Document:

ETE 6.30.14 EX 10.6

AMENDMENT AND INCREMENTAL COMMITMENT AGREEMENT NO. 2

AMENDMENT AND INCREMENTAL COMMITMENT AGREEMENT NO. 2 (this “Agreement”) dated as of May 6, 2014 is among Energy Transfer Equity, L.P., a Delaware limited partnership (the “Borrower”), the Restricted Persons party hereto, the several banks and other financial institutions signatories hereto (the “Incremental Commitment Lenders”), and Credit Suisse AG, Cayman Islands Branch, as Administrative Agent for the Lenders (the “Administrative Agent”).

RECITALS
A.    The Borrower, the Lenders and the Administrative Agent are parties to a Credit Agreement (as amended by Incremental Commitment Agreement No. 1 dated as of February 19, 2014 and as further amended, modified or supplemented prior to the date hereof, the “Credit Agreement”), dated as of December 2, 2013 (the “Closing Date”).
B.    The Credit Agreement provides in Section 2.18(a) thereof that the Borrower may increase the Aggregate Commitments by adding, subject to the prior written consent of the Administrative Agent and each LC Issuer (each such consent not to be unreasonably withheld), to the Credit Agreement one or more New Lenders to the Credit Agreement or by allowing one or more Lenders under the Credit Agreement (the “Existing Lenders”) to increase their respective Commitments, in each case, by delivering to the Administrative Agent an incremental commitment agreement executed by the Borrower, the Administrative Agent, any New Lenders and any Existing Lenders agreeing to increase their Commitments.
C.    Each of the undersigned New Lenders now desires to become a party to the Credit Agreement and each of the undersigned Existing Lenders desires to increase its Commitment under the Credit Agreement.
D.    The Borrower has requested that certain amendments and modifications be made to the Credit Agreement, subject to the terms and conditions of this Agreement, and each of the Lenders, including the New Lenders, and the Administrative Agent have entered into this Agreement with the Borrower in order to effectuate such amendments and modifications to the Credit Agreement, all as set forth herein.
E.    NOW, THEREFORE, each of the undersigned hereby agrees as follows:
1.    Defined Terms.  Unless the context otherwise requires, the terms defined in the Credit Agreement shall have the same meanings whenever used in this Agreement.

2.      New Lenders.

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(a)    Each New Lender hereby agrees (i) to become a Lender under the Credit Agreement as of the Increase Effective Date with a Commitment as specified opposite its name on Annex A hereto and (ii) that it shall be deemed to be, and hereby becomes as of the Increase Effective Date, a party in all respect to the Credit Agreement and the other Loan Documents to which the Lenders are party and shall have the rights and obligations of a Lender under the Credit Agreement and the other Loan Documents.

(b)    Each New Lender (a) represents and warrants as of the Increase Effective Date that (i) from and after the Increase Effective Date, it shall be bound by the provisions of the Credit Agreement and, to the extent of its Commitment under the Credit Agreement, shall have the obligations of a Lender thereunder, (ii) it has received a copy of the Credit Agreement and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into the Credit Agreement (and this Agreement) on the basis of which it has made such analysis and decision, and (iii) if it is a Foreign Lender, it has provided to the Administrative Agent documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by such New Lender, and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at that time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
(c)    Each New Lender further represents and warrants to the Administrative Agent, the LC Issuers and each other Lender that (i) it has the full power and authority and the legal right to make, deliver and perform, and has taken all necessary action, to authorize the execution, delivery and performance of this Agreement and to fulfill its obligations under, and to consummate the transactions contemplated by, this Agreement, and no consent or authorization of, filing with, or other act by or in respect of any Governmental Authority, is required in connection herewith or therewith, and (ii) this Agreement constitutes the legal, valid and binding obligation of such New Lender.

(d)    The address for notices for each of the undersigned New Lenders for the purposes of the Credit Agreement is as specified opposite its name on Annex B hereto.

3.      Existing Lenders.  Each of the undersigned Existing Lenders agrees that, on the Increase Effective Date, its Commitment shall be increased as specified opposite its name on Annex A hereto.

4.    Reallocation.  Following the Increase Effective Date, the outstanding Loans and LC Obligations shall be ratably reallocated amongst the Lenders in accordance with the revised Commitments, as modified by this Agreement, without regard to the conditions set forth in Section 4.02 of the Credit Agreement.  Such reallocation shall occur automatically without any 

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action by the Borrower, and the Administrative Agent and the Lenders shall determine what amounts, if any, shall be transferred amongst the Lenders to effectuate such reallocation.  Each Lender hereby waives the applicability of Section 2.15 of the Credit Agreement in connection with such reallocation.

5.    Amendments.  On the Increase Effective Date, the Credit Agreement shall be amended as follows:
(a)    The definition of “Defaulting Lender” in Section 1.01 (Defined Terms) is hereby amended by inserting the phrase “, other than via an Undisclosed Administration,” in clause (e) thereof after “has a parent company that has”.

(b)    Section 1.01 (Defined Terms) is hereby amended by inserting the following term in appropriate alphabetical order:

“Undisclosed Administration” means in relation to a Lender the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official by a supervisory authority or regulator under or based on the law in the country where such Lender is subject to home jurisdiction supervision if applicable law requires that such appointment is not to be publicly disclosed.

(c)    Clause (ii) of Section 2.18(a) of the Credit Agreement is hereby amended by replacing the “$400,000,000” contained therein with “$600,000,000.”

6.    Agreement Effectiveness.  The effectiveness of this Agreement is subject to the satisfaction of the following conditions precedent:
(a)    The Administrative Agent shall have received all of the following, each in form and substance reasonably satisfactory to the Administrative Agent:
(i)    an original counterpart of this Agreement, duly executed by the Borrower, each other Restricted Person (other than ETP GP and Regency GP), the Incremental Commitment Lenders which constitute the Majority Lenders and acknowledged by the Administrative Agent and each LC Issuer; 
(ii)    a Note (or replacement Note, as applicable) executed by the Borrower in favor of each Incremental Commitment Lender requesting the same reasonably in advance of the Increase Effective Date;
(iii)    a certificate dated as of the Increase Effective Date, signed by a Responsible Officer of the Borrower certifying that each of the conditions to the increase of Commitments contemplated in this Agreement and as set forth in Section 2.18 of the Credit Agreement shall have occurred and been complied with and that, before and after 

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giving effect to the increase of Commitments contemplated by this Agreement, no Default or Event of Default exists;
(iv)    a certificate dated as of the Increase Effective Date, signed by Responsible Officers of the Borrower and each Restricted Person certifying that attached thereto is a true and complete copy of (a) its charter (or similar formation document) (or that there have been no changes to its charter (or similar formation document) since delivery thereof to Administrative Agent on the Closing Date except as attached to such certificate), (b) a good standing certificate from its state of organization dated as of a recent date, (c) its bylaws (or similar governing document) (or that there have been no changes to its bylaws (or similar governing document) since delivery thereof to Administrative Agent on the Closing Date except as attached to such certificate), (d) resolutions of its board of directors or other governing body approving and authorizing its execution, delivery and performance of this Agreement, and (e) signature and incumbency certificates of its officers authorized to act as Responsible Officers in connection with this Agreement (or that there have been no changes to  the incumbency certificates delivered to Administrative Agent on the Closing Date except as set forth in such certificate); and
(v)    a favorable opinion of each of (a) Latham & Watkins LLP, counsel to the Restricted Persons, and (b) the General Counsel of ETP, LLC, in each case in form and substance reasonably satisfactory to the Administrative Agent, relating to this Agreement and any Restricted Persons’ consent to this Agreement, addressed to the Administrative Agent and each Lender, and the Borrower hereby requests such counsel to deliver such opinion.
(b)    The Borrower shall have paid all fees, charges and disbursements of counsel to the Administrative Agent payable pursuant to the terms of the Credit Agreement to the extent invoiced at least one (1) day prior to the Increase Effective 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 Increase Effective Date (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent).
(c)    The Incremental Commitment Lenders shall have received at least three (3) Business Days prior to the Increase Effective Date, to the extent requested at least five (5) days prior to the Increase Effective Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act.

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The date on which such conditions have been satisfied (or waived) is referred to herein as the “Increase Effective Date”.
7.    Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and each of the Incremental Commitment Lenders as follows:
(a)    This Agreement has been duly authorized by all necessary limited partnership action and constitutes the binding obligation of the Borrower.
(b)            The Borrower and each Restricted Person party hereto has duly taken all action necessary to authorize the execution and delivery by it of this Agreement and to authorize the consummation of the transactions contemplated hereby and the performance of its obligations hereunder.
(c)            The execution and delivery by the Borrower and each Restricted Person party hereto of this Agreement, the performance by each of its obligations hereunder, and the consummation of the transactions contemplated hereby, do not and will not (i) conflict with any provision of (A) any Law, (B) the organizational documents of the Borrower, any of its Subsidiaries or the General Partner, (C) any agreement governing material Indebtedness for borrowed money of the Restricted Persons or (D) any other material agreement, judgment, license, order or permit applicable to or binding upon the Borrower, any of its Restricted Subsidiaries or the General Partner, (ii) result in the acceleration of any material Indebtedness owed by the Borrower, any of its Restricted Subsidiaries or the General Partner, or (iii) result in or require the creation of any Lien upon any assets or properties of the Borrower, any of its Restricted Subsidiaries or the General Partner.  No permit, consent, approval, authorization or order of, and no notice to or filing, registration or qualification with, any Tribunal or third party is required in connection with the execution, delivery or performance by any Restricted Person of this Agreement or to consummate any transactions contemplated hereby. 
(e)            After giving effect to this Agreement, no Default or Event of Default has occurred and is continuing.
8.        Confirmation of Loan Documents.    By its execution on the respective signature lines provided below, as of the Increase Effective Date, each of the Restricted Persons party hereto hereby confirms and ratifies all of its obligations and the Liens granted by it under the Loan Documents (in each case, as modified hereby as of such date) to which it is a party, represents and warrants that the representations and warranties set forth in such Loan Documents are complete and correct in all material respects on the date hereof as if made on and as of such date, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be complete and correct in all material respects as of such specified earlier date and confirms that all references in 

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such Loan Documents to the “Credit Agreement” (or words of similar import) refer to the Credit Agreement as amended hereby as of such date without impairing any such obligations or Liens in any respect.
9.        Effect of Agreement.      On and after the Increase Effective Date, each reference to the Credit Agreement in any Loan Document shall be deemed to be a reference to the Credit Agreement, as supplemented by this Agreement. On and after the Increase Effective Date, this Agreement shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents. On and after the Increase Effective Date, the terms “Agreement”, “this Agreement”, “herein”, “hereinafter”, “hereto”, “hereof”, and words of similar import, as used in the Credit Agreement, shall, unless the context otherwise requires, mean the Credit Agreement as supplemented by this Agreement.  
10.        No Waiver.    The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.
11.            Confidentiality.  The parties hereto agree that all information received from the Borrower or any Subsidiary in connection with this Agreement shall be deemed to constitute Information, for purposes of Section 10.07 of the Credit Agreement, regardless of whether such information was clearly identified at the time of delivery as confidential.
12.            Counterparts.  This Agreement may be executed by all parties hereto in any number of separate counterparts each of which may be delivered in original, facsimile or other electronic (e.g., “.pdf”) form and all of such counterparts taken together constitute one instrument.
13.        References.  The words “hereby,” “herein,” “hereinabove,” “hereinafter,” “hereinbelow,” “hereof,” “hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular article, section or provision of this Agreement.  
14.            Headings Descriptive.  The headings of the several sections of this Agreement are inserted for convenience only and do not in any way affect the meaning or construction of any provision of this Agreement.
15.            Governing Law.  This Agreement is governed by and will be construed in accordance with the law of the State of New York.

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16.            Final Agreement of the Parties.  THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Signatures on following pages.]

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

ENERGY TRANSFER EQUITY, L.P. 
By: LE GP, LLC, its general partner

ETE GP ACQUIRER LLC
By: Energy Transfer Equity, L.P., its sole member 
By: LE GP, LLC, its general partner

ETE SERVICES COMPANY, LLC
By: Energy Transfer Equity, L.P., its sole member 
By: LE GP, LLC, its general partner

ETE COMMON HOLDINGS MEMBER, LLC

ETE COMMON HOLDINGS, LLC

By:/s/ John W. McReynolds                     
      John W. McReynolds
      President and Chief Financial Officer

[Signature Page to Amendment and Incremental Commitment Agreement No. 2]

 

ENERGY TRANSFER PARTNERS, L.L.C. 

By:    /s/ Martin Salinas Jr.                           
Martin Salinas Jr. 
Chief Financial Officer

[Signature Page to Amendment and Incremental Commitment Agreement No. 2]

 

REGENCY GP LLC

REGENCY EMPLOYEES MANAGEMENT HOLDINGS LLC
By: Regency GP LP, its sole member
By: Regency GP LLC, its general partner

REGENCY EMPLOYEES MANAGEMENT LLC
By: Regency GP LLC 
AND 
By: Regency Employee Management Holdings, LLC, its members
By: Regency GP LP, its sole member
By: Regency GP LLC, its general partner

By:/s/ Michael J. Bradley                                
      Michael J. Bradley
      President and Chief Executive Officer

[Signature Page to Amendment and Incremental Commitment Agreement No. 2]

 

 [______________], as a New Lender
By:    
Name:  
Title: 

[Signature Page to Amendment and Incremental Commitment Agreement No. 2]

 

[______________], as an Existing Lender
By:    
Name:  
Title: 

[Signature Page to Amendment and Incremental Commitment Agreement No. 2]

 

Accepted and Agreed:

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as Administrative Agent and LC Issuer

By:    ____________________________
Name:
Title: 

By:    ____________________________
Name:
Title: 

THE BANK OF TOKYO MITSUBISHI UFJ, LTD.,
as LC Issuer

By:    ____________________________
Name:
Title: 

THE ROYAL BANK OF SCOTLAND PLC,
as LC Issuer

By:    ____________________________
Name:
Title: 

ROYAL BANK OF CANADA,
as LC Issuer

By:    ____________________________
Name:
Title: 

[Signature Page to Amendment and Incremental Commitment Agreement No. 2]

 

Annex A
COMMITMENTS

	
					
	Lender
	Existing Commitment
	Amount of Commitment Increase
	New
Commitment
	Percentage

	Credit Suisse AG, Cayman Islands Branch
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Royal Bank of Canada
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	The Royal Bank of Scotland PLC
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	The Bank of Tokyo Mitsubishi UFJ, Ltd.
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Mizuho Bank, Ltd.
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Bank of America, N.A.
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Barclays Bank PLC
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Citibank, N.A.
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Deutsche Bank AG New York Branch
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Goldman Sachs Bank USA
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Morgan Stanley Senior Funding, Inc.
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	UBS AG, Stamford Branch
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	Compass Bank
	$48,422,131.15
	$13,015,368.85
	$61,437,500.00
	5.12%

	DNB Bank ASA, Grand Cayman Branch
	$37,028,688.49
	$24,408,811.51
	$61,437,500.00
	5.12%

	Sumitomo Mitsui Banking Corporation
	$30,000,000.00
	$30,000,000.00
	$60,000,000.00
	5.00%

	BNP Paribas
	$28,483,606.56
	$32,953,893.44
	$61,437,500.00
	5.12%

	JPMorgan Chase Bank, N.A.
	$25,000,000.00
	$12,500,000.00
	$37,500,000.00
	3.13%

	Wells Fargo Bank, N.A.
	$25,000,000.00
	$7,000,000.00
	$32,000,000.00
	2.67%

	SunTrust Bank
	$25,000,000.00
	$12,500,000.00
	$37,500,000.00
	3.13%

	Credit Agricole Corporate and Investment Bank
	---
	$61,437,500.00
	$61,437,500.00
	5.12%

	ING Capital LLC
	---
	$50,000,000.00
	$50,000,000.00
	4.17%

	TOTAL
	$800,000,000.00
	$400,000,000.00
	$1,200,000,000.00
	100.00%

 

Annex B
Addresses for Notices

	
		
	Credit Agricole Corporate and Investment Bank
	Front Office:
Credit Agricole Corporate and Investment Bank
1100 Louisiana St. Suite 4750
Houston, TX 77002
Attention: Nimisha Srivastav 
E-mail: nimisha.srivastav@ca-cib.com
Phone: (713) 890-8606
Dixon Schultz
E-mail: Dixon.schultz@ca-cib.com
Phone: (713) 890-8607
Mike Willis
E-mail: michael.willis@ca-cib.com
Phone: (713) 890-8608

Syndication:
Credit Agricole Corporate and Investment Bank
1301 Avenue of the Americas
New York, NY 10019
Attention: Lucie Campos
Phone: (212) 261-7879
E-mail: lucie.campos-caresmel@ca-cib.com

	ING Capital LLC
	Credit:
ING Capital LLC 
1325 Avenue of the Americas 
New York, NY 10019
Attention: Subhba Pasumarti
Phone: (646) 424-7769 
Fax: (646) 424-7484 
E-mail: subha.pasumarti@ing.com
David Paulzak
Tel: 646-424-6746 
Fax: 646-424-7484 
E-mail: david.paulzak@ing.com

Operations:
Loan Services
ING Financial Services LLC
1325 Avenue of the Americas
New York, NY 10019
Attention: Richard Coley 
Tel: 646-424-8220
Fax: 646-424-8251 
E-mail: richard.coley@ing.comExhibit1011stAmendmenttoLease_660WhitePlainsRd

Exhibit 10.1

FIRST AMENDMENT TO LEASE

This FIRST AMENDMENT TO LEASE (this “Agreement”), made as of the 30th day of June, 2014 (the “Effective Date”), by and between RA 660 WHITE PLAINS ROAD LLC, a New York limited liability company (“Landlord”), having an address c/o RXR Realty LLC, 660 White Plains Road, Tarrytown, New York 10591, and PRESTIGE BRANDS, INC., a Delaware corporation (“Tenant”), having its principal place of business at 660 White Plains Road, Tarrytown, New York 10591.

RECITALS

WHEREAS, Landlord and Tenant entered into an Agreement of Lease, made as of June 26, 2012 (the “Original Lease”), for the lease of 42,616 rentable square feet of space (the “Original Premises”) on the second (2nd) floor of the building located at 660 White Plains Road, Tarrytown, New York (the “Building”); and

WHEREAS, Landlord and Tenant desire to amend the Original Lease so as to, among other things, (i) provide for Tenant to lease from Landlord that certain 15,470 rentable square feet of additional space (the “15,470 Expansion Premises”) located immediately adjacent and contiguous to the Original Premises on the second (2nd) floor of the Building; such 15,470 Expansion Premises being substantially as shown on the Rental Plan annexed hereto as Exhibit “1”; and (ii) extend the Term of the Original Lease; all subject to and in accordance with the terms and conditions of this Agreement.  The parties hereby stipulate and agree that the 15,470 Expansion Premises shall be deemed to have a rentable area of 15,470 rentable square feet.  

NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which being hereby acknowledged, the parties agree as follows:

ARTICLE I
Definitions

1.1    The recitals are specifically incorporated into the body of this Agreement and shall be binding upon the parties hereto.

1.2    Unless expressly set forth to the contrary and except as modified by this Agreement, all defined terms shall have the meanings as ascribed to them in the Original Lease.

1.3    As used in this Agreement, the term “Lease” shall mean and refer to the Original Lease, as modified and amended by this Agreement.

ARTICLE II
Lease Modifications

The Original Lease is hereby modified and amended as follows:

2.1    Space.  Effective as of the 15,470 Expansion Premises Term Commencement Date (as such term is defined in Section 2.2(A) below), Article 1 of the Original Term Lease is hereby modified and amended as follows:

(A)    Landlord shall lease to Tenant, and Tenant shall hire and let from Landlord, the 15,470 Expansion Premises, subject to all of the terms of the Original Lease, as modified by this Agreement;

(B)    Except as may be otherwise indicated by the context of its usage, each reference to the terms “Premises” and “Demised Premises” in the Original Lease and this Agreement shall mean the Original Premises together with the 15,470 Expansion Premises;

(C)    The parties hereby stipulate and agree that such combined Demised Premises shall be deemed to consist of 58,086 rentable square feet, in the aggregate; and

(D)    The term “Tenant’s Proportionate Share” shall mean (i) 16.76% when used in relation to the Original Premises only; or (ii) 6.08% when used in relation to the 15,470 Expansion Premises only; or (iii) 22.85% when used in relation to the entire Demised Premises.

2.2    Term.  Effective as of the date hereof, Article 2 of the Original Lease is hereby modified and amended as follows:

(A)    The Term of the Lease, as it relates to the 15,470 Expansion Premises only, shall commence on the date (the “15,470 Expansion Premises Term Commencement Date”) on which occurs the later of (i) the delivery by Landlord to Tenant of a fully-executed original of this Agreement, (ii) the tender by Landlord to Tenant of vacant and broom clean possession of the 15,470 Expansion Premises (“Delivery Condition”), and (iii) September 1, 2014.  Landlord and Tenant acknowledge and agree that the 15,470 Expansion Premises is currently encumbered by a lease between Landlord and a third party tenant and that such third party tenant lease is scheduled to expire on August 31, 2014, and therefore the 15,470 Expansion Premises Term Commencement Date is expected to occur on September 1, 2014 (the “Anticipated 15,470 Expansion Premises Term Commencement Date”).  In the event Landlord is unable to deliver the 15,470 Expansion Premises to Tenant in Delivery Condition by the Anticipated 15,470 Expansion Premises Term Commencement Date, and such inability is not due to the Tenant’s acts or omissions, then for every day after the Anticipated 15,470 Expansion Premises Term Commencement Date, until the date of delivery of the 15,470 Expansion Premises in Delivery Condition, the Rent attributable to the 15,470 Expansion Premises shall abate at the rate of one (1) day for every day of delay in delivering the 15,470 Expansion Premises in Delivery Condition (which abatement shall commence on 15,470 Expansion Premises Rent Commencement Date and continue until fully realized).  As of the 15,470 Expansion Premises Term Commencement Date, Tenant, its agents and contractors shall be afforded access to the 15,470 Expansion Premises for the purpose of performing the Tenant’s Expansion Work (as such term is defined in Section 2.4 of this Agreement), subject to and in accordance with the applicable terms and conditions of this Agreement.  From and after the first date on which Tenant has completed the Tenant’s Expansion Work and all municipal inspections have been successfully completed with respect thereto, Tenant shall be permitted to use and occupy the 15,470 Expansion Premises for the conduct of its business.  During the period from the 15,470 Expansion Premises Term Commencement Date through and including the day immediately preceding the 15,470 Expansion Premises Rent Commencement Date (hereinafter defined), Tenant shall not be responsible for the payment of Rent (as such term is defined under Article 3 of the Original Lease, as modified and amended by Section 2.3 of this Agreement) or any of the items of additional rent contemplated under Articles 6, 11 or 12 of the Original Lease, as modified and amended by various Sections of this Agreement.  Tenant waives any right to rescind this Agreement or the Original Lease under Section 223-a of the New York Real Property Law or any successor statute of similar import then in force and further waives the right to recover any damages which may result from Landlord’s failure to deliver possession of the 15,470 Expansion Premises on any scheduled 15,470 Expansion Premises Commencement Date.

(B)    Subject to postponement on account of Landlord Expansion Delay (as such term is defined in Section 2.2(C) below), if any, Tenant’s obligation to pay, in each case solely with respect to the 15,470 Expansion Premises, Rent pursuant (and subject) to Article 3 of the Original Lease (as modified by Section 2.3 of this Agreement) and all items of additional rent contemplated under Articles 6, 11 and 12 of the Original Lease (as modified by various sections of this Agreement) shall commence on the date (the “15,470 Expansion Premises Rent Commencement Date”) that is ninety (90) days following the 15,470 Expansion Premises Term Commencement Date, without regard to the timing of performance or completion of the Tenant’s Expansion Work.  Notwithstanding the foregoing, in the event of the accrual of any Landlord Expansion Delay, the 15,470 Expansion Premises Rent Commencement Date shall be postponed until the date on which occurs the sooner of (a) the date that follows the 15,470 Expansion Premises Term Commencement Date by a number of days equal to the sum of ninety (90) plus the aggregate number of days of Landlord Expansion Delay so accrued, or (b) the first date on which Tenant takes occupancy of the 15,470 Expansion Premises for the purpose of conducting its business therein, but in no event earlier than the date that is ninety (90) days following the 15,470 Expansion Premises Term Commencement Date.  Additionally, in the event the aggregate number of days of Landlord Expansion Delay exceeds one hundred and twenty (120) days and, as a result thereof, Tenant is unable to occupy the 15,470 Expansion Premises for the conduct of its business therefrom by April 1, 2015, then Tenant shall be entitled to a Rent credit in the aggregate amount of the Applicable LED Credit Amount (hereinafter defined), to be applied, until exhausted, against the monthly installment(s) of Rent payable with respect to the 15,470 Expansion Premises during the first (and, as necessary, each subsequent) full calendar month of the first Expansion Lease Year (as such term is defined in Section 2.3(D) of this Agreement).  As used herein, the term “Applicable LED Credit Amount” shall mean the product of (x) $338.51, multiplied by (y) the number of days by which the total number of days of accrued Landlord Expansion Delay exceeds one hundred twenty (120).

(C)    As used herein, the term “Landlord Expansion Delay” shall mean the aggregate number of days that substantial completion of the Tenant’s Expansion Work and Tenant’s initial occupancy for the purpose of conducting its business in the 15,470 Expansion Premises are delayed beyond the date that is ninety (90) days following the 15,470 Expansion Premises Term Commencement Date on account of any one or more of the following: (i) failure by Landlord to respond to a request by Tenant for Landlord’s approval of a set of Proposed Construction Drawings for the Tenant’s Expansion Work or any proposed Contractor within the time period allotted therefor pursuant to Article 5 of this Original Lease (as made applicable to the Tenant’s Expansion Work pursuant to the provisions of Section 2.4(B) of this Agreement); (iii) any unreasonable interference by Landlord, its agents or contractors with the performance of the Tenant’s Expansion Work by Tenant’s Contractors; (iv) Landlord’s failure to provide services to Tenant and Tenant’s contractors in connection with their performance of the Tenant’s Expansion Work, as required by and subject to Section 2.5(B) of this Agreement); or (v) the failure or refusal by Landlord to reasonably cooperate with Tenant, at no out-of-pocket cost to Landlord, with respect to the application for, and pursuit of the issuance of, a building permit for the Tenant’s Expansion Work.  Tenant hereby covenants and agrees to provide Landlord with written notice of any purported Landlord Expansion Delay (which written notice may be delivered via e-mail from Tenant’s designated project manager to Landlord’s designated project manager) promptly following Tenant having learned of the subject Landlord Expansion Delay, and if Tenant fails to so notify Landlord within two (2) business days after the purported Landlord Expansion Delay, any further delay which Landlord proves could have been avoided if it had received such notice shall not be considered a Landlord Expansion Delay.  Moreover, in the event of an action or omission that would otherwise have constituted a Landlord Expansion Delay hereunder, same shall not be considered a Landlord Expansion Delay hereunder if and to the extent the progress of the Tenant’s Expansion Work is then simultaneously being delayed by other forces outside of the reasonable control of Landlord.

(D)    Unless extended or sooner terminated in accordance with the terms of the Lease, the Term of the Lease, as it relates to the 15,470 Expansion Premises, shall expire on the date (the “Extended Expiration Date”) on which occurs the sixth (6th) anniversary of either (i) the day immediately preceding the 15,470 Expansion Premises Rent Commencement Date (but only if the 15,470 Expansion Premises Rent Commencement Date occurred on the first day of a calendar month), or (ii) the last day of the month in which occurred the 15,470 Expansion Premises Rent Commencement Date (if the 15,470 Expansion Premises Rent Commencement Date did not occur on the first day of a calendar month).

(E)    The Term of the Lease, as it relates to the Original Premises (currently scheduled to expire on April 30, 2018), is hereby extended until the Extended Expiration Date, unless extended or sooner terminated in accordance with the terms of the Lease.  Accordingly, all references to the term “Expiration Date” under the Lease, or otherwise to the scheduled date of expiration of the Term of the Lease (as it relates to the entire Demised Premises), shall hereafter mean and refer to the Extended Expiration Date; it being the express intention of the parties that, following the 15,470 Expansion Premises Term Commencement Date, the Term of the Lease as it relates to the Original Premises shall run coterminously with the Term of the Lease as it relates to the 15,470 Expansion Premises.

2.3    Rent. 

(A)    During the period from the Effective Date of this Agreement through and including April 30, 2018, the Rent for the Original Premises shall continue to be payable in accordance with the original provisions of Article 3 of the Original Lease.

(B)    From and after the 15,470 Expansion Premises Rent Commencement Date, Tenant shall also be obligated to pay Rent with respect to the 15,470 Expansion Premises.  Accordingly, Article 3 of the Original Lease is hereby modified and amended so as to provide that, during the period from the 15,470 Expansion Premises Rent Commencement Date through and including April 30, 2018, the Rent for the 15,470 Expansion Premises shall be payable by Tenant in accordance with the following schedule:

During the first Expansion Lease Year, the Rent for the 15,470 Expansion Premises shall be $123,555.96, payable in equal monthly installments of $10,296.33.  Landlord and Tenant acknowledge and agree that, as an inducement for Tenant to enter into this Agreement, the Rent for the 15,470 Expansion Premises for the first Expansion Lease Year (as set forth in the preceding sentence) has been calculated only on a 5,372 rentable square foot portion of the total 15,470 rentable square foot 15,470 Expansion Premises.

During the second Expansion Lease Year, the Rent for the 15,470 Expansion Premises shall be $244,893.48, payable in equal monthly installments of $20,407.79.  Landlord and Tenant acknowledge and agree that, as an inducement for Tenant to enter into this Agreement, the Rent for the 15,470 Expansion Premises for the second Expansion Lease Year (as set forth in the preceding sentence) has been calculated only on a 10,421 rentable square foot portion of the total 15,470 rentable square foot 15,470 Expansion Premises.

During the third Expansion Lease Year, the Rent for the 15,470 Expansion Premises shall be $379,014.96, payable in equal monthly installments of $31,584.58.

During the period from the first day of the fourth Expansion Lease Year through and including April 30, 2018, the Rent for the 15,470 Expansion Premises shall be payable in equal monthly installments of $31,584.58.

Should the 15,470 Expansion Premises Rent Commencement Date be a date other than the first day of a calendar month, Tenant shall pay a pro rata portion of the Rent with respect to the 15,470 Expansion Premises on a per diem basis (using a $10,296.33 full monthly installment amount divided by the actual number of days in the calendar month in which the 15,470 Expansion Premises Rent Commencement Date occurs) for the period from the 15,470 Expansion Premises Rent Commencement Date to and including the last day of that current calendar month, and the first Expansion Lease Year shall include said partial month.  The Rent payable for such partial month shall be in addition to the Rent payable for the first Expansion Lease Year pursuant to the Rent schedule set forth above in this Section 2.3(B) and shall be payable by Tenant on the 15,470 Expansion Premises Rent Commencement Date.

(C)    Article 3 of the Original Lease is hereby further modified and amended so as to provide that, from and after May 1, 2018, the Rent for entire Demised Premises (i.e., including both the Original Premises and the 15,470 Expansion Premises) shall be payable by Tenant in accordance with the following schedule:

During the period from May 1, 2018 through and including the last day of the fourth Expansion Lease Year, the Rent for the entire Demised Premises shall be payable in equal monthly installments of $118,592.25.

During the fifth Expansion Lease Year, the Rent for the entire Demised Premises shall be $1,423,107.00, payable in equal monthly installments of $118,592.25.

During the sixth Expansion Lease Year, the Rent for the entire Demised Premises shall be $1,481,193.00, payable in equal monthly installments of $123,432.75.

(D)    The term “Expansion Lease Year” shall mean a period of twelve (12) consecutive months following the 15,470 Expansion Premises Rent Commencement Date.  The first Expansion Lease Year shall commence on the 15,470 Expansion Premises Rent Commencement Date; provided, however, that, notwithstanding the first sentence of this subparagraph, if the 15,470 Expansion Premises Rent Commencement Date is not the first day of a calendar month, then the first Expansion Lease Year shall also include the additional period from the 15,470 Expansion Premises Rent Commencement Date to the end of the calendar month in which occurs the 15,470 Expansion Premises Rent Commencement Date.  Each succeeding Expansion Lease Year shall end on the anniversary date of the last day of the preceding Expansion Lease Year.  For example, if the 15,470 Expansion Premises Rent Commencement Date is December 1, 2014, then the first Expansion Lease Year would begin on December 1, 2014 and end on November 30, 2015, and each succeeding Expansion Lease Year would begin on December1st and end on November 30th.  If, however, the 15,470 Expansion Premises Rent Commencement Date is December 2, 2014, then the first Expansion Lease Year would begin on December 2, 2014 and end on December 31, 2015, the second Expansion Lease Year would begin on January 1, 2016 and end on December 31, 2016, and each succeeding Expansion Lease Year would begin on January 1st and end on December 31st.

2.4    Condition of Demised Premises; Tenant’s Expansion Work.

(A)    Tenant hereby acknowledges and agrees that Landlord has completed all items of work previously required to be completed by Landlord under the Original Lease.  In addition, Tenant hereby acknowledges and agrees that Tenant has inspected the 15,470 Expansion Premises and that, subject to the express representations, warranties and covenants of Landlord set forth in the Lease (e.g., Landlord’s tender obligation under this Agreement and Landlord’s maintenance and repair obligations under Article 7 of the Original Lease), Tenant is accepting the 15,470 Expansion Premises in its “as is” condition and Landlord shall have no obligation to perform any work, make any alterations or, except as otherwise specifically set forth in Section 2.4(B) below, incur any expense in or with respect to the 15,470 Expansion Premises in order to prepare same for occupancy by Tenant.

(B)    Notwithstanding anything to the contrary contained in Section 2.4(A) above, Tenant shall have the right, at Tenant’s sole cost and expense (except as otherwise expressly set forth below in this Section 2.4), to cause certain tenant improvement work to be performed in and to the 15,470 Expansion Premises in order to prepare same for occupancy by Tenant (collectively, the “Tenant’s Expansion Work”).  Except as otherwise modified by this Section 2.4(B), the terms, conditions and procedures that governed the design, performance and payment of and for the Tenant’s Initial Work under Article 5(C) of the Original Lease shall also govern the design, performance and payment of and for the Tenant’s Expansion Work mutatis mutandis.  However, as they relate to the Tenant’s Expansion Work only, the following specific provisions of Article 5(C) of the Original Lease are hereby modified and amended as follows:

(i)    Throughout Article 5(C), each reference to (a) the term “Tenant’s Initial Work” will be deemed to have been deleted and replaced with a corresponding reference to the “Tenant’s Expansion Work,” (b) the term “Demised Premises” will be deemed to have been deleted and replaced with a corresponding reference to the “15,470 Expansion Premises,” and (c) the term “Rent Commencement Date” will be deemed to have been deleted and replaced with a corresponding reference to the “15,470 Expansion Premises Rent Commencement Date;”

(ii)    In Article 5(C)(iv), the amount of the TIW Inspection Fee shall be $37,208.44; 

(iii)    In Article 5(C)(v)(i), the amount of the Landlord’s Contribution shall be $386,750.00; and

(iv)    The bid package preparation and delivery requirements and procedures set forth in the first sentence of Article 5(C)(iv) of the Lease shall not apply to Tenant’s Expansion Work, Landlord hereby acknowledging and agreeing that Tenant is engaging (or has engaged) Signature Construction Group, Inc. (Tenant’s general contractor for Tenant’s Initial Work) as its general contractor for the performance of Tenant’s Expansion Work.

2.5    Utilities; Schedule “B”.

(A)    From and after the 15,470 Expansion Premises Rent Commencement Date, the provisions of Article 6(A) and Schedule “B” of the Original Lease shall apply with full force and effect with respect to the entire Demised Premises (i.e., both the Original Premises and the 15,470 Expansion Premises).

(B)    Notwithstanding anything to the contrary contained in the Lease, Landlord shall not charge Tenant or Tenant’s Contractors for any utility costs, base Building HVAC costs or charges for any Building service (including use of the freight elevator, and the like) to the 15,470 Expansion Premises during the construction of Tenant’s Expansion Work and/or Tenant’s initial move-in to the 15,470 Expansion Premises and hereby grants to Tenant and its Contractors the right to utilize the services underlying such costs as necessary and required in connection with the Tenant’s Expansion Work in the 15,470 Expansion Premises, it being acknowledged by Tenant that the provision of such services are subject to the rules and regulations promulgated by Landlord and to intermittent interruptions for reasons outside of Landlord’s control (provided that Landlord agrees to use reasonable efforts to minimize the extent of any such interruptions and to respond promptly to any requests by Tenant or Tenant’s Contractors to restore the interrupted service in question).  Notwithstanding the foregoing, whether or not the Tenant’s Expansion Work and/or initial move-in to the 15,470 Expansion Premises has been completed by the 15,470 Expansion Premises Rent Commencement Date, Tenant’s obligation to pay for energy services to the 15,470 Expansion Premises, subject to and in accordance with Schedule “B” to the Original Lease, shall commence as of the 15,470 Expansion Premises Rent Commencement Date.

2.6    Taxes.

(A)    As they relate to the Original Premises only, the provisions of Article 11 of the Original Lease shall remain unaffected by this Agreement.

(B)    As they relate to the 15,470 Expansion Premises only, effective as of the 15,470 Expansion Premises Rent Commencement Date, clauses (ii) and (iii) of Article 11(A) of the Original Lease are deleted and replaced with the following:

“(ii)    “Base Year Taxes” shall mean (x) with respect to Taxes imposed on a fiscal year basis, the Taxes actually due and payable with respect to the 2014/2015 fiscal tax year, as finally determined, and (y) with respect to Taxes imposed on a calendar year basis, the Taxes actually due and payable with respect to the 2014 calendar year, as finally determined.

(iii)    “Tax Escalation Year” shall mean (x) with respect to Taxes imposed on a fiscal year basis, any fiscal tax year after the 2014/2015 fiscal tax year which shall include any part of the Term, and (y) with respect to Taxes imposed on a calendar year basis, any calendar year after the 2014 calendar year which shall include any part of the Term.”

2.7    Operating Costs.  

(A)    As they relate to the Original Premises only, the provisions of Article 12 of the Original Lease shall remain unaffected by this Agreement.

(B)    As they relate to the 15,470 Expansion Premises only, effective as of the 15,470 Expansion Premises Rent Commencement Date, clauses (ii) and (iii) of Article 12(A) of the Original Lease are deleted and replaced with the following:

“(ii)    The term “Base Operating Costs” shall mean the Operating Costs for the calendar year ending December 31, 2014 (whether or not retroactively determined).

(iii)    The term “Escalation Year” shall mean any calendar year following calendar year 2014 that shall include any part of the Term.”

2.8    Renewal Option.  The Renewal Options set forth in (and subject to the terms of) Article 51 of the Original Lease are hereby ratified and affirmed by the parties, subject only to the following modifications and clarifications:

(A)    If the subject Renewal Option was exercised with respect thereto, the first Renewal Term would commence on the day immediately following the Extended Expiration Date (as established pursuant to the provisions of Section 2.2(D) of this Agreement) and end on the fifth anniversary of such Extended Expiration Date; and

(B)    If the subject Renewal Option was exercised with respect thereto, the second Renewal Term would commence on the day immediately following the fifth anniversary of the Extended Expiration Date (as established pursuant to the provisions of Section 2.2(D) of this Agreement) and end on the tenth anniversary of such Extended Expiration Date.

2.9    Right of First Offer.  The time period within which Tenant shall be entitled to exercise the Right of First Offer provide in Article 52 of the Lease, as it relates to the initial Term, shall be extended to the date which is the last day of the fourth (4th) Expansion Lease Year (as opposed to the during the first four (4) Lease Years).  Except for the foregoing, nothing herein shall be deemed to diminish, impair, modify or otherwise affect the rights of Tenant set forth in said Article 52 of the Lease, which remain in full force and effect in accordance with their terms, as modified hereby.

ARTICLE III
Broker

3.1    Landlord and Tenant acknowledge and agree that the transaction contemplated by this Agreement did not result from the exercise by Tenant of any right or option under the Original Lease; rather, same was the product of independent negotiations between Landlord and Tenant.  Tenant represents that this Agreement was not brought about by any broker and that all negotiations with respect to this Agreement were conducted exclusively between Landlord and Tenant.  Tenant agrees that if any claim is made for commissions by any broker (specifically including, without limitation, Jones Lang LaSalle Brokerage, Inc., its successors or assigns) in connection with this Agreement or the transaction contemplated hereby, then Tenant will hold Landlord free and harmless from any and all liabilities and expenses in connection therewith, including Landlord’s reasonable attorneys’ fees and disbursements.

ARTICLE IV
Ratification

4.1    Each of Landlord and Tenant represents and warrants to the other that the Original Lease is presently in full force and effect.

4.2    The parties hereby ratify and confirm all of the terms, covenants and conditions of the Original Lease, except to the extent that those terms, covenants, conditions and provisions are amended, modified or varied by this Agreement.  If there is a conflict between the provisions of the Original Lease and the provisions of this Agreement, then the provisions of this Agreement shall control.

4.3    The covenants, agreements, terms and conditions contained in this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

IN WITNESS WHEREOF, the parties have executed this First Amendment to Lease as of the day and year first above written.

	
	
	RA 660 WHITE PLAINS ROAD LLC

	 

	By: /s/ Richard J. Conniff       

	Name: Richard J. Conniff

	Title:   Authorized Person

                        
	
	
	PRESTIGE BRANDS, INC.

	 

	By: /s/ Ron Lombardi           

	Name: Ron Lombardi

	Title: Chief Financial Officer

BY SIGNING HERETO, THE UNDERSIGNED GUARANTOR (1) CONSENTS TO THE MODIFICATIONS AND AMENDMENTS MADE TO THE LEASE PURSUANT TO THIS AGREEMENT, (2) AFFIRMS ITS OBLIGATIONS AND LIABILITIES UNDER THAT CERTAIN GUARANTY EXECUTED ON OR ABOUT JUNE 22, 2012, AND (3) AGREES THAT SUCH OBLIGATIONS AND LIABILITIES SHALL EXTEND TO THE OBLIGATIONS OF TENANT UNDER THE LEASE, AS MODIFIED, AMENDED, EXPANDED AND EXTENDED BY THIS AGREEMENT

	
	
	PRESTIGE BRANDS HOLDINGS, INC.

	By: /s/ Ron Lombardi    

	Name: Ron Lombardi

	Title: Chief Financial Officer

1

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