pay to the Security Trustee an amount equal to the aggregate amount of its Corresponding Liabilities (as these may exist from time to time).

 

(b)     The parties hereto agree that:

 

(i)     an Obligor's Parallel Liability is due and payable at the same time as, for the same amount of and in the same currency as its Corresponding Liabilities;

 

(ii)     an Obligor's Parallel Liability is decreased to the extent that its Corresponding Liabilities have been irrevocably paid or discharged and its Corresponding Liabilities are decreased to the extent that its Parallel Liability has been irrevocably paid or discharged;

 

(iii)     an Obligor's Parallel Liability is independent and separate from, and without prejudice to, its Corresponding Liabilities, and constitutes a single obligation of that Obligor to the Security Trustee (even though that Obligor may owe more than one Corresponding Liability to the Finance Parties under the Loan Documents) and an independent and separate claim of the Security Trustee to receive payment of that Parallel Liability (in its capacity as the independent and separate creditor of that Parallel Liability and not as a co-creditor in respect of the Corresponding Liabilities); and

 

(iv)     for purposes of this Clause 8.12, the Security Trustee acts in its own name and not as agent, representative or trustee of the Finance Parties and accordingly holds neither its claim resulting from a Parallel Liability nor any security interest securing a Parallel Liability on trust.

 

 

 

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ARTICLE IX

EVENTS OF DEFAULT

 

9.01     Events of Default. If any of the following events (each, an “Event of Default”) shall occur and be continuing:

 

(a)     the Borrower or any other Security Party fails to pay when due any sum payable under a Loan Document or under any document relating to a Loan Document or, only in the case of sums payable on demand, within five (5) Business Days after the date when first demanded, provided that if such failure to pay a sum when due is solely the result of an administrative or technical error, it shall not constitute an Event of Default unless such failure continues unremedied for more than three (3) Business Days from the occurrence thereof;

 

(b)     Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or any other Security Party in or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect or misleading in any material respect (or, in the case of any such representation or warranty under this Agreement or any other Loan Document already qualified by materiality, such representation or warranty shall prove to have been incorrect or misleading) when made or deemed made;

 

(c)      any Obligor shall fail to perform or observe any term, covenant or agreement contained in Articles VI and VII or in Sections 5.01, 5.04, 5.09, 5.10, 5.31, or 5.33 to be observed by it;

 

(d)     any Obligor shall fail to perform or observe any term, covenant or agreement contained in this Agreement or any other Loan Document on its part to be performed or observed (other than those specified in paragraphs (a) through (c) above) if such failure shall remain unremedied (A) beyond the expiration of any applicable notice and/or grace period or (B) if there is no applicable notice and/or grace period, for ten (10) days after written notice thereof shall have been given to the Borrower by the Facility Agent;

 

(e)     (i) any Obligor shall fail to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness (other than Indebtedness under the Loan Documents) having an aggregate principal amount of more than $2,000,000, in each case beyond the applicable grace period with respect thereto, if any; or (ii) any Obligor shall fail to observe or perform any other agreement or condition relating to any such 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 or beneficiary or beneficiaries of such Indebtedness (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 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;

 

 

 

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(f)     an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of any Obligor or its debts, or of a substantial part of its assets, under any Debtor Relief Law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Obligor or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing shall be entered;

 

(g)     any Obligor shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (g) of this Section, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Obligor or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

 

(h)     any Obligor shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

 

(i)     an ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan that has resulted or could reasonably be expected to result in liability of any Obligor under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount that could reasonably be expected to have a Material Adverse Effect;

 

(j)     there is entered against any Obligor (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and order) exceeding $2,000,000 (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied or failed to acknowledge coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or could reasonably be expected to have 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 thirty (30) consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect;

 

(k)     any Obligor ceases or suspends or threatens to cease or suspend the carrying on of its business, or a part of its business which, in the opinion of the Required Lenders, is material in the context of this Agreement, except in the case of a sale or a proposed sale of any Vessel;

 

(l)     it becomes impossible or unlawful for any Obligor to fulfill any of the covenants and obligations required to be fulfilled as contained in any Loan Document or any of the instruments granting or creating rights in any of the Collateral, in each case in any material respect, or for any Finance Party to exercise any of the rights or remedies vested in it under any Loan Document, any of the Collateral or any of such instruments in any material respect;

 

(m)     any material 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 Obligations, ceases to be in full force and effect; or any Obligor contests in writing the validity or enforceability of any provision of any Loan Document; or any Obligor denies in writing that it has any or further liability or obligation under any Loan Document, or purports in writing to revoke, terminate or rescind any Loan Document; 

 

(n)     there occurs or develops a Material Adverse Effect; or 

 

 

 

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(o)     there occurs under any Secured Swap Contract an Early Termination Date or similar term (as defined in such Secured Swap Contract) resulting from (A) any event of default under such Secured Swap Contract as to which the Borrower is the Defaulting Party or similar term (as defined in such Secured Swap Contract) or (B) any Termination Event or similar term(as so defined) under such Secured Swap Contract as to which the Borrower is an Affected Party or similar term (as so defined);

 

then, and in any such event, the Facility Agent may, by notice to the Borrower, (i) declare the Commitments terminated, whereupon the same shall forthwith terminate, (ii) declare the principal of and accrued interest on the Loans, the Notes, and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the same shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; (iii) exercise any and all of its other rights and remedies under applicable Laws, hereunder and under the other Loan Documents, provided that, in any event described in clauses (f) and (g) above, (A) the Commitments shall automatically be terminated and (B) principal of and accrued interest on the Loans, the Notes, and all other amounts payable under this Agreement shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Obligors.

 

9.02     Application of Payments. Notwithstanding anything herein to the contrary, following the occurrence and during the continuance of an Event of Default, and notice thereof to the Facility Agent by the Borrower or the Required Lenders, all payments received on account of the Obligations shall, subject to Section 2.20, shall be applied by the Facility Agent as follows:

 

(i)      first, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees and disbursements and other charges of counsel payable under Section 11.03) payable to the Facility Agent in its capacity as such;

 

(ii)     second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest payable to the Lenders) (including fees and disbursements and other charges of counsel payable under Section 11.03) arising under the Loan Documents, ratably among them in proportion to the respective amounts described in this clause (ii) payable to them;

 

(iii)     third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans ratably among the Lenders in proportion to the respective amounts described in this clause (iii) payable to them;

 

(iv)    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 (iv) payable to them;

 

(v)    fifth, to the payment in full of all other Obligations (except Obligations in respect of a Secured Swap Contract and Obligations referenced under paragraphs (vi) and (vii) below), in each case ratably among the Facility Agent and the Lenders based upon the respective aggregate amounts of all such Obligations owing to them in accordance with the respective amounts thereof then due and payable;

 

 

 

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(vi)     sixth, in or towards satisfaction of the Obligations constituting of any amounts then due and payable under any Secured Swap Contracts in the following order and proportions: (A) first, in or towards satisfaction pro rata of all amounts then due and payable to the Swap Banks under the Secured Swap Contracts other than those amounts referred to at paragraphs (B) and (C); (B) secondly, in or towards satisfaction pro rata of any and all amounts of interest or default interest payable to the Swap Banks under the Secured Swap Contracts (and, for this purpose, the expression "interest" shall include any net amount which the Borrower shall have become liable to pay or deliver under Section 2(e) (Obligations) of a Master Agreement but shall have failed to pay or deliver to the relevant Swap Bank (or any of them) at the time of application or distribution under this Section 9.02); and (C) thirdly, in or towards satisfaction pro rata of the aggregate Swap Termination Value (calculated as at the actual Early Termination Date applying to the Secured Swap Contracts (or any of them), or if no such Early Termination Date shall have occurred, calculated as if an Early Termination Date occurred on the date of application or distribution hereunder and pro rata as between them); 

 

(vii)    seventh, to the payment in full of all other Obligations, in each case ratably among the Swap Banks based upon the respective aggregate amounts of all such Obligations owing to them in accordance with the respective amounts thereof then due and payable; and 

 

(viii)     finally, the balance, if any, after all Obligations have been paid in full, to the Borrower or as otherwise required by Law.

 

(ix)     Notwithstanding the foregoing, no amount received from any Guarantor in respect of its Guaranteed Obligations shall be applied to any Excluded Swap Obligations.

 

ARTICLE X

AGENCY

 

10.01     Appointment and Authority. 

 

(a)     The Facility Agent. Each Lender and each Swap Bank hereby irrevocably appoints the Facility Agent to act as its agent on its behalf hereunder and under the other Loan Documents and authorizes the Facility Agent, in such capacity, to take such actions on its behalf and to exercise such powers as are delegated to the Facility Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. 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 Facility 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.

 

(b)     The Security Trustee. 

 

(i)     Each Lender, each Swap Bank and the Facility Agent appoints and authorizes (with a right of revocation) the Security Trustee to act as security trustee hereunder and under the other Loan Documents (other than the Notes) with such powers as are specifically delegated to the Security Trustee by the terms of this Agreement and such other Loan Documents, together with such other powers as are reasonably incidental thereto.

 

 

 

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(ii)     To secure the payment of all sums of money from time to time owing to each Lender and each Swap Bank under the Loan Documents, and the performance of the covenants of the Borrower and any other Security Party herein and therein contained, and in consideration of the premises and of the covenants herein contained and of the extensions of credit by the Lenders, the Security Trustee does hereby declare that it will hold as such trustee in trust for the benefit of each Lender, each Swap Bank and the Facility Agent, from and after the execution and delivery thereof, all of its right, title and interest as mortgagee in, to and under the Vessel Mortgages and its right, title and interest as assignee and secured party under the other Security Documents (the right, title and interest of the Security Trustee in and to the property, rights and privileges described above, from and after the execution and delivery thereof, and all property hereafter specifically subjected to the security interest of the indenture created hereby and by the Security Documents by any amendment hereto or thereto are herein collectively called the “Estate”); TO HAVE AND TO HOLD the Estate unto the Security Trustee and its successors and assigns forever, BUT IN TRUST, NEVERTHELESS, for the equal and proportionate benefit and security of each Lender, each Swap Bank and the Facility Agent and their respective successors and assigns without any priority of any one over any other, UPON THE CONDITION that, unless and until an Event of Default under this Agreement shall have occurred and be continuing, the relevant Security Party shall be permitted, to the exclusion of the Security Trustee, to possess and use the Vessels. IT IS HEREBY COVENANTED, DECLARED AND AGREED that all property subject or to become subject hereto is to be held, subject to the further covenants, conditions, uses and trusts hereinafter set forth, and each Security Party, for itself and its respective successors and assigns, hereby covenants and agrees to and with the Security Trustee and its successors in said trust, for the equal and proportionate benefit and security of the each Lender, each Swap Bank and the Facility Agent as hereinafter set forth.

 

(iii)     The Security Trustee hereby accepts the trusts imposed upon it as Security Trustee by this Agreement, and the Security Trustee covenants and agrees to perform the same as herein expressed and agrees to receive and disburse all monies constituting part of the Estate in accordance with the terms hereof.

 

(c)     Except as otherwise provided in Section 10.03 and 10.06, the provisions of this Article are solely for the benefit of the Facility Agent, Security Trustee, the Lenders and the other Finance Parties under the Loan Documents, and neither the Borrower nor any Guarantor shall have rights as a third-party beneficiary of any of such provisions. 

 

10.02     Rights as a Lender. The Person serving as the Facility Agent or Security Trustee 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 Facility Agent or Security Trustee, and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Facility Agent or Security Trustee hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Facility Agent or Security Trustee hereunder and without any duty to account therefor to the Lenders.

 

10.03     Exculpatory Provisions.

 

(a)     Neither the Facility Agent nor the Security Trustee shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, neither the Facility Agent nor the Security Trustee:

 

 

 

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(i)     shall be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

 

(ii)     shall 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 Facility Agent or Security Trustee 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 neither the Facility Agent nor the Security Trustee shall be required to take any action that, in its opinion or the opinion of its counsel, may expose such Facility Agent or Security Trustee 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 affect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

 

(iii)     shall, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and neither the Facility Agent nor the Security Trustee shall be liable for the failure to disclose, any information relating to the Borrower, any Guarantor, or any of their Affiliates that is communicated to or obtained by the Person serving as the Facility Agent, Security Trustee, or any of their Affiliates in any capacity.

 

(b)     Neither the Facility Agent nor the Security Trustee shall 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 Facility Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 9.01 and 11.02), 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 Facility Agent or Security Trustee shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the either (as applicable) in writing by the Borrower, any Guarantor, or a Lender.

 

(c)     Neither the Facility Agent nor the Security Trustee 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 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 Facility Agent or Security Trustee. 

 

10.04     Reliance by Agent. Each of the Facility Agent and Security Trustee 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) reasonably believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. Each of the Facility Agent and the Security Trustee may also rely upon any statement made to it orally or by telephone and reasonably 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, each of the Facility Agent and the Security Trustee may presume that such condition is satisfactory to each Lender unless the Facility Agent or the Security Trustee shall have received notice to the contrary from such Lender prior to the making of such Loan. Each of the Facility Agent and the Security Trustee may consult with legal counsel (who may be counsel for the Borrower or Guarantors), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in good faith in accordance with the advice of any such counsel, accountants or experts.

 

 

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10.05     Delegation of Duties. Each of the Facility Agent and the Security Trustee 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 Facility Agent or the Security Trustee (as the case may be). Each of the Facility Agent, the Security Trustee 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 shall apply to any such sub-agent and to the Related Parties of the Facility Agent, Security Trustee and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the Commitments as well as activities as Facility Agent or the Security Trustee (as the case may be). Neither the Facility Agent nor the Security Trustee 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 nonappealable judgment that the Facility Agent or Security Trustee acted with gross negligence or willful misconduct in the selection of such sub-agents.

 

10.06     Resignation of Agent.

 

(a)     Each of the Facility Agent or the Security Trustee may at any time give notice of its resignation to the Lenders, the Borrower, and the Guarantors. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower and Guarantors, to appoint a successor, which shall be a bank with an office in New York, or an Affiliate of any such bank with an office in New York. 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 Facility Agent or Security Trustee gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Facility Agent or Security Trustee may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Facility Agent or Security Trustee (as applicable) meeting the qualifications set forth above; provided that in no event shall any such successor be a Defaulting Lender. 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 Facility Agent or Security Trustee is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law, by notice in writing to the Borrower, the Guarantors and such Person remove such Person as Facility Agent or Security Trustee and, in consultation with the Borrower and Guarantors, 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.

 

 

 

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(c)     With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Facility Agent or Security Trustee shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments owed to the retiring or removed Facility Agent or Security Trustee, all payments, communications and determinations provided to be made by, to or through the Facility Agent or Security Trustee shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Facility Agent or Security Trustee as provided for above. Upon the acceptance of a successor’s appointment as Facility Agent or Security Trustee hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Facility Agent (other than any rights to indemnity payments owed to the retiring or removed Facility Agent) or Security Trustee (other than any rights to indemnity payments owed to the retiring or removed Security Trustee), and the retiring or removed Facility Agent or Security Trustee shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower or Guarantor to a successor Facility Agent or Security Trustee shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower, the Guarantors and such successor. After the retiring or removed Facility Agent or Security Trustee’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 11.03 shall continue in effect for the benefit of such retiring or removed Facility Agent, Security Trustee, their 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 Facility Agent was acting as Facility Agent or while the retiring or removed Security Trustee was acting as Security Trustee (as the case may be).

 

10.07     Non-Reliance on Agents and Other Lenders. Each Lender acknowledges that it has, independently and without reliance upon the Facility Agent, the Security Trustee or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Facility Agent, the Security Trustee 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.

 

10.08     No Other Duties. Anything herein to the contrary notwithstanding, none of the Bookrunners, Arrangers or Mandated Lead Arrangers listed on the cover page hereof shall (a) have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Facility Agent, the Security Trustee, or a Lender, and (b) none are required to execute any Loan Document or any amendment thereto, including this Agreement.

 

10.09     Facility 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 the Borrower or any Guarantor, the Facility Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Facility Agent shall have made any demand on the Borrower or applicable Guarantor) 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, the Facility Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Security Trustee and the Facility Agent and their respective agents and counsel and all other amounts due the Lenders, the Security Trustee and the Facility Agent under Section 11.03) allowed in such judicial proceeding; and

 

 

 

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(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 to make such payments to the Facility Agent and, in the event that the Facility Agent shall consent to the making of such payments directly to the Lenders, to pay to the Facility Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Facility Agent and its agents and counsel, and any other amounts due the Facility Agent under Section 11.03.

 

10.10     Collateral and Guaranty Matters. The Lenders irrevocably authorize each of the Facility Agent and the Security Trustee, at its option and in its discretion:

 

(a)      to release any Lien on any property granted to or held by the Facility Agent or the Security Trustee under any Loan Document (i) upon termination of the Commitments and payment in full of all Obligations (other than contingent indemnification obligations), (ii) that is sold or otherwise disposed of or to be sold or otherwise disposed of as part of or in connection with any sale or other disposition permitted hereunder or under any other Loan Document, or (iii) subject to Section 11.02, if approved, authorized or ratified in writing by the Required Lenders; and

 

(b)     to release any Guarantor from its obligations under the Loan Document if (i) such Person ceases to be a Subsidiary as a result of a transaction permitted under the Loan Documents or (ii) any Vessel owned by such Person is sold, assigned or otherwise transferred as a result of a transaction permitted under the Loan Documents (after any required prepayment is made with respect thereto).

 

Upon request by the Facility Agent at any time, the Required Lenders will confirm in writing to the Facility Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Loan Documents pursuant to this Section 10.10. The Facility Agent and the Security Trustee 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 Facility Agent’s or the Security Trustee’s Lien thereon, or any certificate prepared by any Obligor in connection therewith, nor shall the Facility Agent or the Security Trustee be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

 

ARTICLE XI

MISCELLANEOUS

 

11.01     Notices; Public Information.

 

(a)     Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or email as follows:

 

 

 

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(i)
	
if to any Obligor: 

	 	 	 
	 	 	c/o Eagle Shipping International (USA) LLC
	 	 	300 Stamford Place
	 	 	Stamford, CT 06902
	 	 	Email:   fdecostanzo@eagleships.com
	 	 	 
	 	(ii)	if to a Lender:
	 	 	 
	 	 	At the address below its name in Schedule I
	 	 	 
	 	(iii)	if to the Facility Agent or Security Trustee:
	 	 	 
	 	 	ABN AMRO Capital USA LLC
	 	 	100 Park Avenue, 17th floor
	 	 	New York, NY 10017
	 	 	Attention: Wudasse Zaudou
	 	 	Facsimile: 917-284-6697
	 	 	Email: wudasse.zaudou@abnamro.com

 

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

 

(b)     Electronic Communications. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail, FpML, and Internet or intranet websites) pursuant to procedures approved by the Facility Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Facility Agent that it is incapable of receiving notices under such Article by electronic communication. The Facility Agent or any Obligor 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.

 

Unless the Facility 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) above, if such notice, email 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.

 

(c)     Change of Address, etc. Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

 

 

 

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(d)     Platform.

 

(i)     The Obligors agree that the Facility Agent may, but shall not be obligated to, make the Communications (as defined below) available to the other Lenders by posting the Communications on the Platform.

 

(ii)     The Platform is provided “as is” and “as available.” The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim 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 any Agent Party in connection with the Communications or the Platform. In no event shall the Facility Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Guarantor, any Lender or any other Person or entity for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of any Obligor’s or the Facility Agent’s transmission of communications through the Platform. “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Obligor pursuant to any Loan Document or the transactions contemplated therein which is distributed to the Facility Agent or any Lender by means of electronic communications pursuant to this Section, including through the Platform.

 

(e)     Public Information. The Borrower hereby acknowledges that certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to any Obligor or their 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 Obligor hereby agrees that it will use commercially reasonable efforts to identify that portion of the materials and information provided by or on behalf of any Obligor hereunder and under the other Loan Documents (collectively, “Obligor Materials”) that may be distributed to the Public Lenders and that (1) all such Obligor 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; (2) by marking Obligor Materials “PUBLIC,” such Obligor shall be deemed to have authorized the Facility Agent and the Lenders to treat such Obligor Materials as not containing any material non-public information with respect to such Obligor or its securities for purposes of U.S. Federal and state securities Laws (provided, however, that to the extent that such Obligor Materials constitute Information, they shall be subject to Section 11.12); (3) all Obligor Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (4) the Facility Agent shall be entitled to treat any Obligor Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information”. Each Public Lender will designate one or more representatives that shall be permitted to receive information that is not designated as being available for Public Lenders.

 

11.02  Waivers; Amendments.

 

(a)     No Waiver; Remedies Cumulative; Enforcement. No failure or delay by the Facility Agent, the Security Trustee or any Lender 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 such right, remedy, power or privilege, or any abandonment or discontinuance of steps to enforce such a right, remedy, power or privilege, preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges of the Facility Agent, the Security Trustee and the Lenders hereunder and under the Loan Documents are cumulative and are not exclusive of any rights, remedies, powers or privileges that any such Person would otherwise have. 

 

 

 

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(b)     Amendments, Etc. Except as otherwise expressly set forth in this Agreement, no amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by any Obligor therefrom, shall be effective unless in writing executed by the Obligors and the Required Lenders, and acknowledged by the Facility Agent, or by the Obligors and the Facility Agent with the consent of the Required Lenders, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided that no such amendment, waiver or consent shall:

 

(i)     extend or increase any Commitment of any Lender without the written consent of such Lender (it being understood that a waiver of any condition precedent set forth in Article IV or the waiver of any Default shall not constitute an extension or increase of any Commitment of any Lender);

 

(ii)     reduce the principal of, or rate of interest specified herein on, any Loan, or any fees or other amounts payable hereunder or under any other Loan Document, without the written consent of each Lender directly and adversely affected thereby (provided that only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive the obligation of the Borrower to pay interest at the Default Rate);

 

(iii)    postpone any date scheduled for any payment of principal of, or interest on, any Loan, or any fees or other amounts payable hereunder or under any other Loan Document, or reduce the amount of, waive or excuse any such payment, without the written consent of each Lender directly and adversely affected thereby;

 

(iv)    change Section 2.12(b) or Section 2.13 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender directly and adversely affected thereby; 

 

(v)     release all or substantially all of the Guarantors from their respective Guarantees, or limit their liability in respect of such Guarantees, without the written consent of each Lender, except to the extent the release of any Guarantor is in connection with a disposition permitted pursuant to Section 6.03 (in which case such release may be made by the Facility Agent acting alone);

 

(vi)     except as expressly permitted in this Agreement or any Security Document, release all or substantially all of the Collateral from the Liens of the Security Documents or alter the relative priorities of the Obligations entitled to the Liens of the Security Documents (except in connection with securing additional Obligations equally and ratably with the other Obligations), in each case without the written consent of each Lender; 

 

(vii)     waive any conditions set forth in Article IV, without the written consent of each Lender; 

 

(viii)    change any provision of this Section or the percentage in the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; or

 

 

 

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(ix)     waive any provisions of Section 5.04 or Section 7.01 without the written consent of each Lender; 

 

provided, further, that no such amendment, waiver or consent shall amend, modify or otherwise affect the rights or duties hereunder or under any other Loan Document of (A) the Facility Agent, unless in writing executed by the Facility Agent, and (B) the Security Trustee, unless in writing executed by the Security Trustee, in each case in addition to the Obligors and the Lenders required above.

 

Notwithstanding anything herein to the contrary, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent that by its terms requires the consent of all the 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, or the maturity of any of its Loan may not be extended, the rate of interest on any of its Loans may not be reduced and the principal amount of any of its Loans may not be forgiven, in each case without the consent of such Defaulting Lender and (y) any amendment, waiver or consent requiring the consent of all the Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than the other affected Lenders shall require the consent of such Defaulting Lender.

 

Notwithstanding anything to the contrary in this Agreement, Incremental Commitments may be effected in accordance with Section 2.21 without the consent of any Person other than as specified in Section 2.21.

 

In addition, notwithstanding anything in this Section to the contrary, if the Facility Agent and the Borrower shall have jointly identified an obvious error or any error or omission of a technical nature, in each case, in any provision of the Loan Documents, then the Facility Agent and the Borrower shall be permitted to amend such provision, and, in each case, such amendment shall become effective without any further action or consent of any other party to any Loan Document if the same is not objected to in writing by the Required Lenders to the Facility Agent within ten (10) Business Days following receipt of notice thereof.

 

11.03     Expenses; Indemnity; Damage Waiver.

 

(a)     Costs and Expenses. Each Obligor shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Facility Agent, the Security Trustee and any Affiliates thereof (including the reasonable fees, charges and disbursements of any counsel for the Facility Agent or the Security Trustee), in connection with the syndication of the facility, 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), and (ii) all reasonable and documented out-of-pocket expenses incurred by the Facility Agent, any Lender (including the reasonable fees, charges and disbursements of any counsel for the Facility Agent, the Security Trustee or any Lender), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.

 

 

 

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(b)     Indemnification by the Obligors. Each Obligor shall indemnify the Facility Agent (and any sub-agent thereof), the Security Trustee (and any sub-agent thereof), each Lender, 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 reasonable and documented out-of-pocket fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by any Obligor or any Subsidiaries thereof, or any Environmental Liability related in any way to any Obligor or any Subsidiaries thereof, 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 Obligor, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought by any Obligor against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, if such Obligor has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction or (z) result from a claim not involving an act or omission of such Obligor and that is brought by an Indemnitee against another Indemnitee (other than against the Arranger or the Facility Agent in their capacities as such). Paragraph (b) of this Section shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

(c)     Reimbursement by Lenders. To the extent that any Obligor for any reason fails to indefeasibly pay any amount required under paragraph (a) or (b) of this Section to be paid by it to the Facility Agent (or any sub-agent thereof), the Security Trustee (and any sub-agent thereof) or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Facility Agent (or any such sub-agent), the Security Trustee (and any sub-agent thereof) or such Related Party, 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 based on each Lender’s Applicable Percentage at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); 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 Facility Agent (or any such sub-agent), the Security Trustee (and any sub-agent thereof) or against any Related Party of any of the foregoing acting for the Facility Agent (or any such sub-agent), the Security Trustee (and any sub-agent thereof), in connection with such capacity. The obligations of the Lenders under this paragraph (c) are subject to the provisions of Section 2.12(e).

 

(d)     Waiver of Consequential Damages, Etc. To the fullest extent permitted by Applicable Law, each Obligor shall not assert, and hereby waives, 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, the transactions contemplated hereby or thereby, any Loan, or the use of the proceeds thereof. No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it 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.

 

 

 

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(e)     Payments. All amounts due under this Section shall be payable not later than ten (10) days after demand therefor.

 

(f)     Survival. Each party’s obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.

 

11.04     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 each Obligor may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Facility Agent and each Lender, 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 paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Facility Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)     Assignments by Lenders. Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that any such assignment shall be subject to the following conditions:

 

(i)     Required Consents. No consent shall be required for any assignment except:

 

(A)     the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Facility Agent within five (5) Business Days after having received notice thereof and provided, further, that the Borrower’s consent shall not be required during the primary syndication of the Commitments; and

 

(B)     the consent of the Facility Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

 

(ii)     Assignment and Assumption. The parties to each assignment shall execute and deliver to the Facility Agent an Assignment and Assumption, together with a processing and recordation fee of $7,500; provided that the Facility Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Facility Agent an Administrative Questionnaire.

 

 

 

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(iii)     No Assignment to Certain Persons. No such assignment shall be made to (A) any Obligor or any Obligors’ Affiliates or Subsidiaries or (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender or a Subsidiary thereof.

 

(iv)     No Assignment to Natural Persons. No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).

 

(v)     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 Facility 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 Facility Agent, the applicable pro rata share of Loans previously requested but not funded by the 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 Facility Agent, the Security Trustee and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all 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 Facility Agent pursuant to paragraph (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 Section 11.03 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. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph 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 paragraph (d) of this Section.

 

(c)     Register. The Facility Agent, acting solely for this purpose as an agent of each Obligor, shall maintain at its office in New York, New York a copy of each Assignment and Assumption delivered to it 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 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 Obligors, the Facility Agent, the Security Trustee 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. The Register shall be available for inspection by any Obligor, the Security Trustee and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

 

 

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(d)     Participations. Any Lender may at any time, without the consent of, or notice to, any Obligor or the Facility Agent, sell participations to any Person (other than a natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or each Obligor or any of the Obligors’ 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 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) each Obligor, the Facility Agent, the Security Trustee and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.03(c) with respect to any payments made by such Lender to its Participant(s).

 

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, modification or waiver described in Sections 11.02(b)(i) through (vii) that affects such Participant. Each Obligor agrees that each Participant shall be entitled to the benefits of Sections 2.14, 2.15 and 2.16 (subject to the requirements and limitations therein, including the requirements under Section 2.16(g) (it being understood that the documentation required under Section 2.16(g) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 2.19 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Section 2.15 or 2.16, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.19(b) 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 2.13 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of each Obligor, 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 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 Facility Agent (in its capacity as Facility Agent) shall have no responsibility for maintaining a Participant Register.

 

 

 

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(e)       Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

11.05     Survival. All covenants, agreements, representations and warranties made by each Obligor herein and in any Loan Document or other documents delivered in connection herewith or therewith or pursuant hereto or thereto shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery hereof and thereof and the making of the Borrowings hereunder, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Facility Agent, the Security Trustee or any Lender may have had notice or knowledge of any Default at the time of any Borrowing, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied and so long as the Commitments have not expired or been terminated. The provisions of Sections 2.14, 2.15, 11.03, 11.15 and Article X  shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the payment in full of the Obligations, the expiration or termination of the Commitments or the termination of this Agreement or any provision hereof.

 

11.06     Counterparts; Integration; Effectiveness; Electronic Execution.

 

(a)     Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Facility Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement shall become effective when it shall have been executed by the Facility Agent and when the Facility Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

 

(b)     Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures 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.

 

11.07     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, if and to the extent that the enforceability of any provision of this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Facility Agent, as applicable, then such provision shall be deemed to be in effect only to the extent not so limited.

 

 

 

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11.08     Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender, or any such Affiliate, to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or their respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; 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 Facility Agent for further application in accordance with the provisions of Section 2.20 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 Facility Agent, the Security Trustee and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Facility 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 and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective Affiliates may have. Each Lender agrees to notify the Borrower and the Facility 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     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 (including Sections 5-1401 and 5-1402 of the General Obligations Law but otherwise excluding the laws applicable to conflicts or choice of law).

 

(b)     Jurisdiction. Each Obligor 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 Facility Agent, the Security Trustee, any Lender, 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 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 Facility Agent, the Security Trustee or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Obligor or its properties in the courts of any jurisdiction.

 

 

 

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(c)     Waiver of Venue. Each Obligor 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 11.01. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

 

11.10     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.

 

11.11     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 shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

11.12     Treatment of Certain Information; Confidentiality. Each of the Facility Agent, the Security Trustee and the Lenders agree 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 agree 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 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, but solely to the extent required in connection therewith; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to any Obligor and its obligations, this Agreement or payments hereunder; (g) on a confidential basis to any rating agency in connection with rating any Obligor or its Subsidiaries; (h) with the consent of the Borrower; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Facility Agent, the Security Trustee, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. In addition, the Facility Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Facility Agent or any Lender in connection with the administration of this Agreement, the other Loan Documents, and the Commitments.

 

 

 

95

 

 

For purposes of this Section, “Information” means all information received from any Obligor or any of the Subsidiaries thereof relating to any Obligor or any of the Subsidiaries thereof or any of their respective businesses, other than any such information that is available to the Facility Agent or any Lender on a nonconfidential basis prior to disclosure by any Obligor or any of the Subsidiaries thereof; provided that, in the case of information received from any Obligor or any of the Subsidiaries thereof 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.

 

11.13     PATRIOT Act. Each Lender subject to the PATRIOT Act hereby notifies each Obligor that pursuant to the requirements of the PATRIOT Act, it may be required to obtain, verify and record information that identifies any Obligor, which information includes the name and address of each Obligor and other information that will allow such Lender to identify each Obligor in accordance with the PATRIOT Act.

 

11.14     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 that are treated as interest on such Loan under Applicable Law (collectively, “charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) that 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. To the extent lawful, the interest and charges that would have been paid in respect of such Loan but were not paid as a result of the operation of this Section shall be cumulated and the interest and charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the amount collectible at the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Rate for each day to the date of repayment, shall have been received by such Lender. Otherwise, any amount collected by such Lender that exceeds the maximum amount collectible at the Maximum Rate shall be applied to the reduction of the principal balance of such Loan or refunded to the Borrower so that at no time shall the interest and charges paid or payable in respect of such Loan exceed the maximum amount collectible at the Maximum Rate. 

 

 

 

96

 

 

11.15     Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is made to the Facility Agent or any Lender, or the Facility Agent, or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Facility Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Facility Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Facility Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect.

 

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 Obligor acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (a) (i) no fiduciary, advisory or agency relationship between any Obligor and Subsidiaries and any Arranger, the Facility Agent, the Security Trustee or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Arranger, the Facility Agent, the Security Trustee or any Lender has advised or is advising any Obligor or any Subsidiary thereof on other matters, (ii) the arranging and other services regarding this Agreement provided by the Arranger, the Facility Agent, the Security Trustee and the Lenders are arm’s-length commercial transactions between each Obligor and its Affiliates, on the one hand, and the Arranger, the Facility Agent, the Security Trustee and the Lenders, on the other hand, (iii) each Obligor has consulted its own legal, accounting, regulatory and tax advisors to the extent that it has deemed appropriate and (iv) each Obligor is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b) (i) the Arranger, the Facility Agent, the Security Trustee, and the Lenders 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 any Obligor or any of their Affiliates, or any other Person; (ii) none of the Arranger, the Facility Agent, the Security Trustee and the Lenders has any obligation to any Obligor or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Arranger, the Facility Agent, the Security Trustee and the Lenders and their respective Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and none of the Arranger, the Facility Agent, the Security Trustee and the Lenders has any obligation to disclose any of such interests to any Obligor or its Affiliates. To the fullest extent permitted by Law, each Guarantor hereby waives and releases any claims that it may have against any of the Arranger, the Facility Agent, the Security Trustee and the Lenders 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     Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)     the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

 

 

97

 

 

(b)     the effects of any Bail-in Action on any such liability, including, if applicable:

 

(i)     a reduction in full or in part or cancellation of any such liability;

 

(ii)    a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)   the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

 

 

98

 

 

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

 

	
 
	
EAGLE BULK ULTRACO LLC,

as Borrower
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Frank De Costanzo
	
 

	
 
	
 
	
Name: Frank De Costanzo
	
 

	
 
	
 
	
Title: CFO
	
 

 

 

99

 

 

	
FAIRFIELD EAGLE LLC,
	
ROWAYTON EAGLE LLC,

	
as Initial Guarantor
	
as Initial Guarantor

	  	  
	  	  
	
By  /s/ Frank De Costanzo_____________
	
By  /s/ Frank De Costanzo____________

	
Name: Frank De Costanzo
	
Name: Frank De Costanzo

	
Title:   CFO
	Title: CFO
	  	  
	  	  
	
GREENWICH EAGLE LLC,
	
SOUTHPORT EAGLE LLC,

	
as Initial Guarantor
	
as Initial Guarantor

	  	  
	  	  
	
By  /s/ Frank De Costanzo_____________
	
By  /s/ Frank De Costanzo____________

	
Name: Frank De Costanzo
	
Name: Frank De Costanzo

	
Title:   CFO
	Title: CFO
	  	  
	  	  
	
GROTON EAGLE LLC,
	
STONINGTON EAGLE LLC,

	
as Initial Guarantor
	
as Initial Guarantor

	  	  
	  	  
	
By  /s/ Frank De Costanzo_____________
	
By  /s/ Frank De Costanzo____________

	
Name: Frank De Costanzo
	
Name: Frank De Costanzo

	
Title:   CFO
	Title: CFO
	  	  
	  	  
	
MADISON EAGLE LLC,
	
WESTPORT EAGLE LLC,

	
as Initial Guarantor
	
as Initial Guarantor

	  	  
	  	  
	
By  /s/ Frank De Costanzo_____________
	
By  /s/ Frank De Costanzo____________

	
Name: Frank De Costanzo
	
Name: Frank De Costanzo

	
Title:   CFO
	Title: CFO
	  	  
	  	  
	
MYSTIC EAGLE LLC,
	  
	
as Initial Guarantor
	  
	  	  
	  	  
	
By  /s/ Frank De Costanzo_____________
	  
	
Name: Frank De Costanzo
	 
	Title: CFO	 

 

 

100

 

 

LENDERS

 

ABN AMRO CAPITAL USA LLC,          

as Lender                         

 

 

By  /s/ R. Bisscheroux           

Name: R. Bisscheroux                              
Title:  Director                              

 

By/s/ Francis Birkeland                    
Name:     Francis Birkeland                         
Title:       Director

 

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL),

as Lender                              

 

 

By/s/ Arne Juell-Skielse                         
Name: Arne Juell-Skielse                              
Title:

 

By/s/ Olof Kajerdt                         
Name: Olof Karjerdt                              
Title:

 

 

DVB BANK SE, AMSTERDAM BRANCH,                                   

as Lender                              

 

 

By/s/ Wijnand Botman                         
Name: Wijnand Botman                              
Title: Senior Vice President

 

By/s/ Sona Krijger-Dolbakyan               
Name: Sona Krijger-Dolbakyan                              
Title: Vice President

 

 

 

101

 

 

 

SWAP BANKS

 

ABN AMRO BANK N.V.,                    

as Swap Bank                              

 

 

By/s/ M.N. Hoogeveen                         
Name: M.N. Hoogeveen                              
Title:

 

By/s/ A.C.A.J. Biesbroeck               
Name: A.C.A.J. Biesbroeck                              
Title:

 

 

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL),

as Swap Bank                              

 

 

By/s/ Arne Juell-Skielse                         
Name: Arne Juell-Skielse                              
Title:

 

By/s/ Olof Kajerdt                         
Name: Olof Karjerdt                              
Title:

 

DVB BANK SE,                                   

as Swap Bank                              

 

 

By/s/ Wijnand Botman                         
Name: Wijnand Botman                              
Title: Senior Vice President

 

By/s/ Sona Krijger-Dolbakyan               
Name: Sona Krijger-Dolbakyan                              
Title: Vice President

 

 

 

102

 

 

MANDATED LEAD ARRANGERS

 

ABN AMRO CAPITAL USA LLC,          

as Mandated Lead Arranger                         

 

 

By_/s/ R. Bisscheroux           

Name: R. Bisscheroux                              
Title: Director                              

 

By/s/ Francis Birkeland                    
Name:   Francis Birkeland                         
Title:     Director

 

 

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL),

as Mandated Lead Arranger                              

 

 

By/s/ Arne Juell-Skielse                         
Name: Arne Juell-Skielse                              
Title:

 

By/s/ Olof Kajerdt                         
Name: Olof Karjerdt                              
Title:

 

 

 

DVB BANK SE,                                   

as Mandated Lead Arranger                              

 

 

By/s/ Wijnand Botman                         
Name: Wijnand Botman                              
Title: Senior Vice President

 

By/s/ Sona Krijger-Dolbakyan               
Name: Sona Krijger-Dolbakyan                              
Title: Vice President

 

 

103

 

  

ABN AMRO CAPITAL USA LLC,               

as Security Trustee                         

 

 

By_/s/ R. Bisscheroux           

Name: R. Bisscheroux                              
Title: Director                              

 

By/s/ Francis Birkeland                    
Name:    Francis Birkeland                         
Title:      Director

 

ABN AMRO CAPITAL USA LLC,

as Arranger

 

By_/s/ R. Bisscheroux           

Name: R. Bisscheroux                              
Title: Director                              

 

By/s/ Francis Birkeland                    
Name:    Francis Birkeland                         
Title:      Director

 

 

ABN AMRO CAPITAL USA LLC,               

as Facility Agent                         

 

 

By_/s/ R. Bisscheroux                          

Name: R. Bisscheroux                              
Title: Director                              

 

By/s/ Francis Birkeland                    
Name:    Francis Birkeland                         
Title:      Director

 

 

ABN AMRO CAPITAL USA LLC,

as Bookrunner

 

By_/s/ R. Bisscheroux           

Name: R. Bisscheroux                              
Title: Director                              

 

By/s/ Francis Birkeland                    
Name:    Francis Birkeland                         
Title:      Director

 

 

104EX-10.1

 Exhibit 10.1 
  

 
  

SECOND AMENDED AND RESTATED SENIOR SECURED CREDIT AGREEMENT 

Dated as of June 30, 2017 

among 
 APARTMENT INVESTMENT
AND MANAGEMENT COMPANY, 
 AIMCO PROPERTIES, L.P., 

and 
 AIMCO/BETHESDA HOLDINGS,
INC., 
 as the Borrowers, 

KEYBANK NATIONAL ASSOCIATION, 

as Administrative Agent, Swing Line Lender 

and an L/C Issuer, 
 WELLS FARGO
BANK, N.A. 
 and 
 PNC
BANK, NATIONAL ASSOCIATION, 
 as Syndication Agents, 

CITIBANK, N.A., 
 BANK OF
AMERICA, N.A., 
 REGIONS BANK 

and 
 U.S. BANK NATIONAL
ASSOCIATION, 
 as Co-Documentation Agents for the Revolving Credit Facility 

REGIONS BANK, 
 JPMORGAN
CHASE BANK, N.A. 
 and 

BMO HARRIS BANK, N.A., 
 as Co-Documentation Agents for the Term Loan Facility, 
 The Other Lenders Party Hereto, 

KEYBANC CAPITAL MARKETS, 

WELLS FARGO SECURITIES 
 and

 PNC CAPITAL MARKETS LLC, 

as Joint Lead Arrangers and Joint Book Managers for the Revolving Credit Facility 

and 
 KEYBANC CAPITAL MARKETS,

 WELLS FARGO SECURITIES, 

PNC CAPITAL MARKETS LLC 
 and

 U.S. BANK NATIONAL ASSOCIATION, 

as Joint Lead Arrangers and Joint Book Managers for the Term Loan Facility 

 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE I.
	  	DEFINITIONS AND ACCOUNTING TERMS	  	 	1	 
	 1.01
	  	Defined Terms	  	 	1	 
	 1.02
	  	Other Interpretive Provisions	  	 	41	 
	 1.03
	  	Accounting Terms	  	 	41	 
	 1.04
	  	Rounding	  	 	42	 
	 1.05
	  	Times of Day	  	 	42	 
	 1.06
	  	Letter of Credit Amounts	  	 	42	 
	 ARTICLE II.
	  	THE COMMITMENTS AND CREDIT EXTENSIONS	  	 	43	 
	 2.01
	  	Revolving Loans and Term Loans	  	 	43	 
	 2.02
	  	Borrowings, Conversions and Continuations of Loans	  	 	44	 
	 2.03
	  	Letters of Credit	  	 	45	 
	 2.04
	  	Swing Line Loans	  	 	54	 
	 2.05
	  	Prepayments	  	 	57	 
	 2.06
	  	Termination or Reduction of Revolving Credit Commitments	  	 	58	 
	 2.07
	  	Repayment of Loans	  	 	59	 
	 2.08
	  	Interest	  	 	59	 
	 2.09
	  	Fees	  	 	60	 
	 2.10
	  	Computation of Interest and Fees	  	 	61	 
	 2.11
	  	Evidence of Debt	  	 	62	 
	 2.12
	  	Payments Generally; Administrative Agent’s Clawback	  	 	63	 
	 2.13
	  	Sharing of Payments by Lenders	  	 	65	 
	 2.14
	  	Cash Collateral	  	 	65	 
	 2.15
	  	Defaulting Lenders	  	 	66	 
	 2.16
	  	Extension of Initial Term Loan Maturity Date	  	 	69	 
	 2.17
	  	Increase in Commitments	  	 	69	 
	 ARTICLE III.
	  	TAXES, YIELD PROTECTION AND ILLEGALITY	  	 	71	 
	 3.01
	  	Taxes	  	 	71	 
	 3.02
	  	Illegality	  	 	75	 
	 3.03
	  	Inability to Determine Rates	  	 	76	 
	 3.04
	  	Increased Costs; Reserves on Eurodollar Rate Loans	  	 	76	 
	 3.05
	  	Compensation for Losses	  	 	78	 
	 3.06
	  	Mitigation Obligations; Replacement of Lenders	  	 	78	 
	 3.07
	  	Survival	  	 	79	 
	 ARTICLE IV.
	  	CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AGREEMENT AND CREDIT EXTENSIONS	  	 	79	 
	 4.01
	  	Conditions of Effectiveness of this Agreement	  	 	79	 
	 4.02
	  	Conditions to all Credit Extensions	  	 	81	 
	 ARTICLE V.
	  	REPRESENTATIONS AND WARRANTIES	  	 	82	 
	 5.01
	  	Existence, Qualification and Power; Compliance with Laws	  	 	82	 
	 5.02
	  	Authorization; No Contravention	  	 	82	 

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 5.03
	  	 Governmental Authorization; Other Consents
	  	 	82	 
	 5.04
	  	 Binding Effect
	  	 	82	 
	 5.05
	  	 Financial Statements; No Material Adverse Effect
	  	 	83	 
	 5.06
	  	 Litigation
	  	 	83	 
	 5.07
	  	 No Default
	  	 	84	 
	 5.08
	  	 Ownership of Property; Liens
	  	 	84	 
	 5.09
	  	 Environmental Compliance
	  	 	84	 
	 5.10
	  	 Insurance
	  	 	84	 
	 5.11
	  	 Taxes
	  	 	84	 
	 5.12
	  	 ERISA Compliance
	  	 	85	 
	 5.13
	  	 Subsidiaries; Equity Interests
	  	 	85	 
	 5.14
	  	 Margin Regulations; Investment Company Act; REIT and Tax Status; Stock Exchange Listing
	  	 	85	 
	 5.15
	  	 Disclosure
	  	 	86	 
	 5.16
	  	 Compliance with Laws
	  	 	86	 
	 5.17
	  	 Intellectual Property; Licenses, Etc.
	  	 	87	 
	 5.18
	  	 Sanctions Laws and Regulations
	  	 	87	 
	 5.19
	  	 EEA Financial Institutions
	  	 	87	 
	 ARTICLE VI.
	  	AFFIRMATIVE COVENANTS	  	 	88	 
	 6.01
	  	 Financial Statements
	  	 	88	 
	 6.02
	  	 Certificates; Other Information
	  	 	89	 
	 6.03
	  	 Notices
	  	 	91	 
	 6.04
	  	 Payment of Obligations
	  	 	91	 
	 6.05
	  	 Preservation of Existence, Etc.
	  	 	92	 
	 6.06
	  	 Maintenance of Properties
	  	 	92	 
	 6.07
	  	 Maintenance of Insurance
	  	 	92	 
	 6.08
	  	 Compliance with Laws
	  	 	92	 
	 6.09
	  	 Books and Records
	  	 	93	 
	 6.10
	  	 Inspection Rights
	  	 	93	 
	 6.11
	  	 Use of Proceeds
	  	 	93	 
	 6.12
	  	 Additional Guarantors
	  	 	94	 
	 6.13
	  	 Intra-Company Debt
	  	 	95	 
	 ARTICLE VII.
	  	 NEGATIVE COVENANTS
	  	 	95	 
	 7.01
	  	 Liens
	  	 	95	 
	 7.02
	  	 Investments
	  	 	97	 
	 7.03
	  	 Indebtedness
	  	 	98	 
	 7.04
	  	 Fundamental Changes
	  	 	100	 
	 7.05
	  	 Intentionally Omitted
	  	 	101	 
	 7.06
	  	 Restricted Payments
	  	 	101	 
	 7.07
	  	 Change in Nature of Business
	  	 	102	 
	 7.08
	  	 Transactions with Affiliates
	  	 	102	 
	 7.09
	  	 Burdensome Agreements
	  	 	102	 

  
 ii 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 7.10
	  	 Use of Proceeds; Etc.
	  	 	103	 
	 7.11
	  	 Financial Covenants
	  	 	103	 
	 7.12
	  	 Special Covenants Relating to the REIT
	  	 	104	 
	 7.13
	  	 Taxation of AIMCO
	  	 	104	 
	 ARTICLE VIII.
	  	EVENTS OF DEFAULT AND REMEDIES	  	 	105	 
	 8.01
	  	 Events of Default
	  	 	105	 
	 8.02
	  	 Remedies Upon Event of Default
	  	 	107	 
	 8.03
	  	 Application of Funds
	  	 	108	 
	 ARTICLE IX.
	  	ADMINISTRATIVE AGENT	  	 	108	 
	 9.01
	  	 Appointment and Authority
	  	 	108	 
	 9.02
	  	 Rights as a Lender
	  	 	109	 
	 9.03
	  	 Exculpatory Provisions
	  	 	109	 
	 9.04
	  	 Reliance by Administrative Agent
	  	 	110	 
	 9.05
	  	 Delegation of Duties
	  	 	110	 
	 9.06
	  	 Resignation of Administrative Agent
	  	 	111	 
	 9.07
	  	 Non-Reliance on Administrative Agent and Other
Lenders
	  	 	112	 
	 9.08
	  	 No Other Duties, Etc.
	  	 	112	 
	 9.09
	  	 Administrative Agent May File Proofs of Claim
	  	 	112	 
	 9.10
	  	 Collateral and Guaranty Matters
	  	 	113	 
	 9.11
	  	 Approvals
	  	 	114	 
	 ARTICLE X.
	  	MISCELLANEOUS	  	 	115	 
	 10.01
	  	 Amendments, Etc.
	  	 	115	 
	 10.02
	  	 Notices; Effectiveness; Electronic Communication
	  	 	117	 
	 10.03
	  	 No Waiver; Cumulative Remedies
	  	 	118	 
	 10.04
	  	 Expenses; Indemnity; Damage Waiver
	  	 	119	 
	 10.05
	  	 Payments Set Aside
	  	 	121	 
	 10.06
	  	 Successors and Assigns
	  	 	121	 
	 10.07
	  	 Treatment of Certain Information; Confidentiality
	  	 	126	 
	 10.08
	  	 Right of Setoff
	  	 	127	 
	 10.09
	  	 Interest Rate Limitation
	  	 	128	 
	 10.10
	  	 Counterparts; Integration; Effectiveness
	  	 	128	 
	 10.11
	  	 Survival of Representations and Warranties
	  	 	128	 
	 10.12
	  	 Severability
	  	 	129	 
	 10.13
	  	 Replacement of Lenders
	  	 	129	 
	 10.14
	  	 Governing Law; Jurisdiction; Etc.
	  	 	130	 
	 10.15
	  	 WAIVER OF JURY TRIAL
	  	 	131	 
	 10.16
	  	 USA PATRIOT Act Notice
	  	 	131	 
	 10.17
	  	 Time of the Essence
	  	 	131	 
	 10.18
	  	 Borrowers’ Obligations
	  	 	132	 
	 10.19
	  	 Fiduciary Duty
	  	 	135	 
	 10.20
	  	 Dealings with the Borrowers
	  	 	135	 
	 10.21
	  	 Acknowledgement and Consent to Bail-In of EEA Financial
Institutions
	  	 	136	 
	 10.22
	  	 Consent to Amendment and Restatement; Effect of Amendment and Restatement
	  	 	136	 

  
 iii 

 SCHEDULES 
  

			
	         1.01C
	  	Construction/Renovation
	         1.01E
	  	Existing Letters of Credit
	         1.01G
	  	Guarantors as of the Closing Date
	         2.01A
	  	Commitments and Applicable Percentages
	         5.06
	  	Litigation
	         5.09
	  	Environmental Matters
	         5.11
	  	Taxes
	         5.13
	  	Subsidiaries
	         7.01
	  	Existing Liens
	         7.03(b)(i)
	  	Existing Indebtedness
	         7.03(b)(ii)
	  	Cross-Collateralized and Cross-Defaulted Indebtedness
	         7.11
	  	Mezzanine Indebtedness
	         10.02
	  	Administrative Agent’s Office; Certain Addresses for Notices

 EXHIBITS 

Form of 
  

			
	         A
	  	Revolving/Term Loan Notice
	         B
	  	Swing Line Loan Notice
	
        C-1
	  	Revolving Note
	
        C-2
	  	Swing Line Note
	
        C-3
	  	Term Loan Note
	         D
	  	Compliance Certificate
	         E
	  	Assignment and Assumption
	         F
	  	Guaranty
	         G
	  	Intra-Company Loan Subordination Agreement
	         H
	  	Joinder Agreement
	
        I-1
	  	Borrower Pledge Agreement
	
        I-2
	  	Non-Borrower Pledge Agreement
	
        
J-1 to J-4
	  	U.S. Tax Compliance Certificates

  

  

 SECOND AMENDED AND RESTATED SENIOR SECURED CREDIT AGREEMENT 

This SECOND AMENDED AND RESTATED SENIOR SECURED CREDIT AGREEMENT is entered into as of June 30, 2017, among APARTMENT INVESTMENT AND
MANAGEMENT COMPANY, a Maryland corporation (the “REIT”), AIMCO PROPERTIES, L.P., a Delaware limited partnership (“AIMCO”) and AIMCO/Bethesda HOLDINGS, INC., a Delaware corporation (“AIMCO/Bethesda”)
(the REIT, AIMCO and AIMCO/Bethesda, collectively referred to as the “Borrowers”), each Lender (as defined below) from time to time party hereto, and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent, Swing Line Lender and an
L/C Issuer, with reference to the following Recitals: 
 RECITALS 

WHEREAS, the Borrowers, the lenders from time to time party thereto and the Administrative Agent are party to that certain Amended and
Restated Senior Secured Credit Agreement, dated as of December 22, 2016 (the “Original Closing Date”) (as amended, amended and restated, supplemental or otherwise modified, if at all, immediately prior to the effectiveness of
this Agreement (as defined below), the “Existing Credit Agreement”); and 
 WHEREAS, Borrower, the Lenders party hereto on
the date hereof and the Administrative Agent desire to amend and restate the Existing Credit Agreement in its entirety, and the Lenders and the Administrative Agent are willing to do so upon the terms and subject to the conditions set forth herein.

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

“Act” has the meaning specified in Section 10.16. 

“Adjusted Tangible Net Worth” means, as of the date of determination, an amount equal to the sum of (a) Consolidated
Tangible Net Worth, plus (b) accumulated depreciation of the Borrowing Group on a consolidated basis, all in accordance with GAAP. 

“Adjusted Total EBITDA” means, for any period, an amount equal to (a) Total EBITDA, minus (b) the Capital
Expenditure Reserve as of the last day of such period. 
 “Adjusted Total NOI” means, for any period, an amount equal to
(a) Total Net Operating Income, minus (b) the Capital Expenditure Reserve as of the last day of such period. 

“Administrative Agent” means KeyBank, in its capacity as administrative agent under any of the Loan Documents, or any
successor administrative agent hereunder. 

 “Administrative Agent’s Office” means the Administrative Agent’s
address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify in writing to the Borrowers and the Lenders. 

“Administrative Questionnaire” means an Administrative Questionnaire in substantially the form supplied 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. In no event shall Administrative Agent or any Lender be deemed to be an Affiliate of any Borrower. 

“Aggregate Commitments” means the sum of (a) Aggregate Revolving Credit Commitments plus (b) the Aggregate
Term Loan Commitments. 
 “Aggregate Recourse Indebtedness” means, on any date of determination and without double
counting, the sum of (a) the Obligations, plus (b) the Borrowing Group’s Share of Recourse Indebtedness. 

“Aggregate Revolving Credit Commitments” means the Revolving Credit Commitments of all the Revolving Credit Lenders. The
Aggregate Revolving Credit Commitments on the Closing Date are $600,000,000. 
 “Aggregate Term Loan Commitments” means the
Term Loan Commitments of all the Term Loan Lenders. The Aggregate Term Loan Commitments on the Closing Date are $250,000,000. 

“Agreement” means this Second Amended and Restated Senior Secured Credit Agreement, as may be further amended, restated,
amended and restated, extended, supplemented or otherwise modified in writing from time to time. 
 “AIMCO” is defined in
the preamble to this Agreement. 
 “AIMCO/Bethesda” is defined in the preamble to this Agreement. 

“Applicable Capitalization Rate” means 6.00%. 

“Applicable Percentage” means, as of the date of determination: 

(a) with respect to a Revolving Credit Lender’s obligation to make Revolving Loans and right to receive payments of principal, interest,
fees, costs, and expenses with respect thereto, (i) prior to the Revolving Credit Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Revolving Credit Commitment, by
(z) the aggregate Revolving Credit Commitments of all Revolving Credit Lenders, and (ii) from and after the time that all Revolving Credit Commitments have been terminated or reduced to zero, the percentage obtained by dividing
(y) the aggregate outstanding principal amount of such Revolving Credit Lender’s Revolving Loans by (z) the aggregate outstanding principal amount of all Revolving Loans, 

  
 2 

 (b) with respect to a Revolving Credit Lender’s obligations to participate in Letters of
Credit and to reimburse the applicable L/C Issuer, and right to receive payments of fees with respect thereto, (i) prior to the Revolving Credit Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such
Revolving Credit Lender’s Revolving Credit Commitment, by (z) the aggregate Revolving Credit Commitments of all Revolving Credit Lenders, and (ii) from and after the time that the Revolving Credit Commitments have been terminated or
reduced to zero, the percentage obtained by dividing (y) the aggregate outstanding principal amount of such Revolving Credit Lender’s Revolving Loans by (z) the aggregate outstanding principal amount of all Revolving Loans, 

(c) with respect to a Revolving Credit Lender’s obligations to participate in Swing Line Loans and to reimburse the Swing Line Lender, and
right to receive payments with respect thereto, (i) prior to the Revolving Credit Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Revolving Credit Lender’s Revolving Credit Commitment, by
(z) the aggregate Revolving Credit Commitments of all Revolving Credit Lenders, and (ii) from and after the time that the Revolving Credit Commitments have been terminated or reduced to zero, the percentage obtained by dividing
(y) the aggregate outstanding principal amount of such Revolving Credit Lender’s Revolving Loans by (z) the aggregate outstanding principal amount of all Revolving Loans, 

(d) with respect to all other matters as to a particular Revolving Credit Lender (including the indemnification obligations arising under
Section 10.04), the percentage obtained by dividing (i) such Revolving Credit Lender’s Revolving Credit Commitment, by (ii) the aggregate amount of Revolving Credit Commitments of all Revolving Credit
Lenders; provided, however, that in the event the Revolving Credit Commitments have been terminated or reduced to zero, the Applicable Percentage under this clause (d) shall be the percentage obtained by dividing
(A) the outstanding principal amount of such Revolving Credit Lender’s Revolving Loans, plus such Revolving Credit Lender’s ratable portion of the outstanding Letters of Credit, plus such Revolving Credit
Lender’s ratable portion of the outstanding Swing Line Loans by (B) the aggregate principal amount of all outstanding Revolving Loans, plus the aggregate face amount of outstanding Letters of Credit, plus the principal
amount of outstanding Swing Line Loans, 
 (e) with respect to a Term Loan Lender’s obligation to make a Term Loan, the percentage
obtained by dividing (x) such Term Loan Lender’s Term Loan Commitment by (y) the Aggregate Term Loan Commitments at such time; and 

(f) with respect to a Term Loan Lender’s right to receive payments of principal, interest, fees, costs, and expenses with respect to Term
Loans and with respect to all other matters as to a particular Term Loan Lender (including the indemnification obligations arising under Section 10.04), the percentage obtained by dividing (x) the aggregate outstanding principal
amount of such Term Loan Lender’s Term Loans by (y) the aggregate principal amount of all outstanding Term Loans. 

  
 3 

 (g) The initial Applicable Percentage of each Lender is set forth opposite the name of such
Lender on Schedule 2.01A or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable. 

(h) The Applicable Percentages shall be subject to adjustment as provided in Section 2.15. 

“Applicable Rate” means, as of any date of determination, a percentage per annum determined by reference to the Credit Rating
Level as set forth below: 
  

																			
	 	  	 	  	Revolving Loans	 	 	Term Loans	 
	 Pricing Level
	  	 Credit Rating Level
	  	Eurodollar
Rate Loans &
Letters of
Credit Fees	 	 	Base Rate
Loans	 	 	Eurodollar
Rate
Loans	 	 	Base Rate
Loans	 
	 I
	  	Credit Rating Level 1	  	 	0.825	% 	 	 	0.0	% 	 	 	0.90	% 	 	 	0.0	% 
	 II
	  	Credit Rating Level 2	  	 	0.90	% 	 	 	0.0	% 	 	 	0.95	% 	 	 	0.0	% 
	 III
	  	Credit Rating Level 3	  	 	1.00	% 	 	 	0.0	% 	 	 	1.10	% 	 	 	0.10	% 
	 IV
	  	Credit Rating Level 4	  	 	1.20	% 	 	 	0.20	% 	 	 	1.35	% 	 	 	0.35	% 
	 V
	  	Credit Rating Level 5	  	 	1.55	% 	 	 	0.55	% 	 	 	1.75	% 	 	 	0.75	% 

 The Applicable Rate for each Base Rate Loan shall be determined by reference to the Credit Rating Level in
effect from time to time, and the Applicable Rate for any Interest Period for all Eurodollar Rate Loans comprising part of the same Borrowing shall be determined by reference to the Credit Rating Level in effect on the first day of such Interest
Period; provided, however, that (i) no change in the Applicable Rate resulting from the application of the Credit Rating Levels and no change in the Credit Rating Level shall be effective until the first Business Day after the
date on which the Administrative Agent receives written notice of the application of the Credit Rating Levels or written notice, pursuant to Section 6.03(e) or addressed to the Administrative Agent from the applicable Rating Agency, of a change
in such Credit Rating Level, or otherwise confirms such change through information made publicly available by such Rating Agency and (ii) during any period that the REIT or any Borrower ceases to have a Credit Rating Level, Credit Rating
Level 5 shall be the applicable Credit Rating Level. 

  
 4 

 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 2.10(b). 
 “Approved Fund” means any
Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the
consent of any party whose consent is required by Section 10.06(b)), and accepted by the Administrative Agent which acceptance will not be unreasonably withheld or delayed, in substantially the form of Exhibit E or any
other form approved by the Administrative Agent. 
 “ASU 2016-02” has the meaning
specified in the definition of “Indebtedness”. 
 “Attributable Indebtedness” means, on any date, in respect of
any capital 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. 

“Audited Financial Statements” means the audited consolidated balance sheet of the REIT for the fiscal year ended
December 31, 2016, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the REIT, including the notes thereto. 

“Availability Period” means, with respect to Revolving Loans and Swing Line Loans, the period from and including the Closing
Date to the earliest of (a) the Revolving Credit Maturity Date, (b) the date of termination of all of the Revolving Credit Commitments pursuant to Section 2.06, and (c) the date of termination of the commitment of each Revolving
Credit Lender to make Revolving Loans and of the obligation of the L/C Issuers to make L/C Credit Extensions pursuant to Section 8.02. 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the
applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution. 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing
Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In
Legislation Schedule. 
 “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 KeyBank as its “prime rate,” and (c) the Eurodollar Rate applicable to a Loan with a one month
Interest Period plus 1%. The “prime rate” is a rate set by KeyBank based upon various factors including KeyBank’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 below such announced rate. Any change in such rate announced by KeyBank shall take effect at the opening of business on the day specified in the public announcement of such change. 

  
 5 

 “Base Rate Loan” means a Revolving Loan and/or a Term Loan that bears interest
based on the Base Rate. 
 “Borrower Information” has the meaning specified in Section 2.10(b). 

“Borrower Materials” has the meaning specified in Section 6.02(h). 

“Borrowers” has the meaning specified in the preamble to this Agreement. Any reference to Borrowers herein shall be deemed to
refer to each Person constituting Borrowers, and the responsibilities, obligations and covenants of each such Person under this Agreement and the other Loan Documents shall be joint and several unless expressly stated otherwise herein or the context
otherwise requires; provided, however, that the obligations of Borrowers with respect to delivery of reports, financial statements and certifications may be performed by AIMCO for or on behalf of any or all of the Borrowers, as
applicable. 
 “Borrowing” means a Revolving Borrowing, a Swing Line Borrowing or a Term Loan Borrowing, as the context may
require. 
 “Borrowing Group” means the Borrowers and all of their respective Subsidiaries. 

“Borrowing Group’s Share” means, with respect to any item (including by way of example and not of limitation,
Indebtedness, EBITDA, Net Income, Net Operating Income, Interest Expense or Scheduled Amortization) of the Borrowing Group, its allocable pro rata share (which share, for example, would be 100% in the case of a Borrower or 60% in the case of a
Subsidiary in which a Borrower owns 60% of the Equity Interests and/or is allocated 60% of the applicable item) of the applicable item based on the Borrowing Group’s aggregate percentage ownership interest in items of income or loss of such
Person consistent with that used in the preparation of the REIT’s financial statements; provided, that, if the percentage ownership used in the preparation of the REIT’s financial statements does not, in the good faith judgment of
the Borrowers, accurately reflect the Borrowing Group’s share of Indebtedness, EBITDA, Net Income, Net Operating Income, Interest Expense, Scheduled Amortization and other similar items, then such items may be adjusted by the Borrowers subject
to disclosure to and approval by the Administrative Agent. 
 “Bottom Tier Subsidiary” has the meaning specified in
Section 6.12(a). 
 “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 of the United States where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan, means any such day on which dealings in
Dollar deposits are conducted by and between banks in the London interbank eurodollar market. 
 “Capital Expenditure
Reserve” means, as of any date of determination, the product of (a) $350 per annum and (b) the Borrowing Group’s Share of apartment units owned as of such date of determination; provided, however, that an apartment
unit shall be excluded from the foregoing calculation if, at the date of determination, a mortgage lender with respect to such apartment unit holds a funded reserve for future capital improvements for such apartment unit. 

  
 6 

 “Capital Expenditures” means, for any period and with respect to any Person, the
aggregate of all expenditures by such Person for the acquisition or leasing of fixed or capital assets or additions to equipment or property (including replacements, capitalized repairs and improvements during such period but excluding Capital
Improvements, Construction/Renovation and Moderate Redevelopment) which should be capitalized under GAAP on a consolidated balance sheet of such Person. For the purpose of this definition, the purchase price of assets or additions to equipment or
property which is purchased substantially simultaneously with the trade-in of existing assets or additions to equipment or property owned by such Person or with insurance proceeds shall be included in
“Capital Expenditures” only to the extent of the gross amount of such purchase price, less the credit granted by the seller of such asset, addition to equipment or property for such asset, addition to equipment or property being traded in
at such time, or the amount of such proceeds, as the case may be. 
 “Capital Improvements” means all development capital
expenditures that are made to enhance the value or profitability of an asset from its original purchase condition. 
 “Capital
Replacements” means, for any period and with respect to any Person, the Borrowing Group’s Share of capital additions that are deemed to replace the portion of acquired capital assets (excluding capital additions for casualties,
accidents and redevelopment and the Borrowing Group’s Share of capital additions that are made to enhance the value, profitability or useful life of an asset as compared to its original purchase condition) that was consumed in the ordinary
course of business during the period that such Person owned such asset. 
 “Cash” means money, currency or a credit balance
in any demand, time, savings, passbook or like account with a bank, savings and loan association, credit union or like organization, other than an account evidenced by a negotiable certificate of deposit. 

“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the
Administrative Agent, any L/C Issuer or the Swing Line Lender (as applicable) and the Revolving Credit Lenders, as collateral for L/C Obligations, Obligations in respect of Swing Line Loans or obligations of Revolving Credit Lenders to fund
participations in respect of either thereof (as the context may require), cash or deposit account balances, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent and any L/C Issuer or the Swing Line
Lender (as applicable) (which documents are hereby consented to by the Revolving Credit Lenders); it being understood and agreed that the amount of Cash Collateral required to be provided hereunder by the Borrowers with respect to any Letter of
Credit or Swing Line Loan shall not exceed 103% of the face amount of such Letter of Credit or the principal amount of such Swing Line Loan, as applicable. “Cash Collateral” shall have a meaning correlative to the foregoing and
shall include the proceeds of such cash collateral and other credit support. 

  
 7 

 “Cash Equivalents” means: 

(a) securities issued or fully guaranteed or insured by the United States Government or any agency thereof and backed by the full faith and
credit of the United States having maturities of not more than twelve (12) months from the date of acquisition or roll-over; 

(b) certificates of deposit, time deposits, demand deposits, eurodollar time deposits, repurchase agreements, reverse repurchase agreements, or
bankers’ acceptances, having in each case a term of not more than six (6) months, issued by (x) Administrative Agent or any Lender or (y) any U.S. commercial bank (or any branch or agency of a non-U.S. bank licensed to
conduct business in the U.S.) having membership in the FDIC, combined capital and surplus of not less than $100,000,000 and whose short-term securities are rated at least A-1 by S&P and P-1 by Moody’s (determined, for purposes of this
clause (b) only, at the time of acquisition or roll-over); 
 (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody’s and in either case having a term of not more than three (3) months (determined, for purposes of this clause (c) only,
at the time of acquisition or roll-over); 
 (d) securities rated at least A by S&P or A2 by Moody’s and in either case having
maturities of not more than twelve (12) months from the date of acquisition (determined, for purposes of this clause (d) only, at the time of acquisition or roll-over); and 

(e) money market funds which invest substantially all of their assets in securities of the types described in clauses (a) through (d)
above. 
 “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 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. The Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, publications, orders, guidelines and
directives thereunder or issued in connection therewith and 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 be deemed to have been adopted and gone into effect after the date of this Agreement regardless of when adopted, enacted 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 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 (such right, an “option right”), whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 33- 1⁄3% of the common shares of the REIT 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 

  
 8 

 (b) during any period of 12 consecutive months, a majority of the members of the board of
directors of the REIT cease to be composed of individuals (i) who were members of that board on the first day of such period, (ii) whose election or nomination to that board was approved by individuals referred to in clause
(i) above constituting at the time of such election or nomination at least a majority of that board or (iii) whose election or nomination to that board was approved by individuals referred to in clauses (i) and
(ii) above constituting at the time of such election or nomination at least a majority of that board. 
 Notwithstanding the foregoing,
“option right” shall not include any common shares which any person or group has a right to acquire as a result of a merger or acquisition agreement, until such right is exercised, at which time “option right” shall include the
common shares with respect to which such right was exercised. 
 “Closing Date” means the first date all the conditions
precedent in Section 4.01 are satisfied or waived in accordance with Section 10.01, which date is June 30, 2017. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

“Collateral” means the collateral pledged to the Administrative Agent for the ratable benefit of the Lenders pursuant to the
Pledge Agreements. 
 “Commitment” means, as to each Lender, such Lender’s Revolving Credit Commitment and/or Term
Loan Commitment. 
 “Compliance Certificate” means a certificate substantially in the form of
Exhibit D. 
 “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 Tangible Net
Worth” means, as of any date of determination, for the REIT on a consolidated basis, (a) shareholders’ equity in respect of the REIT on that date, minus (b) the Intangible Assets of the Borrowing Group on that date.

 “Construction/Renovation” means the Borrowing Group’s Share of any New Construction or any substantial
rehabilitation, redevelopment, renovation and/or expansion of any multi-family property which, in the case of rehabilitation, redevelopment, renovation or expansion, involves the repositioning or upgrading of such multi-family property with respect
to comparable multi-family properties located in the proximate geographic area, excluding any Moderate Redevelopment. The Borrowing Group’s Share of properties under Construction/Renovation as of the Closing Date are listed on Schedule
1.01C attached hereto. 

  
 9 

 “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. 

“Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit Extension. 

“Credit Rating” means, as of any date of determination, the highest of the credit ratings (or their equivalents) then
assigned to the REIT’s or a Borrower’s long-term senior unsecured non-credit enhanced debt by any of the Rating Agencies. For purposes herein, the credit ratings described in each respective Credit
Rating Level are deemed equivalent. If the REIT or a Borrower shall have obtained a credit rating from at least two of the Rating Agencies, the highest of the credit ratings shall control, provided that the next highest credit rating is only one
level below that of the highest credit rating. If the next highest credit rating is more than one level below that of the highest credit rating, the operative credit rating would be deemed to be one rating level lower than the highest credit rating.
If the REIT or a Borrower shall have obtained a credit rating from two or more of the Rating Agencies and shall thereafter lose all such credit ratings (whether as a result of a withdrawal, suspension, election to not obtain a rating, or otherwise)
from the Rating Agencies, or if the only credit rating the REIT or a Borrower shall have is provided by Fitch, the REIT or such Borrower, as applicable, shall be deemed for the purposes hereof not to have a credit rating. If at any time two or more
of the Rating Agencies shall no longer perform the functions of a securities rating agency, then the Borrowers and the Administrative Agent shall promptly negotiate in good faith to agree upon a substitute rating agency or agencies (and to correlate
the system of ratings of each such substitute rating agency with that of the rating agency being replaced) and, pending such amendment, the Credit Rating of the other of the Rating Agencies, if one has been provided, shall continue to apply. 

“Credit Rating Level” means one of the following five pricing levels, as applicable: 

“Credit Rating Level 1” means the Credit Rating Level which would be applicable for so long
as the Credit Rating is greater than or equal to A- by S&P or Fitch or A3 by Moody’s; 

“Credit Rating Level 2” means the Credit Rating Level which would be applicable for so long
as the Credit Rating is greater than or equal to BBB+ by S&P or Fitch or Baa1 by Moody’s and Credit Rating Level 1 is not applicable; 

“Credit Rating Level 3” means the Credit Rating Level which would be applicable for so long
as the Credit Rating is greater than or equal to BBB by S&P or Fitch or Baa2 by Moody’s and Credit Rating Levels 1 and 2 are not applicable; 

  
 10 

 “Credit Rating Level 4” means the Credit
Rating Level which would be applicable for so long as the Credit Rating is greater than or equal to BBB- by S&P or Fitch or Baa3 by Moody’s and Credit Rating Levels 1, 2 and 3 are not applicable; and

 “Credit Rating Level 5” means the Credit Rating Level which would be applicable for so
long as the Credit Rating is less than BBB- by S&P or Fitch or Baa3 by Moody’s or there is no Credit Rating. 

“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. 
 “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 highest Applicable Rate (regardless of the then applicable Credit Rating Level) applicable to Base Rate
Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to (i) the Eurodollar Rate plus (ii) the highest Applicable Rate
(regardless of the then applicable Credit Rating Level) applicable to Eurodollar Rate Loans plus 2% per annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the highest Applicable Rate (regardless of the then
applicable Credit Rating Level) applicable to Letters of Credit plus 2% per annum. 
 “Defaulting Lender” means,
subject to Section 2.15(b), any Lender that (a) has failed to fund any portion of the Loans, participations in L/C Obligations or participations in Swing Line Loans required to be funded by it hereunder within one (1) Business Day of
the date required to be funded by it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one (1) Business Day of the date when due,
unless the subject of a good faith dispute, (c) any L/C Issuer has a good faith belief that such Lender has defaulted in fulfilling its obligations under one or more other syndicated credit facilities (and in such other credit facilities such
Lender is currently being treated as a defaulting or otherwise impacted lender), (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had a receiver,
conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or a custodian appointed for it, (iii) taken any action in furtherance of, or indicated its
consent to, approval of or acquiescence in any such proceeding or appointment or (iv) become the subject of a Bail-In Action; provided, that, a Lender shall not be a Defaulting Lender solely by
virtue of the ownership or acquisition of any Equity Interests 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) to reject, repudiate, disavow or disaffirm any contracts or

  
 11 

 
agreements made with such Lender, or (e) has failed, within three (3) Business Days after written request by the Administrative Agent or any Borrower, to confirm in writing to the
Administrative Agent and the Borrowers 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 (e) upon receipt of such written
confirmation by the Administrative Agent and the Borrowers). No Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent under this Agreement (and the portion of the Total Outstandings held or deemed held by
any Defaulting Lender shall be excluded in determining if any required approval or consent of the Lenders has been obtained), except that the Commitment of such Defaulting Lender may not be increased or extended without the consent of such
Defaulting Lender (subject to Sections 2.16 and 2.17). 
 “Designated Person” has the meaning specified in
Section 5.18. 
 “Development Assets” means, as of any date of determination, raw land, vacant out parcels or real
property or any portion thereof owned by a Person and which, as of such date, is in whole or material part the subject of Construction/Renovation; provided, that such real property or any portion thereof will be included in
“Development Assets” only until the earlier of (a) the date on which the property or any portion thereof achieves a stabilized occupancy level of at least 85% for the most recent complete quarter, and (b) six months after
the date of completion of Construction/Renovation such that the property or any portion thereof may legally be occupied for its intended purpose. 

“Directions” has the meaning specified in Section 9.11(a). 

“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale
and leaseback transaction and dispositions due to casualty or condemnation) of any property by any Person, 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. 

“EBITDA” means, for any period and for any Person, an amount equal to such Person’s Net Income for such period
plus (a) the following, to the extent deducted in calculating such Net Income: (i) such Person’s Interest Expense plus other costs related to amortization of fees and expenses relating to the issuance of indebtedness for such
period, (ii) the provision for Federal, state and local income taxes payable by such Person for such period, (iii) such Person’s depreciation and amortization expense for such period, (iv) other
non-cash expenses of such Person reducing such Net Income for such period which do not represent a cash item in such period or any future period and (v) restructuring, severance, reserves or similar
charges for any such period and minus (b) the following to the extent included in calculating such Net Income: (i) Federal, state and local income tax credits of the Person for such period and (ii) all non-cash items increasing such Person’s Net Income for such period, excluding non-cash items for which cash was received in a prior period or will be received in a future
period. EBITDA shall be calculated on a pro forma basis to give effect to the Specified Acquisition, as if the Specified Acquisition was consummated on the first day of the applicable period, based on the actual results of the assets subject
to the Specified Acquisition during the applicable period. 

  
 12 

 “EEA Financial Institution” means (a) any credit institution or investment
firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this
definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway. 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative
authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 

“Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any
other Person (other than a natural person, or holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person) approved by (i) the Administrative Agent and (ii) unless an Event of
Default has occurred and is continuing, the Borrowers (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrowers or any of the
Borrowers’ Affiliates or Subsidiaries. 
 “Environmental Laws” means any and all Federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, 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” means any liability, contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), of the Borrowers, any other Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the
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 into the environment or
(e) any contract, agreement or other consensual arrangement by any Loan Party pursuant to which liability is assumed or imposed with respect to any of the foregoing. 

“Equity Interest” means, with respect to any Person, shares of capital stock of (or other ownership or profit interests in)
such Person, 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, 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 other 

  
 13 

 
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. Convertible debt shall not constitute an Equity Interest unless and until such debt is converted into the applicable underlying securities. 

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

“ERISA Affiliate” means any trade or business (whether or not incorporated) which, together with the Borrowers, is treated as
a single employer for purposes 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) a withdrawal by the Borrowers 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 Borrowers 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 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; or (f) the imposition of any material liability under Title IV of ERISA,
other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrowers or any ERISA Affiliate. 

“EU Bail-In Legislation Schedule” means the EU
Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time. 

“Eurodollar Rate” means, 

(a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the average rate (rounded to the nearest whole
multiple of 1/100 of 1%) as shown in Reuters Screen LIBOR 01 Page (or any successor service or, if such Person no longer reports such rate as determined by Administrative Agent, by another commercially available source providing such quotations
approved by Administrative Agent) at which Dollar deposits are offered by first class banks in the London interbank market at approximately 11:00 a.m. (London time) on the day that is two (2) Business Days prior to the first day of such
Interest Period with a maturity approximately equal to such Interest Period and in an amount approximately equal to the amount to which such Interest Period relates; and 

  
 14 

 (b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum
equal to the average rate (rounded to the nearest whole multiple of 1/100 of 1%) as shown in Reuters Screen LIBOR 01 Page (or any successor service or, if such Person no longer reports such rate as determined by Administrative Agent, by another
commercially available source providing such quotations approved by Administrative Agent) at which Dollar deposits are offered by first class banks in the London interbank market at approximately 11:00 a.m. (London time) on the day that is two
(2) Business Days prior to the first day of such Interest Period with a maturity of one month commencing that day and in an amount approximately equal to the amount of the Base Rate Loan being made, continued or converted by KeyBank or
such other amount as reasonably determined by the Administrative Agent. 
 Notwithstanding the foregoing, if at any time the Eurodollar Rate
determined as provided above is less than zero percent (0%), such rate shall be deemed to be zero percent (0%) for purposes of this Agreement. 

“Eurodollar Rate Loan” means a Loan that bears interest at a rate based on the Eurodollar Rate. 

“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 a 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 applicable 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 Borrowers under Section 10.13) or (ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to
Section 3.01, 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 to such Recipient’s failure to comply with Section 3.01(e), and (d) any U.S. federal withholding Taxes imposed under FATCA. 

“Existing Credit Agreement” has the meaning specified in the recitals to this Agreement. 

“Existing Letters of Credit” means the letters of credit set forth on Schedule 1.01E. 

“Existing Note” means a Note (as defined in the Existing Credit Agreement) that is issued and outstanding immediately prior
to the effectiveness of this Agreement. 
 “Existing Revolving Credit Lenders” means the “Lenders” under and as
defined in the Existing Credit Agreement. 

  
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 “Existing Revolving Loan” has the meaning specified in Section 2.01(a).

 “Extension Request” has the meaning specified in Section 2.16(a). 

“Facility Fee” has the meaning specified in Section 2.09(b). 

“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 intergovernmental agreements (and related legislation, administrative rules or official
interpretations thereof) related thereto and any agreements entered into pursuant to Section 1471(b)(1) of the Code. 

“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 immediately 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 KeyBank on such day on such transactions as determined by the
Administrative Agent. Notwithstanding the foregoing, if the Federal Funds Rate determined as provided above shall be less than zero percent (0%), such rate shall be deemed to be zero percent (0%) for the purposes of this Agreement. 

“Fee Letter” means the letter agreements, (i) dated November 21, 2016, among the REIT, the Administrative Agent,
KeyBanc Capital Markets, Wells Fargo and Wells Fargo Securities, (ii) dated June 15, 2017, among the Borrowers, the Administrative Agent, KeyBanc Capital Markets, Wells Fargo, Wells Fargo Securities, PNC and PNC Capital Markets LLC and
(iii) dated November 22, 2016, among the REIT, PNC and PNC Capital Markets LLC (provided that Administrative Agent shall not be required to monitor compliance or enforce the terms of the fee letter described in this clause (iii) or
have any responsibility or liability with respect thereto). 
 “Fitch” means Fitch Ratings, Inc. and any successor thereto.

 “Fixed Charge Coverage Ratio” means, as of any date of determination, the ratio of (a) Adjusted Total EBITDA for
the four fiscal quarter period ending on such date to (b) Fixed Charges for such period. 
 “Fixed Charges” means, for
any period, the sum of (i) Total Interest Expense for such period, plus (ii) Total Scheduled Amortization for such period (without double counting amounts funded with reserve accounts or sinking funds if already taken into account
in determining Fixed Charges for such period or any prior period), plus (iii) dividends accrued (whether or not declared or payable) on any shares of preferred Stock and/or preferred Partnership Units of the Borrowers or any of their
Subsidiaries outstanding during such period, which preferred securities are owned at any time during such period by Persons other than the Borrowers and their Subsidiaries. 

  
 16 

 “Foreign Lender” means a Lender that is not a U.S. Person. 

“FRB” means the Board of Governors of the Federal Reserve System of the United States. 

“Free Cash Flow” means, for any period of determination, an amount equal to the Borrowing Group’s Share of EBITDA for
such period, minus the Borrowing Group’s Share of the following for such period: (i) Capital Replacements, (ii) Fixed Charges and (iii) the amount of the minimum required dividends for the REIT to maintain its REIT Status. 

“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to an L/C Issuer, such Defaulting
Lender’s Applicable Percentage of the outstanding L/C Obligations with respect to Letters of Credit issued by such L/C Issuer other than L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to
other Revolving Credit 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 Revolving Credit Lenders or Cash Collateralized in accordance with the terms hereof. 

“Fronting Fee” has the meaning specified in Section 2.03(j). 

“Fund” means any Person (other than a natural person, or a holding company, investment vehicle or trust for, or owned and
operated for the primary benefit of, 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 business. 

“Funded Indebtedness” means, as of any date of determination, for any Person, the sum of (a) the outstanding principal
amount of all obligations, whether current or long-term, for borrowed money (including Obligations hereunder) and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments (other than surety bonds and bonds
supporting utility deposits or other comparable security deposits), (b) all purchase money Indebtedness, (c) all direct obligations arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties,
and similar instruments, (d) all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business), (e) Attributable Indebtedness in respect of capital lease
obligations, (f) without duplication, all Guarantees with respect to outstanding Indebtedness of the types specified in clauses (a) through (e) above, and (g) all Indebtedness of the types referred to in clauses (a) through (f)
above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person or its Subsidiary is a general partner or joint venturer with liability for joint venture
obligations, unless such Indebtedness is expressly made not Recourse to the Person or such Subsidiary; provided, however, that solely for purposes of Sections 7.03(g) and 7.11 and the definitions relating to calculations of financial
covenants contained therein, “Funded Indebtedness” shall exclude Intra-Company Debt, deferred income taxes, security deposits, accounts payable and accrued liabilities and any prepaid rent (as and to the extent such terms are defined under
GAAP). 

  
 17 

 “Funds From Operations” means, with respect to Borrowers and their Subsidiaries
on a consolidated basis, net income calculated in accordance with GAAP, excluding gains or losses from debt restructuring and sales of depreciable property, plus depreciation and amortization (excluding amortization of financing costs), and after
adjustments for unconsolidated partnerships and joint ventures (with adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis) and the payment of dividends on preferred Stock, as
interpreted by the National Association of Real Estate Investment Trusts in its April 1, 2002, White Paper; provided, however, the following shall be excluded when calculating “Funds From Operations”: (i) non-cash adjustments for preferred Stock issuance costs, (ii) non-cash adjustments for loan amortization costs and
(iii) non-cash adjustments for impairment losses on real estate development assets, net of any Tax benefit. Funds From Operations shall be determined on a pro forma basis to give effect to the
Specified Acquisition, as if the Specified Acquisition was consummated on the first day of the applicable period, based on the actual results of the assets subject to the Specified Acquisition during the applicable period. 

“Future Redevelopment” has the meaning specified in the definition of “Gross Asset Value”. 

“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 

“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining
to government (including any supra-national bodies such as the European Union or the European Central Bank). 
 “Granting
Lender” has the meaning specified in Section 10.06(h). 
 “Gross Asset Value” means, as of any date of
determination and without double counting any item, the sum of the Borrowing Group’s Share of the following: 
 (i) Cash (including
Restricted Cash but excluding any Cash held in funds for Capital Expenditures and excluded in the determination of Capital Expenditure Reserve as provided in the definition thereof, and funds held in sinking funds or interest reserves), and Cash
Equivalents; 

  
 18 

 (ii) Notes Receivable valued at net realizable value as of such date of determination in
accordance with GAAP; 
 (iii) with respect to all real estate assets wholly or partially owned by such Person(s) throughout the most recent
four fiscal quarters ending on or prior to such date of determination (other than Development Assets), the Adjusted Total NOI attributable to such real estate assets for such four quarter period divided by the Applicable Capitalization Rate; 

(iv) with respect to all real estate assets wholly or partially owned on such date of determination, but acquired less than four fiscal
quarters but at least one fiscal quarter preceding such date of determination (other than Development Assets and other than real estate assets for which Gross Asset Value is determined pursuant to clause (vii) of this definition), the
Adjusted Total NOI attributable to such real estate assets for any period that such Person(s) owned such assets measured on an annualized basis and divided by the Applicable Capitalization Rate; 

(v) with respect to all real estate assets wholly or partially owned on such date of determination, but acquired less than one fiscal quarter
preceding such date of determination (other than Development Assets), 100% of the purchase price paid by such Person(s) for such assets; 

(vi) 100% of the book value (determined in accordance with GAAP) of Development Assets and Unimproved Land owned as of such date of
determination; 
 (vii) with respect to real estate assets wholly or partially owned on such date of determination, that were previously
considered Development Assets but have achieved at least 85% occupancy (“Stabilized Occupancy”) for at least one complete fiscal quarter within the most recent four fiscal quarters ending on or prior to such date of determination,
the Adjusted Total NOI attributable to each such real estate asset calculated by annualizing the complete fiscal quarter(s) of Adjusted Total NOI after achieving Stabilized Occupancy (including, for the avoidance of doubt, the first complete fiscal
quarter of Stabilized Occupancy for such asset), and dividing such Adjusted Total NOI (as so annualized to the extent less than four complete fiscal quarters have elapsed following the achievement of Stabilized Occupancy) by the Applicable
Capitalization Rate (until there are four such complete fiscal quarters, at which time Adjusted Total NOI attributable to such asset shall be determined according to the most recently completed four quarters), it being understood and agreed that, if
Stabilized Occupancy is achieved during a period for which there is not a complete fiscal quarter of Adjusted Total NOI for any such real estate asset, such real estate asset shall continue to be valued as a Development Asset; 

(viii) an amount equal to 400% of the aggregate EBITDA attributable to, without duplication, property and asset management fees of the
Borrowing Group for the four consecutive fiscal quarter period preceding such date of determination; and 

  
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 (ix) 100% of the book value (determined in accordance with GAAP) of the Permitted Junior Loans
and Permitted Mortgage Certificates owned as of such date of determination; provided that, notwithstanding the foregoing, the book value of any such Permitted Junior Loans or Permitted Mortgage Certificates shall be $0.00 in the event
(x) there exists, as of such date, any payment default under, or event of default or other event which would permit the acceleration of, such Permitted Junior Loans or Permitted Mortgage Certificates or (y) of the occurrence of any
event or circumstance relating to any such Permitted Junior Loan or Permitted Mortgage Certificate which results in the modification of the payment “waterfall” provided for in the documentation underlying or relating to such Permitted
Junior Loan or Permitted Mortgage Certificate that would otherwise be in effect absent such event or circumstance, which modification results in such Permitted Junior Loan or Permitted Mortgage Certificate receiving reduced or modified payments or
otherwise being locked out from receiving any cash flow. 
 For purposes of this definition, (A) if the Borrowing Group’s Share of Investments in Non-Core Assets has an aggregate book value that exceeds 7.5% of the Gross Asset Value then in effect, (B) if the Borrowing Group’s Share of Investments in Development Assets has an aggregate book value
that exceeds 15% of the Gross Asset Value then in effect, (C) if the Borrowing Group’s Share of Investments in Non-Controlled Entities has an aggregate net book value (valued at the Borrowing
Group’s Share of the book value less depreciation and associated Indebtedness) that exceeds 20% of the Gross Asset Value then in effect or (D) the Borrowing Group’s Share of Investments in
Non-Core Assets, Development Assets and Non-Controlled Entities exceeds in the aggregate 25% of the Gross Asset Value then in effect, then in each case (and without
duplication) such excess shall be excluded from the calculation of Gross Asset Value. Notwithstanding the foregoing, for purpose of calculating Gross Asset Value, any income producing property that is a multi-unit phased development property as to
which Construction/Renovation (other than New Construction) is (or will be, as to any Future Redevelopment (as defined below)) ongoing (“Redevelopment”) with respect to only a portion of the buildings on such property, which
Redevelopment (x) does not impact the leasing, occupancy or rental rates of the balance of such property not under Redevelopment, (y) is being undertaken with respect to the entirety of a particular tower or building of such project, and
(z) is being diligently pursued to completion as to any portion of such tower or building for which Redevelopment has commenced (any such real estate asset meeting the foregoing requirements, including the portion undergoing Redevelopment and
the portion not undergoing Redevelopment, a “Partial Redevelopment Asset”), the following shall apply: 
 (1) that portion
of the Partial Redevelopment Asset that is not undergoing Redevelopment (other than any Future Redevelopment) will be included under clause (iii) or (iv) of this definition, as applicable, with the Adjusted Total NOI attributable to such
portion being based on the percentage that the Adjusted Total NOI attributable to the portion of the Partial Redevelopment Asset that is not undergoing Redevelopment bears to the Adjusted Total NOI for the entire Partial Redevelopment Asset;
provided that any portion of operating expenses applicable to the entire Partial Redevelopment Asset shall be adjusted to reflect those expenses (such as Taxes) allocable to the entire property, which allocation shall be done in a manner
reasonably satisfactory to the Administrative Agent; and 

  
 20 

 (2) that portion of the Partial Redevelopment Asset that (I) has an occupancy level of less
than 85% for the most recent complete quarter and as to which the Borrowers have provided written evidence satisfactory to the Administrative Agent that such other portion has been designated to undergo Redevelopment (a “Future
Redevelopment”), which evidence may include such portions of the asset being added to or selected for inclusion as a property “Under Redevelopment” on a “Supplemental Schedule 10” to the REIT’s quarterly earnings
reports (and, to the extent any such Future Redevelopment has not yet been added to such “Supplemental Schedule 10”, such Future Redevelopment shall have been identified as such in a Compliance Certificate delivered pursuant to this
Agreement), or (II) is undergoing Redevelopment, will be included under clause (vi) of this definition; provided that the book value of any such portion of a Partial Redevelopment Asset that is undergoing Redevelopment or is a
Future Redevelopment shall be determined by allocating a portion of the book value for the Partial Redevelopment Asset (determined in all cases without regard to any costs for Redevelopment previously done to any portion of such Partial
Redevelopment Asset) to the Redevelopment based on the percentage that the Adjusted Total NOI attributable to the Redevelopment before such portion of the property become subject to Redevelopment bears to the Adjusted Total NOI for the entire
Partial Redevelopment Asset at the time such portion of the property become subject to Redevelopment. 
 “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 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, (ii) to purchase or lease
property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness of the payment or performance of such Indebtedness, (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 (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such
Indebtedness 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 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. 
 “Guarantor”
means each Subsidiary of any Borrower that has previously executed and delivered a counterpart of any Guaranty or executes and delivers a counterpart of any Guaranty on the Closing Date or from time to time thereafter pursuant to Section 6.12,
in each case, unless and until such Person ceases to be a Guarantor in accordance with the Loan Documents, and collectively are referred to herein as the “Guarantors”. The Guarantors as of the Closing Date are set forth on
Schedule 1.01G attached hereto. 
 “Guaranty” means the Amended and Restated Guaranty made by the
Guarantors in favor of the Administrative Agent and the Lenders, substantially in the form of Exhibit F. 

  
 21 

 “Hazardous Materials” means all explosive or radioactive substances or wastes
and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances
or wastes of any nature regulated pursuant to any Environmental Law. 
 “Honor Date” is defined in Section 2.03(c)(i).

 “Increase Effective Date” is defined in Section 2.17(a)(iv). 

“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 (other than surety bonds and bonds supporting utility deposits or other comparable security deposits); 

(b) all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties and similar instruments; 
 (c) net obligations of such Person under any Swap Contract; 

(d) all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the
ordinary course of business); 
 (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) capital lease obligations of such Person; 

(g) all obligations of such Person (other than Qualified Redemption Obligations) to purchase, redeem, retire or defease any Equity Interest in
such Person, valued, in the case of a redeemable preferred interest, at the liquidation preference plus accrued and unpaid dividends; and 

(h) all Guarantees of such Person in respect of Indebtedness of others of the type referred to in any of the foregoing clauses
(a) through (g). 
 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 with liability for joint venture obligations, unless such Indebtedness is expressly
made non-recourse to such Person. The amount of any net obligation under any Swap Contract on any 

  
 22 

 
date shall be deemed to be the Swap Termination Value thereof as of such date. Subject to the following sentence and Section 1.03(c), the amount of any capital lease as of any date shall be
deemed to be the amount of Attributable Indebtedness in respect thereof as of such date. Solely for purposes of (i) Sections 7.03(g) and 7.11 and the definitions relating to calculations of financial covenants referenced or contained therein,
“Indebtedness” shall exclude Intra-Company Debt, deferred income taxes, security deposits, accounts payable and accrued liabilities and any prepaid rent (as such terms are defined under GAAP) and (ii) Sections 7.03(g) and 7.11
and the definitions relating to calculations of financial covenants referenced or contained therein, and any other ratio or term of an accounting or financial nature, “Indebtedness” shall exclude the effect of the adoption of
Accounting Standards Update No. 2016-02 by the Financial Accounting Standards Board in February 2016 (“ASU 2016-02”) such that capital lease
obligations and “Indebtedness” shall specifically exclude liabilities that were considered operating lease liabilities under GAAP prior to the adoption of ASU 2016-02. 

“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 Borrower or any Guarantor under any Loan Document and (b) to the extent not otherwise described in the immediately preceding clause (a), Other Taxes. 

“Indemnitee” has the meaning specified in Section 10.04(b). 

“Initial Term Loan Maturity Date” means June 30, 2018. 

“Intangible Assets” means assets that are considered to be intangible assets under GAAP, including customer lists, goodwill,
computer software, copyrights, trade names, trademarks, patents, franchises, licenses, unamortized deferred charges, unamortized debt discount and capitalized research and development costs, but only to the extent such intangible assets are material
or separately and distinctly identified in a line item on the REIT’s balance sheet. 
 “Interest Expense” means, for
any Person and for any period, without duplication, the sum of (x) gross interest expense paid, incurred or accrued during such period by such Person (including all commissions, discounts, fees and other charges in connection with standby
letters of credit and similar instruments), including capitalized interest, plus (y) the portion of the upfront costs and expenses for Swap Contracts relating to interest rate hedges entered into by such Person (to the extent not
included in gross interest expense) fairly allocated to such Swap Contracts as expenses for such period, as determined for such Person in accordance with GAAP, provided, that, included in Interest Expense will be all interest expense accrued
by Borrowers and their respective Subsidiaries during such period, even if not payable on or before the Revolving Credit Maturity Date or Term Loan Maturity Date, and excluded from Interest Expense will be all amortization of costs for the issuance
of debt and interest accrued under any Intra-Company Debt and all upfront fees, arrangement fees, commitment fees, commissions and similar charges associated with the issuance of Indebtedness. 

  
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 “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 (x) as to any Base Rate Loan that is a Revolving Loan, the Revolving Credit Maturity Date and (y) as to any Base Rate Loan that is a Term Loan, the Term Loan Maturity
Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates;
and (b) as to any (x) Base Rate Loan (including a Swing Line Loan) that is a Revolving Loan, the last Business Day of each calendar month and the Revolving Credit Maturity Date and (y) Base Rate Loan that is a Term Loan, the last
Business Day of each calendar month and the Term Loan Maturity Date. 
 “Interest Period” means, as to each Eurodollar Rate
Loan, the period commencing on the date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one, two, three or six months thereafter, as selected by the Borrowers in their applicable
Revolving/Term Loan Notice; provided that: 
 (i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the immediately preceding Business Day; 

(ii) 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 

(iii) no Interest Period shall (x) extend beyond the Revolving Credit Maturity Date with respect to any Revolving Loan or
(y) extend beyond the Term Loan Maturity Date with respect to any Term Loan. 
 “Interest Reserves” means, with
respect to any Indebtedness, the aggregate of all sums held by any applicable lender as reserves for future interest payments in respect of the Borrowing Group’s Share of such Indebtedness. 

“Intra-Company Debt” means all Indebtedness (whether book-entry or evidenced by a term, demand or other note or other
instrument) owed by any member of the Borrowing Group to any other member of the Borrowing Group; provided, that, all such Intra-Company Debt owed by Borrowers or any Guarantor (excluding a de minimis amount thereof not to exceed $250,000)
shall be subordinated in right of payment to the payment in full of the Obligations in accordance with the terms of the Intra-Company Loan Subordination Agreement. 

“Intra-Company Loan Subordination Agreement” means an Amended and Restated Intra-Company Loan Subordination Agreement, in the
form attached hereto as Exhibit G (with such amendments or modifications thereto as may be agreed to by the Administrative Agent), with respect to Intra-Company Debt, in favor of Administrative Agent for the ratable benefit of Lenders, and
entered into by each of the lenders of the Intra-Company Debt, Borrowers and Guarantors. 
 “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 capital stock 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 

  
 24 

 
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, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit. For purposes of covenant compliance, the amount of any Investment shall
be the book value of such Investment. 
 “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 that issued such Letter of Credit and the Borrowers (or any Subsidiary) or in favor such L/C Issuer and relating to any such Letter of Credit. 

“Joinder Agreement” means a joinder agreement substantially in the form attached hereto as Exhibit H. 

“Joint Lead Arrangers” means, as to the Revolving Credit Facility, KeyBanc Capital Markets, Wells Fargo Securities and PNC
Capital Markets LLC, in their capacities as joint lead arrangers and joint book managers and, as to the Term Loan Facility, KeyBanc Capital Markets, Wells Fargo Securities, PNC Capital Markets LLC and U.S. Bank National Association, in their
capacities as joint lead arrangers and joint book managers. 
 “KeyBank” means KeyBank National Association and its
successors. 
 “L/C Advance” means, with respect to each Revolving Credit Lender, such Revolving Credit Lender’s
funding of its participation in any L/C Borrowing in accordance with its Applicable Percentage. 
 “L/C Borrowing” means an
extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed by 5:00 p.m. on the Honor Date (or, if the Borrowers were notified of such drawing on or after the Honor Date, not later than 5:00 p.m. on the
following Business Day) or refinanced as a Revolving Borrowing. 
 “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 (a) KeyBank, in its capacity as issuer of Letters of Credit issued by it hereunder and in its capacity as issuer of each Existing Letter of Credit issued by it, together with its successors in such capacity, (b) Bank
of America, N.A., in its capacity as issuer of the Existing Letter of Credit issued by it, together with its successors in such capacity and (c) any other Revolving Credit Lender or Revolving Credit Lenders selected by the Borrowers which
agrees to act as an L/C Issuer and is reasonably satisfactory to the Administrative Agent, in its capacity as issuer of Letters of Credit issued by such Revolving Credit Lender hereunder, together with its successors in such capacity;
provided that under no circumstances shall there be more than three L/C Issuers at any time. 

  
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 “L/C Obligations” means, as 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. 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. 

“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. 

“Lender” means (a) each Revolving Credit Lender and (b) each Term Loan 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 in writing to the Borrowers and the Administrative Agent. 

“Letter of Credit” means any standby letter of credit issued hereunder and shall include the Existing Letters of Credit. 

“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 that issued such Letter of Credit. 
 “Letter of Credit Expiration Date”
means the day that is seven (7) days prior to the Revolving Credit Maturity Date (or, if such day is not a Business Day, the immediately preceding Business Day). 

“Letter of Credit Fee” has the meaning specified in Section 2.03(i). 

“Letter of Credit Sublimit” means an amount equal to $100,000,000. The Letter of Credit Sublimit is part of, and not in
addition to, the Aggregate Revolving Credit Commitments. 
 “Leverage Ratio” means, on any date of determination, the ratio
of (a) Total Funded Indebtedness as of such date to (b) Gross Asset Value as of such date. 

  
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 “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 and any financing lease having substantially the same economic effect as any of the foregoing). 

“Loan” means a Revolving Loan, a Swing Line Loan and a Term Loan, as the context requires. 

“Loan Documents” means this Agreement, each Revolving Note, the Swing Line Note, each Term Loan Note, each Issuer Document,
the Fee Letter, the Guaranty, the Intra-Company Loan Subordination Agreement, the Pledge Agreements, and other instrument, document or agreement from time to time delivered by a Loan Party in connection with this Agreement. 

“Loan Parties” or “Loan Party” means, individually or collectively, the Borrowers, each Guarantor and each
Subsidiary which is party to a Pledge Agreement, as applicable. 
 “Lockedout Cap” means $166,666,666.00. 

“Lockedout Term Loans” means an Outstanding Amount of the Term Loans equal to $166,666,666.00, less any Term Loans previously
repaid that were subject to the Yield Maintenance Premium. 
 “Lockout Period” means the period through and including the
date that is six (6) months from the Closing Date. 
 “Material Adverse Effect” means (a) a material adverse
change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Borrowers or the Borrowers and their Subsidiaries taken as a whole;
(b) a material impairment of the ability of (x) a Borrower or (y) the Loan Parties (other than the Borrowers), taken as a whole, to perform the Obligations under the Loan Documents; or (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against the Loan Parties of the Loan Documents. 
 “Material
Subsidiary” has the meaning specified in Section 6.12(a). 
 “Maximum Rate” has the meaning specified in
Section 10.09. 
 “Mezzanine Indebtedness” means Indebtedness of the Borrowers or any of their Subsidiaries secured by
a pledge of one or more equity interests in a Single Purpose Entity owning only one real property asset, where such real property asset is prohibited from being further encumbered. 

“Moderate Redevelopment” means any renovation of any multi-family property that does not involve any demolition of existing
units and which does not involve (a) taking units out of service for more than 30 consecutive days or (b) more than 20% of the total units in a multi-family property, in each case at any particular time. 

  
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 “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 the Borrowers 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. 

“NAPICO Assets” means assets of National Partnership Investments Corp., a California corporation and a Subsidiary of
AIMCO/Bethesda. 
 “Negative Pledge Assets” means, collectively, (i) the Note(s) Receivables (other than any Note(s)
Receivables that may be approved by the Required Lenders), (ii) all property management contracts of the Borrowing Group, and (iii) the Borrowing Group’s general partnership interests in partnerships that own properties managed by any
member of the Borrowing Group. 
 “Net Disposition Proceeds” means, with respect to any Disposition of any property
(including as a result of casualty or condemnation and any purchase price refund in respect of any acquisition), Subsidiary, Affiliate or material property management contract, the Borrowing Group’s Share of Cash payments (including any Cash
received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise or any earnout payments after the closing of a Disposition, but only as and when so received) or Cash Equivalents received from such Disposition,
net of any bona fide direct costs incurred in connection with such Disposition, including (i) income taxes reasonably estimated to be actually payable within two years of the date of such Disposition as a result of any gain recognized in
connection with such Disposition and (ii) payment of the outstanding principal amount of, premium or penalty, if any, and interest on any Indebtedness (other than the Loans) that is secured by a Lien on the Stock or assets in question and that
is required to be repaid under the terms thereof as a result of such Disposition. 
 “Net Income” means, for any period and
for any Person, the net income (loss) of the Person (including net income (loss) attributable to noncontrolling interests in consolidated real estate partnerships) for that period, determined in accordance with GAAP; provided that there shall
be excluded the net amount of any gains or non-cash losses. 
 “Net Operating
Income” means, for any period, as to any real property asset (a) all gross revenues received from the operation of such property during such period (including, without limitation, payments received from insurance on account of business
or rental interruption and condemnation proceeds from any temporary use or occupancy, in each case, to the extent attributable to the period for which such Net Operating Income is being determined, but excluding any proceeds from the sale or other
disposition (other than by lease) of any part or all of such property; or from any financing or refinancing of such property; or from any condemnation of any part or all of such property (except for temporary use or occupancy); or on account of a
casualty to the property (other than payments from insurance on account of business 

  
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or rental interruption); or any security deposits paid under leases of all or a part of such property, unless forfeited by tenants), minus (b) all reasonable and customary property
maintenance and repair costs, leasing and administrative costs, management fees and, without double counting, real estate taxes and insurance premiums paid or accrued on account of such property (whether by direct payment or by deposit into reserves
for future payment) (exclusive of Capital Expenditures). When calculating Net Operating Income, there shall be no deduction for any non cash items, such as depreciation. 

“New Construction” means the development and construction of any new multi-family property by any Borrower, any Guarantor or
any of their respective Subsidiaries and shall not include any renovations, rehabilitations or expansions of existing multi-family properties. 

“Non-Consenting Lender” means any Lender that does not provide consent in any
circumstance where the consent of all or any affected Lenders is required pursuant to Section 10.01, but only the consent of the Required Lenders is obtained. 

“Non-Controlled Entities” means, as of any date of determination, any Person not
consolidated by the Borrowing Group in accordance with GAAP as of such date. 
 “Non-Core
Assets” means: (i) unimproved land (other than Development Assets) of the Borrowing Group and Notes Receivable of the Borrowing Group valued at their net book value, (ii) Permitted Junior Loans, and (iii) Permitted Mortgage
Certificates. 
 “Non-Recourse Indebtedness” means Indebtedness which is not
Recourse Indebtedness. 
 “Note(s)” means each Revolving Note, the Swing Line Note and each Term Loan Note. 

“Note(s) Receivable” means a payment obligation to a member or members of the Borrowing Group (other than Intra-Company Debt)
which is evidenced by a written and enforceable promissory note and which is classified as a note receivable in accordance with GAAP. 

“NYSE” means the New York Stock Exchange. 

“Obligations” means all advances to, and debts, liabilities and obligations of, any Loan Party arising under any Loan
Document or otherwise with respect to any Loan or Letter of Credit, 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 Asset Control of the Department of the Treasury of the
United States of America. 

  
 29 

 “Organization Documents” means, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws; (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, or, in each case, equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction. 
 “Original Closing
Date” is defined in the recitals to this Agreement. 
 “Other Connection Taxes” means, with respect to any
Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient having executed, delivered, become a party to, performed
its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document). 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that
arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that
are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 10.13). 

“Outstanding Amount” means (i) with respect to Loans on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments thereof occurring on such date; and (ii) with respect to any L/C Obligations on any date, 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 of outstanding unpaid drawings under any Letters of Credit or any reductions in the
maximum amount available for drawing under Letters of Credit taking effect on such date. 
 “Participant” has the meaning
specified in Section 10.06(d). 
 “Participant Register” has the meaning specified in Section 10.06(d). 

“Partnership Units” means the units of limited partnership interest in the Borrowers or any of their Subsidiaries, as the
case may be, issued and outstanding from time to time. 
 “PBGC” means the Pension Benefit Guaranty Corporation. 

  
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 “Pension Plan” means 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 Borrowers or any ERISA Affiliate or to which the Borrowers or any ERISA Affiliate contributes, 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 five plan years. 

“Permitted Junior Loans” means Investments by any Person in the Borrowing Group in Indebtedness consisting of
junior mortgage loans and/or mezzanine loans secured by equity interests, initially owed by Persons that were Subsidiaries of the Borrowing Group (regardless of whether such Persons continue to be Subsidiaries of the Borrowers); provided that
the owner of any such Investments must be a Borrower or Guarantor. 
 “Permitted Mortgage Certificates” means Investments
by any Person in the Borrowing Group in one or more tranches or series of collateralized mortgage backed securities or certificates initially owed by any Person with respect to Indebtedness of one or more Subsidiaries of the Borrowing Group;
provided that the owner of any such Investments must be a Borrower or Guarantor. 
 “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” (as such term is defined in Section 3(3) of ERISA) established by the
Borrowers or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate. 

“Platform” has the meaning specified in Section 6.02(h). 

“Pledge Agreement” means an Amended and Restated Security Agreement (Securities), in the form of Exhibit I-1 or I-2, attached hereto (with such amendments or modifications thereto as may be agreed to by the Administrative Agent), in favor of the Administrative Agent
for the ratable benefit of the Lenders and entered into by a Borrower or a Subsidiary of a Borrower that owns the Collateral as described therein. 

“PNC” means PNC Bank, National Association and its successors. 

“Public Lender” has the meaning specified in Section 6.02(h). 

“Qualified Redemption Obligations” means, (i) in the case of AIMCO, the obligation of AIMCO to acquire or redeem issued
Partnership Units which obligation AIMCO may elect to satisfy with shares of common Stock of the REIT and (ii) any obligation of a Person to redeem or repurchase an Equity Interest in such Person either (a) upon the happening of a change
of control or other conditional event which is not reasonably likely to occur and which condition is set forth in the applicable securities and which event has in fact not occurred prior to the date of determination hereunder, or (b) at the
holder’s option (except following or as a result of circumstances described in clause (a) above) only after the date which is one year after the later of the Revolving Credit Maturity Date and the Term Loan Maturity Date or (c) at any
time on or subsequent to the one year anniversary of the Maturity Date. In all events, “Qualified Redemption Obligations” include all preferred Equity Interests which are convertible only into common Stock of the REIT. 

  
 31 

 “Rating Agencies” means S&P, Moody’s and Fitch, collectively, and
“Rating Agency” means S&P, Moody’s or Fitch. 
 “Recipient” means (a) the Administrative
Agent, (b) any Lender or (c) any L/C Issuer, as applicable. 
 “Recourse” means, with respect to any Indebtedness
or Guarantee of any Person, that such Indebtedness or Guarantee is recourse to the general assets and/or properties of such Person (except as provided below); provided, however, that with respect to Indebtedness secured by real
property which is characterized as “nonrecourse” or which is only Recourse to the real property of the Person except for limitations to the “nonrecourse” nature of the obligation or Indebtedness or Guarantees which are recourse
to a Person or such Person’s assets and/or properties only upon the occurrence of certain events such as those set forth in (a) through (k) below, such Indebtedness or Guarantees shall only be deemed “Recourse” if and to the
extent the nonrecourse exceptions (if any) are for the Person’s liability for the following under the applicable loan documentation and any of the events described in clauses (a) through (k) have occurred and the lender or holder of such
Indebtedness or Guarantee has given written notice of the occurrence thereof: (a) fraud, waste, material misrepresentation, or willful misconduct; (b) indemnification with respect to environmental matters or failure to comply with
Environmental Laws; (c) failure to maintain required insurance policies; (d) misapplication of insurance proceeds, condemnation awards and tenant security deposits; (e) breach of covenants relating to unpermitted transfers or
encumbrances of real property or other collateral; (f) misappropriation or misapplication of property income; (g) breach of covenants relating to unpermitted transfers of interests in a Person; (h) failure to deliver books and
records; (i) failure to pay transfer fees or charges; (j) bankruptcy filings or (k) other matters similar to those set forth in clauses (a) through (j) above or otherwise constituting customary exceptions for nonrecourse
financings. An obligation of a Person that is not Recourse to the general assets and/or properties of such Person shall not be considered a “Recourse” obligation; an obligation of a Person that is contingent upon the occurrence of certain
events shall not be considered a “Recourse” obligation unless any of the events or circumstances described in clauses (a) through (k) above have occurred and the lender or holder of such Indebtedness or Guarantee has given written
notice of the occurrence of such events (in which case the amount of such obligation shall be limited to reasonably anticipated liability resulting from the occurrence of such events or circumstances). Indebtedness of a Single Purpose Entity secured
by that Single Purpose Entity’s assets shall not be considered a “Recourse” obligation of such Single Purpose Entity. 

“Recourse Indebtedness” means that portion of Total Funded Indebtedness in which the Recourse of the applicable lender or
lenders to the obligor for non-payment is not limited to such lender’s Lien on an asset or assets, including any guarantee of payment by a member of the Borrowing Group to the extent such guarantee is
Recourse to such Borrowing Group member but in any event excluding any Indebtedness or Guarantees which are not Recourse at the applicable date of determination. “Recourse Indebtedness” shall include any Indebtedness consisting of
preferred Stock or preferred Partnership Units which are not Qualified Redemption Obligations but are otherwise mandatorily redeemable or redeemable at the option of the holder thereof. If a Person is a Single Purpose Entity which owns a real
property asset and has Indebtedness which is not limited in recourse to that real property asset, such Indebtedness shall not be considered “Recourse Indebtedness”, provided no other member of the Borrowing Group has guaranteed such
Indebtedness on a Recourse basis as of the applicable date of determination (such exclusions to encompass any Guarantees which are limited to customary non-recourse exemptions). 

  
 32 

 “Register” has the meaning specified in Section 10.06(c). 

“REIT” is defined in the preamble to this Agreement. 

“REIT Status” means, with respect to any Person, (a) the qualification of such Person as a real estate investment trust
under Sections 856 through 860 of the Code, 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 and advisors of such Person and of such Person’s Affiliates. 
 “Removal Effective Date” has the
meaning specified in Section 9.06. 
 “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 Revolving Loans or Term Loans, a Revolving/Term Loan Notice, (b) with respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with respect to a Swing
Line Loan, a Swing Line Loan Notice. 
 “Required Lenders” means, as of any date of determination, Lenders having more than
50% of the sum of (a) the Total Term Loan Outstandings plus (b) the then available and unfunded Aggregate Term Loan Commitments, if any, plus (c) the Revolving Credit Commitments then in effect or, if the Revolving
Credit Commitment of each Revolving Credit Lender to make Revolving Loans and the obligation of the L/C Issuers to make L/C Credit Extensions have been terminated pursuant to Section 8.02, the Total Revolving Credit 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);
provided that the 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. 

“Required Revolving Credit Lenders” means, as of any date of determination, Revolving Credit Lenders having more than 50% of
the Revolving Credit Commitments then in effect or, if the Commitment of each Revolving Credit Lender to make Revolving Loans and the obligation of the L/C Issuers to make L/C Credit Extensions have been terminated pursuant to Section 8.02, the
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); provided that the 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 Credit Lenders. 

  
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 “Required Supermajority Lenders” means, as of any date of determination, Lenders
having 67% or more of the sum of (a) the Total Term Loan Outstandings plus (b) the then available and unfunded Aggregate Term Loan Commitments, if any, plus (c) the Revolving Credit Commitments then in effect or, if the
Revolving Credit Commitment of each Revolving Credit Lender to make Revolving Loans and the obligation of the L/C Issuers to make L/C Credit Extensions have been terminated pursuant to Section 8.02, the Total Revolving Credit 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);
provided that the 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 Supermajority Lenders. 

“Required Term Loan Lenders” means, as of any date of determination, Term Loan Lenders having more than 50% of the Total Term
Loan Outstandings. 
 “Resignation Effective Date” has the meaning specified in Section 9.06. 

“Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer, assistant treasurer
or any executive vice president of a Loan Party and, for purposes of Sections 2.17(a)(v)(i) and 4.01(a)(iii), the secretary or assistant secretary of a Loan Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan
Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan
Party. 
 “Restricted Cash” means the Borrowing Group’s Share of any Cash pledged to any lender (including a Lender)
and includes the Cash indicated in the line item for “restricted cash” in the REIT’s balance sheet from time to time. 

“Restricted Payment” means, with respect to any Person, any dividend or other distribution (whether in cash, securities or
other property) with respect to any capital stock or other Equity Interest of such Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any such capital stock or other Equity Interest of such Person, or on account of any return of capital to such Person’s stockholders, partners or members (or the equivalent Person
thereof). 
 “Revolving Borrowing” means a borrowing consisting of simultaneous Revolving Loans of the same Type and, in
the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Revolving Credit Lenders pursuant to Section 2.01. 

“Revolving Credit Commitment” means, as to each Revolving Credit Lender, its obligation to (a) make Revolving Loans to
the Borrowers pursuant to Section 2.01, (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 amount set forth

  
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opposite such Revolving Credit Lender’s name on Schedule 2.01A or in the Assignment and Assumption pursuant to which such Revolving Credit Lender becomes a party hereto, as
applicable, as such amount may be adjusted from time to time in accordance with this Agreement (including as increased under Section 2.17). 

“Revolving Credit Facility” means the Revolving Credit Commitment and the Revolving Loans and Swing Line Loans made,
and the Letters of Credit issued, pursuant thereto. 
 “Revolving Credit Lender” means (a) each Person party hereto as
a “Revolving Credit Lender” on the Closing Date and (b) any Person that shall have become party hereto as a “Revolving Credit Lender” pursuant to an Assignment and Assumption, in each case, other than any such Person that
ceases to be a party hereto pursuant to an Assignment and Assumption and, as the context requires, includes the Swing Line Lender. 

“Revolving Credit Maturity Date” means January 22, 2022, or such earlier date on which the Revolving Loans shall become
due and payable pursuant to the terms hereof. 
 “Revolving Loan” means a Base Rate Loan or a Eurodollar Rate Loan made to
the Borrowers by a Revolving Credit Lender in accordance with its Applicable Percentage pursuant to Section 2.01(a), except as otherwise provided herein and shall include the Existing Revolving Loans. 

“Revolving Note” means a promissory note made by the Borrowers in favor of a Revolving Credit Lender evidencing Revolving
Loans made by such Revolving Credit Lender, substantially in the form of Exhibit C-1. 

“Revolving/Term Loan Notice” means a notice of (a) a Revolving Borrowing and/or Term Loan Borrowing, (b) a
conversion of Revolving Loans and/or Term Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of
Exhibit A. 
 “S&P” means S&P Global Inc., and any successor thereto. 

“Sanctions Laws and Regulations” means any applicable sanctions, prohibitions or requirements imposed by any applicable
executive order or by any applicable sanctions program administered or enforced by (a) OFAC or any successor to OFAC carrying out functions similar to the foregoing, (b) the United States Department of State, (c) the United Nations
Security Council, (d) the European Union or (e) Her Majesty’s Treasury of the United Kingdom. 
 “Scheduled
Amortization” means, with respect to any Person, the sum, as of any date of determination, of all regularly scheduled amortization payments paid or accrued on such Person’s Indebtedness (exclusive of balloon payments). 

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

  
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 “SEC Report” means all filings on Form
10-K, Form 10-Q or Form 8-K with the SEC made by the REIT pursuant to the Securities Exchange Act of 1934. 

“Second Tier Subsidiary” has the meaning specified in Section 6.12(a). 

“Secured Indebtedness Ratio” means, on any date of determination, the ratio of (a) Total Secured Indebtedness as of such
date, to (b) Gross Asset Value as of such date. 
 “Single Purpose Entity” means a Person which is created or existing
solely to own a specific real property asset and which has no Indebtedness other than in conjunction with the acquisition, operation and maintenance of such real property asset (including normal and customary trade payables) and which engages in no
business other than the ownership, operation and maintenance of such real property asset. 
 “SPC” has the meaning
specified in Section 10.06(h). 
 “Specified Acquisition” has the meaning specified in Section 6.11. 

“Stabilized Occupancy” has the meaning specified in the definition of “Gross Asset Value”. 

“Stock” means all shares, options, warrants, interests, participations or other equivalents (regardless of how designated) of
or in a corporation or equivalent entity, whether voting or nonvoting, including common stock, preferred stock, perpetual preferred stock or any other “equity security” (as such term is defined in Rule
3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act). Convertible debt shall not constitute Stock unless and until such debt is converted into the applicable underlying
securities. 
 “Subsequent Approval Request” has the meaning specified in Section 9.11(b). 

“Subsidiary” of a Person means (a) a corporation, partnership, joint venture, limited liability company or other
business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person and (b) any corporation, partnership, joint
venture, limited liability company or other business entity that is consolidated with such Person in accordance with GAAP. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a
Subsidiary or Subsidiaries of the Borrowers. 
 “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 

  
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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 2.04. 

“Swing Line Lender” means KeyBank 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 2.04(a). 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if in writing,
shall be substantially in the form of Exhibit B. 
 “Swing Line Note” means a promissory note
made by the Borrowers in favor of the Swing Line Lender evidencing Swing Line Loans made by such Lender, substantially in the form of Exhibit C-2. 

“Swing Line Sublimit” means an amount equal to $100,000,000. The Swing Line Sublimit is part of, and not in addition to, the
Aggregate Revolving Credit Commitments. 
 “Syndication Agents” means Wells Fargo and PNC, in their capacities as
syndication agents under this Agreement. 
 “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 Loan” means a Base Rate Loan or a Eurodollar Rate Loan made to the Borrowers by a Term Loan Lender in accordance with
its Applicable Percentage pursuant to Section 2.01(b). 

  
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 “Term Loan Borrowing” means a borrowing of Term Loans pursuant to
Section 2.01(b). 
 “Term Loan Commitment” means, as to each Term Loan Lender, its obligation to make Term Loans to
the Borrowers pursuant to Section 2.01, in the amount set forth opposite such Term Loan Lender’s name on Schedule 2.01A or in the Assignment and Assumption pursuant to which such Term Loan Lender becomes a party hereto, as
applicable, as such amount may be adjusted from time to time in accordance with this Agreement (including as increased under Section 2.17). 

“Term Loan Facility” means the Term Loan Commitment and the Term Loans made pursuant thereto. 

“Term Loan Lender” means (a) each Person party hereto as a “Term Loan Lender” on the Closing Date and
(b) any Person that shall have become party hereto as a “Term Loan Lender” pursuant to an Assignment and Assumption, in each case, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

 “Term Loan Maturity Date” means the Initial Term Loan Maturity Date, as such date may be extended as provided in
Section 2.16, or such earlier date on which the Term Loans shall become due and payable pursuant to the terms hereof; provided, however, that, in each case, if such date is not a Business Day, the Term Loan Maturity Date shall be
the immediately preceding Business Day. 
 “Term Loan Note” means a promissory note made by the Borrowers in favor of a
Term Loan Lender evidencing Term Loans made by such Term Loan Lender, substantially in the form of Exhibit C-3. 

“Threshold Amount” means (a) with respect to Indebtedness that is not Recourse Indebtedness, $250,000,000 individually
or in the aggregate, and (b) with respect to Indebtedness which is Recourse Indebtedness, $35,000,000 individually or in the aggregate; provided that solely for purposes of determining the Threshold Amount, Indebtedness relating to
NAPICO Assets shall be calculated as equal to Borrowing Group’s Share thereof to the extent that such share (x) is an administrative non-controlling interest, and (y) amounts to less than 5% of
the interest in any such NAPICO Asset. 
 “Total EBITDA” means, for any period and without double counting, the Borrowing
Group’s Share of EBITDA. 
 “Total Funded Indebtedness” means, for any period and without double counting, the sum of
the Borrowing Group’s Share of (a) Funded Indebtedness, minus (b) its share of any debt service reserves or sinking funds with respect to such Funded Indebtedness. 

“Total Interest Expense” means, for any period and without double counting, the sum of (a) the Borrowing Group’s
Share of Interest Expense, minus (b) the aggregate amount of Interest Reserves (to the extent included as interest). 

  
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 “Total Net Operating Income” means, for any period and without double counting,
the Borrowing Group’s Share of Net Operating Income. 
 “Total Outstandings” means the sum of (a) the Total
Revolving Credit Outstandings plus (b) Total Term Loan Outstandings. 
 “Total Revolving Credit Outstandings”
means the sum of (i) the aggregate Outstanding Amount of all Revolving Loans, (ii) the aggregate Outstanding Amount of all Swing Line Loans, and (iii) the aggregate Outstanding Amount of all L/C Obligations. 

“Total Scheduled Amortization” means, for any period of determination and without double counting any item, the Borrowing
Group’s Share of Scheduled Amortization. 
 “Total Secured Indebtedness” means, as of any date of determination and
without double counting any item, the aggregate amount of Total Funded Indebtedness that is secured by a Lien (excluding Indebtedness secured solely by cash in debt service reserves or sinking funds), plus, any Total Funded Indebtedness described in
the last sentence of the definition of Recourse Indebtedness which is otherwise not secured by a Lien; provided, however, that the Obligations shall be excluded from the calculation of Total Secured Indebtedness. 

“Total Term Loan Outstandings” means the aggregate Outstanding Amount of all Term Loans. 

“Total Unsecured Indebtedness” means, for any period of determination, the aggregate amount of the Borrowing Group’s
Share of Funded Indebtedness which is not secured by a Lien (excluding Indebtedness secured solely by cash in debt service reserves or sinking funds); provided, however, that the Obligations shall be included in the calculation of
Total Unsecured Indebtedness. 
 “Treasury Rate” means the yield calculated by the Administrative Agent by the linear
interpolation (rounded to the nearest one-thousandth of one percent (i.e., 0.001%)) of the yields, as reported in Federal Reserve Statistical Release H.15-Selected
Interest Rates under the heading U.S. Government Securities/Treasury Constant Maturities on the date five (5) Business Days prior to the date of any prepayment of the Lockedout Term Loans, of U.S. Treasury constant maturities with maturity
dates (one longer and one shorter) most nearly approximating the last day of the Lockout Period. (In the event Release H.15 is no longer published, the Administrative Agent shall select a comparable publication to determine the Treasury Rate.) The
Administrative Agent shall notify the Borrowers of the amount and the basis of determination of the required Yield Maintenance Premium, and the Administrative Agent’s determination of the Treasury Rate shall be conclusive absent manifest error.
Notwithstanding the foregoing, if at any time the Treasury Rate determined as provided above is less than zero, such rate shall be deemed to be zero for purposes of this Agreement. 

“Type” means, with respect to a Revolving Loan or a Term Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.

 “Unencumbered Subsidiary” has the meaning specified in Section 6.12(a). 

  
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 “Unfunded Pension Liability” means 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 Section 412 of the Code for the
applicable plan year. 
 “Unimproved Land” means, as of any date of determination, a legal parcel of real property that is
vacant and unimproved and which does not constitute Development Assets. 
 “United States” and “U.S.” mean
the United States of America. 
 “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i). 

“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)(3). 

“Wells Fargo” means Wells Fargo Bank, N.A. and its successors. 

“Wholly-Owned Subsidiary” means a Subsidiary of AIMCO and/or the REIT and/or AIMCO/Bethesda of which 100% of the Equity
Interests is owned directly or indirectly by (i) Borrowers or (ii) for purposes of the last sentence of Section 6.12 one or more Guarantors. 

“Withholding Agent” means the REIT, any Borrower, any Guarantor and the Administrative Agent, as applicable. 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers
of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. 
 “Yield Maintenance Premium” means, as to any Lockedout
Term Loans prepaid prior to the end of the Lockout Period, an amount determined by the Administrative Agent equal to the net present value, as of the date of such prepayment, of the Applicable Rate (determined using the Applicable Rate for Term
Loans that are Eurodollar Rate Loans (assuming the Credit Rating Level in effect as of the date of such prepayment remains unchanged through and including the last day of the Lockout Period)) that would have accrued and been payable on the principal
amount of such Lockedout Term Loans so prepaid from the date of such prepayment through and including the last day of the Lockout Period, determined by discounting such amount of such interest payments at a rate which, when compounded monthly, is
equivalent to the Treasury Rate when compounded semi-annually plus 0.50%. 

  
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 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, restated, amended and restated,
supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, amendments and restatements, 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 “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer
to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending replacing or interpreting such law and any reference to any law or
regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 

(b) In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and
including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.” 

(c) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the
interpretation of this Agreement or any other Loan Document. 
 (d) To the extent that any of the representations and warranties contained in
this Agreement or any other Loan Document is qualified by “Material Adverse Effect” or any other materiality qualifier, then the qualifier “in all material respects” contained in Sections 2.16(d), 2.17(a)(v) and 4.02(a) and the
qualifier “in any material respect” contained in Section 8.01(d) shall not apply solely with respect to any such representations and warranties. 

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. 

  
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 (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 Borrowers or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrowers 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, the Administrative Agent and the Borrowers); 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 Borrowers 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) Computations. Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall
be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial
Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of a Borrower or any of its Subsidiaries at “fair value”, as defined therein, (ii) without giving effect to any treatment of
Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness
in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof, (iii) in a manner that excludes the effect of the adoption of ASU 2016-02 such that
capital lease obligations shall specifically exclude liabilities that were considered operating lease liabilities under GAAP prior to the adoption of ASU 2016-02 and (iv) with respect to any assets with respect to which title thereto is
held by a third party for the purposes of facilitating a property exchange under Section 1031 of the Code, such assets shall be deemed held by the Borrowing Group, and all income and revenues received with respect to such assets shall
constitute income and revenues of the Borrowing Group derived from such assets. 
 1.04 Rounding. Any financial ratios required to be
maintained by the Borrowers 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 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 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. 

  
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 ARTICLE II. 

THE COMMITMENTS AND CREDIT EXTENSIONS 

2.01 Revolving Loans and Term Loans. 

(a) Revolving Loans. The Existing Revolving Credit Lenders made one or more advances to the Borrower prior to the Closing Date in
accordance with the terms of the Existing Credit Agreement (each such loan, to the extent outstanding on the Closing Date, an “Existing Revolving Loan”). Subject to the terms and conditions set forth herein, each Revolving Credit
Lender severally agrees (i) that all Existing Revolving Loans made by it in its capacity as an Existing Revolving Credit Lender shall be deemed to have been made pursuant hereto, and, from and after the Closing Date shall be Revolving Loans
hereunder and subject to and governed by the terms and conditions hereof, and (ii) to make Revolving Loans to the Borrowers 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 Revolving Credit Commitment; provided, however, that after giving effect to any Revolving Borrowing, (i) the Total Revolving Credit Outstandings shall
not exceed the Revolving Credit Commitments, and (ii) the aggregate Outstanding Amount of the Revolving Loans of any Revolving Credit Lender, plus such Revolving Credit 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 Revolving Credit Lender’s Commitment. Within the limits of each Revolving Credit Lender’s
Revolving Credit Commitment, and subject to the other terms and conditions hereof, the Borrowers may borrow under this Section 2.01(a), prepay under Section 2.05, and reborrow under this Section 2.01(a). Revolving Loans
may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. 
 (b) Term Loans. Subject to the terms and conditions
hereof, on the Closing Date, each Term Loan Lender severally and not jointly agrees to make a Term Loan to the Borrower in an amount equal to such Lender’s Term Loan Commitment as of the Closing Date. Upon the making of the Term Loans on the
Closing Date, the Term Loan Commitments shall be reduced to zero. Any additional Term Loans made as a result of any increase in the Aggregate Term Loan Commitments pursuant to Section 2.17 shall be made on the applicable Increase Effective Date
and each Term Loan Lender which elects to increase its Term Loan Commitment pursuant to Section 2.17 severally and not jointly agrees to make a Term Loan to the Borrower in an amount equal to (a) with respect to any existing
Term Loan Lender, the amount by which such Term Loan Lender’s Term Loan Commitment was increased on the applicable Increase Effective Date and (b) with respect to any additional Term Loan Lender that establishes a Term Loan
Commitment pursuant to Section 2.17, the amount of such additional Term Loan Lender’s Term Loan Commitment. Any amount of the Term Loans that is repaid may not be reborrowed. Term Loans may be Base Rate Loans or Eurodollar Rate
Loans, as further provided herein. 

  
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 2.02 Borrowings, Conversions and Continuations of Loans. 

(a) Each Borrowing, each conversion of Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon the
Borrowers’ 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 (i) 4:00 p.m., three (3) Business Days prior to the requested date of
any Borrowing of, conversion to or continuation of, Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) 4:00 p.m., one (1) Business Day prior to the requested date of any Borrowing of Base
Rate Loans. Each telephonic notice by the Borrowers pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Revolving/Term Loan Notice, appropriately completed and signed by a
Responsible Officer of the Borrowers. Each Borrowing of, conversion to or continuation of, Eurodollar Rate 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 2.03(c)
and 2.04(c), each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof. Each Revolving/Term Loan Notice (whether telephonic or written) shall specify
(i) whether the Borrowers are requesting a Revolving Borrowing or a Term Loan Borrowing, a conversion of Revolving Loans or Term Loans from one Type to the other, or a continuation of Eurodollar Rate 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 Revolving Loans or Term Loans to be borrowed, converted or continued, (iv) the Type of Loans to be
borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto. If the Borrowers fail to specify a Type of Revolving Loan or Term Loan in a Revolving/Term Loan
Notice or if the Borrowers fail to give a timely notice requesting a conversion or continuation, then the applicable Revolving Loans or Term Loans shall be made as, or converted to, Base Rate Loans. Any such 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 Eurodollar Rate Loans. If the Borrowers request a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such
Revolving/Term Loan Notice, but fail to specify an Interest Period, they will be deemed to have specified an Interest Period of one month. 

(b) Following receipt of a Revolving/Term Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its
Applicable Percentage of the applicable Revolving Loans or Term Loans, and if no timely notice of a conversion or continuation is provided by the Borrowers, the Administrative Agent shall notify each Lender of the details of any automatic conversion
to Base Rate Loans described in the preceding subsection. In the case of a Borrowing, each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not
later than 4:00 p.m. on the Business Day specified in the applicable Revolving/Term Loan Notice. Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the initial Credit Extension, Section

  
 44 

 
4.01), the Administrative Agent shall promptly (and, with respect to funds received prior to 4:00 p.m. on the Business Day specified in the applicable Revolving/Term Loan Notice, on the Business
Day specified in the applicable Revolving/Term Loan Notice), make all funds so received available to the Borrowers in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrowers on the books of
KeyBank 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 Borrowers; provided, however, that
if, on the date a Revolving/Term Loan Notice with respect to a Revolving Borrowing is given by the Borrowers, there are L/C Borrowings outstanding, then the proceeds of such Revolving Borrowing, first, shall be applied to the payment in full of any
such L/C Borrowings, and second, shall be made available to the Borrowers as provided above. 
 (c) Except as otherwise provided herein, a
Eurodollar Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Rate Loan. During the existence of a Default, (i) no Revolving Loans may be requested as, converted to or continued as
Eurodollar Rate Loans without the consent of the Required Revolving Credit Lenders and (ii) no Term Loans may be requested as, converted to or continued as Eurodollar Rate Loans without the consent of the Required Term Loan Lenders. 

(d) The Administrative Agent shall promptly notify the Borrowers and the Lenders of the interest rate applicable to any Interest Period for
Eurodollar Rate Loans upon determination of such interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the Borrowers and the Lenders of any change in KeyBank’s prime rate used in determining the
Base Rate promptly following the public announcement of such change. 
 (e) After giving effect to all Revolving Borrowings and Term Loan
Borrowings, all conversions of Revolving Loans or Term Loans from one Type to the other, and all continuations of Revolving Loans or Term Loans as the same Type, there shall not be more than ten Interest Periods in effect at any one time with
respect to Revolving Loans and Term Loans. 
 2.03 Letters of Credit. 

(a) The Letter of Credit Commitment. 

(i) Subject to the terms and conditions set forth herein, (A) each L/C Issuer agrees, in reliance upon the agreements of the Revolving
Credit Lenders set forth in this Section 2.03, (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 for the account of the Borrowers or
their Subsidiaries, and to amend Letters of Credit previously issued by it, in accordance with Section 2.03(b) below, and (2) to honor drawings under the Letters of Credit; and (B) the Revolving Credit Lenders
severally agree to participate in Letters of Credit issued for the account of the Borrowers or their Subsidiaries and any drawings thereunder; provided that after giving effect to any L/C 

  
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Credit Extension with respect to any Letter of Credit, (x) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Commitments, (y) the aggregate Outstanding Amount of the
Revolving Loans of any Revolving Credit Lender, plus such Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Revolving Credit Lender’s Applicable 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
Borrowers for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Borrowers 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 Borrowers’ ability to obtain Letters of Credit shall be fully revolving, and, accordingly, the Borrowers 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 Letters of Credit hereunder
subject to and governed by the terms and conditions hereof. 
 (ii) No L/C Issuer shall issue any Letter of Credit if the expiry date of
such requested Letter of Credit would occur more than 12 months after the Revolving Credit Maturity Date. 
 (iii) No L/C Issuer shall 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 such L/C Issuer from issuing such Letter of Credit, or any Law applicable to such L/C Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with
jurisdiction over such L/C Issuer shall prohibit, or request that such L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such L/C Issuer with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which such L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon such L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which such L/C Issuer in good faith deems material to it; 
 (B) the issuance of such Letter of Credit
would violate one or more policies of such L/C Issuer; 
 (C) except as otherwise agreed by the Administrative Agent and such L/C Issuer,
such Letter of Credit is in an initial stated amount less than $500,000; 
 (D) such Letter of Credit is to be denominated in a currency
other than Dollars; or 

  
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 (E) a default of any Revolving Credit Lender’s obligations to fund under
Section 2.03(c) exists or any Revolving Credit Lender is at such time a Defaulting Lender hereunder and such Defaulting Lender’s obligations to acquire a participation in such Letter of Credit cannot be reallocated, or can only be
partially reallocated, among the non-Defaulting Lenders that are Revolving Credit Lenders in accordance with Section 2.15(a)(iv), unless such L/C Issuer has entered into arrangements mutually
satisfactory to such L/C Issuer, Administrative Agent and Borrowers to eliminate such L/C Issuer’s risk with respect to such Revolving Credit Lender (which arrangements may include the providing of Cash Collateral in relation to the
Borrowers’ obligations to pay any Unreimbursed Amounts in respect of such defaulting Revolving Credit Lender’s or Defaulting Lender’s participation in such Letter of Credit after giving effect to any partial reallocation pursuant to
Section 2.15(a)(iv)). 
 (iv) No L/C Issuer shall amend any Letter of Credit if such L/C Issuer would not be permitted at such
time to issue such Letter of Credit in its amended form under the terms hereof. 
 (v) No L/C Issuer shall be under any obligation to amend
any Letter of Credit if (A) such L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the
proposed amendment to such Letter of Credit. 
 (vi) Each 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 such 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 such 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 such L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to such L/C Issuer. 

(b) Procedures for Issuance and Amendment of Letters of Credit. 

(i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrowers delivered to the applicable 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 Borrowers. Such Letter of Credit Application must be received by such L/C Issuer and
the Administrative Agent not later than 4:00 p.m. at least five (5) Business Days (or such later date and time as the Administrative Agent and such 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 reasonably satisfactory to such L/C Issuer:
(A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount 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 

  
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case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; and (G) such other matters as such 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 reasonably satisfactory to such L/C Issuer: (A) the Letter of Credit to be amended;
(B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as such L/C Issuer may reasonably require. Additionally, the Borrowers shall furnish to the
applicable 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 such L/C Issuer or the Administrative Agent may
reasonably require. 
 (ii) Promptly after receipt of any Letter of Credit Application, the applicable 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 Borrowers and, if not, such L/C Issuer will provide the Administrative Agent with a copy thereof.
Unless the applicable L/C Issuer has received written notice from any Revolving Credit Lender, the Administrative Agent or any Loan Party, at least one (1) 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, such L/C Issuer shall, on the requested date, issue a Letter of Credit for
the account of the Borrowers (or the applicable Subsidiary) or enter into the applicable amendment, as the case may be, in each case in accordance with such L/C Issuer’s usual and customary business practices. Immediately upon the issuance of
each Letter of Credit, each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer that issued such Letter of Credit a risk participation in such Letter of Credit in an amount
equal to the product of such Lender’s Applicable Percentage times the amount of such Letter of Credit. 
 (iii) 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 applicable L/C Issuer will also deliver to the Borrowers and the Administrative Agent and to any
requesting Revolving Credit Lender a true and complete copy of such Letter of Credit or amendment. 
 (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 that issued such Letter of Credit shall notify the Borrowers and the Administrative Agent thereof. Not later than 2:00 p.m. on the date of any payment by an L/C Issuer under a Letter of Credit (each such date, an
“Honor Date”) (or, if the Borrowers were notified of such drawing on or after the Honor Date, not later than 5:00 p.m. on the following Business Day), the Borrowers shall reimburse such L/C Issuer through the Administrative Agent in
an amount equal to the amount of such drawing (unless the Borrowers elect to reimburse such L/C Issuer through a Revolving Loan, in which case, the Borrower shall submit a Revolving/Term Loan Notice 

  
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to the Administrative Agent as provided in Section 2.02(a) in an amount equal to the unreimbursed drawing (the “Unreimbursed Amount”) (without regard to the minimum and
multiples specified in Section 2.02(a)) but subject to the amount of the unutilized portion of the Aggregate Revolving Credit Commitments and the other conditions set forth in Section 4.02). If the Borrowers fail to so reimburse such L/C
Issuer by such time, the Administrative Agent shall promptly notify each Revolving Credit Lender of the Honor Date, the amount of the Unreimbursed Amount, and the amount of such Revolving Credit Lender’s Applicable Percentage thereof and in
such event, the Borrowers shall be deemed to have requested a Revolving Borrowing of Base Rate Loans 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(a) for the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion of the Aggregate Revolving Credit Commitments and the conditions set forth in Section 4.02 (other than the delivery of a
Revolving/Term Loan Notice). Any notice given by the Borrowers, an L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may be given by telephone if promptly confirmed in writing; provided that the lack of such a
prompt confirmation shall not affect the conclusiveness or binding effect of such notice. 
 (ii) Each Revolving Credit Lender shall upon
any notice pursuant to Section 2.03(c)(i) make funds available to the Administrative Agent for the account of the applicable L/C Issuer at the Administrative Agent’s Office in an amount equal to its Applicable Percentage of the
Unreimbursed Amount not later than 4:00 p.m. on the Business Day specified in such notice by the Administrative Agent, which date will not be earlier than the Business Day after the Honor Date, whereupon, subject to the provisions of
Section 2.03(c)(iii), each Revolving Credit Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrowers in such amount. The Administrative Agent shall remit the funds so received to the applicable
L/C Issuer. 
 (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving Borrowing of Base Rate Loans
because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrowers shall be deemed to have incurred from the applicable 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 Revolving Credit Lender’s payment to the Administrative Agent for the account of
such L/C Issuer pursuant to Section 2.03(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 Revolving Credit Lender in satisfaction of its participation
obligation under this Section 2.03. 
 (iv) Until each Revolving Credit Lender funds its Revolving Loan or L/C Advance pursuant
to this Section 2.03(c) to reimburse the applicable L/C Issuer for any amount drawn under any Letter of Credit issued by it, interest in respect of such Revolving Credit Lender’s Applicable Percentage of such amount shall be solely for the
account of such L/C Issuer. 

  
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 (v) Each Revolving Credit Lender’s obligation to make Revolving Loans or L/C Advances to
reimburse the applicable L/C Issuer for amounts drawn under Letters of Credit issued by it, as contemplated by this Section 2.03(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 such L/C Issuer, the Borrowers 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 Revolving Credit Lender’s obligation to make Revolving Loans pursuant to this
Section 2.03(c) is subject to the conditions set forth in Section 4.02 (other than delivery by the Borrowers of a Revolving/Term Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation
of the Borrowers to reimburse the applicable L/C Issuer for the amount of any payment made by such L/C Issuer under any Letter of Credit issued by it, together with interest as provided herein. 

(vi) If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of the applicable L/C Issuer any
amount required to be paid by such Revolving Credit Lender pursuant to the foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), such L/C Issuer shall be entitled to recover from such Revolving
Credit 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 such L/C Issuer at a rate per
annum equal to the Federal Funds Rate. A certificate of the applicable L/C Issuer submitted to any Revolving Credit Lender (through the Administrative Agent) with respect to any amounts owing under this clause (vi) shall be conclusive
absent manifest error. 
 (d) Repayment of Participations. 

(i) At any time after an L/C Issuer has made a payment under any Letter of Credit issued by it and has received from any Revolving Credit
Lender such Revolving Credit Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c), if the Administrative Agent receives for the account of such L/C Issuer any payment in respect of the related Unreimbursed
Amount or interest thereon (whether directly from the Borrowers or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Revolving Credit Lender its Applicable
Percentage thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s L/C Advance was outstanding) in the same funds as those received by the Administrative Agent. 

(ii) If any payment received by the Administrative Agent for the account of an L/C Issuer pursuant to Section 2.03(c)(i) is required to
be returned under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by such L/C Issuer in its discretion), each Revolving Credit Lender shall pay to the Administrative Agent for the
account of such L/C Issuer its Applicable Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such 

  
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demand to the date such amount is returned by such Revolving Credit Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Revolving
Credit Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement. 
 (e)
Obligations Absolute. The obligation of the Borrowers to reimburse each L/C Issuer for each drawing under each Letter of Credit issued by it and to repay each L/C Borrowing 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 Borrowers or any Subsidiary 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), such L/C
Issuer 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) any payment by such 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 such 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; or 
 (v) 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 Borrowers or any Subsidiary. 

The Borrowers 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 Borrowers’ instructions or other irregularity, the Borrowers will promptly (but in any event within one (1) Business Day) notify the applicable L/C Issuer. The Borrowers shall be conclusively deemed to
have waived any such claim against each L/C Issuer and its correspondents unless such notice is given as aforesaid. 

  
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 (f) Role of L/C Issuers. Each Revolving Credit Lender and the Borrowers agree that, in
paying any drawing under a Letter of Credit, the applicable 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 Issuers, the Administrative Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of any L/C Issuer shall be liable to any Revolving Credit Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Revolving Credit Lenders or the Required Revolving
Credit Lenders, 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 Borrowers hereby assume 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 Borrowers’ 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 Issuers, the Administrative Agent,
any of their respective Related Parties nor any correspondent, participant or assignee of any L/C Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.03(e);
provided, however, that anything in such clauses to the contrary notwithstanding, the Borrowers may have a claim against an L/C Issuer, and such L/C Issuer may be liable to the Borrowers, to the extent, but only to the extent, of any
direct, as opposed to consequential or exemplary, damages suffered by the Borrowers which the Borrowers prove were caused by such L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any
Letter of Credit issued by it after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of such Letter of Credit. In furtherance and not in limitation of the foregoing, each
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 such 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) Intentionally Omitted. 

(h) Applicability of ISP. Unless otherwise expressly agreed by an L/C Issuer and the Borrowers with respect to a Letter of Credit issued
by such L/C Issuer (including any such agreement applicable to an Existing Letter of Credit), the rules of the ISP shall apply to each standby Letter of Credit. 

(i) Letter of Credit Fees. The Borrowers shall pay to the Administrative Agent for the account of each Revolving Credit Lender in
accordance with its Applicable Percentage a Letter of Credit fee (the “Letter of Credit Fee”) for each standby Letter of Credit equal to the Applicable Rate for Letters of Credit, stated as a percentage per annum times the daily
amount available to be drawn under such Letter of Credit; provided, 

  
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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 that issued such Letter of Credit pursuant to this Section 2.03 shall be payable, to the Revolving Credit Lenders that are non-Defaulting Lenders in accordance with
the upward adjustments in their respective Applicable Percentages allocable to such Letter of Credit pursuant Section 2.15(a)(iv), with the balance of such fee, if any, payable to such L/C Issuer for its own account with respect to the amount
of such fee allocable to such L/C Issuer’s Fronting Exposure arising from that Defaulting Lender, except to the extent such Fronting Exposure has been Cash Collateralized by a Borrower. 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) computed on a quarterly basis in arrears and (ii) due and payable on the
first Business Day after the end 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. Notwithstanding
anything to the contrary contained herein, upon the request of the Required Revolving Credit Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate. 

(j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuers. The Borrowers shall pay directly to the applicable L/C
Issuer for its own account a fronting fee (the “Fronting Fee”) with respect to each standby Letter of Credit issued by such L/C Issuer, in an amount equal to 0.125% per annum, computed on the daily amount available to be drawn under
such Letter of Credit on a quarterly basis in arrears, and due and payable on the first Business Day after the end 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. 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 Borrowers shall pay directly to each L/C Issuer for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of such L/C Issuer relating to
letters of credit as from time to time in effect. Such Fronting Fee, customary fees and standard costs and charges are due and payable on demand and are nonrefundable. 

(k) 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. 
 (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit issued or
outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Borrowers shall be obligated to reimburse the applicable L/C Issuer hereunder for any and all drawings under such Letter of Credit. The Borrowers
hereby acknowledge that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrowers, and that the Borrowers’ business derives substantial benefits from the businesses of such Subsidiaries. 

  
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 2.04 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 Revolving Credit Lenders set forth in this Section 2.04, to make loans (each such loan, a “Swing Line Loan”) to the Borrowers 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 the Applicable Percentage of the Outstanding Amount of Revolving Loans and L/C Obligations
of the Revolving Credit Lender acting as Swing Line Lender, may exceed the amount of such Revolving Credit Lender’s Commitment; provided, however, that after giving effect to any Swing Line Loan, (i) the Total
Revolving Credit Outstandings shall not exceed the Revolving Credit Commitments, and (ii) the aggregate Outstanding Amount of the Revolving Loans of any Revolving Credit Lender, plus such Revolving Credit Lender’s Applicable
Percentage of the Outstanding Amount of all L/C Obligations, plus such Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Revolving Credit Lender’s Revolving
Credit Commitment, and provided, further, that the Borrowers shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan. Within the foregoing limits, and subject to the other terms and conditions
hereof, the Borrowers may borrow under this Section 2.04, prepay under Section 2.05, and reborrow under this Section 2.04. Each Swing Line Loan shall be a Base Rate Loan. Immediately upon the making of a Swing Line Loan,
each Revolving Credit 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 Percentage times the amount of such Swing Line Loan. 
 (b) Borrowing Procedures. Each Swing Line Borrowing
shall be made upon the Borrowers’ 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
4:00 p.m. on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $1,000,000, 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 Borrowers. 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 5:00 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 proviso to the first sentence of
Section 2.04(a), or (B) that one or more of the applicable conditions specified in Section 4.02 is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than
5:00 p.m. on the 

  
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borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrowers at its office by crediting the account of the Borrowers on the books of
the Swing Line Lender in immediately available funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Swing Line Lender. 

(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 Borrowers (which hereby irrevocably
authorize the Swing Line Lender to so request on their behalf), that each Revolving Credit Lender make a Base Rate Loan in an amount equal to such Revolving Credit Lender’s Applicable 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 Revolving/Term 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 Revolving Credit Commitments and the conditions set forth in Section 4.02 (other than 4.02(c)). The Swing Line Lender
shall furnish the Borrowers with a copy of the applicable Revolving/Term Loan Notice promptly after delivering such notice to the Administrative Agent. Each Revolving Credit Lender shall make an amount equal to its Applicable Percentage of the
amount specified in such Revolving/Term Loan Notice available to the Administrative Agent in immediately available funds for the account of the Swing Line Lender at the Administrative Agent’s Office not later than 4:00 p.m. on the
day specified in such Revolving/Term Loan Notice, whereupon, subject to Section 2.04(c)(ii), each Revolving Credit Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrowers 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 Borrowing in accordance with Section 2.04(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
Revolving Credit Lenders fund its risk participation in the relevant Swing Line Loan and each Revolving Credit Lender’s payment to the Administrative Agent for the account of the Swing Line Lender pursuant to Section 2.04(c)(i)
shall be deemed payment in respect of such participation. 
 (iii) If any Revolving Credit 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 2.04(c) by the time specified in Section 2.04(c)(i), the Swing Line
Lender shall be entitled to recover from such Revolving Credit 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 greater of the Federal Funds Rate and a rate determined by the Swing Line Lender in accordance with banking industry rules on interbank compensation. A certificate of
the Swing Line Lender submitted to any Revolving Credit Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error. 

  
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 (iv) Each Revolving Credit Lender’s obligation to make Revolving Loans or to purchase and
fund risk participations in Swing Line Loans pursuant to 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 Revolving Credit Lender may have against the Swing Line Lender, the Borrowers or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, (C) any Revolving Credit Lender
being a Defaulting Lender or (D) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Revolving Credit Lender’s obligation to make Revolving Loans
pursuant to this Section 2.04(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 Borrowers to repay Swing Line Loans,
together with interest as provided herein. 
 (d) Repayment of Participations. 

(i) At any time after any Revolving Credit Lender has purchased and funded a risk participation in a Swing Line Loan, if the Swing Line Lender
receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Revolving Credit Lender its Applicable Percentage of such payment (appropriately adjusted, in the case of interest payments, to reflect the period
of time during which such Revolving Credit Lender’s risk participation was funded) 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 is required to be returned by
the Swing Line Lender under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by the Swing Line Lender in its discretion), each Revolving Credit Lender shall pay to the Swing Line Lender its
Applicable 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 Federal Funds Rate. The Administrative Agent will make such
demand upon the request of the Swing Line Lender. The obligations of the Revolving Credit 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 Borrowers for interest on
the Swing Line Loans. Until each Revolving Credit Lender funds its Base Rate Loan or risk participation pursuant to this Section 2.04 to refinance such Revolving Credit Lender’s Applicable Percentage of any Swing Line Loan, interest
in respect of such Applicable Percentage shall be solely for the account of the Swing Line Lender. 

  
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 (f) Payments Directly to Swing Line Lender. The Borrowers shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender. 
 2.05 Prepayments. 

(a) The Borrowers may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Loans (subject, in any
event, to Section 2.05(d) with respect to any prepayment of Term Loans) in whole or in part without premium or penalty; provided that (i) such notice must be received by the Administrative Agent not later than (A) 3:00 p.m.
three (3) Business Days prior to any date of prepayment of Eurodollar Rate Loans and (B) 3:00 p.m. on the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof; and (iii) any prepayment of Base Rate Loans shall be in a 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 specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid. The Administrative Agent will promptly notify each Lender of its receipt of each such
notice, and of the amount of such Lender’s Applicable Percentage (if any) of such prepayment. If such notice is given by the Borrowers, the Borrowers shall make such prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein; provided that if such notice indicates that such prepayment is to be funded with the proceeds of a refinancing of the Loans and Commitments, such notice may be revoked if such refinancing is not
consummated and such payment amount will not be due and payable. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to
Section 3.05. Each such prepayment shall be applied to the Loans of the Lenders indicated in such notices in accordance with their respective Applicable Percentages. 

(b) The Borrowers 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 (i) such notice must be received by the Swing Line Lender and the Administrative Agent not later than 3:00 p.m. on the date of the
prepayment, and (ii) 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 Borrowers, the Borrowers shall make such
prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. 
 (c) If for any reason
the Total Revolving Credit Outstandings at any time exceed the Revolving Credit Commitments then in effect, the Borrowers shall promptly (and, in any event, no later than the following Business Day) prepay the Revolving Loans and/or Cash
Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided, however, that the Borrowers shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(c) unless, after
the prepayment in full of the Revolving Loans, the Total Revolving Credit Outstandings exceed the Revolving Credit Commitments then in effect. 

  
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 (d) Prior to the end of the Lockout Period, to the extent any voluntary prepayment of Term Loans
reduces (or further reduces) the Outstanding Amount of Term Loans to an amount less than the Lockedout Cap such payment (but only to the extent of such reduction) shall be accompanied by the Yield Maintenance Premium (it being understood and agreed
that in the case of any voluntary prepayment (or any portion thereof) that does not cause the Outstanding Amount of Term Loans to be less than the Lockedout Cap, such prepayment (or such portion thereof) shall not be subject to the Yield Maintenance
Premium). At any time after the Lockout Period, the Borrowers may, upon notice to the Administrative Agent, from time to time voluntarily prepay Term Loans in whole or in part without premium or penalty. By way of example, if the Outstanding Amount
of Term Loans is $250,000,000 at the time a voluntary prepayment is made during the Lockout Period, and such prepayment is in the amount of $150,000,000, thereby reducing the Outstanding Amount of Term Loans to an amount equal to $100,000,000, (i) a
Yield Maintenance Premium shall be due on $66,666,666 of such $150,000,000 prepayment, and (ii) any and all further voluntary prepayments during the Lockout Period would need to be accompanied by the Yield Maintenance Premium. The Borrowers
acknowledge that the Yield Maintenance Premium is a bargained for consideration and is not a penalty. The Borrowers recognize that the Term Loan Lenders would incur substantial additional costs and expenses in the event of a prepayment of the
Lockedout Term Loans and that the Yield Maintenance Premium compensates the Term Loan Lenders for such costs and expenses (including without limitation, the loss of the Term Loan Lenders’ investment opportunity during the Lockout Period). The
Borrowers agree that the Term Loan Lenders shall not, as a condition to receiving the Yield Maintenance Premium, be obligated to actually reinvest the amount prepaid in any treasury obligation or in any other manner whatsoever. 

2.06 Termination or Reduction of Revolving Credit Commitments. 

The Borrowers may, upon notice to the Administrative Agent, terminate the Revolving Credit Commitments, or from time to time permanently reduce
the Revolving Credit Commitments; provided that the Revolving Credit Commitments may not be reduced below $100,000,000 (except in connection with a termination of the Revolving Credit Commitments and payment in full of the Obligations
thereunder) without the consent of (a) the Administrative Agent and (b) Wells Fargo (but solely, in the case of this clause (b), for so long as Wells Fargo is a Revolving Credit Lender hereunder and is a Syndication Agent); and,
provided further, that (i) any such notice shall be received by the Administrative Agent not later than 3:00 p.m. three (3) Business Days prior to the date of termination or reduction, (ii) any such partial reduction
shall be in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess thereof, (iii) the Borrowers shall not terminate or reduce the Revolving Credit Commitments if, after giving effect thereto and to any concurrent
prepayments hereunder, the Total Revolving Credit Outstandings would exceed the Revolving Credit Commitments, and (iv) if, after giving effect to any reduction of the Revolving Credit Commitments, the Letter of Credit Sublimit or the Swing Line
Sublimit exceeds the amount of the Revolving Credit Commitments, such Sublimit shall be automatically reduced by the amount of such excess. The Administrative Agent will promptly notify the Revolving Credit Lenders of any such notice of termination
or reduction of the 

  
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Revolving Credit Commitments. Any reduction of the Revolving Credit Commitments shall be applied to the Revolving Credit Commitment of each Revolving Credit Lender according to its Applicable
Percentage. All fees accrued pursuant to Section 2.09 until the effective date of any termination of the Revolving Credit Commitments shall be paid on the effective date of such termination. 

2.07 Repayment of Loans. 

(a) The Borrowers shall repay on the Revolving Credit Maturity Date the aggregate principal amount of Revolving Loans outstanding on such date.

 (b) The Borrowers shall repay to the Swing Line Lender each Swing Line Loan on the earlier to occur of (i) the date five
(5) Business Days after such Swing Line Loan is made (provided that the foregoing shall not impair the right of the Borrowers to request a Revolving Loan to be made on or prior to such date to repay such Swing Line Loan by
submitting a Revolving/Term Loan Notice to the Administrative Agent as provided in Section 2.02(a) (without regard to the minimum and multiples specified in Section 2.02(a)) and (ii) the Revolving Credit Maturity
Date. 
 (c) The Borrowers shall repay on the Term Loan Maturity Date the aggregate principal amount of Term Loans outstanding on such date.

 2.08 Interest. 
 (a)
Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurodollar 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; and
(iii) 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. 

(b) (i) If any amount of principal of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. 

(ii) If any amount (x) in respect of Revolving Loans or Swing Line Loans (other than principal of any Revolving Loan or Swing Line Loan)
payable by the Borrowers under any Loan Document is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Required Revolving Credit Lenders, such
amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws or (y) in respect of Term Loans (other than principal of any Term
Loan) payable by the Borrowers under any Loan Document is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Required Term Loan Lenders, such
amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. 

  
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 (iii) Upon the request of (x) the Required Revolving Credit Lenders, while any Event of
Default exists, the Borrowers shall pay interest on the principal amount of all outstanding Obligations in respect of Revolving Loans hereunder and (y) the Required Term Loan Lenders, while any Event of Default exists, the Borrowers
shall pay interest on the principal amount of all outstanding Obligations in respect of Term Loans hereunder, in each case at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable
Laws. 
 (iv) 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. 

2.09 Fees. In addition to certain fees described in subsections (i) and (j) of Section 2.03: 

(a) Intentionally Omitted. 
 (b)
Facility Fee. The Borrowers shall pay to the Administrative Agent for the account of each Revolving Credit Lender (other than any Revolving Credit Lender that is a Defaulting Lender) in accordance with its Applicable Percentage a facility fee
(the “Facility Fee”) equal to the applicable “Facility Fee Rate” set forth in the table below multiplied by the actual daily amount of the Aggregate Revolving Credit Commitments from the date hereof in the case of each
Revolving Credit Lender that is a party hereto on the Closing Date and from the effective date specified in the Assignment and Assumption pursuant to which it became a Revolving Credit Lender in the case of each other Revolving Credit Lender until
the last day of the Availability Period, payable quarterly in arrears on the last Business Day of each March, June, September and December, and on the last day of the Availability Period. The Facility Fee payable to the account of each Revolving
Credit Lender shall be calculated daily for each period for which the Facility Fee is payable during such period at the rate per annum set forth below: 
  

					
	 Credit Rating Level
	  	Facility Fee Rate	 
	 Credit Rating Level 1
	  	 	0.125	% 
	 Credit Rating Level 2
	  	 	0.15	% 
	 Credit Rating Level 3
	  	 	0.20	% 
	 Credit Rating Level 4
	  	 	0.25	% 
	 Credit Rating Level 5
	  	 	0.30	% 

  
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 The Facility Fee shall be determined by reference to the Credit Rating Level in effect from time
to time; provided, however, that no change in the “Facility Fee Rate” resulting from a change in the Credit Rating Level shall be effective until one Business Day after the date on which the Administrative Agent receives
written notice, pursuant to Section 6.03(e) or addressed to the Administrative Agent from the applicable Rating Agency, of a change in such Credit Rating Level or otherwise confirms such change through information made publicly available by
such Rating Agency. 
 (c) Other Fees. 

(i) The Borrowers shall pay to the Joint Lead Arrangers and the Administrative Agent for their own respective accounts fees in the amounts and
at the times specified in the applicable Fee Letter. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 

(ii) The Borrowers shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so
specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 
 2.10 Computation of
Interest and Fees. 
 (a) All computations of interest for Base Rate Loans (including Base Rate Loans determined by reference to the
Eurodollar Rate) shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid; provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear
interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error. 

(b) The parties understand that the Applicable Rate and certain fees set forth herein may be determined and/or adjusted from time to time based
upon certain financial ratios and/or other information to be provided or certified to the Lenders by the Borrowers (the “Borrower Information”). If it is subsequently determined that any such Borrower Information was incorrect (for
whatever reason, including without limitation because of a subsequent restatement of earnings by a Borrower) at the time it was delivered to the Administrative Agent, and if the Applicable Rate or applicable fees calculated for any period were lower
than they should have been had the correct information been timely provided, then, such interest rate and such fees for such period shall be automatically recalculated using correct Borrower Information. Administrative

  
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Agent shall promptly notify the Borrowers in writing of any additional interest and fees due because of such recalculation, and the Borrowers shall pay such additional interest or fees due to
Administrative Agent, for the account of each Lender, within five (5) Business Days of receipt of such written notice. Any recalculation of interest or fees required by this provision shall survive the termination of this Agreement, and this
provision shall not in any way limit any of Administrative Agent’s, any L/C Issuer’s, or any Lender’s other rights under this Agreement. 

2.11 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
Borrowers and the interest and payments thereon (provided that, in the event of a conflict between the accounts or records maintained by the Administrative Agent and those of any Lender, the accounts or records maintained by the
Administrative Agent shall control absent manifest error on the part of the Administrative Agent). Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrowers 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 Borrowers shall execute and deliver to such Lender (through the Administrative Agent) the applicable
Note(s), 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 and maturity of its Loans and payments with
respect thereto. 
 (b) In addition to the accounts and records referred to in subsection (a), each Revolving Credit 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 Revolving Credit Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

 (c) All Existing Notes held by Revolving Credit Lenders shall be deemed replaced as of the date hereof, and each Person party to the
Existing Credit Agreement in possession of an Existing Note shall promptly after the date hereof return such Existing Note to the Borrowers for cancellation. There shall not be deemed to have occurred, and there has not otherwise occurred, any
payment, satisfaction or novation of the Indebtedness evidenced by the Existing Credit Agreement and the Existing Notes, which Indebtedness is instead allocated among the Revolving Credit Lenders as of the date hereof in accordance with their
respective Applicable Percentages of the Aggregate Revolving 

  
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Credit Commitments, and is evidenced by this Agreement and any Revolving Note(s), and the Revolving Credit Lenders shall as of the date hereof make such adjustments to the outstanding Revolving
Loans of such Revolving Credit Lenders so that such outstanding Loans are consistent with their respective Applicable Percentages of the Aggregate Revolving Credit Commitments. 

2.12 Payments Generally; Administrative Agent’s Clawback. 

(a) General. All payments to be made by the Borrowers shall be made without condition or deduction for any counterclaim, defense,
recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrowers hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than 3:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as
provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office. All payments received by the Administrative Agent after 3:00 p.m. shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue. If any payment to be made by the Borrowers 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 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 and may, in reliance upon such assumption, make available to the Borrowers 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 Borrowers severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately
available funds with interest thereon, for each day from and including the date such amount is made available to the Borrowers 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 greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation and (B) in the case of a payment to be made by the Borrowers, the
interest rate applicable to Base Rate Loans. If the Borrowers 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 Borrowers the amount of
such interest paid by the Borrowers 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. Any payment by
the Borrowers shall be without prejudice to any claim the Borrowers may have against a Lender that shall have failed to make such payment to the Administrative Agent. 

  
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 (ii) Payments by Borrowers; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrowers prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuers hereunder that the Borrowers will not make such payment,
the Administrative Agent may assume that the Borrowers has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the applicable L/C Issuer, as the case may be, the amount due.
In such event, if the Borrowers have not in fact made such payment, then each of the Lenders or the applicable 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 such L/C Issuer, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the
Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. 

A notice by the Administrative Agent to any Lender or the Borrowers with respect to any amount owing under this subsection (b) shall be
conclusive, absent manifest error. 
 (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the Administrative
Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrowers 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 Revolving Credit Lenders hereunder to make Revolving Loans, to fund
participations in Letters of Credit and Swing Line Loans, of the Term Loan Lenders to make Term Loans and of the Lenders to make payments pursuant to Section 10.04(c) are several and not joint. The failure of any Revolving Credit Lender to make
any Revolving Loan or to fund any such participation, of any Term Loan Lender to make any Term Loan or of any Lender to make any payment under Section 10.04(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 Revolving Loan, to purchase its participation, to make its Term Loan or to make its payment under
Section 10.04(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. 

  
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 2.13 Sharing of Payments by Lenders. 

If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest
on any of the Loans made by it, or any participations in L/C Obligations or in Swing Line Loans held by it resulting in such Lender’s receiving payment of a proportion of the aggregate amount of such Loans or participations and accrued interest
thereon greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value)
participations in the Loans 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 principal of and accrued interest on their respective Loans and other amounts owing them, provided that: 

(a) 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 

(b) the provisions of this Section shall not be construed to apply to (x) any payment made by the Borrowers pursuant to and in accordance
with the express terms of this Agreement (including, for the avoidance of doubt, as this Agreement may be amended from time to time) (including the application of funds arising from the existence of a Defaulting Lender), (y) the application of Cash
Collateral as provided for in Section 2.14 or (z) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Revolving Loans or subparticipations in L/C Obligations or
Swing Line Loans to any assignee or participant, other than to the Borrowers or any Subsidiary thereof (as to which the provisions of this Section shall apply). 

Each Loan Party party hereto 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. 
 2.14 Cash Collateral. 

(a) Certain Credit Support Events. If an L/C Issuer has honored any full or partial drawing request under any Letter of Credit issued by
it and such drawing has resulted in an L/C Borrowing, then upon the request of the Administrative Agent, Borrowers shall promptly (but in any event within one (1) Business Day) Cash Collateralize the then Outstanding Amount of all L/C
Obligations; provided that so long as no Event of Default exists, any such Cash Collateral will be released to the Borrowers upon payment in full of such L/C Borrowing. Additionally, if, as of the Letter of Credit Expiration Date, any L/C
Obligation for any reason remains outstanding, the Borrowers shall immediately (i) Cash Collateralize the then Outstanding Amount of all L/C Obligations, or (ii) to the extent approved by the applicable L/C Issuer (to which
an L/C Obligation is owed) in its sole discretion, cause “back to back” letters of credit with respect to all outstanding Letters of Credit issued by such L/C Issuer to be issued. At any time there shall exist a Revolving Credit Lender
that is a Defaulting Lender, within one (1) Business Day following the written request of the Administrative Agent or any L/C Issuer or the Swing Line Lender (with a copy to the Administrative Agent), the Borrowers shall Cash
Collateralize the L/C Issuers’ Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to Section 2.15 and any Cash Collateral provided by such Defaulting Lender). 

  
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 (b) Grant of Security Interest. The Borrowers, and to the extent provided by any
Defaulting Lender, such Defaulting Lender, hereby grant to the Administrative Agent, for the benefit of the L/C Issuers and the Revolving Credit Lenders, a security interest in all such cash, deposit accounts and all balances therein and all
proceeds of the foregoing. Cash Collateral shall be maintained in blocked deposit accounts at KeyBank. 
 (c) Application.
Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 2.14 or Section 2.05, 2.15 or 8.02(c) in respect of Letters of Credit or Swing Line Loans shall be applied to the
satisfaction of the specific L/C Obligations, Swing Line Loans and obligations to fund participations therein (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) 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 any L/C Issuer’s Fronting Exposure or other obligations shall be released promptly following, and to the extent of, (i) the elimination or reduction 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 that, subject to Section 2.15 the Person providing Cash Collateral and the applicable L/C Issuer or Swing
Line Lender, as applicable, may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations. 

2.15 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 such Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law: 
 (i) Waivers and
Amendments. Such 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 Section 10.01. 

(ii) Reallocation of Payments. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the
account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.08 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 such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro

  
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rata basis of any amounts owing by such Defaulting Lender to any L/C Issuer or the Swing Line Lender hereunder; third, to Cash Collateralize the L/C Issuers’ Fronting Exposure with respect
to such Defaulting Lender in accordance with Section 2.14; fourth, as the Borrowers may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender 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 Borrowers, to be held in a deposit account and released pro rata in order to
(x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the L/C Issuers’ and/or the Swing Line Lender’s future Fronting Exposure with
respect to such Defaulting Lender with respect to future Letters of Credit and/or Swing Line Loans issued under this Agreement, in accordance with Section 2.14; sixth, to the payment of any amounts owing to the Lenders, the L/C Issuers
or the Swing Line Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the L/C Issuers or the Swing Line Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrowers as a result of any judgment of a court of competent jurisdiction obtained by any Borrower
against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such 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 such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of
Credit were issued at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C Borrowings 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 Borrowings owed to, such 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 Revolving Credit Commitments and Term Loan Commitments, as applicable, without giving effect to Section 2.15(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 2.15(a)(ii) shall be deemed paid to and redirected by
such Defaulting Lender, and each Lender irrevocably consents hereto. 
 (iii) Certain Fees. Such Defaulting Lender (x) shall not
be entitled to receive any Facility Fee pursuant to Section 2.09(b) for any period during which that Lender is a Defaulting Lender (and the Borrowers shall (A) be required to pay to each of the L/C Issuers and the Swing Line
Lender, as applicable, the amount of such fee allocable to its Fronting Exposure arising from that Defaulting Lender, except to the extent the Fronting Exposure arising from the Defaulting Lender has been reallocated pursuant to clause
(iv) below or Cash Collateralized by the Borrowers and (B) not be required to pay the remaining amount of such fee that otherwise would have been required to have been paid to that Defaulting Lender) and (y) shall
be limited in its right to receive Letter of Credit Fees as provided in Section 2.03(i). 

  
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 (iv) Reallocation of Participations 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 Revolving Credit Lenders that are non-Defaulting Lenders in accordance with their respective
Applicable Percentages (calculated without regard to such Defaulting Lender’s Revolving Credit 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 Borrowers shall have otherwise notified the Administrative Agent at such time, the Borrowers 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 Outstanding Amount of the Revolving Loans of such non-Defaulting Lender, plus such non-Defaulting Lender’s Applicable Percentage
of the Outstanding Amount of all L/C Obligations, plus such non-Defaulting Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans to exceed such non-Defaulting Lender’s Revolving Credit Commitment. Subject to Section 10.21, 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 (iv) above cannot, or can only partially, be effected, the Borrowers shall, without prejudice to any right or remedy available to it hereunder or under law, (x) first, unless such portion of the Swing Line Loans can
be refinanced by a Revolving Borrowing made only by non-Defaulting Lenders in accordance with Section 2.04(c)(i), 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 2.14. 

(b) Defaulting Lender Cure. If the Borrowers and the Administrative Agent (and, as to any Defaulting Lender that is a Revolving Credit
Lender, the Swing Line Lender and each L/C Issuer) agree in writing that a Lender is no longer 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 Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans to be held pro rata by the Lenders in accordance with their Applicable Percentages (without
giving effect to Section 2.15(a)(iv)), whereupon such 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 Borrowers
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 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. 

  
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 (c) New Swing Line Loans/Letters of Credit. So long as any Revolving Credit Lender is a
Defaulting Lender, (i) the Swing Line Lender shall not be required to fund any Swing Line Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swing Line Loan and (ii) no L/C Issuer shall
be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto. 

2.16 Extension of Initial Term Loan Maturity Date. 

The Borrower shall have the right and option to extend the Initial Term Loan Maturity Date to June 30, 2019, upon satisfaction of solely
the following conditions precedent, which must be satisfied at or prior to the effectiveness of any extension of the Initial Term Loan Maturity Date: 

(a) Extension Request. The Borrower shall deliver written notice of such request (the “Extension Request”) to the
Administrative Agent at least thirty (30) days prior to (but not more than one hundred twenty (120) days days prior to) the Initial Term Loan Maturity Date. 

(b) Payment of Extension Fee. The Borrower shall pay to the Administrative Agent for the pro rata accounts of the Term Loan Lenders in
accordance with the outstanding principal amount of their respective Term Loans an extension fee in an aggregate amount equal to 0.20% of the outstanding principal amount of the Term Loans on the Initial Term Loan Maturity Date, which fee shall,
when paid, be fully earned and non-refundable under any circumstances. 
 (c) No Default. On
the Initial Term Loan Maturity Date there shall exist no Default or Event of Default. 
 (d) Representations and Warranties. 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 Initial Term Loan Maturity Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, and except that 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 subsections (a) and (b), respectively, of Section 6.01. 

2.17 Increase in Commitments. 

(a) Increase in Commitments. 

(i) Request for Increase. Provided there exists no Default or Event of Default, upon notice to the Administrative Agent (which shall
promptly notify the Lenders), the Borrowers may from time to time, request an increase in the Aggregate Revolving Credit Commitments and/or the Aggregate Term Loan Commitments and/or request new Commitments of up to (for all such requests)
$200,000,000 (it being understood and agreed, for the avoidance of doubt, that the aggregate of all increases in the 

  
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Aggregate Revolving Credit Commitments and/or the Aggregate Term Loan Commitments and/or new Commitments pursuant to this Section 2.17 shall not exceed $200,000,000); provided that any
such request for an increase shall be in a minimum amount of $10,000,000. Such notice shall indicate the proposed Applicable Rate (or other applicable interest rate margins) for such new Commitments. In the event new Commitments are to be provided,
no consent of any Lender shall be required in connection with the issuance of any such new Commitments, regardless of whether the Applicable Rate (or other applicable interest rate margins) for such new Commitments or Loans made pursuant hereto is
less than or greater than that for any other Commitments or Loans hereunder. 
 (ii) Lender Elections to Increase. In no event shall
any Lender be obligated to provide an additional Commitment. 
 (iii) Additional Lenders. Increases in the Aggregate Revolving Credit
Commitments and/or the Aggregate Term Loan Commitments and/or new Commitments may be provided by Lenders or Eligible Assignees. Increases in the Aggregate Revolving Credit Commitments and/or the Aggregate Term Loan Commitments and/or new Commitments
may be effected pursuant to a Joinder Agreement or amendment to this Agreement in form and substance reasonably satisfactory to the Administrative Agent and its counsel. 

(iv) Effective Date and Allocations. If the Aggregate Revolving Credit Commitments and/or the Aggregate Term Loan Commitments are
increased or if new Commitments are provided in accordance with this Section, (x) the Administrative Agent, (y) Wells Fargo (but solely, in the case of this clause (y), for so long as Wells Fargo is a Lender hereunder and is a
Syndication Agent) and (z) the Borrowers shall determine the effective date (the “Increase Effective Date”) and the final allocation of such increase or new Commitments under this clause (a). The Administrative Agent
shall promptly notify the Borrowers and the Lenders of the final allocation of such increase or new Commitments and the Increase Effective Date. Any such increase or new Commitments may be drawn upon subject to the satisfaction of the applicable
conditions precedent set forth in Section 4.02. 
 (v) Conditions to Effectiveness of Increase. As a condition precedent
to such increase or new Commitments under this clause (a), the Borrowers shall deliver to the Administrative Agent a certificate of the Borrowers dated as of the Increase Effective Date signed by a Responsible Officer of the Borrowers
(i) certifying and attaching the resolutions adopted by each Borrower approving or consenting to such increase, and (ii) in the case of the Borrowers, certifying that, before and after giving effect to such increase, to the
knowledge of Borrowers (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 Increase Effective Date, except to the extent
that such representations and warranties specifically refer to an earlier date, in which case, to the knowledge of the Borrowers, they are true and correct in all material respects as of such earlier date, and except that for purposes of this
Section 2.17, 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) 

  
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no Default exists. In connection with any increase in the Aggregate Revolving Credit Commitments, the Borrowers shall prepay any Revolving Loans outstanding on the Increase Effective Date (and
pay any additional amounts required pursuant to Section 3.05) to the extent necessary to keep the outstanding Revolving Loans ratable with any revised Applicable Percentages arising from any nonratable increase in the Aggregate Revolving Credit
Commitments under this Section (which prepayments will not be on a pro rata basis with respect to the outstanding Commitments prior to the effectiveness of any such increase). Notwithstanding any provisions of this Agreement to the contrary, the
Borrowers may borrow from the Lenders providing such increase in the Commitments (on a non pro rata basis with Lenders not providing such increase) in order to fund such prepayment. 

(vi) Amendments. The Administrative Agent and the Borrowers may, without the consent of any Lenders, effect such amendments to this
Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the Administrative Agent and the Borrowers, to effect the increase in Commitments pursuant to this Section 2.17(a), including, without limitation,
establishing pricing, commitment fees and the maturity of any new Commitments and Loans, incorporation of a new revolving or term loan tranche and amendments in respect of borrowing and prepayment procedures for any new revolving or term loan
tranche. 
 (b) Conflicting Provisions. This Section 2.17 shall supersede any provisions in Sections 2.13 or 10.01 to
the contrary. 
 ARTICLE III. 

TAXES, YIELD PROTECTION AND ILLEGALITY 

3.01 Taxes. 
 (a)
Payments Free of Taxes. All payments by any Borrower hereunder and under any of the other Loan Documents shall be made free and clear of and without deduction or withholding for any Taxes, except as required by applicable Law. If any
applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to
make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by a Borrower or a
Guarantor shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings 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 deduction or withholding been made. 
 (b) Payment of Other Taxes by the
Borrowers. The Borrowers 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) Indemnification. 

(i) The Borrowers shall indemnify each Recipient, within 10 days after demand therefor (accompanied by reasonable back-up documentation), for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by such Recipient, and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such
payment or liability delivered to the Borrowers by a Lender or an 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 an L/C Issuer, setting forth in reasonable detail
the basis and calculation of such amounts, shall be conclusive absent manifest error. 
 (ii) Each Lender shall severally indemnify the
Administrative Agent, within 10 days after demand therefor, for (x) any Indemnified Taxes attributable to such Lender (but only to the extent that a Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes
and without limiting the obligation of Borrowers to do so), (y) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 10.06(d) relating to the maintenance of a Participant Register and (z) any
Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent 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 hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any
amount due to the Administrative Agent under this subsection. 
 (d) Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrowers to a Governmental Authority, the Borrowers 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. 
 (e)
Status of Lenders. 
 (i) Any Administrative Agent, L/C Issuer or Lender that is entitled to an exemption from or reduction of
withholding Tax with respect to payments hereunder or under any other Loan Document shall deliver to the Borrowers (with a copy to the Administrative Agent), at the time or times prescribed by applicable Law or reasonably requested by the Borrowers
or the Administrative Agent, such properly completed and executed documentation prescribed by applicable Law or reasonably requested by the Borrowers or the Administrative Agent as will permit such payments to

  
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be made without withholding or at a reduced rate of withholding. In addition, any Administrative Agent, L/C Issuer or Lender, if requested by the Borrowers or the Administrative Agent, shall
deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrowers or the Administrative Agent as will enable the Borrowers or the Administrative Agent to determine whether or not the Administrative Agent or such
L/C Issuer or 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 set forth in the immediately following clauses (ii)(A), (ii)(B) and (ii)(D)) 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 Borrower is a U.S. Person: 
 (A) any Lender that is a U.S. Person shall deliver to the
Borrowers 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 any Borrower or the Administrative Agent), an electronic copy
(or an original if requested by any Borrower or the Administrative Agent) of an executed IRS Form W-9 (or any successor form) 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 Borrowers 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 any Borrower or the
Administrative Agent), whichever of the following is applicable: 
 (1) 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, an electronic copy (or an original if requested by any Borrower or the Administrative Agent) of an executed IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest”
article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or
W-8BEN-E 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; 
 (2) an electronic copy (or an original if requested by any Borrower or the Administrative Agent) of an executed IRS
Form W-8ECI; 
 (3) 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 J-1 to the effect that such Foreign Lender is not a “bank”

  
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within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of any Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a
“controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) electronic copies (or originals if requested by any Borrower or the Administrative
Agent) of IRS Form W-8BEN or W-8BEN-E; or 

(4) to the extent a Foreign Lender is not the beneficial owner, an electronic copy (or an original if requested by any Borrower or the
Administrative Agent) of an executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit J-2 or Exhibit J-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
J-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 Borrowers 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 any Borrower or the Administrative Agent), an electronic copy (or an original if requested by any Borrower or the Administrative Agent) 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 Borrowers 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 Borrowers and the Administrative Agent at the time or times prescribed by applicable Law and at such time or times reasonably requested by the Borrowers 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 any Borrower or the Administrative Agent as may be necessary for the Borrowers 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. Solely for purposes
of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 
 For purposes of
determining withholding Taxes imposed under FATCA, from and after the effective date of this Agreement, the Borrowers and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Loans as not
qualifying as a “grandfathered obligation” within the meaning of Section 1.1471-2(b)(2)(i) of the United States Treasury Regulations. 

  
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 Each Lender agrees that if any form or certification it previously delivered expires or becomes
obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrowers and the Administrative Agent in writing of its legal inability to do so. 

(f) Treatment of Certain Refunds. If any party 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 pursuant to this Section 3.01 (including by the payment of additional amounts pursuant to this Section 3.01), it shall pay to the indemnifying party an amount equal to such refund
(but only to the extent of indemnity payments made under this Section 3.01 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this
subsection, in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this subsection the payment of which would place the indemnified party in a less favorable net after-Tax position than the
indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund has 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 indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person. 

(g) Survival. Each party’s obligations under this Section 3.01 shall survive the resignation or replacement of the
Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document. 

(h) Defined Terms. For purposes of this Section 3.01, the term “Lender” includes any L/C Issuer and the term
“applicable Law” includes FATCA. 
 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 Eurodollar Rate Loans, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of such
Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrowers through the Administrative Agent, any obligation of such Lender to make or continue Eurodollar Rate

  
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Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrowers that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, the Borrowers shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans,
either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans, immediately (or, so
long as no violation of applicable Law by such Lender would occur as a result thereof, within one (1) Business Day of the date such Lender may not lawfully continue to maintain such Eurodollar Rate Loans). Upon any such prepayment or
conversion, the Borrowers shall also pay accrued interest on the amount so prepaid or converted. 
 3.03 Inability to Determine Rates.

 If the Required Lenders determine that for any reason in connection with any request for a Eurodollar Rate Loan or a conversion to or
continuation thereof that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and reasonable means do not
exist for determining the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does not
adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrowers and each Lender. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be
suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the Borrowers may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar
Rate Loans or, failing that, will be deemed to have converted such request into a request for a Borrowing of or conversion to Base Rate Loans in the amount specified therein. 

3.04 Increased Costs; Reserves on Eurodollar 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)) or any 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 
 (iii) impose on any Lender or any L/C Issuer or the London interbank market any other condition, cost or expense
(other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein, 

  
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 and the result of any of the foregoing is to increase the cost to such Lender or other Recipient of making,
funding, converting into or continuing or maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender, L/C Issuer or other Recipient 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, L/C Issuer or other Recipient hereunder (whether of
principal, interest or any other amount) then, upon request of such Lender, L/C Issuer or other Recipient, the Borrowers will pay to such Lender, L/C Issuer or other Recipient, as the case may be, such additional amount or amounts as will compensate
such Lender L/C Issuer or other Recipient, as the case may be, for such additional costs incurred or reduction suffered. 
 (b) Capital
Requirements. If any Lender or any L/C Issuer determines that any Change in Law affecting such Lender or such L/C Issuer or any Lending Office of such Lender or such Lender’s or such L/C Issuer’s holding company, if any, regarding
capital or liquidity ratios or requirements has or would have the effect of reducing the rate of return on such Lender’s or such L/C Issuer’s capital or on the capital of such Lender’s or such 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 held by, such Lender, or the Letters of Credit issued by such L/C Issuer, to a level below that which such Lender or
such L/C Issuer or such Lender’s or such L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such L/C Issuer’s policies and the policies of such Lender’s or
such L/C Issuer’s holding company with respect to capital adequacy), then from time to time the Borrowers will pay to such Lender or such L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or such
L/C Issuer or such Lender’s or such L/C Issuer’s holding company for any such reduction suffered. 
 (c) Certificates for
Reimbursement. A certificate of a Lender or an L/C Issuer setting forth the amount or amounts necessary to compensate such Lender or such 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 Borrowers shall be conclusive absent manifest error. The Borrowers shall pay such Lender or such L/C Issuer, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof
(accompanied by reasonable back-up documentation). 
 (d) Delay in Requests. Failure or delay on the part of any Lender or L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender’s or such L/C Issuer’s right to demand such compensation, provided that the Borrowers shall not be required to
compensate a Lender or an 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 such L/C Issuer, as the case may be,
notifies the Borrowers of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or such 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, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof). 

  
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 (e) Reserves on Eurodollar Rate Loans. The Borrowers shall pay to each Lender, as long as
such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid
principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on
each date on which interest is payable on such Loan; provided, the Borrowers shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to
give notice 10 days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of such notice. 

3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrowers
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 Eurodollar Rate Loan on a day other than the last day of the Interest Period for
such Eurodollar Rate Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); 
 (b) any failure by the
Borrowers (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Eurodollar Rate Loan on the date or in the amount notified by the Borrowers; or 

(c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by the
Borrowers pursuant to Section 10.13 (other than an assignment by a Defaulting Lender); 
 including any loss or expense arising from
the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained (but excluding any loss relating to the Applicable Rate or anticipated profits). The
Borrowers shall also pay any customary administrative fees charged by such Lender in connection with the foregoing. 
 For purposes of calculating amounts
payable by the Borrowers to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Rate used in determining the Eurodollar Rate for such Loan by a matching deposit
or other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded. 

3.06 Mitigation Obligations; Replacement of Lenders. 

(a) Designation of a Different Lending Office. If any Lender requests compensation under Section 3.04, or the Borrowers are
required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such

  
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Lender shall 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, 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 to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrowers hereby agree to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment. 
 (b) Replacement of Lenders. If any Lender
requests compensation under Section 3.04, or if the Borrowers are required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, the Borrowers may replace such
Lender in accordance with Section 10.13. 
 3.07 Survival. All of the Borrowers’ obligations under this
Article III shall survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder. 

ARTICLE IV. 
 CONDITIONS
PRECEDENT TO THE EFFECTIVENESS OF THIS AGREEMENT AND CREDIT EXTENSIONS 
 4.01 Conditions of Effectiveness of this Agreement. The
effectiveness of this Agreement and the obligation of each L/C Issuer and each Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditions precedent: 

(a) The Administrative Agent’s receipt of the following, each of which shall be originals, telecopies or other electronic image (e.g.,
“PDF” or “TIF” via electronic mail) (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party or by each of the Lenders or solely in the case of clause
(v) below, special counsel to the Loan Parties, as applicable, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance reasonably
satisfactory to the Administrative Agent and each of the Lenders: 
 (i) originally executed counterparts of this Agreement and any
amendments or supplements to the Guaranty, the Pledge Agreements and the Intra-Company Loan Subordination Agreement; 
 (ii) an original
Revolving Note executed by the Borrowers in favor of each Revolving Credit Lender requesting a Revolving Note, an original Term Loan Note executed by the Borrowers in favor of each Term Loan Lender requesting a Term Loan Note and an original Swing
Line Note executed by the Borrowers in favor of the Swing Line Lender; 

  
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 (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 as of the date hereof 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 that each Loan Party is validly existing and in good standing in its jurisdiction of organization; 

(v) favorable opinions of each of Skadden, Arps, Slate, Meagher & Flom LLP, DLA Piper LLP (US), Ballard Spahr LLP, and Ice Miller
LLP, special counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to matters concerning the Loan Parties and the Loan Documents and in form and substance reasonably satisfactory to the Administrative Agent; 

(vi) a certificate of a Responsible Officer of each Loan Party either (A) attaching copies of all consents, licenses and approvals
required in connection with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force and
effect, or (B) stating that no such consents, licenses or approvals are so required; 
 (vii) a certificate signed by a Responsible
Officer of the Borrowers certifying (A) that the conditions specified in Sections 4.02(a) and (b) have been satisfied and (B) that there has been no event or circumstance since the date of the Audited
Financial Statements that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect; 

(viii) Intentionally Omitted; and 

(ix) a (A) duly completed Compliance Certificate as of the last day of the fiscal quarter of the Borrowers most recently ended prior to
the Closing Date (which shall, in any event, give pro forma effect to the Specified Acquisition and the Term Loans made on the Closing Date as if the Specified Acquisition had been consummated and the Term Loans had been made on the first day
of the applicable test period) and (B) solvency certificate in form and substance reasonably satisfactory to the Administrative Agent, in each case signed by a Responsible Officer of the Borrowers. 

(b) Any fees required to be paid hereunder on or before the Closing Date shall have been paid (or will be paid out of proceeds of a Borrowing
made hereunder on the Closing Date). 
 (c) Unless waived by the Administrative Agent, the Borrowers shall have paid (or will pay on the
Closing Date) all fees, charges and disbursements of counsel to the Administrative Agent to the extent invoiced at least one (1) Business Day prior to the Closing Date, plus such additional amounts of such fees, charges and disbursements as
shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between
the Borrowers and the Administrative Agent). 

  
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 Without limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto. 

4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request for Credit Extension (other than a
Revolving/Term Loan Notice requesting only a conversion of Revolving Loans and/or Term Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the following conditions precedent: 

(a) The representations and warranties of the Borrowers and each other Loan Party contained in Article V or any other Loan
Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects on and as of the date of such Credit Extension, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects to the knowledge of the Borrowers only as of such earlier date, and except that 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 clauses (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 applicable L/C Issuer or the Swing Line Lender
shall have received a Request for Credit Extension in accordance with the requirements hereof. 
 Each Request for Credit Extension (other
than a Revolving/Term Loan Notice requesting only a conversion of Revolving Loans or Term Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by the Borrowers shall be deemed to be a representation and warranty to the
knowledge of the Borrowers that the conditions specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of the applicable Credit Extension. 

  
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 ARTICLE V. 

REPRESENTATIONS AND WARRANTIES 

Each Borrower represents and warrants to the Administrative Agent and the Lenders that: 

5.01 Existence, Qualification and Power; Compliance with Laws. Each Loan Party (a) is duly organized or formed, validly existing and in
good standing under the Laws of the jurisdiction of its incorporation or organization except to the extent permitted by Section 6.05 or 7.04, (b) has all requisite corporate or other organizational power and
authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own 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, (c) is duly qualified and is licensed and 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, and (d) is
in compliance with all Laws; except in each case referred to in clause (b)(i), (c) or (d), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect. 

5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan Party of each Loan Document to which such
Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any
breach or contravention of, or the creation of any Lien (other than any Lien granted pursuant to the Loan Documents in favor of the Administrative Agent) 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, except to the extent that any of the foregoing referred to in clause (b) and (c) could not reasonably be expected to have a Material Adverse Effect. 

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 the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, except for
filings or recordings in respect of the Liens created pursuant to the Loan Documents and except as may be required, in connection with the disposition of any Collateral, by laws generally affecting the offering and sale of securities. 

5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and
delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or at law). 

  
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 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; (ii) fairly present the financial condition of the REIT 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; and (iii) together with the Form 10-K and Form 10-Q filings of
the REIT, show all material indebtedness and other liabilities, direct or contingent, of the Borrowers and their Subsidiaries as of the respective dates thereof, including liabilities for Taxes, material commitments, Contractual Obligations and
Indebtedness in accordance with GAAP or which are required to be disclosed in such financial statements under SEC rules and regulations. 

(b) The unaudited consolidated balance sheet of the Borrowers and their Subsidiaries dated March 31, 2017, and the related consolidated
statements of income or operations 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 Borrowers and their Subsidiaries as of the date thereof and their results of operations 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 the date of
the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect. 

(d) The consolidated financial projections of the REIT delivered pursuant to Section 6.01(c) were prepared in good faith on the basis of
the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasts, (it being understood that such projections are subject to uncertainties and contingencies, which may be beyond
the control of the Borrowers and their Subsidiaries and that no assurance is given by the Borrowers that such projections will be realized). 

5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrowers, threatened
or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against any Borrower or any of their Subsidiaries or against any of their properties or revenues that (a) questions the validity of this Agreement or
any other Loan Document, any action taken or to be taken pursuant hereto or thereto or any lien, security title or security interest created or intended to be created pursuant hereto or thereto, or (b) except as specifically disclosed in
Schedule 5.06, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

  
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 5.07 No Default. No member of the Borrowing Group 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 member of the Borrowing Group
has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, taken as a whole, 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 the Loan Parties and their Subsidiaries is subject to no Liens, other than Liens permitted by Section 7.01. 

5.09 Environmental Compliance. The Borrowers and their Subsidiaries have conducted a review of the effect of existing Environmental
Laws and known claims alleging potential liability or responsibility for violation of any Environmental Law on their respective businesses, operations and properties, and as a result thereof the Borrowers have reasonably concluded that, except as
specifically disclosed in Schedule 5.09, such Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

5.10 Insurance. The properties of each Borrower and its Subsidiaries are either (a) insured with financially sound and reputable
insurance companies that are not Affiliates of the Borrowers, in such amounts, or (b) self insured pursuant to a program reasonably satisfactory to the Administrative Agent (provided, that the self insurance program maintained in
accordance with Section 6.07 shall be deemed to be reasonably satisfactory to the Administrative Agent), in either case with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and
owning similar properties in geographic regions where such Borrower or the applicable Subsidiary operates. 
 5.11 Taxes. Borrowers
and their Subsidiaries have filed all Federal, state and other material Tax returns and reports required to be filed and have paid 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 diligently conducted and for which adequate reserves have been provided in accordance with GAAP.
There is no proposed Tax assessment against Borrowers or any of their Subsidiaries that would, if made, have a Material Adverse Effect. Neither any Loan Party nor any Subsidiary thereof is party to any material Tax sharing agreement other than as
disclosed on Schedule 5.11, as such Schedule may be updated from time to time. Borrowers may update Schedule 5.11 from time to time by providing written notice to Administrative Agent. 

  
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 5.12 ERISA Compliance. 

(a) Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state Laws. Each
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 Borrowers, nothing has occurred which would prevent, or cause the loss of, such qualification. The Borrowers and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Code,
and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan. 

(b) There are no pending or, to the best knowledge of the Borrowers, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect. 
 (c) (i) No ERISA Event has occurred or is reasonably expected to
occur; (ii) no Pension Plan has any material Unfunded Pension Liability; (iii) neither the Borrowers 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); (iv) neither the Borrowers 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; and (v) neither the Borrowers nor any ERISA Affiliate has
engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA. 
 5.13 Subsidiaries; Equity
Interests. As of the Closing Date, the Borrowers have no Subsidiaries other than those disclosed in Schedule 5.13, and Schedule 5.13 indicates all Subsidiaries of the Borrowers that, based on May 2017 financial information, are, as
of the Closing Date, projected to be Material Subsidiaries, and, as of the Closing Date, all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and nonassessable and are free and clear of all Liens
except as permitted under this Agreement. All of the outstanding Equity Interests in the Borrowers have been validly issued and are fully paid and nonassessable. 

5.14 Margin Regulations; Investment Company Act; REIT and Tax Status; Stock Exchange Listing. 

(a) Except for the repurchase of the shares of the REIT, no Borrower is engaged or will 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, in any case, in violation of Regulation U of the
FRB. Following the application of the proceeds of 

  
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each Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the assets (either of the Borrowers only or of the Borrowing Group) subject to the provisions of Section
7.01 or subject to any restriction contained in any agreement or instrument between the Borrowers, and any Lender or any Affiliate of any Lender relating to Indebtedness and within the scope of Section 8.01(e) will be margin stock. 

(b) None of the Borrowers, any Person Controlling the Borrowers, or any Subsidiary is or is required to be registered as an “investment
company” under the Investment Company Act of 1940. 
 (c) Except as disclosed to Administrative Agent, none of the Borrowers nor any
Wholly-Owned Subsidiary (except for AIMCO Assurance Ltd., a Bermuda corporation) is a “foreign person” within the meaning of Section 1445(f)(3) of the Code. 

(d) The REIT currently has REIT Status and has maintained REIT Status on a continuous basis since its formation. AIMCO is not an association
taxable as a corporation under the Code. The shares of common stock of the REIT are listed on the NYSE, American Stock Exchange or NASDAQ Stock Exchange. 

5.15 Disclosure. Each Borrower has disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or
other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect (which disclosure shall include all
matters disclosed in the REIT’s SEC filings). No report, financial statement, certificate or other information furnished by or on behalf of any Loan Party to the Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) 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, the Borrowers make no such representation or warranty with respect to projections,
industry or general economic information and other forward-looking information, except that with respect to projections and other forward-looking information, the Borrowers represent only that such projections and other forward-looking information
were prepared in good faith based upon assumptions believed to be reasonable at the time made, it being understood that no assurance is given that the results forecasted in such projections and other forward-looking information will in fact be
achieved and such projections and other forward-looking information are subject to significant uncertainties and contingencies many of which are beyond the control of the Borrowers and their Subsidiaries. 

5.16 Compliance with Laws. Each Borrower and each of its Subsidiaries are 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. 

  
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 5.17 Intellectual Property; Licenses, Etc. Each Borrower and each of its Subsidiaries own,
or possess the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other intellectual property rights that are reasonably necessary for the operation of their respective
businesses, without conflict with the rights of any other Person, except as could not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Borrowers, no slogan or other advertising device, product, process, method,
substance, part or other material now employed, or now contemplated to be employed, by the Borrowers or any Subsidiary infringes upon any rights held by any other Person, except as could not reasonably be expected to have a Material Adverse Effect.
No claim or litigation regarding any of the foregoing is pending or, to the knowledge of the Borrowers, threatened, which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

5.18 Sanctions Laws and Regulations. No Borrower, Guarantor, Subsidiary of any Borrowers or Guarantor or any of their respective
officers or, to the knowledge of any Borrower, their respective directors, employees, agents, advisors or Affiliates (a) is (or will be) a Person: (i) that is, or is owned or controlled by Persons that are: (x) the subject or target
of any Sanctions Laws and Regulations or (y) located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions Laws and Regulations, which includes, as of the Closing Date, Crimea, Cuba, Iran,
North Korea, Sudan and Syria or (ii) listed in any list related to or otherwise designated under any Sanctions Laws and Regulations maintained under OFAC (including, those Persons named on OFAC’s Specially Designated and Blocked Persons
list), the U.S. Department of State or by the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom or under the September 24, 2001 Executive Order Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (any such Person described in clauses (i) or (ii), a “Designated Person”) and (b) is not and shall not engage in any dealings or transactions
with a Designated Person in violation of any Sanctions Laws and Regulations. In addition, each Borrower hereby agrees to provide to the Lenders any additional information that a Lender deems reasonably necessary from time to time in order to ensure
compliance with any Sanctions Laws and Regulations or other applicable Laws concerning money laundering and similar activities. None of the Borrowers, nor any Guarantor or any Subsidiary or officer of any Borrower or any Guarantor or, to the
knowledge of any Borrower, any director, Affiliate, or employee of any Borrower or any Guarantor or any agent of any Borrower or any Guarantor acting on behalf of any Borrower or any Guarantor in connection with this credit facility, has engaged in
any activity or conduct which would violate any applicable anti-bribery, anti-corruption or anti-money laundering laws or regulations in any applicable jurisdiction, including without limitation, any Sanctions Laws and Regulations. 

5.19 EEA Financial Institutions. None of the Borrowers, any Guarantor, nor their respective Subsidiaries is an EEA Financial
Institution. 

  
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 ARTICLE VI. 

AFFIRMATIVE COVENANTS 
 So
long as any Lender shall have any Commitment hereunder, any Loan or other Obligation (other than contingent indemnification obligations) hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding (unless Cash
Collateralized in accordance with Section 2.14), the Borrowers shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02 and 6.03) cause each Subsidiary to: 

6.01 Financial Statements. Deliver to the Administrative Agent: 

(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 REIT (and upon
request, AIMCO) on a consolidated basis 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, including the REIT’s (and upon request, AIMCO’s) SEC Form 10-K for such period, all in reasonable detail and prepared in accordance with GAAP, such
consolidated statements to be audited and accompanied by a report and opinion of Ernst & Young or another independent certified public accountant 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; 
 (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 REIT (and upon request, AIMCO) on a consolidated basis 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 REIT’s (and upon request, AIMCO’s) fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the
previous fiscal year, all in reasonable detail, such consolidated statements to be certified by a Responsible Officer of the REIT (and upon request, AIMCO) as fairly presenting the financial condition, results of operations, shareholders’
equity and cash flows of the REIT (and upon request, AIMCO) in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; and 

(c) as soon as available, but in any event within 90 days after the beginning of each fiscal year, forecasts prepared by management of the
Borrowers for such fiscal year in form and detail reasonably satisfactory to Administrative Agent. 
 As to any information contained in materials furnished
pursuant to Section 6.02(d), the Borrowers shall not be separately required to furnish such information under clause (a) or (b) above, but the foregoing shall not be in derogation of the obligation of the Borrowers to furnish the
information and materials described in clauses (a) and (b) above at the times specified therein. 

  
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 6.02 Certificates; Other Information. Deliver to the Administrative Agent: 

(a) Intentionally Omitted; 
 (b)
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 Borrowers; 

(c) promptly after any request by the Administrative Agent or any Lender, copies of any detailed audit reports, management letters or
recommendations submitted to the board of directors (or the audit committee of the board of directors) of the REIT by independent accountants in connection with the accounts or books of the REIT or any Subsidiary, or any audit of any of them; 

(d) 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 REIT, and copies of all quarterly reports on Form 10-Q and current reports on Form 8-K which the REIT may file or be required to file with the
SEC under Section 13 or 15(d) of the Securities and Exchange Act, and not otherwise required to be delivered to the Administrative Agent pursuant hereto; 

(e) promptly, and in any event within five (5) Business Days after receipt thereof by any Borrower, copies of each material notice or
other material 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 Borrower (except to the extent prohibited by confidentiality obligations required by the SEC or any comparable agency); 

(f) promptly, such additional information regarding the business, financial or corporate affairs of the Borrowers 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, all such additional information to be in form and detail reasonably satisfactory to Administrative Agent;
provided that the Borrowers shall not be required to provide any information (i) in respect of which disclosure to the Administrative Agent or the Lenders (or their designated representative) is then prohibited by law or any
arms-length agreement with unaffiliated third parties binding on any Borrower or any of its Subsidiaries or (ii) is subject to attorney-client privilege or constitutes attorney work product; 

(g) promptly after the occurrence thereof, notice of the failure of the REIT to maintain REIT Status or of any existing Subsidiary of the REIT
to maintain its status as a qualified REIT subsidiary under the Code, if and to the extent required by applicable Law, such notice to be in form and detail reasonably satisfactory to Administrative Agent; and 

(h) concurrently with the delivery of the financial statements referred to in Sections 6.01(a) and (b), the REIT’s consolidated
financial covenant projections for the current and the succeeding three fiscal quarters, as prepared by the REIT’s chief financial officer (or other equivalent financial officer) and in a format and with such detail as Administrative Agent may
reasonably require. 

  
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 Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(d) (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 Borrowers
post such documents, or provide a link thereto on the Borrowers’ website on the Internet at the website address listed on Schedule 10.02 (as such address may be updated from time to time upon at least ten
(10) Business Days prior written notice to the Administrative Agent); or (ii) on which such documents are posted on the Borrowers’ 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), including the SEC’s EDGAR website; provided that: (i) the Borrowers shall deliver paper copies of such documents to the
Administrative Agent or any Lender upon its written request to the Borrowers to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender, and (ii) except with respect
to current reports on Form 8-K, the Borrowers shall notify the Administrative Agent (by telecopier or electronic mail) of the posting of any such documents (provided that such notices may be provided by
commercial third-party websites by electronic mail at the direction of the Borrowers). Documents required to be delivered pursuant to Section 6.02(b) may be delivered to the Administrative Agent by electronic image scan (e.g., “PDF”
or “TIF”) transmission. 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
Borrowers 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. 

The Borrowers and each Lender hereby acknowledge that (a) the Administrative Agent and/or the Joint Lead Arrangers will make available to
the Lenders and the L/C Issuers materials and/or information provided by or on behalf of the Borrowers hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks, SyndTrak or another similar
electronic system (the “Platform”) and (b) 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 Borrowers or their securities) (each, a “Public Lender”). The Borrowers hereby agree that (w) all such Borrower Materials (other than SEC Reports) 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 Borrowers shall
be deemed to have authorized the Administrative Agent, the Joint Lead Arrangers, the L/C Issuers and the Lenders to treat such Borrower Materials as either publicly available information or not material information (although it may be sensitive and
proprietary) with respect to the Borrowers or their securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information for purposes of
Section 10.07, they shall be subject to the terms of Section 10.07); (y) all SEC Reports and all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public
Investor;” and (z) the Administrative Agent and the Joint Lead Arrangers shall be entitled to treat any Borrower Materials (other than SEC Reports) that are not marked “PUBLIC” as being suitable only for posting on a portion of
the Platform not designated “Public Investor.” 

  
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 6.03 Notices. Promptly notify the Administrative Agent (which shall provide such notice to
the Lenders): 
 (a) of the occurrence of any Default, to the best knowledge of the Borrowers; 

(b) of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual Obligation of the Borrowers or any Subsidiary; (ii) any dispute, litigation, investigation, proceeding or suspension between the Borrowers or any
Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting the Borrowers or any Subsidiary, including pursuant to any applicable Environmental Laws;

 (c) of the occurrence of any ERISA Event; 

(d) of any material change in accounting policies or financial reporting practices by the REIT to the extent such change would have an effect
on calculations of financial covenants under this Agreement or the REIT’s Funds From Operations; and 
 (e) upon becoming aware of a
change in the Credit Rating given by a Rating Agency or any announcement that any rating is “under review” or that any such rating has been placed on a watch list or that any similar action has been taken by a Rating Agency. 

Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer of the Borrowers setting forth details of
the occurrence referred to therein and stating what action the Borrowers have taken and propose to take with respect thereto; provided that the Borrowers shall not be required to provide any information (i) in respect of which disclosure
to the Administrative Agent or the Lenders (or their designated representative) is then prohibited by law or any arms-length agreement with unaffiliated third parties binding on any Borrower or any of its Subsidiaries or (ii) is subject to
attorney-client privilege or constitutes attorney work product. Each notice pursuant to Section 6.03(a) shall describe with reasonable particularity any and all provisions of this Agreement and any other Loan Document that have been breached.

 6.04 Payment of Obligations. Pay and discharge as the same shall become due and payable, all its obligations and liabilities,
including (a) all Tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by the Borrowers or such Subsidiary; (b) all lawful claims 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, in each case to the extent the failure to do any of the foregoing could reasonably be expected to have a Material Adverse Effect. 

  
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 6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force
and effect the legal existence and good standing of (i) the Borrowers except in a transaction expressly permitted by Section 7.04 and (ii) Loan Parties (other than the Borrowers) under the Laws of the jurisdiction of its organization
except in a transaction permitted by Section 7.04 and except with respect to the Loan Parties (other than the Borrowers) where the failure to so preserve, renew and maintain would 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 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 properties and
equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear, force majeure, casualty events and transactions not prohibited by this Agreement excepted, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect; (b) make all necessary repairs thereto and renewals and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and
(c) use the standard of care typical in the industry in the operation and maintenance of its facilities, taken as a whole. 

6.07 Maintenance of Insurance. Cause the properties of each Borrower and its Subsidiaries to either be (a) insured with
financially sound and reputable insurance companies that are not Affiliates of the Borrowers, in such amounts, or (b) self insured pursuant to a program reasonably satisfactory to the Administrative Agent (it being understood and agreed that
the self insurance program of the Borrowers and their respective Subsidiaries in effect on the Closing Date (Borrower hereby representing to the Administrative Agent and the Lenders that a true, correct and complete copy of such self insurance
program has been provided to the Administrative Agent) is reasonably satisfactory to the Administrative Agent) which Administrative Agent may review not more frequently than once annually, in either case with such deductibles and covering such risks
as are customarily carried by companies engaged in similar businesses and owning similar properties in geographic regions where such Borrower or the applicable Subsidiary operates. The Borrowers shall provide the Administrative Agent with prior
written notice of not less than 30 days (or such other period as is agreed to in writing by the Administrative Agent in its sole discretion) of a material termination, material reduction, material lapse or material cancellation in the aggregate
insurance coverage of the Borrowing Group. 
 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 (i) such requirement of Law or order, writ, injunction or decree is being contested in good faith by
appropriate 

  
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proceedings diligently conducted; or (ii) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. The Borrowers shall maintain policies and
procedures designed to promote and achieve compliance by the Borrowers and their respective Subsidiaries with Sanctions Laws and Regulations. 

6.09 Books and Records. (a) Maintain proper books of record and account, in which correct entries in conformity with GAAP
consistently applied shall be made of financial transactions and matters involving the assets and business of the Borrowers and its Subsidiaries, as the case may be; and (b) maintain such books of record and account in material conformity with
all applicable requirements of any Governmental Authority having regulatory jurisdiction over the Borrowers and their Subsidiaries, as the case may be. 

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 officers and key employees, all at the reasonable
expense of the Borrowers and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance (no less than forty-eight (48) hours’) notice to the Borrowers; provided,
however, that when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrowers at any time during normal
business hours and without advance notice including engage in discussions relating to the Borrowers’ affairs, finances and accounts with the Borrowers’ directors and independent public accountants (provided that the Borrowers shall
be given prior notice of, and permitted to participate in, such discussion with accountants). Notwithstanding anything to the contrary in this Section 6.10, none of the Borrowers or any of their Subsidiaries will be required to disclose, permit
the inspection, examination or making of extracts, or discussion of, any document, information or other matter that (i) in respect of which disclosure to the Administrative Agent or the Lenders (or their designated representative) is then
prohibited by law or any arms-length agreement with unaffiliated third parties binding on any Borrower or any of its Subsidiaries or (ii) is subject to attorney-client privilege or constitutes attorney work product. 

6.11 Use of Proceeds. The proceeds of Revolving Loans and any additional Term Loans made pursuant to Section 2.17 will be
available to the Borrowers to fund working capital and other corporate purposes, including acquisitions, development and redevelopment of properties, Restricted Payments permitted pursuant to Section 7.06, and the refinancing of existing and
future Indebtedness, all in accordance with this Agreement. Proceeds of Term Loans made on the Closing Date shall be used, directly or indirectly, by the Borrowers solely for the purposes of financing the acquisition costs of buying out its 47%
joint venture partner in the Palazzo Portfolio, consisting of three multifamily assets known as Palazzo East, Palazzo West and Villas of Park La Brea located in Los Angeles, California (the “Specified Acquisition”), and for the
payment of fees and expenses related to this Agreement and the other Loan Documents, or consummation of the Specified Acquisition. 

  
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 6.12 Additional Guarantors. 

(a) Notify the Administrative Agent of any domestic Wholly-Owned Subsidiary of the Borrowers that directly (x) owns in fee simple
or ground leases any real property assets that are not encumbered by a Lien (each, an “Unencumbered Subsidiary”) or (y) owns assets that are projected to generate an amount of Net Operating Income (without giving effect
to Net Operating Income of any Subsidiary owned by such Wholly-Owned Subsidiary) equal to or greater than 2% of the Net Operating Income of AIMCO for the next calendar quarter (each, a “Material Subsidiary”; each Unencumbered
Subsidiary and each Material Subsidiary herein referred to as a “Bottom Tier Subsidiary”), and, subject to the remainder of this Section 6.12(a), promptly thereafter (and in any event within 60 days (or such longer period as is
agreed to in writing by the Administrative Agent in its sole discretion)), cause such Person (other than another Borrower) to (i) become a Guarantor by executing and delivering to the Administrative Agent a counterpart of the Guaranty or such
other document as the Administrative Agent shall deem appropriate for such purpose and (ii) deliver to the Administrative Agent the documents referred to in clauses (iii) and (iv) of Section 4.01(a) and, if required by
the Administrative Agent, 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 clause (i) of this
Section 6.12(a)), all in form, content and scope reasonably satisfactory to the Administrative Agent. If a Bottom Tier Subsidiary is prohibited from providing a Guaranty by Contractual Obligation, Organization Documents or applicable
Law, then no Guaranty from such Subsidiary shall be required, and, subject to the remainder of this Section 6.12(a), the Borrowers shall cause each domestic Wholly-Owned Subsidiary which is not then a Guarantor and which owns an Equity
Interest in the Bottom Tier Subsidiary (each, a “Second Tier Subsidiary”) to instead execute and deliver the Guaranty. If a Second Tier Subsidiary is prohibited from providing a Guaranty by Contractual Obligation, Organization
Documents or applicable Law, then no Guaranty from such Subsidiary shall be required, and, subject to the remainder of this Section 6.12(a) the Borrowers shall cause each domestic Wholly-Owned Subsidiary which is not then a Guarantor and
which owns an Equity Interest in the Second Tier Subsidiary to instead execute and deliver the Guaranty (to the extent such guaranty is not prohibited by Contractual Obligation, Organization Documents or applicable Law). If a Bottom Tier Subsidiary
is a Wholly-Owned Subsidiary of one or more existing Guarantors, and there is no intervening debt obligation between such Subsidiary and such Guarantor(s), then no Guaranty from such Bottom Tier Subsidiary shall be required. 

(b) With respect to any Wholly-Owned Subsidiary that becomes a Guarantor pursuant to Section 6.12(a) (other than any Unencumbered
Subsidiary unless and until it qualifies as a Material Subsidiary) and promptly after such Wholly-Owned Subsidiary becomes a Guarantor (or, in the case of any Unencumbered Subsidiary which was not a Material Subsidiary at the time it became a
Guarantor, promptly after such Unencumbered Subsidiary qualifies as a Material Subsidiary), and in any event within 20 days thereof (or such longer period as is agreed to in writing by the Administrative Agent in its sole discretion), the Borrowers
shall cause the Stock or other Equity Interest in such Wholly-Owned Subsidiary that becomes a Guarantor to be pledged to the Administrative Agent for the benefit of the Lenders as Collateral under this Agreement and each Pledge

  
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Agreement (to the extent not prohibited by Contractual Obligation or Organization Documents). Borrowers or any applicable Subsidiary (to the extent not prohibited by Contractual Obligation or
Organization Documents) shall execute and/or deliver to the Administrative Agent (i) such amendments or joinders to the Pledge Agreements (or if such Person has not previously executed a Pledge Agreement, then a new Pledge Agreement) as the
Administrative Agent deems reasonably necessary or desirable to grant to the Administrative Agent for the benefit of the Lenders a perfected first priority security interest in the Stock or other Equity Interest of such new Guarantor in accordance
with the Pledge Agreements and deliver to the Administrative Agent the certificates representing such Stock or Equity Interest (to the extent certificated), together with undated stock powers or other appropriate instruments of transfer requested by
the Administrative Agent, in blank, executed and delivered by a duly authorized officer and (ii) the documents referred to in clauses (iii) and (iv) of Section 4.01(a) and, if required by Administrative Agent, 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 clause (i) of this Section 6.12(b)). 

6.13 Intra-Company Debt. Intra-Company Debt (excluding a de minimis amount thereof not to exceed $250,000) owed by the Borrowers or any
Guarantor shall at all times be subordinated in right of payment to the payment in full of the Obligations in accordance with the terms of the Intra-Company Loan Subordination Agreement. 

ARTICLE VII. 
 NEGATIVE
COVENANTS 
 So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation (other than contingent
indemnification obligations) hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding (unless Cash Collateralized in accordance with Section 2.14), each Borrower shall not, nor shall it permit any
Subsidiary to, directly or indirectly: 
 7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, other than the following (and other than Liens in favor of Borrower or Guarantor and Liens securing Indebtedness permitted under Section 7.11(i)); provided that in no event may
the Negative Pledge Assets be subject to any such Liens (other than inchoate Liens of the type described in clause (c)): 
 (a) Liens
pursuant to any Loan Document; 
 (b) Liens existing on the date hereof and listed on Schedule 7.01 and any renewals or extensions
thereof; 
 (c) Liens for Taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted,
if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP; 

  
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 (d) carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 60 days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate
reserves with respect thereto in accordance with GAAP are maintained on the books of the applicable Person; 
 (e) pledges or deposits in the
ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA; 

(f) deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety bonds
(other than bonds related to judgments or litigation), performance bonds and other obligations of a like nature incurred in the ordinary course of business; 

(g) easements, rights-of-way, restrictions and other similar
encumbrances affecting real property in the ordinary conduct of the business of the applicable Person; 
 (h) Liens securing judgments for
the payment of money not constituting an Event of Default under Section 8.01(h) or securing appeal or other surety bonds related to such judgments; 

(i) statutory, contractual or common law landlords’ Liens under leases to which any Borrower or any Subsidiary thereof is a party; 

(j) Liens securing reimbursement obligations with respect to letters of credit and banker’s acceptances which encumber only documents and
other property relating to such letters of credit and the products and proceeds thereof; 
 (k) Liens arising solely by virtue of any
statutory or common law provision relating to banker’s liens, rights of setoff or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depository institution; provided that (i) such deposit
account is not a dedicated cash collateral account and is not subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Federal Reserve Board, and (ii) such deposit account is
not intended by the depositor to provide collateral to the depository institution as security for Indebtedness for borrowed money; 
 (l)
Liens securing Indebtedness permitted under Section 7.03(d), (e), (g), (h), (i), (j) or (o) or Section 7.11(i); provided, that in the case of any Liens securing Indebtedness permitted under
Section 7.03(o), such Liens relate and attach only to the insurance policies or the proceeds thereof, or deposits made as security for the obligations thereunder, to the extent of any unpaid premium; 

(m) Liens supporting purchase options or obligations and Guarantees not prohibited by this Agreement; 

  
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 (n) Liens on property of a Person which becomes a Subsidiary of any Borrower or any Subsidiary
thereof after the date hereof and Liens existing on property at the time of acquisition thereof (and any refinancing or replacement of any such Liens); provided that (i) such Liens existed at the time such Person becomes a Subsidiary of
any Borrower or any Subsidiary thereof or at the time such property was acquired and were not incurred or otherwise created in anticipation thereof, and (ii) any such Lien is not expanded to cover any other property of such Person after
the time such Person becomes a Subsidiary of any Borrower or any Subsidiary thereof; 
 (o) licenses, sublicenses, leases or subleases
granted to other Persons in the ordinary course of business not materially interfering with the conduct of the business of the Loan Parties, taken as a whole; 

(p) Intentionally Omitted; 
 (q)
Liens arising from precautionary UCC financing statement filings regarding operating leases entered into by any Borrower or any Subsidiary thereof; and 

(r) Liens arising from sale-leaseback transactions. 

7.02 Investments. Make any Investments, except: 

(a) Investments held by any Borrower or any of its Subsidiaries in the form of Cash, Cash Equivalents or short-term marketable securities; 

(b) Investments of the Borrowers in any Subsidiary or any other Borrower, Investments of any Subsidiary in the Borrowers or in another
Subsidiary and Investments in any Person that, as a result of or in connection with such Investment, becomes or will become a Subsidiary of a Borrower; 

(c) 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 or received in respect of delinquent accounts or in connection with the bankruptcy or
reorganization of account debtors or other obligors or in settlements of disputes with obligors, in each case to the extent reasonably necessary in order to prevent or limit loss; 

(d) Guarantees permitted by Section 7.03; 

(e) Investments in Non-Core Assets; 

(f) Investments in Development Assets; 

(g) Investments in Non-Controlled Entities; 

(h) Investments existing on the date hereof; 

  
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 (i) Investments consisting of advances to officers, directors and employees of the Borrowers and
their Subsidiaries for travel, entertainment, relocation and similar ordinary business purposes; 
 (j) Investments permitted by
Section 7.04; 
 (k) Investments in Intra-Company Debt; 

(l) Investments in respect of Swap Contracts permitted under Section 7.03(d); 

(m) Investments in the ordinary course of the Borrowers and their Subsidiaries’ business not otherwise permitted under this
Section 7.02, in an aggregate amount at any time outstanding not to exceed $10,000,000 (it being understood that Investments in real estate secured mortgages shall not be considered “in the ordinary course” of the Borrowers and
their Subsidiaries’ business); 
 (n) Investments in multi-family apartment projects (including those with de minimis commercial
aspects) in fee simple or leasehold interests therein or partnership, joint venture interests or other Investments (including capital contributions or partner loans) in Persons that directly or indirectly own interests in multi-family apartment
projects (including those with de minimis commercial aspects) and other real property acquired in connection with any such Investment that the Borrowers or the applicable Subsidiary intend to Dispose of as soon as commercially reasonable; 

(o) Investments (including debt obligations and Equity Interests) received upon the foreclosure with respect to any secured Investment or other
transfer of title with respect to any secured Investment or in connection with the bankruptcy, reorganization or other restructuring of any obligor under Investments held by any Borrower or any Subsidiary of the Borrowers; and 

(p) promissory notes and other noncash consideration received in connection with the sale of a Subsidiary or from the sale of assets in a
transaction not prohibited hereunder. 
 7.03 Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:

 (a) Indebtedness under the Loan Documents; 

(b) (i) Indebtedness outstanding on the date hereof and listed on Schedule 7.03(b)(i) and any refinancings, refundings, renewals or
extensions thereof, and (ii) all cross-collateralized and cross-defaulted Indebtedness outstanding on the date hereof and listed on Schedule 7.03(b)(ii) and any refinancings, refundings, renewals or extension thereof; 

(c) Guarantees by any Borrower or any Subsidiary in respect of Indebtedness otherwise permitted hereunder of the Borrowers or any Subsidiary;

  
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 (d) obligations (contingent or otherwise) of the Borrowers or any of their Subsidiaries 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 liabilities, commitments,
investments, assets, or property held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person, and not for purposes of speculation or taking a “market view”; and (ii) such Swap
Contract does not contain any provision exonerating the non-defaulting party from its obligation to make payments on outstanding transactions to the defaulting party; 

(e) Indebtedness in respect of capital leases and purchase money obligations for fixed or capital assets; 

(f) Intra-Company Debt; 
 (g)
Recourse Indebtedness of the Borrowers, the Guarantors and their Subsidiaries (whether secured or unsecured) so long as the Borrowing Group’s Share (excluding the Commitments and the Total Outstandings) does not exceed the limitation set forth
in Section 7.11(h); 
 (h) secured Indebtedness of the Borrowers, the Guarantors and their Subsidiaries which is not Recourse
Indebtedness of the Borrowers, the Guarantors or any of their Subsidiaries; 
 (i) Indebtedness of the Borrowers and their Subsidiaries
consisting of “exceptions to nonrecourse” guaranties of non-recourse Indebtedness otherwise permitted under this Section 7.03 or of other Indebtedness permitted under this
Section 7.03; provided, that, “exceptions to non-recourse” shall include the types of additional exceptions customarily required by Federal National Mortgage Association or Federal
Home Loan Mortgage Corporation from time to time in their standard form loan documentation and customary contingent environmental indemnities required in connection with Non-Recourse Indebtedness permitted
hereunder; 
 (j) Indebtedness in respect of performance bonds, bid bonds, appeal bonds, surety bonds and similar obligations and
trade-related letters of credit, in each case, provided in the ordinary course of business, and any extension, renewal or refinancing thereof to the extent not provided to secure the repayment of other Indebtedness; 

(k) Indebtedness under bonds supporting utility deposits or insurance or other comparable security deposits or property taxes, in each case
incurred in the ordinary course of business; 
 (l) Indebtedness arising from the honoring of a check, draft or similar instrument against
insufficient funds; 
 (m) Intentionally Omitted; 

  
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 (n) customary title company indemnities required in connection with Non-Recourse Indebtedness permitted hereunder, Dispositions and acquisitions of property not prohibited hereunder; 

(o) Indebtedness consisting of the financing of insurance premiums or otherwise arising in connection with insurance arrangements of the
Borrowers or any of their Subsidiaries in the ordinary course of business; and 
 (p) endorsements for collection or deposit in the ordinary
course of business. 
 7.04 Fundamental Changes. Merge or consolidate with or into another Person, except that, so long as no Default
exists or would result therefrom: 
 (a) any Subsidiary may merge or consolidate with (i) any Borrower, provided that such
Borrower shall be the continuing or surviving Person, (ii) any one or more other Subsidiaries, provided that in the event one or more of such Subsidiaries is (x) a Guarantor, the continuing or surviving Person shall be a
Guarantor or shall become a Guarantor simultaneously with such merger or consolidation or (y) a “Pledgor” under a Pledge Agreement, the continuing or surviving Person shall be such Pledgor or shall become a Pledgor promptly
after such merger or consolidation (and in any event within 20 days or such longer period as is agreed to in writing by the Administrative Agent in its sole discretion), or (iii) any Borrower may merge or consolidate with another
Borrower; 
 (b) Subsidiaries of the Borrowers may engage in reverse mergers or internal reorganizations whereby a Subsidiary or Subsidiaries
merge into or with one or more Subsidiaries of the Borrowers or any Guarantor or any combination thereof; provided that in the event one or more of such Subsidiaries is (x) a Guarantor, the continuing or surviving Person shall be a
Guarantor or shall become a Guarantor simultaneously with such merger or reorganization or (y) a “Pledgor” under a Pledge Agreement, the continuing or surviving Person shall be such Pledgor or shall become a Pledgor promptly after
such merger or reorganization (and in any event within 20 days or such longer period as is agreed to in writing by the Administrative Agent in its sole discretion); and 

(c) any Borrower or any Subsidiary of any Borrower may merge, or consolidate with another Person; provided that each of the following
conditions are satisfied: (A) in the event one or more of such Subsidiaries (x) is a Guarantor, the continuing or surviving Person shall be a Guarantor, unless such Guarantor is released, in accordance with the terms of the Loan
Documents, from its obligations under the Guaranty in connection with a sale of such Guarantor or (y) is a “Pledgor” under a Pledge Agreement, the continuing or surviving Person shall be a Pledgor or shall become a Pledgor
promptly after such merger or consolidation (and in any event within 20 days), unless the Liens granted by it under such Pledge Agreement are released, in accordance with the terms of the Loan Documents, in connection with a sale of such Pledgor;
(B) Borrowers certify to Administrative Agent that (1) if a Borrower is a party to such merger or consolidation, such Borrower will be the surviving Person of such merger; (2) to

  
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the best knowledge of the Borrowers, prior to the consummation of the transaction, the transaction will not cause the Borrowers to be in breach of the representations and warranties of this
Agreement and the other Loan Documents; and (3) the transaction will not cause the Borrowers to be in breach of the covenants of this Agreement and the other Loan Documents, including financial covenants, after the consummation thereof; and
(C) the Borrowers provide the Administrative Agent with a pro forma Compliance Certificate that demonstrates that after the consummation of the proposed transaction the Borrowers will be in compliance with the financial covenants
in this Agreement. 
 7.05 Intentionally Omitted. 

7.06 Restricted Payments. Declare or make any Restricted Payment, except that: 

(a) each Subsidiary may make Restricted Payments to the Borrowers, the Guarantors or any Subsidiary of the Borrowers and any other Person that
owns an Equity Interest in such Subsidiary, ratably, in the case of such other Persons that are not Borrowers or Subsidiaries, according to their respective holdings of the type of Equity Interest in respect of which such Restricted Payment is being
made; and each Borrower may make Restricted Payments to any other Borrower or any Subsidiary that owns an Equity Interest in such Borrower; 

(b) the Borrowers and each Subsidiary may declare and make dividend payments or other distributions to the extent paid or payable solely in the
common stock or other common Equity Interests of such Person; provided that the limitations set forth in this clause (b) shall not prohibit the making of cash payments in connection with any dividend or other distribution paid or payable
in common stock or other common Equity Interests of such Person so long as such cash payment is not otherwise prohibited by the terms of the Loan Documents; 

(c) the Borrowers and each Subsidiary may purchase, redeem or otherwise acquire any Equity Interests of the Borrowers or any Subsidiary;
provided, that, at the time or as a result thereof there shall exist no Default or Event of Default. Notwithstanding the foregoing, in no event may the Commitment be used to fund the purchase, redemption or other acquisition of REIT common
stock, except to the limited extent that if Net Disposition Proceeds which otherwise would be permitted to be used to purchase, redeem or otherwise acquire such common stock and are designated to be so used but for an interim period are instead used
to pay down the Revolving Loans, then an equal amount of the Commitment may be borrowed (in accordance with this Agreement) to purchase, redeem or otherwise acquire such common stock for a period ending 60 days after such repayment; and 

(d) the Borrowers and each Subsidiary may declare or make dividends and distributions (excluding those dividends and distributions otherwise
permitted under this Section 7.06) in an aggregate amount that do not exceed the greater of (i) during any four consecutive fiscal quarter period for which financials are available, 95% of Funds From Operations for such four
consecutive fiscal quarter period, and (ii) with respect to any tax year of the REIT, such amount as may be necessary for the REIT to maintain 

  
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REIT Status for such tax year; provided that, notwithstanding the foregoing, the Borrowers may also make Restricted Payments (so long as no Default exists or would arise as a result of
such Restricted Payment) in an amount equal to the amount that would need to be distributed to all of the Borrowers’ partners or shareholders in order for the REIT to make the minimum distributions required to be distributed to its shareholders
under the Code (A) to avoid the payment of taxes imposed under Code Section 857(b)(1) and 4981 of the Code, and (B) to avoid the payment of taxes imposed under Section 857(b)(3) of the Code. 

Nothing in Sections 7.06(a), (b) (c) or (d) shall prohibit (A) any Borrower or any Subsidiary of any Borrower from making
tender offers for or otherwise acquiring for value any Equity Interests, now or hereafter outstanding, of any Borrower or any Subsidiary of any Borrower which were not issued by such acquiring Borrower or Subsidiary or (B) any Restricted
Payment by any Person pursuant to such Person’s Organization Documents, including any Restricted Payment funded with proceeds from Dispositions of assets. 

7.07 Change in Nature of Business. Engage in any material line of business substantially different from those lines of business
conducted by the Borrowers and their Subsidiaries on the date hereof or any business substantially related or incidental or ancillary thereto. 

7.08 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate of the Borrowers, whether or not in the
ordinary course of business, other than (a) any transaction not otherwise prohibited by this Agreement, (b) transactions on fair and reasonable terms substantially as favorable to the Borrowers or such Subsidiary as would be obtainable by
the Borrowers or such Subsidiary at the time in a comparable arm’s length transaction with a Person other than an Affiliate, (c) transactions between or among Borrowers and their respective Subsidiaries, (d) employment, compensation
and indemnification arrangements with officers and directors (or managers or similar governing officers) of Borrowers and their respective Subsidiaries, (e) fees payable in connection with directors’ fees and services rendered to the board
of directors (or similar governing body) of the Borrowers and their respective Subsidiaries and (f) loans and advances to officers and directors (or managers or similar governing officers) of Borrowers and their respective Subsidiaries.

 7.09 Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that
(a) limits the ability of any Wholly-Owned Subsidiary to make Restricted Payments to the Borrowers or any Guarantor or to otherwise transfer property to the Borrowers or any Guarantor, except for (A) any restrictions existing under or
pursuant to any Indebtedness permitted under Section 7.03 or any Liens permitted under Section 7.01, (B) customary provisions in leases, subleases, licenses and other contracts restricting the assignment thereof,
(C) any restriction existing by reason of applicable Law, (D) restrictions in or contemplated by any Borrower’s, any Subsidiary’s or any Non-Controlled Entities’ Organization
Documents, or (E) restrictions in contracts for sales, management, development or Dispositions of property not prohibited hereby; provided, that, such restrictions relate only to the property being sold, managed, developed or Disposed
of. 

  
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 7.10 Use of Proceeds; Etc. Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately: 
 (a) to purchase or carry margin stock (within the meaning of
Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose, in each case, in violation of Regulation U of the FRB; provided,
that the Borrowers may use the proceeds of Credit Extensions to repurchase the shares of the REIT; or 
 (b) to lend, contribute or otherwise
make available such proceeds to any Guarantor, Subsidiary, Affiliate or other Person (i) in furtherance of an offer, payment, promise to pay or authorization of payment or giving of money or anything else of value to any Person in violation of
applicable Sanctions Laws and Regulations, (ii) in any other manner that would result in a violation of applicable Sanctions Laws and Regulations by any party to this Agreement, or (iii) in any manner that would cause the
Borrowers, the Guarantors or any of their respective Subsidiaries to violate the United States Foreign Corrupt Practices Act. 

Furthermore, none of the funds or assets of the Borrowers or Guarantors that are used to pay any amount due pursuant to this Agreement shall
constitute funds obtained from transactions with Designated Persons or countries which are themselves the subject of territorial sanctions under applicable Sanctions Laws and Regulations, in each case in violation of Sanctions Laws and Regulations.

 7.11 Financial Covenants. 

(a) Permit the Fixed Charge Coverage Ratio to be less than 1.40:1.00; 

(b) Intentionally Omitted; 
 (c)
Permit the Secured Indebtedness Ratio to exceed 0.55:1.00; 
 (d) Permit the Leverage Ratio to exceed 0.60:1.00; provided,
however, that for purposes of calculating the Leverage Ratio pursuant to this Section 7.11(d), the REIT or the Borrowers may elect for any one (1) period (but only one (1) period during the term of this Agreement)
of up to two (2) consecutive fiscal quarters during which the Leverage Ratio may exceed 0.60:1.00 but may not exceed 0.65:1.00; 

(e) Permit Adjusted Tangible Net Worth to be less than the sum of (x) 75% of Adjusted Tangible Net Worth as of the Closing Date, plus
(y) 75% of the net issuance proceeds of all issuances to Persons other than the Borrowers or Subsidiaries of Stock or Partnership Units from and after the Closing Date; 

(f) Permit the aggregate principal amount of the Borrowing Group’s Share of all cross-collateralized or cross-defaulted Indebtedness to
exceed 15% of Total Funded Indebtedness; 
 (g) Intentionally Omitted; 

  
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 (h) Permit the aggregate outstanding principal amount of the Borrowing Group’s Share of
Aggregate Recourse Indebtedness, exclusive of the Commitments and the Total Outstandings, to exceed the greater of (i) 5% of Total Funded Indebtedness and (ii) $225,000,000; 

(i) Permit the aggregate outstanding principal amount (including
paid-in-kind or other non-current cash pay interest which is added to principal) of Mezzanine Indebtedness to exceed $20,000,000
at any time. The Mezzanine Indebtedness existing as of the Closing Date is set forth on Schedule 7.11(i) hereto; or 
 (j) Permit
Total Unsecured Indebtedness to exceed an amount equal to the amount obtained by dividing (x) Free Cash Flow by (y) a constant of 17.53% (based on a 7-year amortization and a 6% interest rate). 

The financial covenants set forth in this Section 7.11 shall be measured as of the last day of each fiscal quarter. 

7.12 Special Covenants Relating to the REIT. In the case of the REIT: 

(a) Make any disposition of or encumber, pledge or hypothecate, whether directly or indirectly, all or any portion of its direct or indirect
Equity Interest in AIMCO at any time or any rights to distributions or dividends from AIMCO other than (x) to AIMCO or a Wholly-Owned Subsidiary, and (y) any pledges of Equity Interests in connection with this Agreement; 

(b) At any time and for any reason, fail to own, either directly or through one or more Wholly-Owned Subsidiaries of the REIT, more than 50% of
the aggregate outstanding partnership interests in AIMCO; 
 (c) Fail for any reason whatsoever, whether voluntarily or involuntarily, either
directly or through one or more Wholly-Owned Subsidiaries of the REIT, to be the sole general partner of AIMCO at any time; 
 (d) Cease to
have its common Stock listed on any of the NYSE, the American Stock Exchange, or the NASDAQ Stock Exchange; or 
 (e) Cease to have REIT
Status or fail to comply with the requirements of the Code relating to qualified REIT subsidiaries in respect of its ownership of any Subsidiary that is intended to be a qualified REIT subsidiary of the REIT to the extent required under the Code and
applicable Law. 
 7.13 Taxation of AIMCO. In the case of AIMCO, become an association taxable as a corporation or cease to be taxed
as a partnership under the Code. 

  
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 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. The Borrowers or any other Loan Party fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any L/C Obligation, or (ii) within five days after the same becomes due, any interest on any Loan or on any L/C Obligation, or any fee due hereunder, or
(iii) within five days after the same becomes due, any other amount payable hereunder or under any other Loan Document; or 
 (b)
Specific Covenants. The Borrowers fail to perform or observe any term, covenant or agreement contained in any of Section 6.01, 6.02 (other than 6.02(c),(d), or (f)), 6.03, 6.05, 6.11 or 6.12 or Article VII, or any
Guarantor fails to perform or observe any term, covenant or agreement contained the Guaranty; or 
 (c) Other Defaults. Any Loan Party
fails to perform or observe any other term, covenant or agreement (other than any term, covenant or agreement specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days (or such other period as may be specified in the applicable Loan Document) after the earlier of (i) the date upon which a Responsible Officer knew or received written notice of such failure or
(ii) the date upon which written notice thereof is given to the Borrowers 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 Borrowers or any other Loan Party herein, in any other Loan Document, or in any document or
certificate delivered by or on behalf of a Loan Party in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or 

(e) Cross-Default. (i) The Borrowers or any Subsidiary (A) fail, after any applicable cure period, to make any payment
when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal
amount (including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the applicable Threshold Amount, or (B) fail, after any applicable cure period, to observe or perform any other agreement
or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the
holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity which
offer is not complied with within applicable periods, or such 

  
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Guarantee to become payable or cash collateral in respect thereof to be demanded; provided, that, any failure, occurrence of an event, or
non-compliance referred to in clause (A) or (B) shall only be deemed to have occurred, with respect to any Indebtedness or Guarantee that is secured by real property and which is characterized as
“nonrecourse” after Borrower has received 30 days’ written notice thereof from the applicable lender; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from
(A) any event of default under such Swap Contract as to which the Borrowers or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which the
Borrowers or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Borrowers or such Subsidiary as a result thereof is greater than the Threshold Amount; or 

(f) Insolvency Proceedings, Etc. Any Loan Party or any Subsidiary thereof which individually generates more than 2% of AIMCO’s Net
Operating Income or any Subsidiaries which collectively in the aggregate generate more than 5% of AIMCO’s Net Operating Income (in each case for the prior four quarter period), 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 Subsidiary which individually generates more than 2% of AIMCO’s Net Operating Income or any Subsidiaries thereof which collectively in the aggregate generate more than 5% of AIMCO’s Net Operating Income (in each case for the prior
four quarter period), 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 (i) a final judgment or order for the payment of money in an
aggregate amount exceeding $35,000,000 (to the extent not covered by independent third-party insurance as to which the insurer does not have a reasonable basis to dispute coverage), or (ii) any one or more non-monetary final judgments that
have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or
(B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or 

  
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 (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 Borrowers under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $35,000,000, or (ii) the
Borrowers 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 $35,000,000; 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 as a result of satisfaction in full of all the Obligations, ceases to be in full force and effect (other than in accordance with its
terms); or any Loan Party or Affiliate thereof contests in any manner the validity or enforceability of any provision of any Loan Document; or any Loan Party denies that it has any liability or obligation under any Loan Document, or purports to
revoke, terminate or rescind any Loan Document; or 
 (k) Change of Control. There occurs any Change of Control. 

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 each 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 Borrowers; 

(c) require that the Borrowers Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and 

(d) exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or under
applicable Law; 
 provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the
Borrowers under the Bankruptcy Code of the United States, or any Event of Default of the type described in Section 8.01(f), the obligation of each Lender to make Loans and any obligation of the L/C Issuers to make L/C Credit Extensions shall
automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the Borrowers 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. 

  
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 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 be applied by the Administrative Agent in the following order: 
 First, to payment of that portion of the
Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as
such; 
 Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal
and interest) payable to the Lenders and the L/C Issuers (including fees, charges and disbursements of counsel to the respective Lenders and the L/C Issuers (including fees and time charges for attorneys who may be employees of any Lender or L/C
Issuer) and amounts payable under Article III), 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, L/C Borrowings and other
Obligations, ratably among the Lenders and the L/C Issuers 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, L/C Borrowings and Obligations to Cash
Collateralize L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit, ratably among the Administrative Agent, Lenders and the L/C Issuers in proportion to the respective amounts described in this clause Fourth held by
them; and 
 Last, the balance, if any, after all of the Obligations have been paid in cash in full, to the Borrowers or as otherwise
required by Law. 
 Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause
Fourth 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, such remaining amount shall
be applied to the other Obligations, if any, in the order set forth above. 
 ARTICLE IX. 

ADMINISTRATIVE AGENT 

9.01 Appointment and Authority. Each of the Lenders and the L/C Issuers hereby irrevocably appoints KeyBank 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 (other than Sections 9.06 and 9.10) are solely for the benefit of the Administrative Agent, the Lenders

  
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and the L/C Issuers, and neither the Borrowers nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions. The obligations of the Administrative Agent
hereunder are primarily administrative in nature, and nothing contained in this Agreement or any of the other Loan Documents shall be construed to constitute the Administrative Agent as a trustee for any Lender or to create an agency or fiduciary
relationship. The Administrative Agent shall act as the contractual representative of the Lenders hereunder, and notwithstanding the use of the term “Agent”, it is understood and agreed that the Administrative Agent shall not have any
fiduciary duties or responsibilities to any Lender by reason of this Agreement or any other Loan Document and is acting as an independent contractor, the duties and responsibilities of which are limited to those expressly set forth in this Agreement
and the other Loan Documents. 
 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. 

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. 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; and 

(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 Borrowers, the Guarantors or any of their Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity (including,
without limitation, in connection with any dealings the Administrative Agent or any of its Affiliates may have from time to time with the Borrowers, the Guarantors or any of their Affiliates as contemplated by Section 10.20). 

  
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 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, percentage or class 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 Section 10.01) 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
not be deemed to have knowledge of any Default unless and until written notice describing such Default is given to the Administrative Agent by the Borrowers, a Lender or an L/C Issuer, in which event Administrative Agent shall promptly deliver such
notice to Lenders. 
 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, renewal, extension, amendment or increase of a Letter of Credit, that by its terms
must be fulfilled to the satisfaction of a Lender or an L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or such L/C Issuer unless the Administrative Agent shall have received notice to the contrary
from such Lender or such 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 Borrowers), 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 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. 

  
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 9.06 Resignation of Administrative Agent. The Administrative Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuers and the Borrowers. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with the approval of the Borrowers provided no Event of Default then exists
(which approval shall not be unreasonably withheld or delayed), 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 (the “Resignation Effective Date”), then the retiring
Administrative Agent may on behalf of the Lenders and the L/C Issuers, appoint a successor Administrative Agent meeting the qualifications set forth above, subject to the approval of the Borrowers provided no Default then exists (which approval
shall not be unreasonably withheld or delayed); provided that if the Administrative Agent shall notify the Borrowers and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become
effective on the Resignation Effective Date. 
 If the Person serving as the Administrative Agent is a Defaulting Lender pursuant to
clause (d) of the definition thereof, or has engaged in willful misconduct or gross negligence with respect to its material obligations as Administrative Agent as determined pursuant to the last sentence of this Section 9.06, the Required
Supermajority Lenders may, to the extent permitted by applicable Law, by notice in writing to the Borrowers and such Person remove such Person as Administrative Agent and, in consultation with the Borrowers, appoint a successor Administrative Agent
meeting the qualifications set forth above. If no such successor shall have been appointed by the Required Supermajority Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required
Supermajority Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date. 

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 Issuers under any of the
Loan Documents, the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (2) 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 each L/C Issuer directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. 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 retired or removed) Administrative Agent, 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
Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After the retiring (or retired or removed) Administrative Agent’s resignation
or removal hereunder and under the other Loan Documents, 

  
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the provisions of this Article and Section 10.04 shall continue in effect for the benefit of such retiring (or retired or removed) Administrative Agent, its sub agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring (or retired or removed) Administrative Agent was acting as Administrative Agent. 

Any resignation by or removal of KeyBank as Administrative Agent pursuant to this Section shall also constitute its resignation or removal as
an L/C Issuer and Swing Line Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired or removed) L/C Issuer and Swing Line Lender, (b) the retiring (or retired or removed) 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 reasonably satisfactory to the retiring (or
retired or removed) L/C Issuer to effectively assume the obligations of the retiring (or retired or removed) L/C Issuer with respect to such Letters of Credit. Required Supermajority Lenders shall have the right to terminate the Administrative Agent
for gross negligence or willful misconduct in the performance of the Administrative Agent’s material obligations or duties under this Agreement, as determined by a final and unappealable judgment, in which event the other provisions of this
Section 9.06 shall govern regarding the selection of a replacement administrative agent. 
 9.07
Non-Reliance on Administrative Agent and Other Lenders. Each Lender, the Swing Line Lender and each 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, the Swing Line Lender and each 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 Joint Book Managers, Joint Lead Arrangers,
Syndication Agents or Co-Documentation Agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity,
as applicable, as the Administrative Agent, a Lender or an L/C Issuer hereunder. 
 9.09 Administrative Agent May File Proofs of
Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or 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 the Borrowers) shall be entitled
and empowered, by intervention in such proceeding or otherwise: 

  
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 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid
in respect of the Loans, 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 Issuers and the Administrative Agent
(including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuers and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the L/C Issuers
and the Administrative Agent under Sections 2.03(i) and (j), 2.09 and 10.04) 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 each L/C Issuer to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuers, 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 2.09 and 10.04. 

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 L/C Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding. 
 9.10 Collateral and Guaranty Matters. The Lenders, the Swing Line Lender and the L/C Issuers irrevocably authorize the
Administrative Agent, and the Administrative Agent hereby agrees: 
 (a) to release any Lien on any property granted to or held by the
Administrative Agent under any Loan Document (i) upon termination of the Aggregate Commitments and payment in full in cash of all Obligations (other than contingent indemnification obligations) and the expiration or termination of all Letters
of Credit (or upon Cash Collateralization or receipt of “back-to-back” letters of credit in accordance with Section 2.14), (ii) that is sold, transferred or otherwise Disposed of or to be
sold, transferred or otherwise Disposed of as part of or in connection with any transaction permitted hereunder or under any other Loan Document (it being acknowledged and understood that any such property shall be sold, transferred or otherwise
Disposed of free and clear of the Liens created by the Loan Documents) provided no Default or Event of Default then exists or would arise from such sale, transfer or other Disposition), (iii) subject to Section 10.01, if approved,
authorized or ratified in writing by the Required Lenders or (iv) that is owned by a Guarantor, upon release of such Guarantor from its obligations under the Guaranty pursuant to clause (c) below; 

  
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 (b) provided no Default or Event of Default then exists or would arise as a result thereof, to
subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 7.01(i); and 

(c) provided no Default or Event of Default then exists or would arise as a result thereof, to release any Guarantor from its obligations under
the Guaranty (i) if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder or (ii) such Guarantor owns real property assets that are, contemporaneously with such release, to become encumbered by a
Lien securing a first mortgage loan permitted under this Agreement (it being acknowledged and understood that all obligations of such Guarantor under the Loan Documents (other than indemnification obligations which by their terms survive the payment
of the Obligations) shall automatically terminate and be of no further force and effect upon the consummation of any such transaction). 

The Administrative Agent shall take such actions and execute such documents, at the expense of the Borrowers (including directing any
collateral agent to take such actions) as are appropriate in connection with such releases, subordination or termination. Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative
Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 9.10. 

9.11 Approvals. 
 (a) If
consent is required for some action under this Agreement, or except as otherwise provided herein an approval of Lenders, the Required Supermajority Lenders, the Required Lenders, Required Revolving Credit Lenders, Required Term Loan Lenders or all
affected Lenders is required or permitted under this Agreement, each Lender agrees to give the Administrative Agent, within ten (10) Business Days of receipt of the request for action from Administrative Agent (accompanied by an explanation for
the request) together with all reasonably requested information related thereto (or such lesser period of time required by the terms of the Loan Documents), notice in writing of approval or disapproval (collectively “Directions”) in
respect of any action requested or proposed in writing pursuant to the terms hereof. To the extent that any Lender does not approve any recommendation of Administrative Agent, such Lender shall in such notice to Administrative Agent describe the
actions that would be acceptable to such Lender. Each such request for approval shall include the following in all capital, bolded, block letters on the first page thereof: “THE FOLLOWING REQUEST REQUIRES A RESPONSE WITHIN TEN
(10) BUSINESS DAYS OF RECEIPT. FAILURE TO DO SO WILL BE DEEMED AN APPROVAL OF THE REQUEST.” If consent is required for the requested action, any Lender’s failure to respond to a request for Directions within the required time
period shall be deemed to constitute a Direction to take such requested action. 

  
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 (b) In the event that any recommendation is not approved by the requisite number of Lenders and a
subsequent approval on the same subject matter is requested by the Administrative Agent (a “Subsequent Approval Request”), then for the purposes of this clause each Lender shall be required to respond to a request for
Directions within five (5) Business Days of receipt of such request. If the Administrative Agent submits to the Lenders a Subsequent Approval Request such Subsequent Approval Request shall include the following in all capital, bolded, block
letters on the first page thereof: “THE FOLLOWING REQUEST REQUIRES A RESPONSE WITHIN FIVE (5) BUSINESS DAYS OF RECEIPT. FAILURE TO DO SO WILL BE DEEMED AN APPROVAL OF THE REQUEST.” 

(c) The Administrative Agent, the Loan Parties and each other Lender shall be entitled to assume that any officer of a Lender delivering any
written notice, written consent, certificate or other writing is authorized to give such notice, consent, certificate or other writing unless the Administrative Agent, the Loan Parties and such other Lenders have otherwise been notified in writing.

 ARTICLE X. 

MISCELLANEOUS 
 10.01
Amendments, Etc. Subject to Sections 2.16 and 2.17, no amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrowers or any other Loan Party therefrom, shall be effective
unless in writing signed by the Required Lenders (or the Administrative Agent with the written concurrence of the Required Lenders) and the Borrowers or the applicable Loan Party, as the case may be, and each such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall: 

(a) waive any condition set forth in Section 4.01(a) without the written consent of each Lender; 

(b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written
consent of such Lender (subject to Sections 2.16 and 2.17); 
 (c) postpone the final scheduled date of maturity of any Loan or postpone any
date fixed by this Agreement or any other Loan Document for any scheduled payment of principal or payment of interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent
of each Lender directly affected thereby; 
 (d) reduce the principal of, or the rate of interest (including the pricing grid set forth in
the definition of Applicable Rate) specified herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender directly affected thereby; provided, however, that (i) only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive
any obligation of the Borrowers to pay interest at the Default Rate and (ii) only the consent of the Required Revolving Credit Lenders shall be necessary to waive any obligation to pay Letter of Credit Fees at the Default Rate; 

  
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 (e) change Section 2.13 or Section 8.03 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Lender; 
 (f) (i) except as set forth in the following clauses
(ii) and (iii), change any provision of this Section or the definition of “Required Lenders”, “Required Supermajority Lenders”, or any other provision hereof specifying the number or percentage of Lenders required to amend,
waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender, (ii) change the definition of “Required Revolving Credit Lenders” or any other
provisions hereof specifying the number or percentage of Revolving Credit Lenders required to amend, waive or otherwise modify any rights of any Revolving Credit Lender hereunder or make any determination or grant any consent hereunder, without the
written consent of each Revolving Credit Lender (but any such amendment, waiver or modification described in this clause (ii) shall not require the consent of the Required Lenders) or (iii) change the definition of
“Required Term Loan Lenders” or any other provisions hereof specifying the number or percentage of Term Loan Lenders required to amend, waive or otherwise modify any rights of any Term Loan Lender hereunder or make any determination or
grant any consent hereunder, without the written consent of each Term Loan Lender (but any such amendment, waiver or modification described in this clause (iii) shall not require the consent of the Required Lenders); or 

(g) release all or substantially all (i) of the Guarantors from the Guaranty or (ii) the Liens from the Collateral (except as
permitted in Section 9.10) without the written consent of each Lender. 
 and, provided further, that (i) no amendment,
modification or waiver shall result in a modification of the conditions to funding with respect to the Revolving Credit Commitment without the written consent of the Required Revolving Credit Lenders, (ii) no amendment, modification or waiver
shall disproportionately affect the Revolving Credit Lenders or the Term Loan Lenders without the approval of the Required Revolving Credit Lenders or Required Term Loan Lenders, respectively; (ii) no amendment, waiver or consent shall, unless
in writing and signed by the L/C Issuers in addition to the Lenders required above, affect the rights or duties of any L/C Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it;
(iii) 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; (iv) 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 (v) 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 the Commitment of such Lender may not be increased or extended without the consent of such Lender (subject to Sections 2.16 and 2.17). 

  
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 Furthermore, and notwithstanding anything to the contrary in this Section 10.01, if the
Administrative Agent and the Borrowers have jointly identified an ambiguity, omission, mistake or defect in any provision of this Agreement or the other Loan Documents or an inconsistency between provisions of this Agreement and/or the other Loan
Documents, the Administrative Agent and the Borrowers shall be permitted to amend such provision or provisions to cure such ambiguity, omission, mistake, defect or inconsistency so long as to do so would not adversely affect the interest of the
Lenders. Any such amendment shall become effective without any further consent of any other party to this Agreement and a copy thereof shall be promptly forwarded by Agent to each of the Lenders. 

10.02 Notices; Effectiveness; Electronic Communication. 

(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 or
electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 

(i) if to the Borrowers, the Administrative Agent, the L/C Issuers or the Swing Line Lender, to the address, telecopier number, electronic
mail address or telephone number specified for such Person on Schedule 10.02; and 
 (ii) if to any other Lender, to the address,
telecopier number, electronic mail address or telephone number specified in its Administrative Questionnaire. 
 Notices sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices 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 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 Issuers 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 any L/C Issuer pursuant to Article II if such Lender or such 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 or the Borrowers 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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 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); 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, 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. 

(c) Change of Address, Etc. Each of the Borrowers, the Administrative Agent, each 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 (which, in the case of the Borrowers, may be given to the Administrative Agent for distribution to the Lenders and the L/C
Issuer). Each other Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the Borrowers, the Administrative Agent, the L/C Issuers and the Swing Line Lender. 

(d) Reliance by Administrative Agent, L/C Issuers and Lenders. The Administrative Agent, the L/C Issuers and the Lenders shall be
entitled to rely and act upon any notices (including telephonic Revolving/Term Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of the Borrowers 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 Borrowers shall indemnify the
Administrative Agent, each 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 the Borrowers,
except to the extent such losses, costs, expenses and liabilities are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful
misconduct of such Person. 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, provided
Administrative Agent informs such party that the communication may be recorded prior to commencing the communication. 
 10.03 No Waiver;
Cumulative Remedies. No failure by any Lender, any 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 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 are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 

  
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 10.04 Expenses; Indemnity; Damage Waiver. 

(a) Costs and Expenses. The Borrowers shall pay (i) all reasonable out of pocket expenses incurred by the Administrative Agent and
its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
out of pocket expenses incurred by the L/C Issuers in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, (iii) all out of pocket expenses incurred by the
Administrative Agent, any Lender or any L/C Issuer (including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or any L/C Issuer), and shall pay all allocated fees and time charges for attorneys
who may be employees of the Administrative Agent, any Lender or any 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 the 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 and (iv) to the extent not already covered by any of the preceding subsections, all reasonable costs and expenses incurred by the Administrative Agent, the L/C Issuers or the Lenders in connection with any bankruptcy or other
proceeding of the type described in Section 8.01(f), including the reasonable fees and disbursements of counsel to the Administrative Agent, any L/C Issuer and any Lender, whether such fees and expenses are incurred prior to, during or
after the commencement of such proceeding or the confirmation or conclusion of any such proceeding. 
 (b) Indemnification by the
Borrowers. The Borrowers shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender and each 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 third party or by the Borrowers
or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any
refusal by an 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 on or from any property owned or operated by the Borrowers or any of their Subsidiaries, or any Environmental Liability related in any way to the Borrowers or any of their Subsidiaries,

  
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or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a
third party or by the Borrowers or any other Loan Party, and regardless of whether any Indemnitee is a party thereto, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative, contributory or sole negligence of
the Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrowers or any other Loan Party against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrowers or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This
Section 10.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim. 

(c) Reimbursement by Lenders. To the extent that the Borrowers for any reason fail 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), any 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), such L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable Percentage (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 any such sub-agent) or any 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) 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 2.12(d). 

(d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable Law, the Borrowers shall not assert, and hereby
waive, 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, 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 by it 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. 
 (e) Payments. All amounts due under this Section shall be
payable not later than ten (10) Business Days after demand therefor. 

  
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 (f) Survival. The agreements in this Section, and the Borrower’s agreements and
obligations in Sections 3.04 and 3.05, shall survive the resignation of the Administrative Agent and any L/C Issuer, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the
other Obligations. 
 10.05 Payments Set Aside. To the extent that any payment by or on behalf of the Borrowers is made to the
Administrative Agent, any L/C Issuer or any Lender, or the Administrative Agent, any 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, such 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 each L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from
or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders and the L/C
Issuers under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement. 

10.06 Successors and Assigns. 

(a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except that neither the Borrowers may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each
Lender (it being understood that a merger or consolidation of a Borrower expressly permitted under this Agreement shall not constitute such an assignment or transfer) and no Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or
(iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and,
to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the L/C Issuers and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

  
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 (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Revolving Credit Commitment and any Revolving Loans (including for purposes of this subsection (b), participations in L/C Obligations
and in Swing Line Loans) at the time owing to it, its Term Loan Commitment and/or any Term Loans at the time owing to it); provided that: 

(i) (x) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Revolving Credit Commitment and
Revolving Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Revolving Credit Commitment (which for this purpose includes
Revolving Loans outstanding thereunder) or, if such Commitment is not then in effect, the principal outstanding balance of the Revolving 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 $10,000,000 unless each of the
Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrowers otherwise consent (each such consent of the Borrowers and Administrative Agent not be unreasonably withheld or delayed) and (y) except
in the case of an assignment of the entire remaining amount of the assigning Lender’s Term Loan Commitment and Term Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the aggregate amount of the Term Loans and Term Loan Commitment or, if such Term Loan Commitment is not then in effect, the principal outstanding balance of the Term 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 $10,000,000 unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrowers otherwise consent (each such consent of the Borrowers and Administrative Agent not to be unreasonably withheld
or delayed); 
 (ii) 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 apply to rights in respect of Swing Line Loans; 

(iii) any assignment of a Commitment must be approved by the Administrative Agent (and, if such Commitment is a Revolving Credit Commitment,
the L/C Issuers and the Swing Line Lender) unless the Person that is the proposed assignee is itself a Lender (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee) such approval not to be unreasonably withheld,
delayed or conditioned; 
 (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and
Assumption, together with a processing and recordation fee of $3,500 (with only one such fee payable in connection with simultaneous assignments to or by two or more Approved Funds), and the Eligible Assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire; 

  
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 (v) no such assignment shall be made (A) to any Borrower or any of such Borrower’s
Affiliates or Subsidiaries or (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender, would constitute any of the foregoing Persons described in this clause (v); and 

(vi) 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 Borrowers and the Administrative Agent, the applicable pro rata share of
Loans previously requested but not funded by the 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, each L/C Issuer, the Swing Line Lender or any other Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and, if applicable,
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 Eligible 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 10.04 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 having been a Defaulting Lender. Upon request, the Borrowers (at their expense) shall execute and deliver a Note, as applicable, to the assignee Lender. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this
Section. 

  
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 (c) Register. The Administrative Agent, acting solely for this purpose as an agent of the
Borrowers, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts
of, and interest owing on, 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, and the Borrowers, 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 or an L/C Issuer hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall
be available for inspection by each of the Borrowers and the L/C Issuers 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 Borrowers or the Administrative Agent, any L/C
Issuer or the Swing Line Lender sell participations to any Person (other than a natural person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person, or the Borrowers or any of the
Borrowers’ 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 Revolving Credit Commitment, and/or the
Loans made pursuant thereto (including such Lender’s participations in L/C Obligations and/or Swing Line Loans) owing to it) or its Term Loans; 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 Borrowers, the Administrative Agent, the Lenders and the L/C Issuers shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. 
 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 10.01 that affects such Participant.
Subject to subsection (e) of this Section, the Borrowers agree that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such Participant agrees to be subject to
Section 2.13 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrowers, 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 commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c)
of the United States Treasury 

  
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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 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the
Borrowers’ prior written consent. A Participant shall not be entitled to the benefits of Section 3.01 unless the Borrowers are notified of the participation sold to such Participant and such Participant agrees, for the benefit of
the Borrowers, 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 a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

(g) Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like
import in any Assignment and Assumption shall be deemed to include electronic signatures 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. 
 (h) Special Purpose Funding
Vehicles. Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle identified as such in writing from time to time by the Granting Lender to the
Administrative Agent and the Borrowers (an “SPC”) the option to provide all or any part of any Revolving Loan that such Granting Lender would otherwise be obligated to make pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPC to fund any Revolving Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of such Revolving Loan, the Granting Lender
shall be obligated to make such Revolving Loan pursuant to the terms hereof or, if it fails to do so, to make such payment to the Administrative Agent as is required under Section 2.12(b)(ii). Each party hereto hereby agrees that (i) neither
the grant to any SPC nor the exercise by any SPC of such option shall increase the costs or expenses or otherwise increase or change the obligations of the Borrowers under this Agreement (including its obligations under Section 3.01 or 3.04),
(ii) no SPC shall be liable for any indemnity or similar payment obligation under this Agreement for which a Lender 

  
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would be liable, and (iii) the Granting Lender shall for all purposes, including the approval of any amendment, waiver or other modification of any provision of any Loan Document, remain the
lender of record hereunder. The making of a Revolving Loan by an SPC hereunder shall utilize the Revolving Credit Commitment of the Granting Lender to the same extent, and as if, such Revolving Loan were made by such 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
debt of any SPC, it will not institute against, or join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding under the laws of the United States or any State thereof.
Notwithstanding anything to the contrary contained herein, any SPC may (i) with notice to, but without prior consent of the Borrowers and the Administrative Agent and with the payment of a processing fee of $3,500, assign all or any portion of
its right to receive payment with respect to any Revolving Loan to the Granting Lender and (ii) disclose on a confidential basis any non-public information relating to its funding of Revolving Loans to
any rating agency, commercial paper dealer or provider of any surety or Guarantee or credit or liquidity enhancement to such SPC. 
 (i)
Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding anything to the contrary contained herein, if at any time KeyBank assigns all of its Commitment and Loans pursuant to subsection (b) above, KeyBank
may, (i) upon 30 days’ notice to the Borrowers and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to the Borrowers, resign as Swing Line Lender. In the event of any such resignation as L/C Issuer
or Swing Line Lender, the Borrowers 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 Borrowers to appoint any such successor shall
affect the resignation of KeyBank as L/C Issuer or Swing Line Lender, as the case may be. If KeyBank resigns as an L/C Issuer, it shall retain all the rights and obligations of an L/C Issuer hereunder with respect to all Letters of Credit issued by
it and outstanding as of the effective date of its resignation and all L/C Obligations with respect thereto (including the right to require the Revolving Credit Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts
pursuant to Section 2.03(c)). If KeyBank resigns as Swing Line Lender, it shall retain all the rights and obligations 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 Revolving Credit Lenders to make Base Rate Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.04(c). 

10.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent, the Lenders and the L/C Issuers agrees to
maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and
representatives (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 by any
regulatory authority purporting to have jurisdiction over it (including 

  
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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 pledgee under Section 10.06(f), (ii) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (iii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrowers and their obligations,
(g) on a confidential basis to any rating agency in connection with rating any Borrower or its Subsidiaries, (h) with the consent of the Borrowers 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, any L/C Issuer or any of their respective Affiliates on a non-confidential basis from a source other
than the Borrowers. 
 For purposes of this Section, “Information” means all information received from the Borrowers or any
Subsidiary relating to the Borrowers or any Subsidiary or any of their respective Affiliates or businesses, other than any such information that is available to the Administrative Agent, any Lender or any L/C Issuer on a non-confidential basis prior to disclosure by the Borrowers or any Subsidiary, provided that, in the case of information received from the Borrowers or any Subsidiary after the date hereof, such information
is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to 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. 

10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender, each 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, 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, such L/C Issuer or any such Affiliate to or for the credit or the account of the Borrowers against any and all of the obligations of the
Borrowers now or hereafter existing under this Agreement or any other Loan Document to such Lender or such L/C Issuer, irrespective of whether or not such Lender or such L/C Issuer shall have made any demand under this Agreement or any other Loan
Document and although such obligations of the Borrowers may be contingent or unmatured or are owed to a branch or office of such Lender or such L/C Issuer different from the branch or office holding such deposit or obligated on such indebtedness.
The rights of each Lender, each 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, such L/C Issuer or their respective Affiliates may have;
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 2.15 and, pending such payment, shall be segregated by such 

  
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Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the L/C Issuers 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. Each Lender and each L/C Issuer agrees to notify the Borrowers 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. 

10.09 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 Borrowers. 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. 

10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to
the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have
been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy or other electronic image (e.g., “PDF” or “TIF” via electronic mail) shall, subject to applicable Law, be effective as delivery of a manually executed counterpart of this Agreement and
shall be binding on the Borrowers, the Administrative Agent and Lenders. The Administrative Agent may also require that any such signature delivered by telecopy, or “PDF” or “TIF” format by electronic mail, be confirmed by a
manually-signed original thereof; provided, however, that the failure to request or deliver any such manually-signed original shall not affect the effectiveness of any telecopy or “PDF” or “TIF” format signature.

 10.11 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 

  
 128 

 
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. 

10.12 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. 
 10.13 Replacement of Lenders. If any Lender
requests compensation under Section 3.04, if the Borrowers are required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, if any Lender is a Defaulting Lender
or a Non-Consenting Lender (so long as, in the case of a Non-Consenting Lender, no Default or Event of Default has occurred and is continuing), or if any other
circumstance exists hereunder that gives the Borrowers the right to replace a Lender as a party hereto, then the Borrowers may, at their 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 10.06 except as provided in this Section 10.13), all of its interests, rights and obligations under this
Agreement and the related Loan Documents (or all of its Revolving Loans, Term Loans, Revolving Credit Commitments and Term Loan Commitment, as applicable, if so requested by the Borrower) to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided that: 
 (a) the Borrowers shall have paid to the
Administrative Agent the assignment fee specified in Section 10.06(b); 
 (b) such Lender shall have received payment of an amount equal to
the outstanding principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other amounts) with respect to the assigned interest; 

(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. 

  
 129 

 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 Borrowers to require such assignment and delegation cease to apply. 

Without limiting the foregoing, Borrowers may, subject to the consent and approval of Administrative Agent in its sole discretion and
notwithstanding anything to the contrary in Section 2.06, terminate the Revolving Credit Commitment of any Defaulting Lender that is a Revolving Credit Lender with no outstanding Revolving Loans, provided that if Administrative Agent grants
such consent in its sole discretion, (i) the obligations of such Defaulting Lender to acquire participations in any Letters of Credit or make such funds available is reallocated among the non-Defaulting
Lenders that are Revolving Credit Lenders as provided in Section 2.15(a)(iv), or (ii) Borrowers shall Cash Collateralize such Defaulting Lender’s pro rata portion (if any, after giving effect to any partial reallocation pursuant to
Section 2.15(a)(iv)) of the Outstanding Amount of any then applicable L/C Obligations in a manner satisfactory to each L/C Issuer and Administrative Agent. 

10.14 Governing Law; Jurisdiction; Etc. 

(a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

(b) SUBMISSION TO JURISDICTION. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO 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 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 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 ANY L/C ISSUER MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWERS OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

  
 130 

 (c) WAIVER OF VENUE. THE BORROWERS IRREVOCABLY AND UNCONDITIONALLY WAIVE, 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
10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

10.15 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. 
 10.16 USA PATRIOT Act Notice. 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 Borrowers that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Act”), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the name and address of the Borrowers and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify the Borrowers in accordance with the Act. 
 10.17 Time of the Essence. Time is of
the essence of the Loan Documents. 

  
 131 

 10.18 Borrowers’ Obligations. Each of the REIT, AIMCO and AIMCO/Bethesda represents,
warrants, covenants and agrees as follows: 
 (a) Defenses. The obligations pursuant to the Loan Documents shall not be affected by
any of the following: (i) the bankruptcy, disability, dissolution, incompetence, insolvency, liquidation, or reorganization of any Borrower; or (ii) the discharge, modification of the terms of, reduction in the amount of, or stay
of enforcement of any or all liens and encumbrances or any or all obligations pursuant to the Loan Documents in any bankruptcy, insolvency, reorganization, or other legal proceeding or by law, ordinance, regulation, or rule (federal, state, or
local). 
 (b) Rights of Administrative Agent. Subject to receiving any required consents of the Required Lenders or all of the
Lenders, as may be required pursuant to applicable provisions of this Agreement and the other Loan Documents, the Administrative Agent on behalf of the Lenders, may do the following acts or omissions from time to time without notice to or consent of
any Borrower and without receiving payment or other value, nor shall the following acts or omissions affect, delay or impair any of the obligations pursuant to the Loan Documents or any or all liens and encumbrances: (i) the
Administrative Agent may obtain collateral or additional collateral; (ii) the Administrative Agent may substitute for any or all collateral regardless of whether the same type or greater or lesser value; (iii) the
Administrative Agent may release any or all collateral; (iv) the Administrative Agent may compromise, delay enforcement, fail to enforce, release, settle or waive any rights or remedies of the Administrative Agent as to any or all
collateral; (v) the Administrative Agent may sell or otherwise Dispose of any collateral in such manner or order as the Administrative Agent determines in accordance with the Loan Documents; (vi) the Administrative Agent may fail to
perfect, fail to protect the priority of, and fail to ensure any or all liens or encumbrances; (vii) the Administrative Agent may fail to inspect, insure, maintain, preserve or protect any or all collateral; (viii) the
Administrative Agent may obtain additional obligors for any or all obligations pursuant to the Loan Documents; (ix) the Administrative Agent may increase or decrease any or all obligations or otherwise change terms of any or all
obligations in accordance with the Loan Documents; (x) the Administrative Agent may release any Borrower; (xi) Administrative Agent may compromise, delay enforcement, fail to enforce, release, settle or waive any obligations
of any Borrower with the agreement of that Borrower; (xii) the Administrative Agent may make advances, or grant other financial accommodations to any Borrower; (xiii) the Administrative Agent may fail to file or pursue a
claim in any bankruptcy, insolvency, reorganization or other proceeding as to any or all liens and encumbrances or any or all obligations; (xiv) the Administrative Agent may amend, modify, extend, renew, restate, supplement or terminate in
whole or in part the obligation of any Borrower with the agreement of that Borrower; (xv) the Administrative Agent may take or fail to take any other action with respect to any Loan Document or any Borrower; and (xvi) the
Administrative Agent may do any other acts or make any other omissions that result in the extinguishment of the obligation of any Borrower, subject, in the case of clauses (ix) and (xiv) of this Section 10.18(b), to the consent of the
Borrower(s) to the extent such Borrower’s consent would be required pursuant to the applicable provisions of this Agreement and the other Loan Documents in such Borrower’s capacity not as a surety but in its capacity as a primary obligor
hereunder and under the other Loan Documents. 
 (c) Suretyship Waivers. Each Borrower waives any and all rights and benefits under
any statutes or rules now or hereafter in effect and any other statutes or rules now or hereafter in effect that purport to confer specific rights upon or make specific defenses or procedures available to each Borrower. 

  
 132 

 (d) Information. Each Borrower represents and warrants to the Administrative Agent and
Lenders that such Borrower is currently informed of the financial condition of the Borrowers and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations. Each Borrower further
represents and warrants to the Administrative Agent and Lenders that such Borrower has read and understands the terms and conditions of the Loan Documents. Each Borrower hereby covenants that such Borrower will continue to keep informed of the
Borrowers’ financial condition, the financial condition of other guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the Obligations. Notwithstanding anything herein which may be
construed to the contrary, the Administrative Agent shall have no obligation to provide to any Borrower any information concerning the performance of any other Borrower, the obligations pursuant to the Loan Documents, or the ability of any other
Borrower to perform the obligations pursuant to the Loan Documents or any other matter, regardless of what information Administrative Agent may from time to time have. 

(e) Waivers. Each Borrower waives, until payment in full of the Obligations, any and all present and future claims, remedies and rights
against any other Borrower, any collateral and any other property, interest in property or rights to property of any other Borrower (A) arising from any performance hereunder, (B) arising from any application of any collateral, or
any other property, interest in property or rights to property of any Borrower, or (C) otherwise arising in respect of the Loan Documents, regardless of whether such claims, remedies and rights arise under any present or future agreement,
document or instrument or are provided by any law, ordinance, regulation or rule (federal, state or local) (including, without limitation, any and all rights of contribution, exoneration, indemnity, reimbursement, and subrogation arising under the
Loan Documents and any and all rights to participate in the rights and remedies of Lenders against any Borrower). 
 (f) Joint and Several
Liability of Borrowers. 
 (i) Each of the Borrowers is accepting joint and several liability hereunder and under the other Loan
Documents in consideration of the financial accommodations to be provided by the Administrative Agent and the Lenders under this Agreement, for the mutual benefit, directly and indirectly, of each of the Borrowers and in consideration of the
undertakings of the other Borrowers to accept joint and several liability for the Obligations. 
 (ii) Each of the Borrowers, jointly and
severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Borrowers, with respect to the payment and performance of
all of the Obligations (including, without limitation, any Obligations arising under this Section 10.18), it being the intention of the parties hereto that all the Obligations shall be the joint and several obligations of each Borrower
without preferences or distinction among them. 

  
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 (iii) If and to the extent that any Borrower shall fail to make any payment with respect to any
of the Obligations as and when due or to perform any of the Obligations in accordance with the terms thereof, then in each such event the other Borrowers will make such payment with respect to, or perform, such Obligation. 

(iv) The Obligations of each Borrower under the provisions of this Section 10.18 constitute the absolute and unconditional, full recourse
Obligations of each Borrower enforceable against each such Borrower to the full extent of its properties and assets, irrespective of the validity, regularity or enforceability of this Agreement or any other circumstances whatsoever. 

(v) Except as otherwise expressly provided in this Agreement, each Borrower hereby waives notice of acceptance of its joint and several
liability, notice of any Loans issued under or pursuant to this Agreement, notice of the occurrence of any Default, Event of Default, or of any demand for any payment under this Agreement, notice of any action at any time taken or omitted by the
Administrative Agent or Lenders under or in respect of any of the Obligations, any requirement of diligence or to mitigate damages and, generally, to the extent permitted by applicable Law, all demands, notices and other formalities of every kind in
connection with this Agreement (except as otherwise provided in this Agreement). Each Borrower hereby assents to, and waives notice of, any extension or postponement of the time for the payment of any of the Obligations, the acceptance of any
payment of any of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by the Administrative Agent or Lenders at any time or times in respect of any default by any Borrower in the
performance or satisfaction of any term, covenant, condition or provision of this Agreement, any and all other indulgences whatsoever by the Administrative Agent or Lenders in respect of any of the Obligations, and the taking, addition, substitution
or release, in whole or in part, at any time or times, of any security for any of the Obligations or the addition, substitution or release, in whole or in part, of any Borrower. Without limiting the generality of the foregoing, each Borrower assents
to any other action or delay in acting or failure to act on the part of the Administrative Agent or any Lender with respect to the failure by any Borrower to comply with any of its respective Obligations, including, without limitation, any failure
strictly or diligently to assert any right or to pursue any remedy or to comply fully with applicable Laws or regulations thereunder, which might, but for the provisions of this Section 10.18, afford grounds for terminating, discharging or
relieving any Borrower, in whole or in part, from any of its Obligations under this Section 10.18, it being the intention of each Borrower that, so long as any of the Obligations hereunder remain unsatisfied, the Obligations of such
Borrower under this Section 10.18 shall not be discharged except by performance and then only to the extent of such performance. The Obligations of each Borrower under this Section 10.18 shall not be diminished or rendered
unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect to any Borrower or the Administrative Agent or any Lender. The joint and several liability of each Borrower hereunder shall
continue in full force and effect notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the name, constitution or place of formation of any of the Borrowers or Administrative Agent or Lenders. 

  
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 (vi) The provisions of this Section 10.18 are made for the benefit of the Administrative
Agent, the Lenders and their respective successors and assigns, and may be enforced by it or them from time to time against any or all Borrowers as often as occasion therefor may arise and without requirement on the part of Administrative Agent, or
any Lender, successor or assign first to marshal any of its or their claims or to exercise any of its or their rights against any Borrower or to exhaust any remedies available to it or them against any Borrower or to resort to any other source or
means of obtaining payment of any of the Obligations hereunder or to elect any other remedy. The provisions of this Section 10.18 shall remain in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied. If
at any time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be restored or returned by the Administrative Agent or any Lender upon the insolvency, bankruptcy or reorganization of any
Borrower, or otherwise, the provisions of this Section 10.18 will forthwith be reinstated in effect, as though such payment had not been made. 

(vii) Each Borrower hereby agrees that it will not enforce any of its rights of contribution or subrogation against any other Borrower with
respect to any liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to the Administrative Agent or Lenders with respect to any of the Obligations or any collateral security therefor until such time as
all of the Obligations have been paid in full in cash. Any claim which any Borrower may have against the other Borrowers with respect to any payments to the Administrative Agent or any Lender hereunder or under any other Loan Document is hereby
expressly made subordinate and junior in right of payment, including without limitation, as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash of the Obligations and, in the event of any
insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any Borrower, its debts or its assets, whether voluntary or involuntary, all such Obligations shall be paid
in full in cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to the other Borrowers therefor. 

10.19 Fiduciary Duty. Neither the Administrative Agent nor any Lender has any fiduciary relationship with or fiduciary duty to the
Borrowers, the Guarantors or their respective Subsidiaries arising out of or in connection with this Agreement or the other Loan Documents or the transactions contemplated hereunder and thereunder, and the relationship between each Lender and
Administrative Agent, and the Borrowers and the Guarantors is solely that of a lender and borrower, and nothing contained herein or in any of the other Loan Documents shall in any manner be construed as making the parties hereto partners, joint
venturers or any other relationship other than lender and borrower. 
 10.20 Dealings with the Borrowers. The Administrative Agent,
the Lenders and their affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrowers, the Guarantors or any Subsidiary or other
Affiliate thereof regardless of the capacity of the Administrative Agent or any such Lender hereunder (and, in the case of the Administrative Agent, without any duty to account therefor to the Lenders). Each Borrower acknowledges, on behalf of
itself and its Affiliates, that the Administrative Agent 

  
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and each of the Lenders and their respective affiliates may be providing debt financing, equity capital or other services (including financial advisory services) in which any one or more of the
Borrowers, the Guarantors and/or its or their Affiliates may have conflicting interests regarding the transactions described herein and otherwise. Each Borrower, on behalf of itself and its Affiliates, further acknowledges that one or more of the
Administrative Agent and Lenders and their respective affiliates may be a full service securities firm and may from time to time effect transactions, for its own or its affiliates’ account or the account of customers, and hold positions in
loans, securities or options on loans or securities of one or more of the Borrowers, the Guarantors and/or its or their Affiliates. 

10.21 Acknowledgement and Consent to Bail-In of EEA Financial Institutions. 

Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties,
each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and
agrees and consents to, and acknowledges and agrees to be bound by: 
 (a) the application of any Write-Down and Conversion Powers by an EEA
Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and 

(b) the effects of any Bail-In Action on any such liability, including, if applicable: 

(i) a reduction in full or in part or cancellation of any such liability; 

(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its
parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this
Agreement or any other Loan Document; or 
 (iii) the variation of the terms of such liability in connection with the exercise of the
write-down and conversion powers of any EEA Resolution Authority. 
 10.22 Consent to Amendment and Restatement; Effect of Amendment and
Restatement. Pursuant to Section 10.01 of the Existing Credit Agreement, KeyBank as Administrative Agent under, and as defined in, the Existing Credit Agreement and each Lender under, and as defined in, the Existing Credit Agreement hereby
consents to the amendment and restatement of the Existing Credit Agreement pursuant to the terms of this Agreement. On the Closing Date, the Existing Credit Agreement shall be amended and restated in its entirety by this Agreement, and, except as
specifically set forth herein and therein, shall thereafter be of no further force and effect and shall be deemed replaced and superseded in all respects by this Agreement. The parties hereto acknowledge and agree

  
 136 

 
that entering into this Agreement does not constitute a novation of the Existing Credit Agreement or the other Loan Documents (as defined in the Existing Credit Agreement) or a novation,
termination, extinguishment or discharge of the “Obligations” under the Existing Credit Agreement or such other Loan Documents, which remain outstanding as of the Closing Date. All interest and fees accrued and unpaid under the Existing
Credit Agreement as of the date of this Agreement shall be due and payable in the amount determined pursuant to the Existing Credit Agreement for periods prior to the Closing Date on the next payment date for such interest or fee set forth in this
Agreement. Each Lender hereby authorizes the Administrative Agent and the Loan Parties to make such additional amendments and other modifications to the Loan Documents as the Administrative Agent and the Loan Parties agree are necessary or advisable
to effect, evidence or reflect the terms of this Agreement. 
 [Remainder of page intentionally left blank] 

  
 137 

									
	BORROWERS:	  		  	 APARTMENT INVESTMENT AND MANAGEMENT COMPANY,

a Maryland corporation

				
		  		  	By:	  	 /s/ Patti K. Fielding

		  		  	Name:	  	Patti K. Fielding
		  		  	Title:	  	Executive Vice President, Redevelopment Debt Financing, and Treasurer
			
		  		  	 AIMCO PROPERTIES, L.P.,
 a
Delaware limited partnership

				
		  		  	By:	  	AIMCO-GP, INC.,
		  		  		  	a Delaware corporation
		  		  	Its:	  	General Partner
					
		  		  		  	By:	  	 /s/ Patti K. Fielding

		  		  		  		  	Name: Patti K. Fielding
		  		  		  		  	Title: Executive Vice President, Redevelopment           and Debt Financing, Treasurer
			
		  		  	 AIMCO/BETHESDA HOLDINGS, INC.,

a Delaware corporation

				
		  		  	By:	  	 /s/ Patti K. Fielding

		  		  		  	Name:	  	Patti K. Fielding
		  		  		  	Title:	  	Executive Vice President, Redevelopment and Debt Financing, Treasurer

  

 
			
	KEYBANK NATIONAL ASSOCIATION, as the
	Administrative Agent, an L/C Issuer, a Revolving
	Credit Lender and a Term Loan Lender
		
	By:	 	 /s/ Jessica D. Lauerhass

		 	Name: Jessica D. Lauerhass
		 	Title: Assistant Vice President

  

  

 
			
	WELLS FARGO BANK, N.A., as a Revolving
	Credit Lender and a Term Loan Lender
		
	By:	 	 /s/ Kevin A. Stacker

		 	Name: Kevin A. Stacker
		 	Title: Senior Vice President

  

  

 
			
	PNC BANK, NATIONAL ASSOCIATION, as a Revolving Credit Lender and a Term Loan Lender
		
	By:	 	 /s/ James A. Harmann

		 	Name: James A. Harmann
		 	Title: Senior Vice President

  

  

 
			
	 BANK OF AMERICA, N.A., as an L/C Issuer, a

Revolving Credit Lender and a Term Loan Lender

		
	By:	 	 /s/ Dennis Kwan

		 	Name: Dennis Kwan
		 	Title: Vice President

  

  

 
			
	REGIONS BANK, as Revolving Credit Lender and a Term Loan Lender
		
	By:	 	 /s/ C. Vincent Hughes, Jr.

		 	Name: C. Vincent Hughes, Jr.
		 	Title: Vice President

  

  

 
			
	CITIBANK, N.A., as a Revolving Credit Lender
		
	By:	 	 /s/ John C. Rowland

		 	Name: John C. Rowland
		 	Title: Vice President

  

  

 
			
	MORGAN STANLEY BANK, N.A., as a Revolving Credit Lender
		
	By:	 	 /s/ Emanuel Ma

		 	Name: Emanuel Ma
		 	Title: Authorized Signatory

  

  

 
			
	BANK OF THE WEST, a California banking corporation, as a Revolving Credit Lender and a Term Loan Lender
		
	By:	 	 /s/ Robert Bielfeldt

		 	Name: Robert Bielfeldt
		 	Title: Vice President

  

  

 
			
	U.S. BANK NATIONAL ASSOCIATION, as a Revolving Credit Lender and a Term Loan Lender
		
	By:	 	 /s/ Benjamin Kuruvila

		 	Name: Benjamin Kuruvila
		 	Title: Vice President

  

 
			
	BMO HARRIS BANK, N.A., as a Revolving Credit Lender and Term Loan Lender
		
	By:	 	 /s/ Michael Kauffman

		 	Name: Michael Kauffmann
		 	Title: Managing Director

 
			
	JPMORGAN CHASE BANK, N.A., as a Revolving Credit Lender and a Term Loan Lender
		
	By:	 	 /s/ Christian Lunt

		 	Name: Christian Lunt
		 	Title: Executive Director

 
			
	ZB, N.A., dba ZIONS FIRST NATIONAL BANK, as a Revolving Credit Lender and a Term Loan Lender
		
	By:	 	 /s/ Jeffrey A. Holt

		 	Name: Jeffrey A. Holt
		 	Title: Senior Vice President

 SCHEDULE 2.01A 

COMMITMENTS AND APPLICABLE PERCENTAGES 

Revolving Credit Commitments 
  

									
	 Lender
	  	Commitment	 	  	Applicable Percentage	 
	 KeyBank National Association
	  	$	68,000,000	 	  	 	11.333333333333	% 
	 Wells Fargo Bank, N.A.
	  	$	68,000,000	 	  	 	11.333333333333	% 
	 PNC Bank, National Association
	  	$	68,000,000	 	  	 	11.333333333333	% 
	 Citibank, N.A.
	  	$	58,000,000	 	  	 	9.666666666667	% 
	 Bank of America, N.A.
	  	$	58,000,000	 	  	 	9.666666666667	% 
	 Regions Bank
	  	$	58,000,000	 	  	 	9.666666666667	% 
	 U.S. Bank National Association
	  	$	58,000,000	 	  	 	9.666666666667	% 
	 BMO Harris Bank, N.A.
	  	$	40,000,000	 	  	 	6.666666666667	% 
	 Bank of the West
	  	$	40,000,000	 	  	 	6.666666666667	% 
	 JPMorgan Chase Bank, N.A.
	  	$	40,000,000	 	  	 	6.666666666667	% 
	 ZB, N.A. dba Zions First National Bank
	  	$	30,000,000	 	  	 	5.000000000000	% 
	 Morgan Stanley Bank, N.A.
	  	$	14,000,000	 	  	 	2.333333333333	% 
		  	  
	  
	 	  	  
	  
	 
	 Total:
	  	$	600,000,000	 	  	 	100	% 
		  	  
	  
	 	  	  
	  
	 

 Term Loan Commitments 

 

									
	 Lender
	  	Commitment	 	  	Applicable Percentage	 
	 KeyBank National Association
	  	$	30,000,000	 	  	 	12.000000000000	% 
	 Wells Fargo Bank, N.A.
	  	$	30,000,000	 	  	 	12.000000000000	% 
	 PNC Bank, National Association
	  	$	30,000,000	 	  	 	12.000000000000	% 
	 U.S. Bank National Association
	  	$	30,000,000	 	  	 	12.000000000000	% 
	 BMO Harris Bank, N.A.
	  	$	25,000,000	 	  	 	10.000000000000	% 
	 JPMorgan Chase Bank, N.A.
	  	$	25,000,000	 	  	 	10.000000000000	% 
	 Regions Bank
	  	$	25,000,000	 	  	 	10.000000000000	% 
	 Bank of America, N.A.
	  	$	20,000,000	 	  	 	8.000000000000	% 
	 Bank of the West
	  	$	20,000,000	 	  	 	8.000000000000	% 
	 ZB, N.A. dba Zions First National Bank
	  	$	15,000,000	 	  	 	6.000000000000	% 
	 Total
	  	$	250,000,000	 	  	 	100	%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]