Document:

EX-10.2

 Exhibit 10.2 
 SECOND LIEN CREDIT AGREEMENT, 
 dated as of February 27, 2013, 

among 
 MITEL US
HOLDINGS, INC., 
 as the Borrower, 
 MITEL NETWORKS CORPORATION, 
 as the Parent, 

VARIOUS FINANCIAL INSTITUTIONS AND OTHER 
 PERSONS FROM TIME TO TIME 
 PARTIES HERETO, 

as the Lenders, 

WILMINGTON TRUST, NATIONAL ASSOCIATION 
 as the Administrative Agent, 
 and 

WILMINGTON TRUST, NATIONAL ASSOCIATION, 
 as the Collateral Agent 
  

 
 KKR ASSET
MANAGEMENT, 
 as Lead Arranger and Lead Bookrunner 

 
  

 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	 	1	  
	 SECTION 1.1 Defined Terms
	  	 	1	  
	 SECTION 1.2 Use of Defined Terms
	  	 	31	  
	 SECTION 1.3 Cross-References
	  	 	31	  
	 SECTION 1.4 Accounting and Financial Determinations
	  	 	31	  
	 SECTION 1.5 Currency Equivalents
	  	 	32	  
		
	 ARTICLE II COMMITMENTS, BORROWING PROCEDURES AND NOTES
	  	 	32	  
	 SECTION 2.1 Commitments
	  	 	32	  
	 SECTION 2.2 [Reserved]
	  	 	32	  
	 SECTION 2.3 Borrowing Procedure
	  	 	32	  
	 SECTION 2.4 Continuation and Conversion Elections
	  	 	33	  
	 SECTION 2.5 Funding
	  	 	33	  
	 SECTION 2.6 Register; Notes
	  	 	33	  
	 SECTION 2.7 Incremental Facilities
	  	 	34	  
	 SECTION 2.8 Extension of Maturity Date
	  	 	36	  
		
	 ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES
	  	 	37	  
	 SECTION 3.1 Repayments and Prepayments; Application
	  	 	37	  
	 SECTION 3.2 Interest Provisions
	  	 	40	  
	 SECTION 3.3 Fees
	  	 	41	  
		
	 ARTICLE IV CERTAIN LIBO RATE AND OTHER PROVISIONS
	  	 	41	  
	 SECTION 4.1 LIBO Rate Lending Unlawful
	  	 	41	  
	 SECTION 4.2 Deposits Unavailable
	  	 	41	  
	 SECTION 4.3 Increased Loan Costs, etc
	  	 	41	  
	 SECTION 4.4 Funding Losses
	  	 	42	  
	 SECTION 4.5 Increased Capital Costs
	  	 	42	  
	 SECTION 4.6 Taxes
	  	 	43	  
	 SECTION 4.7 Payments, Computations; Proceeds of Collateral, etc
	  	 	47	  
	 SECTION 4.8 Sharing of Payments
	  	 	49	  
	 SECTION 4.9 Setoff
	  	 	49	  
	 SECTION 4.10 Mitigation
	  	 	50	  
	 SECTION 4.11 Removal of Lenders
	  	 	50	  
		
	 ARTICLE V CONDITIONS TO LOANS
	  	 	51	  
	 SECTION 5.1 Closing Date Loans
	  	 	51	  
	 SECTION 5.2 All Loans
	  	 	55	  
		
	 ARTICLE VI REPRESENTATIONS AND WARRANTIES
	  	 	55	  
	 SECTION 6.1 Organization, etc
	  	 	55	  
	 SECTION 6.2 Due Authorization, Non-Contravention, etc
	  	 	56	  
	 SECTION 6.3 Government Approval, Regulation, etc
	  	 	56	  
	 SECTION 6.4 Validity, etc
	  	 	56	  
	 SECTION 6.5 Financial Information
	  	 	56	  
	 SECTION 6.6 No Material Adverse Change
	  	 	56	  
	 SECTION 6.7 Litigation, Labor Controversies, etc
	  	 	57	  

  
 -i-

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	Page	 
	 SECTION 6.8 Subsidiaries; Equity Interests; Obligors
	  	 	57	  
	 SECTION 6.9 Ownership of Properties
	  	 	57	  
	 SECTION 6.10 Taxes
	  	 	57	  
	 SECTION 6.11 Pension and Welfare Plans
	  	 	57	  
	 SECTION 6.12 Environmental Warranties
	  	 	58	  
	 SECTION 6.13 Accuracy of Information
	  	 	59	  
	 SECTION 6.14 Regulations U and X
	  	 	60	  
	 SECTION 6.15 Insurance
	  	 	60	  
	 SECTION 6.16 Solvency
	  	 	60	  
	 SECTION 6.17 Security Agreements
	  	 	60	  
	 SECTION 6.18 Intellectual Property
	  	 	60	  
	 SECTION 6.19 Issuance of Subordinated Debt; Status of Obligations as Senior Indebtedness, etc
	  	 	60	  
	 SECTION 6.20 Sanctions, Etc
	  	 	61	  
		
	 ARTICLE VII COVENANTS
	  	 	62	  
	 SECTION 7.1 Affirmative Covenants
	  	 	62	  
	 SECTION 7.2 Negative Covenants
	  	 	69	  
		
	 ARTICLE VIII EVENTS OF DEFAULT
	  	 	80	  
	 SECTION 8.1 Listing of Events of Default
	  	 	80	  
	 SECTION 8.2 Action if Bankruptcy
	  	 	84	  
	 SECTION 8.3 Action if Other Event of Default
	  	 	84	  
		
	 ARTICLE IX RESERVED
	  	 	84	  
		
	 ARTICLE X GUARANTY PROVISIONS
	  	 	84	  
	 SECTION 10.1 Parent Guaranty Provisions
	  	 	84	  
	 SECTION 10.2 Parent Guaranty
	  	 	84	  
	 SECTION 10.3 Guaranty Absolute, etc
	  	 	85	  
	 SECTION 10.4 Reinstatement, etc
	  	 	86	  
	 SECTION 10.5 Waiver, etc
	  	 	86	  
	 SECTION 10.6 Postponement of Subrogation, etc
	  	 	87	  
	 SECTION 10.7 Payments Made by the Parent
	  	 	87	  
		
	 ARTICLE XI ADMINISTRATIVE AGENT
	  	 	88	  
	 SECTION 11.1 Appointment and Authority
	  	 	88	  
	 SECTION 11.2 Rights as a Lender
	  	 	88	  
	 SECTION 11.3 Exculpatory Provisions
	  	 	88	  
	 SECTION 11.4 Reliance by Administrative Agent
	  	 	89	  
	 SECTION 11.5 Delegation of Duties
	  	 	89	  
	 SECTION 11.6 Resignation of Administrative Agent
	  	 	90	  
	 SECTION 11.7 Non-Reliance on Administrative Agent and Other Lenders
	  	 	91	  
	 SECTION 11.8 Administrative Agent May File Proofs of Claim
	  	 	91	  
	 SECTION 11.9 Collateral and Guaranty Matters
	  	 	92	  

  
 -ii-

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	Page	 
	 ARTICLE XII MISCELLANEOUS PROVISIONS
	  	 	93	  
	 SECTION 12.1 Waivers, Amendments, etc
	  	 	93	  
	 SECTION 12.2 Notices; Time
	  	 	94	  
	 SECTION 12.3 Payment of Costs and Expenses
	  	 	96	  
	 SECTION 12.4 Indemnification
	  	 	97	  
	 SECTION 12.5 Survival
	  	 	98	  
	 SECTION 12.6 Severability
	  	 	99	  
	 SECTION 12.7 Headings
	  	 	99	  
	 SECTION 12.8 Execution in Counterparts, Effectiveness, etc
	  	 	99	  
	 SECTION 12.9 Governing Law; Entire Agreement
	  	 	99	  
	 SECTION 12.10 Successors and Assigns
	  	 	99	  
	 SECTION 12.11 Other Transactions
	  	 	106	  
	 SECTION 12.12 Forum Selection and Consent to Jurisdiction
	  	 	107	  
	 SECTION 12.13 Service of Process, Appointment of Process Agent
	  	 	107	  
	 SECTION 12.14 Waiver of Jury Trial
	  	 	108	  
	 SECTION 12.15 No Immunity
	  	 	108	  
	 SECTION 12.16 Judgment Currency
	  	 	109	  
	 SECTION 12.17 PATRIOT Act Notification
	  	 	109	  
	 SECTION 12.18 Defaulting Lenders
	  	 	109	  
	 SECTION 12.19 Confidentiality
	  	 	110	  
	 SECTION 12.20 Intercreditor Agreement
	  	 	111	  
		
	 SCHEDULE I - Disclosure Schedule
	  			
	 SCHEDULE II - Term Loan Percentages; LIBOR Office; Domestic Office; Administrative Agent’s Office
	  			
		
	 EXHIBIT A - Form of Note
	  			
	 EXHIBIT B - Form of Borrowing Request
	  			
	 EXHIBIT C - Form of Continuation/Conversion Notice
	  			
	 EXHIBIT D - Form of Lender Assignment Agreement
	  			
	 EXHIBIT E - Form of Compliance Certificate
	  			
	 EXHIBIT F - Form of Subsidiary Guaranty
	  			
	 EXHIBIT G-1 - Form of U.S. Pledge and Security Agreement
	  			
	 EXHIBIT G-2 - Form of Canadian Pledge and Security Agreement
	  			
	 EXHIBIT H - Form of Intercompany Subordination Agreement
	  			
	 EXHIBIT I - Form of Intercreditor Agreement
	  			
	 EXHIBIT J-1 - Form of Sponsor Permitted Assignee Assignment Agreement
	  			
	 EXHIBIT J-2 - Form of Affiliate Assignment Notice
	  			
	 EXHIBIT K - Form of Master Intercompany Note
	  			

  
 -iii-

 SECOND LIEN CREDIT AGREEMENT 

THIS SECOND LIEN CREDIT AGREEMENT, dated as of February 27, 2013 is among MITEL NETWORKS CORPORATION, a company organized under the
laws of Canada (the “Parent”) (such capitalized term and all other capitalized terms used in this preamble and the recitals set forth below shall, unless otherwise defined therein, have the meanings set forth in
Section 1.1), MITEL US HOLDINGS, INC., a Delaware corporation (the “Borrower”), the various financial institutions and other Persons from time to time parties hereto which extend Commitments to make Loans to the Borrower
(the “Lenders”), WILMINGTON TRUST, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), WILMINGTON TRUST, NATIONAL ASSOCIATION, as collateral agent for the
Secured Parties (in such capacity, the “Collateral Agent”) and KKR ASSET MANAGEMENT LLC, as lead arranger and lead bookrunner (in such capacity, the “Arranger”). 

W I T N E S S E T H: 
 WHEREAS, for purposes of providing for the ongoing working capital needs and general corporate purposes of the Borrower and its Subsidiaries and to refinance existing obligations under the Existing Credit
Agreements, 
 (a) the Borrower has requested that the Lenders provide Commitments pursuant to which Loans will
be made in a single Borrowing on the Closing Date to the Borrower; and 
 (b) The Borrower and the Parent shall
obtain, pursuant to the First Lien Credit Agreement (as defined below), $240,000,000 in senior secured Indebtedness, of which $200,000,000 shall be borrowed by the Borrower as term loans under the First Lien Credit Agreement on the Closing Date;

 WHEREAS, the Lenders are willing, on the terms and subject to the conditions hereinafter set forth, to extend the Commitments
and make Loans to the Borrower; 
 NOW, THEREFORE, the parties hereto agree as follows. 

ARTICLE I 

DEFINITIONS AND ACCOUNTING TERMS 
 SECTION 1.1 Defined Terms. The following terms (whether or not underscored) when used in this Agreement, including its preamble and recitals, shall, except where the context otherwise
requires, have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof): 

“Additional Commitment Lender” is defined in Section 2.8. 

“Administrative Agent” is defined in the preamble and includes each other Person appointed as a successor Administrative
Agent pursuant to Section 11.6. 
 “Administrative Agent Fee Letter” means that certain fee letter
dated as of the date hereof among the Borrower and the Administrative Agent. 

 “Administrative Questionnaire” means an administrative questionnaire in the
form approved by the Administrative Agent. 
 “Affected Lender” is defined in Section 4.11.

 “Affiliate” of any Person means any other Person which, directly or indirectly, controls, is controlled by
or is under common control with such Person. “Control” of a Person means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person (whether through the ability to exercise
voting power, by contract or otherwise). 
 “Agents” means, collectively, the Administrative Agent and, the
Collateral Agent and the Arranger. 
 “Agreement” means, on any date, this Second Lien Credit Agreement as
originally in effect on the Effective Date and as thereafter from time to time amended, supplemented, amended and restated or otherwise modified from time to time and in effect on such date. 

“Alternate Base Rate” means, for any day, a fluctuating rate of interest per annum (rounded upward, if necessary, to the
next highest 1/16 of 1%) equal to the highest of (i) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its “prime rate,” (ii) the Federal Funds Rate in effect on such
day plus 1/2 of 1% and (iii) the LIBO Rate for loans having an Interest Period of one month plus 1.00%. Changes in the rate of interest on that portion of any Loans maintained as Alternate Base Rate Loans will take effect simultaneously
with each change in the Alternate Base Rate. The Administrative Agent will give notice promptly to the Borrower and the Lenders of any change in the Alternate Base Rate; provided that the failure to give such notice shall not affect the
Alternate Base Rate in effect after such change. The “prime rate” is a rate set by Bank of America, N.A. based upon various factors, including Bank of America, N.A.’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans. Any change in such rate announced by Bank of America, N.A. shall take effect at the opening of business on the day specified in the public announcement of such change. 

“Alternate Base Rate Loan” means a Loan bearing interest at a floating rate determined by reference to the Alternate
Base Rate. 
 “Applicable Margin” means, at any time (a) 9.75% for Loans maintained as LIBO Rate Loans and
(b) 8.75% for Loans maintained as Alternate Base Rate Loans. 
 “Approved Fund” means any Person (other
than a natural Person) that (a) is engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business; and (b) is administered or managed by a Lender,
an Affiliate of a Lender or a Person or an Affiliate of a Person that administers or manages a Lender. 

“Arranger” is defined in the preamble. 
 “Assignee Lender” means an assignee under a Lender Assignment Agreement. 

  
 2 

 “Authorized Officer” means, relative to any Obligor, those of its officers,
general partners or managing members (as applicable) whose signatures and incumbency shall have been certified to the Administrative Agent and the Lenders pursuant to Section 5.1.1. 

“Available Amount” means, as of any date of determination, (x) the cumulative amount of Excess Cash Flow for all
Fiscal Years then ended after the Closing Date (commencing with the Fiscal Year ending April 30, 2013) for which financial statements have been delivered as required under Section 7.1.1(b), to the extent such Excess Cash Flow was
not and shall not be required to prepay Loans in accordance with Section 3.1.1(e) minus (y) the sum of all amounts used on or prior to such date of determination to (i) make Restricted Payments pursuant to clause
(2) of the proviso to Section 7.2.6 or (ii) prepay Indebtedness pursuant to the proviso to Section 7.2.8. 
 “Board of Directors” means, with respect to (i) a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board of
directors, (ii) a partnership, the board of directors or other equivalent governing body of the general partner of the partnership, (iii) a limited liability company, the board of directors or other equivalent governing body, and in the
absence of same, the manager or board of managers or the managing member or members (or equivalent) of any controlling committee thereof, and (iv) any other Person, the board or committee of such Person serving a function equivalent to that of
a board of directors or general partner. 
 “Borrower” is defined in the preamble. 

“Borrowing” means the Loans of the same type and, in the case of LIBO Rate Loans, having the same Interest Period made
by all Lenders required to make such Loans on the same Business Day and pursuant to the same Borrowing Request in accordance with Section 2.3. 
 “Borrowing Request” means a Loan request and certificate duly executed by an Authorized Officer of the Borrower substantially in the form of Exhibit B hereto. 

“Business Day” means 
 (a) any day which is neither a Saturday or Sunday nor a legal holiday on which banks are authorized or required to be closed in New York, New York, or Toronto, Ontario; and 

(b) relative to the making, continuing, prepaying or repaying of any LIBO Rate Loans, any day which is a Business Day
described in clause (a) above and which is also a day on which dealings in U.S. Dollars are carried on in the London interbank eurodollar market. 
 “Canadian Dollar” and “C$” each mean the lawful currency of Canada. 
 “Canadian Dollar Equivalent” means, at any time, the equivalent amount thereof in Dollars as determined by the Administrative Agent at such time on the basis of the Spot Rate for the
purchase of Dollars with Canadian Dollars. 

  
 3 

 “Canadian Pension Plan” means (a) a “pension plan” or
“plan” which is subject to applicable pension benefits legislation in any jurisdiction of Canada and is applicable to employees resident in Canada of the Parent or any Canadian Subsidiary of the Parent, or (b) any pension benefit plan
or similar arrangement applicable to employees reporting to work in Canada of the Parent or any Canadian Subsidiary of the Parent. 
 “Canadian Pledge and Security Agreement” means the Pledge and Security Agreement executed and delivered by the Parent and each Canadian Subsidiary Guarantor, substantially in the form of
Exhibit G 2 hereto, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“Canadian Subsidiary” means any Subsidiary that is incorporated or organized under the laws of Canada or any
jurisdiction thereof. 
 “Canadian Subsidiary Guarantor” means each Canadian Subsidiary which has executed and
delivered a Subsidiary Guaranty (or a supplement thereto). 
 “Canadian Welfare Plan” means any medical,
health, hospitalization, insurance or other employee benefit or welfare plan, agreement or arrangement applicable to employees of the Parent or a Canadian Subsidiary of the Parent, in each case who report to work in Canada. 

“Capital Expenditures” means, for any period, the aggregate amount of (a) all expenditures of the Parent and its
Subsidiaries for fixed or capital assets made during such period which, in accordance with GAAP, would be classified as capital expenditures; and (b) Capitalized Lease Liabilities incurred by the Parent and its Subsidiaries during such period.

 “Capital Securities” means, with respect to any Person, all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) of such Person’s capital, whether now outstanding or issued after the Effective Date. 
 “Capitalized Lease Liabilities” means, with respect to any Person, all monetary obligations of such Person and its Subsidiaries under any leasing or similar arrangement which have been
(or, in accordance with GAAP, should be) classified as capitalized leases, and for purposes of each Loan Document the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP, and the stated maturity
thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be terminated by the lessee without payment of a premium or a penalty. 

“Cash Equivalent Investment” means, at any time, any of the following types of investments, to the extent owned by the
Parent or any of its Subsidiaries free and clear of all Liens (other than Liens created under the Loan Documents or under the First Lien Loan Documents): 
 (a) any direct obligation of (or unconditionally guaranteed by) the United States or Canada (or any agency or political subdivision thereof, to the extent such obligations are supported by the full faith
and credit of the United States or of Canada) maturing not more than one year after such time; 

  
 4 

 (b) commercial paper maturing not more than 180 days from the date of issue, which is
issued by 
 (i) a corporation (other than an Affiliate of any Obligor) organized under the laws of Canada or any province
or territory thereof or any state of the United States or of the District of Columbia that has a credit rating of “Prime-1” (or the equivalent grade) or higher from Moody’s or “A-1” (or the equivalent grade) or higher from
S&P or R-1 high (or the equivalent grade) or higher by DBRS; or 
 (ii) any Lender (or its holding company) organized
under the laws of Canada or any province or territory thereof or any state of the United States or of the District of Columbia that has a credit rating of “Prime-1” (or the equivalent grade) or higher from Moody’s or “A-1”
(or the equivalent grade) or higher from S&P or R-1 high (or the equivalent grade) or higher by DBRS; 
 (c) any
certificate of deposit, time deposit or bankers acceptance, maturing not more than 180 days after its date of issuance, which is issued by either 
 (i) any bank, trust company or savings and loan association organized under the laws of Canada (or any province or territory thereof) or the United States (or any state thereof) and which has
(x) a credit rating of “Prime-1” (or the equivalent grade) or higher from Moody’s or “A-1” (or the equivalent grade) or higher from S&P or A (or the equivalent grade) or higher from DBRS and (y) a combined
capital and surplus greater than $750,000,000, or 
 (ii) any Lender that has (x) a credit rating of
“Prime-1” (or the equivalent grade) or higher from Moody’s or “A-1” (or the equivalent grade) or higher from S&P or A or higher from DBRS and (y) a combined capital and surplus greater than $750,000,000; 

(d) any repurchase agreement having a term of 30 days or less entered into with any Lender or any commercial institution satisfying
the criteria set forth in clause (c)(i) which 
 (i) is secured by a fully perfected security interest in any
obligation of the type described in clause (a), and 
 (ii) has a market value at the time such repurchase agreement
is entered into of not less than 100% of the repurchase obligation of such commercial institution thereunder; or 

(e) investments, classified in accordance with GAAP as current assets of the Parent or any of its Subsidiaries, in
any money market fund that (i) has substantially all of its assets invested continuously in investments of the character, quality and maturity referred to in clauses (a) through (d) above, (ii) has net assets of not less than
$1,000,000,000 and (iii) has the highest rating obtainable from any of S&P or Moody’s or DBRS. 

  
 5 

 “Cash Management Agreement” means any agreement to provide cash management
services, including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements. 
 “Cash Management Bank” means any Person that, at the time it enters into a Cash Management Agreement, is a Lender or an Affiliate of a Lender, in its capacity as a party to such Cash
Management Agreement. 
 “Casualty Event” means the damage or destruction, or any taking under power of eminent
domain or by condemnation, expropriation or similar proceeding, of any property of any Person or any of its Subsidiaries. 

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 

“CERCLIS” means the Comprehensive Environmental Response Compensation Liability Information System List. 

“CFC Subsidiary” shall mean any direct or indirect Subsidiary of the Borrower or U.S. Subsidiary that is a
“controlled foreign corporation” within the meaning of Section 957 of the Code. 
 “Change in
Control” means 
 (a) the failure of the Parent at any time to directly or indirectly own beneficially
and of record on a fully diluted basis 100% of the outstanding Capital Securities of the Borrower (except if the Borrower has been disposed of, transferred or merged or consolidated with or to another Person in accordance with the terms of this
Agreement), such Capital Securities to be held free and clear of all Liens (other than Liens granted under a Loan Document or under a First Lien Loan Document); 
 (b) any person or group (within the meaning of Sections 13(d) and 14(d) under the Exchange Act), excluding the Permitted Holders, shall: (i) become the ultimate “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Voting Securities on a fully diluted basis representing more than 35% of the Voting Securities of the Parent on a fully diluted basis; and (ii) such person or
group shall also become the ultimate “beneficial owner” directly or indirectly of Voting Securities on a fully diluted basis representing more than the aggregate of such Voting Securities of the Parent on a fully diluted basis then held by
the Permitted Holders; 
 (c) during any period of 24 consecutive months, individuals who at the beginning of
such period constituted the Board of Directors of the Parent (together with any new directors whose election to such Board or whose nomination for election by the stockholders of the Parent was approved by a vote of a majority of the directors then
still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors of the Parent then in office;
or 

  
 6 

 (d) the occurrence of any “Change of Control” (or similar term)
under (and as defined in) any document governing Indebtedness that is outstanding in an amount greater than $20,000,000. 

“Change in Law” means (a) any change arising from the enactment or enforcement of the Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010, as amended, or any rules, regulations, interpretations, guidelines or directives promulgated thereunder, or (b) the occurrence, after the date of this Agreement, of any of the following: (i) the
adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (iii) the making or
issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority. 

“Closing Date” means the date of the initial Loans hereunder. 

“Closing Date Certificate” means the closing date certificate executed and delivered by an Authorized Officer of the
Parent and the Borrower in form and substance satisfactory to the Administrative Agent. 
 “Code” means the
Internal Revenue Code of 1986, and the regulations thereunder, in each case as amended, reformed or otherwise modified from time to time. 
 “Collateral Agent” is defined in the preamble. 

“Commitment” means, relative to any Lender, such Lender’s obligation to make Loans pursuant to
Section 2.1.1 in accordance with its Term Loan Percentage. 
 “Commitment Amount” means, on any
date, $80,000,000. 
 “Commitment Letter” means the letter dated as of February 6, 2013, regarding, among
other things, the fees for this credit facility. 
 “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. 
 “Compliance
Certificate” means a certificate duly completed and executed by an Authorized Officer of the Parent, substantially in the form of Exhibit E hereto, together with such changes thereto as the Administrative Agent may from time to time
request for the purpose of monitoring the Parent’s compliance with the financial covenants contained herein. 

“Connection Income Taxes” means with respect to any Secured Party, Taxes that are (a) imposed on or measured by net
income (however denominated) or that are franchise Taxes or branch profits Taxes and (b) imposed as a result of a present or former connection between such Secured Party and the jurisdiction imposing such Tax (other than present or former
connections arising solely from such Secured Party 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). 

  
 7 

 “Consolidated EBITDA” means, for any applicable period, the sum of
(a) Net Income plus (b) to the extent deducted in determining Net Income, the sum of (i) income tax expense, (ii) interest expense, (iii) amounts attributable to the depreciation and amortization of assets, (iv) foreign
exchange gains and losses, (v) extraordinary or unusual cash charges that are non-recurring in an amount not to exceed during any period of four consecutive Fiscal Quarters 15% of Consolidated EBITDA for such period (as calculated before giving
effect to any addbacks pursuant to this clause (v) or clause (vii) below) for the applicable period, (vi) extraordinary or unusual and non-recurring non-cash charges that do not represent a cash item in the applicable period or any
future period, (vii) with respect to Consolidated EBITDA for the Parent, amounts attributable to restructuring costs (in an amount not to exceed during any period of four consecutive Fiscal Quarters 15% of Consolidated EBITDA for such period
(as calculated before giving effect to any addbacks pursuant to clause (v) above or this clause (vii) for the applicable period), (viii) costs and expenses incurred in connection with (x) the credit facilities under this
Agreement and the First Lien Credit Agreement and (y) any Permitted Acquisition; provided that, for purposes of this clause (y), the amount of costs and expenses relating to any Permitted Acquisition that may be added back to Net
Income pursuant to clause (b)(viii) hereof shall not exceed an amount equal to 10% of the purchase price for such Permitted Acquisition, (ix) non-cash charges and losses attributable to stock-based compensation expense, (x) non-cash
charges with respect to the write-down or impairment of goodwill and other intangibles and (xi) without limiting the foregoing, costs and expenses incurred in connection with acquisition and disposition activity (whether or not consummated)
during the fiscal quarter ended January 31, 2013, in an aggregate amount not to exceed $6,500,000; minus (c) to the extent (and only to the extent) included in determining Net Income, income attributable to the cancellation of
Indebtedness issued by an Obligor (including as a result of a debt exchange); and provided, further, for all purposes hereunder, “Consolidated EBITDA” for the Fiscal Quarter ending January 31, 2012 shall be deemed to be
$21,400,000, for the Fiscal Quarter ending April 30, 2012 shall be deemed to be $26,400,000, for the Fiscal Quarter ending July 31, 2012 shall be deemed to be $12,400,000, and for the Fiscal Quarter ending October 31, 2012 shall be
deemed to be $23,600,000, subject in each case to any pro forma adjustments pursuant to Section 1.4. 

“Consolidated First Lien Debt” means, on any date, in respect of the Parent and its Subsidiaries on a consolidated
basis, that portion of Consolidated Total Debt that is secured by a Lien on any assets of the Parent or any Subsidiary which Lien is not expressly contractually subordinated to the Liens securing the “Obligations” as defined in the First
Lien Credit Agreement. 
 “Consolidated Total Debt” means, on any date, in respect of the Parent and its
Subsidiaries on a consolidated basis, (a) the sum (without duplication) of (i) the outstanding principal amount of all Indebtedness of the Parent and its Subsidiaries of the type referred to in clause (a), clause
(b) (which in the case of Letter of Credit Outstandings under and as defined in the First Lien Credit Agreement, shall exclude obligations of the type described in clause (a) of the definition of each of “Canadian Letter of Credit
Outstandings and “U.S. Letter of Credit Outstandings” under and as defined in the First Lien Credit Agreement) and clause (c), in each case of the definition of “Indebtedness” and any Contingent Liability in respect of any
of the foregoing, plus (ii) to the extent (but only to the extent) not permitted by clause (m) of Section 7.2.2, Indebtedness of the type described in such clause (m) minus (b) the
unrestricted cash of the Parent and its Subsidiaries as of such date up to a maximum of $40,000,000; provided that such cash shall not be subject to any Lien other than a Lien in favor of the Collateral Agent for the benefit of the Secured
Parties and other than Liens permitted under Section 7.2.3(f) and Section 7.2.3(k). 

  
 8 

 “Consolidated Working Capital” means, as at any date of determination, the
excess of 
 (a) the total assets of the Parent and its Subsidiaries on a consolidated basis that may properly be
classified as current assets in conformity with GAAP, excluding cash, Cash Equivalent Investments and deferred tax assets 
 over 
 (b) the total liabilities of the Parent and its
Subsidiaries on a consolidated basis that may properly be classified as current liabilities in conformity with GAAP, excluding the current portion of long term debt and excluding any outstanding First Lien Revolving Loan (as defined in the First
Lien Credit Facility) and excluding any deferred tax liabilities. 
 “Consolidated Working Capital Adjustment”
means, for any Fiscal Year, the amount (which may be a negative number) by which Consolidated Working Capital as of the end of such Fiscal Year exceeds (or is less than) Consolidated Working Capital as of the beginning of such Fiscal Year.

 “Contingent Liability” means any agreement, undertaking or arrangement by which any Person guarantees,
endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against
loss) the Indebtedness of any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of dividends or other distributions upon the Capital Securities of any other Person. The amount of any
Person’s obligation under any Contingent Liability shall (subject to any limitation set forth therein) be deemed to be the outstanding principal amount of the debt, obligation or other liability guaranteed thereby. 

“Continuation/Conversion Notice” means a notice of continuation or conversion in respect of Loans and certificate duly
executed by an Authorized Officer of the Borrower substantially in the form of Exhibit C hereto. 

“Controlled Group” means all members of a controlled group of corporations and all members of a controlled group of
trades or businesses (whether or not incorporated) under common control which, together with the Parent, are treated as a single employer under Section 414(b) or 414(c) of the Code or Section 4001 of ERISA (and Sections 414(m) and
(o) of the Code for purposes of provisions relating to Section 412 of the Code). 
 “Controlled Investment
Affiliate” means, with respect to the Sponsor, any other person that (i) is organized primarily for the purpose of making equity or debt investments in one or more Persons and (ii) is directly or indirectly Controlled by the
Sponsor; provided that “Controlled Investment Affiliate” shall exclude any portfolio company of the Sponsor. 

“Copyright Security Agreement” means any Copyright Security Agreement executed and delivered by any Obligor in
substantially the form attached as an Exhibit to the U.S. Pledge and Security Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

  
 9 

 “Core Intellectual Property Assets” means those Intellectual Property
Assets that are material to and used by the Parent or its Subsidiaries in the business of providing business communications and collaboration software and services. 
 “DBRS” means DBRS Limited. 
 “Debtor Relief
Laws” means the Bankruptcy Code of the United States, the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) and all other domestic or foreign liquidation, conservatorship, bankruptcy, assignment
for the benefit of creditors, moratorium, arrangement (including under any relevant incorporating statute) rearrangement, receivership, insolvency, reorganization, judicial management, administration or relief of debtors or similar debtor relief
laws of the United States, Canada or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. 
 “Default” means any Event of Default or any condition, occurrence or event which, after notice or lapse of time or both, would constitute an Event of Default. 

“Defaulting Lender” means, subject to Section 12.18.2, any Lender that (a) has failed to
(i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the 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 Administrative Agent or 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 or the Administrative 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 Administrative Agent or the Borrower, to confirm in writing to the Administrative 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 Administrative 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, or (ii) had appointed for it a receiver, custodian, conservator, curator, 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, the Canada Deposit Insurance Corporation or any other state or federal regulatory authority acting in the same or any similar capacity;
provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such
ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or Canada or from the enforcement of judgments 

  
 10 

 
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 Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above, and of the effective date of such status, shall be conclusive and binding absent
manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 12.18.2) as of the date established therefor by the Administrative Agent in a written notice of such determination, which shall be delivered by
the Administrative Agent to the Borrower and each other Lender promptly following such determination. 
 “Default
Rate” shall have the meaning provided in Section 3.2.2. 
 “Discharge of First Lien
Obligations” shall have the meaning provided in the Intercreditor Agreement. 
 “Disclosure Schedule”
means the Disclosure Schedule attached hereto as Schedule I, as it may be amended, supplemented, amended and restated or otherwise modified from time to time by the Borrower with the written consent of the Required Lenders. 

“Disposition” (or similar words such as “Dispose”) means any sale, transfer, lease, contribution,
disposition or other conveyance (including by way of merger) of, or the granting of options, warrants or other rights to, any of the Parent’s or its Subsidiaries’ assets (including the sale transfer or other conveyance of accounts
receivable but excluding the sale or issuance of Capital Securities of the Parent) to any other Person (other than to another Obligor) in a single transaction or series of transactions but excluding sales of inventory in the ordinary course of
business. 
 “Disqualified Capital Stock” shall mean any Capital Security which, by its terms (or by the terms
of any security into which it is convertible or for which it is exchangeable or exercisable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is one year after the Stated Maturity Date with respect to the Loans,
(b) is convertible into or exchangeable or exercisable (unless at the sole option of the issuer thereof) for (i) debt securities or other indebtedness or (ii) any Capital Securities referred to in clause (a) above, in each case
at any time on or prior to the date that is one year after the Stated Maturity Date with respect to the Loans, or (c) contains any repurchase or payment obligation which may come into effect prior to the date that is one year after the Stated
Maturity Date with respect to the Loans. 
 “Disqualified Lenders” shall mean those operating companies that
are engaged in the business of the Parent or the Borrower as described in the most recent 10-K of the Parent as their primary business that are set forth on Item 1.01 of the Disclosure Schedule and those additional companies with such
business as their primary business that the Borrower may designate from time to time. 
 “ECF Percentage”
means, if on the last day of the applicable Fiscal Year, the Leverage Ratio is (a) greater than or equal to 2.25:1.00, 75%, (b) less than 2.25:1.00 but greater than 1.75:1.00, 50%, (c) less than or equal to 1.75:1.00 but greater than
1.25:1.00, 25% and (d) less than or equal to 1.25:1.00, 0%. 

  
 11 

 “Effective Date” means the date this Agreement becomes effective pursuant
to Section 12.8. 
 “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender;
(c) an Approved Fund; or (d) any other Person (other than a natural Person, any Obligor, any Affiliate of any Obligor or any other Person taking direction from, or working in concert with, any Obligor or any of the Obligor’s
Affiliates). 
 “Environmental Laws” means all applicable federal, state, provincial, territorial, foreign or
local statutes, laws, ordinances, codes, rules, regulations and guidelines (including consent decrees and administrative orders) relating to public health and safety, natural resources or protection of the environment. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto of
similar import, together with the regulations thereunder, in each case as in effect from time to time. References to Sections of ERISA also refer to any successor Sections thereto. 

“Event of Default” is defined in Section 8.1. 

“Excess Cash Flow” means, for any Fiscal Year, the excess (if any), of 

(a) Consolidated EBITDA for such Fiscal Year; 
 over 
 (b) the sum (for such Fiscal Year) of
(i) Interest Expense actually paid in cash by the Parent and its Subsidiaries, (ii) scheduled principal repayments, to the extent actually made, of capitalized leases and of Loans pursuant to clause (b) of
Section 3.1.1 and term loans pursuant to clause (c) of Section 3.1.1 of the First Lien Credit Agreement (in each case exclusive of repayments made from a refinancing of any portion of such Indebtedness, or
pursuant to Section 3.1.1, or made, directly or indirectly, in connection with a cancellation of Indebtedness of any Obligor, including as a result of any exchange or cancellation of such Indebtedness by such Obligor or any of its
Affiliates), (iii) all income Taxes actually paid in cash by the Parent and its Subsidiaries, (iv) Capital Expenditures made in cash (exclusive of Capital Expenditures financed with the proceeds of Indebtedness, equity issuances, casualty
proceeds or other proceeds which are not included in Consolidated EBITDA), (v) without limiting clause (ii) above, other voluntary prepayments of Indebtedness (exclusive of any prepayments of revolving Indebtedness unless a
corresponding reduction is made to the commitments with respect thereto), (vi) permitted Investments made during such Fiscal Year, (vii) the cash portion of any consideration and related fees and expenses actually paid in connection with a
Permitted Acquisition; (viii) the Consolidated Working Capital Adjustment for such Fiscal Year; and (ix) all cash charges to the extent added back to Net Income pursuant to clauses (iv), (v), (vii),
(viii) and (ix) of the definition of “Consolidated EBITDA” for purposes of determining Consolidated EBITDA for such Fiscal Year. 

  
 12 

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

 “Excluded Swap Obligation” 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). 

“Exemption Certificate” is defined in clause (f) of Section 4.6. 

“Existing Credit Agreements” means, collectively, (i) that certain First Lien Credit Agreement dated as of
August 16, 2007 among Mitel Networks Corporation, Mitel Networks, Inc., Mitel US Holdings, Inc., Arsenal Acquisition Corporation, Morgan Stanley Senior Funding (Nova Scotia) Co., as Canadian Administrative Agent, Wilmington Trust FSB, as U.S.
Administrative Agent, and the various financial institutions party thereto from time to time and (ii) that certain Second Lien Credit Agreement dated as of August 16, 2007 among Mitel Networks Corporation, Mitel US Holdings, Inc., Morgan
Stanley Senior Funding, Inc. as Administrative Agent, and the various financial institutions party thereto from time to time, in each case as amended, restated, supplemented or modified from time to time. 

“Existing Maturity Date” is defined in Section 2.8.1. 

“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) and any current or future regulations or official interpretations thereof. 
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to 

(a) the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York; or 

(b) if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on
such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by it. 

“Filing Agent” is defined in Section 5.1.11. 

“Filing Statements” is defined in Section 5.1.11. 

“First Lien Agent” is defined in the definition of “First Lien Credit Agreement.” 

“First Lien Collateral Agent “means the “Collateral Agent” pursuant to and as defined in, the First Lien
Loan Documents, and any successor thereto. 

  
 13 

 “First Lien Credit Agreement” means the First Lien Credit Agreement, dated
as of the date hereof, among the Parent, the Borrower, the various financial institutions from time to time party thereto as lenders and Bank of America, N.A., as administrative agent and collateral agent (in such capacity, together with its
permitted successors and assigns, the “First Lien Agent”), as amended, supplemented, amended and restated or otherwise modified from time to time in accordance with this Agreement and the Intercreditor Agreement. 

“First Lien Debt” means Indebtedness under the First Lien Loan Documents and any other Indebtedness secured by a Lien
which is not expressly contractually subordinated to the Liens securing the Obligations. 
 “First Lien Leverage
Ratio” means, as of the last day of any Fiscal Quarter of the Parent and its Subsidiaries, the ratio of 
 (a)
Consolidated First Lien Debt outstanding on the last day of such Fiscal Quarter 
 to 

(b) Consolidated EBITDA computed for the period consisting of such Fiscal Quarter and each of the three immediately preceding Fiscal
Quarters. 
 “First Lien Loan Documents” means the “Loan Documents” as defined in the First Lien
Credit Agreement. 
 “First Lien Loans” means the “Loans” as defined in the First Lien Credit
Agreement. 
 “First Lien Term Loans” means the “Term Loans” as defined in the First Lien Credit
Agreement. 
 “First-Tier CFC Subsidiary” shall mean any CFC Subsidiary that is owned either (i) directly
by the Borrower or a U.S. Subsidiary, or (ii) indirectly by the Borrower or a U.S. Subsidiary through one or more intermediate entities, each of which is a U.S. person within the meaning of Section 7701(a)(30) of the Code or a disregarded
entity under the Code. 
 “Fiscal Quarter” means a quarter ending on the last day of April, July, October or
January. 
 “Fiscal Year” means any period of twelve consecutive calendar months ending on April 30;
references to a Fiscal Year with a number corresponding to any calendar year (e.g., the “2013 Fiscal Year”) refer to the Fiscal Year ending on April 30 of such calendar year. 

“Foreign Pledge Agreement” means any supplemental pledge agreement governed by the laws of a jurisdiction other than the
United States or any state thereof executed and delivered by the Parent or any of its Subsidiaries pursuant to the terms of this Agreement, in form and substance satisfactory to the Administrative Agent, as may be necessary or desirable under the
laws of organization or incorporation of a Subsidiary to further protect or perfect the Lien on and security interest in any Collateral (as defined in a Security Agreement). 
 “Foreign Subsidiary” means any Subsidiary that is not a U.S. Subsidiary. 

  
 14 

 “F.R.S. Board” means the Board of Governors of the Federal Reserve System
or any successor thereto. 
 “GAAP” is defined in Section 1.4. 

“Governmental Authority” means the government of the United States, Canada, any other nation or any political
subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other Person exercising executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government. 
 “Guarantor” means, collectively, the Parent, each Subsidiary
Guarantor and each other party that has guaranteed the Obligations. 
 “Guaranty” means, as the context may
require, the Parent Guaranty, the Subsidiary Guaranty and/or any other guarantee delivered by a Guarantor. 
 “Hazardous
Material” means 
 (a) any “hazardous substance”, as defined by CERCLA; 

(b) any “hazardous waste”, as defined by the Resource Conservation and Recovery Act, as amended; or 

(c) any pollutant or contaminant or hazardous, dangerous, regulated or toxic chemical, material or substance (including
any petroleum product or by-product) within the meaning of, or subject to, any applicable federal, state, provincial, territorial, foreign or local law, regulation, ordinance or requirement (including consent decrees and administrative orders)
relating to or imposing liability, obligations or standards of conduct relating to public health and safety, natural resources or protection of the environment, all as amended. 

“Hedging Obligations” means, with respect to any Person, all liabilities of such Person under currency exchange
agreements, interest rate swap agreements, interest rate cap agreements and interest rate collar agreements, and all other agreements or arrangements designed to protect such Person against fluctuations in interest rates or currency exchange rates.

 “herein”, “hereof”, “hereto”, “hereunder” and similar
terms contained in any Loan Document refer to such Loan Document as a whole and not to any particular Section, paragraph or provision of such Loan Document. 
 “Immaterial Subsidiary” means any Subsidiary that, when considered in the aggregate with all subsidiaries that are not at such time Guarantors, would not cause (i) the aggregate
Consolidated EBITDA of the non-Guarantor Subsidiaries plus, without duplication, such Subsidiary, to exceed 5% of the Consolidated EBITDA of the Parent and its Subsidiaries, (ii) the aggregate assets of the non-Guarantor Subsidiaries (excluding
intercompany balances) plus, without duplication, such Subsidiary, to exceed 5% of the assets of the Parent and its Subsidiaries on a consolidated basis or (iii) the aggregate gross revenue of the non-Guarantor Subsidiaries plus, without
duplication, such Subsidiary, to exceed 5% of the gross revenue of the Parent and its Subsidiaries on a consolidated basis. 

  
 15 

 “Impermissible Qualification” means any qualification or exception to the
opinion or certification of any independent public accountant as to any financial statement of the Parent 
 (a)
which is of a “going concern” or similar nature; 
 (b) which relates to the limited scope of
examination of matters relevant to such financial statement; or 
 (c) which relates to the treatment or
classification of any item in such financial statement and which, as a condition to its removal, would require an adjustment to such item the effect of which would be to cause the Borrower to be in Default. 

“including” and “include” means “including without limitation”. 

“Incremental Facilities” is defined in Section 2.7. 

“Incremental Loans” means any Loans made in respect of any Incremental Commitments that shall have been added pursuant
to Section 2.7. 
 “Incremental Commitment” is defined in Section 2.7. 

“Indebtedness” of any Person means: 

(a) all obligations of such Person for borrowed money or advances and all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments; 
 (b) all obligations, contingent or otherwise, relative to the face
amount of all letters of credit, whether or not drawn, and banker’s acceptances issued for the account of such Person; 
 (c) all Capitalized Lease Liabilities of such Person; 
 (d) net
Hedging Obligations of such Person; 
 (e) whether or not so included as liabilities in accordance with GAAP, all
obligations of such Person to pay the deferred purchase price of property or services (excluding trade accounts and other current liabilities incurred in the ordinary course of business which are not overdue for a period of more than 120 days
or, if overdue for more than 120 days, as to which a dispute exists and adequate reserves in conformity with GAAP have been established on the books of such Person), and indebtedness secured by (or for which the holder of such indebtedness has
an existing right, contingent or otherwise, to be secured by) a Lien on property owned or being acquired 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; 

  
 16 

 (f) obligations arising under Synthetic Leases; and 

(g) all Contingent Liabilities of such Person in respect of any of the foregoing. 

The Indebtedness of any Person shall include the Indebtedness of any other Person (including any partnership in which such Person is a
general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such other Person, except to the extent the terms of such Indebtedness provide that such Person is not
liable therefor. 
 “Indemnified Liabilities” is defined in Section 12.4. 

“Indemnified Parties” is defined in Section 12.4. 

“Intellectual Property Assets” means, collectively and without duplication, the “Intellectual Property
Collateral” (as defined in the U.S. Pledge and Security Agreement), and any similar term as defined in the Canadian Pledge and Security Agreement and in the U.K. Security Agreement, and shall include terms of similar meaning referring to the
intellectual property of the Obligors in any other Security Agreement. 
 “Interco Subordination Agreement”
means a Subordination Agreement, in substantially the form of Exhibit H to this Agreement (as such Subordination Agreement may be amended, endorsed or otherwise modified from time to time). 

“Intercreditor Agreement” means the Intercreditor Agreement, dated the date hereof and substantially in the form of
Exhibit I hereto, executed and delivered by the Obligors, the Administrative Agent, the Collateral Agent and the First Lien Agent, pursuant to the terms of this Agreement, as amended, supplemented, amended and restated or otherwise modified from
time to time. 
 “Interest Expense” means, for any applicable period, the aggregate interest expense (both
accrued and paid and net of interest income paid during such period to the Parent and its Subsidiaries) of the Parent and its Subsidiaries for such applicable period, including the portion of any payments made in respect of Capitalized Lease
Liabilities allocable to interest expense. 
 “Interest Period” means, relative to any LIBO Rate Loan, the
period beginning on (and including) the date on which such LIBO Rate Loan is made or continued as, or converted into, a LIBO Rate Loan pursuant to Sections 2.3 or 2.4 and shall end on (but exclude) the day which numerically corresponds
to such date one, two, three, six, or, if agreed to by each Lender, any other period that is twelve months or less thereafter (or, if such month has no numerically corresponding day, on the last Business Day of such month), in any case as the
Borrower may select in its relevant notice pursuant to Sections 2.3 or 2.4; provided, that, 

(i) the Borrower shall not be permitted to select Interest Periods to be in effect at any one time which have expiration
dates occurring on more than seven different dates; 
 (ii) if such Interest Period would otherwise end on a day
which is not a Business Day, such Interest Period shall end on the next following Business Day (unless such next following Business Day is the first Business Day of a calendar month, in which case such Interest Period shall end on the Business Day
next preceding such numerically corresponding day); and 
 (iii) no Interest Period for any Loan may end later
than the Stated Maturity Date for such Loan. 

  
 17 

 “Investment” means, relative to any Person, 

(a) any loan, advance or extension of credit made by such Person to any other Person, including the purchase by such
Person of any bonds, notes, debentures or other debt securities of any other Person; 
 (b) Contingent
Liabilities in respect of any other Person; and 
 (c) any Capital Securities held by such Person in any other
Person. 
 The amount of any Investment shall be the original principal or capital amount thereof less all returns of principal or equity
thereon actually received in cash and shall, if made by the transfer or exchange of property other than cash, be deemed to have been made in an original principal or capital amount equal to the fair market value of such property at the time of such
Investment. 
 “Judgment Currency” is defined in Section 12.16. 

“Lease Purchaser” means any Person in the business of purchasing or otherwise securitizing revenue streams from lease
transactions including those entities listed in Item 1.02 of the Disclosure Schedule. 
 “Lease Purchase
Transaction” means (a) the sale and assignment by the Parent or any of its Subsidiaries to a Lease Purchaser of all or a portion of such Person’s right, title and interest in and to a lease, installment sale contract or other
chattel paper and the schedules, addendums and amendments thereto arising from the leasing by such Person of telecommunications or related equipment or support products (or, to the extent recharacterized as a financing, all Indebtedness secured by a
first priority perfected security interest in such right, title and interest, each a “Purchased Lease”), including all payments to become due thereunder and all guaranties and collateral pertaining thereto, (b) the granting of
(or assignment of) a first priority perfected security interest in the Purchased Leases, all telecommunications and other equipment subject to or covered by the Purchased Leases, together with all replacements and substitutions of the foregoing and
all attachments, accessories, accessions, parts and components thereto, and any lock –box account into which payments are made in connection with the Purchased Leases, whether now or are hereafter acquired, and all proceeds thereof (including
insurance proceeds) (the “Purchased Lease Collateral”) and (c) where applicable, the assignment of all residual rights in such equipment and the proceeds therefrom (“Residual Positions”), in each case for the
foregoing clauses (a) through (c) on terms and conditions generally consistent with the past practice of the Borrower and its Subsidiaries as of the Closing Date and without any material change to the Borrower or the applicable
Subsidiary’s liabilities thereunder. 
 “Lender Assignment Agreement” means an assignment agreement
substantially in the form of Exhibit D hereto. 

  
 18 

 “Lenders” is defined in the preamble. 

“Lender’s Environmental Liability” means any and all losses, liabilities, obligations, penalties, claims,
litigation, demands, defenses, costs, judgments, suits, proceedings, damages (including consequential damages), disbursements or expenses of any kind or nature whatsoever (including reasonable attorneys’ fees at trial and appellate levels and
experts’ fees and disbursements and expenses incurred in investigating, defending against or prosecuting any litigation, claim or proceeding) which may at any time be imposed upon, incurred by or asserted or awarded against the Administrative
Agent or any Lender or any of such Person’s Affiliates, shareholders, directors, officers, employees, and agents in connection with or arising from: 
 (a) any Hazardous Material on, in, under or affecting any portion of any property of the Parent or any of its Subsidiaries, the groundwater thereunder, or any surrounding areas thereof to the extent
caused by Releases from the Parent’s or any of its Subsidiaries’ currently or formerly owned or operated properties or any of their respective predecessors’ properties; 

(b) any inaccuracy or breach of any representation or warranty contained in Section 6.12 (without regard to
“knowledge” or “materiality” qualifications or exceptions contained in such representations or warranties); 
 (c) any actual or alleged violation or liability of the Parent or any of its Subsidiaries pursuant to any Environmental Laws; or 

(d) the imposition of any Lien relating to the violation of any Environmental Law or the release or threatened release of
Hazardous Material in connection with any property owned or operated by the Parent or any of its Subsidiaries. 

“Leverage Ratio” means, as of the last day of any Fiscal Quarter of the Parent and its Subsidiaries, the ratio of

 (a) Consolidated Total Debt outstanding on the last day of such Fiscal Quarter 

to 
 (b) Consolidated EBITDA computed for the period consisting of such Fiscal Quarter and each of the three immediately preceding Fiscal Quarters. 

“LIBO Rate” means, relative to any Interest Period for Loans maintained as LIBO Rate Loans, the rate of interest equal
to (i) the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or such other commercially available source providing quotations of BBA LIBOR as may be designated by Bank of America, N.A. from time to
time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period or,
(ii) if such rate is not available at such time for any reason, the rate per annum determined by Bank of America, N.A. to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the
approximate amount of the LIBO Rate Loan being made, continued or converted and with a term equivalent to such Interest Period would be offered by Bank of America N.A.’s London Branch 

  
 19 

 
to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period, provided
that, notwithstanding this paragraph (b), with respect to Loans maintained as LIBO Rate Loans, the LIBO Rate shall not at any time be less than 1.25%. 
 “LIBO Rate Loan” means a Loan bearing interest, at all times during an Interest Period applicable to such Loan, at a rate of interest determined by reference to the LIBO Rate (Reserve
Adjusted). 
 “LIBO Rate (Reserve Adjusted)” means, relative to any Loan to be made, continued or maintained
as, or converted into, a LIBO Rate Loan for any Interest Period, a rate per annum (rounded upwards, if necessary, to the nearest 1/16 of 1%) determined pursuant to the following formula: 

 

					
	LIBO Rate	  	=	  	 LIBO Rate

	(Reserve Adjusted)	  		  	1.00 - LIBOR Reserve Percentage

 The LIBO Rate (Reserve Adjusted) for any Interest Period for LIBO Rate Loans will be determined by the Administrative
Agent on the basis of the LIBOR Reserve Percentage in effect two Business Days before the first day of such Interest Period. 

“LIBOR Office” means the office of a Lender designated as its “LIBOR Office” on Schedule II hereto
or in a Lender Assignment Agreement, or such other office designated from time to time by notice from such Lender to the Parent and the Administrative Agent, whether or not outside the United States, which shall be making or maintaining the LIBO
Rate Loans of such Lender. 
 “LIBOR Reserve Percentage” means, relative to any Interest Period for LIBO Rate
Loans, the reserve percentage (expressed as a decimal) equal to the maximum aggregate reserve requirements (including all basic, emergency, supplemental, marginal and other reserves and taking into account any transitional adjustments or other
scheduled changes in reserve requirements) specified under regulations issued from time to time by the F.R.S. Board and then applicable to assets or liabilities consisting of or including “Eurocurrency Liabilities”, as currently defined in
Regulation D of the F.R.S. Board, having a term approximately equal or comparable to such Interest Period. 

“Lien” means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien
(statutory or otherwise), charge against or interest in property, or other priority or preferential arrangement of any kind or nature whatsoever, to secure payment of a debt or performance of an obligation. 

“Loans” is defined in Section 2.1.1. 

“Loan Documents” means, collectively, this Agreement, the Administrative Agent Fee Letter, the Notes, each Secured Cash
Management Agreement, each Rate Protection Agreement, each Guaranty, each Security Agreement, each other agreement pursuant to which the Collateral Agent is granted a Lien to secure the Obligations, the Intercreditor Agreement and each other
agreement, certificate, document or instrument delivered in connection with any Loan Document, whether or not specifically mentioned herein or therein. 

  
 20 

 “Loan Party” means the Borrower and each Guarantor. 

“Master Intercompany Note” shall mean that certain Master Intercompany Note dated as of the date hereof substantially in
the form of Exhibit K hereto. 
 “Material Adverse Effect” means a material adverse effect on
(a) the business, condition (financial or otherwise), operations, performance or properties of the Parent and its Subsidiaries taken as a whole; (b) the rights and remedies of any Secured Party under any Loan Document; or (c) the
ability of any Obligor (other than any Immaterial Subsidiary) to perform its Obligations under any Loan Document. 

“Material Contract” means a contract to which an Obligor is a party the termination of which would have or would
reasonably be expected to have a material adverse effect on the business, condition (financial or otherwise), operations, performance or properties of the Parent and its Subsidiaries taken as a whole. 

“Material Subsidiary” means at any date, each Subsidiary of the Parent which is not an Immaterial Subsidiary.

 “Material Transaction” means any transaction or series or group of related transactions that, when taken as
a whole, results in either (a) a Change in Control or (b) the acquisition (by merger, amalgamation or otherwise) by the Parent, directly or indirectly, of any business or assets for aggregate consideration in excess of $100,000,000.

 “Moody’s” means Moody’s Investors Service, Inc. 

“Morgan Stanley” means Morgan Stanley Senior Funding Inc. and its affiliates. 

“Multiemployer Plan” means a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA with
respect to which the Borrower or any member of the Controlled Group has within any of the preceding five plan years made or accrued an obligation to make contributions. 
 “Net Casualty Proceeds” means the amount of any insurance proceeds or condemnation, expropriation or similar awards received by the Parent or any of its Subsidiaries in connection with
any Casualty Event in excess of $500,000, individually or in the aggregate over the course of a Fiscal Year (net of taxes paid with respect thereto and all reasonable and customary collection expenses thereof, including any legal or other
professional fees), but excluding any proceeds or awards required to be paid to a creditor (other than the Lenders) under the First Lien Credit Agreement or any other creditor which holds a first priority Lien permitted by clause (d) of
Section 7.2.3 on the property which is the subject of such Casualty Event. 

  
 21 

 “Net Debt Proceeds” means, with respect to the incurrence, sale or issuance
by the Parent or any of its Subsidiaries of any Indebtedness after the Closing Date which is not expressly permitted by Section 7.2.2, the excess of: 

(i) the gross cash proceeds actually received by such Person from such incurrence, sale or issuance, over

 (ii) all reasonable and customary arranging or underwriting fees and commissions, and all legal, investment
banking, brokerage and accounting and other professional fees, sales commissions and disbursements and other reasonable and customary closing costs and expenses, in each case, actually incurred, paid or payable in connection with such incurrence,
sale or issuance other than any such fees, commissions, disbursements, costs or expenses paid to Affiliates of such Person in connection therewith. 
 “Net Disposition Proceeds” means the gross cash proceeds received by the Parent or any of its Subsidiaries from any Disposition (other than proceeds received in respect of any Disposition
of personal property (other than Capital Securities) in an amount less than $50,000), any cash payment received in respect of promissory notes or other non-cash consideration delivered to the Parent or any of its Subsidiaries in respect thereof and
any cash reserve adjustment in respect of the sale price of an asset established in accordance with GAAP, minus the sum of (i) all reasonable and customary legal, investment banking, brokerage and accounting and other professional fees,
sales commissions and disbursements and other reasonable and customary closing costs and fees and expenses, in each case, incurred, paid or payable in connection with such Disposition other than any such fees, commissions, disbursements, cost or
expenses paid to Affiliates of such person in connection therewith, (ii) all taxes actually paid or estimated by the Parent to be payable in cash within the next 12 months in connection with such Disposition, and (iii) payments made
by the Parent or any of its Subsidiaries to retire Indebtedness (other than the Loans) that is secured by the property or assets Disposed of where payment of such Indebtedness is required in connection with such Disposition; provided that,
the amount of estimated taxes pursuant to clause (ii) in excess of the amount of taxes actually required to be paid in cash in respect of such Disposition within such 12 month period shall constitute Net Disposition Proceeds. 

“Net Income” means, in respect of the Parent for any applicable period of time, the aggregate of all amounts (exclusive
of all amounts in respect of any extraordinary gains or extraordinary losses) which would be included as net income on the consolidated financial statements of the Parent and its Subsidiaries for such period in accordance with GAAP. 

“Non-Affected Replacement Lender” is defined in Section 4.11. 

“Non-Consenting Lender” is defined in Section 4.11. 

“Non-Core Intellectual Property Assets” means those Intellectual Property Assets that are not Core Intellectual Property
Assets. 
 “Non-Excluded Taxes” means any Taxes imposed on or with respect to any payment made by or on account
of any obligation of a Loan Party under any Loan Document to a Secured Party other than (A) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case imposed as a result of such
Secured Party 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), (B) Connection
Income Taxes, (C) any U.S. federal withholding Taxes imposed under FATCA or (D) without duplication, any interest, penalties or similar liabilities with respect to items described in (A) through (C) above. 

  
 22 

 “Non-Extending Lender” is defined in Section 2.8. 

“Non-U.S. Secured Party” means any Secured Party that is not a “United States person”, as defined under
Section 7701(a)(30) of the Code. 
 “Note” means a promissory note payable to any Lender, substantially in
the form of Exhibit A hereto (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing Indebtedness hereunder of the Borrower to such Lender resulting from outstanding Loans, and also means all
other promissory notes accepted from time to time in substitution therefor or renewal thereof. 
 “Notice Date”
is defined in Section 2.8. 
 “Obligations” means all obligations (monetary or otherwise, whether
absolute or contingent, matured or unmatured) of the Parent, the Borrower and each other Obligor arising under or in connection with a Loan Document (excluding with respect to any Guarantor, Excluded Swap Obligations with respect to such Guarantor),
including the principal of and premium, if any, and interest (including interest accruing during the pendency of any proceeding of the type described in Section 8.1.9, whether or not allowed in such proceeding) on the Loans and on the
other obligations under the Loan Documents. 
 “Obligor” means, as the context may require, the Parent, the
Borrower and each other Person (other than (i) a Secured Party and (ii) in the case of the Intercreditor Agreement, the First Lien Agent and the Control Agent (as defined in the Intercreditor Agreement)) obligated under any Loan Document.

 “Organic Document” means, relative to any Obligor, as applicable, its certificate of incorporation, by-laws,
certificate of partnership, partnership agreement, certificate of formation, limited liability agreement, operating agreement and all shareholder agreements, voting trusts and similar arrangements applicable to any of such Obligor’s Capital
Securities. 
 “Other Taxes” means any and all stamp, documentary or similar Taxes, or any other excise or
property Taxes or similar levies that arise on account of any payment made or required to be made under any Loan Document or from the execution, delivery, registration, recording or enforcement of any Loan Document. 

“Parent” is defined in the preamble. 
 “Parent Guaranty” means the Parent Guaranty set forth in Article X hereof. 
 “Participant” is defined in clause (a) of Section 12.10.4. 
 “Patent Security Agreement” means any Patent Security Agreement executed and delivered by any Obligor in substantially the form attached as an Exhibit to the U.S. Pledge and Security
Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

  
 23 

 “PATRIOT Act” means the USA PATRIOT ACT (Title III of Pub. L. 107-56
(signed into law October 26, 2001)), as amended and supplemented from time to time. 
 “PATRIOT Act
Disclosures” means all documentation and other information which the Administrative Agent or any Lender reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money
laundering rules and regulations, including the PATRIOT Act. 
 “Payment Currency” is defined in
Section 12.16. 
 “PBGC” means the Pension Benefit Guaranty Corporation and any Person succeeding
to any or all of its functions under ERISA. 
 “Permitted Acquisition” means an acquisition (whether pursuant
to an acquisition of Capital Securities, assets or otherwise) by the Parent or any Subsidiary from any Person of all of the Capital Securities of another Person of substantially all of the assets of another Person or of the assets constituting one
or more business units or lines of business of another Person in which the following conditions are satisfied: 

(i) immediately before and after giving effect to such acquisition no Event of Default shall have occurred and be
continuing or would result therefrom (including under Section 7.1.8 and Section 7.2.1); 

(ii) the Parent shall have delivered to the Administrative Agent a Compliance Certificate for the period of four full
Fiscal Quarters immediately preceding such acquisition (prepared in good faith and in a manner and using such methodology which is consistent with the most recent financial statements delivered pursuant to Section 7.1.1) evidencing that
after giving pro forma effect to the consummation of such acquisition, the Leverage Ratio shall be less than or equal to 0.25x lower than the then applicable Leverage Ratio required to be maintained pursuant to Section 7.2.4;

 (iii) the board of directors of such other Person shall have approved such transaction; and 

(iv) the Person to be (or the assets of which is to be) so purchased or otherwise acquired shall not be engaged in any
business activity except those business activities that are permitted under Section 7.2.1(a). 
 “Permitted
Holders” means, collectively, the Sponsor, Morgan Stanley, Sir Terence Matthews and his heirs and companies controlled by Sir Terence Matthews and his heirs. 
 “Person” means any natural person, corporation, limited liability company, partnership, joint venture, association, trust or unincorporated organization, Governmental Authority or any
other legal entity, whether acting in an individual, fiduciary or other capacity. 
 “Platform” is defined in
clause (n) of Section 7.1.1. 

  
 24 

 “PPSA” means the Personal Property Security Act, as in effect from time to
time in Ontario, Alberta, Saskatchewan, Manitoba, British Columbia, Northwest Territories and Nova Scotia and similar legislation in any other province of Canada where collateral is located. 

“Prepayment Premium Grid” is defined in Section 3.1.1(a). 

“Pro Forma Basis” means a calculation in accordance with the second paragraph of Section 1.4. 

“Process Agent” is defined in Section 12.13. 

“Purchased Lease Collateral” is defined in the definition of “Lease Purchase Transaction”. 

“Purchased Lease Cap Reference Amount” has the same meaning specified in Section 7.2.2(m). 

“Purchased Leases” is defined in the definition of “Lease Purchase Transaction.” 

“Purchase Price” means, with respect to a Purchased Lease, the present value (calculated as the discount rate applicable
to the relevant Lease Purchase Transaction) of the aggregate payments due or to become due under such Purchased Lease. 

“Qualified Capital Securities” means Capital Securities which are common equity or preferred equity that does not
constitute Disqualified Equity Interests. 
 “Quarterly Payment Date” means the last day of April, July,
October and January, or, if any such day is not a Business Day, the next succeeding Business Day. 
 “Rate Protection
Agreement” means, collectively, any interest rate swap, cap, collar or similar agreement entered into by the Parent or any of its Subsidiaries under which the counterparty of such agreement is (or at the time such agreement was entered
into, was) a Lender or an Affiliate of a Lender. 
 “Register” is defined in Section 2.6.

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

“Release” means any spilling, leaking, pumping, pouring , emitting, emptying, spraying, inoculating, depositing,
seeping, throwing, placing, exhausting, discharging, injecting, escaping, leaching, dumping or disposing into the environment (including the abandonment or discarding of barrels, containers, and other closed receptacles containing any Hazardous
Material). 
 “Replacement Notice” is defined in Section 4.11. 

  
 25 

 “Repurchase Price” means, with respect to a Purchased Lease, (x) the
present value (calculated at the same discount rate as the discount rate used to calculate the purchase price to be paid when such Purchased Lease was sold to the relevant Lease Purchaser) of the aggregate payments due or to become due under such
Purchased Lease and (y) the scheduled adjustment amount applicable to the period during which such Repurchase Price is being calculated (which scheduled adjustment amount shall not exceed 5% of the amount referred to in clause (x). 

“Required Lenders” means, at any time, Lenders holding more than 50% of the Total Exposure Amount. 

“Reset Date” means the date of delivery of the Compliance Certificate (pursuant to clause (c) of
Section 7.1.1) in respect of the second full Fiscal Quarter ended after the Closing Date. 
 “Residual
Positions” is defined in the definition of “Lease Purchase Transaction.” 
 “Resource Conservation
and Recovery Act” means the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., as amended. 
 “Restricted Payment” means (i) the declaration or payment of any dividend (other than dividends payable solely in Qualified Capital Securities of the Parent or any Subsidiary) on, or
the making of any payment or distribution on account of (including for the repurchase of), or setting apart assets for a sinking or other analogous fund for the purchase, redemption, defeasance, retirement or other acquisition of, any class of
Capital Securities of the Parent or any Subsidiary or any warrants, options or other right or obligation to purchase or acquire any such Capital Securities, whether now or hereafter outstanding, or (ii) the making of any other payment
distribution in respect of such Capital Securities, in each case either directly or indirectly, whether in cash, property or obligations of the Parent or any Subsidiary or otherwise. 

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

 “Sanctions” is defined in Section 6.20.1. 

“SEC” means the Securities and Exchange Commission. 

“Secured Cash Management Agreement” means any Cash Management Agreement that is entered into by and between any Obligor
and any Cash Management Bank. 
 “Secured Parties” means, collectively, the Lenders, the Collateral Agent, the
Administrative Agent, each counterparty to a Rate Protection Agreement that is (or at the time such Rate Protection Agreement was entered into, was) a Lender or an Affiliate thereof and (in each case), each of their respective successors,
transferees and assigns. 
 “Security Agreement” means, as the context may require, the U.S. Pledge and
Security Agreement, the Canadian Pledge and Security Agreement, the U.K. Security Agreement, the Trademark Security Agreement, the Copyright Security Agreement, the Patent Security Agreement and each Foreign Pledge Agreement, in each case as
amended, supplemented, amended and restated or otherwise modified from time to time. 

  
 26 

 “Solvent” means, with respect to any Person and its Subsidiaries on a
particular date, that on such date: 
 (a) the fair value of the property of such Person and its Subsidiaries on
a consolidated basis is greater than the total amount of liabilities, including contingent liabilities, of such Person and its Subsidiaries on a consolidated basis; 

(b) the present fair salable value of the assets of such Person and its Subsidiaries on a consolidated basis is not less
than the amount that will be required to pay the probable liability of such Person and its Subsidiaries on a consolidated basis on its debts as they become absolute and matured; 

(c) such Person does not intend to, and does not believe that it or its Subsidiaries will, incur debts or liabilities
beyond the ability of such Person and its Subsidiaries to pay as such debts and liabilities mature; and 
 (d)
such Person and its Subsidiaries on a consolidated basis is not engaged in business or a transaction, and such Person and its Subsidiaries on a consolidated basis is not about to engage in a business or a transaction, for which the property of such
Person and its Subsidiaries on a consolidated basis would constitute an unreasonably small capital. The amount of Contingent Liabilities at any time shall be computed as the amount that, in light of all the facts and circumstances existing at such
time, can reasonably be expected to become an actual or matured liability. 
 “Specified Disposition” means the
sale of some or all of the assets in the Parent’s or its Subsidiaries’ DataNet CommSource division for consideration which may be in the aggregate amount of up to $20,000,000 consisting of cash or vendor take-back promissory notes.

 “Specified Equity Contribution” is defined in clause (b) of Section 7.2.4.

 “Sponsor” means Francisco Partners II, L.P. and Controlled Investment Affiliates. 

“Sponsor Permitted Assignee Assignment Agreement” is defined in Section 12.10.2(f)(i)(C). 

“Sponsor Permitted Assignees” is defined in Section 12.10.2(f)(i). 

“Spot Rate” for a currency means the rate determined by the Administrative Agent, to be the rate quoted by the Person
acting in such capacity as the spot rate for the purchase by such Person of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date as of
which the foreign exchange computation is made; provided that the Administrative Agent may obtain such spot rate from another financial institution designated by the Administrative Agent if the Person acting in such capacity does not have as
of the date of determination a spot buying rate for any such currency. 
 “Stated Maturity Date” means

 (a) February 27, 2020; and 

(b) with respect to any Loans, such later date as may be applicable pursuant to Section 2.8. 

  
 27 

 “STM Investment Affiliate” means, with respect to Sir Terrence Matthews,
any other person that (i) is organized primarily for the purpose of making equity or debt investments in one or more Persons and (ii) is directly or indirectly Controlled by Sir Terrence Matthews; provided that “STM Investment
Affiliate” shall exclude any operating company that is directly or indirectly Controlled by Sir Terrence Matthews. 

“Subordinated Debt” means unsecured Indebtedness of the Parent or any of its Subsidiaries which is (i) owed to a
Person other than an Obligor and (ii) subordinated in right of payment to the Obligations pursuant to documentation containing redemption and other prepayment events, maturities, amortization schedules, covenants, events of default, remedies,
acceleration rights, subordination provisions and other material terms reasonably satisfactory to the Required Lenders. 

“Subordinated Debt Documents” means, collectively, the loan agreements, indentures, note purchase agreements, promissory
notes, guarantees, and other instruments and agreements evidencing the terms of Subordinated Debt, as amended, supplemented, amended and restated or otherwise modified in accordance with Section 7.2.12. 

“Subordination Provisions” is defined in Section 8.1.11. 

“Subsidiary” means, with respect to any Person, any other Person of which more than 50% of the outstanding Voting
Securities of such other Person (irrespective of whether at the time Capital Securities of any other class or classes of such other Person shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly
owned or controlled by such Person, by such Person and one or more other Subsidiaries of such Person, or by one or more other Subsidiaries of such Person. Unless the context otherwise specifically requires, the term “Subsidiary”
shall be a reference to a Subsidiary of the Parent. 
 “Subsidiary Guarantor” means each Subsidiary that has
executed and delivered to the Administrative Agent a Guaranty (including by means of a delivery of a supplement thereto). 

“Subsidiary Guaranty” means the Subsidiary Guaranty executed and delivered by each Canadian Subsidiary, each U.S.
Subsidiary and each U.K. Subsidiary pursuant to the terms of this Agreement, substantially in the form of Exhibit F hereto, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“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, 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). 

  
 28 

 “Synthetic Lease” means, as applied to any Person, any lease (including
leases that may be terminated by the lessee at any time) of any property (whether real, personal or mixed) (a) that is not a capital lease in accordance with GAAP; and (b) in respect of which the lessee retains or obtains ownership of the
property so leased for federal income tax purposes, other than any such lease under which that Person is the lessor. 

“Taxes” means all income, stamp or other taxes, duties, levies, imposts, charges, assessments, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, and all interest, penalties or similar liabilities with respect thereto. 

“Term Loan Percentage” means, relative to any Lender, the applicable percentage relating to Loans set forth opposite its
name on Schedule II hereto under the Commitment column or set forth in a Lender Assignment Agreement under the Commitment column, as such percentage may be adjusted from time to time pursuant to Lender Assignment Agreements executed by such
Lender and its Assignee Lender and delivered pursuant to Section 12.10.2(d). 
 “Termination Date”
means the date on which all Obligations have been paid in full in cash and all Commitments shall have terminated, other than Cash Management Agreements and Rate Protection Agreements which do not terminate upon the repayment of the Loans and those
obligations which by the terms of the Loan Documents are intended to survive the repayment of the Loans. 
 “Three
Largest Lease Cap Amount” has the meaning specified in Section 7.2.2(m). 
 “Total Exposure
Amount” means, on any date of determination (and without duplication), the outstanding principal amount of all Loans and the unfunded amount of the Commitments that are outstanding and have not been terminated as of such date. 

“Trademark Security Agreement” means any Trademark Security Agreement executed and delivered by any Obligor
substantially in the form attached as an Exhibit to the U.S. Pledge and Security Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“type” means, relative to any Loan, the portion thereof, if any, being maintained as an Alternate Base Rate Loan or a
LIBO Rate Loan. 
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New
York; provided that, if, with respect to any Filing Statement or by reason of any provisions of law, the perfection or the effect of perfection or non-perfection of the security interests granted to the Collateral Agent pursuant to the
applicable Loan Document is governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States other than New York, then “UCC” means the Uniform Commercial Code as in effect from time to time in such other
jurisdiction for purposes of the provisions of each Loan Document and any Filing Statement relating to such perfection or effect of perfection or non-perfection. 

  
 29 

 “U.K. Subsidiary” means any Subsidiary that is incorporated or organized
under the laws of the United Kingdom. 
 “U.K. Subsidiary Guarantor” means each U.K. Subsidiary which has
executed and delivered the Subsidiary Guaranty (or a supplement thereto). 
 “U.K. Security Agreement” means
the Debenture executed and delivered by each U.K. Subsidiary Guarantor, as amended, supplemented, amended and restated or otherwise modified from time to time. 
 “United States” or “U.S.” means the United States of America, its fifty states and the District of Columbia. 

“U.S. Dollar”, “Dollar” and “$” each mean lawful currency of the United States.

 “U.S. Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in Dollars,
such amount, and (b) with respect in any amount denominated in Canadian Dollars, the equivalent amount thereof in U.S. Dollars as determined by the Administrative Agent at such time on the basis of the Spot Rate for the purchase of Dollars with
Canadian Dollars. 
 “U.S. Pension Plan” means a “pension plan”, as such term is defined in
Section 3(2) of ERISA, which is subject to Title IV of ERISA (other than a multiemployer plan as defined in Section 4001(a)(3) of ERISA), and to which the Parent or the Borrower or any member of the Controlled Group sponsors or contributes
or has done so within the preceding five years, including any liability by reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be
a contributing sponsor under Section 4069 of ERISA; provided that Canadian Pension Plans shall be excluded from the definition of “U.S. Pension Plan”. 
 “U.S. Person” means any person that is a “United States person”, as defined under Section 7701(a)(30) of the Code. 

“U.S. Pledge and Security Agreement” means the Pledge and Security Agreement executed and delivered by the Borrower and
each Subsidiary Guarantor from time to time party thereto, substantially in the form of Exhibit G-1 hereto, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“U.S. Subsidiary” means any Subsidiary that is incorporated or organized under the laws of the United States, a state
thereof or the District of Columbia. 
 “U.S. Subsidiary Guarantor” means each U.S. Subsidiary which has
executed and delivered the U.S. Subsidiary Guaranty (or a supplement thereto). 
 “U.S. Welfare Plan” means a
“welfare plan”, as such term is defined in Section 3(1) of ERISA; provided that Canadian Welfare Plans shall be excluded from the definition of U.S. Welfare Plans. 

  
 30 

 “Voting Securities” means, with respect to any Person, Capital Securities
of any class or kind ordinarily having the power to vote for the election of directors, managers or other voting members of the governing body of such Person. 
 “wholly owned Subsidiary” means any Subsidiary all of the outstanding Capital Securities of which (other than any director’s qualifying shares or investments by foreign nationals
mandated by applicable laws) is owned directly or indirectly by the Parent. 
 SECTION 1.2 Use of Defined
Terms. Unless otherwise defined or the context otherwise requires, terms for which meanings are provided in this Agreement shall have such meanings when used in each other Loan Document and the Disclosure Schedule. 

SECTION 1.3 Cross-References. Unless otherwise specified, references in a Loan Document to any Article or Section
are references to such Article or Section of such Loan Document, and references in any Article, Section or definition to any clause are references to such clause of such Article, Section or definition. 

SECTION 1.4 Accounting and Financial Determinations. Unless otherwise specified, all accounting terms used in each
Loan Document shall be interpreted, and all accounting determinations and computations thereunder (including the determination of the Leverage Ratio (including with respect to Section 7.2.4) and the definitions used in such calculations)
shall be made, in accordance with those U.S. generally accepted accounting principles (“GAAP”) applied in the preparation of the financial statements delivered to the Administrative Agent prior to the Closing Date. Unless otherwise
expressly provided, all financial covenants and defined financial terms shall be computed on a consolidated basis for the Parent and its Subsidiaries, in each case without duplication. For the purposes of determining any threshold amount forming any
part of any representation or warranty, covenant or Event of Default, all relevant amounts denominated in Canadian Dollars shall be calculated, as of such time of determination, at the U.S. Dollar Equivalent thereof. Each U.S. Dollar
Equivalent of any amounts denominated in Canadian Dollars shall constitute prima facie evidence thereof. 
 As of
any date of determination, for purposes of determining the Leverage Ratio (and any financial calculations required to be made or included within such ratios, or required for purposes of preparing any Compliance Certificate to be delivered pursuant
to the definition of “Permitted Acquisition”), the calculation of such ratios and other financial calculations shall include or exclude, as the case may be, the effect of any assets or businesses that have been acquired or Disposed of by
the Parent or any of its Subsidiaries pursuant to the terms hereof (including through mergers or consolidations) and Indebtedness incurred or permanently repaid as of such date of determination, as determined by the Parent on a pro
forma basis in accordance with GAAP, which determination (i) in the case of acquisitions and Dispositions, may include factually supportable one-time adjustments or reductions in costs, if any, reasonably projected to be directly
attributable to any such permitted Disposition or Permitted Acquisition, as the case may be, in an amount not to exceed 15% of Consolidated EBITDA for the applicable four Fiscal Quarter period as determined on such pro forma basis
before giving effect to any such cash charges or to any addbacks 

  
 31 

 
of the types specified in clauses (v), (vii) and (ix) of the definition of Consolidated EBITDA and in each case either (A) calculated in accordance with Regulation S-X of the
Securities Act of 1933, as amended from time to time, and any successor statute, for the period of four Fiscal Quarters ended on or immediately prior to the date of determination of any such ratios (without giving effect to any cost-savings or
adjustments relating to synergies resulting from a Permitted Acquisition except as permitted by Regulation S-X of the Securities Act of 1933 or otherwise as the Administrative Agent shall otherwise agree) or (B) (1) determined in good
faith by (I) the Board of Directors of such Person or the Parent, if such Board of Directors is otherwise approving such transaction (and certified as such by an Authorized Officer of such Person or the Parent in a certificate delivered to the
Administrative Agent), or (II) in each other case, the chief financial officer of the Parent, (2) substantially likely to be achieved, (3) giving effect to events that are (x) directly attributable to such transaction and initiated or
expected to be initiated within twelve months following such event and (y) expected to have a continuing impact on the Parent or any of its Subsidiaries during the twelve month period following such event and (ii) shall be made giving
effect to any such Permitted Acquisition, permitted Disposition or incurrence or repayment of Indebtedness as if it had occurred on the first day of such four Fiscal Quarter period. 

SECTION 1.5 Currency Equivalents. Except for purposes of financial statements delivered by the Parent hereunder or
calculating financial covenants hereunder or except as otherwise provided herein, the applicable amount of any currency (other than Dollars) for purposes of the Loan Documents shall be such U.S. Dollar Equivalent amount as so determined by the
Administrative Agent. 
 ARTICLE II 
 COMMITMENTS, BORROWING PROCEDURES AND NOTES 
 SECTION 2.1
Commitments. On the terms and subject to the conditions of this Agreement, the Lenders severally agree to make Loans as set forth below. 
 SECTION 2.1.1 Commitment. In a single Borrowing on the Closing Date, each Lender agrees that it will make loans (relative to such Lender, its “Loans”) to the Borrower equal to such
Lender’s Term Loan Percentage of the aggregate amount of the Borrowing of Loans requested by the Borrower to be made on such day. No amounts paid or prepaid with respect to Loans may be reborrowed. The undrawn amount of the Commitment following
the making of such Borrowing, if any, shall be automatically cancelled and terminated without any further action. 
 SECTION 2.2 [Reserved] 
 SECTION 2.3 Borrowing Procedure.
By delivering a Borrowing Request to the Administrative Agent on or before 11:00 a.m., New York time, on a Business Day, the Borrower may irrevocably request, on not less than one Business Day’s notice in the case of Alternate Base Rate Loans
or three Business Days’ notice in the case of LIBO Rate Loans, and in any case not more than five Business Days’ notice, that a Borrowing be made in a single drawing on the Closing Date. On or before 11:00 a.m., New York time on such
Business Day each Lender shall deposit with the Administrative Agent 

  
 32 

 
same day funds in an amount equal to such Lender’s Term Loan Percentage of the requested Borrowing. Such deposit will be made to an account which the Administrative Agent shall specify from
time to time by notice to the Lenders. To the extent funds are received from the Lenders, the Administrative Agent shall make such funds available to the Borrower by wire transfer to the accounts the Borrower shall have specified in its Borrowing
Request. No Lender’s obligation to make any Loan shall be affected by any other Lender’s failure to make any Loan. 
 SECTION 2.4 Continuation and Conversion Elections. By delivering a Continuation/Conversion Notice to the Administrative Agent on or before 10:00 a.m., New York time, on a Business Day, the Borrower
may from time to time irrevocably elect, on not less than one Business Day’s notice in the case of Alternate Base Rate Loans and three Business Days’ notice in the case of LIBO Rate Loans, and in either case not more than five Business
Days’ notice, that all, or any portion in an aggregate minimum amount of $1,000,000 and an integral multiple of $500,000 be, in the case of Alternate Base Rate Loans, converted into LIBO Rate Loans, or in the case of LIBO Rate Loans, converted
into Alternate Base Rate Loans or continued as LIBO Rate Loans (in the absence of delivery of a Continuation/Conversion Notice with respect to any LIBO Rate Loan at least three Business Days (but not more than five Business Days) before the last day
of the then current Interest Period with respect thereto, such LIBO Rate Loan shall, on such last day, automatically convert to an Alternate Base Rate Loan); provided that (x) each such conversion or continuation shall be pro-rated among
the applicable outstanding Loans of all Lenders that have made such Loans, and (y) no portion of the outstanding principal amount of any Loans may be continued as, or be converted into, LIBO Rate Loans when any Default has occurred and is
continuing. The conversion of an Alternate Base Rate Loan into a LIBO Rate Loan or a LIBO Rate Loan into an Alternate Base Rate Loan shall not effect a novation of the Loan so converted. 

SECTION 2.5 Funding. Each Lender may, if it so elects, fulfill its obligation to make, continue or convert LIBO
Rate Loans hereunder by causing one of its foreign branches or Affiliates (or an international banking facility created by such Lender) to make or maintain such LIBO Rate Loan; provided that, such LIBO Rate Loan shall nonetheless be deemed to
have been made and to be held by such Lender, and the obligation of the Borrower to repay such LIBO Rate Loan shall nevertheless be to such Lender for the account of such foreign branch, Affiliate or international banking facility. In addition, the
Borrower hereby consents and agrees that, for purposes of any determination to be made for purposes of Sections 4.1, 4.2, 4.3 and 4.4, it shall be conclusively assumed that each Lender elected to fund all LIBO Rate Loans
by purchasing deposits in its LIBOR Office’s interbank eurodollar market. 
 SECTION 2.6 Register;
Notes. The Register shall be maintained on the following terms. 
 (a) The Borrower hereby designates the
Administrative Agent to serve as the Borrower’s agent, solely for the purpose of this clause, to maintain a register (the “Register”) on which the Administrative Agent will record each Lender’s Commitment, the Loans made
by such Lender and each repayment in respect of the principal amount of the Loans, annexed to which the Administrative Agent shall retain 

  
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a copy of each Lender Assignment Agreement delivered to the Administrative Agent pursuant to Section 12.10.2(d). Failure to make any recordation, or any error in such recordation,
shall not affect any Obligor’s Obligations. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person in whose name a Loan is registered
(or, if applicable, to which a Note has been issued) as the owner thereof for the purposes of all Loan Documents, notwithstanding notice or any provision herein to the contrary. Any assignment or transfer of a Lender’s Loans made pursuant
hereto shall be registered in the Register only upon delivery to the Administrative Agent of a Lender Assignment Agreement that has been executed by the requisite parties pursuant to Section 12.10.2(d). No assignment or transfer of a
Lender’s Loans shall be effective unless such assignment or transfer shall have been recorded in the Register by the Administrative Agent as provided in this Section. 

(b) The Borrower agrees that, upon the request to the Administrative Agent by any Lender, the Borrower will execute and
deliver to such Lender a Note evidencing the Loans made by, and payable to the order of, such Lender in a maximum principal amount equal to such Lender’s applicable Term Loan Percentage of the Commitment Amount; provided that, upon any
assignment or transfer of a Lender’s Loans, such Lender shall surrender to the Borrower its Notes. The Borrower hereby irrevocably authorizes each Lender to make (or cause to be made) appropriate notations on the grid attached to such
Lender’s Note (or on any continuation of such grid), which notations, if made, shall evidence, inter alia, the date of, the outstanding principal amount of, and the interest rate and Interest Period applicable to the Loans
evidenced thereby. Such notations shall, to the extent not inconsistent with notations made by the Administrative Agent in the Register, be conclusive and binding on each Obligor absent manifest error; provided that the failure of any Lender
to make any such notations shall not limit or otherwise affect any Obligations of any Obligor. 
 SECTION 2.7
Incremental Facilities. 
 SECTION 2.7.1 Upon at least five days’ notice to the Administrative Agent, at any time
after the Closing Date but on not more than five occasions during the term of this Agreement, the Borrower may request additional term loan commitments (such commitments, “Incremental Commitments,” it being understood that the
Incremental Loans made thereunder may take the form of an increase to the then-existing Loan or an Incremental Loan) (collectively, the “Incremental Facilities”); provided that (i) after giving pro forma effect to any
such addition, the aggregate amount of Incremental Facilities that have been added pursuant to this Section 2.7 shall not exceed (x) $25,000,000 plus (y) if after giving pro forma effect thereto the First Lien Leverage Ratio
(without netting the proceeds of any such Incremental Facility as cash thereunder) would be less than 1.90:1.00 after giving pro forma effect thereto, an additional amount not to exceed $50,000,000, in each case, with respect to clauses (x) and
(y), minus any “Incremental Facilities” under and as defined in the First Lien Credit Agreement that have been incurred on or prior to the relevant date of determination and (ii) any such addition shall be in an aggregate amount of
$15,000,000 or any whole multiple of $1,000,000 in excess thereof (provided that such amount may be less than $15,000,000 if such amount represents all remaining availability under the aggregate limit in respect of the Incremental Facilities
set forth in clause (i) to this proviso). 

  
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 SECTION 2.7.2 If any Incremental Facilities are added in accordance with this
Section 2.7.1, the Administrative Agent and the Borrower shall determine the effective date (the “Incremental Facility Effective Date”) and the final amount of such addition. The Administrative Agent shall promptly
notify the Borrower and the applicable Lenders of the final amount of such addition and the Incremental Facility Effective Date. Each such Lender may, in its sole discretion, commit to participate in such Incremental Facilities by forwarding its
commitment thereto to the Administrative Agent in form and substance reasonably satisfactory to the Administrative Agent. As a condition precedent to such addition: (i) no Default or Event of Default exists or would exist immediately after
giving effect to the Incremental Facility, (ii) the maturity date of the Incremental Loans shall be no earlier than the maturity date of the existing Loans, (iii) the weighted average life to maturity of the Incremental Loans shall be no
shorter than the remaining average life to maturity of the existing Loans, (iv) the yield applicable to the Incremental Loan shall be determined by the Borrower and the lenders thereunder but provided that if the yield on the Incremental
Loan exceeds the yield at such time on the existing Loans by more than 0.50% per annum, then the interest rate margins for the then existing Loans shall be increased to the extent necessary so that the yield on the existing Loans is no lower
than a yield 0.50% per annum below that of the Incremental Loan, provided further that in determining the yield applicable to the Incremental Loans and the existing Loans (x) original issue discount (“OID”) or upfront fees
(which shall be deemed to constitute like amounts of OID) payable by the Borrower to the Lenders in the initial primary syndication thereof shall be included (with OID being equated to interest based on an assumed four year life to maturity),
(y) customary arrangement, structuring or underwriting fees shall be excluded and (z) if such Incremental Loans include an interest rate floor greater than the interest rate floor applicable to the Loans, such increased amount shall be
equated to yield and implemented as a floor or increase in floor on the existing Loans, (v) the Borrower shall be in pro forma compliance with the financial covenant in Section 7.2.4 after giving pro forma effect to
all Incremental Facilities (without netting the proceeds of any such Incremental Facility as cash thereunder) and (vi) the Administrative Agent shall have received customary legal opinions, board resolutions and other customary closing
certificates (including as to the satisfaction of the conditions set forth in Section 5.2 and in this Section 2.7 with calculations in reasonable detail) reasonably requested by the Administrative Agent and consistent in form
with those delivered on the Closing Date. 
 SECTION 2.7.3 On each Incremental Facility Effective Date, each applicable Lender,
assignee under Section 12.10.2(d) or other Person which is participating in the Incremental Facility (i) shall become a “Lender” for all purposes of this Agreement and the other Loan Documents and (ii) in the case of
any Incremental Commitment, shall make an Incremental Loan to the Borrower in a principal amount equal to such Incremental Commitment, and such Incremental Loan shall be a “Loan” for all purposes of this Agreement and the other Loan
Documents. 
 SECTION 2.7.4 The Incremental Facilities shall be evidenced by an amendment or supplement to this Agreement
executed by the Borrower (and consented to by all other Obligors), the Lenders participating in such Incremental Facilities and the Administrative Agent, and may include the Incremental Loans or increased Loans, as applicable, in any mandatory
prepayment, pro rata sharing, voting or other provision of this Agreement on terms consistent with the Loans. 

  
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 SECTION 2.7.5 Any Incremental Loans or increased Loans, as applicable, made or provided
pursuant to this Section 2.7 shall be evidenced by one or more entries in the Register maintained by the Administrative Agent in accordance with the provisions set forth in this Agreement. 

SECTION 2.7.6 This Section 2.7 shall override any provision in Section 4.8 or 12.1 to the contrary.

 SECTION 2.8 Extension of Maturity Date. 

SECTION 2.8.1 Requests for Extension. The Borrower may, by notice (an “Extension Notice”) to the Administrative
Agent (who shall promptly notify the Lenders) not earlier than 60 days and not later than 35 days prior to the Stated Maturity Date then in effect hereunder (the “Existing Maturity Date”), request that each Lender extend such
Lender’s applicable Stated Maturity Date for an additional one year from the Existing Maturity Date. 
 SECTION 2.8.2
Lender Elections to Extend. Each Lender, acting in its sole and individual discretion, shall, by notice to the Administrative Agent given not later than the date (the “Notice Date”) that is 15 days following receipt of an
Extension Notice, advise the Administrative Agent whether or not such Lender agrees to such extension (and each Lender that does not agree to such extension (a “Non-Extending Lender”) shall notify the Administrative Agent of such
fact promptly after such determination (but in any event no later than the Notice Date)), and any Lender that does not so advise the Administrative Agent on or before the Notice Date shall be deemed to be a Non-Extending Lender. The election of any
Lender to agree to such extension (an “Extending Lender”) shall not obligate any other Lender to so agree. In the event that the aggregate principal amount of the Commitment or Loan, as applicable, that is subject to the
Borrower’s request for such extension is less than the aggregate amount of Commitments or Loans, as applicable, of the Extending Lenders, such extension shall apply, on a pro rata basis, to each Extending Lender’s Commitment or Loans, as
applicable. 
 SECTION 2.8.3 Notification by Administrative Agent. The Administrative Agent shall notify the Borrower of
each Lender’s determination under this Section no later than the date 5 days following the Notice Date (or, if such date is not a Business Day, on the next preceding Business Day). 

SECTION 2.8.4 Additional Commitment Lenders. The Borrower shall have the right to replace each Non-Extending Lender with, and add
as “Lenders” under this Agreement in place thereof, one or more Eligible Assignees (each, an “Additional Commitment Lender”) as provided in Section 4.11; provided that each of such Additional Commitment
Lenders shall enter into a Lender Assignment Agreement pursuant to which such Additional Commitment Lender shall, effective as of the Existing Maturity Date, undertake a Commitment (and, if any such Additional Commitment Lender is already a Lender,
its Commitment shall be in addition to such Lender’s Commitment hereunder on such date). 
 SECTION 2.8.5 Effective
Date. Subject to compliance with the conditions set forth in Section 2.8.6, effective as of the Existing Maturity Date, the applicable Stated Maturity Date of each Extending Lender and of each Additional Commitment Lender shall be
extended to the date falling one year after the Existing Maturity Date (except that, if such date is not a Business Day, 

  
 36 

 
such Maturity Date as so extended shall be the next preceding Business Day) and each Additional Commitment Lender shall thereupon become a “Lender” for all purposes of this Agreement.
The yield applicable to the Loans and Commitments subject to such extension shall be determined by the Borrower, the Extending Lenders and the Additional Commitment Lenders, with any change in the Applicable Margin or fees payable hereunder to be
effective as of the Existing Maturity Date. 
 SECTION 2.8.6 Conditions to Effectiveness of Extensions. As a condition
precedent to such extension, the Borrower shall deliver to the Administrative Agent a certificate of each Obligor dated as of the Existing Maturity Date (in sufficient copies for each Extending Lender and each Additional Commitment Lender)
(i) certifying and attaching the resolutions adopted by such Obligor approving or consenting to such extension and (ii) in the case of the Borrower, certifying that, before and after giving effect to such extension, (A) the
representations and warranties contained in Article VI and the other Loan Documents are true and correct in all material respects (unless qualified by “material” or “Material Adverse Effect” or similar references to
materiality, in which case such representations and warranties shall be true and correct in all respects) on and as of the Existing 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 (unless qualified by “material” or “Material Adverse Effect” or similar references to materiality, in which case such representations and
warranties shall be true and correct in all respects) as of such earlier date, and (B) no Default or Event of Default exists. In addition, on the applicable Stated Maturity Date of each Non-Extending Lender, the Borrower shall prepay any
Loans outstanding on such date (and pay any additional amounts required pursuant to Section 4.4) to the extent necessary to keep outstanding Loans ratable with any revised Term Loan Percentages of the respective Lenders effective as of
such date. 
 SECTION 2.8.7 Conflicting Provisions. This Section shall supersede any provisions in
Section 4.8 or 12.1 to the contrary. 
 ARTICLE III 

REPAYMENTS, PREPAYMENTS, INTEREST AND FEES 
 SECTION 3.1 Repayments and Prepayments; Application. The Borrower agrees that the Loans shall be repaid and prepaid pursuant to the following terms (subject in all cases to the terms, conditions
and restrictions set forth in the Intercreditor Agreement). 
 SECTION 3.1.1 Repayments and Prepayments. The Borrower
shall repay in full the unpaid principal amount of each Loan made to the Borrower upon the applicable Stated Maturity Date therefor. Prior thereto, payments and prepayments of the Loans shall or may be made as set forth below. 

(a) From time to time on any Business Day either (x) after the repayment in full of the First Lien Term Loans or
(y) as otherwise may be permitted by the terms of the First Lien Credit Agreement, and subject to grid set forth below in this Section 3.1.1(a) (the “Prepayment Premium Grid”), the Borrower may make a voluntary
prepayment, in whole prior to the first anniversary of the Closing Date or in whole or in part any time thereafter, of the outstanding principal amount of the Loans; provided that (A) any such

  
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prepayment of the Loans shall be made pro rata among Loans of the same type and, if applicable, having the same Interest Period of all Lenders that have made such (B) all such
voluntary prepayments shall require at least one but no more than five Business Days’ prior notice to the Administrative Agent; and (C) all such voluntary partial prepayments shall be in an aggregate minimum amount of $2,500,000 and an
integral multiple of $1,000,000; provided further that, the Borrower shall have paid the following prepayment premium in connection with any such voluntary prepayment, including, without limitation, any refinancing of the Loans:

 Prepayment Premium Grid 
  

			
	 Year
	  	Prepayment Premium (as a
percentage of the Loans
being
prepaid)
	 Prior to the first anniversary of the Closing Date
	  	No prepayment allowed unless a
Material Transaction has occurred, in
which case, 3%
	 On or after the first anniversary of the Closing Date but prior to the second anniversary of the Closing Date
	  	2%
	 On or after the second anniversary of the Closing Date but prior to the third anniversary of the Closing Date
	  	1%
	 On or after the third anniversary of the Closing Date
	  	0%

 (b) The Loans shall be repaid on the Stated Maturity Date in an amount equal to the
aggregate principal amount of all Loans outstanding on such date. 
 (c) Following the Discharge of First Lien
Obligations, concurrently with the receipt by the Parent or any of its Subsidiaries of any Net Debt Proceeds, the Borrower shall make, or cause to be made, a mandatory prepayment of the Loans in an amount equal to 100% of such Net Debt Proceeds plus
the applicable premium (if any) owed pursuant to the Prepayment Premium Grid. 
 (d) Following the Discharge of
First Lien Obligations, the Parent shall, within five Business Days following the receipt of any Net Disposition Proceeds or Net Casualty Proceeds by the Parent or any of its Subsidiaries, (x) deliver to the Administrative Agent a calculation
of the amount of such proceeds and, to the extent the aggregate amount of such proceeds received by the Parent and its Subsidiaries in any Fiscal Year exceeds the U.S. Dollar Equivalent of $2,000,000, make, or cause to be made, a mandatory
prepayment of the Loans in an amount equal to 100% of the aggregate amount of such Net Disposition Proceeds or Net Casualty Proceeds in excess of the U.S. Dollar 

  
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Equivalent of $2,000,000; provided that, pursuant to written notice referred to above delivered by the Parent to the Administrative Agent in connection with the calculation not more than
three Business Days following receipt of any such Net Disposition Proceeds or Net Casualty Proceeds, so long as no Default has occurred and is continuing, all such other Net Disposition Proceeds or Net Casualty Proceeds, as the case may be, may be
retained by the Parent or any such Subsidiary, as the case may be (and be excluded from the prepayment requirements of this clause (d)), if (i) the Parent informs the Administrative Agent in such notice of its good faith intention to apply
(or cause one or more of the Subsidiaries to apply) such Net Disposition Proceeds or Net Casualty Proceeds to the acquisition of other assets or properties in the United States consistent with the businesses permitted to be conducted pursuant to
Section 7.2.1 (including by way of merger or Investment); provided further that, so long as such assets or properties will be owned by the Parent, the Borrower or a Subsidiary Guarantor and will constitute collateral, such
assets or properties may be located outside of the United States, and (ii) within 365 days following the receipt of such Net Disposition Proceeds or Net Casualty Proceeds, such proceeds are actually applied or committed pursuant to a written
agreement to such acquisition. The amount of such Net Disposition Proceeds or Net Casualty Proceeds not applied after such 365 day period (or committed pursuant to a written agreement within such 365 day period but not applied within 180 days after
such 365 day period) shall be applied as a mandatory prepayment of the Loans as required pursuant to the first sentence of this clause (d) without giving effect to the provisos herein. 

(e) Following the Discharge of First Lien Obligations, within 100 days after the close of each Fiscal Year (beginning with
the Fiscal Year ended April 30, 2014) the Borrower shall make, or cause to be made, a mandatory prepayment of the Loans in an amount equal to the ECF Percentage of the Excess Cash Flow (if any) for such Fiscal Year, provided that
voluntary prepayments of the Loans that are made in any Fiscal Year shall be credited against this required Excess Cash Flow payment for such Fiscal Year on a dollar-for-dollar basis. 

(f) Immediately upon any acceleration of the Stated Maturity Date of any Loans pursuant to Section 8.2 or
Section 8.3, the Borrower shall repay, or cause to be repaid, all the Loans, unless, pursuant to Section 8.3, only a portion of all the Loans is so accelerated (in which case the portion so accelerated shall be so repaid).

 All prepayments under this Section 3.1.1 shall be subject to (x) the prepayment premium set forth in
Section 3.1.1(a) above except as set forth therein and (y) Section 4.4, but otherwise shall be without premium or penalty. 
 SECTION 3.1.2 Application. Amounts prepaid pursuant to Section 3.1.1 shall, subject to the terms, conditions and restrictions of the Intercreditor Agreement, be applied, to the extent
of such prepayment or repayment, first, to the principal amount thereof being maintained as Alternate Base Rate Loans, and second, subject to the terms of Section 4.4, to the principal amount thereof being maintained as
LIBO Rate Loans. 

  
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 SECTION 3.2 Interest Provisions. Interest on the outstanding
principal amount of the Loans shall accrue and be payable in accordance with the terms set forth below. 
 SECTION 3.2.1
Rates. Pursuant to an appropriately delivered Borrowing Request or Continuation/Conversion Notice, the Borrower may elect that the Loans comprising a Borrowing accrue interest at a rate per annum: 

(a) on that portion maintained from time to time as an Alternate Base Rate Loan, equal to the sum of the Alternate Base
Rate from time to time in effect plus the Applicable Margin; and 
 (b) on that portion maintained as a LIBO Rate
Loan, during each Interest Period applicable thereto, equal to the sum of the LIBO Rate (Reserve Adjusted) for such Interest Period plus the Applicable Margin. 
 All LIBO Rate Loans shall bear interest from and including the first day of the applicable Interest Period to (but not including) the last day of such Interest Period at the interest rate determined as
applicable to such LIBO Rate Loan. Interest on Alternate Base Rate Loans shall be calculated from and including the first day of the Borrowing of such Alternate Base Rate Loan to (but not including) the date interest is required to be paid on such
Alternate Base Rate Loan pursuant to Section 3.2.3. 
 SECTION 3.2.2 Post-Maturity Rates; Default Rate. After
the date any principal amount of any Loan is due and payable (whether on the Stated Maturity Date, upon acceleration or otherwise), the Borrower shall pay, but only to the extent permitted by law, interest (after as well as before judgment) on such
amounts at a rate per annum equal to the rate of interest that otherwise would be applicable to such Loan plus 2% per annum (in each case being the “Default Rate”). Upon the request of the Required Lenders, while any
other Event of Default exists, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws. Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand. 
 SECTION 3.2.3 Payment Dates. Interest accrued on each Loan shall be payable, without duplication: 
 (a) on the Stated Maturity Date therefor; 
 (b) on the date of any
payment or prepayment, in whole or in part, of principal outstanding on such Loan on the principal amount so paid or prepaid; 
 (c) with respect to Alternate Base Rate Loans, on each Quarterly Payment Date occurring after the Effective Date; 
 (d) with respect to LIBO Rate Loans, on the last day of each applicable Interest Period (and, if such Interest Period shall exceed three months, on the date occurring on each three-month interval
occurring after the first day of such Interest Period); 

  
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 (e) with respect to any Alternate Base Rate Loans converted into LIBO Rate
Loans on a day when interest would not otherwise have been payable pursuant to clause (c), on the date of such conversion; and 
 (f) on that portion of any Loans the Stated Maturity Date of which is accelerated pursuant to Section 8.2 or Section 8.3, immediately upon such acceleration. 

Interest accrued on Loans or other monetary Obligations after the date such amount is due and payable (whether on the Stated Maturity Date, upon
acceleration or otherwise) shall be payable upon demand. 
 SECTION 3.3 Fees. The Borrower shall pay to
the Administrative Agent, for its own account, the fees in the amounts and on the dates set forth in the Administrative Agent Fee Letter. 
 ARTICLE IV 
 CERTAIN LIBO RATE AND OTHER PROVISIONS 

SECTION 4.1 LIBO Rate Lending Unlawful. If any Lender shall reasonably determine (which determination shall, upon
notice thereof to the Borrower and the Administrative Agent, be conclusive and binding on the Borrower) that the introduction of or any change in or in the interpretation of any law makes it unlawful, or that any Governmental Authority has asserted
that it is unlawful, for such Lender to make or continue any Loan as, or to convert any Loan into, a LIBO Rate Loan, the obligations of such Lender to make, continue or convert any such LIBO Rate Loan shall, upon such determination, forthwith be
suspended until such Lender shall notify the Administrative Agent that the circumstances causing such suspension no longer exist, and all outstanding LIBO Rate Loans payable to such Lender shall automatically convert into Alternate Base Rate Loans
at the end of the then current Interest Periods with respect thereto or sooner, if required by such law or assertion. 
 SECTION 4.2 Deposits Unavailable. If the Administrative Agent shall have determined that (i) deposits in the amount and for the relevant Interest Period are not available to it in its relevant
market or (ii) by reason of circumstances affecting its relevant market, adequate means do not exist for ascertaining the interest rate applicable hereunder to LIBO Rate Loans, then, upon notice from the Administrative Agent to the Borrower and
the applicable Lenders, the obligations of all such Lenders under Section 2.3 and Section 2.4 to make or continue any Loans as, or to convert any Loans into, LIBO Rate Loans shall forthwith be suspended until the
Administrative Agent shall notify the Borrower and the applicable Lenders that the circumstances causing such suspension no longer exist. 
 SECTION 4.3 Increased Loan Costs, etc. The Borrower agrees to reimburse each Secured Party for any increase in the cost to such Secured Party of, or any reduction in the amount of any sum
receivable by such Secured Party in respect of, such Secured Party’s Commitments and the making of Loans hereunder (including the making, continuing or maintaining (or of its obligation to make or continue) any Loans as, or of converting (or of
its obligation to convert) any Loans into, LIBO Rate Loans) that arise in 

  
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connection with any change in, or the introduction, adoption, effectiveness, interpretation, reinterpretation or phase-in after the Closing Date of, any law or regulation, directive, guideline,
decision or request (whether or not having the force of law) of any Governmental Authority, except for such changes by way of imposition or increase in reserve requirement included in the LIBOR Reserve Percentage and changes with respect to
(a) increased capital costs and (b) Taxes that are (i) imposed on or with respect to payments by or on account of any obligation of the Borrower under a Loan Document, (ii) Connection Income Taxes or (iii) Other Taxes. Each
affected Secured Party shall promptly notify the Administrative Agent and the Borrower in writing of the occurrence of any such event, stating the reasons therefor and the additional amount required fully to compensate such Secured Party for such
increased cost or reduced amount. Such additional amounts shall be payable by the Borrower directly to such Secured Party within five days of its receipt of such notice, and such notice shall, in the absence of manifest error, be conclusive and
binding on the Borrower. 
 SECTION 4.4 Funding Losses. In the event any Lender
shall incur any loss or expense (including any loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to make or continue any portion of the principal amount of any Loan as, or to
convert any portion of the principal amount of any Loan into, a LIBO Rate Loan) as a result of 
 (a) any
conversion or repayment or prepayment of the principal amount of any LIBO Rate Loan on a date other than the scheduled last day of the Interest Period applicable thereto, whether pursuant to Article III or otherwise; 

(b) any Loans not being made as LIBO Rate Loans in accordance with the Borrowing Request therefor; or 

(c) any Loans not being continued as, or converted into, LIBO Rate Loans in accordance with the Continuation/Conversion
Notice therefor; 
 then, upon the written notice of such Lender to the Borrower (with a copy to the Administrative Agent), the Borrower shall,
within five days of its receipt thereof, pay directly to such Lender such amount as will (in the reasonable determination of such Lender) reimburse such Lender for such loss or expense. Such written notice shall, in the absence of manifest error, be
conclusive and binding on the Borrower. 
 SECTION 4.5 Increased Capital Costs. If any change in, or the
introduction, adoption, effectiveness, interpretation, reinterpretation or phase-in of, any law or regulation, directive, guideline, decision or request (whether or not having the force of law) of any Governmental Authority affects or would affect
the amount of capital required or expected to be maintained by any Secured Party or any Person controlling such Secured Party, and such Secured Party determines (in good faith but in its sole and absolute discretion acting reasonably) that the rate
of return on its or such controlling Person’s capital as a consequence of the Commitments or the Loans made by such Secured Party is reduced to a level below that which such Secured Party or such controlling Person could have achieved but for
the occurrence of any such circumstance, then upon notice from time to time by such Secured Party to the Borrower, the Borrower 

  
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shall within five days following receipt of such notice pay directly to such Secured Party additional amounts sufficient to compensate such Secured Party or such controlling Person for such
reduction in rate of return. A statement of such Secured Party as to any such additional amount or amounts shall, in the absence of manifest error, be conclusive and binding on the Borrower. In determining such amount, such Secured Party may use any
method of averaging and attribution that it (in its sole and absolute discretion acting reasonably) shall deem applicable. Notwithstanding anything to the contrary in this Section, the Borrower shall not be required to compensate a Lender for any
amounts pursuant to this Section if the Lender makes a claim for such amounts later than the 120th day following the receipt of such Lender’s annual audit for the Fiscal Year in which the event giving rise to such claim and such amounts occurred; provided that, if the event giving rise to
such claim has a retroactive effect, such 120 day period shall be extended to include the period of such retroactive effect. 
 SECTION 4.6 Taxes. The Borrower covenants and agrees as follows with respect to Taxes: 
 (a) Except to the extent required by applicable law, any and all payments by or on account of the Borrower under each Loan Document shall be made without setoff, counterclaim or other defense, and free
and clear of, and without deduction or withholding for or on account of, any Taxes. In the event that any Taxes are required by applicable law to be deducted or withheld from any such payment by the applicable withholding agent (as determined in the
good faith discretion of such withholding agent), then: 
 (i) subject to clause (g), if such Taxes are
Non-Excluded Taxes, the amount of such payment by the Borrower shall be increased as may be necessary so that the applicable recipient receives, after withholding or deduction for or on account of such Non-Excluded Taxes (including withholding or
deduction applicable to additional sums payable under this Section 4.6), an amount that is not less than the amount the recipient would have received had no such withholding or deduction of Non-Excluded Taxes been made; and 

(ii) the applicable withholding agent shall withhold the full amount of such Taxes from such payment (as increased
pursuant to clause (a)(i)) and shall pay such amount to the Governmental Authority imposing such Taxes in accordance with applicable law. 
 (b) In addition, the Borrower shall pay all Other Taxes imposed to the relevant Governmental Authority imposing such Other Taxes in accordance with applicable law. 

(c) As promptly as practicable after the payment of any Taxes or Other Taxes described in this Section 4.6 by
the Borrower, the Borrower shall furnish to the Administrative Agent a copy of an official receipt (or a certified copy thereof) evidencing the payment of such Taxes or Other Taxes, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent. 

  
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The Administrative Agent shall make copies thereof available to any Lender upon request therefor. 

(d) Subject to clause (g), the Borrower shall indemnify each Secured Party for any
Non-Excluded Taxes and Other Taxes levied, imposed or assessed on (and whether or not paid directly by) such Secured Party whether or not such Non-Excluded Taxes or Other Taxes are correctly or legally asserted by the relevant Governmental
Authority. Promptly upon having knowledge that any such Non-Excluded Taxes or Other Taxes have been levied, imposed or assessed, and promptly upon written notice thereof by any Secured Party, the Borrower shall pay such Non-Excluded Taxes or Other
Taxes directly to the relevant Governmental Authority (provided that, no Secured Party shall be under any obligation to provide any such notice to the Borrower). In addition, the Borrower shall indemnify each Secured Party for any interest or
penalties with respect to Taxes that may become payable by such Secured Party directly as a result of any failure of the Borrower to pay any Taxes payable by it when due to the appropriate Governmental Authority or to deliver to the Administrative
Agent, pursuant to clause (c), documentation evidencing the payment of Taxes or Other Taxes; provided that, if a Secured Party or an Administrative Agent, as applicable, fails to give notice to the Borrower of the imposition of any
Taxes within 120 days following its receipt of actual written notice of the imposition of such Taxes, there will be no obligation for the Borrower to pay interest or penalties attributable to the period beginning after such 120th day and ending 7 days after the Borrower receives notice from such
Secured Party or the Administrative Agent, as applicable. With respect to indemnification for Non-Excluded Taxes and Other Taxes actually paid by any Secured Party or the indemnification in the immediately preceding sentence, such indemnification
shall be made within 30 days after the date such Secured Party makes written demand therefor. For the avoidance of doubt, the Borrower acknowledges that any payment made to any Secured Party or to any Governmental Authority in respect of the
indemnification obligations of the Borrower provided in this clause shall constitute a payment in respect of which the provisions of clause (a) and this clause shall apply. 

(e) [Reserved] 
 (f) (i) Any Secured Party that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative
Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made
without withholding or at a reduced rate of withholding. Notwithstanding anything to the contrary in the preceding sentence, the completion, execution and submission of such documentation (other than such documentation set forth in
Section 4.6(f)(ii), (iv) and (v) below) shall not be required if in the Secured Party’s reasonable judgment such completion, execution or submission would subject such Secured Party to any material
unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Secured Party. 

  
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 (ii) Without limiting the generality of Section 4.6(f)(i) hereof, each Non-U.S.
Secured Party, on or prior to the date on which such Non-U.S. Secured Party becomes a Secured Party (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent, but only for so long as such Non-U.S.
Secured Party is legally entitled to do so), shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent whichever of the following is appropriate (w) in the case of a Non-U.S. Secured Party
claiming the benefits of an income tax treaty to which the United States is a party (I) with respect to payments of interest under any Loan Document, two executed originals of IRS Form W-8BEN establishing an exemption from, or reduction of,
U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (II) with respect to any other applicable payments under any Loan Document, two executed originals of IRS Form W-8BEN establishing an exemption from, or
reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty; (x) two executed originals of Internal Revenue Service Form W-8ECI; (y) in the case of a
Non-U.S. Secured Party claiming benefits of Section 881(c) of the Code (I) a certificate to the effect that such Non-U.S. Secured Party is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code,
(B) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a controlled foreign corporation receiving interest from a related person within the meaning of
Section 881(c)(3)(C) of the Code (referred to as an “Exemption Certificate”) and (II) two duly completed executed originals of Internal Revenue Service Form W-8BEN or applicable successor form; or (z) to the extent a
Non-U.S. Secured Party is not the beneficial owner, two executed originals of IRS Form W-8IMY, accompanied by two executed originals of IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8IMY, an Exemption Certificate, IRS Form W-9, and/or such other
certification documents from each beneficial owner, as applicable; provided that, with respect to the obligation to provide an Exemption Certificate, if the Non-U.S. Secured Party is a partnership and one or more direct or indirect partners
of such Non-U.S. Secured Party are claiming the portfolio interest exemption, such Non-U.S. Secured Party may provide an Exemption Certificate on behalf of each such direct and indirect partner. 

(iii) Any Non-U.S. Secured Party shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative
Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Secured Party becomes a party under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower
or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as
may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made. 
 (iv) Any Secured Party that is not a Non-U.S. Secured Party shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Secured Party becomes a Secured Party under
this Agreement (and from time to time thereafter as prescribed by applicable law or upon the request of the Borrower or the Administrative Agent), two duly executed and properly completed originals of Internal Revenue Service Form W-9. 

  
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 (v) If a payment made to a Secured Party under any Loan Document would be subject to U.S.
federal withholding Tax imposed by FATCA if such Secured Party 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 Secured Party
shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including
as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their
obligations under FATCA and to determine that such Secured Party has complied with such Secured Party’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (v),
“FATCA” shall include any amendments made to FATCA after the date of this Agreement. 
 (vi) Each Secured Party agrees
that if any form or certification it previously delivered pursuant to this Section 4.6(f) expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the
Administrative Agent in writing of its legal inability to do so. 
 (g) The Borrower shall not be obligated to
pay any additional amounts to any Secured Party pursuant to clause (a)(i), or to indemnify any Secured Party pursuant to clause (d), in respect of withholding Taxes to the extent imposed as a result of (i) the failure of such
Secured Party to deliver to the Borrower the documentation, form or forms and/or an Exemption Certificate, required to be delivered by such Secured Party, pursuant to clause (f), (ii) the failure for any reason (except as provided below
in this Section 4.6(g)) of such Secured Party to provide the Borrower and the Administrative Agent with a form or forms and/or Exemption Certificate establishing a complete exemption from U.S. federal withholding tax (including U.S.
federal back-up withholding taxes) or the information or certifications in such form or forms and/or Exemption Certificate being untrue or inaccurate on the date delivered in any material respect, or (iii) such Secured Party that is a Lender
designating a successor lending office at which it maintains its Loans (including with respect to causing one of its foreign branches or Affiliates (or an international banking facility created by such Lender) to make or maintain any LIBO Rate Loan
as provided in Section 2.5 hereof) which has the effect of causing such Lender to become subjected to withholding Taxes in excess of those to which it was subject immediately prior to such designation; provided that, the Borrower
shall be obligated to pay additional amounts to any such Secured Party pursuant to clause (a)(i), and to indemnify any such Secured Party pursuant to clause (d), in respect of withholding Taxes to the extent that (w) any such
failure to deliver the documentation, form or forms or an Exemption Certificate or any failure of such form or forms or 

  
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Exemption Certificate to establish a complete exemption from withholding tax (including U.S. federal back-up withholding taxes) or any inaccuracy or untruth contained therein, as applicable,
resulted from a change in any applicable statute, treaty, regulation or other applicable law or any governmental or judicial interpretation of any of the foregoing occurring after the date such Secured Party becomes a party to this Agreement (or, in
the event that an assignment of a position of a Loan is made pursuant to Section 12.10.2 to a Person who is already a Secured Party under this Agreement, then, with respect to such position of the Loan, the date of such assignment),
which change rendered such Secured Party no longer legally entitled to deliver such documentation, form or forms or Exemption Certificate or otherwise ineligible for a complete exemption from withholding tax (including U.S. federal back-up
withholding taxes), or rendered the information or certifications made in such form or forms or Exemption Certificate untrue or inaccurate in a material respect, as applicable, (x) amounts with respect to such withholding Taxes were payable to
such Secured Party’s assignor immediately before the Secured Party became a party to this Agreement or acquired the applicable interest in a Loan or Commitment (except to the extent that such withholding Taxes would have been reduced or
eliminated had the assignee Secured Party complied with its obligations under this Agreement), (y) the redesignation of the Lender’s lending office was made at the written request of the Borrower or (z) the obligation to pay any
additional amounts to any such Secured Party pursuant to clause (a)(i) or to indemnify any such Secured Party pursuant to clause (d) is with respect to an Assignee Lender that becomes an Assignee Lender as a result of an
assignment made at the written request of the Borrower. 
 (h) In the event that any Secured Party receives a
refund in respect of Taxes or Other Taxes as to which it has been paid additional amounts by the Borrower pursuant to clause (a) or indemnified by the Borrower pursuant to clause (d) and such Secured Party determines in its
sole, good faith judgment that such refund is attributable to such additional amounts or indemnification, then such Secured Party shall promptly notify the Administrative Agent and the Borrower and shall within 30 Business Days remit to the Borrower
an amount as such Secured Party determines to be the proportion of the refunded amount as will leave it, after such remittance, in no better or worse position than it would have been if the Taxes or Other Taxes had not been imposed and the
corresponding additional amounts or indemnification payment not been made. No Secured Party shall be obligated to disclose information regarding its tax affairs or computations to the Borrower in connection with this clause (i) or any
other provision of this Section 4.6. 
 SECTION 4.7 Payments, Computations; Proceeds of
Collateral, etc. (a) Unless otherwise expressly provided in a Loan Document, all payments by the Borrower pursuant to each Loan Document shall be made subject to the terms, conditions and restrictions set forth in the Intercreditor
Agreement by the Borrower to the Administrative Agent for the pro rata account of the Secured Parties entitled to receive such payment. In furtherance of the foregoing, payments of principal and interest shall be payable in U.S. Dollars to the
Administrative Agent. Except as provided herein, all payments shall be made without setoff, deduction or counterclaim not later than 12:00 p.m., New York time, on the date due in same day or immediately available funds to such account as the
Administrative Agent shall specify from time to time by notice to the Borrower. Funds received after that time shall be deemed to have been received by the Administrative 

  
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Agent on the next succeeding Business Day. The Administrative Agent shall promptly remit in same day funds to each Secured Party its share, if any, of such payments received by the Administrative
Agent for the account of such Secured Party. All interest (including interest on LIBO Rate Loans) and fees shall be computed on the basis of the actual number of days (including the first day but excluding the last day) occurring during the period
for which such interest or fee is payable over a year comprised of 360 days (or, in the case of interest on an Alternate Base Rate Loan (calculated at other than the Federal Funds Rate), 365 days or, if appropriate, 366 days). Payments due on other
than a Business Day shall (except as otherwise required by clause (c) of the definition of “Interest Period”) be made on the next succeeding Business Day and such extension of time shall be included in computing interest and
fees in connection with that payment. 
 (b) All amounts received as a result of the exercise of remedies under
the Loan Documents (including from the proceeds of collateral securing the Obligations) or under applicable law shall be applied subject to the terms, conditions and restrictions set forth in the Intercreditor Agreement; provided that, after
the Discharge of First Lien Obligations, they shall be applied upon receipt to the Obligations as follows: (i) first, to the ratable payment of all Obligations owing to the Administrative Agent and the Collateral Agent, in their
respective capacities as the Administrative Agent and the Collateral Agent (including the reasonable fees and expenses of counsel to the Administrative Agent and the Collateral Agent), (ii) second, after payment in full in cash of the
amounts specified in clause (b)(i), to the ratable payment of all interest (including interest accruing after the commencement of a proceeding in bankruptcy, insolvency or similar law, whether or not permitted as a claim under such law) and
fees owing under the Loan Documents, and all costs and expenses owing to the Secured Parties pursuant to the terms of the Loan Documents, until paid in full in cash, (iii) third, after payment in full in cash of the amounts specified in
clauses (b)(i) and (b)(ii), to the ratable payment of the principal amount of the Loans then outstanding and amounts owing to Secured Parties under Rate Protection Agreements (to the extent not constituting Excluded Swap Obligations)
and Cash Management Agreements, (iv) fourth, after payment in full in cash of the amounts specified in clauses (b)(i) through (b)(iii), to the ratable payment of all other Obligations owing to the Secured Parties (to the
extent not constituting Excluded Swap Obligations), and (v) fifth, after payment in full in cash of the amounts specified in clauses (b)(i) through (b)(iv), and following the Termination Date, to each applicable Obligor or
any other Person lawfully entitled to receive such surplus. For purposes of clause (b)(iii), the “credit exposure” at any time of any Secured Party with respect to a Rate Protection Agreement to which such Secured Party is a party
shall be determined at such time in accordance with the customary methods of calculating credit exposure under similar arrangements by the counterparty to such arrangements, taking into account potential interest rate (or, if applicable, currency)
movements and the respective termination provisions and notional principal amount and term of such Rate Protection Agreement. 
 (c) The Borrower acknowledges that the Lenders have agreed to the amount of the Applicable Margin and fees payable under the Loan Documents based upon, among other things, the delivery by the Obligors
pursuant to Section 7.1.1 of accurate and actual reporting of results of operation, and that the financial covenant ratios set forth in a Compliance Certificate shall only be treated by the Secured Parties as presumptive

  
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evidence of such actual results. If the actual Leverage Ratio for any period is higher than that set forth in a Compliance Certificate for such period, then the amount of interest and fees owing
for such period shall be established by reference to the actual Leverage Ratio, and not the ratio set forth in the Compliance Certificate. Promptly, and in any event within three days, following the earlier of (i) the Borrower’s receipt of
a notice from the Administrative Agent pursuant to this clause or (ii) the Borrower’s knowledge that the Leverage Ratio for a particular period was higher than that reported in the Compliance Certificate for such period, the Borrower shall
pay to the Administrative Agent all unpaid interest and fees for such period based upon the actual Leverage Ratio. In no event shall the Lenders be required to rebate interest or fees paid by the Parent or the Borrower, and the payment of
incremental interest and fees pursuant to this clause shall not impair (and is without limitation of) the other rights and remedies of the Secured Parties under the Loan Documents. 

SECTION 4.8 Sharing of Payments. If any Secured Party shall obtain any payment or other recovery (whether
voluntary, involuntary, by application of setoff or otherwise) on account of any Loan (other than pursuant to the terms of Sections 4.3, 4.4, 4.5 or 4.6) in excess of its pro rata share of payments
obtained by all Secured Parties, such Secured Party shall purchase from the other Secured Parties such participations in Loans made by them as shall be necessary to cause such purchasing Secured Party to share the excess payment or other recovery
ratably (to the extent such other Secured Parties were entitled to receive a portion of such payment or recovery) with each of them; provided that, if all or any portion of the excess payment or other recovery is thereafter recovered from
such purchasing Secured Party, the purchase shall be rescinded and each Secured Party which has sold a participation to the purchasing Secured Party shall repay to the purchasing Secured Party the purchase price to the ratable extent of such
recovery together with an amount equal to such selling Secured Party’s ratable share (according to the proportion of (a) the amount of such selling Secured Party’s required repayment to the purchasing Secured Party to (b) total
amount so recovered from the purchasing Secured Party) of any interest or other amount paid or payable by the purchasing Secured Party in respect of the total amount so recovered. The Borrower agrees that any Secured Party purchasing a participation
from another Secured Party pursuant to this Section may, to the fullest extent permitted by law, exercise all its rights of payment (including pursuant to Section 4.9) with respect to such participation as fully as if such Secured
Party were the direct creditor of the Borrower in the amount of such participation, subject, solely with respect to Participants, to clause (d) of Section 12.10.4. 

SECTION 4.9 Setoff. Each Secured Party shall, subject to the terms, conditions and restrictions of the
Intercreditor Agreement, upon the occurrence and during the continuance of any Event of Default, have the right to appropriate and apply to the payment of the Obligations owing to it (whether or not then due), and (as security for such Obligations)
the Borrower hereby grants to each Secured Party a continuing security interest in, any and all balances, credits, deposits, accounts or moneys of the Borrower then or thereafter maintained with such Secured Party; provided that any such
appropriation and application shall be subject to the provisions of Section 4.8. Each Secured Party agrees promptly to notify the Borrower and the Administrative Agent after any such appropriation and application made by such Secured
Party; provided that the failure to give such notice shall not affect the validity of such setoff and application. The rights of each Secured Party under this Section are in addition to other rights and remedies (including other rights
of setoff under applicable law or otherwise) which such Secured Party may have. 

  
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 SECTION 4.10 Mitigation. Each Lender agrees that if it makes any
demand for payment under Sections 4.3, 4.5 or 4.6, it will use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions and so long as such efforts would not be disadvantageous to it, as
determined in its sole discretion) to designate a different lending office if in the reasonable judgment of the Lender the making of such a designation would reduce or obviate the need for the Borrower to make payments under Section 4.3,
4.5 or 4.6. 
 SECTION 4.11 Removal of Lenders. If any Lender (an “Affected
Lender”) (i) fails to consent to an election, consent, amendment, waiver or other modification to this Agreement or other Loan Document (a “Non-Consenting Lender”) that requires the consent of a greater percentage of
the Lenders than the Required Lenders and such election, consent, amendment, waiver or other modification is otherwise consented to by Lenders holding more than 50% of the Total Exposure Amount of all Lenders whose consent would be required,
(ii) makes a demand upon the Borrower for (or if the Borrower is otherwise required to pay) amounts pursuant to Section 4.3, 4.5 or 4.6, or (iii) becomes a Defaulting Lender, the Borrower may, at its sole cost and
expense, give notice (a “Replacement Notice”) in writing to the Administrative Agent and such Affected Lender of its intention to cause such Affected Lender to sell all or any portion of its Loans, Commitments and/or Notes to
another financial institution or other Person (a “Non-Affected Replacement Lender”) designated in such Replacement Notice; provided that no Replacement Notice may be given by the Borrower if (A) such replacement
conflicts with any applicable law or regulation or (B) prior to any such replacement, such Lender shall have taken any necessary action under Section 4.5 or 4.6 (if applicable) so as to eliminate the continued need for
payment of amounts owing pursuant to Section 4.5 or 4.6 and withdrawn its request for compensation under Section 4.3, 4.5 or 4.6. If the Administrative Agent shall, in the exercise of its reasonable
discretion (in each case to the extent that the Administrative Agent’s consent would be required for an assignment to such Lender under Section 12.10) and within 30 days of its receipt of such Replacement Notice, notify the Borrower
and such Affected Lender in writing that the Non-Affected Replacement Lender is reasonably satisfactory to the Administrative Agent, then such Affected Lender shall, subject to the payment of any amounts due pursuant to Section 4.4,
assign, in accordance with Section 12.10.2(d), the portion of its Commitments, Loans, Notes (if any) and other rights and obligations under this Agreement and all other Loan Documents designated in the Replacement Notice to such
Non-Affected Replacement Lender; provided that (A) such assignment shall be without recourse, representation or warranty and shall be on terms and conditions reasonably satisfactory to such Affected Lender and such Non-Affected
Replacement Lender, and (B) the purchase price paid by such Non-Affected Replacement Lender shall be in the amount of such Affected Lender’s Loans designated in the Replacement Notice, together with all accrued and unpaid interest and fees
in respect thereof, plus all other amounts (including the amounts demanded and unreimbursed under Sections 4.3, 4.5 and 4.6), owing to such Affected Lender hereunder. Upon the effective date of an assignment described above, the
Non-Affected Replacement Lender shall become a “Lender” for all 

  
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purposes under the Loan Documents. Each Lender hereby grants to the Administrative Agent an irrevocable power of attorney (which power is coupled with an interest) to execute and deliver, on
behalf of such Lender as assignor, any assignment agreement necessary to effectuate any assignment of such Lender’s interests hereunder in the circumstances contemplated by this Section. 

ARTICLE V 

CONDITIONS TO LOANS 
 SECTION 5.1 Closing Date Loans. The obligations of the Lenders to make the Loans on the Closing Date shall be subject to the prior or concurrent satisfaction of each of the conditions precedent set
forth in this Article. 
 SECTION 5.1.1 Resolutions, etc. The Administrative Agent shall have received from each Obligor,
as applicable, (i) a copy of a good standing certificate, dated a date reasonably close to the Closing Date, for each such Person and (ii) a certificate, dated as of the Closing Date with counterparts for each Lender, duly executed and
delivered by such Person’s Secretary or Assistant Secretary, managing member or general partner, as applicable, as to 
 (a) resolutions of each such Person’s Board of Directors then in full force and effect authorizing, to the extent relevant, the execution, delivery and performance of each Loan Document to be
executed by such Person and the transactions contemplated hereby and thereby; 
 (b) the incumbency and
signatures of those of its officers, managing member or general partner, as applicable, authorized to act with respect to each Loan Document to be executed by such Person; and 

(c) the full force and validity of each Organic Document of such Person and copies thereof; 

upon which certificates each Secured Party may conclusively rely until it shall have received a further certificate of the Secretary, Assistant
Secretary, managing member or general partner, as applicable, of any such Person canceling or amending the prior certificate of such Person. 
 SECTION 5.1.2 Closing Date Certificate. The Administrative Agent shall have received the Closing Date Certificate, dated as of the Closing Date and duly executed and delivered by an Authorized
Officer of the Parent, in which certificate the Parent shall agree and acknowledge that the statements made therein shall be deemed to be true and correct representations and warranties of the Parent as of such date, and, at the time each such
certificate is delivered, such statements shall in fact be true and correct. All documents and agreements required to be appended to the Closing Date Certificate shall be in form and substance reasonably satisfactory to the Administrative Agent and
Required Lenders, shall have been executed and delivered by the requisite parties, and shall be in full force and effect. 

SECTION 5.1.3 Payment of Outstanding Indebtedness, etc. All Indebtedness identified in Item 7.2.2(b) of the Disclosure
Schedule (including, without limitation, all Indebtedness under the Existing Credit Agreements), together with all interest, all prepayment premiums and other amounts due and payable with respect thereto, shall have been paid in full from the
proceeds of 

  
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the Loans and the commitments in respect of such Indebtedness shall have been terminated, and all Liens securing payment of any such Indebtedness shall have been released; provided that,
to the extent the only requirement to release any such Liens is the filing of the termination statements, discharge statements or other instruments which have been delivered and are in form and substance suitable for filing, in each case pursuant to
clause (c) of Section 5.1.9, the release of such Liens shall not be a condition precedent to the Closing Date Loans so long as the Administrative Agent have received such termination statements, discharge statements or other
instruments. 
 SECTION 5.1.4 Delivery of Notes. The Administrative Agent shall have received, for the account of each
Lender that has requested a Note, such Lender’s Notes duly executed and delivered by an Authorized Officer of the Borrower. 
 SECTION 5.1.5 Compliance Certificate. The Administrative Agent shall have received an initial Compliance Certificate, in form reasonably satisfactory to the Administrative Agent and Required
Lenders, dated the date of the Loans provided on the Closing Date and duly executed and delivered by the chief financial or accounting Authorized Officer of the Parent. 
 SECTION 5.1.6 Solvency, etc. The Administrative Agent shall have received, with counterparts for each Lender, a solvency certificate duly executed and delivered by the chief financial or accounting
Authorized Officer of the Parent, dated as of the Closing Date, in form and substance satisfactory to the Administrative Agent and Required Lenders, attesting to the solvency of the Parent and each Guarantor, taken as a whole, immediately before and
immediately after giving effect to the Loans provided on the Closing Date. 
 SECTION 5.1.7 Perfection Certificate. The
Administrative Agent shall have received a completed perfection certificate from the Parent (on behalf of itself, and the other Obligors) in form and substance reasonably satisfactory to the Administrative Agent and Required Lenders and duly
executed by the chief financial or accounting Authorized Officer of the Parent. 
 SECTION 5.1.8 Subsidiary Guaranty. The
Administrative Agent shall have received, with counterparts for each Lender, the Subsidiary Guaranties, each dated as of the date hereof, duly executed and delivered by an Authorized Officer of each Subsidiary of the Borrower, other than CFC
Subsidiaries to the extent exempted pursuant to Section 7.1.8 and the Immaterial Subsidiaries. 
 SECTION 5.1.9
Security Agreements. The Administrative Agent shall have received, with counterparts for each Lender, executed counterparts of the U.S. Pledge and Security Agreement and the Canadian Pledge and Security Agreement, each dated as of the date
hereof, duly executed and delivered by each applicable Obligor, together with 
 (a) certificates (in the case of
Capital Securities that are certificated securities (as defined in the UCC)) evidencing all of the issued and outstanding Capital Securities owned by each Obligor in its U.S. Subsidiaries and Foreign Subsidiaries directly owned by each Obligor,
which certificates in each case shall be accompanied by undated instruments of transfer duly executed in blank, or, for any Capital Securities that are uncertificated securities (as defined in the UCC), confirmation and evidence satisfactory to the
Administrative Agent and Required Lenders that the security interest therein has 

  
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been transferred to and perfected by the Collateral Agent for the benefit of the Secured Parties in accordance with Articles 8 and 9 of the UCC and all laws otherwise applicable to the perfection
of the pledge of such Capital Securities; provided, however, that (x) no Capital Securities of any CFC Subsidiary (other than a First-Tier CFC Subsidiary) shall be required to be delivered pursuant to this
Section 5.1.9 and (y) any certificate evidencing the issued and outstanding Capital Securities of any First-Tier CFC Subsidiary shall be limited to (i) 65% of the issued and outstanding Voting Securities and (ii) 100% of
the issued and outstanding non-voting Capital Securities, in each case of such First-Tier CFC Subsidiary (provided that, the foregoing may be delivered to the First Lien Collateral Agent subject to the terms, conditions and restrictions set
forth in the Intercreditor Agreement and such delivery shall be deemed to satisfy this Subsection (a) of Section 5.1.9); and provided further that notwithstanding the foregoing, no actions (such as delivery of
share certificates) shall be required to perfect the lien on stock of Immaterial Subsidiaries beyond UCC and PPSA filings against the applicable parent. 
 (b) Filing Statements suitable in form for naming the Parent, the Borrower and each Subsidiary Guarantor, as applicable, as a debtor and the Collateral Agent as the secured party, or other similar
instruments or documents to be filed under the UCC or PPSA of all jurisdictions as may be necessary or, in the opinion of the Required Lenders, desirable to perfect the first priority security interests of the Collateral Agent pursuant to such
Security Agreement; 
 (c) UCC Form UCC-3 termination statements, PPSA discharge statements or other instruments,
in each case in form and substance suitable for filing, necessary to render ineffective and release all Liens and other rights of any Person in any collateral (i) described in any security agreement previously granted by the Parent or any of
its Subsidiaries (other than Liens permitted by Section 7.2.3(c) and liens in favor of landlords permitted under Section 7.2.3(f)), or (ii) securing any of the Indebtedness identified in Item 7.2.2(b) of the
Disclosure Schedule, together with such other UCC Form UCC-3 termination statements, PPSA discharge statements or other instruments as the Administrative Agent or Required Lenders may reasonably request from the Parent or any of its Subsidiaries;
and 
 (d) certified copies of UCC Requests for Information or Copies (Form UCC-11) or similar PPSA instruments,
or a similar search report certified by a party acceptable to the Required Lenders, dated a date reasonably near to the Closing Date, listing all effective financing statements which name any Obligor (under its present name and any previous names)
as the debtor, together with copies of such financing statements (none of which shall, except with respect to Liens permitted by Section 7.2.3), evidence a Lien on any collateral described in any Loan Document). 

SECTION 5.1.10 Intellectual Property Security Agreements. The Administrative Agent shall have received a Patent Security
Agreement, a Copyright Security Agreement and a Trademark Security Agreement, as applicable, each dated as of the Closing Date, duly executed and delivered by each Obligor that, pursuant to a Security Agreement, is required to provide such
intellectual property security agreements to the Administrative Agent. 

  
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 SECTION 5.1.11 Filing Agent, etc. All Uniform Commercial Code and PPSA financing
statements or other similar financing statements and Uniform Commercial Code (Form UCC-3) termination statements and PPSA discharge statements required pursuant to the Loan Documents (collectively, the “Filing Statements”) and as
described in clauses (a), (b) and (c) of Section 5.1.9 shall have been delivered (including by way of electronic mail) to Corporation Service Company or another similar filing service company in the U.S. or
Canada acceptable to the Required Lenders (the “Filing Agent”). The Filing Agent shall have acknowledged in a writing satisfactory to the Administrative Agent and its counsel (i) the Filing Agent’s receipt (including by
way of electronic mail) of all Filing Statements, (ii) that the Filing Statements have either been submitted for filing in the appropriate filing offices or will be submitted for filing in the appropriate offices within ten days following the
Closing Date and (iii) that the Filing Agent will notify the Administrative Agent and its counsel of the results of such submissions within 30 days following the Closing Date. 

SECTION 5.1.12 Insurance. The Administrative Agent shall have received, with copies for each Lender, certified copies of the
insurance policies (or binders in respect thereof), from one or more insurance companies satisfactory to the Required Lenders, evidencing coverage required to be maintained pursuant to each Loan Document, together with endorsements naming the
Collateral Agent for the benefit of the Secured Parties, as an additional insured or loss payee, as applicable. 
 SECTION
5.1.13 Material Adverse Effect. There shall not have occurred since April 30, 2012 any event or condition that has had or could be reasonably expected, either individually or in the aggregate, to have a Material Adverse Effect.

 SECTION 5.1.14 Intercreditor Agreement. The Administrative Agent shall have received the Intercreditor Agreement, duly
executed and delivered by each party thereto. 
 SECTION 5.1.15 Opinions of Counsel. The Administrative Agent shall have
received opinions, dated the Closing Date and addressed to the Administrative Agent, the Collateral Agent and all Lenders, from 
 (a) Osler, Hoskin & Harcourt LLP, New York counsel to any Obligors which are organized under the laws of the States of Delaware or New York, in form and substance satisfactory to the
Administrative Agent and Required Lenders; 
 (b) Osler, Hoskin & Harcourt LLP, Canadian counsel to
Mitel Networks Corporation, in form and substance satisfactory to the Administrative Agent and Required Lenders; and 
 (c) to the extent qualified in the applicable jurisdiction, in-house counsel to the Obligors with respect to corporate matters, in form and substance satisfactory to the Administrative Agent and Required
Lenders. 
 SECTION 5.1.16 PATRIOT Act Disclosures. The Arranger, the Administrative Agent and each Lender shall have
received all Patriot Act Disclosures requested by them with respect to the Borrower prior to execution of this Agreement. 

  
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 SECTION 5.1.17 Process Agent. The Administrative Agent shall have received a written
acceptance by the Process Agent of its appointment under Section 12.13 hereof and under each similar provision in each other Loan Document. 
 SECTION 5.1.18 Closing Fees, Expenses, etc. The Administrative Agent shall have received or, contemporaneously with the initial Borrowing, without duplication, shall receive all fees, costs and
expenses due and payable pursuant to Sections 3.3 and 12.3. Without duplication, the Arranger shall have received or (contemporaneously with the initial Borrowing) shall receive all fees, costs and expenses payable by the Borrower
under the Commitment Letter. 
 SECTION 5.2 All Loans. The obligation of each Lender to make any Loan
shall be subject to the satisfaction of each of the conditions precedent set forth below. 
 SECTION 5.2.1 Compliance with
Warranties, No Default, etc. Both before and after giving effect to any Loan the following statements shall be true and correct: 
 (a) the representations and warranties set forth in each Loan Document shall be true and correct in all material respects with the same effect as if then made (unless stated to relate solely to an earlier
date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date), in each case other than representations and warranties that are subject to a Material Adverse Effect or a
materiality qualifier, in which case such representations and warranties shall be (or shall have been) true and correct; and 
 (b) no Default shall have then occurred and be continuing. 
 SECTION 5.2.2 Loan
Request, etc. The Administrative Agent shall have received a Borrowing Request if Loans are being requested. The delivery of a Borrowing Request and the acceptance by the applicable Borrower of the proceeds of such Loan shall constitute a
representation and warranty by the Parent and the Borrower that on the date of such Loan (both immediately before and after giving effect to such Loan and the application of the proceeds thereof) the statements made in Section 5.2.1 are
true and correct. 
 SECTION 5.2.3 Satisfactory Legal Form. All documents executed or submitted pursuant hereto by or on
behalf of any Obligor shall be reasonably satisfactory in form and substance to the Administrative Agent, the Required Lenders, and its counsel. 
 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES 

On the date of each Loan, the Parent and the Borrower represents and warrants to each Lender as set forth in this Article. 

SECTION 6.1 Organization, etc. Each Obligor is validly organized and existing and in good standing under the laws
of the state or jurisdiction of its incorporation or organization, is duly qualified to do business and is in good standing as a foreign entity in each jurisdiction where the nature of its business requires such qualification, and has full power and
authority and holds all requisite governmental licenses, permits and other approvals to enter into and perform its Obligations under each Loan Document to which it is a party, to own and hold under lease its property and to conduct its business
substantially as currently conducted by it. 

  
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 SECTION 6.2 Due Authorization, Non-Contravention, etc. The execution,
delivery and performance by each Obligor of each Loan Document executed or to be executed by it are in each case within such Person’s powers, have been duly authorized by all necessary action, and do not 

(a) contravene any (i) Obligor’s Organic Documents, (ii) court decree or order binding on or affecting any
Obligor or (iii) law or governmental regulation binding on or affecting any Obligor; or 
 (b) result in
(i) or require the creation or imposition of, any Lien on any Obligor’s properties (except as permitted by this Agreement) or (ii) a default under any material contractual restriction binding on or affecting any Obligor. 

SECTION 6.3 Government Approval, Regulation, etc. No authorization or approval or other action by, and no notice
to or filing with, any Governmental Authority or other Person (other than (i) those that have been, or on the Closing Date will be, duly obtained or made and which are, or on the Closing Date will be, in full force and effect and (ii) the
filing of the U.K. Security Agreement with the Companies House, U.K. within 21 days after the execution and delivery of such agreement) is required for the due execution, delivery or performance by any Obligor of any Loan Document to which it is a
party in each case by the parties thereto. Neither the Parent nor any of its Subsidiaries is an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

SECTION 6.4 Validity, etc. Each Loan Document to which any Obligor is a party constitutes the legal, valid and
binding obligations of such Obligor, enforceable against such Obligor in accordance with their respective terms (except, in any case, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors’ rights generally and by principles of equity). 
 SECTION 6.5 Financial
Information. The most recently publicly available consolidated annual financial statements of the Parent and its Subsidiaries have been prepared in accordance with GAAP consistently applied, and present fairly in all material respects the
consolidated financial condition of the Persons covered thereby as at the dates thereof and the results of their operations for the periods then ended. All balance sheets, all statements of income and of cash flow and all other financial information
of each of the Parent and its Subsidiaries furnished pursuant to Section 7.1.1 have been and will for periods following the Closing Date be prepared in accordance with GAAP consistently applied, and do or will present fairly in all
material respects the consolidated financial condition of the Persons covered thereby as at the dates thereof and the results of their operations for the periods then ended. 

SECTION 6.6 No Material Adverse Change. There has not occurred since April 30, 2012 any event or condition
that has had or could be reasonably expected, either individually or in the aggregate, to have a Material Adverse Effect 

  
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 SECTION 6.7 Litigation, Labor Controversies, etc. There is no pending
or, to the knowledge of the Parent or any of its Subsidiaries, threatened, litigation, action, proceeding or labor controversy: 
 (a) except as disclosed in Item 6.7 of the Disclosure Schedule, affecting the Parent, any of its Subsidiaries, or any of their respective properties, businesses, assets or revenues, which
could reasonably be expected to have a Material Adverse Effect; or 
 (b) which purports to affect the legality,
validity or enforceability of any Loan Document. 
 SECTION 6.8 Subsidiaries; Equity Interests; Obligors.
The Parent has no Subsidiaries, except those Subsidiaries which are identified in Item 6.8(a) of the Disclosure Schedule, or which are permitted to have been organized or acquired in accordance with Sections 7.2.5 or
7.2.10. The Parent has no equity investments in any other corporation or entity other than those specifically identified in Item 6.8(b) of the Disclosure Schedule, or which are permitted to have been organized or acquired in
accordance with Sections 7.2.5. Set forth in Item 6.8(c) of the Disclosure Schedule is a complete and accurate list of all Obligors, showing as of the Closing Date (as to each Obligor) the jurisdiction of its incorporation, the
address of its principal place of business and chief executive office and its U.S. taxpayer identification number or, in the case of any non-U.S. Obligor that does not have a U.S. taxpayer identification number, its unique identification number
issued to it by the jurisdiction of its incorporation or formation. 
 SECTION 6.9 Ownership of
Properties. The Parent and each of its Subsidiaries own (i) in the case of owned real property, good and marketable fee title to, and (ii) in the case of owned personal property, good and valid title to, or, in the case of leased real
or personal property, valid and enforceable leasehold interests (as the case may be) in, all of its properties and assets, tangible and intangible, of any nature whatsoever, free and clear in each case of all Liens or claims, except for Liens
permitted pursuant to Section 7.2.3. 
 SECTION 6.10 Taxes. All material Tax returns and
reports required by law to have been filed by the Parent and its Subsidiaries have been duly filed, and all material federal, provincial and state income Taxes and other material Taxes, assessments and other governmental charges or levies upon the
Parent and its Subsidiaries and any of their respective properties, income, profits and assets which are due and payable have been paid, (except any such Taxes which are being diligently contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP shall have been set aside on its books). 
 SECTION 6.11
Pension and Welfare Plans. 
 (a) Neither the Parent nor any member of the Controlled Group has incurred
any liability with respect to a U.S. Pension Plan under Title IV of ERISA other than liability to the PBGC for premiums under Section 4007 of ERISA, all of which have been paid, and no contribution failure has occurred with respect to any U.S.
Pension Plan sufficient to give rise to a Lien under Section 303(k) of ERISA. No conditions exist or 

  
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events or transactions have occurred or are reasonably expected to occur with respect to any U.S. Pension Plan which might, in the aggregate, result in the incurrence by the Parent or any member
of the Controlled Group of any liability, fine or penalty which would have a Material Adverse Effect. Except as disclosed in Item 6.11(a) of the Disclosure Schedule, neither the Parent nor any member of the Controlled Group has any
material contingent liability with respect to any post-retirement medical or life insurance benefit under a U.S. Welfare Plan, other than liability for continuation coverage described in Part 6 of Title I of ERISA. No reportable event, within the
meaning of Section 4043 of ERISA, has occurred or is reasonably expected to occur with respect to any U.S. Pension Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC. Neither the Borrower nor any
member of the Controlled Group has filed or reasonably expects to file an application for a minimum funding waiver with respect to a U.S. Pension Plan. There has been no cessation of operations at a facility of the Parent or a member of the
Controlled Group in the circumstances described in Section 4062(e) of ERISA which would result in any material liability. There has been no determination that any U.S. Pension Plan is in “at risk” status (within the meaning of
Section 303 of ERISA). Neither the Parent nor any member of the Controlled Group has received notification from the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization (within the meaning of Section 4241 of
ERISA), insolvent (within the meaning of Section 4245 of ERISA or has been determined to be in “endangered or “critical” status within the meaning of Section 432 of the Code or Section 305 of ERISA. Neither the Parent
nor any member of the Controlled Group 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 Section 4201 or
4243 of ERISA with respect to a Multiemployer Plan which could reasonably be expected to have a Material Adverse Effect. 
 (b) No steps have been taken to terminate any Canadian Pension Plan, and no contribution failure has occurred with respect to any Canadian Pension Plan. To the knowledge of the Parent and any Canadian
Subsidiary, no condition exists or event or transaction has occurred with respect to any Canadian Pension Plan which might result in the incurrence by the Parent or any of its Subsidiaries of any material liability, fine or penalty. Except as
disclosed in Item 6.11(b) of the Disclosure Schedule, neither Parent nor any of its Subsidiaries has any contingent liability with respect to any benefit under a Canadian Pension Plan or Canadian Welfare Plan which could reasonably be
expected to have a Material Adverse Effect. 
 SECTION 6.12 Environmental Warranties. Except as set forth
in Item 6.12 of the Disclosure Schedule: 
 (a) all facilities and property (including underlying
groundwater) owned, operated or leased by the Parent or any of its Subsidiaries have been, and continue to be, owned, operated or leased by the Parent and its Subsidiaries in material compliance with all Environmental Laws; 

(b) there have been no past, and there are no pending or threatened (i) claims, complaints, notices or requests for
information received by the Parent or any of its Subsidiaries with respect to any alleged violation of any Environmental Law, or (ii) complaints, notices or inquiries to the Parent or any of its Subsidiaries regarding potential liability under
any Environmental Law or relating in any way to Hazardous Material; 

  
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 (c) there have been no Releases of Hazardous Materials at, on or under any
property now or previously owned, operated or leased by the Parent or any of its Subsidiaries that have, or could reasonably be expected to result in a material liability; 

(d) the Parent and its Subsidiaries have been issued and are in material compliance with all permits, certificates,
approvals, licenses and other authorizations relating to environmental matters; 
 (e) no property now or
previously owned, operated or leased by the Parent or any of its Subsidiaries is listed or proposed for listing (with respect to owned property only) on the National Priorities List pursuant to CERCLA, on the CERCLIS or on any similar list of sites
requiring investigation or clean-up; 
 (f) there are no underground storage tanks, active or abandoned,
including petroleum storage tanks, on or under any property now or previously owned, operated or leased by the Parent or any of its Subsidiaries that, singly or in the aggregate, have, or could reasonably be expected to have a Material Adverse
Effect; 
 (g) neither the Parent nor any of its Subsidiaries has directly transported or directly arranged for
the transportation of any Hazardous Material to any location which is listed or proposed for listing on the National Priorities List pursuant to CERCLA, on the CERCLIS or on any similar state list or which is the subject of federal, state or local
enforcement actions or other investigations which may lead to material claims against the Parent or such Subsidiary for any remedial work, damage to natural resources or personal injury, including claims under CERCLA; 

(h) there are no polychlorinated biphenyls or friable asbestos present at any property now or previously owned, operated
or leased by the Parent or any of its Subsidiaries that, singly or in the aggregate, have, or could reasonably be expected to have a Material Adverse Effect; and 

(i) no conditions exist at, on or under any property now or previously owned, operated or leased by the Parent or any of
its Subsidiaries which, with the passage of time, or the giving of notice or both, could be reasonably expected to give rise to material liability under any Environmental Law. 

SECTION 6.13 Accuracy of Information. None of the factual information heretofore or contemporaneously furnished in
writing to any Lender by or on behalf of any Obligor in connection with any Loan Document or any transaction contemplated hereby contains any untrue statement of a material fact, or omits to state any material fact necessary to make any information
not misleading, and no other written factual information hereafter furnished in writing in connection with any Loan Document by or on behalf of any Obligor to any Lender will contain any untrue statement of a material fact or will omit to state any
material fact necessary to make any information not misleading on the date as of which such information is dated or certified. 

  
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 SECTION 6.14 Regulations U and X. No Obligor is engaged in the
business of extending credit for the purpose of buying or carrying margin stock, and no proceeds of any Loans will be used to purchase or carry margin stock or otherwise for a purpose which violates, or would be inconsistent with, F.R.S. Board
Regulation U or Regulation X. Terms for which meanings are provided in F.R.S. Board Regulation U or Regulation X or any regulations substituted therefor, as from time to time in effect, are used in this Section with such meanings. 

SECTION 6.15 Insurance. The Obligors are insured by financially sound and reputable insurers and such insurance is
in such amounts and covering such risks and liabilities (and with such deductibles, retentions and exclusions) as are in accordance with normal and prudent industry practice. 

SECTION 6.16 Solvency. The Borrower and the Guarantors, taken as a whole, on a consolidated basis, both before and
after giving effect to any Loan, are Solvent. 
 SECTION 6.17 Security Agreements. Each of the Security
Agreements is effective (and with respect to the deposit accounts in connection with the deposit account control agreements set forth in Item 7.1.11 of the Disclosure Schedule, will be effective upon execution and delivery of such
deposit account control agreements) to create in favor of the Collateral Agent for the benefit (as described herein) of the applicable Secured Parties as security for the Obligations described therein, a legal, valid, binding and enforceable
security interest in the collateral described therein and proceeds thereof. The Lien created by the Security Agreements constitutes (and, in the case of the U.K. Security Agreement will, subject to filing the U.K. Security Agreement with Companies
House, U.K. within 21 days after the execution and delivery of such agreement, constitute) a fully perfected Lien on, and security interest in, all right, title and interest of the applicable Obligor in the collateral described therein, as security
for the Obligations described therein, in each case prior and superior to the rights of any other person except with respect to Liens that are permitted by Section 7.2.3 and except to the extent set forth in the Intercreditor Agreement.

 SECTION 6.18 Intellectual Property. The Parent and each of its Subsidiaries owns, or, to the best of
their knowledge, possess the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other intellectual property rights (collectively, “IP Rights”) that are
reasonably necessary for the operation of their respective businesses. To the best knowledge of the Parent, the operation of its businesses does not conflict with, infringe, misappropriate, dilute, misuse or otherwise violate any of the rights of
any third party which could result in a material liability to any Obligor or any Subsidiary of a Parent. No claim or litigation regarding any of the foregoing is pending or, to the best knowledge of the Parent, threatened, which, either individually
or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
 SECTION 6.19 Issuance
of Subordinated Debt; Status of Obligations as Senior Indebtedness, etc. The Parent and each of its Subsidiaries has the power and authority to incur the Subordinated Debt as provided for under any Subordinated Debt Documents applicable to such
Subordinated Debt. To the extent issued, each such issuing Person has 

  
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issued, pursuant to due authorization, the Subordinated Debt under the applicable Subordinated Debt Documents, and such Subordinated Debt Documents constitute the legal, valid and binding
obligations of such issuing Person enforceable against such Person in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws effecting creditors’ rights
generally and by principles of equity). The subordination provisions of the Subordinated Debt contained in the Subordinated Debt Documents are enforceable against the holders of the Subordinated Debt by the holders of any “Senior
Indebtedness” or similar term referring to the Obligations in the Subordinated Debt Documents. All Obligations, including those to pay principal of and interest (including post-petition interest, whether or not allowed as a claim under
bankruptcy or similar laws) on the Loans, and fees and expenses in connection therewith, constitute “Senior Indebtedness” or similar term referring to the Obligations as provided in the Subordinated Debt Documents and all such Obligations
are entitled to the benefits of the subordination created by the Subordinated Debt Documents. The Parent and each of its Subsidiaries acknowledges that the Administrative Agent and each Lender is entering into this Agreement and is extending its
Commitments in reliance upon the subordination provisions to be set forth in any Subordinated Debt Documents. 

SECTION 6.20 Sanctions, Etc. 
 SECTION 6.20.1 The Parent represents that neither it nor any of its Subsidiaries nor, to the knowledge of the Parent or the Borrower, any director, officer, employee, agent, affiliate or representative
thereof is an individual or entity (a “Covered Person”) currently the subject of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of Treasury’s Office of
Foreign Assets Control, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”), nor is the Parent or any of its Subsidiaries located,
organized or resident in a country or territory that is the subject of Sanctions. 
 SECTION 6.20.2 The Borrower represents and
covenants that it will not, directly or indirectly, use the proceeds of the transaction, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Covered Person, to fund any activities of or
business with any Covered Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by any Covered Person (including any Covered Person
participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions. 
 SECTION 6.20.3
Quebec Based Collateral. As of the Closing Date, the fair market value of the property and assets (real and personal) of the Parent and its Subsidiaries located in Quebec (exclusive of the value of the Capital Securities of the Obligors), as
determined in good faith by the Parent, does not exceed $250,000. 
 SECTION 6.20.4 Casualty, Etc. Neither the businesses
nor the properties of any Obligor or any Subsidiary of the Parent are affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty
(whether or not covered by insurance) that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect 

  
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 ARTICLE VII 
 COVENANTS 
 SECTION 7.1 Affirmative Covenants. The Parent
agrees with each Lender and the Administrative Agent that until the Termination Date has occurred, the Parent will, and will cause its Subsidiaries to, perform or cause to be performed the obligations set forth below. 

SECTION 7.1.1 Financial Information, Reports, Notices, etc. The Parent will furnish each Lender and the Administrative Agent
copies of the following financial statements, reports, notices and information:  
 (a) within 45 days
after the end of each of the first three Fiscal Quarters of each Fiscal Year, an unaudited consolidated balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal Quarter and consolidated statements of income and cash flow of the
Parent and its Subsidiaries for such Fiscal Quarter and for the period commencing at the end of the previous Fiscal Year and ending with the end of such Fiscal Quarter, and including (in each case), in comparative form the figures for the
corresponding Fiscal Quarter in, and year to date portion of, the immediately preceding Fiscal Year, certified as complete and correct by the chief financial or accounting Authorized Officer of the Parent (subject to normal year-end audit
adjustments); 
 (b) within 90 days after the end of each Fiscal Year, (i) a copy of the consolidated
balance sheet of the Parent and its Subsidiaries, and the related consolidated statements of income and cash flow of the Parent and its Subsidiaries for such Fiscal Year, setting forth in comparative form the figures for the immediately preceding
Fiscal Year, audited (without any Impermissible Qualification) by independent public accountants acceptable to the Required Lenders stating that, in performing the examination necessary to deliver the audited consolidated financial statements of the
Parent, no knowledge was obtained of any Event of Default (which certificate may be limited to accounting matters and disclaim responsibility for legal interpretation) and (ii) a management’s discussion and analysis of the financial
condition and results of operations for such Fiscal Year, as compared to the previous Fiscal Year; 
 (c)
concurrently with the delivery of the financial information pursuant to clauses (a) and (b), a Compliance Certificate, executed by the chief financial or accounting Authorized Officer of the Parent, (i) setting forth the
calculations for the Leverage Ratio (including with respect to Section 7.2.4) and stating that no Default has occurred and is continuing (or, if a Default has occurred, specifying the details of such Default and the action that the
applicable Obligor has taken or proposes to take with respect thereto), (ii) stating that no Subsidiary has been formed or acquired since the delivery of the last Compliance Certificate (or, if a Material Subsidiary has been formed or acquired
since the delivery of the last Compliance Certificate, a statement that such Material Subsidiary has complied with Section 7.1.8) and (iii) in the case of a Compliance Certificate delivered concurrently with the financial
information pursuant to clause (b), a calculation of Excess Cash Flow; 

  
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 (d) as soon as possible and in any event within three Business Days after
any Obligor obtains knowledge of the occurrence of a Default, a statement of an Authorized Officer of the Parent setting forth details of such Default and the action which such Obligor has taken and proposes to take with respect thereto; 

(e) as soon as possible and in any event within three days after any Obligor obtains knowledge of (i) the occurrence
of any event which could reasonably be expected to have a Material Adverse Effect, (ii) the occurrence of any material adverse development with respect to any litigation, action, proceeding or labor controversy described in Item 6.7
of the Disclosure Schedule or (iii) the commencement of any litigation, action, proceeding or labor controversy of the type and materiality described in Section 6.7, notice thereof and, to the extent the Administrative Agent
requests, copies of all documentation relating thereto; 
 (f) promptly after the sending or filing thereof,
copies of all reports, notices, prospectuses and registration statements which any Obligor files with the SEC or any national securities exchange; 
 (g) promptly upon becoming aware of (i) the institution of any steps by the PBGC or Canadian authorities to terminate any (A) U.S. Pension Plan or the filing of a Notice of Intent to Terminate
(or the successor notice thereto) with respect to any U.S. Pension Plan by the Borrower or any member of its Controlled Group or (B) Canadian Pension Plan, (ii) the failure to make a required contribution to any U.S. Pension Plan or
Canadian Pension Plan if such failure is sufficient to give rise to a Lien under Section 303(k) of ERISA or any applicable pension benefits legislation in Canada, (iii) the taking of any action with respect to a U.S. Pension Plan or
Canadian Pension Plan which is likely to result in the requirement that the Parent or any member of the Controlled Group furnish a bond or other security to the PBGC or such U.S. Pension Plan or Canadian Pension Plan, (iv) the occurrence of a
reportable event, within the meaning of Section 4043 of ERISA with respect to any U.S. Pension Plan, unless the 30-day notice requirement with respect to such event has been waived by the PBGC or (v) the occurrence of any event with
respect to any U.S. Pension Plan, Canadian Pension Plan or Multiemployer Plan which, in the aggregate, could result in a Material Adverse Effect, notice thereof and copies of all documentation relating thereto; 

(h) (i) at the time of each prepayment required under Section 3.1.1, a certificate signed by an Authorized
Officer of the Parent setting forth in reasonable detail the calculation of the amount of such prepayment and (ii) to the extent practicable, at least three days’ prior written notice of such prepayment specifying the principal amount of
Loans to be prepaid; 
 (i) promptly upon receipt thereof, copies of all “management letters” submitted
to any Obligor by the independent public accountants referred to in clause (b) in connection with each audit made by such accountants; 
 (j) the annual budget within 30 days of such annual budget being approved by the Parent’s Board of Directors (but in any event not later than 75 days after the end of each Fiscal Year); 

  
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 (k) Promptly following the mailing or receipt of any material notice or
material report delivered under the terms of any First Lien Loan Document (where a similar notice or report was not already delivered to the Administrative Agent), copies of such notice or report; 

(l) promptly and in any event within five Business Days following a reasonable request by any Lender made through the
Administrative Agent, all documentation and other information such Lender reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including
the PATRIOT Act; and 
 (m) such other financial and other information as any Lender through the Administrative
Agent may from time to time reasonably request (including information and reports in such detail as the Administrative Agent may request with respect to the terms of and information provided pursuant to the Compliance Certificate). 

(n) The Parent hereby acknowledges that (a) the Administrative Agent may, but shall not be obligated to, make
available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on Debt Domain, IntraLinks, Syndtrak or another similar
electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower or 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. The Parent hereby agrees that (w) all Borrower Materials
that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking
Borrower Materials “PUBLIC,” the Parent shall be deemed to have authorized the Administrative Agent and the Lenders to treat the Borrower Materials as not containing any material non-public information with respect to the Borrower or its
securities for purposes of United States Federal and state securities laws (provided, however, that to the extent the Borrower Materials constitute Information, they shall be treated as set forth in Section 12.19);
(y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information”; and (z) the Administrative Agent and the Arranger shall be entitled
to treat the Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information”. For certainty, any budgets provided in accordance with this
Agreement shall not be PUBLIC documents. 
 SECTION 7.1.2 Maintenance of Existence; Compliance with Contracts, Laws, etc.
The Parent will, and will cause each of its Subsidiaries to, preserve and maintain their legal existence (except as otherwise permitted by Section 7.2.10) rights (charter and statutory), franchises, permits, licenses and approval except
for such rights, franchises, permits, licenses and approvals as the Parent may reasonably determine in good faith are no longer necessary or desirable for the conduct of the business of the Parent and its Subsidiaries), perform in all material
respects their obligations under leases, documents related thereto and other material agreements to which the Parent or a Subsidiary is a party, and comply in all material respects with all applicable laws,

  
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rules, regulations and orders, including the payment (before the same become delinquent) of all Taxes, imposed upon the Parent or its Subsidiaries or upon their property except to the extent
being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set aside on the books of the Parent or its Subsidiaries, as applicable. 

SECTION 7.1.3 Maintenance of Properties. The Parent will, and will cause each of its Material Subsidiaries to, maintain, preserve,
protect and keep its and their respective properties in good repair, working order and condition (ordinary wear and tear excepted), and make necessary repairs, renewals and replacements so that the business carried on by the Parent and its
Subsidiaries may be properly conducted at all times, unless the Parent or such Subsidiary determines in good faith that the continued maintenance of such property is no longer economically desirable, necessary or useful to the business of the Parent
or any of its Subsidiaries or the Disposition of such property is otherwise permitted by Sections 7.2.10 or 7.2.11. 
 SECTION 7.1.4 Insurance. The Parent will, and will cause each of its Subsidiaries to maintain: 
 (a) insurance on its property with financially sound and reputable insurance companies against loss and damage in at least the amounts (and with only those deductibles) customarily maintained, and against
such risks as are typically insured against in the same general area, by Persons of comparable size engaged in the same or similar business as the Parent and its Subsidiaries; and 

(b) all worker’s compensation, employer’s liability insurance or similar insurance as may be required under the
laws of any state or jurisdiction in which it may be engaged in business. 
 Without limiting the foregoing, all insurance
policies required pursuant to this Section shall (i) name the Collateral Agent on behalf of the Secured Parties as mortgagee (in the case of property insurance) or additional insured (in the case of liability insurance), as applicable, and
provide that no cancellation or modification of the policies will be made without thirty days’ prior written notice to the Administrative Agent and (ii) be in addition to any requirements to maintain specific types of insurance contained
in the other Loan Documents. 
 SECTION 7.1.5 Books and Records; Quarterly Meetings. 

(a) The Parent will, and will cause each of its Subsidiaries to, keep books and records in accordance with GAAP (or, in
the case of the Parent and the Foreign Subsidiaries, GAAP or generally accepted accounting principles applicable in such Person’s jurisdiction) which accurately reflect all of its business affairs and transactions and permit each Lender or any
of their respective representatives, at reasonable times and intervals (but, so long as no Default has occurred and is continuing, not to exceed two visits in any Fiscal Year) upon reasonable notice (which, so long as no Default has occurred and is
continuing, shall be no less than 48 hours) to the Parent, to visit each Obligor’s offices, to discuss such Obligor’s financial matters with its officers and employees, and its independent public accountants (and the Parent hereby
authorizes such 

  
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independent public accountant to discuss each Obligor’s financial matters with each Lender or their representatives when any representative of such Obligor is present; provided that,
if a representative of such Obligor is not made available after the required notice has been given, no representative shall be required to be present) and to examine (and photocopy extracts from) any of its books and records. The Parent shall pay
any fees of such independent public accountant incurred in connection with any Secured Party’s exercise of its rights pursuant to this Section. 
 (b) The Administrative Agent and the Lenders shall be afforded the right to participate in the Parent’s quarterly conference calls with its investors; provided that if such call shall not have
occurred within 45 days after the close of any of the first three Fiscal Quarters of any Fiscal Year, or within 90 days after the close of any Fiscal Year, the Parent shall, at the request of the Administrative Agent or the Required Lenders,
promptly hold a meeting via conference call which shall be open to the Administrative Agent and the Lenders, at which conference call the financial results of the previous Fiscal Quarter and the financial condition of the Parent and its Subsidiaries
shall be reviewed; 
 SECTION 7.1.6 Environmental Law Covenant. The Parent will, and will cause each of its Subsidiaries
to, 
 (a) use and operate all of its and their facilities and properties in material compliance with all
Environmental Laws, keep all necessary permits, approvals, certificates, licenses and other authorizations relating to environmental matters in effect and remain in material compliance therewith, handle all Hazardous Materials in material compliance
with all applicable Environmental Laws, promptly resolve any non-compliance with Environment Laws and keep its property free of any Lien relating to Hazardous Materials or imposed by any Environmental Law; and 

(b) promptly notify the Administrative Agent and provide copies upon receipt of all written claims, complaints or notices
or inquiries from Governmental Authorities, in each case relating to the condition of its facilities and properties, to compliance with Environmental Laws or actual or alleged liability relating to Hazardous Materials or otherwise pursuant to
Environmental Law. 
 SECTION 7.1.7 Use of Proceeds. The Borrower will apply the proceeds of the Loans as follows:

 (a) To repay amounts owing under existing credit facilities; 

(b) for working capital and general corporate purposes of the Obligors and their respective Subsidiaries, including
Permitted Acquisitions and permitted Restricted Payments by such Persons and replacement of existing letters of credit. 

SECTION 7.1.8 Future Guarantors, Security, etc. Subject to Section 7.1.11, the Parent will, and will cause each of its
Material Subsidiaries to, execute any documents, Filing Statements, agreements and instruments, and take all further action (including filing mortgages against any owned real property) that may be required under applicable law, or that the

  
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Administrative Agent may reasonably request, in order to effectuate the transactions contemplated by the Loan Documents and in order to grant, preserve, protect and perfect the validity and first
priority (subject to Liens permitted by Section 7.2.3) of the Liens created or intended to be created by the Loan Documents all to the extent required to comply with Section 7.1.12. Subject to the terms, conditions and
restrictions set forth in the Intercreditor Agreement, the Parent will cause each of its subsequently acquired or organized Material Subsidiaries to execute and deliver a supplement (in form and substance satisfactory to the Administrative Agent) to
the applicable Guaranty and each other applicable Loan Document in favor of the Secured Parties. In addition, from time to time, subject to the terms, conditions and restrictions set forth in the Intercreditor Agreement, the Parent will, at its cost
and expense, promptly secure the Obligations by pledging or creating, or causing to be pledged or created, perfected Liens with respect to such of its assets and properties as the Administrative Agent or the Required Lenders shall designate, it
being agreed that it is the intent of the parties that the Obligations shall be secured by, among other things, substantially all the assets of the Parent and its Material Subsidiaries (including real and personal property acquired subsequent to the
Effective Date). Notwithstanding any other provision of any Loan Document (a) subject to subclause (e) below, no CFC Subsidiary shall be required to deliver a Guaranty directly or indirectly with respect to the Obligations of any Obligor
that is a U.S. Person to the extent that such CFC Subsidiary would be treated, under Section 956 of the Code, as having an investment in U.S. property, (b) neither the Borrower nor any of its Subsidiaries shall be required to
(x) pledge more than 65% of the issued and outstanding Voting Securities and 100% of the issued and outstanding non-voting Capital Security of any First-Tier CFC Subsidiary, or (y) pledge any asset or property of any CFC Subsidiary,
(c) no Obligor shall be required to deliver share certificates held in any Immaterial Subsidiary to the Collateral Agent and no legal opinions shall be required in respect of such shareholdings, (d) to the extent the granting of any such
Lien or the providing of a Guaranty would result in material stamp taxes, duties, registration or legal costs and expenses to the Parent and its Subsidiaries, the Administrative Agent shall cooperate with the Parent in good faith to minimize the
amount of such stamp taxes, duties, registration or legal costs and expenses resulting from the granting of such Lien or the providing of a Guaranty, taking into account the value of the assets to be secured by such Lien and (e) notwithstanding
the foregoing subclause (a) or limitations under Section 956 of the Code, each newly organized or acquired Subsidiary (other than an Immaterial Subsidiary) that is a direct or indirect Subsidiary of the Parent shall execute and deliver a
Guaranty (in form and substance satisfactory to the Administrative Agent) to the Parent’s Obligations in respect of the Loans and each other applicable Loan Document in favor of the Secured Parties. Such Liens will be created under the Loan
Documents in form and substance satisfactory to the Administrative Agent, and the Parent shall deliver or cause to be delivered to the Administrative Agent all such instruments and documents (including legal opinions, title insurance policies and
lien searches) as the Administrative Agent shall reasonably request to evidence compliance with this Section. In addition, the Parent agrees that it will notify the Administrative Agent promptly following the date on which the fair market value of
the property and assets (real and personal) of the Parent and its Subsidiaries located in Quebec (exclusive of the value of the Capital Securities of the Obligors), determined in the good faith judgment of the Parent, exceeds $250,000 and will
execute and deliver or cause its Subsidiaries, if applicable, to execute and deliver collateral documentation in form and substance reasonably satisfactory to the Administrative Agent necessary to perfect a Lien in favor of the Secured Parties on
such assets located in Quebec to secure the Obligations. Notwithstanding the foregoing, no guaranty of hedging arrangements that constitute Excluded Swap Obligations shall be required by any subsidiary of the Parent. 

  
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 SECTION 7.1.9 Material Contracts. The Parent and each of its Material Subsidiaries
shall comply in all material respects with each of its Material Contracts. 
 SECTION 7.1.10 Maintenance of Ratings. The
Parent will use commercially reasonable efforts to cause a (i) “Corporate Rating” by S&P and “Corporate Family Rating” by Moody’s and (ii) senior secured credit rating with respect to the Loans from each of
S&P and Moody’s to be available at all times until the Stated Maturity Date for the Loans. 
 SECTION 7.1.11
Post-Closing Obligations. The Parent will deliver the items set forth in Item 7.1.11 of the Disclosure Schedule on the dates set forth therein. The time period applicable to any post-closing obligation set forth in Item
7.1.11 of the Disclosure Schedule may be waived or extended by the Administrative Agent, from time to time, in its sole discretion. 
 SECTION 7.1.12 Obligors. If (i) the aggregate Consolidated EBITDA of all Subsidiaries that are not Guarantors at the end of any Fiscal Quarter, exceeds 5% of the Consolidated EBITDA of the
Parent and its Subsidiaries for such period (in each case as set forth in the Compliance Certificates relating to such Fiscal Quarter), (ii) the value of the assets of all Subsidiaries that are not Guarantors (excluding intercompany balances)
exceeds 5% of the value of the consolidated assets of the Parent and its Subsidiaries as at the end of such Fiscal Quarter (in each case as set forth in the financial statements with respect to such Fiscal Quarter or, if not presented in such
financial statements, as reasonably determined by the Parent in good faith) or (iii) the aggregate gross revenue of all Subsidiaries that are not Guarantors at the end of any Fiscal Quarter exceeds 5% of the consolidated gross revenue of the
Parent and its Subsidiaries for such period (in each case as set forth in the financial statements with respect to such Fiscal Quarter or, if not presented in such financial statements, as reasonably determined by the Parent in good faith), then the
Parent shall cause one or more Subsidiaries as necessary to become a Guarantor and provide security in compliance with the provisions of Section 7.1.8 so that the aggregate Consolidated EBITDA, asset value and/or gross revenue, as
applicable, of all Subsidiaries that are not Guarantors does not exceed any threshold set forth in clause (i), (ii) or (iii) of this Section 7.1.12. If the Borrower provides evidence satisfactory to the Administrative Agent
(acting reasonably) that one or more Subsidiaries are no longer required as Guarantors in order to meet the test described in this Section 7.1.12 and in connection with a corporate reorganization or otherwise in connection with an action
permitted to be taken hereunder with respect to such Subsidiary, the Parent intends to dissolve or wind-up such Subsidiary in accordance with the requirements of Section 7.2.10(c), then the Administrative Agent or the Collateral Agent
shall promptly release such Subsidiary from its Guaranty and related security and such Subsidiary shall thereafter be an Immaterial Subsidiary for purposes of this Agreement, and the Collateral Agent agrees to promptly return any stock certificates
it possesses in such subsidiary. 

  
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 SECTION 7.2 Negative Covenants. The Parent covenants and agrees with
each Lender and the Administrative Agent that until the Termination Date has occurred: 
 SECTION 7.2.1 Business
Activities. The Parent will, nor will it permit any of its Subsidiaries to, (a) engage in any business activity except those business activities engaged in on the date of this Agreement and activities reasonably incidental thereto or
(b) change its accounting policies or financial reporting practices from such policies and practices in effect on the Closing Date, including any change to the ending dates with respect to the Parent and its Subsidiaries’ Fiscal Year or
Fiscal Quarters, except as may be required by GAAP in effect at the time of such change or by applicable requirements of law.  
 SECTION 7.2.2 Indebtedness. The Parent will not, nor will it permit any of its Subsidiaries to, create, incur, assume or permit to exist any Indebtedness, other than: 

(a) Indebtedness in respect of the Obligations; 

(b) until the Closing Date, Indebtedness that is to be repaid in full as further identified in Item 7.2.2(b)
of the Disclosure Schedule; 
 (c) Indebtedness existing as of the Effective Date which is identified in
Item 7.2.2(c) of the Disclosure Schedule, and refinancing of such Indebtedness in a principal amount not in excess of that which is outstanding on the Effective Date (as such amount has been reduced following the Effective Date);

 (d) unsecured Indebtedness (i) incurred in the ordinary course of business of the Parent and its
Subsidiaries consisting of open accounts extended by suppliers on normal trade terms in connection with purchases of goods and services which are not overdue for a period of more than 120 days or, if overdue for more than 120 days, as to which a
dispute exists and adequate reserves in conformity with GAAP have been established on the books of Parent or such Subsidiary and (ii) in respect of performance, surety or appeal bonds provided in the ordinary course of business, but excluding
(in each case), Indebtedness incurred through the borrowing of money or Contingent Liabilities in respect thereof; 
 (e) Indebtedness (i) evidencing the deferred purchase price of newly acquired property or incurred to finance the acquisition of equipment, including installation costs and expenditures made for any
repairs, alterations, construction, development or improvements performed thereon or added thereto, of the Parent and its Subsidiaries (pursuant to purchase money mortgages or otherwise, whether owed to the seller or a third party) used in the
ordinary course of business of the Parent and its Subsidiaries (provided that such Indebtedness is incurred within 120 days of the acquisition of such property) and (ii) in respect of Capitalized Lease Liabilities; provided that,
the aggregate amount of all Indebtedness outstanding pursuant to this clause (e) shall not at any time exceed $23,000,000; 
 (f) Indebtedness of the Parent or any Subsidiary owing to the Parent or any Subsidiary, provided that (i) such Indebtedness shall, if payable to the Parent, the Borrower or a Subsidiary
Guarantor by the Parent or a Subsidiary that is not a CFC Subsidiary, be evidenced by the Master Intercompany Note, duly executed and delivered in pledge to the Collateral Agent pursuant to a Loan Document, (ii) if such Indebtedness is payable
to a Subsidiary that is not a Subsidiary Guarantor or a CFC Subsidiary, such Subsidiary shall have previously executed and delivered to the Administrative Agent the Interco Subordination Agreement, (iii) if such Indebtedness is incurred by a
Subsidiary 

  
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that is not a Subsidiary Guarantor owing to the Parent, the Borrower or any Subsidiary Guarantor, shall not (when aggregated with the amount of Investments made by Parent, the Borrower and the
Subsidiary Guarantors in Subsidiaries which are not Subsidiary Guarantors under clause (e)(i) of Section 7.2.5), exceed $17,250,000 and shall not be forgiven or otherwise discharged for any consideration other than payment in full
or in part in cash (provided that, only the amount repaid in part shall be discharged) and (iv) if such Indebtedness is payable to the Parent, the Borrower or a Subsidiary Guarantor by a CFC Subsidiary or by the Parent, the Borrower or a
Subsidiary Guarantor to a CFC Subsidiary, such Indebtedness shall not exceed in the aggregate $23,000,000; 
 (g)
First Lien Loans incurred pursuant to the terms of the First Lien Loan Documents in a principal amount not to exceed the Maximum First Lien Principal Debt Amount (as defined in the Intercreditor Agreement), and Contingent Liabilities of the
Subsidiary Guarantors in respect of the First Lien Loans; 
 (h) unsecured Indebtedness of the Parent or the
Borrower owing to the Export Development Canada in an aggregate principal amount not to exceed (when aggregated with the amount of any other Indebtedness of the Parent and the Borrower owing to the Export Development Canada set forth on
Item 7.2.2(c) of the Disclosure Schedule, as refinanced) $17,250,000; 
 (i) Hedging Obligations
incurred in the ordinary course of business for non-speculative purposes; 
 (j) unsecured Indebtedness for
borrowed money of the Parent or the Borrower and unsecured Contingent Liabilities of the Subsidiary Guarantors in respect of such unsecured Indebtedness, in an aggregate principal amount at any time outstanding not to exceed $34,500,000;
provided (i) that no Default or Event of Default has occurred which is continuing at the time that such unsecured Indebtedness is incurred or would result from the incurrence thereof, (ii) such unsecured Indebtedness matures at
least 180 days after the Stated Maturity Date and (iii) such unsecured Indebtedness does not contain any financial maintenance covenants or any covenants more restrictive than those provided for in this Agreement (as determined by the
Administrative Agent acting reasonably) or any required principal payments or prepayments prior to the maturity thereof; 
 (k) Indebtedness of a Person existing at the time such Person became a Subsidiary of the Parent, but only if such Indebtedness was not created or incurred in contemplation of such Person becoming a
Subsidiary and the aggregate outstanding amount of all Indebtedness existing pursuant to this clause does not exceed $40,250,000 at any time; 
 (l) other Indebtedness of the Parent and its Subsidiaries (other than Indebtedness of Foreign Subsidiaries owing to the Parent, the Borrower or Subsidiary Guarantors) in an aggregate amount at any time
outstanding not to exceed $17,250,000; and 

  
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 (m) to the extent constituting Indebtedness, Purchased Leases, all
repurchase, collection advances and indemnification obligations in connection therewith and all Contingent Liabilities with respect thereto; provided that the terms of each Lease Purchase Transaction shall provide that (x) the maximum
amount of such Indebtedness that may under any circumstances arise from “obligor defaults” or similar events shall not exceed in the case of any Lease Purchase Transaction in any twelve month “Loss Determination Period”
(as such term is defined with respect to such Lease Purchase Transaction) (it being understood that the amount of such permitted Indebtedness shall be calculated net of proceeds from remarketing of equipment the subject of “obligor
defaults” and net of subsequent payments received from any such obligors, in each case during such Loss Determination Period, for the purposes of this clause (m) but not for the purposes of Section 8.1.5(b)) the greater of
(A) 15% of the sum of (i) the aggregate Repurchase Prices of all Purchased Leases purchased by the relevant Lease Purchaser pursuant to such Lease Purchase Transaction (the sum of clause (i) and clause (ii), the “Purchased
Lease Cap Reference Amount” for such Lease Purchase Transaction) prior to the beginning of such twelve month Loss Determination Period, and (ii) the aggregate Purchase Prices of the Purchased Leases purchased by such Lease Purchaser
pursuant to such Lease Purchase Transaction during such twelve month Loss Determination Period, and (B) if one or more obligors default on one or more of the three largest Purchased Leases purchased under such Lease Purchase Transaction, the
aggregate Purchase Prices of such three largest Purchased Leases (treating as a single Purchased Lease for such purpose, all Purchased Leases with each such obligor’s Affiliates) (such aggregate amount, the “Three Largest Lease Cap
Amount” for such Lease Purchase Transaction and (y) any other circumstances where the Parent or any Subsidiary would become liable to repurchase Purchased Leases shall be consistent in all material respects with, and not materially
less favorable to the Parent or such Subsidiary than, the terms of the Lease Purchase Transactions in effect on the date of the Agreement; 

provided that, no Indebtedness otherwise permitted by clauses (c), (e), (i), (j), (k), (l) or
(m) shall be assumed, created or otherwise incurred if an Event of Default has occurred and is then continuing or would result therefrom. 
 SECTION 7.2.3 Liens. The Parent will not, nor will it permit any of its Subsidiaries to, create, incur, assume or permit to exist any Lien upon any of its property (including Capital Securities of
any Person), revenues or assets, whether now owned or hereafter acquired, except: 
 (a) Liens securing payment
of the Obligations; 
 (b) until the Closing Date, Liens securing payment of Indebtedness of the type described
in clause (b) of Section 7.2.2; 
 (c) Liens existing as of the Effective Date and
disclosed in Item 7.2.3(c) of the Disclosure Schedule securing Indebtedness described in clause (c) of Section 7.2.2 that is secured as of the date hereof, and refinancings, refundings, renewals of extension
thereof or replacements of such secured Indebtedness; provided that no such Lien shall encumber any additional property and the amount of Indebtedness secured by such Lien is not increased from that permitted under clause (c) of
Section 7.2.2; 

  
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 (d) Liens securing Indebtedness of the type permitted under clause
(e) of Section 7.2.2; provided that, (i) such Lien is granted within 60 days after such Indebtedness is incurred, (ii) the Indebtedness secured thereby does not exceed 100% of the cost of the applicable
property, improvements or equipment at the time of such acquisition (or construction) and (iii) such Lien secures only the assets that are the subject of the Indebtedness referred to in such clause; 

(e) Liens securing Indebtedness permitted by clause (k) of Section 7.2.2; provided that
such Liens existed prior to such Person becoming a Subsidiary, were not created in anticipation thereof and attach only to specific tangible assets of such Person (and not assets of such Person generally); 

(f) Liens in favor of carriers, warehousemen, mechanics, materialmen, repairmen, workmen and landlords and statutory liens
of banks and rights of set-off granted in the ordinary course of business for amounts not overdue for more than 30 days or being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP
shall have been set aside on its books; 
 (g) Liens incurred or deposits made in the ordinary course of business
in connection with Canadian Pension Plans, worker’s compensation, unemployment insurance or other forms of governmental insurance or benefits, or to secure performance of tenders, statutory obligations, surety and appeal bonds, bids, leases,
letters of intent, obligations under credit card processing agreements, government contracts, trade contracts, expropriations, proceedings, performance of return-of-money bonds or other similar obligations (other than for borrowed money);

 (h) judgment Liens in existence for less than 60 days after the entry thereof or with respect to which
execution has been stayed or the payment of which is covered in full (subject to a customary deductible) by insurance maintained with responsible insurance companies and which do not otherwise result in an Event of Default under
Section 8.1.6; 
 (i) easements, rights-of-way, restrictions, licenses, restrictive covenants,
servitudes, encroachments, and other minor defects or irregularities in title and other similar encumbrances including the reservations, limitations, provisos and conditions, if any, expressed in any original grant from the Crown of any real
property or any interest therein, not interfering in any material respect with the value or use of the property to which such Lien is attached; 
 (j) Liens (i) for Taxes not at the time delinquent or thereafter payable without penalty or being diligently contested in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books or (ii) in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of
business; 
 (k) Liens securing Indebtedness permitted under clause (g) of Section 7.2.2;

 (l) Liens securing Indebtedness permitted under clauses (f) and (l) of
Section 7.2.2; 

  
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 (m) Liens arising from the filing of PPSA or UCC financing statements by
lessors under true operating leases against the Parent or any of its Subsidiaries, as lessees, made as precautionary filings in respect of such operating leases; 

(n) Liens relating to licenses of patents, trademarks and other intellectual property rights granted by the Parent or any
of its Subsidiaries in the ordinary course of business and not interfering in any material respect with the ordinary conduct of the business of the Parent or any of its Subsidiaries; 

(o) any Lien given to a public utility or any municipality or governmental or other public authority when required by such
utility or other authority in connection with the operation of the business or the ownership of the assets of the Parent or its Subsidiaries, not securing any Indebtedness and not interfering in any material respect with the ordinary conduct of the
business of the Parent or any of its Subsidiaries; 
 (p) any Lien consisting of the right reserved to or vested
in any Governmental Authority by any statutory provision or by the terms of any lease, license, agreement, franchise, grant or permit of the Parent or its Subsidiaries, to terminate any such lease, agreement, license, franchise, grant or permit, or
to require annual or other payments as a condition to the continuance thereof; and 
 (q) Liens on Collateral
securing claims under Purchased Leases and any Liens arising from the filings of PPSA or UCC financing statements by Lease Purchasers in respect thereof. 
 SECTION 7.2.4 Leverage Ratio. 
 (a) The Parent will not
permit the Leverage Ratio for any period ending on the last day of any Fiscal Quarter ending during a period set forth below to be greater than the ratio set forth opposite such period: 

 

					
	 Period of Four Quarters Ending
	  	Ratio	 
	 April 30, 2013 through January 31, 2014
	  	 	4.60:1.00	  
	 April 30, 2014 through January 31, 2015
	  	 	4.10:1.00	  
	 April 30, 2015 through January 31, 2016
	  	 	3.50:1.00	  
	 April 30, 2016 and thereafter
	  	 	3.25:1.00	  

 (b) For purposes of determining compliance with the financial covenant set forth in
this Section 7.2.4, any equity investment made in the Borrower by any one or more of the Permitted Holders after the Closing Date and on or prior to the date financial statements are required to be delivered for a Fiscal Quarter will, at
the request of the Parent, be included in the calculation of Consolidated EBITDA for the purposes of determining compliance with the Leverage Ratio pursuant to this Section 7.2.4 for such Fiscal Quarter (any such equity contribution so
included in the calculation of Consolidated EBITDA, being a “Specified Equity Contribution”); provided, however, that (i) there shall be no more than two Specified Equity Contributions made in a period of
four consecutive Fiscal Quarters and no more than five Specified Equity Contributions 

  
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in the aggregate made during the term of the Commitment, (ii) the amount of any Specified Equity Contribution shall be no greater than 100% of the amount required to cause the Parent to be
in compliance with the Leverage Ratio pursuant to this Section 7.2.4; (iii) such Specified Equity Contribution shall only be given effect for purposes of compliance with this Section 7.2.4 and not for any other use of
the Leverage Ratio under this Agreement or under any of the other Loan Documents; and (iv) to the extent Consolidated EBITDA has been increased for any Fiscal Quarter as a result of a Specified Equity Contribution, Consolidated EBITDA as so
increased for such Fiscal Quarter shall apply for any subsequent determination of the Leverage Ratio pursuant to this Section 7.2.4 which includes such Fiscal Quarter. 

SECTION 7.2.5 Investments. The Parent will not, nor will it permit any of its Subsidiaries to, purchase, make, incur, assume or
permit to exist any Investment in any other Person, except: 
 (a) Investments existing on the Effective Date and
identified in Item 7.2.5(a) of the Disclosure Schedule; 
 (b) Cash Equivalent Investments;

 (c) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent
accounts and disputes with, customers and suppliers, in each case in the ordinary course of business; 
 (d)
Investments consisting of any deferred portion of the sales price received by the Parent or any Subsidiary in connection with any Disposition permitted under Section 7.2.11; 

(e) Investments (i) by way of contributions to capital or purchases of Capital Securities by the Parent in any
Subsidiaries or by any Subsidiary in other Subsidiaries; provided that, the aggregate amount of intercompany loans made pursuant to clause (f)(iii) of Section 7.2.2 and Investments under this clause made by Obligors in
Subsidiaries that are not Obligors shall not exceed the amount set forth in clause (f)(iii) of Section 7.2.2 at any time, (ii) consisting of Indebtedness permitted by clause (f)(i) of Section 7.2.2,
(iii) consisting of Indebtedness permitted by clause (f)(ii) of Section 7.2.2, or (iv) by way of contributions to capital or purchases of Capital Securities by any Subsidiary in the Parent; 

(f) Investments constituting (i) accounts receivable arising, (ii) trade debt granted, or (iii) deposits
made in connection with the purchase price of goods or services, in each case in the ordinary course of business; 
 (g) Investments in Capital Securities constituting Permitted Acquisitions in an amount which, when aggregated with the amount expended under clause (b) of Section 7.2.10, does not
exceed $115,000,000 over the term of this Agreement; provided, that the aggregate amount of Investments that do not result in the acquisition of a wholly-owned Subsidiary that executes and delivers a Guaranty (or a supplement thereto) and
each other Loan Document pursuant to Section 7.1.8 or, in the case of an asset acquisition, in assets that do not become property of a Guarantor or Borrower, shall not exceed $11,500,000 over the term of this Agreement; 

  
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 (h) loans and advances to directors and employees in an aggregate amount not
to exceed $5,750,000 at any time outstanding; 
 (i) other Investments in an amount not to exceed $40,250,000 over the term of
this Agreement; 
 (j) deposits by the Parent or its Subsidiaries in the ordinary course of business consistent
with customary practice or its past practices to secure the performance of leases, licenses or contracts; 
 (k)
Hedging agreements or unsecured hedging agreements in the ordinary course of business and not for speculative purposes; 
 (l) Investments resulting from collection advance obligations under Purchased Leases consistent with the past practice of the Parent and its Subsidiaries as of the Closing Date in an amount not to exceed
$11,500,000 in the aggregate at any time outstanding; and 
 (m) the endorsement of negotiable instruments for
deposit or collection or similar transactions in the ordinary course of business; 
 provided, that, (i) any Investment which when
made complies with the requirements of the definition of the term “Cash Equivalent Investment” may continue to be held notwithstanding that such Investment if made thereafter would not comply with such requirements, and (ii) no
Investment otherwise permitted by clauses (e)(i), (g), (h) or (i) shall be permitted to be made if any Default has occurred and is continuing or would result therefrom. 

SECTION 7.2.6 Restricted Payments, etc. The Parent will not, nor will it permit any of its Subsidiaries to, declare or make a
Restricted Payment, or make any deposit for any Restricted Payment, other than Restricted Payments made by (a) any Subsidiary to any Obligor, (b) any Obligor to another Obligor or any non-Obligor to any other non-Obligor, (c) any
Obligor to any non-Obligor or (d) the Parent to its shareholders; provided, however, that any Restricted Payment pursuant to clause (c) or (d) above shall only be permitted (x) if both before and after giving
effect to such Restricted Payment, no Default or Event of Default has occurred and is continuing or would result from the making of such Restricted Payment, and (y) in an amount not to exceed: (1) $17,250,000 over the term of this
Agreement; plus (2) an additional amount up to the Available Amount as of the applicable date of determination, so long as, for purposes of this subclause (2), at such time the Parent and its Subsidiaries are in pro forma compliance with
a Leverage Ratio 0.25x lower than the Leverage Ratio then required to be maintained pursuant to Section 7.2.4, determined on a Pro Forma Basis as of the last day of the Fiscal Quarter most recently ended. 

SECTION 7.2.7 Reserved. 
 SECTION 7.2.8 No Prepayment of Debt. The Parent will not, and will not permit any of its Subsidiaries to: 

  
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 (a) (i) make any prepayment of principal of, or premium or interest on, any
Subordinated Debt or senior unsecured Indebtedness (other than any intercompany Indebtedness owing to an Obligor to the extent incurred in accordance with clause (f) of Section 7.2.2) other than the stated, scheduled date for
payment set forth in the applicable documents governing such Indebtedness, or (ii) make any payment of any Subordinated Debt which would violate the terms of this Agreement or the applicable Subordinated Debt Documents; 

(b) redeem, retire, purchase, defease or otherwise acquire any Subordinated Debt or senior unsecured Indebtedness; or

 (c) make any deposit (including the payment of amounts into a sinking fund or other similar fund) for any of
the foregoing purposes; 
 provided, that the Parent shall be permitted to prepay Indebtedness in an amount not to exceed the Available
Amount as of the date of the relevant prepayment, so long as at such time (before and immediately after giving effect to such prepayment) (i) no Default or Event of Default has occurred and is continuing and (ii) the Parent and its
Subsidiaries are in pro forma compliance with a Leverage Ratio 0.25x lower than the Leverage Ratio then required to be maintained pursuant to Section 7.2.4, determined on a Pro Forma Basis as of the last day of the Fiscal Quarter most
recently ended. 
 Furthermore, neither the Parent nor any Subsidiary will designate any Indebtedness other than the Obligations under and as
defined in the First Lien Credit Agreement and following the “Termination Date” thereunder, the “Obligations”, as “Designated Senior Debt” (or any analogous term) in any Subordinated Debt Document. 

SECTION 7.2.9 Disqualified Equity Interests. 

(a) Neither the Parent nor any of its Subsidiaries will issue any Disqualified Capital Stock unless the obligations in
respect of such Disqualified Capital Stock would have been permitted to be incurred as Indebtedness pursuant to clause (f) or (l) of Section 7.2.2. 

(b) No Subsidiary of the Borrower will issue any Capital Securities (including by way of sales of treasury stock) or any
options or warrants to purchase, or securities convertible into, any Capital Securities, except: (i) for stock splits, stock dividends and additional issuances of Capital Securities which do not decrease the percentage ownership of the
Borrower, Parent or any other Obligors in any class of the Equity Interests of such Subsidiary and (ii) Subsidiaries of the Borrower formed or acquired after the Closing Date in accordance with Section 7.2.5 may issue Capital
Securities to the Borrower or to the Obligor which is to own such Equity Interests. 
 SECTION 7.2.10 Consolidation, Merger;
Permitted Acquisitions, etc. The Parent will not, nor will it permit any of its Subsidiaries to, liquidate or dissolve, consolidate with, or merge into or with, any other Person, or purchase or otherwise acquire all or substantially all of the
assets of any Person (or any division thereof), except: 

  
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 (a) any Subsidiary may liquidate or dissolve voluntarily into, and may merge
with and into, the Borrower or any other Subsidiary (provided that, a Guarantor may only liquidate or dissolve into, or merge with and into, the Borrower or another Guarantor), and the assets or Capital Securities of any Subsidiary may be
purchased or otherwise acquired by the Borrower or any other Subsidiary (provided that, the assets or Capital Securities of any Subsidiary Guarantor may only be purchased or otherwise acquired by the Borrower or another Subsidiary Guarantor);
provided, further that, in no event shall any Subsidiary consolidate with or merge with and into any other Subsidiary unless after giving effect thereto, the Collateral Agent shall have a perfected pledge of, and security interest in
and to, at least the same percentage of the issued and outstanding interests of Capital Securities (on a fully diluted basis) and other assets of the surviving Person as the Collateral Agent had immediately prior to such merger or consolidation in
form and substance satisfactory to the Administrative Agent and their counsel, pursuant to such documentation and opinions as shall be necessary in the opinion of the Administrative Agent to create, perfect or maintain the collateral position of the
Secured Parties therein; 
 (b) the purchase of all or substantially all of the assets of any Person (or any
division thereof), or the acquisition of such Person by merger, in each case if (i) such purchase or acquisition constitutes a Permitted Acquisition, and (ii) the amount expended in connection with such transaction, when aggregated with
the amount expended under clause (g) of Section 7.2.5, does not exceed the amount set forth in such clause over the term of this Agreement; and 

(c) any Immaterial Subsidiary may be dissolved or otherwise wound-up; provided that all of the assets of such
Immaterial Subsidiary are transferred to one or more Subsidiaries prior to such dissolution or winding up. 
 SECTION 7.2.11
Permitted Dispositions. The Parent will not, nor will it permit any of its Subsidiaries to, Dispose of any of such Person’s assets (including accounts receivable and Capital Securities of Subsidiaries) to any Person in one transaction or
series of transactions unless such Disposition is: 
 (a) inventory or obsolete, damaged, worn out or surplus
personal property Disposed of in the ordinary course of its business; 
 (b) Purchased Leases or Residual
Positions to a Lease Purchaser in the ordinary course of the Parent’s and its Subsidiaries’ business, provided that the consideration received by the Parent, the Borrower or Subsidiary for such sale consists of no less than 90% in
cash and is conducted in an arm’s-length transaction with such Person; 
 (c) permitted by
Section 7.2.10; 
 (d) (i) for fair market value and the consideration received consists of no less
than 75% in cash, and (ii) the Net Disposition Proceeds received from such Disposition, together with the Net Disposition Proceeds of all other assets Disposed of pursuant to this clause since the Closing Date, does not exceed (individually or
in the aggregate) $40,250,000 over the term of this Agreement; 

  
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 (e) of Non-Core Intellectual Property Assets, provided that
(i) the Net Disposition Proceeds received from such Disposition are used to repay the Loans in accordance with Section 3.1.1(d) without any ability to reinvest such Net Disposition Proceeds, (ii) the fair market value of the
assets subject to such Disposition, together with the fair market value of all other assets Disposed of pursuant to this clause since the Closing Date, does not exceed (individually or in the aggregate) $23,000,000 over the term of this Agreement
and (iii) such Disposition is for fair market value and the consideration received consists of no less than 50% in cash, which may include cash paid over time pursuant to agreements providing for the payment of royalties; or 

(f) the Specified Disposition, provided that such Disposition is for fair market value. 

SECTION 7.2.12 Modification of Certain Agreements. The Parent will not, and will not permit any of its Subsidiaries to, consent to
any amendment, supplement, waiver or other modification of, or enter into any forbearance from exercising any rights with respect to the terms or provisions contained in: 

(a) the documents governing any Indebtedness (other than First Lien Debt), unless the Parent or Subsidiary of the Parent
who is obligated on such Indebtedness could have incurred such Indebtedness under Section 7.2.2 on such amended terms as of the date of such amendment, supplement, modification or waiver; 

(b) the documents governing any First Lien Debt, unless such amendment, supplement, waiver or other modification would be
permitted by the terms of the Intercreditor Agreement; or 
 (c) the Organic Documents of the Parent or any of
its Subsidiaries, if the result would have an adverse effect on the rights or remedies of any Secured Party. 
 SECTION 7.2.13
Transactions with Affiliates. The Parent will not, nor will it permit any of its Subsidiaries to, enter into or cause or permit to exist any arrangement, transaction or contract (including for the purchase, lease or exchange of property or
the rendering of services) with any of its other Affiliates, unless such arrangement, transaction or contract (i) is on fair and reasonable terms no less favorable to the Parent or such Subsidiary than it could obtain in an arm’s-length
transaction with a Person that is not an Affiliate and (ii) is of the kind which would be entered into by a prudent Person in the position of the Parent or such Subsidiary with a Person that is not one of its Affiliates; provided,
however, that the foregoing restrictions shall not apply to: (i) the payment of reasonable and customary fees to directors of the Obligors who are not employees of the Obligors, (ii) any other transaction with any employee, officer
or director of the Obligors pursuant to employee profit sharing and/or benefit plans and compensation and non-competition arrangements in amounts customary for corporations similarly situated to the Obligors and entered into in the ordinary course
of business and approved by the board of directors of the applicable Obligor, or (iii) any reimbursement of reasonable out-of-pocket costs incurred by an Affiliate of any Obligor on behalf of or for the account of such Obligor. 

  
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 SECTION 7.2.14 Restrictive Agreements, etc. The Parent will not, nor will it permit
any of its Subsidiaries to, enter into any agreement prohibiting: 
 (a) the creation or assumption of any Lien
upon its properties, revenues or assets, whether now owned or hereafter acquired, other than any such properties, revenues or assets transferred or otherwise Disposed pursuant to a Disposition permitted hereunder and other than as required with
respect to Lease Purchase Collateral in connection with a Lease Purchase Transaction; 
 (b) the ability of any
Obligor to amend or otherwise modify any Loan Document; or 
 (c) the ability of any Subsidiary to make any
payments, directly or indirectly, to the Borrower, including by way of dividends, advances, repayments of loans, reimbursements of management and other intercompany charges, expenses and accruals or other returns on investments. 

The foregoing prohibitions shall not apply to restrictions contained (i) in any Loan Document or in any First Lien Loan Document (subject to the
terms of the Intercreditor Agreement), (ii) in the case of clause (a), (A) any agreement governing any Indebtedness permitted by clause (e) of Section 7.2.2 as to the assets financed with the proceeds of such
Indebtedness; (B) any agreements that are customary restrictions on leases, subleases, licenses or permits so long as such restrictions relate to the property subject thereto; (C) any agreements that are customary provisions restricting
subletting or assignment of any lease governing a leasehold interest; (D) agreements that are customary provisions restricting assignment or transfer of any contract entered into in the ordinary course of business; (E) any agreement
evidencing an asset sale, as to the assets being sold; (F) agreements binding on a Subsidiary at the time such Subsidiary first becomes a Subsidiary of the Parent, so long as such agreements were not entered into in contemplation of such Person
becoming a Subsidiary of the Parent; (G) any agreements governing any purchase money Liens or obligations under leases which, in accordance with GAAP, should be classified as capitalized leases, in each case otherwise permitted pursuant to this
Agreement (in which case, any prohibition or limitation shall only be effective against the property financed thereby; provided that individual agreements governing purchase money Liens or obligations under Capitalized Lease Liabilities
provided by a Person to an Obligor may be cross-collateralized to other such agreements governing purchase money Liens or obligations under Capitalized Lease Liabilities otherwise permitted pursuant to this Agreement provided by such Person to an
Obligor); (H) encumbrances or restrictions on the transfer of any property subject to Liens permitted by Section 7.2.3 and (I) negative pledge clauses and limitations on restricted payments contained in documents governing
Indebtedness pursuant to clause (k) of Section 7.2.2 which (A) are customary for high-yield notes and (B) permit without restriction the granting of Liens to secure the Obligations and the payment of dividends and
distributions by Subsidiaries to the Parent, and (iii) in the case of clauses (a) and (c), any agreement of a Foreign Subsidiary governing the Indebtedness permitted by clause (l) of Section 7.2.2. 

SECTION 7.2.15 Sale and Leaseback. The Parent will not, nor will it permit any of its Subsidiaries to, directly or indirectly
enter into any agreement or arrangement providing for the sale or transfer by it of any property (now owned or hereafter acquired) to a Person and the subsequent lease or rental of such property or other similar property from such Person unless,
either: 

  
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 (a) immediately prior to the entering into of such arrangement, such Person,
could, pursuant to Section 7.2.3, create a Lien on property to secure Indebtedness in an amount equal to the total net amount of rent required to be paid by such Person under such lease during the remaining term thereof with respect to
such sale and leaseback transaction; or 
 (b) such Person applies, within 120 days after the sale or transfer,
an amount equal to the fair market value of the property so sold and leased back at the time of entering into such sale and leaseback transaction (as determined by the Board of Directors of the Parent or such Person) to the prepayment of the Loans
pursuant to Sections 3.1.1 and 3.1.2. 
 ARTICLE VIII 

EVENTS OF DEFAULT 
 SECTION 8.1 Listing of Events of Default. Each of the following events or occurrences described in this Article shall constitute an “Event of Default”. 

SECTION 8.1.1 Non-Payment of Obligations. (i) (a) The Borrower shall default in the payment or prepayment when due of
any principal of any Loan or (b) any Guarantor shall default in the payment when due of any payment Obligation under a Guaranty; or (ii) the Borrower shall default in the payment or prepayment when due of any interest on any Loan or any
fee described in Article III or any other monetary Obligation, and such default under this clause (ii) shall continue unremedied for a period of three Business Days after such amount was due. 

SECTION 8.1.2 Breach of Warranty. Any representation or warranty of any Obligor made or deemed to be made in any Loan Document
(including any certificates delivered pursuant to Article V) is or shall be incorrect in any material respect when made or deemed to have been made. 
 SECTION 8.1.3 Non-Performance of Certain Covenants and Obligations. Any Obligor shall default in the due performance or observance of any of its obligations under clause (d) of
Section 7.1.1 or Section 7.1.7, Section 7.2 or Article X or (b) any Obligor shall default in the due performance or observance of its material obligations under any Guaranty or Security Agreement to
which it is a party. 
 SECTION 8.1.4 Non-Performance of Other Covenants and Obligations. Any Obligor shall default in
the due performance and observance of any other agreement contained in any Loan Document executed by it, and such default shall continue unremedied for a period of (a) 15 days in the case of Section 7.1.1 (other than
clause (d) thereof) or (b) 30 days in the case of any other agreement after the earlier to occur, in each case, of (i) notice thereof given to the Parent by the Administrative Agent or any Lender and (ii) the date on which
any Obligor has knowledge of such default. 
 SECTION 8.1.5 Default on Other Indebtedness; Lease Purchase Transactions.

 (a) A default shall occur in the payment of any amount when due or payable (subject to any applicable grace
period), whether by acceleration or otherwise, of any principal or stated amount of, or interest or fees on, any Indebtedness (other than 

  
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Indebtedness described in Section 8.1.1 or Section 7.2.2(m) or as otherwise set forth in clause (b) below) of the Parent or any of its Subsidiaries having a principal
or stated amount, individually or in the aggregate, in excess of $23,000,000 (or the Dollar Equivalent thereof, if applicable and, in the case of Hedging Obligations, calculated at the Swap Termination Value thereof), or a default shall occur in the
performance or observance of any obligation or condition with respect to such Indebtedness if the effect of such default is to accelerate the maturity or other fixed date of final payment of any such Indebtedness or such default shall continue
unremedied for any applicable period of time sufficient to permit the holder or holders of such Indebtedness, or any trustee or agent for such holders, to cause or declare such Indebtedness to become due and payable or to require such Indebtedness
to be prepaid, redeemed, purchased or defeased, or require an offer to purchase or defease such Indebtedness to be made, prior to its expressed maturity; provided that a default, event or condition described in this Section 8.1.5
in respect of the First Lien Loan Documents shall not at any time constitute an Event of Default (other than (i) a default, event or condition set forth in Section 8.1.1 of the First Lien Credit Agreement which shall constitute an
Event of Default only if such default, event or condition is not cured or waived within 45 days after the occurrence of such default, event or condition or (ii) the declaration of all or any portion of such Indebtedness to be immediately due
and payable which shall constitute an immediate Event of Default). 
 (b) The Parent or any of its Subsidiaries
shall, (i) pursuant to the terms of any Lease Purchase Transaction, become obligated to pay any amount to a Lease Purchaser (including as consideration for a repurchase of Leases sold to such Lease Purchaser) pursuant to “obligor
defaults” or similar events at any time during the Loss Determination Period for such Lease Purchase Transaction in excess of 15% of the Purchased Lease Cap Reference Amount for any Purchased Lease Transaction or the Three Largest Lease Cap
Amount, to the extent applicable with respect to such Lease Purchase Transaction or (ii) for any reason (including any circumstances described in clause (i) of this Section 8.1.5(b)), become obligated to pay amounts to
one or more Lease Purchasers in excess of $23,000,000 individually or in the aggregate in any consecutive 12-month period, or an event shall occur (including any default in the payment, performance or observance of any obligation or condition) with
respect to any one or more Lease Purchase Transactions if the effect of such event is to permit the applicable Lease Purchaser or Lease Purchasers to require such an amount described in clause (i) or (ii) to become due and payable
(including as consideration for a repurchase of Leases sold to such Lease Purchaser or Lease Purchasers) during such period. 

SECTION 8.1.6 Judgments. Any judgment or order: (i) for the payment of money individually or in the aggregate in excess of
$23,000,000 (or the Dollar Equivalent thereof, if applicable) (exclusive of any amounts fully covered by insurance (less any applicable deductible) and as to which the insurer has acknowledged its responsibility to cover such judgment or order), or
(ii) for injunctive relief which could reasonably be expected to result in a Material Adverse Effect, shall be rendered against the Parent or any of its Subsidiaries and in each case such judgment shall not have been vacated or discharged or
stayed or bonded pending appeal within 30 days after the entry thereof or enforcement proceedings shall have been commenced by any creditor upon such judgment or order. 

  
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 SECTION 8.1.7 Pension Plans. Any of the following events shall occur with respect to
any U.S. Pension Plan, Canadian Pension Plan or Multiemployer Plan, as the case may be: 
 (a) the institution of
any steps by the Parent, any member of the Controlled Group or any other Person to withdraw from or terminate a U.S. Pension Plan if, as a result of such withdrawal or termination, the Parent or any such member of the Controlled Group could be
required to make a contribution to such U.S. Pension Plan, or could reasonably expect to incur a liability or obligation to such U.S. Pension Plan, in excess of $23,000,000; 

(b) a contribution failure occurs with respect to any U.S. Pension Plan sufficient to give rise to a Lien under section
303(k) of ERISA; 
 (c) the occurrence of any event or events with respect to the Multiemployer Plans which in
the aggregate could result in the Parent or any member of the Controlled Group incurring a liability in excess of $23,000,000; 
 (d) any of the following events shall occur with respect to a U.S. Pension Plan which in the aggregate could result in the Parent or any member of the Controlled Group incurring liability in excess of
$23,000,000: (i) the occurrence of a reportable event, within the meaning of Section 4043 of ERISA, with respect to any U.S. Pension Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC;
(ii) the application for a minimum funding waiver with respect to a U.S. Pension Plan; (iii) the cessation of operations at a facility of the Parent or any member of its Controlled Group which could reasonably be expected to result in
liability in excess of $23,000,000 under Section 4062(e) of ERISA; (iv) a determination that any U.S. Pension Plan is in “at risk” status (within the meaning of Section 303 of ERISA); or (v) the occurrence of any event
or condition described in Section 4042(a)(1),(2) or (3) of ERISA that constitutes grounds for the appointment of a trustee to administer a U.S. Pension Plan or it is reasonably likely that a trustee will be appointed under
Section 4042(a)(4) of ERISA; or 
 (e) any of the following events shall occur with respect to any Canadian
Pension Plan or Canadian Welfare Plan: (i) the institution of any steps by the Parent, a Subsidiary or any other Person to terminate any Canadian Pension Plan if, as a result of such termination, the Parent or any of its Subsidiaries is
required to make an additional contribution to such Canadian Pension Plan, or could reasonably be expected to incur a liability or obligation to such Canadian Pension Plan, in an amount in excess of $23,000,000; (ii) a contribution failure
occurs with respect to any Canadian Pension Plan in an amount in excess of $23,000,000, or the Canadian Dollar Equivalent thereof; or (iii) the occurrence of any event with respect to any Canadian Pension Plan that results in or would
reasonably be likely to result in the incurrence by the Parent or any of its Subsidiaries of any liability, fine or penalty, or any increase in a liability, including without limitation a contingent liability, of the Parent or any of its
Subsidiaries in an amount in excess of $23,000,000, or the Canadian Dollar Equivalent thereof, with respect to any Canadian Pension Plan or Canadian Welfare Plan benefit. 
 SECTION 8.1.8 Change in Control. Any Change in Control shall occur. 

  
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 SECTION 8.1.9 Bankruptcy, Insolvency, etc. The Parent, any of its Material
Subsidiaries shall: 
 (a) become insolvent or generally fail to pay, or admit in writing its inability or
unwillingness generally to pay, its debts as they become due; 
 (b) apply for, consent to, or acquiesce in the
appointment of a trustee, receiver, interim receiver, sequestrator or other custodian for itself or any substantial part of its property, or make a general assignment for the benefit of creditors; 

(c) in the absence of such application, consent or acquiescence, permit or suffer to exist the appointment of a trustee,
receiver, sequestrator or other custodian for itself or a substantial part of its property; 
 (d) permit or
suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law or any dissolution, winding up or liquidation proceeding, in respect thereof, and, if any such
case or proceeding is not commenced by the Parent or any Subsidiary, such case or proceeding shall be consented to or acquiesced in by the Parent or such Subsidiary, as the case may be, or shall result in the entry of an order for relief or shall
remain for 45 days undismissed; provided that the Parent and each Subsidiary hereby expressly authorizes each Secured Party to appear in any court conducting any such case or proceeding during such 45-day period to preserve, protect and
defend their rights under the Loan Documents; or 
 (e) take any action authorizing, or in furtherance of, any of
the foregoing. 
 SECTION 8.1.10 Impairment of Security, etc. Any Loan Document or any Lien granted thereunder shall
(except in accordance with its terms), in whole or in part, terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of any Obligor party thereto; any Obligor or any other party shall, directly or
indirectly, contest in any manner such effectiveness, validity, binding nature or enforceability; or, except as permitted under any Loan Document, any Lien securing any Obligation shall, in whole or in part, cease to be a perfected first priority
Lien. 
 SECTION 8.1.11 Failure of Subordination. Unless otherwise waived or consented to by the Administrative Agent and
the Lenders in writing, the subordination provisions relating to any Subordinated Debt (the “Subordination Provisions”) shall fail to be enforceable by the Administrative Agent and the Lenders in accordance with the terms thereof,
or the monetary Obligations shall fail to constitute “Senior Indebtedness” (or similar term) referring to the Obligations; or the Parent or any of its Subsidiaries shall, directly or indirectly, disavow or contest in any manner
(i) the effectiveness, validity or enforceability of any of the Subordination Provisions, (ii) that the Subordination Provisions exist for the benefit of the Administrative Agent and the Lenders or (iii) that all payments of principal
of or premium and interest on the Subordinated Debt, or realized from the liquidation of any property of any Obligor, shall be subject to any of such Subordination Provisions. 

  
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 SECTION 8.2 Action if Bankruptcy. If any Event of Default described
in clauses (a) through (d) of Section 8.1.9 with respect to the Borrower shall occur, the Commitments (if not theretofore terminated) shall automatically terminate and the outstanding principal amount of all outstanding Loans
and all other Obligations shall automatically be and become immediately due and payable, without notice or demand to any Person. 
 SECTION 8.3 Action if Other Event of Default. If any Event of Default (other than any Event of Default described in clauses (a) through (d) of Section 8.1.9 with
respect to the Borrower) shall occur for any reason, whether voluntary or involuntary, and be continuing, the Administrative Agent, upon the direction of the Required Lenders, shall (or with the consent of the Required Lenders, may) by notice to the
Borrower declare all or any portion of the outstanding principal amount of the Loans and other Obligations to be due and payable, whereupon the full unpaid amount of such Loans and other Obligations which shall be so declared due and payable shall
be and become immediately due and payable, without further notice, demand or presentment. Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the
other Loan Documents shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent and the Collateral Agent in accordance with
this Section and Section 8.2 for the benefit of all the Lenders; provided that the foregoing shall not prohibit (i) the Administrative Agent from exercising the rights and remedies that inure to its benefit (solely in its
capacity as Administrative Agent) hereunder and under the other Loan Documents, (ii) any Lender from exercising setoff rights in accordance with Section 4.9 or the other Loan Documents, (iii) any Lender from filing proofs of
claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Obligor under any Debtor Relief Law and provided further that if no Person is acting as Administrative Agent, then the Required
Lenders shall have the rights otherwise ascribed to the Administrative Agent. 
 ARTICLE IX 

RESERVED. 

ARTICLE X 

GUARANTY PROVISIONS 
 SECTION 10.1 Parent Guaranty Provisions. The Parent hereby irrevocably guarantees the payment of all Obligations as set forth below. 

SECTION 10.2 Parent Guaranty. The Parent hereby absolutely, unconditionally and irrevocably guarantees the full and
punctual payment when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise, of all Obligations. This guaranty constitutes a guaranty of payment when due and not of collection, and the Parent
specifically agrees that it shall not be necessary or required that any Secured Party exercise any right, assert any claim or demand or enforce any remedy whatsoever against any Obligor or any other Person before or as a condition to the obligations
of the Parent hereunder. 

  
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 SECTION 10.3 Guaranty Absolute, etc. The Parent’s guaranty
herein shall in all respects be a continuing, absolute, unconditional and irrevocable guaranty of payment, and shall remain in full force and effect until the Termination Date. The Parent guarantees that the Obligations will be paid strictly in
accordance with the terms of each Loan Document under which such Obligations arise, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Secured Party with respect
thereto. The liability of the Parent under this Agreement shall be absolute, unconditional and irrevocable irrespective of 
 (a) any lack of validity, legality or enforceability of any Obligations or Loan Document; 
 (b) the failure of any Secured Party to assert any claim or demand or to enforce any right or remedy against any Obligor or any other Person (including any other guarantor) under the provisions of any
Loan Document or otherwise, or to exercise any right or remedy against collateral securing, any Obligations; 

(c) any change in the time, manner or place of payment of, or in any other term of, any amendment to, rescission, waiver,
or other modification of, or any consent to or departure from, any of the terms of any Loan Document, all or any part of the Obligations, or any other extension, compromise or renewal of any Obligation; 

(d) any reduction, limitation, impairment or termination of any Obligations for any reason (other than a defense of
payment in full in cash), including any claim of waiver, release, surrender, alteration or compromise; 
 (e) any
defense or setoff, counterclaim (other than a defense of payment in full in cash), recoupment or termination whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any other event or
occurrence affecting, any Obligations or otherwise; 
 (f) any manner of sale or other disposition of any
collateral for all or any of the Obligations or any other assets of any Obligor or any manner of application of any collateral, or proceeds thereof, to all or any of the Obligations, or 

(g) any addition, exchange or release of any collateral or of any Person that is (or will become) a guarantor of the
Obligations, or any surrender or non-perfection of any collateral, or any amendment to or waiver or release or addition to, or consent to or departure from, any other guaranty held by any Secured Party securing any of the Obligations; 

(h) any change, restructuring or termination of the corporate structure or existence of any Obligor; 

(i) any failure of any Secured Party to disclose to any Obligor any matter, fact or thing relating to the business,
condition (financial or otherwise), operations, performance, properties or prospects of any other guarantor now or hereafter known by such Secured Party; 

  
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 (j) the failure of any other Person to execute or deliver any Guaranty, or
any supplement thereto, or any other guaranty or agreement or the release or reduction of liability of any Obligor or surety with respect to the Obligations; or 
 (k) any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Obligor, any surety or any guarantor. 

Collectively, the foregoing sub-sections (a) through (k) shall be known as the “Guaranty Absolute Clauses.”

 SECTION 10.4 Reinstatement, etc. The Parent agrees that its guaranty hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time any payment (in whole or in part) of any of the Obligations is rescinded or must otherwise be restored by any Secured Party, upon the insolvency, bankruptcy or reorganization of any
other Obligor or otherwise, all as though such payment had not been made. 
 SECTION 10.5 Waiver, etc.
The Parent hereby unconditionally and irrevocably waives: 
 (a) promptness, diligence, notice of acceptance,
presentment, demand for payment or performance, notice of nonpayment or nonperformance, default, acceleration, protest, notice of protest, or notices of dishonor, all notices of acceptance of this Guaranty or of the existence, creation or incurrence
of new or additional Obligations and any other notice with respect to any of the Obligations and this Guaranty and any requirement that any Secured Party protect, secure, perfect or insure any Lien or any property subject thereto, or exhaust any
right or take any action against any Obligor or any other Person (including any other guarantor) or entity or any collateral securing the Obligations, as the case may be; 

(b) any defense (i) it may now have or hereafter acquire in any way relating to any of the Guaranty Absolute Clauses,
(ii) arising by reason of any disability or other defense of the Borrower or any guarantor, or the cessation from any cause whatsoever (including any act or omission of the Lender) of the liability of the Borrower; or (iii) arising by
reason of any claim or defense based upon an election of remedies by any Secured Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights
of the Parent or other rights of the Parent to proceed against any of the other Secured Parties, any other guarantor or any other Person or any collateral; 
 (c) the benefit or right to (i) any statute of limitations affecting the Parent’s liability hereunder, or (ii) participate in any security now or hereafter held by any Secured Party;

 (d) to the fullest extent permitted by law, any and all other defenses, benefits or rights that may be derived
from or afforded by applicable law limiting the liability of or exonerating guarantors or sureties; 

  
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 (e) all setoffs and counterclaims; 

(f) any duty on the part of any Secured Party to disclose to such Subsidiary Guarantor any matter, fact or thing relating
to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other guarantor now or hereafter known by such Secured Party; and 

(g) any right to revoke this Guaranty, and further acknowledges that this Guaranty is continuing in nature and applies to
all Obligations, whether existing now or in the future. 
 SECTION 10.6 Postponement of Subrogation, etc.
The Parent agrees that it will not exercise any rights which it may acquire by way of rights of subrogation under any Loan Document to which it is a party, nor shall the Parent seek or be entitled to seek any contribution or reimbursement from any
Obligor, in respect of any payment made hereunder, under any other Loan Document or otherwise, until following the Termination Date. Any amount paid to the Parent on account of any such subrogation rights prior to the Termination Date shall be held
in trust for the benefit of the Secured Parties and shall immediately be paid and turned over to the Collateral Agent for the benefit of the Secured Parties in the exact form received by the Parent (duly endorsed in favor of the Collateral Agent, if
required), to be credited and applied against the Obligations, whether matured or unmatured, in accordance with Section 4.7; provided, that (a) if the Parent makes payment to the Secured Parties of all or any part of the
Obligations; and (b) the Termination Date has occurred; then at the Parent’s request, the Administrative Agent (on behalf of the Secured Parties) will, at the expense of the Parent, execute and deliver to the Parent appropriate documents
(without recourse and without representation or warranty) necessary to evidence the transfer by subrogation to the Parent of an interest in the Obligations resulting from such payment described in clause (a) above. In furtherance of the
foregoing, at all times prior to the Termination Date the Parent shall refrain from taking any action or commencing any proceeding against any Obligor (or its successors or assigns, whether in connection with a bankruptcy proceeding or otherwise) to
recover any amounts in respect of payments made under any Loan Document to any Secured Party. 
 SECTION 10.7
Payments Made by the Parent. The Parent agrees that all payments made by it in its capacity as a Guarantor hereunder will be made to the Collateral Agent in accordance with Sections 4.6 and 4.7. The Parent agrees to comply with and be bound
by the provisions of Sections 4.6 and 4.7 in respect of all payments made by it in its capacity as a Guarantor hereunder and the provisions of which Sections are hereby incorporated into and made a part of this Article X by this reference as if set
forth herein; provided, that references to the “Borrower” in such Sections shall be deemed to be references to the Parent. The Parent agrees that all payments made by it in its capacity as a Guarantor hereunder shall be applied upon
receipt as set forth in clause (b) of Section 4.7 

  
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 ARTICLE XI 
 ADMINISTRATIVE AGENT 
 SECTION 11.1 Appointment and
Authority. Each of the Lenders hereby irrevocably appoints Wilmington Trust, National Association to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for
the benefit of the Administrative Agent and the Lenders, and neither the Borrower nor any other Obligor shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term “agent”
herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.
Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. 
 SECTION 11.2 Rights as a Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent
hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the
Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders. 

SECTION 11.3 Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations except
those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent: 

(a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is
continuing; 
 (b) shall not have any duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the
Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the
Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture,
modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and 

  
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 (c) shall not, except as expressly set forth herein and in the other Loan
Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any
of its Affiliates in any capacity. 
 The Administrative Agent shall not be liable for any action taken or not taken by it
(i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as
provided in Sections 12.1 and 8.3) or (ii) in the absence of its own gross negligence or wilful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment. The Administrative Agent shall be
deemed not to have knowledge of any Default unless and until notice describing such Default is given in writing to the Administrative Agent by the Borrower or a Lender. 
 The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any
other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other
terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or
(v) the satisfaction of any condition set forth in Article 5 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 

SECTION 11.4 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be
genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition
is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 

SECTION 11.5 Delegation of Duties. Each of the Administrative Agent and the Collateral 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 or the Collateral Agent, as the case may be. Each of the Administrative
Agent and the Collateral Agent, as applicable, and any 

  
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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 the Collateral Agent, as applicable, 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 and as Collateral Agent, as applicable. Neither the Administrative Agent nor the Collateral Agent shall be responsible for the negligence or misconduct of any sub-agents except to the
extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent or the Collateral Agent, as applicable, acted with gross negligence or willful misconduct in the selection of such
sub-agents. 
 SECTION 11.6 Resignation of Administrative Agent. 

(a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower. Upon receipt
of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in
the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as
shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders, appoint a successor Administrative Agent meeting the
qualifications set forth above. Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date. 

(b) If the Person serving as Administrative Agent is 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 and such Person remove such Person as Administrative Agent and, in consultation with the Borrower, appoint a successor. If no such
successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such
removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date. 
 (c)
With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents
(except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders under any of the Loan Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such
time as a successor Administrative Agent is appointed) and (2) except for any indemnity payments or other amounts then owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by,
to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as 

  
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provided for above. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or removed) Administrative Agent (other than any rights to indemnity payments or other amounts owed to the retiring or removed Administrative Agent as of the Resignation Effective Date or the Removal Effective
Date, as applicable), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section).
The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent’s
resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 12.4 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent. 

SECTION 11.7 Non-Reliance on Administrative Agent and Other Lenders. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to
time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder. 

SECTION 11.8 Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding under any
Debtor Relief Law or any other judicial proceeding relative to any Obligor, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective
of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other
documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent
and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 3.3, 12.3 and 12.4) 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; 

  
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 and any custodian, receiver, interim receiver, assignee, trustee, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under
Sections 3.3, 12.3 and 12.4. 
 Nothing contained herein shall be deemed to authorize the Administrative
Agent to authorize or consent to or accept or adopt on behalf of any Lender any proposal or plan of reorganization, compromise, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 
 SECTION 11.9
Collateral and Guaranty Matters. Without limiting the provisions of Section 11.8, the Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion, 

(a) to release, or cause the Collateral Agent to release, any Lien on any property granted to or held by the
Administrative Agent or by the Collateral Agent 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 12.1, if approved, authorized or
ratified in writing by the Required Lenders; 
 (b) to subordinate, or cause the Collateral Agent to subordinate,
any Lien on any property granted to or held by the Administrative Agent or by the Collateral Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 7.2.3(e); and 

(c) to release any Guarantor from its obligations under the Guaranty and any Security Agreement executed and delivered by
it if such Person ceases to be a Subsidiary as a result of a transaction permitted under the Loan Documents, or ceases to be a Material Subsidiary in accordance with Section 7.1.12. 

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, or to cause the release or subordination of the Collateral Agent’s interest, in particular types or items of property, or to release or cause the release of any Guarantor from its obligations
under the Guaranty or any Security Agreement executed and delivered by it pursuant to this Section 11.9. 
 The
Administrative Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the collateral, the existence, priority or perfection of the
Administrative Agent’s Lien thereon, or any certificate prepared by any Obligor in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the
collateral. 

  
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 ARTICLE XII 
 MISCELLANEOUS PROVISIONS 
 SECTION 12.1 Waivers, Amendments,
etc. The provisions of each Loan Document (other than Cash Management Agreements, Rate Protection Agreements and the Administrative Agent Fee Letter, which shall be modified only in accordance with their respective terms) may from time to time
be amended, modified or waived, if such amendment, modification or waiver is in writing and consented to by the Borrower and the Required Lenders and acknowledged by the Administrative Agent; provided that, no such amendment, modification or waiver
shall: 
 (a) modify clause (b) of Section 4.7, Section 4.8 (as it relates to
sharing of payments) or this Section, in each case, without the consent of all Lenders; 
 (b) increase the
aggregate amount of any Loans required to be made by a Lender pursuant to its Commitments or extend the final Stated Maturity Date for any Lender’s Loan, in each case without the consent of such Lender; 

(c) reduce (by way of forgiveness), the principal amount of or reduce the rate of interest on any Lender’s Loan,
reduce any fees described in Article III payable to any Lender or extend the date on which interest or fees or any scheduled payment (but not prepayments) of principal are payable in respect of such Lender’s Loans, in each case without
the consent of such Lender; provided that, the vote of Required Lenders shall be sufficient to waive the payment, or reduce the increased portion, of interest accruing under Section 3.2.2; and provided, further that
the Stated Maturity Date in respect of all of the Loans and Commitments of any Lender in respect of the Loans may be extended with the consent of such Lender, and such consent shall be sufficient without the consent of the Required Lenders or any
other Person; 
 (d) reduce the percentage set forth in the definition of “Required Lenders” or modify
any requirement hereunder that any particular action be taken by all Lenders without the consent of all Lenders; 

(e) except as otherwise expressly provided in a Loan Document, release (i) the Parent or the Borrower from its
Obligations under the Loan Documents or all or substantially all of the value of the Guaranty or (ii) all or substantially all of the collateral under the Loan Documents, in each case without the consent of all Lenders; or 

(f) affect adversely the interests, rights or obligations of the Administrative Agent unless consented to by the
Administrative Agent. 
 No failure or delay on the part of any Secured Party in exercising any power or right under any Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on any Obligor in any case shall
entitle it to any notice or demand in similar or other circumstances. No waiver or approval by any Secured Party under any Loan Document shall, except as may be otherwise stated in such waiver or approval, be applicable to subsequent transactions.
No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. 

  
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 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 (z) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or
each affected Lender that by its terms affects any Defaulting Lender disproportionately and adversely relative to other affected Lenders shall require the consent of such Defaulting Lender. The rights of Sponsor Permitted Assignees are set forth in
and subject to Section 12.10.2(f). 
 Any term or provision of this Section 12.1 to the contrary
notwithstanding, if the Administrative Agent and the Borrower shall have jointly identified an obvious error or any error or omission of a technical or immaterial nature in any provision of the Loan Documents, then the Administrative Agent and the
Borrower shall be permitted to amend such provision and such amendment shall become effective without any further action or consent of any other party to any Loan Document. 

SECTION 12.2 Notices; Time. Except in the case of notices and other communications expressly permitted to be given
by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or
sent by facsimile as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 

(a) if to the Borrower or any other Obligor or the Administrative Agent, to the address, facsimile number, electronic mail
address or telephone number specified for such Person on Item 12.2 of the Disclosure Schedule; and 

(b) if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its
Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public information
relating to the Borrower). 
 Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to
have been given at the opening of business on the next Business Day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as
provided in such subsection (b). 

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

 Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address
shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and
(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii), if such notice, email or other communication is not sent during the normal business hours
of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient. 
 (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS
OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its Related
Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of
the Borrower’s, any Obligor’s or the Administrative Agent’s transmission of Borrower Materials through the Internet. 
 (c) Change of Address, Etc. Each of the Borrower and the Administrative Agent may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the
other parties hereto. Each other Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the Borrower and the Administrative Agent. In addition, each Lender agrees to notify the
Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other communications may be
sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of 

  
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such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public
Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the
“Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States Federal or state securities laws. 

(d) Reliance by Administrative Agent and Lenders. The Administrative Agent and the Lenders shall be entitled
to rely and act upon any notices (including telephonic or electronic Committed Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify the Administrative Agent, each Lender and the
Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other telephonic
communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording. 
 SECTION 12.3 Payment of Costs and Expenses. The Borrower and the Parent agree to pay on demand all reasonable expenses of the Agents (including the reasonable fees and out-of-pocket expenses of
Simpson Thacher & Bartlett LLP, U.S. counsel to the Agents, Goodmans LLP and Canadian counsel to the Agents); provided that any fees attributable to Loans shall be the primary liability of the Borrower, in connection with: 

(a) due diligence, appraisal, audit, insurance and consultant expenses of the Arranger; 

(b) the negotiation, preparation, execution and delivery of each Loan Document, including schedules and exhibits, and any
amendments, waivers, consents, supplements or other modifications to any Loan Document as may from time to time hereafter be required, whether or not the transactions contemplated hereby are consummated (including in the case of the Administrative
Agent and its Related Parties only, the administration of this Agreement and the other Loan Documents); 
 (c)
the filing or recording of any Loan Document (including the Filing Statements) and all amendments, supplements, amendment and restatements and other modifications to any thereof, searches made in jurisdictions where Filing Statements (or other
documents evidencing Liens in favor of the Secured Parties) have been recorded and any and all other documents or instruments of further assurance required to be filed or recorded by the terms of any Loan Document; and 

(d) the preparation and review of the form of any document or instrument relevant to any Loan Document. 

  
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 The Borrower further agrees to pay, and to save each Secured Party harmless from all
liability for, any stamp or other taxes which may be payable in connection with the execution or delivery of each Loan Document, the Loans or the issuance of the Notes. The Parent and the Borrower also agree to reimburse the Administrative Agent (in
the case of clauses (x) and (y) below) and each other Secured Party (in the case of clause (y) below) upon demand for all reasonable out-of-pocket expenses (including reasonable attorneys’ fees and legal
expenses of counsel to the Administrative Agent (and, in the case of clause (y) below, each other Secured Party)) incurred by the Administrative Agent (and, in the case of clause (y) below, each other Secured Party) in
connection with (x) the negotiation of any restructuring or “work-out” with the Borrower and the Parent, whether or not consummated, of any Obligations and (y) the enforcement of any Obligations. 

SECTION 12.4 Indemnification. In consideration of the execution and delivery of this Agreement by each Secured
Party, the Borrower hereby indemnifies, exonerates and holds each Agent and Secured Party and each of their respective Related Parties (collectively, the “Indemnified Parties”) free and harmless from and against any and all claims,
actions, causes of action, suits, litigations, proceedings, losses, costs, liabilities and damages, and expenses incurred in connection therewith, other than in connection with Taxes (unless such Taxes represent losses, claims or damages arising
from any non-Tax claim), irrespective of whether any such Indemnified Party is a party to the action for which indemnification hereunder is sought and including any actual or prospective claim, suit, litigation, investigation, cause of action or
proceeding and whether based in contract, tort or any other theory, including reasonable attorneys’ fees and disbursements, whether incurred in connection with actions between or among the parties hereto or the parties hereto and third parties
(collectively, the “Indemnified Liabilities”), incurred by the Indemnified Parties or any of them as a result of, or arising out of, or relating to: 

(a) any Loan or any use or proposed use of the proceeds of any Loan; 

(b) the entering into and performance of any Loan Document or any agreement or instrument contemplated by any Loan
Document by any of the Indemnified Parties; 
 (c) any investigation by a Governmental Authority, litigation or
proceeding related to any environmental cleanup, audit, compliance or other matter relating to the protection of the environment or the Release by any Obligor or any Subsidiary thereof of any Hazardous Material; 

(d) the presence on or under, or the escape, seepage, leakage, spillage, discharge, emission, discharging or releases
from, any real property owned or operated by any Obligor or any Subsidiary thereof of any Hazardous Material (including any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising under any Environmental Law),
regardless of whether caused by, or within the control of, such Obligor or Subsidiary; or 

  
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 (e) each Lender’s Environmental Liability (the indemnification herein
shall survive repayment of the Obligations and any transfer of the property of any Obligor or its Subsidiaries by foreclosure or by a deed in lieu of foreclosure for any Lender’s Environmental Liability, regardless of whether caused by, or
within the control of, such Obligor or such Subsidiary); 
 except for Indemnified Liabilities arising for the account of a particular
Indemnified Party by reason of such Indemnified Party’s gross negligence, willful misconduct or bad faith. The Obligors shall not be required to reimburse the legal fees and expenses of more than one outside U.S. counsel and one outside
Canadian counsel (in addition to up to one local counsel in each applicable local jurisdiction) for all Indemnified Parties under this Section 12.4 unless on advice of outside counsel to such Indemnified Parties, representation of all
such Indemnified Parties would be inappropriate due to the existence of an actual or potential conflict of interest (in which case the Obligors shall reimburse the reasonable fees and expenses of one additional U.S., Canadian and local counsel in
each relevant jurisdiction for each group of Indemnified Parties similarly situated that is subject to such conflict or potential conflict of interest). Each Obligor and its successors and assigns hereby waive, release and agree not to make any
claim or bring any cost recovery action against, any Indemnified Party under CERCLA or any state or provincial equivalent, or any similar law now existing or hereafter enacted in any relevant jurisdiction. It is expressly understood and agreed that
to the extent that any Indemnified Party is strictly liable under any Environmental Laws, each Obligor’s obligation to such Indemnified Party under this indemnity shall likewise be without regard to fault on the part of any Obligor with respect
to the violation or condition which results in liability of an Indemnified Party. If and to the extent that the foregoing undertaking may be unenforceable for any reason, each Obligor agrees to make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. To the extent permitted by applicable law, neither the Borrower nor the Parent shall assert, and the Borrower and the Parent hereby waive, any claim
against any Indemnified Party on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any other Loan
Document, any Loan or the use of the proceeds thereof. 
 To the extent that the Parent or the Borrower for any reason fails to indefeasibly pay
any amount required under this Section to be paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party of the Administrative Agent, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent)
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 share of the Total Credit Exposure at such
time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender), such payment to be made severally among them based on such Lenders’ Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought), provided, further 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 against any Related Party of the Administrative Agent (or any such sub-agent) in connection with such capacity. The obligations of the Lenders under this subsection (c) are several and not
joint. 
 SECTION 12.5 Survival. The obligations of the Parent and the Borrower under Sections
4.3, 4.4, 4.5, 4.6, 4.7, 12.3 and 12.4 shall in each case survive any assignment from one Lender to another and the occurrence of the Termination Date. The representations and warranties made by each
Obligor in each Loan Document shall survive the execution and delivery of such Loan Document. 

  
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 SECTION 12.6 Severability. Any provision of any Loan Document which
is prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of such Loan Document or
affecting the validity or enforceability of such provision in any other jurisdiction. The parties shall endeavor in good faith negotiations to replace the prohibited or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible. 
 SECTION 12.7 Headings. The various headings of each Loan Document are
inserted for convenience only and shall not affect the meaning or interpretation of such Loan Document or any provisions thereof. 
 SECTION 12.8 Execution in Counterparts, Effectiveness, etc. This Agreement may be executed by the parties hereto in several counterparts, each of which shall be an original and all of which shall
constitute together but one and the same agreement. This Agreement shall become effective when counterparts hereof executed and delivered on behalf of the Parent, the Borrower, the Administrative Agent, the Collateral Agent and each Lender, shall
have been received by the Administrative Agent. 
 SECTION 12.9 Governing Law; Entire Agreement. EACH
LOAN DOCUMENT (EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT) WILL EACH BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). The Loan Documents constitute the entire understanding among the parties hereto with respect to the subject matter thereof and supersede any prior agreements, written or oral, with respect thereto.

 SECTION 12.10 Successors and Assigns. 

SECTION 12.10.1 Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Obligor may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent
of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of Section 12.10.2, (ii) by way
of participation in accordance with the provisions of Section 12.10.4, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 12.10.5 (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 Section 12.10.4 and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement. 

  
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 SECTION 12.10.2 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 (in each case with respect to any facility provided in this
agreement) any such assignment shall be subject to the following conditions: 
 (a) Minimum Amounts.

 (i) in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment
under any Commitment and/or the Loans at the time owing to it (in each case with respect to any Commitment) or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (a)(ii) of this
Section 12.10.2 in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and 

(ii) in any case not described in subsection (a)(i) of this Section 12.10.2, the aggregate amount of
the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined
as of the date the Lender Assignment Agreement with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Lender Assignment Agreement, as of the Trade Date, shall not be less than
$1,000,000, in the case of any assignment in respect of the Commitment unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed). 
 (b) Proportionate Amounts. Each partial assignment shall be made as
an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned. 

(c) Required Consents. No consent shall be required for any assignment except to the extent required by
subsection (a)(ii) of this Section 12.10.2 and, in addition: 
 (i) the consent of the
Borrower (such consent not to be unreasonably withheld or delayed; provided that the Borrower shall be deemed to be reasonably withholding its consent in the event that such proposed assignment is to a Disqualified Lender) shall be required
unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided further, that the Borrower shall be deemed to
have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) days after having received notice thereof; and provided, however, that the Borrower’s consent
shall not be required during the primary syndication of the Commitments provided that Disqualified Lenders shall not be included in the primary syndication; and 

  
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 (ii) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender. 

(d) Lender Assignment Agreement. The parties to each assignment shall execute and deliver to the Administrative
Agent a Lender Assignment Agreement, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation
fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
 (e) No Assignment to Certain Persons. No such assignment shall be made (A) to the Borrower, the Sponsor (except as provided in Section 12.10.2(f)), any STM Investment Affiliate
(except as provided in Section 12.10.2(f)) or any of their respective Affiliates or Subsidiaries, (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of
the foregoing Persons described in this clause (B), (C) to a natural Person or (D) to a Disqualified Lender. 
 (f) (i) Subject to Section 12.10.2(a), (b), (c), (d) and this Section 12.10.2(f), any Lender shall have the right at any time to assign all or a portion
of its Loans to the Sponsor and its Affiliates and to any STM Investment Affiliate (other than, in each case, Parent and its Subsidiaries, any portfolio or operating company and any natural person) (the “Sponsor Permitted
Assignees”) to the extent (and only to the extent) that: 
 (A) the aggregate principal amount of all Loans which may
be assigned to the Sponsor Permitted Assignees shall in no event exceed, as calculated at the time of the consummation of any aforementioned assignments, 15% of the aggregate principal amount of the Loans outstanding at such time (such percentage,
the “Affiliated Lender Cap”); 
 (B) each Sponsor Permitted Assignee shall represent to the Lender assigning
such Loans and the Administrative Agent, and in the case such Sponsor Permitted Assignee is an assignor, to the prospective Lender assuming such Loans, as of the effective date of any assignment that neither it, nor any Person that directly or
indirectly Controls it, is in possession of any material non-public information regarding Parent, Borrower and its Subsidiaries, or their respective assets or securities, that has not been disclosed generally to the Lenders which are not
“public side” Lenders prior to such date; and 

  
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 (C) (i) the assigning Lender and the Sponsor Permitted Assignee purchasing such
Lender’s Loans shall execute and deliver to the Administrative Agent an assignment agreement substantially in the form of Exhibit J-1 hereto (a “Sponsor Permitted Assignee Assignment Agreement”) or such other form as may
be provided to by the Administrative Agent to Borrower and which other form is reasonably acceptable to the Administrative Agent and (ii) the Administrative Agent shall have consented to such assignment (such consent not to be withheld unless
the Agent shall believe that Section 12.10.2 would be violated by such assignment). 
 (ii)
Notwithstanding anything to the contrary in this Agreement, no Sponsor Permitted Assignee shall have any right to (A) attend (including by telephone) any meeting or discussions (or portion thereof) among the Administrative Agent or any Lender
to which representatives of the Obligors are not invited, or (B) receive any information or material prepared by Administrative Agent or any Lender or any communication by or among Administrative Agent and/or one or more Lenders, except to the
extent such information or materials have been made available to any Obligor or its representatives. 
 (iii)
Notwithstanding anything in Section 12.1 or the definitions of “Required Lenders” to the contrary, for purposes of determining whether the Required Lenders, all affected Lenders or all Lenders (except as provided in the second
proviso to this clause (iii)) have (A) consented (or not consented) to any amendment, modification, waiver, consent or other action with respect to any of the terms of any Loan Document or any departure by any Obligor therefrom,
(B) otherwise acted on any matter related to any Loan Document, or (C) directed or required the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) with respect to or under any Loan Document, a
Sponsor Permitted Assignee shall be deemed to have voted its interest as a Lender without discretion in the same proportion as the allocation of voting with respect to such matter by Lenders who are not Sponsor Permitted Assignees; and in
furtherance of the foregoing, the Sponsor Permitted Assignee agrees to execute and deliver to the Administrative Agent any instrument reasonably requested by the Administrative Agent to evidence the voting of its interest as a Lender in accordance
with the provisions of this Section 12.10.2(f); provided that if the Sponsor Permitted Assignee fails to promptly execute such instrument such failure shall in no way prejudice any of the Administrative Agent’s or any
Lender’s rights under this paragraph; provided, further that a Sponsor Permitted Assignee shall be entitled to vote on any matter referred to in Section 12.1(b) or (c) that proposes to treat any Obligations
held by such Sponsor Permitted Assignee in a manner that is less favorable in any material respect to such Sponsor Permitted Assignee than the proposed treatment of similar Obligations held by Lenders that are not Affiliates of the Borrower.

  
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 (iv) Each assignment to a Sponsor Permitted Assignee pursuant to this
Section 12.10.2(f) shall be subject to the following limitations: 
 (I) (A) unless otherwise agreed to in writing
by the Required Lenders, regardless of whether consented to by the Administrative Agent or otherwise, no assignment which would result in Affiliated Lenders holding in excess of such Affiliated Lender Cap shall be effective with respect to such
excess amount of the Loans (and such excess assignment shall be and be deemed null and void); provided that each of the parties hereto agrees and acknowledges that the Administrative Agent shall not be liable for any losses, damages,
penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever incurred or suffered by any Person in connection with any compliance or non-compliance with this clause (iv)(I) or any
purported assignment exceeding such 15% limitation or for any assignment being deemed null and void hereunder and (B) in the event of an acquisition pursuant to the last sentence of this subclause (iv) which would result in the Affiliated
Lender Cap being exceeded, the most recent assignment to an Affiliate of the Sponsor involved in such acquisition shall be unwound and deemed null and void to the extent that the Affiliated Lender Cap would otherwise be exceeded; and 

(II) as a condition to each assignment pursuant to this clause (f), the Administrative Agent shall have been provided a notice
substantially in the form of Exhibit J-2 in connection with each assignment to a Sponsor Permitted Assignee or a Person that upon effectiveness of such assignment would constitute a Sponsor Permitted Assignee, and (without limitation of the
provisions of clause (I) above) shall be under no obligation to record such assignment in the Assignment Register until three (3) Business Days after receipt of such notice. 

Each Sponsor Permitted Assignee agrees to notify the Administrative Agent promptly (and in any event within 10 Business
Days) if it acquires any Person who is also a Lender, and each Lender agrees to notify the Administrative Agent promptly (and in any event within 10 Business Days) if it becomes a Sponsor Permitted Assignee. Such notice shall contain the type of
information required and be delivered to the same addressee as set forth in Exhibit J-2. 
 (v) Notwithstanding
anything in this Agreement or the other Loan Documents to the contrary, each Sponsor Permitted Assignee hereby agrees that, if a proceeding under any Debtor Relief Law shall be commenced by or against a Borrower or any other Obligor at a time when
such Lender is a Sponsor Permitted Assignee, such Sponsor Permitted Assignee irrevocably authorizes and empowers the Administrative Agent to vote on behalf of such Sponsor Permitted Assignee with respect to the Loans held by such Sponsor Permitted
Assignee in any manner in the Administrative Agent’s sole discretion, unless the Administrative Agent instructs such Sponsor Permitted Assignee to vote, in which case such Sponsor Permitted Assignee shall vote with respect to the Loans held by
it as the Administrative Agent directs; provided that such Sponsor Permitted Assignee shall be entitled to vote in accordance with its sole discretion (and not in accordance with the direction of the Administrative Agent) in connection with

  
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any plan of reorganization to the extent any such plan of reorganization proposes to treat any Obligations held by such Sponsor Permitted Assignee in a manner that is less favorable in any
material respect to such Sponsor Permitted Assignee than the proposed treatment of similar Obligations held by Lenders that are not Affiliates of the Borrower. 
 (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 Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright
payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested
but not funded by 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
or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans. 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. 
 (g) Tax Forms. The assignee shall (i) provide the Borrower with administrative
detail information, (ii) to the extent the applicable tax forms are required under Section 4.6(f) hereof, provide the Borrow and the Administrative Agent with the applicable tax forms and (iii) otherwise comply with Section 4.6
hereof. 
 Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 12.10.3, from
and after the effective date specified in each Lender Assignment Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Lender Assignment Agreement, 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 Lender Assignment Agreement, be released from its obligations under this Agreement (and, in the case of a Lender Assignment
Agreement 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 4.3, 4.4, 4.5, 4.6 and 12.4 with
respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver
or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. Upon request, the Borrower (at its expense) shall execute and deliver one or more Notes 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 Section 12.10.4. 

  
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 SECTION 12.10.3 Assignment Register. The Administrative Agent, acting solely for this
purpose as an agent of the Borrower (and such agency being solely for tax purposes), shall maintain at one of its offices a copy of each Lender Assignment Agreement delivered to it (or the equivalent thereof in electronic form) and a register for
the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Assignment
Register”). The entries in the Assignment Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Assignment Register pursuant to
the terms hereof as a Lender hereunder for all purposes of this Agreement. The Assignment Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 SECTION 12.10.4 Participations. 

(a) Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural Person, a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or
obligations under this Agreement (including all or a portion of 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) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 12.4 without regard to the existence of any participation. 

(b) 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 Section 12.1(a) through (f) that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections
4.3, 4.4, 4.5 and 4.6 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 12.10.2; provided that such Participant (A) agrees to be subject to the
provisions of Section 4.6 as if it were an assignee under Section 12.10.2 and (B) shall not be entitled to receive any greater payment under Sections 4.3, 4.4, 4.5 or 4.6 with respect to any
participation, than the Lender from whom it acquired the applicable participation would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant
acquired the applicable participation and such Change in Law would have had a similar impact on the Lender from whom the Participant acquired such 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 4.6 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of
Section 4.9 as though it were a 

  
 105

 
Lender; provided that such Participant agrees to be subject to Section 4.8 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this
purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and 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 or its other Obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan or other Obligation is in registered
form under Section 5f.103-1(c) of the United States Treasury Regulations, provided, further, that any Participant claiming the benefits of Section 4.6 shall be required to provide the documentation required under
Section 4.6. 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. Any Lender
that sells a participating interest in any Loan, Commitment or other interest to a Participant under this Section shall indemnify and hold harmless the Borrower and the Administrative Agent from and against any Taxes, penalties, interest or other
costs or losses (including reasonable attorneys’ fees and expenses) incurred or payable by the Borrower or the Administrative Agent as a result of the failure of the Borrower or the Administrative Agent to comply with its obligations to deduct
or withhold any Taxes from any payments made pursuant to this Agreement to such Lender or the Administrative Agent, as the case may be, which Taxes would not have been incurred or payable if such Participant had complied with Section 4.6 as if
it were a Lender, including delivering documentation to the Borrower and the Administrative Agent under Section 4.6(f) on or prior to the date on which it became a Participant; provided that the foregoing shall not apply if the Borrower
fails to approve an assignment for a reason other than (x) the proposed assignee is a Disqualified Lender or (y) the proposed assignee did not provide the requisite tax forms, and such proposed assignment is settled as a participation.

 SECTION 12.10.5 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 any of its Notes) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or to the Bank of Canada; 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. 

SECTION 12.11 Other Transactions. Nothing contained herein shall preclude the Administrative Agent or any Lender
from engaging in any transaction, in addition to those contemplated by the Loan Documents, with any Obligor or any of its Affiliates in which such Obligor or such Affiliate is not restricted hereby from engaging with any other Person. 

  
 106

 SECTION 12.12 Forum Selection and Consent to Jurisdiction. THE
BORROWER AND EACH OTHER 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
ADMINISTRATIVE AGENT, 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 THE BOROUGH OF MANHATTAN OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE COURT THEREFROM. EACH PARTY 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. THE BORROWER AND EACH OTHER OBLIGOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN SECTION 12.2. THE BORROWER AND EACH OTHER OBLIGOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION
WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE BORROWER OR
THE PARENT HAS OR HAVE OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, EACH OF THE PARENT AND THE BORROWER HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN
DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY HAVE TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OBLIGOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

SECTION 12.13 Service of Process, Appointment of Process Agent. THE PARENT HEREBY IRREVOCABLY APPOINTS CORPORATION
SERVICE COMPANY (THE “PROCESS AGENT”), WITH AN OFFICE ON THE DATE HEREOF AT 80 STATE STREET, ALBANY, NEW YORK 12207, UNITED STATES, AS ITS AGENT TO RECEIVE, ON ITS BEHALF AND ON BEHALF OF ITS PROPERTY, SERVICE OF COPIES OF THE
SUMMONS AND COMPLAINT AND ANY OTHER PROCESS WHICH MAY BE SERVED IN ANY ACTION OR PROCEEDING DESCRIBED IN SECTION 12.12. SUCH SERVICE MAY BE MADE BY MAILING OR DELIVERING A COPY OF SUCH PROCESS TO SUCH 

  
 107

 
OBLIGOR IN CARE OF THE PROCESS AGENT AT THE PROCESS AGENT’S ABOVE ADDRESS, AND SUCH OBLIGOR HEREBY IRREVOCABLY AUTHORIZES AND DIRECTS THE PROCESS AGENT TO ACCEPT SUCH SERVICE ON ITS BEHALF.
AS AN ALTERNATIVE METHOD OF SERVICE, THE BORROWER AND EACH OTHER OBLIGOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES
SPECIFIED IN SECTION 12.2. 
 SECTION 12.14 Waiver of Jury Trial. THE ADMINISTRATIVE AGENT, EACH
LENDER, THE PARENT AND THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, EACH LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, SUCH LENDER, THE PARENT OR THE BORROWER IN CONNECTION THEREWITH. EACH OF THE PARENT AND
THE BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
ADMINISTRATIVE AGENT AND EACH LENDER ENTERING INTO THE LOAN DOCUMENTS. EACH PARTY HERETO CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND 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. 
 SECTION 12.15 No Immunity. To the extent that any Obligor may be or become entitled, in any
jurisdiction in which judicial proceedings may at any time be commenced with respect to this Agreement or any other Loan Document, to claim for itself or its property any immunity from suit, court jurisdiction, attachment prior to judgment,
attachment in aid of execution of a judgment, execution of a judgment or from any other legal process or remedy relating to its obligations under this Agreement or any other Loan Document, and to the extent that in any such jurisdiction there may be
attributed such an immunity (whether or not claimed), each of the Obligors hereby irrevocably agrees not to claim and hereby irrevocably waives such immunity to the fullest extent permitted by the laws of such jurisdiction and agrees that the
foregoing waiver shall have the fullest extent permitted under the Foreign Sovereign Immunities Act of 1976 of the United States of America and is intended to be irrevocable for purposes of such Act. 

  
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 SECTION 12.16 Judgment Currency. If, for the purpose of obtaining
judgment in any court, it is necessary to convert a sum due hereunder, under any Note or under any other Loan Document in another currency (the “Payment Currency”) into U.S. Dollars or into Canadian Dollars, as the case may be (the
“Judgment Currency”), the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which, in accordance with normal banking procedures, the applicable Secured Party
could purchase such other currency with U.S. Dollars in New York City or Canadian Dollars in Toronto, at the close of business on the Business Day immediately preceding the day (the “Judgment Conversion Date”) on which final
judgment is given, together with any premiums and costs of exchange payable in connection with such purchase. If there is a change in the applicable rate of exchange between the Judgment Conversion Date and the date of actual payment of the amount
due, the Parent and the Borrower shall pay to the applicable Secured Party such additional amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate of exchange on the date of payment, will
produce the amount of the Payment Currency which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the rate of exchange on the Judgment Conversion Date. 

SECTION 12.17 PATRIOT Act Notification. Each Lender that is subject to the Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it
is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to
identify the Borrower in accordance with the Act. The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in
order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Act. 

SECTION 12.18 Defaulting Lenders. 
 SECTION 12.18.1 Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a
Defaulting Lender, to the extent permitted by applicable Law: 
 (a) 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 12.1. 

(b) Defaulting Lender Waterfall. 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 12.10.2(g) 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, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in 

  
 109

 
respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; third, if so determined by the
Administrative 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 Loans under this Agreement; fourth, 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 fifth, 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 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 conditions set forth in Section 5.2 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. 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) shall be deemed paid to and redirected by such Defaulting Lender, and
each Lender irrevocably consents hereto. 
 (c) Certain Fees. No Defaulting Lender shall be entitled to
receive any fee payable under Section 3.3 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). 
 SECTION 12.18.2 Defaulting Lender Cure. If the Borrower and the Administrative Agent 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, 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 to be held on a pro rata basis by the
Lenders in accordance with their respective Term Loan Percentages, 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. 
 SECTION 12.19 Confidentiality. Each of the Administrative Agent, the Lenders and the Collateral Agent agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (i) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and other 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), (ii) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance Commissioners), (iii) to the extent required 

  
 110

 
by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v) 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, (vi) subject to an agreement containing provisions substantially similar as those of
this Section 12.19, to (x) any Assignee Lender of or Participant in, or any prospective Assignee Lender of or Participant in, any of its rights or obligations under this Agreement or (y) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (vii) with the consent of the Parent or (viii) to the extent such Information (x) becomes publicly available other than as a result
of a breach of this Section 12.19 or (y) becomes available to any Secured Party or any of their respective Affiliates on a nonconfidential basis from a source other than the Parent or the Borrower. For purposes of this
Section 12.19, “Information” means all information received from or on behalf of the Parent or its Subsidiaries relating to the Parent or Subsidiary of a Parent or any of their respective businesses, other than any such
information that was available to any Secured Party on a nonconfidential basis prior to disclosure by the Parent or any of its Subsidiaries, provided that, in the case of any such information received from the Parent or any of its
Subsidiaries 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 12.19 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. Any term or provision hereof to
the contrary notwithstanding, the Borrower and the Parent hereby acknowledge and agree that the Administrative Agent shall be permitted to disclose to all Lenders, Participants and prospective Lenders and Participants (by electronic means or
otherwise) (x) all financial information provided pursuant to clauses (a) and (b) of Section 7.1.1 and (y) unless otherwise notified in writing by the Borrower, all other financial information provided
to the Administrative Agent pursuant to Section 7.1.1 or otherwise, in each case as if such information had been filed by the Parent or the Borrower with the SEC on Form 10K or another periodic report (whether or not the Parent or the
Borrower is an issuer of securities pursuant to Section 12 of the Securities Act of 1933, as amended, at such time). 
 SECTION 12.20 Intercreditor Agreement. 
 (a) Each Lender
grants the Administrative Agent the power to enter into the Intercreditor Agreement and to bind such Lender to the provisions thereof. Notwithstanding anything herein to the contrary, the Lien and security interest granted pursuant to this Agreement
and the exercise of any right or remedy hereunder are subject to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor
Agreement shall govern and control except as expressly set forth in the Intercreditor Agreement. 
 (b) The
delivery of any Collateral (as defined in any Loan Document) or any certificates, titles, Instruments, Chattel Paper or Documents evidencing or in connection with such Collateral to the First Lien Collateral Agent under and in accordance with the
First Lien Loan Documents, the granting of “control” over Collateral, the execution and 

  
 111

 
delivery of control agreements and/or the assignment of any Collateral (as defined in any Loan Document) to the First Lien Collateral Agent under and in accordance with the First Lien Loan
Documents shall constitute compliance by the Obligors with the provisions of this Agreement or any other Loan Document which require delivery, possession, control and/or assignment of certain types of Collateral (as defined in any Loan Document) by
the Collateral Agent or delivery of control agreements to the Collateral Agent so long as such First Lien Loan Documents are in full force and effect, the Discharge of First Lien Obligations has not occurred, and the Obligors are in compliance with
the applicable provisions thereof with respect to such Collateral. From and after the Discharge of First Lien Obligations, where this Agreement refers to any provision of the First Lien Credit Agreement or any action or delivery required by such
provision, such reference shall be deemed to be a reference to such provision as in effect immediately prior to the Discharge of First Lien Obligations except that such action or delivery shall be made to or for the benefit of the Collateral Agent
rather than the Collateral Agent and the First Lien Collateral Agent collectively. Capitalized terms used in this clause (b) not otherwise defined in this Agreement shall have the meanings provided in the UCC. 

  
 112

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

			
	MITEL NETWORKS CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:
	
	Address for Notices:
	
	 350 Legget Drive,

Kanata, Ontario, K2K 2W7
 Attention:
Treasurer
 Telephone: (613) 592-2122 ext 4451
 Fax: (613) 592-7838
 Copy to:
 Attention: Legal Department
 Fax: (613) 592-7802

 
			
	MITEL US HOLDINGS, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	Address for Notices:
	
	 350 Legget Drive,

Kanata, Ontario, K2K 2W7
 Attention:
Treasurer
 Telephone: (613) 592-2122 ext 4451
 Fax: (613) 592-7838
 Copy to:
 Attention: Legal Department
 Fax: (613) 592-7802

  

  
 2 

 WILMINGTON TRUST, NATIONAL ASSOCIATION, 
 as Administrative Agent and as Collateral Agent, 
  

			
	By:	 	  

	Name:	 	
	Title:	 	

			
	 [            ],

as a Lender,

		
	By:	 	 
	 Name:
 Title:
	 	

 EXHIBIT A 
 FORM OF 
 NOTE 

 

			
	$                        	  	                        
        , 20        

 FOR VALUE RECEIVED, Mitel US Holdings, Inc., a Delaware corporation (the “Borrower”), promises to pay,
without setoff or counterclaim, to the order of [NAME OF LENDER] (the “Lender”) on the Stated Maturity Date, the principal sum of             U.S. DOLLARS
($            ) or, if less, the aggregate unpaid principal amount of all Loans made by the Lender pursuant to the Second Lien Credit Agreement, dated as of February 27, 2013 (as
amended, supplemented, amended and restated or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, Mitel Networks Corporation, a company organized under the laws of Canada
(the “Parent”), the various financial institutions and other Persons (as defined therein) (including Assignee Lenders) from time to time parties thereto, as the lenders and Wilmington Trust, National Association, as the
Administrative Agent and the Collateral Agent. Terms used in this Note, unless otherwise defined herein, have the meanings provided in the Credit Agreement. 
 The Borrower also promises to pay interest on the unpaid principal amount hereof from time to time outstanding from the date hereof until the Stated Maturity Date (whether by acceleration or otherwise)
and, after the Stated Maturity Date, until paid, at the rates per annum and on the dates specified in the Credit Agreement. 

Payments of both principal and interest are to be made in U.S. Dollars in same day or immediately available funds to the account
designated by the Administrative Agent pursuant to the Credit Agreement. 
 This Note is one of the Notes referred to in, and
evidences Indebtedness incurred under, the Credit Agreement, to which reference is made for a description of the security for this Note and for a statement of the terms and conditions on which the Borrower is permitted and required to make
prepayments and repayments of principal of the Indebtedness evidenced by this Note and on which such Indebtedness may be declared to be immediately due and payable. 
 All parties hereto, whether as makers, endorsers or otherwise, severally waive presentment for payment, demand, protest and notice of dishonor. 

  

Exhibit A-1 

 THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK. (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 

 

			
	MITEL US HOLDINGS, INC.
		
	By:	 	  

		 	 Name:

Title:

  

Exhibit A-2 

 LOANS AND PRINCIPAL PAYMENTS 

 

																			
	 Date
	  	 Amount of Loan Made
	  	Interest
Period	  	Amount of Principal Repaid	  	Unpaid Principal Balance	  	Notation Made
By
	  	 Alternate
Base Rate
	  	LIBO Rate	  	  	Alternate
Base Rate	  	LIBO Rate	  	Alternate
Base Rate	  	LIBO Rate	  	Total	  

  

Exhibit A-3 

 EXHIBIT B 
 FORM OF 
 BORROWING REQUEST 

Wilmington Trust, National Association 

  as Administrative Agent 
 50 South
Sixth Street, Suite 1290 
 Minneapolis, MN 55402 
 Attn: Renee Kuhl 
 Phone: 1.612.217.5635 
 Fax: 1.612.217.5651 
 Email: rkuhl@wilmingtontrust.com 

MITEL US HOLDINGS, INC. 

Ladies and Gentlemen: 
 This Borrowing Request
is delivered to you pursuant to Section 2.3 of the Second Lien Credit Agreement, dated as of February 27, 2013 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Credit
Agreement”), among Mitel US Holdings, Inc., a Delaware corporation (the “Borrower”) , Mitel Networks Corporation, a company organized under the laws of Canada (the “Parent”), the various financial
institutions and other Persons (as defined therein) (including any Assignee Lenders) from time to time parties thereto, as the Lenders and Wilmington Trust, National Association, as the Administrative Agent and the Collateral Agent. Terms used in
this Borrowing Request, unless otherwise defined herein, have the meanings provided in the Credit Agreement. 
 [The Borrower
hereby requests that a Loan be made in the aggregate principal amount of $            on             ,
            as an [Alternate Base Rate Loan] [LIBO Rate Loan having an Interest Period of
            months]]. 
 The Borrower hereby acknowledges
that, pursuant to Section 5.2.2 of the Credit Agreement, each of the delivery of this Borrowing Request and the acceptance by the Borrower of the proceeds of the Loans requested hereby constitutes a representation and warranty by the Borrower
that, on the date of the making of such Loans, and both before and after giving effect thereto and to the application of the proceeds therefrom, all statements set forth in Section 5.2.1 of the Credit Agreement are true and correct. 

The Borrower agrees that if prior to the time of the Borrowing requested hereby any matter certified to herein by it will not be true and
correct in all material respects at such time as if then made, it will immediately so notify the Administrative Agent. Except to the extent, if any, that prior to the time of the Borrowing requested hereby the Administrative Agent shall receive
written notice to the contrary from the Borrower, each matter certified to herein shall be deemed to be certified as true and correct in all material respects at the date of such Borrowing as if then made. 

  

Exhibit B-1 

 Please wire transfer the proceeds of the Borrowing to the accounts of the following persons
at the financial institutions indicated respectively: 
  

									
	 	  	 Person to be Paid
	  	 
	 Amount to be

Transferred
	  	 Name
	  	 Account No.
	  	 Name, Address, etc.

of Transferee Lender

		  		  		  	  

		  		  		  	  

	 $
	  	  
	  	  
	  	Attention:	  	  

		  		  		  	  

		  		  		  	  

	 $
	  	  
	  	  
	  	Attention:	  	  

		  		  		  	  

		  		  		  	  

	 $
	  	  
	  	  
	  	Attention:	  	  

		  		  		  	  

		  		  		  	  

	 Balance of such proceeds
	  	Borrower	  	  
	  	Attention:	  	  

  

  

Exhibit B-2 

 IN WITNESS WHEREOF, the Borrower has caused this Borrowing Request to be executed and
delivered, and the certifications and warranties contained herein to be made, by its duly Authorized Officer this             day of
            ,             . 
  

			
	MITEL US HOLDINGS, INC.
		
	By:	 	  

		 	 Name:

Title:

  

Exhibit B-3 

 EXHIBIT C 
 FORM OF 
 CONTINUATION/CONVERSION NOTICE 

[            ,
            ] 
 Wilmington Trust, National Association 

  as Administrative Agent 
 50 South
Sixth Street, Suite 1290 
 Minneapolis, MN 55402 
 Attn: Renee Kuhl Phone: 1.612.217.5635 
 Fax: 1.612.217.5651 

Email: rkuhl@wilmingtontrust.com 

MITEL US HOLDINGS, INC., 

Ladies and Gentlemen: 
 This
Continuation/Conversion Notice is delivered to you pursuant to Section 2.4 of the Second Lien Credit Agreement, dated as of February 27, 2013 (as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), among Mitel US Holdings, Inc., a Delaware corporation (the “Borrower”) , Mitel Networks Corporation, a company organized under the laws of Canada (the “Parent”), the
various financial institutions and other Persons (as defined therein) (including any Assignee Lenders) from time to time parties thereto, as the Lenders and Wilmington Trust, National Association, as the Administrative Agent and the Collateral
Agent. Terms used herein, unless otherwise defined herein, have the meanings provided in the Credit Agreement. 
 The Borrower
hereby requests that on             ,             , 

(1) $            of the presently outstanding principal amount
of the Loans originally made on             ,             , presently being maintained as [Alternate Base Rate Loans][LIBO Rate
Loans], 
 (2) be [converted into] [continued as], 

(3) [LIBO Rate Loans having an Interest Period of [1][2][3][6] months]1 [Alternate Base Rate Loans]. 

The Borrower hereby: 
  

 

	1 	 May select any other Interest Period of 12 months or fewer if consented to by all Lenders. 

  

Exhibit C-1 

 (a) certifies and warrants that no Default has occurred and is continuing;
and 
 (b) agrees that if prior to the time of the [continuation] [conversion] requested
hereby any matter certified to herein by it will not be true and correct in all material respects at such time as if then made, it will immediately so notify the Administrative Agent. 
 Except to the extent, if any, that prior to the time of the [continuation] [conversion] requested hereby the Administrative Agent shall receive written notice to the contrary from the
Borrower, each matter certified to herein shall be deemed once again to be certified as true and correct in all material respects at the date of such [continuation] [conversion] as if then made. 

  

Exhibit C-2 

 IN WITNESS WHEREOF, the Borrower has caused this Continuation/Conversion Notice to be
executed and delivered, and the certifications and warranties contained herein to be made, by its duly Authorized Officer this             day of
            ,             . 
  

			
	MITEL US HOLDINGS, INC.
		
	By:	 	  

		 	 Name:

Title:

  

Exhibit C-3 

 EXHIBIT D 
 FORM OF 
 LENDER ASSIGNMENT AGREEMENT 

(Second Lien Credit Agreement) 
 This Lender Assignment Agreement (this “Assignment”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Second Lien Credit Agreement identified below (the
“Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made
a part of this Assignment as if set forth herein in full. 
 For an agreed consideration, the Assignor hereby irrevocably sells
and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent, as contemplated below, the interest in and to all of the Assignor’s rights and obligations under the Credit Agreement and any other documents or instruments delivered pursuant thereto that represents the amount and
percentage interest identified below of all of the Assignor’s outstanding rights and obligations under the respective facilities identified below (including, to the extent included in any such facilities, Letters of Credit) (the
“Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment, without representation or warranty by the Assignor or the Administrative Agent. Any such sale
or assignment to a Disqualified Lender shall be void ab initio, unless such sale or assignment is approved by the Borrower. 
  

					
	1.	  	Assignor:	  	
			
	2.	  	Assignee:	  	                            [and is an
[existing Lender][Affiliate of an existing Lender][Approved Fund]]1
			
	3.	  	Administrative Agent:	  	Wilmington Trust, National Association as the Administrative Agent under the Credit Agreement.

  
  

	1 	 Select as applicable 

  

Exhibit D-1 

					
	4.	  	Credit Agreement:	  	The Second Lien Credit Agreement, dated as of February 27, 2013 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Credit
Agreement”) among Mitel US Holdings, Inc., a Delaware corporation (the “Borrower”), Mitel Networks Corporation, a company organized under the laws of Canada (the “Parent”), the various financial institutions and other
Persons (as defined therein) (including any Assignee Lenders) from time to time parties thereto, as the Lenders and Wilmington Trust, National Association, as the Administrative Agent and the Collateral Agent.
			
	5.	  	Assigned Interest:	  	

  

									
	 Aggregate Amount of Loans
 for all Lenders
	  	Amount of Loans Assigned	 	  	Percentage Assigned of 
Loans2	 
	 $
	  	$	            	  	  	 	            	% 

 Effective Date:             ,
20            (the “Effective Date”) [TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE ASSIGNMENT REGISTER
THEREFOR.] 
  
  

	2 	 Set forth, to at least 9 decimals, as a percentage of the Loans of all Lenders thereunder. 

  

Exhibit D-2 

 The terms set forth in this Assignment are hereby agreed to: 

 

			
	ASSIGNOR
	        [NAME OF ASSIGNOR]
		
	By:	 	  

		 	 Name:

Title:

	
	ASSIGNEE
	        [NAME OF ASSIGNEE]
		
	By:	 	  

		 	 Name:

Title:

	
	Accepted and Acknowledged this             day of
            ,             :
	
	 WILMINGTON TRUST, NATIONAL ASSOCIATION

        as Administrative Agent

		
	By:	 	  

		 	 Name:

Title:

  

Exhibit D-3 

 
			
	[Accepted and Acknowledged
	 this          day of
            ,          :
  

	MITEL NETWORKS CORPORATION
		
	By:	 	  

		 	 Name:
 Title:]3

  

	3 	 If required. 

  

Exhibit D-4 

 ANNEX 1 
 STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT 
 AND ASSUMPTION AGREEMENT

 1. Representations and Warranties. 
 1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or in connection with any Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other Loan Document or any collateral thereunder, (iii) the financial condition of the Borrower, any of its respective Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the
performance or observance by the Borrower, any of its respective Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 
 1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and to
consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement (other than any requirement that it be approved by the
Administrative Agent or the Borrower), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder,
(iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to the Section 7.1.1 thereof, and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Assignment and to purchase the Assigned Interest on the basis of which it has made such analysis and decision, (v) if necessary, attached hereto is any documentation required to be
delivered by it pursuant to Section 4.6 of the Credit Agreement, duly completed and executed by the Assignee, and (vi) after reviewing the entire Item 1.01 of the Disclosure Schedule, it is not a Disqualified Lender; and
(b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Documents, and (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
(and, specifically, as a Lender of the Loans for which it is taking an assignment hereunder). 
 2. Payments. From and
after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the
Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date. 

  

Exhibit D-5 

 3. Consent. Notwithstanding any other provisions hereof, to the extent the approvals
or consents of or notice to the Borrower and/or the Administrative Agent are required for the Assignee to be an “Eligible Assignee” or under Section 12.10.2 of the Credit Agreement, the assignment and delegation contemplated in this
Assignment shall not be effective unless such approvals, consents or notices shall have been obtained and in any event no such assignment and delegation shall be effective unless and until such assignment has been recorded in the Assignment Register
by the Administrative Agent. 
 4. General Provisions. This Assignment shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns. This Assignment may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment. This Assignment shall be governed by, and construed in accordance with, the law of the State of New York. 

  

Exhibit D-6 

 EXHIBIT E 
 FORM OF 
 COMPLIANCE CERTIFICATE 

(Credit Agreement) 
 MITEL NETWORKS CORPORATION 
 This Compliance Certificate (this
“Certificate”) is delivered by Mitel Networks Corporation (the “Parent”), a company organized under the laws of Canada pursuant to clause (c) of Section 7.1.1 of that certain Second Lien Credit Agreement,
dated as of February 27, 2013 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Credit Agreement”), among the Parent, Mitel US Holdings, Inc., a Delaware corporation (the
“Borrower”), the various financial institutions and other Persons (as defined therein) (including any Assignee Lenders) from time to time parties thereto, as the Lenders and Wilmington Trust, National Association, as the
Administrative Agent and the Collateral Agent. Terms used herein, unless otherwise defined herein, have the meanings provided in the Credit Agreement. 
 This Certificate relates to the             [Fiscal Quarter] [Fiscal Year], commencing on
            ,             and ending on             ,
            (such latter date being the “Computation Date”). 
 The undersigned is duly authorized to execute and deliver this Certificate on behalf of the Parent. By executing this Certificate each of the undersigned hereby certifies to the Administrative Agent and
Lenders that as of the Computation Date: 
 (a) Attached hereto as Annex I 

[are the unaudited consolidated balance sheets of the Parent and its Subsidiaries as at the Fiscal Quarter ended
[            ] and the consolidated statements of income and cash flow of the Parent and its Subsidiaries for such Fiscal Quarter and for the period commencing at the end of the previous
Fiscal Year and ending with the end of such Fiscal Quarter, including, in each case, in comparative form the figures for the corresponding Fiscal Quarter in, and year to date portion of, the immediately preceding Fiscal Year, certified as complete
and correct by the chief financial or accounting Authorized Officer of the Parent (subject to normal year-end audit adjustments)]1 
 [are copies of the consolidated balance sheets of the Parent and its Subsidiaries, and the related consolidated statements of income and cash flow of the Parent and its Subsidiaries, for the Fiscal Year
ended [            ], setting forth in comparative form the figures for the immediately preceding Fiscal Year, audited (without any Impermissible Qualification) by
[            ], an independent public accountant acceptable to the 

 

	1 	 INCLUDE FOR QUARTERLY FINANCIAL DELIVERABLES. 

  

Exhibit E-1 

 
Administrative Agent, which shall includes a calculation of the Leverage Ratio and states that, in performing the examination necessary to deliver the audited consolidated financial statements of
the Parent, no knowledge was obtained of any Event of Default (such certificate may be limited to accounting matters and disclaim responsibility for legal interpretation).]2 
 (b) Attached hereto as Annex II 
 [is a copy
of management’s discussion and analysis of the financial condition and results of operations for the Fiscal Year ended [            ], as compared to the previous Fiscal Year and
budgeted amounts]3. 

(c) The financial statements delivered with this Certificate in accordance with clauses (a) or (b) of
Section 7.1.1 of the Credit Agreement fairly present in all material respects the financial condition of the Parent and its Subsidiaries (subject to the absence of footnotes and to normal year-end adjustments in the case of unaudited financial
statements). 
 (d) Any other information presented in connection with this Certificate (including the
Attachments hereto) is correct and complete in all material respects. 
 (e) The Leverage Ratio on the
Computation Date was [            :1], as computed on Attachment 2 hereto. 
 (f) No Default or Event of Default has occurred and is continuing, except as set forth on Attachment 3 hereto, which includes a description of the nature and period of existence of such
Default or Event of Default and what action the Parent, the Borrower or any other Obligor has taken, is taking and proposes to take with respect thereto. 

(g) [Excess Cash Flow, as demonstrated by the calculation on Attachment 4 hereto, for the
Fiscal Year ending             equals $            .]4 
 (h) Except as set forth on Attachment 5 hereto, subsequent to the date of the most recent Compliance Certificate submitted by the undersigned pursuant to clause (c) of Section 7.1.1
of the Credit Agreement, [no Subsidiary has been formed or acquired]/[each Material Subsidiary that has been formed or acquired since such date has complied with Section 7.1.8 of the Credit Agreement] . 

 

	2 	 INCLUDE FOR ANNUAL FINANCIAL DELIVERABLES. 

	3 	 INCLUDE FOR ANNUAL FINANCIAL DELIVERABLES. 

	4 	 INCLUDE FOR ANNUAL FINANCIAL DELIVERABLES. 

  

Exhibit E-2 

 IN WITNESS WHEREOF, the undersigned has caused this Certificate to be executed and
delivered, and the certification and warranties contained herein to be made, by its chief financial or accounting Authorized Officer as of the date first above written. 

 

			
	MITEL NETWORKS CORPORATION
		
	By:	 	  

		 	 Name:

Title:

  

Exhibit E-3 

 Attachment 1 
 (to     /    /    Compliance 
 Certificate) 
 CONSOLIDATED EBITDA4 

1. Consolidated EBITDA for the four consecutive Fiscal Quarters ending on the Computation Date (the “Computation
Period”): 
 (a) Net Income for the Computation Period: 

 

							
			
	 (i) the aggregate of all amounts which would be included as net income on the consolidated financial statements of the Parent and
its Subsidiaries for the Computation Period in accordance with GAAP.
	  	$	 	  	  	
		  				  	  

			
	 (ii) Extraordinary gains otherwise included in such Net Income during the Computation Period.
	  	$	 	  	  	
		  				  	  

			
	 (iii) Extraordinary losses otherwise included in such Net Income during the Computation Period.
	  	$	 	  	  	
		  				  	  

			
	 (iv) Net Income: Item 1(a)(i) minus the sum of Item 1(a)(ii) and
Item 1(a)(iii).
	  	$	 	  	  	
		  				  	  

 Plus: 
 (b) In each case to the extent deducted in the calculation of Net Income set forth above, but without duplication (and all determined in accordance with GAAP): 

 

							
	 (i) income tax expense.
	  	$	 	  	  	
		  				  	  

			
	 (ii) interest expense.
	  	$	 	  	  	
		  				  	  

			
	 (iii) amounts attributable to the depreciation and amortization of assets.
	  	$	 	  	  	
		  				  	  

			
	 (iv) foreign exchange gains and losses.
	  	$	 	  	  	
		  				  	  

  
  

	4 	 For all purposes, “Consolidated EBITDA” for the Fiscal Quarter ending January 31, 2012 shall be deemed to be $21,400,000, for the Fiscal
Quarter ending April 30, 2012 shall be deemed to be $26,400,000, for the Fiscal Quarter ending July 31, 2012 shall be deemed to be $12,400,000 and for the Fiscal Quarter ending October 31, 2012 shall be deemed to be $23,600,000,
subject in each case to any pro forma adjustments pursuant to Section 1.4 of the Credit Agreement. 

  

Exhibit E-4 

							
			
	 (v) extraordinary or unusual cash charges that are non-recurring in an amount not to exceed 15% of Consolidated EBITDA (as
calculated before giving effect to any addbacks pursuant to this clause (v) or clause (vii) below) for the Computation Period.
	  	$	 	  	  	
		  				  	  

			
	 (vi) extraordinary or unusual and non-recurring non-cash charges that do not represent a cash item in any Computation
Period.
	  	$	 	  	  	
		  				  	  

			
	 (vii) with respect to Consolidated EBITDA for the Parent, amounts attributable to restructuring costs in an amount not to exceed
during any period of four consecutive Fiscal Quarters 15% of Consolidated EBITDA (as calculated before giving effect to any addbacks pursuant to clause (v) above or this clause (vii)) for the Computation Period.
	  	$	 	  	  	
		  				  	  

			
	 (viii) costs and expenses incurred in connection with (x) the credit facilities under the Credit Agreement and the First Lien
Credit Agreement and (y) any Permitted Acquisition (provided that, for purposes of this clause (y), the amount of costs and expenses relating to any Permitted Acquisition that may be added back to Net Income pursuant to clause
(b)(viii) hereof shall not exceed an amount equal to 10% of the purchase price for such Permitted Acquisition).
	  	$	 	  	  	
		  				  	  

			
	 (ix) without limiting the foregoing, costs and expenses incurred in connection with acquisition and disposition activity (whether
or not consummated) during the fiscal quarter ended January 31, 2013, in an aggregate amount not to exceed $6,500,000.
	  	$	 	  	  	
		  				  	  

			
	 (x) the sum of Item 1(b)(i) through Item 1(b)(ix).
	  	$	 	  	  	
		  				  	  

 Minus: 
  

							
	 (c) to the extent (and only to the extent) included in determining Net Income, income attributable to the cancellation of
Indebtedness issued by an Obligor (including as a result of a debt exchange).
	  	$	 	  	  	
		  				  	  

			
	 2 Consolidated EBITDA (Item 1(a)(iv) plus Item 1(b)(x) minus Item 1(c))
	  	$	 	  	  	
		  				  	  

  

Exhibit E-5 

 Attachment 2 
 (to     /    /     Compliance 
 Certificate) 
 LEVERAGE RATIO 

for the Fiscal Quarter 
 ending on             ,              

1. The Leverage Ratio for the Parent and its Subsidiaries as of the Computation Date equals: 

 

							
	 (a) Consolidated Total Debt outstanding as of the Computation Date determined on a pro forma basis as of the Computation
Date:
	  				  	
			
	 (i) the outstanding principal amount of all obligations for borrowed money or advances and all obligations evidenced by bonds,
debentures, notes or similar instruments.
	  	$	 	  	  	
		  				  	  

			
	 (ii) the outstanding principal amount of all obligations, contingent or otherwise, relative to the face amount of all letters of
credit, whether or not drawn, and banker’s acceptances issued for the account of Parent and its Subsidiaries (which in the case of Letter of Credit Outstandings under and as defined in the First Lien Credit Agreement shall exclude the aggregate
amount which is undrawn and available under all issued and outstanding Canadian Letters of Credit and U.S. Letters of Credit under and as defined in the First Lien Credit Agreement).
	  	$	 	  	  	
		  				  	  

			
	 (iii) the outstanding principal amount of all Capitalized Lease Liabilities.
	  	$	 	  	  	
		  				  	  

			
	 (iv) all Contingent Liabilities in respect of Item 1(a)(i) through Item 1(a)(iii).
	  	$	 	  	  	
		  				  	  

			
	 (b) The sum of Item 1(a)(i) through Item 1(a)(iv).
	  	$	 	  	  	
		  				  	  

			
	 (c) To the extent (but only to the extent) in excess of the amount permitted in clause (m) of
Section 7.2.2, the amount of all such Indebtedness of the type described in such clause (m).
	  	$	 	  	  	
		  				  	  

			
	 (d) The sum (without duplication) of Item (b) plus Item (c)
	  	$	 	  	  	
		  				  	  

  

Exhibit E-6 

							
	 (e) Consolidated unrestricted cash of the Parent and its Subsidiaries as of such date up to a maximum of $40,000,000 (provided
that such cash shall not be subject to any Lien other than a Lien in favor of the Collateral Agent for the benefit of the Secured Parties and other than Liens permitted under Section 7.2.3(f) and Section 7.2.3(k) of the Credit
Agreement).
	  	$	 	  	  	
		  				  	  

			
	 (f) Consolidated Total Debt (Item (d) minus Item (e)).
	  	$	 	  	  	
		  				  	  

			
	 (g) Consolidated EBITDA (as calculated in Attachment 1 hereto)
	  	$	 	  	  	
		  				  	  

			
	 2. Leverage Ratio (the ratio of Item 1(f) to Item 1(g))
	  	$	 	  	  	
		  				  	  

  

  

Exhibit E-7 

 Attachment 3 
 (to     /    /    Compliance 
 Certificate) 
 CONDITIONS OR EVENTS WHICH CONSTITUTE A DEFAULT OR EVENT OF
DEFAULT 
 [If any condition or event exists that constitutes a Default or Event of Default, specify nature and period of
existence and what action the Parent, the Borrower or any other Obligor has taken, is taking or proposes to take with respect thereto; if no condition or event exists, state “None.”] 

  

Exhibit E-8 

 Attachment 4 
 (to     /    /    Compliance 
 Certificate) 
 EXCESS CASH FLOW 

 

							
	 1. Excess Cash Flow is calculated for the Parent and its Subsidiaries for the Fiscal Year ended
[                    ], and is defined as follows:
	  				  	
			
	 (a) Consolidated EBITDA (as calculated in Attachment 1 hereto (for the Fiscal Year ended
[            ]));
	  	$	 	  	  	
		  				  	  

			
	 (b) the sum, without duplication, of:
	  				  	
			
	 (i) Interest Expense actually paid in cash;
	  	$	 	  	  	
		  				  	  

			
	 (ii) scheduled principal repayments, to the extent actually made, of capitalized leases and of Loans pursuant to clause
(b) of Section 3.1.1 and term loans pursuant to clause (c) of Section 3.1.1 of the First Lien Credit Agreement (in each case exclusive of repayments made from a refinancing of any portion of such Indebtedness, or
pursuant to Section 3.1.1, or made, directly or indirectly, in connection with a cancellation of such Indebtedness of any Obligor, including as a result of any exchange or cancellation of such Indebtedness by such Obligor or any of its
Affiliates);
	  	$	 	  	  	
		  				  	  

			
	 (iii) income Taxes actually paid in cash;
	  	$	 	  	  	
		  				  	  

			
	 (iv) Capital Expenditures made in cash (exclusive of Capital Expenditures financed with the proceeds of Indebtedness, equity
issuances, casualty proceeds or other proceeds which are not included in Consolidated EBITDA);
	  	$	 	  	  	
		  				  	  

			
	 (v) voluntary prepayments of Indebtedness (without limiting clause (ii) above);
	  	$	 	  	  	
		  				  	  

			
	 (vi) permitted Investments made during such Fiscal Year;
	  	$	 	  	  	
		  				  	  

			
	 (vii) cash portion of any consideration and related fees and expenses actually paid in connection with a Permitted
Acquisition;
	  	$	 	  	  	
		  				  	  

			
	 (viii) Consolidated Working Capital Adjustment;
	  	$	 	  	  	
		  				  	  

  

Exhibit E-9 

							
			
	 (ix) all cash charges to the extent added back to Net Income pursuant to clauses (iv), (v), (vii), (viii) and (ix) of part (b) of
Attachment 1
	  	$	 	  	  	
		  				  	  

			
	 (x) the sum of Items 1(b)(i) through (ix).
	  	$	 	  	  	
		  				  	  

			
	 2. Excess Cash Flow (Item (1)(a) minus Item (1)(b)(x))
	  	$	 	  	  	
		  				  	  

  

  

Exhibit E-10 

 Attachment 5 
 (to     /    /        Compliance 
 Certificate) 
 ORGANIZATION/LOCATION CHANGES 

[If any Obligor has formed or acquired any new Subsidiary, such change shall be specified below; if no such change has been made, state
“None.”] 

  

Exhibit E-11 

 ANNEX I 
 FINANCIAL INFORMATION 

  

Exhibit E-12 

 ANNEX II 
 MANAGEMENT DISCUSSION 

  

Exhibit E-13 

 EXHIBIT F 
 FORM OF 
 SUBSIDIARY GUARANTY 

See attached. 

  

Exhibit F-1 

 EXHIBIT G-1 
 FORM OF 
 U.S. PLEDGE AND SECURITY AGREEMENT 

See attached. 

  

Exhibit G-1-1 

 EXHIBIT G-2 
 FORM OF 
 CANADIAN PLEDGE AND SECURITY AGREEMENT 

See attached. 

  

Exhibit G-2-1 

 EXHIBIT H 
 FORM OF 
 INTERCOMPANY SUBORDINATION AGREEMENT 

See attached. 

  

Exhibit H-1 

 EXHIBIT I 
 FORM OF 
 INTERCREDITOR AGREEMENT 

See attached. 

  

Exhibit I-1 

 EXHIBIT J-1 
 FORM OF SPONSOR PERMITTED 
 ASSIGNEE ASSIGNMENT AGREEMENT

 Reference is made to the Second Lien Credit Agreement, dated as of February 27, 2013 (as amended, supplemented,
amended and restated or otherwise modified from time to time, the “Credit Agreement”), among Mitel US Holdings, Inc., a Delaware corporation (the “Borrower”) , Mitel Networks Corporation, a company organized under
the laws of Canada (the “Parent”), the various financial institutions and other Persons (as defined therein) (including any Assignee Lenders) from time to time parties thereto, as the Lenders and Wilmington Trust, National
Association, as the Administrative Agent (“Administrative Agent”) and the Collateral Agent. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Credit Agreement. 

1.             (“Assignor”) hereby irrevocably sells and
assigns, without recourse, to             (“Assignee”), and Assignee and hereby irrevocably purchases and assumes, from Assignor, without recourse to Assignor, effective as
of the Effective Date set forth below (but not prior to the registration of the information contained herein in the Assignment Register), the interests set forth below (the “Assigned Interest”) in Assignor’s rights and
obligations with respect to the Commitment and the Loans under the Credit Agreement and the other Loan Documents, which are outstanding immediately before the Effective Date. Assignee shall be a Sponsor Permitted Assignee. From and after the
Effective Date (i) Assignee shall be a party to and be bound by the provisions of the Credit Agreement and, to the extent of the interests assigned by this Sponsor Permitted Assignee Assignment Agreement (the “Assignment
Agreement”), have the rights and obligations of a Sponsor Permitted Assignee thereunder and under the Loan Documents and (ii) Assignor shall, to the extent of the interests assigned by this Assignment Agreement, relinquish its rights
and be released from its obligations under the Credit Agreement and the other Loan Documents. 
 2. Assignor (i) represents
and warrants that as of the Effective Date, it is the legal and beneficial owner of the interests assigned hereunder free and clear of any lien, encumbrance or other adverse claim created by Assignor and that its Commitment and the outstanding
balance of its Loans without giving effect to assignments thereof which have not become effective, are as set forth in this Assignment Agreement; (ii) it has all necessary power and authority, and has taken all action necessary, to execute and
deliver this Assignment Agreement and to consummate the transactions contemplated hereby; and (iii) except as set forth above, makes no other representation or warranty and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement, any other Loan Document or any other instrument or document furnished
pursuant thereto, or the financial condition of the Borrower or any of its Subsidiaries or the performance or observance by the Borrower or any other Obligor of any of its obligations under the Credit Agreement, any other Loan Document or any other
instrument or document furnished pursuant thereto. 

  

Exhibit J-1 

 3. Assignee (i) represents and warrants that it is legally authorized to enter into
this Assignment Agreement; (ii) it has all necessary power and authority, and has taken all action necessary, to execute and deliver this Assignment Agreement and to consummate the transactions contemplated hereby and become a Lender under the
Credit Agreement and the other Loan Documents (iii) confirms that it has received a copy of the Credit Agreement, the other Loan Documents, together with copies of the most recent financial statements referred to in delivered pursuant to
Section 7.1.1 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 this Assignment Agreement; (iv) agrees that it will,
independently and without reliance upon Administrative Agent, Assignor or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; (v) appoints and authorizes Administrative Agent to take such action as agent on its behalf and to exercise such
powers and discretion under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; (vi) agrees that it will be bound by the provisions of the Credit Agreement and the other Loan Documents and will perform in accordance with their terms all obligations which by the terms of the Credit Agreement
and the other Loan Documents are required to be performed by it as a Sponsor Permitted Assignee including, for the avoidance of doubt, the requirements of Section 4.6 of the Credit Agreement as if it were a Lender; (vii) represents to
Assignor and the Administrative Agent that as of the Effective Date, neither it nor any person that directly or indirectly controls it, is in possession of any material non-public information regarding Parent, Borrower and its Subsidiaries, or their
respective assets or securities, that has not been disclosed generally to the Lenders which are not “public side” Lenders prior to such date; and (x) confirms that if a proceeding under any Debtor Relief Law shall be commenced by or
against the Borrower or any other Obligor at a time when it is a Sponsor Permitted Assignee, it irrevocably authorizes and empowers the Administrative Agent to vote on its behalf with respect to the Loans held by it in any manner in the
Administrative Agent’s sole discretion, unless the Administrative Agent instructs such Assignee to vote, in which case such Assignee shall vote with respect to the Loans held by it as the Administrative Agent directs; provided that such
Assignee shall be entitled to vote in accordance with its sole discretion (and not in accordance with the direction of the Administrative Agent) in connection with any plan of reorganization to the extent any such plan of reorganization proposes to
treat any Obligations held by such Assignee in a manner that is less favorable in any material respect to such Assignee than the proposed treatment of similar Obligations held by Lenders that are not Affiliates of the Borrower. 

4. The effective date of this Assignment Agreement shall be the Effective Date of Assignment described in Schedule 1 hereto (the
“Effective Date”). Following the execution of this Assignment Agreement, it will be delivered to the Administrative Agent for acceptance by it and recording by the Administrative Agent pursuant to the Credit Agreement. This
Assignment Agreement will be delivered to the Administrative Agent together with (a) to the extent applicable, the forms specified in Section 4.6 of the Credit Agreement, duly completed and executed by such Assignee; (b) if
Assignee is not already a Lender under the Credit Agreement, an Administrative Questionnaire; and (c) a processing and recordation fee of $3,500, if required under Section 12.10.2(d) of the Credit Agreement. 

  

Exhibit J-1 

 5. Upon such acceptance and recording, from and after the Effective Date, (i) Assignee
shall be a party to the Credit Agreement and, to the extent provided in this Assignment Agreement, have the rights and obligations of a Sponsor Permitted Assignee thereunder and under the other Loan Documents and shall be bound by the provisions
thereof and (ii) Assignor shall, to the extent provided in this Assignment Agreement, relinquish its rights (other than indemnification rights) and be released from its obligations under the Credit Agreement and the other Loan Documents.

 6. Upon such acceptance and recording, from and after the Effective Date, Administrative Agent shall make all payments in
respect of the interest assigned hereby (including payments of principal, interest, fees and other amounts) to Assignee. Assignor and Assignee shall make all appropriate adjustments in payments for periods prior to the Effective Date with respect to
the making of this assignment directly between themselves. 
 7. Assignee hereby grants during the term of this Assignment
Agreement to the Administrative Agent an irrevocable power of attorney (which power is coupled with an interest) with full authority in the place and stead of Assignee and in the name of Assignee, from time to time in the Administrative Agent’s
discretion, to take any action and to execute any document, agreement, certificate and other instrument that the Administrative Agent may deem reasonably necessary or desirable to carry out the provisions of, or purpose of,
Section 12.10.2(f) of the Credit Agreement. This Assignment Agreement shall not be amended, modified, waived or supplemented without the prior written consent of Assignor, Assignee and the Administrative Agent. 

8. THIS ASSIGNMENT AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 
 9. This
Assignment Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one
and the same Assignment Agreement. Receipt by telecopy of any executed signature page to this Assignment Agreement shall constitute effective delivery of such signature page. 
  

  

Exhibit J-1 

 SCHEDULE 1 
 to 
 Sponsor Permitted Assignment Agreement 

Effective Date of
Assignment:                                       
                                      

Legal Name of
Assignor:                                       
                                         
     
 Legal Name of
Assignee:                                       
                                         
     
 Assignee’s Address for
Notices:                                       
                                  

 
  
 Percentage Assigned of Loan/Commitment:             
  

							
	 Loan/Commitment
	  	Principal Amount Assigned	  	Percentage Assigned 
of
Loan/Commitment (set forth,
to at least 15 decimals, as a
percentage of the Loans and
the aggregate Commitments
of all Lenders
thereunder)	 
	 Loans
	  	$	  	 	%	  

 [Signature Page Follows] 

  

Exhibit J-1 

 
			
	The terms set forth above are hereby agreed to:
		
		 	  

		 	as ASSIGNOR
		 	
		
	By:	 	  

		 	Name:
		 	Title:
		
		 	  

		 	as ASSIGNEE
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	Accepted:
	
	 WILMINGTON TRUST, NATIONAL ASSOCIATION,
 as Administrative Agent

		
	By:	 	  

	Name:
	Title:

  

Exhibit J-1 

 EXHIBIT J-2 
 FORM OF AFFILIATE ASSIGNMENT NOTICE 
 Wilmington Trust, National Association

     as Administrative Agent 
 50 South Sixth Street, Suite 1290 
 Minneapolis, MN 55402 

Attn: Renee Kuhl 
 Phone: 1.612.217.5635

 Fax: 1.612.217.5651 
 Email: rkuhl@wilmingtontrust.com1 
 Re: Second Lien Credit Agreement, dated as of February 27, 2013 (as amended, supplemented,
amended and restated or otherwise modified from time to time, the “Credit Agreement”), among Mitel US Holdings, Inc., a Delaware corporation (the “Borrower”) , Mitel Networks Corporation, a company organized under
the laws of Canada (the “Parent”), the various financial institutions and other Persons (as defined therein) (including any Assignee Lenders) from time to time parties thereto, as the Lenders and Wilmington Trust, National
Association, as the Administrative Agent (“Administrative Agent”) and the Collateral Agent 
 Dear Sir: 

The undersigned (the “Proposed Affiliate Assignee”) hereby gives you notice, pursuant to Section 12.10.2(f)(iv) of the Credit
Agreement, that 
 (a) it has entered into an agreement to purchase via assignment a portion of the Loans under the Credit Agreement,

 (b) the assignor in the proposed assignment is [            ], 

(c) immediately after giving effect to such assignment of the Loans (if accepted), the Proposed Affiliate Assignee will be a Sponsor Permitted Assignee
because it is an Affiliate of [insert name of applicable Sponsor], 
 (d) the principal amount of Loans to be purchased by such Proposed
Affiliate Assignee in the assignment contemplated hereby is: $            , 
 (e)
the aggregate amount of all Loans held by such Proposed Affiliate Assignee and each other Sponsor Permitted Assignee which is an Affiliate of [insert name of Applicable Sponsor] after giving effect to the assignment hereunder (if accepted) is
$[            ], and 
  

	1 	 The notice details set forth herein may be modified from time to time by notice from the Administrative Agent to the Lenders pursuant to
Section 12.2 of the Credit Agreement. 

  

Exhibit J-2 

 (f) the proposed effective date of the assignment contemplated hereby is
[            , 20        ]. 

  

Exhibit J-2 

 
			
	Very truly yours,
	
	 [EXACT LEGAL NAME OF PROPOSED
     AFFILIATE ASSIGNEE]

		
	By:	 	  

		 	Name:
		 	Title:
		 	Phone Number:
		 	Fax:
		 	Email:
		
	Date:	 	  

  

Exhibit J-2 

 EXHIBIT K 
 FORM OF MASTER INTERCOMPANY NOTE 
 See attached. 

  
 Exhibit Kexhibit10_1.htm

EXHIBIT 10.1

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of February 26, 2013

 

by and among

 

KITE REALTY GROUP, L.P.,

 

as Borrower,

 

KITE REALTY GROUP TRUST,

 

as Parent,

 

KEYBANK NATIONAL ASSOCIATION,

 

as Administrative Agent,

 

BANK OF AMERICA, N.A.,

 

as Syndication Agent,

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as successor to Wachovia Bank, National Association, and

 

U.S. BANK NATIONAL ASSOCIATION

 

as Co-Documentation Agent,

 

KEYBANC CAPITAL MARKETS and MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as Co-Lead Arrangers

 

and

 

THE FINANCIAL INSTITUTIONS INITIALLY SIGNATORY HERETO

 

AND THEIR ASSIGNEES PURSUANT TO SECTION 13.5.,

 

as Lenders

 

 

  

  

  

TABLE OF CONTENTS

Page

	
ARTICLE I.

	
DEFINITIONS 

	
1

 

	
  

	
Section 1.1.

	
Definitions 

	
1

 

	
  

	
Section 1.2.

	
General; References to Times 

	
25

 

	
  

	
Section 1.3.

	
Financial Attributes of Non-Wholly Owned Subsidiaries 

	
26

 

	
ARTICLE II.

	
CREDIT FACILITY 

	
26

 

	
  

	
Section 2.1.

	
Revolving Loans 

	
26

 

	
  

	
Section 2.2.

	
Swingline Loans 

	
27

 

	
  

	
Section 2.3.

	
Letters of Credit 

	
29

 

	
  

	
Section 2.4.

	
Rates and Payment of Interest on Loans 

	
34

 

	
  

	
Section 2.5.

	
Number of Interest Periods 

	
34

 

	
  

	
Section 2.6.

	
Repayment of Loans 

	
34

 

	
  

	
Section 2.7.

	
Prepayments 

	
35

 

	
  

	
Section 2.8.

	
Continuation 

	
35

 

	
  

	
Section 2.9.

	
Conversion 

	
36

 

	
  

	
Section 2.10.

	
Notes 

	
36

 

	
  

	
Section 2.11.

	
Voluntary Reductions of the Commitment 

	
37

 

	
  

	
Section 2.12.

	
Extension of Termination Date 

	
37

 

	
  

	
Section 2.13.

	
Expiration or Maturity Date of Letters of Credit Past Termination Date 

	
37

 

	
  

	
Section 2.14.

	
Amount Limitations 

	
38

 

	
  

	
Section 2.15.

	
Increase of Commitments 

	
38

 

	
ARTICLE III.

	
PAYMENTS, FEES AND OTHER GENERAL PROVISIONS 

	
39

 

	
  

	
Section 3.1.

	
Payments 

	
39

 

	
  

	
Section 3.2.

	
Pro Rata Treatment 

	
39

 

	
  

	
Section 3.3.

	
Sharing of Payments, Etc 

	
40

 

	
  

	
Section 3.4.

	
Several Obligations 

	
40

 

	
  

	
Section 3.5.

	
Minimum Amounts 

	
41

 

	
  

	
Section 3.6.

	
Fees 

	
41

 

	
  

	
Section 3.7.

	
Computations 

	
42

 

	
  

	
Section 3.8.

	
Usury 

	
42

 

 

  

  

  

 

	
  

	
Section 3.9.

	
Agreement Regarding Interest and Charges 

	
42

 

	
  

	
Section 3.10.

	
Statements of Account 

	
43

 

	
  

	
Section 3.11.

	
Defaulting Lenders 

	
43

 

	
  

	
Section 3.12.

	
Taxes 

	
47

 

	
ARTICLE IV.

	
UNENCUMBERED POOL PROPERTIES 

	
49

 

	
  

	
Section 4.1.

	
Eligibility of Properties 

	
49

 

	
  

	
Section 4.2.

	
Conditions Precedent to a Property Becoming an Eligible Unencumbered Pool Property 

	
50

 

	
  

	
Section 4.3.

	
Release of Guarantors and Unencumbered Pool Properties 

	
51

 

	
  

	
Section 4.4.

	
Frequency of Calculations of Borrowing Base 

	
51

 

	
  

	
Section 4.5.

	
Removal of Ineligible Property 

	
51

 

	
ARTICLE V.

	
YIELD PROTECTION, ETC 

	
52

 

	
  

	
Section 5.1.

	
Additional Costs; Capital Adequacy 

	
52

 

	
  

	
Section 5.2.

	
Suspension of LIBOR Loans 

	
53

 

	
  

	
Section 5.3.

	
Illegality 

	
54

 

	
  

	
Section 5.4.

	
Compensation 

	
54

 

	
  

	
Section 5.5.

	
Treatment of Affected Loans 

	
54

 

	
  

	
Section 5.6.

	
Change of Lending Office 

	
55

 

	
  

	
Section 5.7.

	
Assumptions Concerning Funding of LIBOR Loans 

	
55

 

	
ARTICLE VI.

	
CONDITIONS PRECEDENT 

	
55

 

	
  

	
Section 6.1.

	
Initial Conditions Precedent 

	
55

 

	
  

	
Section 6.2.

	
Conditions Precedent to All Loans and Letters of Credit 

	
57

 

	
ARTICLE VII.

	
REPRESENTATIONS AND WARRANTIES 

	
58

 

	
  

	
Section 7.1.

	
Representations and Warranties 

	
58

 

	
  

	
Section 7.2.

	
Survival of Representations and Warranties, Etc 

	
63

 

	
ARTICLE VIII.

	
AFFIRMATIVE COVENANTS 

	
63

 

	
  

	
Section 8.1.

	
Preservation of Existence and Similar Matters 

	
63

 

	
  

	
Section 8.2.

	
Compliance with Applicable Law and Material Contracts 

	
63

 

	
  

	
Section 8.3.

	
Maintenance of Property 

	
64

 

	
  

	
Section 8.4.

	
Conduct of Business 

	
64

 

 

  

  

  

 

	
  

	
Section 8.5.

	
Insurance 

	
64

 

	
  

	
Section 8.6.

	
Payment of Taxes and Claims 

	
64

 

	
  

	
Section 8.7.

	
Visits and Inspections 

	
64

 

	
  

	
Section 8.8.

	
Use of Proceeds; Letters of Credit 

	
65

 

	
  

	
Section 8.9.

	
Environmental Matters 

	
65

 

	
  

	
Section 8.10.

	
Books and Records 

	
65

 

	
  

	
Section 8.11.

	
Further Assurances 

	
65

 

	
  

	
Section 8.12.

	
REIT Status 

	
66

 

	
  

	
Section 8.13.

	
Exchange Listing 

	
66

 

	
  

	
Section 8.14.

	
Preservation of Right to Pledge Properties in the Unencumbered Pool 

	
66

 

	
ARTICLE IX.

	
INFORMATION 

	
66

 

	
  

	
Section 9.1.

	
Quarterly Financial Statements 

	
66

 

	
  

	
Section 9.2.

	
Year End Statements 

	
67

 

	
  

	
Section 9.3.

	
Compliance Certificate 

	
67

 

	
  

	
Section 9.4.

	
Other Information 

	
67

 

	
ARTICLE X.

	
NEGATIVE COVENANTS 

	
70

 

	
  

	
Section 10.1.

	
Financial Covenants 

	
70

 

	
  

	
Section 10.2.

	
Restricted Payments 

	
71

 

	
  

	
Section 10.3.

	
Indebtedness 

	
72

 

	
  

	
Section 10.4.

	
Investments Generally 

	
72

 

	
  

	
Section 10.5.

	
Liens 

	
73

 

	
  

	
Section 10.6.

	 Merger, Consolidation, Sales of Assets and Other Arrangement   	
74

 

	
  

	
Section 10.7.

	
Fiscal Year 

	
75

 

	
  

	
Section 10.8.

	
Modifications to Material Contracts 

	
75

 

	
  

	
Section 10.9.

	
Modifications of Organizational Documents 

	
76

 

	
  

	
Section 10.10.

	
Transactions with Affiliates 

	
76

 

	
  

	
Section 10.11.

	
ERISA Exemptions 

	
76

 

	
ARTICLE XI.

	
DEFAULT 

	
76

 

	
  

	
Section 11.1.

	
Events of Default 

	
76

 

 

  

  

  

 

	
  

	
Section 11.2.

	
Remedies Upon Event of Default 

	
80

 

	
  

	
Section 11.3.

	
Remedies Upon Default 

	
81

 

	
  

	
Section 11.4.

	
Allocation of Proceeds 

	
81

 

	
  

	
Section 11.5.

	
Collateral Account 

	
82

 

	
  

	
Section 11.6.

	
Performance by Agent 

	
83

 

	
  

	
Section 11.7.

	
Rights Cumulative 

	
83

 

	
ARTICLE XII.

	
THE AGENT 

	
83

 

	
  

	
Section 12.1.

	
Authorization and Action 

	
83

 

	
  

	
Section 12.2.

	
Agent’s Reliance, Etc 

	
84

 

	
  

	
Section 12.3.

	
Notice of Defaults 

	
85

 

	
  

	
Section 12.4.

	
KeyBank as Lender 

	
85

 

	
  

	
Section 12.5.

	
Approvals of Lenders 

	
85

 

	
  

	
Section 12.6.

	
Lender Credit Decision, Etc 

	
86

 

	
  

	
Section 12.7.

	
Indemnification of Agent 

	
86

 

	
  

	
Section 12.8.

	
Successor Agent 

	
87

 

	
  

	
Section 12.9.

	
Titled Agents 

	
88

 

	
ARTICLE XIII.

	
MISCELLANEOUS 

	
88

 

	
  

	
Section 13.1.

	
Notices 

	
88

 

	
  

	
Section 13.2.

	
Expenses 

	
89

 

	
  

	
Section 13.3.

	
Setoff 

	
90

 

	
  

	
Section 13.4.

	
Litigation; Jurisdiction; Other Matters; Waivers 

	
90

 

	
  

	
Section 13.5.

	
Successors and Assigns 

	
91

 

	
  

	
Section 13.6.

	
Amendments 

	
94

 

	
  

	
Section 13.7.

	
Nonliability of Agent and Lenders 

	
96

 

	
  

	
Section 13.8.

	
Confidentiality 

	
96

 

	
  

	
Section 13.9.

	
Indemnification 

	
97

 

	
  

	
Section 13.10.

	
Termination; Survival 

	
99

 

	
  

	
Section 13.11.

	
Severability of Provisions 

	
99

 

	
  

	
Section 13.12.

	
GOVERNING LAW 

	
99

 

	
  

	
Section 13.13.

	
Patriot Act 

	
100

 

 

  

  

  

 

	
  

	
Section 13.14.

	
Counterparts 

	
100

 

	
  

	
Section 13.15.

	
Obligations with Respect to Loan Parties 

	
100

 

	
  

	
Section 13.16.

	
Limitation of Liability 

	
100

 

	
  

	
Section 13.17.

	
Entire Agreement 

	
100

 

	
  

	
Section 13.18.

	
Construction 

	
101

 

	  	
 

	  

 

  

  

  

SCHEDULE 1.1(A)          List of Loan Parties

SCHEDULE 2.3(a)           List of Existing Letters of Credit

SCHEDULE 4.1.              Unencumbered Pool Properties

SCHEDULE 7.1.(b)         Ownership Structure

SCHEDULE 7.1.(f)          Title to Properties; Liens

SCHEDULE 7.1.(g)         Indebtedness and Guaranties

SCHEDULE 7.1.(i)          Litigation

 

 

EXHIBIT A                      Form of Assignment and Acceptance Agreement

EXHIBIT B                      Form of Guaranty

EXHIBIT C                      Form of Notice of Borrowing

EXHIBIT D                      Form of Notice of Continuation

EXHIBIT E                      Form of Notice of Conversion

EXHIBIT F                      Form of Notice of Swingline Borrowing

EXHIBIT G                      Form of Swingline Note

EXHIBIT H                      Form of Revolving Note

EXHIBIT I                        Form of Compliance Certificate

 

 

 

 

	  	
 

	  

 

  

  

  

THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of February 26, 2013, by and among KITE REALTY GROUP, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”), KITE REALTY GROUP TRUST, a real estate investment trust formed under the laws of the State of Maryland (the “Parent”), each of the financial institutions initially a signatory hereto together with their assignees pursuant to Section 13.5.(d), KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”), BANK OF AMERICA, N.A., as Syndication Agent (the “Syndication Agent”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as successor to Wachovia Bank, National Association, as Documentation Agent (the “Documentation Agent”), and KEYBANC CAPITAL MARKETS and MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as Co-Lead Arrangers (the “Arrangers”).

 

WHEREAS, the Borrower, the Administrative Agent and certain other lenders are parties to that certain Second Amended and Restated Credit Agreement dated as of June 6, 2011, as amended (the “Existing Credit Agreement”);

 

WHEREAS, the Agent and the Lenders desire to make available to the Borrower a revolving credit facility in the initial amount of $200,000,000, which will include a $25,000,000 letter of credit subfacility and a $25,000,000 swingline subfacility, on the terms and conditions contained herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto amend and restate the Existing Credit Agreement in its entirety and agree as follows:

 

ARTICLE I.     DEFINITIONS

 

	
Section 1.1.  

	
Definitions.

 

In addition to terms defined elsewhere herein, the following terms shall have the following meanings for the purposes of this Agreement:

 

“Accession Agreement” means an Accession Agreement substantially in the form of Annex I to the Guaranty.

 

“Additional Costs” has the meaning given that term in Section 5.1.

 

“Adjusted EBITDA” means, on any date of determination, (a) the EBITDA of the Parent, the Borrower and all Subsidiaries for the period of two (2) fiscal quarters most recently ended determined on a consolidated basis, minus (b) Capital Reserves for the period of two (2) fiscal quarters most recently ended.

 

“Adjusted LIBOR” means, with respect to each Interest Period for any LIBOR Loan, the rate obtained by dividing (a) LIBOR for such Interest Period by (b) a percentage equal to 1 minus the stated maximum rate (stated as a decimal) of all reserves, if any, required to be maintained with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) as specified in Regulation D of the Board of Governors of the Federal Reserve System (or against any other category of liabilities which includes deposits by reference to which the interest rate on LIBOR Loans is determined or any applicable category of extensions of credit or other assets which includes loans by an office of any Lender outside of the United States of America to residents of the United States of America). Any change in such maximum rate shall result in a change in Adjusted LIBOR on the date on which such change in such maximum rate becomes effective.

 

 

  

  

  

 

“Affected Lender” has the meaning given that term in Section 3.12(e).

 

“Affiliate” means any Person (other than the Agent or any Lender):  (a) directly or indirectly controlling, controlled by, or under common control with, the Borrower; (b) directly or indirectly owning or holding fifteen percent (15.0%) or more of any Equity Interest in the Borrower; or (c) fifteen percent (15.0%) or more of whose voting stock or other Equity Interest is directly or indirectly owned or held by the Borrower.  For purposes of this definition, “control” (including with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”) means the possession directly or indirectly of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or by contract or otherwise.  The Affiliates of a Person shall include any officer or director of such Person.  In no event shall the Agent or any Lender be deemed to be an Affiliate of the Borrower.

 

“Agent” or “Administrative Agent” means KeyBank National Association, as contractual representative for the Lenders under the terms of this Agreement.

 

“Agreement Date” means the date as of which this Agreement is dated.

 

“Applicable Law” means all applicable provisions of constitutions, statutes, rules, regulations and orders of all governmental bodies and all orders and decrees of all courts, tribunals and arbitrators.

 

“Applicable Margin” means the percentage rate set forth below corresponding to the Leverage Ratio in effect at such time:

 

	
Level

	
Leverage Ratio

	
Applicable Margin For LIBOR Loans

	
Applicable Margin For Base Rate Loans

	
1

	
45.0% or less

	
1.65%

	
0.65%

	
2

	
Greater than 45.0% but less than or equal to 50.0%

	
1.75%

	
0.75%

	
3

	
Greater than 50.0%, but less than or equal to 55.0%

	
1.95%

	
0.95%

	
4

	
Greater than 55.0% , but less than or equal to 60.0%

	
2.25%

	
1.25%

	
5

	
Greater than 60.0% (but only during an Increased Leverage Period)

	
2.50%

	
1.50%

 

 

 

  

  

  

 

 

The Applicable Margin shall be determined by the Agent under this clause from time to time, based on the Leverage Ratio as set forth in the Compliance Certificate most recently delivered by the Borrower pursuant to Section 9.3.  Any adjustment to the Applicable Margin shall be effective (i) in the case of a Compliance Certificate delivered in connection with quarterly financial statements of the Parent delivered pursuant to Section 9.3., as of the date 50 days following the end of the last day of the applicable fiscal period covered by such Compliance Certificate, and (ii) in the case of a Compliance Certificate delivered in connection with annual financial statements of the Parent delivered pursuant to Section 9.3., as of the date 95 days following the end of the last day of the applicable fiscal period covered by such Compliance Certificate.  If the Borrower shall fail to deliver a Compliance Certificate within the time period required under Section 9.3., the Applicable Margin shall be determined based on Level 4 until the Borrower delivers the required Compliance Certificate, in which case the Applicable Margin shall be determined as provided above effective as of the date of delivery of such Compliance Certificate.  If the Borrower shall deliver a Compliance Certificate which is subsequently determined to be incorrect and, if correct when delivered, would have resulted in a higher Applicable Margin, Borrower shall pay to the Agent, within five (5) days after demand, any additional interest that would have accrued and been payable on any Loans using such higher Applicable Margin during the period that such lower Applicable Margin was applied incorrectly.

 

“Arrangers” has the meaning given to such term in the introductory paragraph hereof.

 

“Assignee” has the meaning given that term in Section 13.5.(d).

 

“Assignment and Acceptance Agreement” means an Assignment and Acceptance Agreement among a Lender, an Assignee and the Agent, substantially in the form of Exhibit A.

 

“Base Rate” means the per annum rate of interest equal to the greater of (a) the Prime Rate , (b) the Federal Funds Rate plus one half of one percent (0.5%), or (c) Adjusted LIBOR for an Interest Period of one (1) month plus one percent (1%).  Any change in the Base Rate resulting from a change in the Prime Rate or the Federal Funds Rate shall become effective as of 12:01 a.m. on the Business Day on which each such change occurs.  The Base Rate is a reference rate used by the Lender acting as the Agent in determining interest rates on certain loans and is not intended to be the lowest rate of interest charged by the Lender acting as the Agent or any other Lender on any extension of credit to any debtor.

 

“Base Rate Loan” means a Revolving Loan bearing interest at a rate based on the Base Rate.

 

“Benefit Arrangement” means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise contributed to by any member of the ERISA Group.

 

“Borrower” has the meaning set forth in the introductory paragraph hereof.

 

“Borrowing Base” means, as of any date, the lesser of (a) an amount equal to sixty-two and one-half percent (62.5%) of the then-current Unencumbered Pool Value, and (b) the maximum principal amount of debt which would not cause the Borrowing Base Debt Service Coverage Ratio to be less than 1.40 to 1.  The Borrowing Base shall equal $0 if at any time (i) there are fewer than fifteen (15) Eligible Unencumbered Pool Properties or (ii) the Unencumbered Pool Value is less than $250,000,000.

 

 

 

  

  

  

 

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

 

“Borrowing Base Debt Service Coverage Ratio” means, as of any date of determination, the ratio of (a) the sum of (i) the aggregate annualized Net Operating Income attributable to then-current Eligible Unencumbered Pool Properties included in the Unencumbered Pool, calculated based on the period of two (2) fiscal quarters most recently ended for which financial results of Parent have been reported (including, with respect to Unencumbered Pool Properties acquired during the immediately preceding two (2) fiscal quarters, either (A) the NOI of such properties for the two (2) fiscal quarters most recently ended or (B) the NOI of such properties for the period such properties have been owned by Borrower or a Guarantor, annualized in a manner acceptable to Agent to provide two (2) fiscal quarters of NOI), minus (ii) annualized Capital Reserves in respect of the Unencumbered Pool Properties, calculated based on the period of two (2) fiscal quarters most recently ended, divided by (b) the Implied Debt Service.

 

“Business Day” means (a) any day other than a Saturday, Sunday or other day on which banks in Cleveland, Ohio are authorized or required to close and (b) with reference to a LIBOR Loan, any such day that is also a day on which dealings in Dollar deposits are carried out in the London interbank market.

 

“Capital Reserves” means, for any period and with respect to a Property, an amount equal to (a) $0.15 per square foot times (b) a fraction, the numerator of which is the number of days in such period and the denominator of which is 365. Any portion of a Property leased under a ground lease to a third party that owns the improvements on such portion of such Property shall not be included in determinations of Capital Reserves. If the term Capital Reserves is used without reference to any specific Property, then the amount shall be determined on an aggregate basis with respect to all Core Properties of the Borrower and its Subsidiaries and a proportionate share of all Core Properties of all Unconsolidated Affiliates.

 

“Capitalization Rate” means seven and one-half percent (7.50%).

 

“Capitalized Lease Obligation” means an obligation under a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.  The amount of a Capitalized Lease Obligation is the capitalized amount of such obligation as would be required to be reflected on a balance sheet of the applicable Person prepared in accordance with GAAP as of the applicable date.

 

“Cash Equivalents” means:  (a) securities issued, guaranteed or insured by the United States of America or any of its agencies with maturities of not more than one year from the date acquired; (b) certificates of deposit with maturities of not more than one year from the date acquired issued by a United States federal or state chartered commercial bank of recognized standing, or a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of any such country, acting through a branch or agency, which bank has capital and unimpaired surplus in excess of $500,000,000 and which bank or its holding company has a short term commercial paper rating of at least A-2 or the equivalent by S&P or at least P-2 or the equivalent by Moody’s; (c) reverse repurchase agreements with terms of not more than seven days from the date acquired, for securities of the type described in clause (a) above and entered into only with commercial banks having the qualifications described in clause (b) above; (d) commercial paper issued by any Person incorporated under the laws of the United States of America or any State thereof and rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s, in each case with maturities of not more than one year from the date acquired; and (e) investments in money market funds registered under the Investment Company Act of 1940, which have net assets of at least $500,000,000 and at least 85% of whose assets consist of securities and other obligations of the type described in clauses (a) through (d) above.

 

 

  

  

  

 

“Collateral Account” means a special deposit account established by the Agent pursuant to Section 11.5 and under its sole dominion and control.

 

“Commitment” means, as to each Lender, such Lender’s obligation to make Revolving Loans pursuant to Section 2.1. and to issue (in the case of the Issuing Lender) or participate in (in the case of the Lenders) Letters of Credit pursuant to Section 2.3.(a) and 2.3.(i) and Swingline Loans pursuant to Section 2.2.(e), respectively, in an amount up to, but not exceeding (but in the case of the Lender acting as the Issuing Lender excluding the aggregate amount of participations in the Letters of Credit held by other Lenders), the amount set forth for such Lender on its signature page hereto as such Lender’s “Commitment” or as set forth in the applicable Assignment and Acceptance Agreement, as the same may be reduced from time to time pursuant to Section 2.11., increased pursuant to Section 2.15. or as appropriate to reflect any assignments to or by such Lender effected in accordance with Section 13.5.

 

“Commitment Percentage” means, as to each Lender, the ratio, expressed as a percentage, of (a) the amount of such Lender’s Commitment to (b) the aggregate amount of the Commitments of all Lenders; provided, however, that if at the time of determination the Commitments have terminated or been reduced to zero, the “Commitment Percentage” of each Lender shall be the Commitment Percentage of such Lender in effect immediately prior to such termination or reduction.

 

“Compliance Certificate” has the meaning given that term in Section 9.3.

 

“Construction-In-Process Property” means, as of any date, any Property that is under development or is scheduled to commence development within twelve months from such date until the earlier of the (i) one year anniversary date of project completion with respect to such Construction-In-Process Property or (ii) the second (2nd) fiscal quarter for which financial results have been reported after such Construction-In-Process Property achieves an Occupancy Rate of 85%.

 

 

 

 

  

  

  

 

“Construction-In-Process Value” means cash expenditures for land and improvements (including indirect costs internally allocated and development costs) determined in accordance with GAAP on all Construction-In-Process Properties.

 

“Continue”, “Continuation” and “Continued” each refers to the continuation of a LIBOR Loan from one Interest Period to another Interest Period pursuant to Section 2.8.

 

“Convert”, “Conversion” and “Converted” each refers to the conversion of a Loan of one Type into a Loan of another Type pursuant to Section 2.9.

 

“Core Property” means any Property which is leased or intended to be leased to tenants primarily for retail uses.

 

“Credit Event” means any of the following:  (a) the making of any Loan, and (b) the issuance of a Letter of Credit.

 

“Default” means any of the events specified in Section 11.1., whether or not there has been satisfied any requirement for the giving of notice, the lapse of time, or both.

 

“Defaulting Lender” means any Lender that, as reasonably determined by the Administrative Agent with respect to clauses (a) and (b)(ii) below, (a) has failed to perform any of its funding obligations hereunder, including in respect of its Loans or participations in respect of Letters of Credit or Swingline Loans, within two (2) Business Days of the date required to be funded by it hereunder and such failure is continuing, unless such failure arises out of a good faith dispute between such Lender and either the Borrower or the Administrative Agent, (b) (i) has notified the Borrower, the Administrative Agent or any Lender that it does not intend to comply with its funding obligations hereunder or (ii) has made a public statement to that effect with respect to its funding obligations under other agreements generally in which it commits to extend credit, unless with respect to this clause (ii), such failure with respect to a funding obligation is subject to a good faith dispute, (c) has failed, within two (2) Business Days after request by the Administrative Agent, to confirm in a manner reasonably satisfactory to the Administrative Agent that it will comply with its funding obligations; provided that, notwithstanding the provisions of Section 3.11., such Lender shall cease to be a Defaulting Lender upon the Administrative Agent’s receipt of such confirmation, or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any bankruptcy, insolvency, reorganization, liquidation, conservatorship, assignment for the benefit of creditors, moratorium, receivership, rearrangement or similar debtor relieve law of the United States or other applicable jurisdictions from time to time in effect, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such capacity, (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, or (iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence in any proceeding or appointment; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a governmental authority (including any agency, instrumentality, regulatory body, central bank or other authority) so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts of the United States or from the enforcement of judgments or writs of attachment of its assets or permit such Lender (or such governmental authority or instrumentality) to reject, repudiate, disavow, or disaffirm any contracts or agreements made with such Person).

 

 

 

  

  

  

 

“Derivatives Contract” means 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.  Not in limitation of the foregoing, the term “Derivatives Contract” includes 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, including any such obligations or liabilities under any such master agreement.

 

“Derivatives Termination Value” means, in respect of any one or more Derivatives Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Derivatives Contracts, (a) for any date on or after the date such Derivatives 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 Derivatives Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Derivatives Contracts (which may include the Agent or any Lender).

 

“Development Properties” means any ground-up developments, including consolidated or unconsolidated properties, which were not owned (in whole or in part) by Parent, Borrower or their Subsidiaries as of February ___, 2013. Notwithstanding the foregoing, any such property which achieves an Occupancy Rate of 85% shall no longer be a Development Property and, for purposes of clarity, any purchase by Parent, Borrower or their Subsidiaries of an interest of a joint venture partner in a ground-up development that was owned in part by Parent, Borrower or their Subsidiaries as of February ___, 2013, shall not be a Development Property as a result of such purchase.

 

“Dollars” or “$” means the lawful currency of the United States of America.

 

“EBITDA” means, with respect to a Person for any period (without duplication):  (a) net income (loss) of such Person for such period determined on a consolidated basis (before minority interests), exclusive of the following (but only to the extent included in determination of such net income (loss)):  (i) depreciation and amortization expense; (ii) Interest Expense; (iii) income tax expense; (iv) extraordinary or non-recurring gains and losses; (v) other non-cash items; and (vi) costs in connection with acquisitions; plus (b) such Person’s pro rata share of EBITDA of its Unconsolidated Affiliates.  EBITDA shall be adjusted to remove any impact from straight line rent leveling adjustments required under GAAP and amortization of intangibles pursuant to Statement of Financial Accounting Standards number 141.

 

 

 

  

  

  

 

“Effective Date” means the later of:  (a) the Agreement Date and (b) the date on which all of the conditions precedent set forth in Section 6.1. shall have been fulfilled or waived in writing by the Requisite Lenders.

 

“Eligible Assignee” means any Person who is:  (i) currently a Lender or an affiliate of a Lender; (ii) a commercial bank, trust, trust company, insurance company, investment bank or pension fund organized under the laws of the United States of America, or any state thereof, and having total assets in excess of $5,000,000,000; (iii) a savings and loan association or savings bank organized under the laws of the United States of America, or any state thereof, and having a tangible net worth of at least $500,000,000; or (iv) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of any such country, and having total assets in excess of $10,000,000,000, provided that such bank is acting through a branch or agency located in the United States of America.  If such Person is not currently a Lender or an affiliate of a Lender, such Person’s (or its parent’s) senior unsecured long term indebtedness must be rated BBB or higher by S&P, Baa2 or higher by Moody’s, or the equivalent or higher of either such rating by another rating agency acceptable to the Agent.  Neither a Defaulting Lender nor any Affiliate of a Defaulting Lender shall qualify as an Eligible Assignee.

 

“Eligible Unencumbered Pool Property” means a Property which satisfies all of the following requirements:  (a) such Property is owned in fee simple, or leased under a Ground Lease reasonably acceptable to Agent, entirely by, the Borrower or a Wholly Owned Subsidiary which is also a Guarantor; (b) neither such Property, nor any interest of the Borrower or any Subsidiary therein, is subject to any Lien (other than Permitted Liens (but not Liens of the type described in clause (f) or (g) of the definition of Permitted Liens or Permitted Environmental Liens)) or a Negative Pledge; (c) if such Property is owned or leased by a Guarantor (i) none of the Borrower’s direct or indirect ownership interest in such Guarantor is subject to any Lien (other than Permitted Liens (but not Liens of the type described in clause (f) or (g) of the definition of Permitted Liens or Permitted Environmental Liens)) or to a Negative Pledge and (ii) the Borrower directly, or indirectly through a Subsidiary, has the right to take the following actions without the need to obtain the consent of any Person:  (x) to sell, transfer or otherwise dispose of such Property and (y) to create a Lien on such Property as security for Indebtedness of the Borrower or such Guarantor, as applicable; provided, however, that the requirements of this clause (c) shall not prohibit a Negative Pledge or limitation on sale in favor of an arm’s-length purchaser of a customary nature relating to Property subject to a contract for sale so long as such Negative Pledge or limitation on sale pertains solely to such Property being sold and ceases to apply upon the closing of such sale or the termination of such contract); and (d) such Property is free of all structural defects or major architectural deficiencies, title defects, environmental conditions or other adverse matters except for defects, deficiencies, conditions or other matters individually or collectively which are not material to the profitable operation of such Property.

 

“Environmental Laws” means any Applicable Law relating to environmental protection or the manufacture, storage, remediation, disposal or cleanup of Hazardous Materials including, without limitation, the following:  Clean Air Act, 42 U.S.C. § 7401 et seq.; Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.; Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.; National Environmental Policy Act, 42 U.S.C. § 4321 et seq.; regulations of the Environmental Protection Agency and any applicable rule of common law and any judicial interpretation thereof relating primarily to the environment or Hazardous Materials.

 

 

 

  

  

  

 

“Equity Interest” means, with respect to any Person, any share of capital stock of (or other ownership or profit interests in) such Person, any warrant, option or other right for the purchase or other acquisition from such Person of any share of capital stock of (or other ownership or profit interests in) such Person, any security convertible into or exchangeable for any share of capital stock of (or other ownership or profit interests in) such Person or warrant, right or option for the purchase or other acquisition from such Person of such shares (or such other interests), and any other ownership or profit interest in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such share, warrant, option, right or other interest is authorized or otherwise existing on any date of determination.

 

“Equity Issuance” means any issuance by a Person of any Equity Interest in such Person and shall in any event include the issuance of any Equity Interest upon the conversion or exchange of any security constituting Indebtedness that is convertible or exchangeable, or is being converted or exchanged, for Equity Interests.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended and in effect from time to time, and all regulations and formal guidance issued thereunder.

 

“ERISA Group” means the Borrower, any Subsidiary and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower or any Subsidiary, are treated as a single employer under Section 414 of the Internal Revenue Code or Section 4001 of ERISA.

 

“Event of Default” means any of the events specified in Section 11.1., provided that any requirement for notice or lapse of time or any other condition has been satisfied.

 

“Excluded FATCA Tax” means any tax, assessment or other governmental charge imposed on a Lender under FATCA, to the extent applicable to the transactions contemplated by this Agreement, that would not have been imposed but for a failure by a Lender (or any financial institution through which any payment is made to such Lender) to comply with the requirements of FATCA.

 

“Excluded Preferred Equity” means the $70,000,000 issuance of Preferred Equity Interests of Parent made pursuant to the Parent’s prospectus supplement dated November 30, 2010.

 

“Fair Market Value” means, with respect to (a) a security listed on a national securities exchange or the NASDAQ National Market, the price of such security as reported on such exchange by any widely recognized reporting method customarily relied upon by financial institutions and (b) with respect to any other property, the price which could be negotiated in an arm’s-length free market transaction, for cash, between a willing seller and a willing buyer, neither of which is under pressure or compulsion to complete the transaction.

 

 

 

  

  

  

 

“FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.

 

“FATCA” means Sections 1471 through 1474 of the Internal Revenue Code.

 

“Federal Funds Rate” means, for any day, the rate per annum (rounded upward to the nearest 1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day, 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 quoted to the Agent by federal funds dealers selected by the Agent on such day on such transaction as determined by the Agent.

 

“Fees” means the fees and commissions provided for or referred to in Section 3.6. and any other fees payable by the Borrower hereunder or under any other Loan Document.

 

“FIRREA” means the Financial Institution Recovery, Reform and Enforcement Act of 1989, as amended.

 

“Fixed Charges” means, on any date of determination, the sum of (a) Interest Expense of the Parent, the Borrower, and its Subsidiaries determined on a consolidated basis for the period of two (2) fiscal quarters most recently ended, (b) all regularly scheduled principal payments made with respect to Indebtedness of the Parent, the Borrower, and its Subsidiaries during such period, other than any balloon, bullet or similar principal payment which repays such Indebtedness in full, and (c) all Preferred Dividends paid during such period (but excluding any Preferred Dividends with respect to the Excluded Preferred Equity).  Fixed Charges shall include a proportionate share of items (a) and (b) of all Unconsolidated Affiliates for such period.

 

“Floating Rate Indebtedness” means all Indebtedness of a Person which bears interest at a variable rate during the scheduled life of such Indebtedness and for which such Person has not obtained interest rate swap agreements, interest rate “cap” or “collar” agreements or other similar Derivatives Contracts which effectively cause such variable rates (exclusive of any fixed margins added to any variable component of such rates) to be equivalent to fixed rates less than or equal to the rate (as reasonably determined by the Agent) borne by United States 10-year Treasury Notes at the time the applicable Derivatives Contract became effective.

 

“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the Issuing Lender, such Defaulting Lender’s Commitment Percentage of the outstanding Letter of Credit Liabilities other than Letter of Credit Liabilities as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or cash collateral or other credit support acceptable to the Issuing Lender shall have been provided in accordance with the terms hereof and (b) with respect to the Swingline Lender, such Defaulting Lender’s Commitment Percentage of Swingline Loans other than Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders, repaid by the Borrower or for which cash collateral or other credit support acceptable to the Swingline Lender shall have been provided in accordance with the terms hereof.

 

 

 

  

  

  

 

“Funds From Operations” means, with respect to a Person and for a given period, (a) net income (loss) of such Person computed in accordance with GAAP, calculated without regard to (i) gains (or losses) from debt restructuring and sales of property during such period, and (ii) charges for impairment of real estate, plus (b) depreciation with respect to such Person’s real estate assets and amortization (other than amortization of deferred financing costs) of such Person for such period, plus (c) other non-cash items (other than amortization of deferred financing costs), plus (d) costs in connection with acquisitions, all after adjustment for unconsolidated partnerships and joint ventures, plus (e) extraordinary and non-recurring gains and losses.  Adjustments for Unconsolidated Affiliates will be calculated to reflect funds from operations on the same basis.

 

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination.

 

“Governmental Approvals” means all authorizations, consents, approvals, licenses and exemptions of, registrations and filings with, and reports to, all Governmental Authorities.

 

“Governmental Authority” means any national, state or local government (whether domestic or foreign), any political subdivision thereof or any other governmental, quasi governmental, judicial, public or statutory instrumentality, authority, body, agency, bureau, commission, board, department or other entity (including, without limitation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency or the Federal Reserve Board, any central bank or any comparable authority) or any arbitrator with authority to bind a party at law.

 

“Ground Lease” means a ground lease containing the following terms and conditions:  (a) a remaining term (exclusive of any unexercised extension options) of 25 years or more from the Agreement Date; (b) the right of the lessee to mortgage and encumber its interest in the leased property without the consent of the lessor; (c) the obligation of the lessor to give the holder of any mortgage Lien on such leased property written notice of any defaults on the part of the lessee and agreement of such lessor that such lease will not be terminated until such holder has had a reasonable opportunity to cure or complete foreclosures, and fails to do so; (d) reasonable transferability of the lessee’s interest under such lease, including ability to sublease; and (e) such other rights customarily required by mortgagees making a loan secured by the interest of the holder of the leasehold estate demised pursuant to a ground lease.

 

“Guarantors” means individually and collectively, as the context shall require (i) the Parent and (ii) any Subsidiary that directly owns an Unencumbered Pool Property.

 

“Guaranty”, “Guaranteed”, “Guarantying” or to “Guarantee” as applied to any obligation means and includes:  (a) a guaranty (other than by endorsement of negotiable instruments for collection or deposit in the ordinary course of business), directly or indirectly, in any manner, of any part or all of such obligation, or (b) an agreement, direct or indirect, contingent or otherwise, and whether or not constituting a guaranty, the practical effect of which is to assure the payment or performance (or payment of damages in the event of nonperformance) of any part or all of such obligation whether by:  (i) the purchase of securities or obligations, (ii) the purchase, sale or lease (as lessee or lessor) of property or the purchase or sale of services primarily for the purpose of enabling the obligor with respect to such obligation to make any payment or performance (or payment of damages in the event of nonperformance) of or on account of any part or all of such obligation, or to assure the owner of such obligation against loss, (iii) the supplying of funds to or in any other manner investing in the obligor with respect to such obligation, (iv) repayment of amounts drawn down by beneficiaries of letters of credit (including Letters of Credit), or (v) the supplying of funds to or investing in a Person on account of all or any part of such Person’s obligation under a Guaranty of any obligation or indemnifying or holding harmless, in any way, such Person against any part or all of such obligation.  As the context requires, “Guaranty” shall also mean the Guaranty to which the Guarantors are parties substantially in the form of Exhibit D.

 

 

 

  

  

  

 

“Hazardous Materials” means all or any of the following:  (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable Environmental Laws as “hazardous substances”, “hazardous materials”, “hazardous wastes”, “toxic substances” or any other formulation intended to define, list or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, “TCLP” toxicity or “EP toxicity”; (b) oil, petroleum or petroleum derived substances, natural gas, natural gas liquids or synthetic gas and drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas or geothermal resources; (c) any flammable substances or explosives or any radioactive materials; (d) asbestos in any form; (e) toxic mold; and (f) electrical equipment which contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty parts per million.

 

“Implied Debt Service” means on any date of determination, an amount equal to the annual principal and interest payment sufficient to amortize in full during a thirty (30) year period, a loan in an amount equal to the sum of the aggregate principal balance of all Unsecured Indebtedness of the Parent, the Borrower and their respective Subsidiaries determined on a consolidated basis (including, without limitation, the Loans and Letter of Credit Liabilities) as of such date, calculated using an interest rate equal to the greater of (a) the then current annual yield on ten (10) year obligations issued by the United States Treasury most recently prior to the date of determination as determined by the Agent plus two and one-half percent (2.5%), or (b) six and three-fourths percent (6.75%).

 

“Increased Leverage Period” has the meaning set forth in Section 10.1(a).

 

“Indebtedness” means, with respect to a Person, at the time of computation thereof, all of the following (without duplication):  (a) all obligations of such Person in respect of money borrowed (other than trade debt incurred in the ordinary course of business which is not more than 180 days past due); (b) all obligations of such Person, whether or not for money borrowed (i) represented by notes payable, or drafts accepted, in each case representing extensions of credit, (ii) evidenced by bonds, debentures, notes or similar instruments, or (iii) constituting purchase money indebtedness, conditional sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are customarily paid or that are issued or assumed as full or partial payment for property or services rendered; (c) Capitalized Lease Obligations of such Person; (d) all reimbursement obligations of such Person under any letters of credit or acceptances (whether or not the same have been presented for payment); (e) all Off-Balance Sheet Obligations of such Person; (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Mandatorily Redeemable Stock issued by such Person or any other Person, valued at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; (g) all obligations of such Person in respect of any purchase obligation, repurchase obligation, takeout commitment or forward equity commitment, in each case evidenced by a binding agreement (excluding any such obligation to the extent the obligation can be satisfied by the issuance of Equity Interests (other than Mandatorily Redeemable Stock)); (h) net obligations under any Derivatives Contract not entered into as a hedge against existing Indebtedness, in an amount equal to the Derivatives Termination Value thereof; (i) all Indebtedness of other Persons which such Person has Guaranteed or is otherwise recourse to such Person (except for guaranties of customary exceptions for fraud, misapplication of funds, environmental indemnities and other similar exceptions to recourse liability until a claim is made with respect thereto; provided that if Borrower reasonably believes that the liability with respect to such claim will be less than the Indebtedness to which it relates, Borrower may include such lesser amount subject to Administrative Agent’s prior written approval granted in its sole discretion); (j) all Indebtedness of another Person secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property or assets owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness or other payment obligation; and (k) such Person’s pro rata share of the Indebtedness of any Unconsolidated Affiliate of such Person.

 

 

 

  

  

  

 

“Initial Unencumbered Pool Properties” means the Eligible Unencumbered Pool Properties so identified in Schedule 4.1.

 

“Initial Unencumbered Pool Property Subsidiaries” means the Wholly Owned Subsidiaries of Borrower that own the Initial Eligible Unencumbered Pool Properties as of the Agreement Date and have executed the Guaranty.

 

“Intellectual Property” has the meaning given that term in Section 7.1.(t).

 

“Interest Expense” means, on any date of determination, without duplication, (a) total interest expense of the Parent excluding any non-cash interest expense incurred (in accordance with GAAP) for the period of two fiscal quarters most recently ended, determined on a consolidated basis for such period, plus (b) the Parent’s pro rata share of Interest Expense of Unconsolidated Affiliates for such period.

 

“Interest Period” means with respect to any LIBOR Loan, each period commencing on the date such LIBOR Loan is made or the last day of the next preceding Interest Period for such Loan and ending 1, 2, 3 or 6 months thereafter, as the Borrower may select in a Notice of Borrowing, Notice of Continuation or Notice of Conversion, as the case may be, except that each Interest Period that commences on the last Business Day of a calendar month shall end on the last Business Day of the appropriate subsequent calendar month.  Notwithstanding the foregoing:  (i) if any Interest Period would otherwise end after the Termination Date, such Interest Period shall end on the Termination Date; and (ii) each Interest Period that would otherwise end on a day which is not a Business Day shall end on the immediately following Business Day (or, if such immediately following Business Day falls in the next calendar month, on the immediately preceding Business Day).

 

 

 

  

  

  

 

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended, and all regulations and formal guidance issued thereunder.

 

“Investment” means, with respect to any Person, any acquisition or investment (whether or not of a controlling interest) by such Person, by means of any of the following:  (a) the purchase or other acquisition of any Equity Interest in another Person, (b) a loan, advance or extension of credit to, capital contribution to, Guaranty of Indebtedness of, or purchase or other acquisition of any Indebtedness of, another Person, including any partnership or joint venture interest in 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 the business or a division or operating unit of another Person.  Any binding commitment to make an Investment in any other Person, as well as any option of another Person to require an Investment in such Person, shall constitute an Investment.  Except as expressly provided otherwise, for purposes of determining compliance with any covenant contained in a Loan Document, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.

 

“Issuing Lender” means KeyBank, in its capacity as the Lender issuing the Letters of Credit any successors thereto; provided, however, that in the event that (A) the Borrower is required by the proposed beneficiary to have a Letter of Credit issued pursuant to the terms and conditions of this Agreement by an issuer with a higher rating than KeyBank has at any applicable time of reference (as determined  by Moody’s or S&P) or for such other reasons as KeyBank may approve in its sole discretion and (B) notwithstanding good faith efforts from the Borrower, a proposed beneficiary of a Letter of Credit will not accept said Letter of Credit from KeyBank, the Borrower shall have the right to elect, with prior written notice to Agent, any Lender having a higher rating than KeyBank (as determined by Moody’s or S&P) as the Issuing Lender for that particular Letter of Credit, and if such Lender agrees to issue such Letter of Credit, such Lender shall be an Issuing Lender; provided further, that no other Lender other than KeyBank shall be required to be an Issuing Lender and that no more than two (2) other Lenders in addition to KeyBank may be an Issuing Lender at any time. When referred to in this Agreement, Issuing Lender shall refer to the Lender acting as Issuing Lender with respect to any particular Letter of Credit issued pursuant to the terms and conditions of this Agreement and, with respect to establishing whether any consent, approval or waiver to be given or granted by the Issuing Lenders which, at the time such consent, approval or waiver is to be given or granted, have issued any outstanding Letters of Credit, shall be required.

 

“KeyBank” means KeyBank National Association and its successors by merger.

 

“L/C Commitment Amount” equals $25,000,000.

 

“Lender” means each financial institution from time to time party hereto as a “Lender” and as the context requires, includes the Issuing Lender and Swingline Lender.

 

“Lending Office” means, for each Lender and for each Type of Loan, the office of such Lender specified as such on its signature page hereto or in the applicable Assignment and Acceptance Agreement, or such other office of such Lender of which such Lender may notify the Agent in writing from time to time.

 

 

 

  

  

  

 

“Letter of Credit” has the meaning given that term in Section 2.3.(a).

 

“Letter of Credit Documents” means, with respect to any Letter of Credit, collectively, any application therefor, any certificate or other document presented in connection with a drawing under such Letter of Credit and any other agreement, instrument or other document governing or providing for (a) the rights and obligations of the parties concerned or at risk with respect to such Letter of Credit or (b) any collateral security for any of such obligations.

 

“Letter of Credit Liabilities” means, without duplication, at any time and in respect of any Letter of Credit, the sum of (a) the Stated Amount of such Letter of Credit plus (b) the aggregate unpaid principal amount of all Reimbursement Obligations of the Borrower at such time due and payable in respect of all drawings made under such Letter of Credit.  For purposes of this Agreement, a Lender (other than the Lender acting as the Issuing Lender) shall be deemed to hold a Letter of Credit Liability in an amount equal to its participation interest in the related Letter of Credit under Section 2.3.(i), and the Lender acting as the Issuing Lender shall be deemed to hold a Letter of Credit Liability in an amount equal to its retained interest in the related Letter of Credit after giving effect to the acquisition by the Lenders other than the Lender acting as the Issuing Lender of their participation interests under such Section.

 

“Level” has the meaning given that term in the definition of the term “Applicable Margin.”

 

“Leverage Ratio” means, as of any date, the ratio of (i) the then-current Total Indebtedness to (ii) the then-current Total Asset Value.

 

“LIBOR” means, with respect to a LIBOR Loan for any Interest Period therefor, the average rate as shown in Reuters Screen LIBOR01 Page (or any successor service, or if such Person no longer reports such rate as determined by Agent, by another commercially available source providing such quotations approved by Agent) at which deposits in U.S. dollars 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.  If such service or such other Person approved by Agent described above no longer reports such rate or Agent determines in good faith that the rate so reported no longer accurately reflects the rate available to Agent in the London Interbank Market, then at the option of Agent, Loans shall accrue interest at the Base Rate plus the Applicable Margin for such Loan.

 

“LIBOR Loan” means a Revolving Loan bearing interest at a rate based on LIBOR.

 

“Lien” as applied to the property of any Person means:  (a) any security interest, encumbrance, mortgage, deed to secure debt, deed of trust, assignment of leases and rents, pledge, lien, charge or lease constituting a Capitalized Lease Obligation, conditional sale or other title retention agreement, or other security title or encumbrance of any kind in respect of any property of such Person, or upon the income, rents or profits therefrom; (b) any arrangement, express or implied, under which any property of such Person is transferred, sequestered or otherwise identified for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority to the payment of the general, unsecured creditors of such Person; (c) the filing of any financing statement under the Uniform Commercial Code or its equivalent in any jurisdiction, other than any precautionary filing not otherwise constituting or giving rise to a Lien, including a financing statement filed (i) in respect of a lease not constituting a Capitalized Lease Obligation pursuant to Section 9-505 (or a successor provision) of the Uniform Commercial Code or its equivalent as in effect in an applicable jurisdiction or (ii) in connection with a sale or other disposition of accounts or other assets not prohibited by this Agreement in a transaction not otherwise constituting or giving rise to a Lien; and (d) any agreement by such Person to grant, give or otherwise convey any of the foregoing.

 

 

 

  

  

  

 

“Loan” means a Revolving Loan or a Swingline Loan.

 

“Loan Document” means this Agreement, each Note, each Letter of Credit Document, the Guaranty, and each other document or instrument now or hereafter executed and delivered by a Loan Party in connection with, pursuant to or relating to this Agreement.

 

“Loan Party” means the Borrower, the Parent and each other Guarantor.  Schedule 1.1.(A) sets forth the Loan Parties in addition to the Borrower and the Parent as of the Agreement Date.

 

“Mandatorily Redeemable Stock” means, with respect to any Person, any Equity Interest of such Person which by the terms of such Equity Interest (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than an Equity Interest to the extent redeemable in exchange for common stock or other equivalent common Equity Interests), (b) is convertible into or exchangeable or exercisable for Indebtedness or Mandatorily Redeemable Stock, or (c) is redeemable at the option of the holder thereof, in whole or in part (other than an Equity Interest which is redeemable solely in exchange for common stock or other equivalent common Equity Interests), in each case on or prior to the date on which all Revolving Loans are scheduled to be due and payable in full.

 

“Material Adverse Effect” means a materially adverse effect on (a) the business, assets, liabilities, condition (financial or otherwise), or results of operations of the Parent and its Subsidiaries, or the Borrower and its Subsidiaries, in each case, taken as a whole, (b) the ability of the Borrower and the other Loan Parties, taken as a whole, to perform their obligations under the Loan Documents, (c) the validity or enforceability of any of the Loan Documents, and (d) the rights and remedies of the Lenders and the Agent under any of the Loan Documents.

 

“Material Contract” means any contract or other arrangement (other than Loan Documents), whether written or oral, to which the Parent, the Borrower, or any other Subsidiary is a party as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could reasonably be expected to have a Material Adverse Effect.

 

“Material Subsidiary” means any Subsidiary of Parent or Borrower to which five percent (5%) or more of Total Asset Value is attributable.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

 

  

  

  

 

“Mortgage” means a mortgage, deed of trust, deed to secure debt or similar security instrument made by a Person owning an interest in real property granting a Lien on such interest in real property as security for the payment of Indebtedness of such Person or another Person.

 

“Mortgage Note Receivable” means a promissory note secured by a Mortgage of which the Parent, the Borrower or another Subsidiary is the holder and retains the rights of collection of all payments thereunder.

 

“Multiemployer Plan” means at any time a multiemployer plan within the meaning of Section 3(37) or 4001(a)(3) of ERISA or Section 414(f) of the Internal Revenue Code to which any member of the ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group during such five year period.

 

“Negative Pledge” means, with respect to a given asset, any provision of a document, instrument or agreement (other than any Loan Document) which prohibits or purports to prohibit the creation or assumption of any Lien on such asset as security for Indebtedness of the Person owning such asset or any other Person; provided, however, that an agreement that conditions a Person’s ability to encumber its assets upon the maintenance of one or more specified ratios that limit such Person’s ability to encumber its assets but that do not generally prohibit the encumbrance of its assets, or the encumbrance of specific assets, shall not constitute a Negative Pledge.

 

“Net Operating Income” or “NOI” means, for any Property and for a given period, the sum of the following (without duplication and determined on a consistent basis with prior periods):  (a) rents and other revenues received in the ordinary course from such Property (excluding pre-paid rents and revenues and security deposits except to the extent applied in satisfaction of tenants’ obligations for rent) minus (b) all expenses paid (excluding interest) related to the ownership, operation or maintenance of such Property, including but not limited to, an appropriate accrual for property taxes and insurance, assessments and the like, utilities, payroll costs, maintenance, repair and landscaping expenses, marketing expenses, and general and administrative expenses (including an appropriate allocation for legal, accounting, advertising, marketing and other expenses incurred in connection with such Property, but specifically excluding general overhead expenses of the Borrower or any Subsidiary and any property management fees) minus (c) the Capital Reserves for such Property as of the end of such period minus (d) the greater of (i) the actual property management fee paid during such period and (ii) an imputed management fee in the amount of three percent (3.0%) of the gross revenues for such Property for such period.  Net Operating Income of a Person shall include such Person’s pro rata share of Net Operating Income of its Unconsolidated Affiliates.  Net Operating Income shall be adjusted to remove any impact from straight line rent leveling adjustments required under GAAP and amortization of intangibles pursuant to Statement of Financial Accounting Standards number 141.  For the retail assets known as Cobblestone Plaza (also known as Pembroke Pines) and Plaza at Cedar Hill, Net Operating Income shall include annualized rental income from executed leases for those tenants that take occupancy prior to December 31, 2012 until such time as two (2) consecutive fiscal quarters of operations with such tenants are available.

 

 

 

  

  

  

 

“Net Proceeds” means with respect to any Equity Issuance by a Person, the aggregate amount of all cash and the Fair Market Value of all other property (other than securities of such Person being converted or exchanged in connection with such Equity Issuance) received by such Person in respect of such Equity Issuance net of investment banking fees, legal fees, accountants’ fees, underwriting discounts and commissions and other customary fees and expenses actually incurred by such Person in connection with such Equity Issuance.

 

“Non-Core Property” means any Property which is not leased or intended to be leased to tenants primarily for retail uses.

 

“Non-Defaulting Lender” means, at any time, any Lender that is not a Defaulting Lender at such time.

 

“Nonrecourse Indebtedness” means, with respect to a Person, Indebtedness for borrowed money in respect of which recourse for payment (except for customary exceptions, such as for fraud, misapplication of funds, environmental indemnities, voluntary bankruptcy, collusive involuntary bankruptcy, and other customary exceptions to recourse liability of a similar nature until a claim is made with respect thereto; provided that if Borrower reasonably believes that the liability with respect to such claim will be less than the Indebtedness to which it relates, Borrower may include such lesser amount subject to Administrative Agent’s prior written approval granted in its sole discretion) is contractually limited to specific assets of such Person encumbered by a Lien securing such Indebtedness.

 

“Note” means a Revolving Note or a Swingline Note.

 

“Notice of Borrowing” means a notice in the form of Exhibit C to be delivered to the Agent pursuant to Section 2.1.(b) evidencing the Borrower’s request for a borrowing of Revolving Loans.

 

“Notice of Continuation” means a notice in the form of Exhibit D to be delivered to the Agent pursuant to Section 2.8. evidencing the Borrower’s request for the Continuation of a LIBOR Loan.

 

“Notice of Conversion” means a notice in the form of Exhibit E to be delivered to the Agent pursuant to Section 2.9. evidencing the Borrower’s request for the Conversion of a Loan from one Type to another Type.

 

“Notice of Swingline Borrowing” means a notice in the form of Exhibit F to be delivered to the Agent pursuant to Section 2.2. evidencing the Borrower’s request for a borrowing of Swingline Loans.

 

“Obligations” means, individually and collectively:  (a) the aggregate principal balance of, and all accrued and unpaid interest on, all Loans; (b) all Reimbursement Obligations and all other Letter of Credit Liabilities; and (c) all other indebtedness, liabilities, obligations, covenants and duties of the Borrower and the other Loan Parties owing to the Agent or any Lender of every kind, nature and description, under or in respect of this Agreement or any of the other Loan Documents, including, without limitation, the Fees and indemnification obligations, whether direct or indirect, absolute or contingent, due or not due, contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any promissory note, including any such items accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for post-filing or post-petition interest or other amounts as allowed in such proceeding.

 

 

 

  

  

  

 

“Occupancy Rate” means, with respect to a Property (or for the purposes of Section 10.1.(e), the Unencumbered Pool Properties) at any time, the ratio, expressed as a percentage, of (a) the net rentable square footage of such Property (or for the purposes of Section 10.1.(e), all of the Unencumbered Pool Properties, excluding Construction-In-Process Properties and Renovation Properties) actually occupied by tenants that are not Affiliates paying rent at rates not materially less than rates generally prevailing at the time the applicable lease was entered into, pursuant to binding leases as to which no monetary default has occurred and has continued unremedied for 30 or more days to (b) the aggregate net rentable square footage of such Property (or for the purposes of Section 10.1.(e), all of the Unencumbered Pool Properties, excluding Construction-In-Process Properties and Renovation Properties).  For purposes of the definition of “Occupancy Rate”, a tenant shall be deemed to actually occupy a Property notwithstanding a temporary cessation of operations for renovation, repairs or other temporary reason.

 

“Off-Balance Sheet Obligations” means liabilities and obligations of the Parent, the Borrower, any Subsidiary or any other Person in respect of “off-balance sheet arrangements” (as defined in the SEC Off-Balance Sheet Rules) which the Parent would be required to disclose in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the Parent’s report on Form 10 Q or Form 10 K (or their equivalents) which the Parent is required to file with the Securities and Exchange Commission (or any Governmental Authority substituted therefor).  As used in this definition, the term “SEC Off-Balance Sheet Rules” means the Disclosure in Management’s Discussion and Analysis About Off Balance Sheet Arrangements, Securities Act Release No. 33-8182, 68 Fed. Reg. 5982 (Feb. 5, 2003) (codified at 17 CFR pts. 228, 229 and 249).

 

“Parent” has the meaning given such term in the introductory paragraph hereof.

 

“Participant” has the meaning given that term in Section 13.5.(c).

 

“PBGC” means the Pension Benefit Guaranty Corporation and any successor agency.

 

“Permitted Environmental Liens” means any Lien arising out of or related to any Environmental Laws (i) which is being contested in good faith by appropriate proceedings which operate to suspend the enforcement thereof and for which adequate reserves have been established in accordance with GAAP, (ii) which has been bonded-off in a manner reasonably acceptable to the Agent, or (iii) consisting of restrictions on the use of real property, which restrictions do not materially detract from the value, financeability or marketability of such property or impair the intended use thereof in the business of the Parent, the Borrower, and its other Subsidiaries.

 

“Permitted Liens” means, as to any asset or property of a Person:  (a) Liens securing taxes, assessments and other charges or levies imposed by any Governmental Authority (excluding any Lien imposed pursuant to any of the provisions of ERISA or pursuant to any Environmental Laws (other than Permitted Environmental Liens)) or the claims of materialmen, mechanics, carriers, warehousemen or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, which are not at the time required to be paid or discharged under Section 8.6.; (b) Liens consisting of deposits or pledges made, in the ordinary course of business, in connection with, or to secure payment of, obligations under workers’ compensation, unemployment insurance or similar Applicable Laws; (c) Liens consisting of encumbrances in the nature of zoning restrictions, easements, and rights or restrictions of record on the use of real property, which do not materially detract from the value of such property or impair the intended use thereof in the business of such Person; (d) the rights of tenants under leases or subleases not interfering with the ordinary conduct of business of such Person; (e) Liens in favor of the Agent for the benefit of the Lenders; (f) Liens in favor of the Borrower or a Guarantor securing obligations owing by a Subsidiary to the Borrower or a Guarantor; and (g) Liens in existence as of the Agreement Date and set forth in Part II of Schedule 7.1.(f).

 

 

 

  

  

  

 

“Person” means an individual, corporation, partnership, limited liability company, association, trust or unincorporated organization, or a government or any agency or political subdivision thereof.

 

“Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code or Section 302 of ERISA and either (a) is maintained, or contributed to, by any member of the ERISA Group or (b) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group.

 

“Post Default Rate” means a rate per annum equal to the interest rate otherwise in effect from time to time hereunder plus two percent (2.0%).

 

“Preferred Dividends” means, for any period and without duplication, all Restricted Payments paid during such period on Preferred Equity Interests issued by the Parent or a Subsidiary.  Preferred Dividends shall not include dividends or distributions (a) paid or payable solely in Equity Interests (other than Mandatorily Redeemable Stock) payable to holders of such class of Equity Interests, (b) paid or payable to the Parent or a Subsidiary, or (c) constituting or resulting in the redemption of Preferred Equity Interests, other than scheduled redemptions not constituting balloon, bullet or similar redemptions in full.

 

“Preferred Equity Interests” means, with respect to any Person, Equity Interests in such Person which are entitled to preference or priority over any other Equity Interest in such Person in respect of the payment of dividends or distribution of assets upon liquidation or both.

 

“Prime Rate” means the rate of interest per annum announced publicly by the Lender then acting as the Agent as its prime rate from time to time.  The Prime Rate is not necessarily the best or the lowest rate of interest offered by the Lender acting as the Agent or any other Lender.

 

“Principal Office” means the office of the Agent located at 127 Public Square, Cleveland, Ohio, or such other office of the Agent as the Agent may designate from time to time.

 

“Property” means any parcel of real property owned or leased (in whole or in part) or operated by the Parent, the Borrower, any other Subsidiary or any Unconsolidated Affiliate of the Parent and which is located in a contiguous state of the United States of America or the District of Columbia.

 

 

 

  

  

  

 

“Qualified REIT Subsidiary” shall have the meaning given to such term in the Internal Revenue Code.

 

“Recourse Indebtedness” means all Indebtedness of the Parent, the Borrower, or any Subsidiary of Parent which does not constitute Non-Recourse Indebtedness, determined on a consolidated basis.

 

“Register” has the meaning given that term in Section 13.5.(e).

 

“Regulatory Change” means, with respect to any Lender, any change effective after the Agreement Date in Applicable Law (including without limitation, Regulation D of the Board of Governors of the Federal Reserve System) or the adoption or making after such date of any interpretation, directive or request applying to a class of banks, including such Lender, of or under any Applicable Law (whether or not having the force of law and whether or not failure to comply therewith would be unlawful) by any Governmental Authority or monetary authority charged with the interpretation or administration thereof or compliance by any Lender with any request or directive regarding capital adequacy.  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 Agreement Date regardless of when adopted, enacted or issued.

 

“Reimbursement Obligation” means the absolute, unconditional and irrevocable obligation of the Borrower to reimburse the Issuing Lender for any drawing honored by the Issuing Lender under a Letter of Credit.

 

“REIT” means a Person qualifying for treatment as a “real estate investment trust” under the Internal Revenue Code.

 

“Renovation Property” means any Property where more than 10% of the net rentable square footage of such Property is vacant due to renovations being made at such Property.

 

“Requisite Lenders” means, as of any date, Lenders having at least 66-2/3% of the aggregate amount of the Commitments (not held by Defaulting Lenders who are not entitled to vote), or, if the Commitments have been terminated or reduced to zero, Lenders holding at least 66-2/3% of the principal amount of the aggregate outstanding Loans and Letter of Credit Liabilities (not held by Defaulting Lenders who are not entitled to vote).  Commitments, Revolving Loans and Letter of Credit Liabilities held by Defaulting Lenders shall be disregarded when determining the Requisite Lenders.

 

“Responsible Officer” means with respect to the Parent, the Borrower or any Subsidiary, the chief executive officer, the chief financial officer, any executive vice president or any senior vice president of the Parent, the Borrower or such Subsidiary.

 

 

 

  

  

  

 

“Restricted Payment” means:  (a) any dividend or other distribution, direct or indirect, on account of any Equity Interest of the Borrower or any Subsidiary now or hereafter outstanding, except a dividend payable solely in Equity Interests of identical class to the holders of that class; (b) any redemption, conversion, exchange, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any Equity Interest of the Borrower or any Subsidiary now or hereafter outstanding; and (c) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire any Equity Interests of the Borrower or any Subsidiary now or hereafter outstanding.

 

“Revolving Loan” means a loan made by a Lender to the Borrower pursuant to Section 2.1.(a).

 

“Revolving Note” has the meaning given that term in Section 2.10.(a).

 

“Secured Indebtedness” means any Indebtedness of a Person that is secured by a Lien on a Property or on any ownership interests in any other Person or on any other assets, provided that the portion of such Indebtedness included in “Secured Indebtedness” shall not exceed the sum of the aggregate value of the assets securing such Indebtedness at the time such Indebtedness was incurred, plus the aggregate value of any improvements to such assets, plus the value of any additional assets provided to secure such Indebtedness.  Notwithstanding the foregoing, Secured Indebtedness shall exclude Indebtedness that (i) is secured solely by ownership interests in another Person that owns a Property which is encumbered by a mortgage securing Indebtedness and (ii) is Recourse Indebtedness.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, together with all rules and regulations issued thereunder.

 

“Solvent” means, when used with respect to any Person, that (a) the fair value and the fair salable value of its assets (excluding any Indebtedness due from any affiliate of such Person) are each in excess of the fair valuation of its total liabilities (including all contingent liabilities computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that could reasonably be expected to become an actual and matured liability); (b) such Person is able to pay its debts or other obligations in the ordinary course as they mature; and (c) such Person has capital not unreasonably small to carry on its business and all business in which it proposes to be engaged.

 

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

 

“Stated Amount” means the amount available to be drawn by a beneficiary under a Letter of Credit from time to time, as such amount may be increased or reduced from time to time in accordance with the terms of such Letter of Credit.

 

“Subsidiary” means, for any Person, any corporation, partnership or other entity of which at least a majority of the Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other individuals performing similar functions of such corporation, partnership or other entity (without regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons the accounts of which are consolidated with those of such Person pursuant to GAAP.

 

 

 

  

  

  

 

“Swingline Commitment” means the Swingline Lender’s obligation to make Swingline Loans pursuant to Section 2.2. in an amount up to, but not exceeding, $25,000,000, as such amount may be reduced from time to time in accordance with the terms hereof.

 

“Swingline Lender” means KeyBank.

 

“Swingline Loan” means a loan made by the Swingline Lender to the Borrower pursuant to Section 2.2.(a).

 

“Swingline Note” means the promissory note of the Borrower payable to the order of the Swingline Lender in a principal amount equal to the amount of the Swingline Commitment as originally in effect and otherwise duly completed, substantially in the form of Exhibit G.

 

“Tangible Net Worth” means, as of a given date, (a) Total Asset Value less (b) Total Indebtedness.

 

“Taxable REIT Subsidiary” has the meaning given that term in the Internal Revenue Code.

 

“Taxes” has the meaning given that term in Section 3.12.

 

“Term Loan Agreement” means that certain Term Loan Agreement dated as of April 30, 2012, among the Borrower, the Parent, KeyBank National Association, as administrative agent, and the lenders party thereto from time to time, as such agreement may be amended, supplemented and modified from time to time.

 

“Term Loan” means the aggregate principal balance of the “Loan” as defined in the Term Loan Agreement.

 

“Termination Date” means February 26, 2017 or such later date to which the Termination Date may be extended pursuant to Section 2.12.

 

“Titled Agents” means each of the Agent, the Arrangers, the Syndication Agent and the Documentation Agent.

 

“Total Asset Value” means, on any date of determination, the sum of all of the following of the Borrower and its Subsidiaries on a consolidated basis determined in accordance with GAAP applied on a consistent basis:  (a) cash and Cash Equivalents, plus (b) with respect to each Property then owned by the Borrower or any Subsidiary (but excluding (A) Properties acquired by the Borrower or any Subsidiary during the immediately preceding four (4) fiscal quarter periods of the Borrower for which financial results have been reported, (B) Construction-In-Process Properties and (C) Unimproved Land), the quotient of (i) the product of (A) Net Operating Income attributable to such Property for the fiscal two (2) quarters most recently ended for which financial results have been reported, times (B) 2, divided by (ii) the Capitalization Rate, plus (c) the GAAP book value of Properties then owned which were acquired during the four (4) fiscal quarters most recently ended for which financial results have been reported, plus (d) the aggregate Construction-In-Process Value of each Construction-In-Process Property then owned, plus (e) the GAAP book value of those portions of Renovation Properties which are then vacant and under renovation, Unimproved Land, Mortgage Note Receivables and other promissory notes then owned. The Borrower’s pro rata share of assets held by Unconsolidated Affiliates will be included in Total Asset Value calculations consistent with the above described treatment for wholly owned assets.

 

 

 

  

  

  

 

“Total Indebtedness” means all Indebtedness of the Parent, the Borrower and all Subsidiaries determined on a consolidated basis.

 

“Type” with respect to any Revolving Loan, refers to whether such Loan is a LIBOR Loan or Base Rate Loan.

 

“Unconsolidated Affiliate” means, with respect to any Person, any other Person in whom such Person holds an Investment, which Investment is accounted for in the financial statements of such Person on an equity basis of accounting and whose financial results would not be consolidated under GAAP with the financial results of such Person on the consolidated financial statements of such Person.

 

“Unencumbered Pool” means, as of any date of determination, (a) the Initial Unencumbered Pool Properties, plus (b) each other Eligible Unencumbered Pool Property which has been added to the Unencumbered Pool pursuant to Section 4.2 as of such date, plus (c) any Property approved by the Requisite Lenders in writing for inclusion in the Unencumbered Pool, minus (d) any Property which has been removed from the Unencumbered Pool pursuant to Section 4.3 as of such date, minus (e) any Property which has been removed from the Unencumbered Pool pursuant to the next sentence hereof as of such date (and plus any Eligible Unencumbered Pool Property which has been added back into the Unencumbered Pool pursuant to the next sentence hereof), minus (f) any Unencumbered Pool Property which no longer satisfies the requirements of an Eligible Unencumbered Pool Property.  In the event that all or any material portion of a Property then within the Unencumbered Pool shall be damaged or taken by condemnation, then, in the Agent’s reasonable discretion, such Property shall either be treated as a Renovation Property or no longer be a part of the Unencumbered Pool unless and until any damage to such Property is repaired or restored, such Property becomes fully operational and the Agent shall receive evidence satisfactory to the Agent of the projected Net Operating Income of such Property following such repair or restoration.  In the event that all or any material portion of any Construction-in-Process Property then within the Unencumbered Pool shall be damaged or taken by condemnation, then the Agent may reduce the amount of the Unencumbered Pool Value in an amount which the Agent reasonably deems appropriate in light of such damage or condemnation; or may remove such Construction-In-Process Property from the Unencumbered Pool unless and until such Construction-In-Process Property is repaired or restored to the Agent’s reasonable satisfaction.

 

“Unencumbered Pool Property” means a Property then included in the Unencumbered Pool.

 

“Unencumbered Pool Value” means, as of any date of determination, (i) (A) the annualized aggregate NOI attributable to then-current Unencumbered Pool Properties included in the Unencumbered Pool for the period of two (2) fiscal quarters most recently ended for which financial results of Borrower have been reported (excluding 100% of the NOI attributable to any such Properties which constitute, as of such date, either Construction-In-Process Properties or Non-Core Properties, or which are not owned by Borrower or a Wholly Owned Subsidiary of Borrower for at least the four (4) immediately preceding full fiscal quarters for which financial results of Borrower have been reported (or which are no longer owned by Borrower or a Wholly Owned Subsidiary of Borrower as of such date)) divided by (B) the Capitalization Rate, plus (ii) the value, at cost, of all Unencumbered Pool Properties included in the Unencumbered Pool acquired by Borrower or a Wholly Owned Subsidiary of Borrower during the four (4) immediately preceding full fiscal quarters for which financial results of Borrower have been reported, plus (iii) the value, at cost, of any Unencumbered Pool Properties included in the Unencumbered Pool that are either Non-Core Properties or Construction-In-Process Properties and of those portions of the Eligible Unencumbered Pool Properties which are also Renovation Properties which are then vacant and under renovation, provided, however, in no event shall the amount added under clause (iii) herein on account of Construction-In-Process Properties and such portions of Renovation Properties constitute more than fifteen percent (15%) of the total Unencumbered Pool Value or shall the total amount of Unencumbered Pool Value attributable to Unencumbered Pool Properties leased by Loan Parties under Ground Leases constitute more than fifteen percent (15%) of the total Unencumbered Pool Value.

 

 

 

  

  

  

 

“Unfunded Liabilities” means, with respect to any Plan at any time, the amount (if any) by which (a) the value of all benefit liabilities under such Plan, determined on a plan termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds (b) the fair market value of all Plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential liability of a member of the ERISA Group to the PBGC or any other Person.

 

“Unimproved Land” means, on any date of determination, land on which no development (other than improvements that are not material and are temporary in nature) has occurred and for which no development is scheduled in the following 12 months.

 

“Unsecured Indebtedness” means with respect to any person, all Indebtedness of such person for borrowed money that does not constitute Secured Indebtedness.

 

“Wholly Owned Subsidiary” means any Subsidiary of a Person in respect of which all of the equity securities or other ownership interests (other than, in the case of a corporation, directors’ qualifying shares) are at the time directly or indirectly owned or controlled by such Person or one or more other Subsidiaries of such Person or by such Person and one or more other Subsidiaries of such Person.

 

	
Section 1.2.  

	
General; References to Times.

 

Unless otherwise indicated, all accounting terms, ratios and measurements shall be interpreted or determined in accordance with GAAP; provided that, if at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Requisite Lenders shall so request, the Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Requisite Lenders); provided further 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 Borrower shall provide to the 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.  References in this Agreement to “Sections”, “Articles”, “Exhibits” and “Schedules” are to sections, articles, exhibits and schedules herein and hereto unless otherwise indicated.  References in this Agreement to any document, instrument or agreement (a) shall include all exhibits, schedules and other attachments thereto, (b) shall include all documents, instruments or agreements issued or executed in replacement thereof, to the extent permitted hereby and (c) shall mean such document, instrument or agreement, or replacement or predecessor thereto, as amended, supplemented, restated or otherwise modified as of the date of this Agreement and from time to time thereafter to the extent not prohibited hereby and in effect at any given time.  A reference to a Person shall include its successors and permitted assigns.  Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, the feminine and the neuter.  Unless explicitly set forth to the contrary, a reference to “Subsidiary” means a Subsidiary of the Parent or a Subsidiary of such Subsidiary and a reference to an “Affiliate” means a reference to an Affiliate of the Parent.  Titles and captions of Articles, Sections, subsections and clauses in this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement.  Unless otherwise indicated, all references to time are references to Cleveland, Ohio time.  The calculation of liabilities shall not include any fair value adjustments to the carrying value of liabilities to record such liabilities at fair value pursuant to electing the fair value option election under FASB ASC 825-10-25 (formerly known as FAS 159, The Fair Value Option for Financial Assets and Financial Liabilities) or other FASB standards allowing entities to elect fair value option for financial liabilities.  Therefore, the amount of liabilities shall be the historical cost basis, which generally is the contractual amount owed adjusted for amortization or accretion of any premium or discount.

 

 

 

 

  

  

  

 

	
Section 1.3.  

	
Financial Attributes of Non-Wholly Owned Subsidiaries.

 

When determining compliance by the Borrower, the Parent, or any Wholly Owned Subsidiary with any financial covenant contained in any of the Loan Documents, only the pro rata share of the Borrower, the Parent, or the Wholly Owned Subsidiary, as applicable, of the financial assets and liabilities of a Subsidiary that is not a Wholly Owned Subsidiary shall be included.

 

ARTICLE II.      CREDIT FACILITY

 

	
Section 2.1.  

	
Revolving Loans.

 

(a) Generally.  Subject to the terms and conditions hereof, during the period from the Effective Date to but excluding the Termination Date, each Lender severally and not jointly agrees to make Revolving Loans to the Borrower in an aggregate principal amount at any one time outstanding up to, but not exceeding, the lesser of (a) the amount of such Lender’s Commitment and (b) such Lender’s Commitment Percentage of the Borrowing Base.  Subject to the terms and conditions of this Agreement, during the period from the Effective Date to but excluding the Termination Date, the Borrower may borrow, repay and reborrow Revolving Loans hereunder.

 

(b) Requesting Revolving Loans.  The Borrower shall give the Agent notice pursuant to a Notice of Borrowing or telephonic notice of each borrowing of Revolving Loans.  Each Notice of Borrowing shall be delivered to the Agent before 11:00 a.m. (i) in the case of LIBOR Loans, on the date three Business Days prior to the proposed date of such borrowing and (ii) in the case of Base Rate Loans, on the date one Business Day prior to the proposed date of such borrowing.  Any such telephonic notice shall include all information to be specified in a written Notice of Borrowing and shall be promptly confirmed in writing by the Borrower pursuant to a Notice of Borrowing sent to the Agent by telecopy on the same day of the giving of such telephonic notice.  The Agent will transmit by telecopy the Notice of Borrowing (or the information contained in such Notice of Borrowing) to each Lender promptly upon receipt by the Agent and in no event after the close of business on the date the Agent receives such notice.  Each Notice of Borrowing or telephonic notice of each borrowing shall be irrevocable once given and binding on the Borrower.

 

 

 

  

  

  

 

(c) Disbursements of Revolving Loan Proceeds.  No later than 1:00 p.m. on the date specified in the Notice of Borrowing, each Lender will make available for the account of its applicable Lending Office to the Agent at the Principal Office, in immediately available funds, the proceeds of the Revolving Loan to be made by such Lender.  With respect to Revolving Loans to be made after the Effective Date, unless the Agent shall have been notified by any Lender prior to the specified date of borrowing that such Lender does not intend to make available to the Agent the Revolving Loan to be made by such Lender on such date, the Agent may assume that such Lender will make the proceeds of such Revolving Loan available to the Agent on the date of the requested borrowing as set forth in the Notice of Borrowing and the Agent may (but shall not be obligated to), in reliance upon such assumption, make available to the Borrower the amount of such Revolving Loan to be provided by such Lender.  Subject to satisfaction of the applicable conditions set forth in Article VI. for such borrowing, the Agent will make the proceeds of such borrowing available to the Borrower no later than 2:00 p.m. on the date and at the account specified by the Borrower in such Notice of Borrowing.

 

	
Section 2.2.  

	
Swingline Loans.

 

(a) Swingline Loans.  Subject to the terms and conditions hereof, during the period from the Effective Date to but excluding the Termination Date, the Swingline Lender agrees to make Swingline Loans to the Borrower in an aggregate principal amount at any one time outstanding up to, but not exceeding, the amount of the Swingline Commitment.  If at any time the aggregate principal amount of the Swingline Loans outstanding at such time exceeds the Swingline Commitment in effect at such time, the Borrower shall immediately pay the Agent for the account of the Swingline Lender the amount of such excess.  Subject to the terms and conditions of this Agreement, the Borrower may borrow, repay and reborrow Swingline Loans hereunder.  Notwithstanding anything to the contrary contained in this Section 2.2., the Swingline Lender shall not be obligated to make any Swingline Loan at a time when any other Lender is a Defaulting Lender, unless the Swingline Lender is satisfied that the participation therein will otherwise be fully allocated to the Non-Defaulting Lenders consistent with Section 3.11.(c) and the Defaulting Lender shall not participate therein, except to the extent the Swingline Lender has entered into arrangements with the Borrower or such Defaulting Lender that are satisfactory to the Swingline Lender in its good faith determination to eliminate the Swingline Lender’s Fronting Exposure with respect to any such Defaulting Lender, including the delivery of cash collateral.

 

 

 

  

  

  

 

(b) Procedure for Borrowing Swingline Loans.  The Borrower shall give the Agent and the Swingline Lender notice pursuant to a Notice of Swingline Borrowing or telephonic notice of each borrowing of a Swingline Loan.  Each Notice of Swingline Borrowing shall be delivered to the Swingline Lender no later than 1:00 p.m. on the proposed date of such borrowing.  Any such notice given telephonically shall include all information to be specified in a written Notice of Swingline Borrowing and shall be promptly confirmed in writing by the Borrower pursuant to a Notice of Swingline Borrowing sent to the Swingline Lender by telecopy on the same day of the giving of such telephonic notice.  On the date of the requested Swingline Loan and subject to satisfaction of the applicable conditions set forth in Article VI. for such borrowing, the Swingline Lender will make the proceeds of such Swingline Loan available to the Borrower in Dollars, in immediately available funds, at the account specified by the Borrower in the Notice of Swingline Borrowing not later than 4:00 p.m. on such date.

 

(c) Interest.  Swingline Loans shall bear interest at a per annum rate equal to the Base Rate plus the Applicable Margin for Base Rate Loans.  Interest payable on Swingline Loans is solely for the account of the Swingline Lender.  All accrued and unpaid interest on Swingline Loans shall be payable on the dates and in the manner provided in Section 2.4. with respect to interest on Base Rate Loans (except as the Swingline Lender and the Borrower may otherwise agree in writing in connection with any particular Swingline Loan).

 

(d) Swingline Loan Amounts, Etc.  Each Swingline Loan shall be in the minimum amount of $500,000 and integral multiples of $100,000 or such other minimum amounts agreed to by the Swingline Lender and the Borrower.  Any voluntary prepayment of a Swingline Loan must be in integral multiples of $100,000 or the aggregate principal amount of all outstanding Swingline Loans (or such other minimum amounts upon which the Swingline Lender and the Borrower may agree) and in connection with any such prepayment, the Borrower must give the Swingline Lender prior written notice thereof no later than 10:00 a.m. on the date of such prepayment.  The Swingline Loans shall, in addition to this Agreement, be evidenced by the Swingline Note.

 

(e) Repayment and Participations of Swingline Loans.  The Borrower agrees to repay each Swingline Loan within one Business Day of demand therefor by the Swingline Lender and in any event, within 5 Business Days after the date such Swingline Loan was made.  Notwithstanding the foregoing, the Borrower shall repay the entire outstanding principal amount of, and all accrued but unpaid interest on, the Swingline Loans on the Termination Date (or such earlier date as the Swingline Lender and the Borrower may agree in writing).  In lieu of demanding repayment of any outstanding Swingline Loan from the Borrower, the Swingline Lender may, on behalf of the Borrower (which hereby irrevocably directs the Swingline Lender to act on its behalf for such purpose), request a borrowing of Base Rate Loans from the Lenders in an amount equal to the principal balance of such Swingline Loan.  The amount limitations of Section 3.5.(a) shall not apply to any borrowing of Base Rate Loans made pursuant to this subsection.  The Swingline Lender shall give notice to the Agent of any such borrowing of Base Rate Loans not later than 12:00 noon on the proposed date of such borrowing and the Agent shall give notice of such borrowing to the Lenders by 1:00 p.m. on such date.  No later than 2:00 p.m. on such date, each Lender will make available to the Agent at the Principal Office for the account of Swingline Lender, in immediately available funds, the proceeds of the Base Rate Loan to be made by such Lender.  The Agent shall pay the proceeds of such Base Rate Loans to the Swingline Lender, which shall apply such proceeds to repay such Swingline Loan.  At the time each Swingline Loan is made, each Lender shall automatically (and without any further notice or action) be deemed to have purchased from the Swingline Lender, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Commitment Percentage in such Swingline Loan.  If the Lenders are prohibited from making Loans required to be made under this subsection for any reason, including without limitation, the occurrence of any Default or Event of Default described in Section 11.1.(f) or 11.1.(g), upon notice from the Agent or the Swingline Lender, each Lender severally agrees to pay to the Agent for the account of the Swingline Lender in respect of such participation the amount of such Lender’s Commitment Percentage of each outstanding Swingline Loan.  If such amount is not in fact made available to the Agent by any Lender, the Swingline Lender shall be entitled to recover such amount on demand from such Lender, together with accrued interest thereon for each day from the date of demand thereof, at the Federal Funds Rate.  If such Lender does not pay such amount forthwith upon demand therefor by the Agent or the Swingline Lender, and until such time as such Lender makes the required payment, the Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in the amount of such unpaid participation obligation for all purposes of the Loan Documents (other than those provisions requiring the other Lenders to purchase a participation therein).  Further, such Lender shall be deemed to have assigned any and all payments made of principal and interest on its Loans, and any other amounts due to it hereunder, to the Swingline Lender to fund Swingline Loans in the amount of the participation in Swingline Loans that such Lender failed to purchase pursuant to this Section until such amount has been purchased (as a result of such assignment or otherwise).  A Lender’s obligation to make payments in respect of a participation in a Swingline Loan shall be absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, (i) any claim of setoff, counterclaim, recoupment, defense or other right which such Lender or any other Person may have or claim against the Agent, the Swingline Lender or any other Person whatsoever, (ii) the occurrence or continuation of a Default or Event of Default (including, without limitation, any of the Defaults or Events of Default described in Sections 11.1.(f) or 11.1.(g)) or the termination of any Lender’s Revolving Commitment, (iii) the existence (or alleged existence) of an event or condition which has had or could have a Material Adverse Effect, (iv) any breach of any Loan Document by the Agent, any Lender or the Borrower or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.

 

 

 

 

  

  

  

 

	
Section 2.3.  

	
Letters of Credit.

 

(a) Letters of Credit.  Subject to the terms and conditions of this Agreement, the Issuing Lender, on behalf of the Lenders, agrees to issue for the account of the Borrower during the period from and including the Effective Date to, but excluding, the date 30 days prior to the Termination Date one or more letters of credit (each a “Letter of Credit”) up to a maximum aggregate Stated Amount at any one time outstanding not to exceed the L/C Commitment Amount.  The existing letters of credit listed on Schedule 2.3(a) issued by KeyBank in its capacity as “Agent” under the Existing Credit Agreement (the “Prior Agent”) shall be deemed to be Letters of Credit issued hereunder and the Prior Agent and the Lenders shall have the same rights and obligations with respect to such Letters of Credit as the Issuing Lender and Lenders would have if such Letters of Credit had been issued after the date hereof.  Notwithstanding anything to the contrary contained in this Section 2.3., the Issuing Lender shall not be obligated to issue, amend, extend, renew or increase any Letter of Credit at a time when any other Lender is a Defaulting Lender, unless the Issuing Lender is satisfied that the participation therein will otherwise be fully allocated to the Non-Defaulting Lenders consistent with Section 3.11.(c) and the Defaulting Lender shall have no participation therein, except to the extent the Issuing Lender has entered into arrangements with the Borrower or such Defaulting Lender which are satisfactory to the Issuing Lender in it good faith determination to eliminate the Issuing Lender’s Fronting Exposure with respect to any such Defaulting Lender, including the delivery of cash collateral.

 

(b) Terms of Letters of Credit.  At the time of issuance, the amount, form, terms and conditions of each Letter of Credit, and of any drafts or acceptances thereunder, shall be subject to approval by the Issuing Lender and the Borrower.  Notwithstanding the foregoing, in no event may the expiration date of any Letter of Credit extend beyond the earlier of (i) the date one year from its date of issuance or (ii) the Termination Date; provided, however, a Letter of Credit may contain a provision providing for the automatic extension of the expiration date in the absence of a notice of non-renewal from the Issuing Lender but in no event shall any such provision permit the extension of the expiration date of such Letter of Credit beyond the Termination Date; provided further, that a Letter of Credit may, as a result of its express terms or as the result of the effect of an automatic extension provision, have an expiration of not more than one year beyond the Termination Date so long as (x) the Borrower delivers to the Issuing Lender no later than 30 days prior to the Termination Date cash collateral for such Letter of Credit for deposit into the Collateral Account in an amount equal to the Stated Amount of such Letter of Credit.

 

 

 

  

  

  

 

(c) Requests for Issuance of Letters of Credit.  The Borrower shall give the Issuing Lender written notice (or telephonic notice promptly confirmed in writing) at least 5 Business Days prior to the requested date of issuance of a Letter of Credit, such notice to describe in reasonable detail the proposed terms of such Letter of Credit and the nature of the transactions or obligations proposed to be supported by such Letter of Credit, and in any event shall set forth with respect to such Letter of Credit the proposed (i) Stated Amount, (ii) the beneficiary, and (iii) the expiration date.  The Borrower shall also execute and deliver such customary letter of credit application forms as may reasonably be requested from time to time by the Issuing Lender and are consistent with the term set forth herein.  Provided the Borrower has given the notice prescribed by the first sentence of this subsection and subject to the other terms and conditions of this Agreement, including the satisfaction of any applicable conditions precedent set forth in Article VI., the Issuing Lender shall issue the requested Letter of Credit on the requested date of issuance for the benefit of the stipulated beneficiary.  Upon the written request of the Borrower, the Issuing Lender shall deliver to the Borrower a copy of each issued Letter of Credit within a reasonable time after the date of issuance thereof.  To the extent any term of a Letter of Credit Document is inconsistent with a term of any Loan Document, the term of such Loan Document shall control.

 

(d) Reimbursement Obligations.  Upon receipt by the Issuing Lender from the beneficiary of a Letter of Credit of any demand for payment under such Letter of Credit, the Issuing Lender shall promptly notify the Borrower and the Agent of the amount to be paid by the Issuing Lender as a result of such demand and the date on which payment is to be made by the Issuing Lender to such beneficiary in respect of such demand; provided, however, the Issuing Lender’s failure to give, or delay in giving, such notice shall not discharge the Borrower in any respect from the applicable Reimbursement Obligation.  The Borrower hereby unconditionally and irrevocably agrees to pay and reimburse the Issuing Lender for the amount of each demand for payment under such Letter of Credit not later than the date on which payment is to be made by the Issuing Lender to the beneficiary thereunder, without presentment, demand, protest or other formalities of any kind (other than notice as provided in this subsection).  Upon receipt by the Issuing Lender of any payment in respect of any Reimbursement Obligation, the Issuing Lender shall promptly pay to each Lender that has acquired a participation therein under the second sentence of Section 2.3.(i) such Lender’s Commitment Percentage of such payment.

 

 

 

  

  

  

 

(e) Manner of Reimbursement.  Upon its receipt of a notice referred to in the immediately preceding subsection (d), the Borrower shall advise the Agent and the Issuing Lender whether or not the Borrower intends to borrow hereunder to finance its obligation to reimburse the Issuing Lender for the amount of the related demand for payment and, if it does, the Borrower shall submit a timely request for such borrowing as provided in the applicable provisions of this Agreement.  If the Borrower fails to so advise the Agent and the Issuing Lender, or if the Borrower fails to reimburse the Issuing Lender for a demand for payment under a Letter of Credit by the date of such payment and provide evidence thereof to Agent, then (i) if the applicable conditions contained in Article VI. would permit the making of Revolving Loans, the Borrower shall be deemed to have requested a borrowing of Revolving Loans (which shall be Base Rate Loans) in an amount equal to the unpaid Reimbursement Obligation and Agent shall give each Lender prompt notice of the amount of the Revolving Loan to be made available to the Issuing Lender not later than 1:00 p.m. and (ii) if such conditions would not permit the making of Revolving Loans, the provisions of subsection (j) of this Section shall apply.  The limitations of Section 3.5.(a) shall not apply to any borrowing of Base Rate Loans under this subsection.

 

(f) Effect of Letters of Credit on Commitments.  Upon the issuance of any Letter of Credit and until such Letter of Credit shall have expired or been terminated, the Commitment of each Lender shall be deemed to be utilized for all purposes of this Agreement in an amount equal to the product of (i) such Lender’s Commitment Percentage and (ii) the sum of (A) the Stated Amount of such Letter of Credit plus (B) any related Reimbursement Obligations then outstanding.

 

(g) Issuing Lender’s Duties Regarding Letters of Credit; Unconditional Nature of Reimbursement Obligations.  In examining documents presented in connection with drawings under Letters of Credit and making payments under such Letters of Credit against such documents, the Issuing Lender shall only be required to use the same standard of care as it uses in connection with examining documents presented in connection with drawings under letters of credit in which it has not sold participations and making payments under such letters of credit.  The Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit.  In furtherance and not in limitation of the foregoing, neither the Issuing Lender nor any of the Lenders shall be responsible for (i) the form, validity, sufficiency, accuracy, genuineness or legal effects of any document submitted by any party in connection with the application for and issuance of or any drawing honored under any Letter of Credit even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any 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; (iii) failure of the beneficiary of any Letter of Credit to comply fully with conditions required in order to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telex, telecopy or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit, or of the proceeds thereof; (vii) the misapplication by the beneficiary of any Letter of Credit, or the proceeds of any drawing under any Letter of Credit; or (viii) any consequences arising from causes beyond the control of the Issuing Lender or the Lenders.  None of the above shall affect, impair or prevent the vesting of any of the Issuing Lender’s rights or powers hereunder.  Any action taken or omitted to be taken by the Issuing Lender under or in connection with any Letter of Credit, if taken or omitted in the absence of gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final, non-appealable judgment), shall not create against the Issuing Lender or any Lender any liability to the Borrower or any Lender.  In this regard, the obligation of the Borrower to reimburse the Issuing Lender for any drawing made under any Letter of Credit shall be absolute, unconditional and irrevocable and shall be paid strictly in accordance with the terms of this Agreement and any other applicable Letter of Credit Document under all circumstances whatsoever, including without limitation, the following circumstances:  (A) any lack of validity or enforceability of any Letter of Credit Document or any term or provisions therein; (B) any amendment or waiver of or any consent to departure from all or any of the Letter of Credit Documents; (C) the existence of any claim, setoff, defense or other right which the Borrower may have at any time against the Issuing Lender, any Lender, any beneficiary of a Letter of Credit or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or in the Letter of Credit Documents or any unrelated transaction; (D) any breach of contract or dispute between the Borrower, the Issuing Lender, any Lender or any other Person; (E) any demand, statement or any other document presented under a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein or made in connection therewith being untrue or inaccurate in any respect whatsoever; (F) any non application or misapplication by the beneficiary of a Letter of Credit of the proceeds of any drawing under such Letter of Credit; (G) payment by the Issuing Lender under any Letter of Credit against presentation of a draft or certificate which does not strictly comply with the terms of such Letter of Credit; and (H) any other act, omission to act, delay or circumstance whatsoever that might, but for the provisions of this Section, constitute a legal or equitable defense to or discharge of the Borrower’s Reimbursement Obligations.  Notwithstanding anything to the contrary contained in this Section or Section 13.9., but not in limitation of the Borrower’s unconditional obligation to reimburse the Issuing Lender for any drawing made under a Letter of Credit as provided in this Section, the Borrower shall have no obligation to indemnify the Issuing Lender or any Lender in respect of any liability incurred by the Issuing Lender or a Lender to the extent such liability arises out of the gross negligence or willful misconduct of the Issuing Lender or a Lender in respect of a Letter of Credit as determined by a court of competent jurisdiction in a final, non-appealable judgment.  Except as otherwise provided in this Section, nothing in this Section shall affect any rights the Borrower may have with respect to the gross negligence or willful misconduct of the Issuing Lender or any Lender with respect to any Letter of Credit.

 

 

 

  

  

  

 

(h) Amendments, Etc.  The issuance by the Issuing Lender of any amendment, supplement or other modification to any Letter of Credit shall be subject to the same conditions applicable under this Agreement to the issuance of new Letters of Credit (including, without limitation, that the request therefor be made through the Agent), and no such amendment, supplement or other modification shall be issued unless either (i) the respective Letter of Credit affected thereby would have complied with such conditions had it originally been issued hereunder in such amended, supplemented or modified form or (ii) the Requisite Lenders shall have consented thereto.  In connection with any such amendment, supplement or other modification, the Borrower shall pay the Fees, if any, payable under the last sentence of Section 3.6.(b).

 

(i) Lenders’ Participation in Letters of Credit.  Immediately upon the issuance by the Issuing Lender of any Letter of Credit each Lender shall be deemed to have irrevocably and unconditionally purchased and received from the Issuing Lender, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Commitment Percentage of the liability of the Issuing Lender with respect to such Letter of Credit, and each Lender thereby shall absolutely, unconditionally and irrevocably assume, as primary obligor and not as surety, and shall be unconditionally obligated to the Issuing Lender to pay and discharge when due, such Lender’s Commitment Percentage of the Issuing Lender’s liability under such Letter of Credit.  In addition, upon the making of each payment by a Lender to the Issuing Lender in respect of any Letter of Credit pursuant to the immediately following subsection (j), such Lender shall, automatically and without any further action on the part of the Issuing Lender or such Lender, acquire (i) a participation in an amount equal to such payment in the Reimbursement Obligation owing to the Issuing Lender by the Borrower in respect of such Letter of Credit and (ii) a participation in a percentage equal to such Lender’s Commitment Percentage in any interest or other amounts payable by the Borrower in respect of such Reimbursement Obligation (other than the Fees payable to the Issuing Lender pursuant to the third and last sentences of Section 3.6.(b)).

 

(j) Payment Obligation of Lenders.  Each Lender severally agrees to pay to the Issuing Lender on demand in immediately available funds in Dollars the amount of such Lender’s Commitment Percentage of each drawing paid by the Issuing Lender under each Letter of Credit to the extent such amount is not reimbursed by the Borrower pursuant to Section 2.3.(d); provided, however, that in respect of any drawing under any Letter of Credit, the maximum amount that any Lender shall be required to fund, whether as a Revolving Loan or as a participation, shall not exceed such Lender’s Commitment Percentage of such drawing.  If the notice referenced in the second sentence of Section 2.3.(e) is received by a Lender not later than 11:00 a.m., then such Lender shall make such payment available to the Agent for the benefit of the Issuing Lender not later than 2:00 p.m. on the date of demand therefor; otherwise, such payment shall be made available to the Agent for the benefit of the Issuing Lender not later than 1:00 p.m. on the next succeeding Business Day.  Each such Lender’s obligation to make such payments to the Issuing Lender under this subsection, and the Issuing Lender’s right to receive the same, shall be absolute, irrevocable and unconditional and shall not be affected in any way by any circumstance whatsoever, including without limitation, (i) the failure of any other Lender to make its payment under this subsection, (ii) the financial condition of the Borrower or any other Loan Party, (iii) the existence of any Default or Event of Default, including any Event of Default described in Section 11.1.(f) or 11.1.(g) or (iv) the termination of the Commitments.  Each such payment to the Issuing Lender shall be made without any offset, abatement, withholding or deduction whatsoever.

 

 

 

 

  

  

  

 

(k) Information to Lenders.  The Issuing Lender shall periodically deliver to the Lenders information setting forth the Stated Amount of all outstanding Letters of Credit.  Other than as set forth in this subsection and the obligations set forth in this section with respect to notices to the Agent, the Issuing Lender shall have no duty to notify the Lenders regarding the issuance or other matters regarding Letters of Credit issued hereunder.  The failure of the Issuing Lender to perform its requirements under this subsection shall not relieve any Lender from its obligations under Section 2.3.(j).

 

	
Section 2.4.  

	
Rates and Payment of Interest on Loans.

 

(a) Rates.  The Borrower promises to pay to the Agent for the account of each Lender interest on the unpaid principal amount of each Loan made by such Lender for the period from and including the date of the making of such Loan to but excluding the date such Loan shall be paid in full, at the following per annum rates:

 

(i) during such periods as such Loan is a Base Rate Loan, at the Base Rate (as in effect from time to time) plus the Applicable Margin; and

 

(ii) during such periods as such Loan is a LIBOR Loan, at Adjusted LIBOR for such Loan for the Interest Period therefor plus the Applicable Margin.

 

Notwithstanding the foregoing, during the continuance of an Event of Default, the Borrower shall pay to the Agent for the account of each Lender interest at the Post Default Rate on the outstanding principal amount of any Loan made by such Lender, on all Reimbursement Obligations and on any other amount payable by the Borrower hereunder or under the Notes held by such Lender to or for the account of such Lender (including without limitation, accrued but unpaid interest to the extent permitted under Applicable Law).

 

(b) Payment of Interest.  Accrued and unpaid interest on each Loan shall be payable in the case of both Base Rate Loans and LIBOR Loans, monthly in arrears on the first day of each calendar month and upon the Termination Date or any earlier date on which Loans are due and payable in full, whether by acceleration or otherwise.  Interest payable at the Post Default Rate shall be payable from time to time on demand.  Promptly after the determination of any interest rate provided for herein or any change therein, the Agent shall give notice thereof to the Lenders to which such interest is payable and to the Borrower.  All determinations by the Agent of an interest rate hereunder shall be conclusive and binding on the Lenders and the Borrower for all purposes, absent manifest error.

 

	
Section 2.5.  

	
Number of Interest Periods.

 

There may be no more than 6 different Interest Periods for LIBOR Loans outstanding at the same time.

 

	
Section 2.6.  

	
Repayment of Loans.

 

The Borrower shall repay the entire outstanding principal amount of, and all accrued but unpaid interest on, the Revolving Loans on the Termination Date, subject to any earlier dates on which mandatory principal payments may be required under Section 2.7(b).

 

 

 

  

  

  

 

	
Section 2.7.  

	
Prepayments.

 

(a) Optional.  Subject to Section 5.4., the Borrower may prepay any Loan at any time without premium or penalty.  The Borrower shall give the Agent at least one Business Day’s prior written notice of the prepayment of any Revolving Loan.

 

(b) Mandatory.

 

(i) Outstandings In Excess of Commitments.  If at any time the aggregate principal amount of all outstanding Revolving Loans, together with the aggregate amount of all Letter of Credit Liabilities and the aggregate principal amount of all outstanding Swingline Loans, exceeds the aggregate amount of the Commitments in effect at such time, the Borrower shall immediately pay to the Agent for the accounts of the Lenders the amount of such excess; and

 

(ii) Outstandings in Excess of Borrowing Base.  If at any time the aggregate outstanding principal balance of all Unsecured Indebtedness of the Parent, the Borrower and their respective Subsidiaries (including, without limitation the outstanding principal balance of the Loans, together with the aggregate amount of all Letter of Credit Liabilities and the Term Loan), exceeds the Borrowing Base, then the Borrower shall, within five (5) Business Days of the Agent’s demand, pay the amount of such excess, at its choice, either to reduce such Unsecured Indebtedness or to the Agent for the account of the Lenders for application to the Revolving Loans. All payments under this Section shall be applied to pay all amounts of principal outstanding on the Loans and any Reimbursement Obligations pro rata in accordance with Section 3.2. and if any Letters of Credit are outstanding at such time the remainder, if any, shall be deposited into the Collateral Account for application to any Reimbursement Obligations.  If the Borrower is required to pay any outstanding LIBOR Loans by reason of this Section prior to the end of the applicable Interest Period therefor, the Borrower shall pay all amounts due under Section 5.4.

 

	
Section 2.8.  

	
Continuation.

 

So long as no Default or Event of Default shall exist, the Borrower may on any Business Day, with respect to any LIBOR Loan, elect to maintain such LIBOR Loan or any portion thereof as a LIBOR Loan by selecting a new Interest Period for such LIBOR Loan.  Each new Interest Period selected under this Section shall commence on the last day of the immediately preceding Interest Period.  Each selection of a new Interest Period shall be made by the Borrower giving to the Agent a Notice of Continuation not later than 11:00 a.m. on the third Business Day prior to the date of any such Continuation.  Such notice by the Borrower of a Continuation shall be by telephone or telecopy, confirmed immediately in writing if by telephone, in the form of a Notice of Continuation, specifying (a) the proposed date of such Continuation, (b) the LIBOR Loans and portions thereof subject to such Continuation and (c) the duration of the selected Interest Period, all of which shall be specified in such manner as is necessary to comply with all limitations on Loans outstanding hereunder.  Each Notice of Continuation shall be irrevocable by and binding on the Borrower once given.  Promptly after receipt of a Notice of Continuation, the Agent shall notify each Lender by telecopy, or other similar form of transmission, of the proposed Continuation.  If the Borrower shall fail to select in a timely manner a new Interest Period for any LIBOR Loan in accordance with this Section, or if a Default or Event of Default shall exist, such Loan will automatically, on the last day of the current Interest Period therefor, Convert into a Base Rate Loan notwithstanding the first sentence of Section 2.9. or the Borrower’s failure to comply with any of the terms of such Section.

 

 

 

  

  

  

 

	
Section 2.9.  

	
Conversion.

 

The Borrower may on any Business Day, upon the Borrower’s giving of a Notice of Conversion to the Agent, Convert all or a portion of a Loan of one Type into a Loan of another Type; provided, however, a Base Rate Loan may not be Converted to a LIBOR Loan if a Default or Event of Default shall exist.  Any Conversion of a LIBOR Loan into a Base Rate Loan shall be made on, and only on, the last day of an Interest Period for such LIBOR Loan.  Each such Notice of Conversion shall be given not later than 11:00 a.m. on the Business Day prior to the date of any proposed Conversion into Base Rate Loans and on the third Business Day prior to the date of any proposed Conversion into LIBOR Loans.  Promptly after receipt of a Notice of Conversion, the Agent shall notify each Lender by telecopy, or other similar form of transmission, of the proposed Conversion.  Subject to the restrictions specified above, each Notice of Conversion shall be by telephone (confirmed immediately in writing) or telecopy in the form of a Notice of Conversion specifying (a) the requested date of such Conversion, (b) the Type of Loan to be Converted, (c) the portion of such Type of Loan to be Converted, (d) the Type of Loan such Loan is to be Converted into and (e) if such Conversion is into a LIBOR Loan, the requested duration of the Interest Period of such Loan.  Each Notice of Conversion shall be irrevocable by and binding on the Borrower once given.

 

	
Section 2.10.  

	
Notes.

 

(a) Revolving Note.  If requested by any Lender, the Revolving Loans made by such Lender shall, in addition to this Agreement, also be evidenced by a promissory note of the Borrower substantially in the form of Exhibit H (each a “Revolving Note”), payable to the order of such Lender in a principal amount equal to the amount of its Commitment as originally in effect and otherwise duly completed.

 

(b) Records.  The date, amount, interest rate, Type and duration of Interest Periods (if applicable) of each Loan made by each Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by such Lender on its books and such entries shall be binding on the Borrower, absent manifest error; provided, however, that the failure of a Lender to make any such record shall not affect the obligations of the Borrower under any of the Loan Documents.

 

(c) Lost, Stolen, Destroyed or Mutilated Notes.  Upon receipt by the Borrower of (i) written notice from a Lender that a Note of such Lender has been lost, stolen, destroyed or mutilated, and (ii) (A) in the case of loss, theft or destruction, an unsecured agreement of indemnity from such Lender in form reasonably satisfactory to the Borrower, or (B) in the case of mutilation, upon surrender and cancellation of such Note, the Borrower shall at its own expense execute and deliver to such Lender a new Note dated the date of such lost, stolen, destroyed or mutilated Note.

 

(d) No Novation.  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 accounts, records, “Revolving Notes” or “Swingline Note”, as applicable, as defined in the Existing Credit Agreement, which indebtedness under the Revolving Notes is instead allocated among the Lenders as of the date hereof in accordance with their respective Commitment Percentages.  On the Effective Date, the Lenders shall make adjustments among themselves so that the outstanding Revolving Loans are consistent with their Commitment Percentages.

 

 

 

  

  

  

 

	
Section 2.11.  

	
Voluntary Reductions of the Commitment.

 

The Borrower shall have the right to terminate or reduce the aggregate unused amount of the Commitments (for which purpose use of the Commitments shall be deemed to include the aggregate amount of Letter of Credit Liabilities and the aggregate principal amount of all outstanding Swingline Loans) at any time and from time to time without penalty or premium upon not less than three (3) Business Days prior written notice to the Agent of each such termination or reduction, which notice shall specify the effective date thereof and the amount of any such reduction and shall be irrevocable once given and effective only upon receipt by the Agent; provided, however, if the Borrower seeks to reduce the aggregate amount of the Commitments below $100,000,000, then the Commitments shall all automatically and permanently be reduced to zero.  The Agent will promptly transmit such notice to each Lender.  The Commitments, once terminated or reduced may not be increased or reinstated.

 

	
Section 2.12.  

	
Extension of Termination Date.

 

The Borrower shall have the right, exercisable one time, to extend the Termination Date by one year.  The Borrower may exercise such right only by executing and delivering to the Agent at least 90 days prior to the current Termination Date, a written request for such extension (an “Extension Request”).  The Agent shall forward to each Lender a copy of the Extension Request delivered to the Agent promptly upon receipt thereof.  Subject to satisfaction of the following conditions, the Termination Date shall be extended for one year:  (a) at the time of such notice, immediately prior to such extension and immediately after giving effect thereto, (i) no Default or Event of Default shall exist and (ii) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party, shall be true and correct in all material respects on and as of the date of such extension with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents and (b) the Borrower shall have paid the Fees payable under Section 3.6.(c).

 

	
Section 2.13.  

	
Expiration or Maturity Date of Letters of Credit Past Termination Date.

 

If on the date the Commitments are terminated or reduced to zero (whether voluntarily, by reason of the occurrence of an Event of Default or otherwise), there are any Letters of Credit outstanding hereunder with respect to which the Borrower has not complied with the conditions set forth in the second proviso of the second sentence of Section 2.3.(b),g the Borrower shall, on such date, pay to the Agent an amount of money equal to the Stated Amount of such Letter(s) of Credit for deposit into the Collateral Account.

 

 

 

  

  

  

 

 

	
Section 2.14.  

	
Amount Limitations.

 

Notwithstanding any other term of this Agreement or any other Loan Document, no Lender shall be required to make a Loan or to purchase a participation in a Swingline Loan, the Issuing Lender shall not be required to issue a Letter of Credit and no reduction of the Commitments pursuant to Section 2.11. shall take effect, if immediately after the making of such Loan or purchase of such participation, the issuance of such Letter of Credit or such reduction in the Commitments, the aggregate principal amount of all Unsecured Indebtedness of the Parent, the Borrower and their respective Subsidiaries (including, without limitation, outstanding Loans together with the aggregate amount of all Letter of Credit Liabilities), would exceed the lesser of (a) the aggregate amount of the Commitments at such time or (b) the Borrowing Base at such time.

 

	
Section 2.15.  

	
Increase of Commitments.

 

With the prior consent of the Agent, the Borrower shall have the right at any time and from time to time during the term of this Agreement to request increases in the aggregate amount of the Commitments (provided that after giving effect to any increases in the Commitments pursuant to this Section, the aggregate amount of the Commitments may not exceed $400,000,000) by providing written notice to the Agent, which notice shall be irrevocable once given.  Each such increase in the Commitments must be in an aggregate minimum amount of $10,000,000 and integral multiples of $5,000,000 in excess thereof.  No Lender shall be required to increase its Commitment and any new Lender becoming a party to this Agreement in connection with any such requested increase must be an Eligible Assignee.  If a new Lender becomes a party to this Agreement, or if any existing Lender agrees to increase its Commitment, such Lender shall on the date it becomes a Lender hereunder (or increases its Commitment, in the case of an existing Lender) (and as a condition thereto) purchase from the other Lenders its Commitment Percentage (as determined after giving effect to the increase of Commitments) of any outstanding Revolving Loans, by making available to the Agent for the account of such other Lenders at the Principal Office, in same day funds, an amount equal to the sum of (A) the portion of the outstanding principal amount of such Revolving Loans to be purchased by such Lender plus (B) the aggregate amount of payments previously made by the other Lenders under Section 2.2.(e) and Section 2.3.(j) which have not been repaid plus (C) interest accrued and unpaid to and as of such date on such portion of the outstanding principal amount of such Revolving Loans.  The Borrower shall pay to the Lenders amounts payable, if any, to such Lenders under Section 5.4. as a result of the prepayment of any such Revolving Loans.  No increase of the Commitments may be effected under this Section if (x) a Default or Event of Default shall be in existence on the effective date of such increase or (y) any representation or warranty made or deemed made by the Borrower or any other Loan Party in any Loan Document to which any such Loan Party is a party is not (or would not be) true or correct on the effective date of such increase (except for representations or warranties which expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents).  In connection with any increase in the aggregate amount of the Commitments pursuant to this subsection, (a) any Lender becoming a party hereto shall execute such documents and agreements as the Agent may reasonably request and (b) the Borrower shall, if requested by the affected Lender, make appropriate arrangements so that each new Lender, and any existing Lender increasing its Commitment, receives a new or replacement Note, as appropriate, in the amount of such Lender’s Commitment within 2 Business Days of the effectiveness of the applicable increase in the aggregate amount of Commitments.  Each of the parties hereto hereby agrees that, upon the effectiveness of any increase of Commitments under this Section 2.15., the Agent may (without the consent of any Lender) amend this Agreement to the extent (but only to the extent) necessary to reflect the increase of Commitments.

 

 

 

  

  

  

 

ARTICLE III.    PAYMENTS, FEES AND OTHER GENERAL PROVISIONS

 

	
Section 3.1.  

	
Payments.

 

Except to the extent otherwise provided herein, all payments of principal, interest and other amounts to be made by the Borrower under this Agreement or any other Loan Document shall be made in Dollars, in immediately available funds, without deduction, set off or counterclaim, to the Agent at its Principal Office, not later than 2:00 p.m. on the date on which such payment shall become due (each such payment made after such time on such due date to be deemed to have been made on the next succeeding Business Day).  Subject to Section 11.4., the Borrower may, at the time of making each payment under this Agreement or any Note, specify to the Agent the amounts payable by the Borrower hereunder to which such payment is to be applied.  Each payment received by the Agent for the account of a Lender under this Agreement or any Note shall be paid to such Lender at the applicable Lending Office of such Lender no later than 5:00 p.m. on the date of receipt.  If the Agent fails to pay such amount to a Lender as provided in the previous sentence, the Agent shall pay interest on such amount until paid at a rate per annum equal to the Federal Funds Rate from time to time in effect.  If the due date of any payment under this Agreement or any other Loan Document would otherwise fall on a day which is not a Business Day such date shall be extended to the next succeeding Business Day and interest shall be payable for the period of such extension.

 

	
Section 3.2.  

	
Pro Rata Treatment.

 

(a) Generally.  Except to the extent otherwise provided herein:  (a) each borrowing from the Lenders under Section 2.1.(a), 2.2.(e) and 2.3.(e) shall be made from the Lenders, each payment of the Fees under Section 3.6.(a), the first sentence of Section 3.6.(b) and Section 3.6.(c) shall be made for the account of the Lenders, and each termination or reduction of the amount of the Commitments under Section 2.11. shall be applied to the respective Commitments of the Lenders, pro rata according to the amounts of their respective Commitments; (b) each payment or prepayment of principal of Revolving Loans by the Borrower shall be made for the account of the Lenders pro rata in accordance with the respective unpaid principal amounts of the Revolving Loans held by them, provided that if immediately prior to giving effect to any such payment in respect of any Revolving Loans the outstanding principal amount of the Revolving Loans shall not be held by the Lenders pro rata in accordance with their respective Commitments in effect at the time such Loans were made, then such payment shall be applied to the Revolving Loans in such manner as shall result, as nearly as is practicable, in the outstanding principal amount of the Revolving Loans being held by the Lenders pro rata in accordance with their respective Commitments; (c) each payment of interest on Revolving Loans by the Borrower shall be made for the account of the Lenders pro rata in accordance with the amounts of interest on such Loans then due and payable to the respective Lenders; (d) the making, Conversion and Continuation of Revolving Loans of a particular Type (other than Conversions provided for by Section 5.5.) shall be made pro rata among the Lenders according to the amounts of their respective Commitments (in the case of making of Loans) or their respective Loans (in the case of Conversions and Continuations of Loans) and the then current Interest Period for each Lender’s portion of each Loan of such Type shall be coterminous; (e) the Lenders’ participation in, and payment obligations in respect of, Letters of Credit under Section 2.3., shall be pro rata in accordance with their respective Commitments; and (f) the Lenders’ participation in, and payment obligations in respect of, Swingline Loans under Section 2.2., shall be pro rata in accordance with their respective Commitments.  All payments of principal, interest, fees and other amounts in respect of the Swingline Loans shall be for the account of the Swingline Lender only (except to the extent any Lender shall have acquired a participating interest in any such Swingline Loan pursuant to Section 2.2.(e), in which case such payments shall be pro rata in accordance with such participating interests).

 

 

 

  

  

  

 

(b) Defaulting Lenders.  Notwithstanding anything to the contrary contained in this Section 3.2., if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, each payment by the Borrower hereunder shall be applied in accordance with Section 3.11.(d).

 

	
Section 3.3.  

	
Sharing of Payments, Etc.

 

If a Lender shall obtain payment of any principal of, or interest on, any Loan made by it to the Borrower under this Agreement, or shall obtain payment on any other Obligation owing by the Borrower or a Loan Party through the exercise of any right of set off, banker’s lien or counterclaim or similar right or otherwise or through voluntary prepayments directly to a Lender or other payments made by the Borrower to a Lender not in accordance with the terms of this Agreement and such payment should be distributed to the Lenders pro rata in accordance with Section 3.2. or Section 11.4., as applicable, such Lender shall promptly purchase from the other Lenders participations in (or, if and to the extent specified by such Lender, direct interests in) the Loans made by the other Lenders or other Obligations owed to such other Lenders in such amounts, and make such other adjustments from time to time as shall be equitable, to the end that all the Lenders shall share the benefit of such payment (net of any reasonable expenses which may be incurred by such Lender in obtaining or preserving such benefit) pro rata in accordance with Section 3.2. or Section 11.4., as applicable.  To such end, all the Lenders shall make appropriate adjustments among themselves (by the resale of participations sold or otherwise) if such payment is rescinded or must otherwise be restored.  The Borrower agrees that any Lender so purchasing a participation (or direct interest) in the Loans or other Obligations owed to such other Lenders may exercise all rights of set off, banker’s lien, counterclaim or similar rights with respect to such participation as fully as if such Lender were a direct holder of Loans in the amount of such participation.  Nothing contained herein shall require any Lender to exercise any such right or shall affect the right of any Lender to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or obligation of the Borrower.

 

	
Section 3.4.  

	
Several Obligations.

 

No Lender shall be responsible for the failure of any other Lender to make a Loan or to perform any other obligation to be made or performed by such other Lender hereunder, and the failure of any Lender to make a Loan or to perform any other obligation to be made or performed by it hereunder shall not relieve the obligation of any other Lender to make any Loan or to perform any other obligation to be made or performed by such other Lender.

 

 

 

 

  

  

  

 

	
Section 3.5.  

	
Minimum Amounts.

 

(a) Borrowings and Conversions.  Except as otherwise provided in Sections 2.2.(e) and 2.3.(e), each borrowing of Base Rate Loans shall be in an aggregate minimum amount of $1,000,000 and integral multiples of $500,000 in excess thereof.  Each borrowing and each Conversion of LIBOR Loans shall be in an aggregate minimum amount of $1,000,000 and integral multiples of $1,000,000 in excess of that amount.

 

(b) Prepayments.  Each voluntary prepayment of Revolving Loans shall be in an aggregate minimum amount of $500,000 and integral multiples of $100,000 in excess thereof (or, if less, the aggregate principal amount of Revolving Loans then outstanding).

 

(c) Reductions of Commitments.  Each reduction of the Commitments under Section 2.11. shall be in an aggregate minimum amount of $10,000,000 and integral multiples of $5,000,000 in excess thereof.

 

(d) Letters of Credit.  The initial Stated Amount of each Letter of Credit shall be at least $100,000 or such lesser amount as is acceptable to the Issuing Lender.

 

	
Section 3.6.  

	
Fees.

 

(a) Unused Fee.  During the period from the Effective Date to but excluding the Termination Date, the Borrower agrees to pay to the Agent for the account of the Non-Defaulting Lenders an unused facility fee with respect to the average daily difference between (i) the aggregate principal amount of all outstanding Loans plus the aggregate amount of all Letter of Credit Liabilities and (ii) the aggregate amount of the Commitments (the “Unused Amount”).  Such fee shall be computed by multiplying the Unused Amount with respect to such quarter by the corresponding per annum rate set forth below:

 

	
Unused Amount

	
Unused Fee

	
Greater than 50% of the aggregate amount of Commitments

	
0.35%

	
Less than or equal to 50% of the aggregate amount of Commitments

	
0.25%

Such fee shall be payable in arrears on the last day of each March, June, September or December of each calendar year.  Any such accrued and unpaid fee shall also be payable on the Termination Date or any earlier date of termination of the Commitments or reduction of the Commitments to zero.

 

(b) Letter of Credit Fees.  The Borrower agrees to pay to the Agent for the account of the Non-Defaulting Lenders a letter of credit fee at a rate per annum equal to the Applicable Margin for LIBOR Loans times the daily average Stated Amount of each Letter of Credit for the period from and including the date of issuance of such Letter of Credit (x) through and including the date such Letter of Credit expires or is terminated or (y) to but excluding the date such Letter of Credit is drawn in full.  Notwithstanding the foregoing, during the continuance of an Event of Default, the foregoing Letter of Credit fees shall be payable at a rate equal to the amount as calculated pursuant to the preceding sentence plus two percent (2%).  The fees provided for in the immediately preceding sentence shall be nonrefundable and payable in arrears on (i) the last day of March, June, September and December in each year, (ii) the Termination Date, (iii) the date the Commitments are terminated or reduced to zero and (iv) thereafter from time to time on demand of the Issuing Lender.  In addition, the Borrower shall pay to the Issuing Lender for its own account and not the account of any Lender, an issuance fee in respect of each Letter of Credit equal to the greater of (i) $1,500 or (ii) one eighth of one percent (0.125%) per annum on the initial Stated Amount of such Letter of Credit for the period from and including the date of issuance of such Letter of Credit (A) through and including the date such Letter of Credit expires or is terminated or (B) to but excluding the date such Letter of Credit is drawn in full.  The fees provided for in the immediately preceding sentence shall be nonrefundable and payable upon issuance.  The Borrower shall pay directly to the Issuing Lender from time to time on demand all commissions, charges, costs and expenses in the amounts customarily charged by the Issuing Lender from time to time in like circumstances with respect to the issuance of each Letter of Credit, drawings, amendments and other transactions relating thereto.

 

 

  

  

  

 

 

(c) Extension Fee.  If the Borrower exercises its right to extend the Termination Date in accordance with Section 2.12., the Borrower agrees to pay to the Agent for the account of each Lender a fee equal to one-fifth of one percent (0.20%) of the amount of such Lender’s Commitment (whether or not utilized) at the time of such extension.  Such fee shall be due and payable in full on the date the Agent receives the Extension Request pursuant to such Section.

 

(d) Administrative and Other Fees.  The Borrower agrees to pay the administrative and other fees of the Agent as may be agreed to in writing by the Borrower and the Agent from time to time.

 

	
Section 3.7.  

	
Computations.

 

Unless otherwise expressly set forth herein, any accrued interest on any Loan, any Fees or any other Obligations due hereunder shall be computed on the basis of a year of 365 or 366 days, as applicable, and the actual number of days elapsed; provided, however, interest on LIBOR Rate Loans shall be computed on the basis of a year of 360 days and the actual number of day elapsed.

 

	
Section 3.8.  

	
Usury.

 

In no event shall the amount of interest due or payable on the Loans or other Obligations exceed the maximum rate of interest allowed by Applicable Law and, if any such payment is paid by the Borrower or any other Loan Party or received by any Lender, then such excess sum shall be credited as a payment of principal, unless the Borrower shall notify the respective Lender in writing that the Borrower elects to have such excess sum returned to it forthwith.  It is the express intent of the parties hereto that the Borrower not pay and the Lenders not receive, directly or indirectly, in any manner whatsoever, interest in excess of that which may be lawfully paid by the Borrower under Applicable Law.

 

 

 

  

  

  

 

 

	
Section 3.9.  

	
Agreement Regarding Interest and Charges.

 

The parties hereto hereby agree and stipulate that the only charge imposed upon the Borrower for the use of money in connection with this Agreement is and shall be the interest specifically described in Section 2.4.(a)(i) and (ii) and in Section 2.2.(c).  Notwithstanding the foregoing, the parties hereto further agree and stipulate that all agency fees, syndication fees, unused fees, closing fees, letter of credit fees, underwriting fees, default charges, late charges, funding or “breakage” charges, increased cost charges, attorneys’ fees and reimbursement for costs and expenses paid by the Agent or any Lender to third parties or for damages incurred by the Agent or any Lender, in each case in connection with the transactions contemplated by this Agreement and the other Loan Documents, are charges made to compensate the Agent or any such Lender for underwriting or administrative services and costs or losses performed or incurred, and to be performed or incurred, by the Agent and the Lenders in connection with this Agreement and shall under no circumstances be deemed to be charges for the use of money.  All charges other than charges for the use of money shall be fully earned and nonrefundable when due.

 

	
Section 3.10.  

	
Statements of Account.

 

The Agent will account to the Borrower monthly with a statement of Loans, Letters of Credit, accrued interest and Fees, charges and payments made pursuant to this Agreement and the other Loan Documents, and such account rendered by the Agent shall be deemed conclusive upon Borrower absent manifest error.  The failure of the Agent to deliver such a statement of accounts shall not relieve or discharge the Borrower from any of its obligations hereunder.

 

	
Section 3.11.  

	
Defaulting Lenders.

 

(a) Generally.  If for any reason any Lender shall be a Defaulting Lender, then, in addition to the rights and remedies that may be available to the Agent or the Borrower under this Agreement or Applicable Law, such Defaulting Lender’s right to participate in the administration of the Loans, this Agreement and the other Loan Documents, including without limitation, any right to vote in respect of, to consent to or to direct any action or inaction of the Agent or to be taken into account in the calculation of the Requisite Lenders or all of the Lenders, shall be suspended during the pendency of such failure or refusal.  If a Lender is a Defaulting Lender because it has failed to make timely payment to the Agent of any amount required to be paid to the Agent hereunder (without giving effect to any notice or cure periods), in addition to other rights and remedies which the Agent or the Borrower may have under the immediately preceding provisions or otherwise, the Agent shall be entitled (i) to collect interest from such Defaulting Lender on such delinquent payment for the period from the date on which the payment was due until the date on which the payment is made at the Federal Funds Rate, (ii) to withhold or setoff and to apply in satisfaction of the defaulted payment and any related interest, any amounts otherwise payable to such Defaulting Lender under this Agreement or any other Loan Document and (iii) to bring an action or suit against such Defaulting Lender in a court of competent jurisdiction to recover the defaulted amount and any related interest.  Any amounts received by the Agent in respect of a Defaulting Lender’s Loans shall be paid applied as set forth in Section 3.11.(d).

 

(b) Purchase or Cancellation of Defaulting Lender’s Commitment.  Any Non-Defaulting Lender shall have the right, but not the obligation, in its sole discretion, to acquire all of a Defaulting Lender’s Commitment.  Any Lender desiring to exercise such right shall give written notice thereof to the Agent and the Borrower no sooner than 2 (two) Business Days and not later than 5 (five) Business Days after such Defaulting Lender became a Defaulting Lender.  If more than one Lender exercises such right, each such Lender shall have the right to acquire an amount of such Defaulting Lender’s Commitment in proportion to the Commitments of the other Lenders exercising such right.  If after such 5th (fifth) Business Day, the Lenders have not elected to purchase all of the Commitment of such Defaulting Lender, then the Borrower may, by giving written notice thereof to the Agent, such Defaulting Lender and the other Lenders, either (i) demand that such Defaulting Lender assign its Commitment to an Eligible Assignee subject to and in accordance with the provisions of Section 13.5.(d) for the purchase price provided for below or (ii) terminate the Commitment of such Defaulting Lender, whereupon such Defaulting Lender shall no longer be a party hereto or have any rights or obligations hereunder or under any of the other Loan Documents.  Upon the termination of such Defaulting Lender’s Commitment, the Borrower may, at its option but subject to first obtaining Agent’s prior written approval, which may be granted in its sole discretion, notwithstanding the provisions in Section 3.2., make a payment to the Defaulting Lender in an amount equal to the principal balance of the Loans outstanding, accrued interest and other fees owed by the Borrower to the Defaulting Lender.  No party hereto shall have any obligation whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee.  Upon any such purchase or assignment, the Defaulting Lender’s interest in the Loans and its rights hereunder (but not its liability in respect thereof or under the Loan Documents or this Agreement to the extent the same relate to the period prior to the effective date of the purchase) shall terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest to the purchaser or assignee thereof, including an appropriate Assignment and Acceptance Agreement.  The purchase price for the Commitment of a Defaulting Lender shall be equal to the amount of the principal balance of the Loans outstanding and owed by the Borrower to the Defaulting Lender.  Prior to payment of such purchase price to a Defaulting Lender, the Agent shall apply against such purchase price any amounts retained by the Agent pursuant to Section 3.11.(d).  Defaulting Lender shall be entitled to receive amounts owed to it by the Borrower under the Loan Documents which accrued prior to the date of the default by the Defaulting Lender, to the extent the same are received by the Agent from or on behalf of the Borrower.  There shall be no recourse against any Lender or the Agent for the payment of such sums except to the extent of the receipt of payments from any other party or in respect of the Loans.

 

 

  

  

  

 

 

(c) Reallocation of Commitment Percentage to Reduce Fronting Exposure.  During any period in which there is a Defaulting Lender, all or any part of such Defaulting Lender’s obligation to acquire, refinance or fund participations in Swingline Loans or Letters of Credit pursuant to Section 2.2.(e) and Section 2.3.(i) shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Commitment Percentages (computed without giving effect to the Commitment of such Defaulting Lender; provided that (i) each such reallocation shall be given effect only if, at the date the applicable Lender becomes a Defaulting Lender, no Default or Event of Default exists, (ii) the conditions set forth in Sections 6.1. and 6.2, are satisfied at the time of such reallocation (and, unless the Borrower shall have notified the Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at that time), (iii) the representations and warranties set forth in Article VII hereof shall be true and correct in all material respects on and as of the date of such reallocation with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, and (iv) the aggregate obligation of each Non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit and Swingline Loans shall not exceed the positive difference, if any, of (A) the Commitment of that Non-Defaulting Lender minus (B) the sum of (1) the aggregate outstanding principal amount of the Revolving Loans of that Lender plus (2) such Lender’s pro rata portion in accordance with its Commitment of (x) outstanding Swingline Loans and (y) outstanding Letter of Credit Liabilities.  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.

 

(d) Reallocation of Payments.  Any payment of principal, interest, fees or other amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, or otherwise, and including any amounts made available to the Agent for the account of such Defaulting Lender pursuant to Section 13.3.), shall be applied at such time or times as may be determined by the Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender to the Agent (other than with respect to Letter of Credit Liabilities) hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to the Issuing Lender (with respect to Letter of Credit Liabilities) and/or the Swingline Lender hereunder; third, if so determined by the Issuing Lender or requested by the Swingline Lender, to be held as cash collateral for future funding obligations of such Defaulting Lender of any participation in any Swingline Loan or Letter of Credit; fourth, 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 Agent; fifth, if so determined by the Agent and the Borrower, to be held in a non-interest bearing deposit account and released pro rata in order to (x) satisfy obligations of such Defaulting Lender to fund Loans or participations under this Agreement and (y) be held as cash collateral for future funding obligations of such Defaulting Lender of any participation in any Swingline Loan or Letter of Credit; sixth, to the payment of any amounts owing to the Agent, the Lenders, the Issuing Lender or Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by the Agent, any Lender, the Issuing Lender or Swingline 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 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 eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (i) such payment is a payment of the principal amount of any Revolving Loans or funded participations in Swingline Loans or Letters of Credit in respect of which such Defaulting Lender has not fully funded its appropriate share and (ii) such Revolving Loans or funded participations in Swingline Loans or Letters of Credit were made at a time when the conditions set forth in Sections 6.1. and 6.2., as applicable, were satisfied or waived, such payment shall be applied solely to pay the Revolving Loans of, and funded participations in Swingline Loans or Letters of Credit owed to, all Non-Defaulting Lenders on a pro rata basis until such time as all Revolving Loans and funded and unfunded participations in Letters of Credit and Swingline Loans are held by the Lenders pro rata in accordance with their Commitment Percentages without regard to Section 3.11.(c), prior to being applied to the payment of any Revolving Loans of, or funded participations in Swingline Loans or Letters of Credit owed to, such Defaulting Lender.  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 3.11.(d) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

 

 

  

  

  

 

(e) Cash Collateral for Letters of Credit and Swingline Loans.  Within five (5) Business Days of demand by the Issuing Lender or the Swingline Lender from time to time, the Borrower shall deliver to the Agent for the benefit of the Issuing Lender and the Swingline Lender, as applicable, cash collateral in an amount sufficient to cover all Fronting Exposure with respect to the Issuing Lender and/or the Swingline Lender (after giving effect to Sections 2.2.(a), 2.3.(a) and 3.11.(c)) on terms satisfactory to the Issuing Lender and/or Swingline Lender in its good faith determination (and such cash collateral shall be in Dollars).  Any such cash collateral shall be deposited in the Collateral Account as collateral (solely for the benefit of the Issuing Lender and/or the Swingline Lender) for the payment and performance of each Defaulting Lender’s pro rata portion in accordance with their respective Commitments of outstanding Letter of Credit Liabilities or Swingline Loans.  Moneys in the Collateral Account deposited pursuant to this section shall be applied by the Agent to reimburse the Issuing Lender and/or the Swingline Lender immediately for each Defaulting Lender’s pro rata portion in accordance with their respective Commitments of any funding obligation with respect to a Swingline Loan or Letter of Credit which has not otherwise been reimbursed by the Borrower or such Defaulting Lender.

 

(f) Prepayment of Swingline Loans.  Within one (1) Business Day of demand by the Swingline Lender or the Agent from time to time, the Borrower shall prepay Swingline Loans in an amount of all Fronting Exposure with respect to the Swingline Lender (after giving effect to Sections 2.2.(a) and 3.11.(c)).

 

(g) Certain Fees.

 

(i) Each Defaulting Lender shall not be entitled to receive any Unused Fee pursuant to Section 3.6.(a) for any period during which that Lender is a Defaulting Lender.

 

(ii) Each Defaulting Lender shall not be entitled to receive Letter of Credit fees pursuant to Section 3.6.(b) for any period during which that Lender is a Defaulting Lender.

 

(iii) With respect to any Unused Fee or Letter of Credit fees not required to be paid to any Defaulting Lender pursuant to clause (i) or (ii) above, the Borrower shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in Letter of Credit Liabilities or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to Section 3.11.(c), (y) pay to the Issuing Lender and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such Issuing Lender’s or Swingline Lender’s Fronting Exposure to such Defaulting Lender and (z) not be required to pay any remaining amount of any such fee.

 

(h) Defaulting Lender Cure.  If the Borrower, the Agent, the Issuing Lender and the Swingline Lender agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Agent will so notify the parties hereto, whereupon as of the 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 that portion of outstanding Loans of the other Lenders or take such other actions as the Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held on a pro rata basis by the Lenders in accordance with their Commitments (without giving effect to Section 3.11.(c)), 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 such 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 such Lender’s having been a Defaulting Lender.

 

 

  

  

  

 

 

	
Section 3.12.  

	
Taxes.

 

(a) Taxes Generally.  All payments by the Borrower of principal of, and interest on, the Loans and all other Obligations shall be made free and clear of and without deduction for any present or future excise, stamp or other taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding (i) franchise taxes, (ii) any taxes imposed on or measured by any Lender’s assets, net income, receipts or branch profits, (iii) any taxes (other than withholding taxes) with respect to the Agent or a Lender that would not be imposed but for a connection between the Agent or such Lender and the jurisdiction imposing such taxes (other than a connection arising solely by virtue of the activities of the Agent or such Lender pursuant to or in respect of this Agreement or any other Loan Document), (iv) any taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges to the extent imposed as a result of the failure of the Agent or a Lender, as applicable, to provide and keep current (to the extent legally able) any certificates, documents or other evidence required to qualify for an exemption from, or reduced rate of, any such taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges or required by the immediately following subsection (c) to be furnished by the Agent or such Lender, as applicable, and (v) any Excluded FATCA Tax (such non excluded items being collectively called “Taxes”).  If any withholding or deduction from any payment to be made by the Borrower hereunder is required in respect of any Taxes pursuant to any Applicable Law, then the Borrower will:

 

(i) pay directly to the relevant Governmental Authority the full amount required to be so withheld or deducted;

 

(ii) promptly forward to the Agent an official receipt or other documentation satisfactory to the Agent evidencing such payment to such Governmental Authority; and

 

(iii) pay to the Agent for its account or the account of the applicable Lender, as the case may be, such additional amount or amounts as is necessary to ensure that the net amount actually received by the Agent or such Lender will equal the full amount that the Agent or such Lender would have received had no such withholding or deduction been required.

 

(b) Tax Indemnification.  If the Borrower fails to pay any Taxes when due to the appropriate Governmental Authority or fails to remit to the Agent, for its account or the account of the respective Lender, as the case may be, the required receipts or other required documentary evidence, the Borrower shall indemnify the Agent and the Lenders for any incremental Taxes, interest or penalties that may become payable by the Agent or any Lender as a result of any such failure.  For purposes of this Section, a distribution hereunder by the Agent or any Lender to or for the account of any Lender shall be deemed a payment by the Borrower.

 

 

 

  

  

  

 

(c) Tax Forms.  Prior to the date that any Lender or Participant organized under the laws of a jurisdiction outside the United States of America becomes a party hereto, such Person shall deliver to the Borrower and the Agent such certificates, documents or other evidence, as required by the Internal Revenue Code or Treasury Regulations issued pursuant thereto (including Internal Revenue Service Forms W-8ECI and W-8BEN, as applicable, or appropriate successor forms), properly completed, currently effective and duly executed by such Lender or Participant establishing that payments to it hereunder and under the Notes are (i) not subject to United States Federal backup withholding tax and (ii) not subject to United States Federal withholding tax imposed under the Internal Revenue Code.  Each such Lender or Participant shall, to the extent it may lawfully do so, (x) deliver further copies of such forms or other appropriate certifications on or before the date that any such forms expire or become obsolete and after the occurrence of any event requiring a change in the most recent form delivered to the Borrower or the Agent and (y) obtain such extensions of the time for filing, and renew such forms and certifications thereof, as may be reasonably requested by the Borrower or the Agent.  The Borrower shall not be required to pay any amount pursuant to the last sentence of subsection (a) above to any Lender or Participant that is organized under the laws of a jurisdiction outside of the United States of America or the Agent, if it is organized under the laws of a jurisdiction outside of the United States of America, if such Lender, Participant or the Agent, as applicable, fails to comply with the requirements of this subsection.  If any such Lender or Participant, to the extent it may lawfully do so, fails to deliver the above forms or other documentation, then the Agent may withhold from any payments to be made to such Lender under any of the Loan Documents such amounts as are required by the Internal Revenue Code. If any Governmental Authority asserts that the Agent did not properly withhold or backup withhold, as the case may be, any tax or other amount from payments made to or for the account of any Lender, such Lender shall indemnify the Agent therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Agent under this Section, and costs and expenses (including all reasonable fees and disbursements of any law firm or other external counsel and the allocated cost of internal legal services and all disbursements of internal counsel) of the Agent.  The obligation of the Lenders under this Section shall survive the termination of the Commitments, repayment of all Obligations and the resignation or replacement of the Agent.

 

(d) FATCA.  Without limitation of Section 3.12.(c), if a payment made to a Lender under any Loan Document would be subject to United States federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting and document provision requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by law and at such time or times reasonably requested by either, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower and/or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA, to determine that such Lender has or has not complied with such Lender obligations under FATCA and, as necessary, to determine the amount to deduct and withhold from such payment.

 

 

 

  

  

  

 

(e) Right to Replace of Lender.  If (x) a Lender requests compensation pursuant to this Section 3.12. or Section 5.1. and the Requisite Lenders are not also doing the same, (y) a Lender’s obligations with respect to LIBOR Loans are suspended pursuant to Section 5.1(b) or Section 5.3 and the obligations of the Requisite Lenders are not also suspended or (z) in connection with any proposed amendment, modification, termination, waiver or consent which requires the approval of each Lender under Section 13.6(b), and with respect to which approvals from the Requisite Lenders have been obtained, a Lender that has not given, or been deemed to have given, its approval of such matter, then, so long as there does not then exist any Event of Default, the Borrower may demand that such Lender (the “Affected Lender”), and upon such demand the Affected Lender shall promptly, assign its Commitment to an Eligible Assignee subject to and in accordance with the provisions of Section 13.5.(d) for a purchase price to be agreed on by the Affected Lender and the Eligible Assignee, but not in excess of the par value thereof.  Each of the Agent and the Affected Lender shall reasonably cooperate in effectuating the replacement of such Affected Lender under this subsection, but at no time shall the Agent, such Affected Lender nor any other Lender be obligated in any way whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee.  The exercise by the Borrower of its rights under this subsection shall be at the Borrower’s sole cost and expense and at no cost or expense to the Agent, the Affected Lender or any of the other Lenders.  The terms of this subsection shall not in any way limit the Borrower’s obligation to pay to any Affected Lender compensation owing to such Affected Lender pursuant to this Section 3.12., Section 5.1 or Section 5.4, as applicable, with respect to periods up to the date of replacement.

 

ARTICLE IV.     UNENCUMBERED POOL PROPERTIES

 

	
Section 4.1.  

	
Eligibility of Properties.

 

(a) As of the Agreement Date, the Lenders have approved for inclusion in calculations of the Borrowing Base the Properties identified on Schedule 4.1, and such Properties shall become the Initial Unencumbered Pool Properties.

 

(b) If, after the Agreement Date, the Borrower desires that the Lenders include any additional Property in calculations of the Borrowing Base, the Borrower shall so notify the Agent in writing.  No Property will be evaluated by the Lenders unless it is an Eligible Unencumbered Pool Property, and unless and until the Borrower delivers to the Agent the following, in form and substance satisfactory to the Agent:

 

(i) a description of such Property, such description to include the age, location, size and Occupancy Rate of such Property;

 

(ii) an operating statement and a rent roll for such Property for the two prior fiscal years, for the current fiscal year through the fiscal quarter most recently ending and for the current fiscal quarter, certified by a representative of the Borrower to the best of such representative’s knowledge as being true and correct in all material respects provided that (x) with respect to any period such Property was not owned by a Loan Party, such information shall only be required to be delivered to the extent reasonably available to the Borrower and (y) if such Property has not been in operation for two years, the Borrower shall provide such projections and other information concerning the anticipated operation of such Property as the Agent may reasonably request;

 

 

 

  

  

  

 

(iii) an operating budget for such Property with respect to the current and immediately following fiscal years;

 

(iv) a budget for capital expenditures for the immediately following 12-month period; and

 

(v) such other information the Agent may reasonably request in order to evaluate such Property.

 

(c) If, after receipt and review of the foregoing, unless Agent has reasonably determined that the additional Property does not satisfy the requirements to be an Eligible Unencumbered Pool Property, the Agent will notify the Borrower and each Lender within 10 Business Days after receipt of all of the above items that it is prepared to proceed with the acceptance of such Property as an Unencumbered Pool Property.  If the Agent has determined that the additional Property does not satisfy the requirements to be an Eligible Unencumbered Pool Property and therefore that addition of such Property to the Unencumbered Pool requires Requisite Lender approval, the Agent shall so notify the Borrower and the Lenders and shall forward to the Lenders all documents and information submitted by Borrower with respect to such additional Property. In such event each Lender shall notify the Agent whether it approves of the designation of such Property as an Eligible Unencumbered Pool Property, notwithstanding such non-compliance, within 10 Business Days of receipt of such notice and all such documents and information.  If a Lender shall fail to so notify the Agent, then such Lender shall be deemed to have approved of such Property as an Eligible Unencumbered Pool Property.  Upon approval of such Property as an Eligible Unencumbered Pool Property by the Agent, or, if required, by Requisite Lenders, and upon execution and delivery of all of the documents required to be provided under Section 4.2., such Property shall become an Eligible Unencumbered Pool Property.

 

	
Section 4.2.  

	
Conditions Precedent to a Property Becoming an Eligible Unencumbered Pool Property.

 

(a) No Property shall become an Eligible Unencumbered Pool Property until the Borrower shall have caused to be executed and delivered to the Agent all documents and instruments required to be so executed and delivered under Section 4.1, the Agent, or, if required, the Requisite Lenders shall have approved of such Property as provided in such Section, and the Borrower shall have caused to be executed and delivered to the Agent the following instruments, documents and agreements in respect of such Property, each to be in form and substance satisfactory to the Agent:

 

(b) if such Property is owned by a Subsidiary that is not already a Guarantor, an Accession Agreement executed by such Subsidiary and all of the items that would have been required to be delivered to the Agent under Section 6.1.(iv) through (vii) had such Subsidiary been a Loan Party on the Effective Date;

 

(c) a Borrowing Base Certificate calculated after giving effect to the inclusion of such Property as an Eligible Unencumbered Pool Property; and

 

(d) such other due diligence materials, instruments, documents, certificates, and opinions as the Agent may reasonably request.

 

 

  

  

  

 

 

	
Section 4.3.  

	
Release of Guarantors and Unencumbered Pool Properties.

 

(a) From time to time the Borrower may request, upon not less than five (5) Business Days prior written notice to the Agent, that the Subsidiary owning an Unencumbered Pool Property be released from the Guaranty, or that any Unencumbered Pool Property be released in whole or in part from the Unencumbered Pool, which release (the “Release”) shall be effected by the Agent if all of the following conditions are satisfied as of the date of such Release:

 

(b) no Default or Event of Default has occurred and is then continuing or would occur or exist immediately after giving effect to such Release;

 

(c) the Borrower shall have delivered a Compliance Certificate showing pro forma compliance with the covenants set forth in Section 10.1. giving effect to such Release;

 

(d) the Borrower shall have delivered to the Agent a Borrowing Base Certificate reflecting the Borrowing Base after giving effect to such Release; and

 

(e) the outstanding aggregate principal balance of all Unsecured Indebtedness of the Parent, the Borrower and their respective Subsidiaries (including, without limitation, the Loans together with the aggregate amount of all Letter of Credit Liabilities), will not exceed the Borrowing Base after giving effect to such Release and the elimination of the related Unencumbered Pool Property or portion thereof and any prepayment to be made and/or the acceptance of any new Unencumbered Pool Property pursuant to Section 4.1 which is to be given concurrently therewith as an additional or replacement Unencumbered Pool Property.

 

In connection with a Release, the Borrower shall deliver to the Agent a certificate from the Borrower’s chief executive officer or chief financial officer regarding the matters referred to in the immediately preceding clauses (a) and (b).  Notwithstanding the foregoing, the Agent shall not be obligated to release any such Subsidiary from the Guaranty if such Subsidiary owns any other Unencumbered Pool Properties that are not being so released from the Unencumbered Pool.

 

	
Section 4.4.  

	
Frequency of Calculations of Borrowing Base.

 

Initially, the Borrowing Base shall be the amount set forth as such in the Borrowing Base Certificate delivered under Section 6.1.  Thereafter, the Borrowing Base shall be the amount set forth as such in the Borrowing Base Certificate delivered from time to time under Section 4.3.(c), 4.5. or 9.4.(g).  Any increase in the Borrowing Base shall become effective as of the next determination of the Borrowing Base as provided in this Section, provided that as of such date of determination the applicable Borrowing Base Certificate substantiates such increase.

 

	
Section 4.5.  

	
Removal of Ineligible Property.

 

Upon any asset ceasing to qualify to be included as an Unencumbered Pool Property in the calculation of the Borrowing Base, such asset shall no longer be included in the calculation of the Borrowing Base.  Within five (5) Business Days after the Borrower becomes aware of any such disqualification, the Borrower shall deliver to the Agent a certificate reflecting such disqualification, together with the identity of the disqualified asset, a statement as to whether any Default or Event of Default will arise as a result of such disqualification after the Borrower has the opportunity to cure any such Default of Event of Default in accordance with the last paragraph of Section 11.1., and a calculation of the Borrowing Base attributable to such asset.  Simultaneously with the delivery of the items required above, the Borrower shall deliver to the Agent a pro forma Compliance Certificate and calculation of Borrowing Base demonstrating, after giving effect to such removal or disqualification and any reduction of the Loans in accordance with Section 11.1., compliance with the covenants contained in Section 10.1.

 

 

 

  

  

  

 

ARTICLE V.   YIELD PROTECTION, ETC.

 

	
Section 5.1.  

	
Additional Costs; Capital Adequacy.

 

(a) Additional Costs.  The Borrower shall promptly pay to the Agent for the account of a Lender from time to time such amounts as such Lender may determine to be necessary to compensate such Lender for any costs incurred by such Lender that it determines are attributable to its making or maintaining of any LIBOR Loans or its obligation to make any LIBOR Loans hereunder, any reduction in any amount receivable by such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans or such obligation or the maintenance by such Lender of capital in respect of its Loans or its Commitment (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), to the extent resulting from any Regulatory Change that:  (i) changes the basis of taxation of any amounts payable to such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans or its Commitment (other than taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges which are excluded from the definition of Taxes pursuant to the first sentence of Section 3.12.(a)); or (ii) imposes or modifies any reserve, special deposit or similar requirements (other than Regulation D of the Board of Governors of the Federal Reserve System or other reserve requirement to the extent utilized in the determination of Adjusted LIBOR for such Loan) relating to any extensions of credit or other assets of, or any deposits with or other liabilities of, such Lender, or any commitment of such Lender (including, without limitation, the Commitment of such Lender hereunder); or (iii) has or would have the effect of reducing the rate of return on capital of such Lender to a level below that which such Lender could have achieved but for such Regulatory Change (taking into consideration such Lender’s policies with respect to capital adequacy).

 

(b) Lender’s Suspension of LIBOR Loans.  Without limiting the effect of the provisions of the immediately preceding subsection (a), if, by reason of any Regulatory Change, any Lender either (i) incurs Additional Costs based on or measured by the excess above a specified level of the amount of a category of deposits or other liabilities of such Lender that includes deposits by reference to which the interest rate on LIBOR Loans is determined as provided in this Agreement or a category of extensions of credit or other assets of such Lender that includes LIBOR Loans or (ii) becomes subject to restrictions on the amount of such a category of liabilities or assets that it may hold, then, if such Lender so elects by notice to the Borrower (with a copy to the Agent), the obligation of such Lender to make or Continue, or to Convert any other Type of Loans into, LIBOR Loans hereunder shall be suspended until such Regulatory Change ceases to be in effect (in which case the provisions of Section 5.5. shall apply).

 

 

  

  

  

 

 

(c) Additional Costs in Respect of Letters of Credit.  Without limiting the obligations of the Borrower under the preceding subsections of this Section (but without duplication), if as a result of any Regulatory Change or any risk-based capital guideline or other requirement heretofore or hereafter issued by any Governmental Authority there shall be imposed, modified or deemed applicable any tax, reserve, special deposit, capital adequacy or similar requirement against or with respect to or measured by reference to Letters of Credit and the result shall be to increase the cost to the Issuing Lender of issuing (or any Lender of purchasing participations in) or maintaining its obligation hereunder to issue (or purchase participations in) any Letter of Credit or reduce any amount receivable by the Issuing Lender or any Lender hereunder in respect of any Letter of Credit, then, upon demand by the Agent or such Lender, the Borrower shall pay promptly, and in any event within 3 Business Days of demand, to the Agent for its account or the account of such Lender, as applicable, from time to time as specified by the Agent or a Lender, such additional amounts as shall be sufficient to compensate the Agent or such Lender for such increased costs or reductions in amount.

 

(d) Notification and Determination of Additional Costs.  Each of the Agent and each Lender agrees to notify the Borrower of any event occurring after the Agreement Date entitling the Agent or such Lender to compensation under any of the preceding subsections of this Section as promptly as practicable; provided, however, the failure of the Agent or any Lender to give such notice shall not release the Borrower from any of its obligations hereunder (and in the case of a Lender, to the Agent).  The Agent or such Lender agrees to furnish to the Borrower (and in the case of a Lender, to the Agent) a certificate setting forth in reasonable detail the basis and amount of each request by the Agent or such Lender for compensation under this Section.  Absent manifest error, determinations by the Agent or any Lender of the effect of any Regulatory Change shall be conclusive, provided that such determinations are made on a reasonable basis and in good faith.

 

	
Section 5.2.  

	
Suspension of LIBOR Loans.

 

Anything herein to the contrary notwithstanding, if, on or prior to the determination of Adjusted LIBOR for any Interest Period:

 

(a) the Agent reasonably determines (which determination shall be conclusive) that by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining Adjusted LIBOR for such Interest Period, or

 

(b) the Agent reasonably determines (which determination shall be conclusive) that Adjusted LIBOR will not adequately and fairly reflect the cost to the Lenders of making or maintaining LIBOR Loans for such Interest Period;

 

then the Agent shall give the Borrower and each Lender prompt notice thereof and, so long as such condition remains in effect, the Lenders shall be under no obligation to, and shall not, make additional LIBOR Loans, Continue LIBOR Loans or Convert Loans into LIBOR Loans and the Borrower shall, on the last day of each current Interest Period for each outstanding LIBOR Loan, either repay such Loan or Convert such Loan into a Base Rate Loan.

 

 

  

  

  

 

	
Section 5.3.  

	
Illegality.

 

Notwithstanding any other provision of this Agreement, if any Lender shall reasonably determine (which determination shall be conclusive and binding) that it has become unlawful for such Lender to honor its obligation to make or maintain LIBOR Loans hereunder, then such Lender shall promptly notify the Borrower thereof (with a copy to the Agent) and such Lender’s obligation to make or Continue, or to Convert Loans of any other Type into, LIBOR Loans shall be suspended until such time as such Lender may again make and maintain LIBOR Loans (in which case the provisions of Section 5.5. shall be applicable).

 

	
Section 5.4.  

	
Compensation.

 

The Borrower shall pay to the Agent for the account of each Lender, upon the request of such Lender through the Agent, such amount or amounts as shall be sufficient (in the reasonable opinion of such Lender) to compensate it for any loss, cost or expense that such Lender reasonably determines is attributable to:

 

(a) any payment or prepayment (whether mandatory or optional) of a LIBOR Loan, or Conversion of a LIBOR Loan, made by such Lender for any reason (including, without limitation, acceleration) on a date other than the last day of the Interest Period for such Loan; or

 

(b) any failure by the Borrower for any reason (including, without limitation, the failure of any of the applicable conditions precedent specified in Article VI. to be satisfied) to borrow a LIBOR Loan from such Lender on the requested date for such borrowing, or to Convert a Base Rate Loan into a LIBOR Loan or Continue a LIBOR Loan on the requested date of such Conversion or Continuation.

 

Upon the Borrower’s request,  any Lender  requesting compensation under this Section shall provide the Borrower with a statement setting forth in reasonable detail the basis for requesting such compensation and the method for determining the amount thereof.  Absent manifest error, determinations by any Lender in any such statement shall be conclusive, provided that such determinations are made on a reasonable basis and in good faith.

 

	
Section 5.5.  

	
Treatment of Affected Loans.

 

If the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 5.1.(b) or 5.3., then such Lender’s LIBOR Loans shall be automatically Converted into Base Rate Loans on the last day(s) of the then current Interest Period(s) for LIBOR Loans (or, in the case of a Conversion required by Section 5.1.(b) or 5.3., on such earlier date as such Lender may specify to the Borrower with a copy to the Agent) and, unless and until such Lender gives notice as provided below that the circumstances specified in Section 5.1. or 5.3. that gave rise to such Conversion no longer exist:

 

(a) to the extent that such Lender’s LIBOR Loans have been so Converted, all payments and prepayments of principal that would otherwise be applied to such Lender’s LIBOR Loans shall be applied instead to its Base Rate Loans; and

 

(b) all Loans that would otherwise be made or Continued by such Lender as LIBOR Loans shall be made or Continued instead as Base Rate Loans, and all Base Rate Loans of such Lender that would otherwise be Converted into LIBOR Loans shall remain as Base Rate Loans.

 

 

  

  

  

 

 

If such Lender gives notice to the Borrower (with a copy to the Agent) that the circumstances specified in Section 5.1. or 5.3. that gave rise to the Conversion of such Lender’s LIBOR Loans pursuant to this Section no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when LIBOR Loans made by other Lenders are outstanding, then such Lender’s Base Rate Loans shall be automatically Converted, on the first day(s) of the next succeeding Interest Period(s) for such outstanding LIBOR Loans, to the extent necessary so that, after giving effect thereto, all Loans held by the Lenders holding LIBOR Loans and by such Lender are held pro rata (as to principal amounts, Types and Interest Periods) in accordance with their respective Commitments.

 

	
Section 5.6.  

	
Change of Lending Office.

 

Each Lender agrees that it will use reasonable efforts to designate an alternate Lending Office with respect to any of its Loans affected by the matters or circumstances described in Sections 3.12., 5.1. or 5.3. to reduce the liability of the Borrower or avoid the results provided thereunder, so long as such designation is not disadvantageous to such Lender as determined by such Lender in its sole discretion, except that such Lender shall have no obligation to designate a Lending Office located in the United States of America.

 

	
Section 5.7.  

	
Assumptions Concerning Funding of LIBOR Loans.

 

Calculation of all amounts payable to a Lender under this Article V. shall be made as though such Lender had actually funded  LIBOR Loans through the purchase of deposits in the relevant market bearing interest at the rate applicable to such LIBOR Loans in an amount equal to the amount of the LIBOR Loans and having a maturity comparable to the relevant Interest Period; provided, however, that each Lender may fund each of its LIBOR Loans in any manner it sees fit and the foregoing assumption shall be used only for calculation of amounts payable under this Article V.

 

ARTICLE VI.    CONDITIONS PRECEDENT

 

	
Section 6.1.  

	
Initial Conditions Precedent.

 

The obligation of the Lenders to effect or permit the occurrence of the first Credit Event hereunder, whether as the making of a Loan or the issuance of a Letter of Credit, is subject to the following conditions precedent:

 

(a) The Agent shall have received each of the following, in form and substance satisfactory to the Agent:

 

(i) counterparts of this Agreement executed by each of the parties hereto;

 

(ii) Revolving Notes executed by the Borrower, payable to each Lender requesting a Revolving Note and complying with the applicable provisions of Section 2.10., and the Swingline Note executed by the Borrower;

 

 

  

  

  

 

 

(iii) the Guaranty executed by the Parent and each Subsidiary that owns or leases an Initial Unencumbered Pool Property, if any, as of the Effective Date;

 

(iv) the articles of incorporation, articles of organization, certificate of limited partnership or other comparable organizational instrument (if any) of the Borrower and each other Loan Party certified by the Secretary of State of the state of formation of such Loan Party;

 

(v) a certificate of good standing or certificate of similar meaning with respect to each Loan Party issued as of a recent date by the Secretary of State of the state of formation of each such Loan Party and certificates of qualification to transact business or other comparable certificates issued by each Secretary of State (and any state department of taxation, as applicable) of the state in which such Loan Party has its principal place of business;

 

(vi) a certificate of incumbency signed by the Secretary or Assistant Secretary (or other individual performing similar functions) of each Loan Party with respect to each of the officers of such Loan Party authorized to execute and deliver the Loan Documents to which such Loan Party is a party, and in the case of the Borrower, and the officers of the Borrower then authorized to deliver Notices of Borrowing, Notices of Swingline Borrowings, Notices of Continuation and Notices of Conversion and to request the issuance of Letters of Credit;

 

(vii) copies certified by the Secretary or Assistant Secretary (or other individual performing similar functions) of each Loan Party of (i) the by-laws of such Loan Party, if a corporation, the operating agreement, if a limited liability company, the partnership agreement, if a limited or general partnership, or other comparable document in the case of any other form of legal entity and (ii) all corporate, partnership, member or other necessary action taken by such Loan Party to authorize the execution, delivery and performance of the Loan Documents to which it is a party;

 

(viii) an opinion of counsel to the Loan Parties, addressed to the Agent, the Lenders and the Swingline Lender, in form reasonably satisfactory to the Agent;

 

(ix) the Fees then due and payable under Section 3.6., and any other Fees payable to the Agent and the Lenders on or prior to the Effective Date to the extent such Fees have been invoiced prior to the Effective Date;

 

(x) a Compliance Certificate calculated as of the Effective Date (using unaudited figures from December 31, 2012 and giving pro forma effect to the financing evidenced by this Agreement and the use of the proceeds of the Loans to be funded on the Agreement Date);

 

(xi) a Borrowing Base Certificate calculated as of the Effective Date;

 

(xii) intentionally deleted;

 

(xiii) if applicable, a disbursement statement setting forth in reasonable detail the application of the initial Loans being funded on the Effective Date;

 

 

 

  

  

  

 

(xiv) evidence that any lenders under the Existing Credit Agreement that are not continuing as Lenders hereunder have agreed to accept repayment of all amounts due them under the Existing Credit Agreement and terminate their commitments thereunder; and

 

(xv) such other documents, agreements and instruments as the Agent on behalf of the Lenders may reasonably request.

 

(b) In the good faith judgment of the Agent and the Lenders:

 

(i) there shall not have occurred or become known to the Agent or any of the Lenders any event, condition, situation or status since the date of the information contained in the financial and business projections, budgets, pro forma data and forecasts concerning the Parent, the Borrower and its other Subsidiaries delivered to the Agent and the Lenders prior to the Agreement Date that has had or could reasonably be expected to result in a Material Adverse Effect;

 

(ii) no litigation, action, suit, investigation or other arbitral, administrative or judicial proceeding shall be pending or threatened which could reasonably be expected to (1) result in a Material Adverse Effect or (2) restrain or enjoin, impose materially burdensome conditions on, or otherwise materially and adversely affect the ability of any Loan Party to fulfill its obligations under the Loan Documents to which it is a party; and

 

(iii) the Parent, the Borrower and its other Subsidiaries shall have received all approvals, consents and waivers, and shall have made or given all necessary filings and notices as shall be required to consummate the transactions contemplated hereby without the occurrence of any default under, conflict with or violation of (1) any Applicable Law or (2) any agreement, document or instrument to which the Borrower or any other Loan Party is a party or by which any of them or their respective properties is bound, except for such approvals, consents, waivers, filings and notices the receipt, making or giving of which would not reasonably be likely to (A) have a Material Adverse Effect, or (B) restrain or enjoin, impose materially burdensome conditions on, or otherwise materially and adversely affect the ability of the Borrower or any other Loan Party to fulfill its obligations under the Loan Documents to which it is a party or the ability of the Agent to exercise its remedies hereunder.

 

	
Section 6.2.  

	
Conditions Precedent to All Loans and Letters of Credit.

 

The obligations of the Lenders to make any Loans, of the Issuing Lender to issue any Letters of Credit, and of the Swingline Lender to make any Swingline Loan are all subject to the further condition precedent that:  (a) no Default or Event of Default shall exist as of the date of the making of such Loan or date of issuance of such Letter of Credit or would exist immediately after giving effect thereto; and (b) the representations and warranties made or deemed made by each Loan Party in the Loan Documents to which any of them is a party, shall be true and correct in all material respects on and as of the date of the making of such Loan or date of issuance of such Letter of Credit with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  Each Credit Event shall constitute a certification by the Borrower to the effect set forth in the preceding sentence (both as of the date of the giving of notice relating to such Credit Event and, unless the Borrower otherwise notifies the Agent prior to the date of such Credit Event, as of the date of the occurrence of such Credit Event).  In addition, if such Credit Event is the making of a Loan or the issuance of a Letter of Credit, the Borrower shall be deemed to have represented to the Agent and the Lenders at the time such Loan is made or Letter of Credit issued that all conditions to the occurrence of such Credit Event contained in Article VI. have been satisfied.

 

 

 

  

  

  

 

ARTICLE VII.     REPRESENTATIONS AND WARRANTIES

 

	
Section 7.1.  

	
Representations and Warranties.

 

In order to induce the Agent and each Lender to enter into this Agreement and to make Loans and issue Letters of Credit, each of the Parent and the Borrower represents and warrants to the Agent and each Lender as follows:

 

(a) Organization; Power; Qualification.  Each of the Parent, the Borrower, the other Loan Parties and each other Subsidiary is a corporation, partnership or other legal entity, duly organized or formed, validly existing and in good standing under the jurisdiction of its incorporation or formation, has the power and authority to own or lease its respective properties and to carry on its respective business as now being and hereafter proposed to be conducted and is duly qualified and is in good standing as a foreign corporation, partnership or other legal entity, and authorized to do business, in each jurisdiction in which the character of its properties or the nature of its business requires such qualification or authorization and where the failure to be so qualified or authorized could reasonably be expected to have, in each instance, a Material Adverse Effect.

 

(b) Ownership Structure.  As of the Agreement Date, Part I of Schedule 7.1.(b) is a complete and correct list of all Subsidiaries of the Parent setting forth for each such Subsidiary, (i) the jurisdiction of organization of such Subsidiary, (ii) each Person holding any Equity Interests in such Subsidiary, (iii) the nature of the Equity Interests held by each such Person, and (iv) the percentage of ownership of such Subsidiary represented by such Equity Interests.  Except as disclosed in such Schedule, as of the Agreement Date (i) each of the Parent and its Subsidiaries owns, free and clear of all Liens (other than Permitted Liens), and has the unencumbered right to vote, all outstanding Equity Interests in each Person shown to be held by it on such Schedule, (ii) all of the issued and outstanding capital stock of each such Person organized as a corporation is validly issued, fully paid and nonassessable and (iii) there are no outstanding subscriptions, options, warrants, commitments, preemptive rights or agreements of any kind (including, without limitation, any stockholders’ or voting trust agreements) for the issuance, sale, registration or voting of, or outstanding securities convertible into, any additional shares of capital stock of any class, or partnership or other ownership interests of any type in, any such Person.  As of the Agreement Date Part II of Schedule 7.1.(b) correctly sets forth all Unconsolidated Affiliates of the Parent, including the correct legal name of such Person, the type of legal entity which each such Person is, and all Equity Interests in such Person held directly or indirectly by the Parent.

 

(c) Authorization of Agreement, Etc.  The Borrower has the right and power, and has taken all necessary action to authorize it, to borrow and obtain other extensions of credit hereunder.  Each Loan Party has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform each of the Loan Documents to which it is a party in accordance with their respective terms and to consummate the transactions contemplated hereby and thereby.  The Loan Documents to which any Loan Party is a party have been duly executed and delivered by the duly authorized officers of such Person and each is a legal, valid and binding obligation of such Person enforceable against such Person in accordance with its respective terms except as the same may be limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations (other than the payment of principal) contained herein or therein and as may be limited by equitable principles generally.

 

 

  

  

  

 

 

(d) Compliance of Loan Documents with Laws, Etc.  The execution, delivery and performance of this Agreement, the Notes and the other Loan Documents to which any Loan Party is a party in accordance with their respective terms and the borrowings and other extensions of credit hereunder do not and will not, by the passage of time, the giving of notice, or both:  (i) require any Governmental Approval or violate any Applicable Law (including all Environmental Laws) relating to any Loan Party; (ii) conflict with, result in a breach of or constitute a default under the organizational documents of any Loan Party, or any indenture, agreement or other instrument to which any Loan Party is a party or by which it or any of its respective properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by any Loan Party.

 

(e) Compliance with Law; Governmental Approvals.  Each Loan Party is in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable Laws (including without limitation, Environmental Laws) relating to such Loan Party except for noncompliances which, and Governmental Approvals the failure to possess which, could not, individually or in the aggregate, reasonably be expected to cause a Default or Event of Default or have a Material Adverse Effect.

 

(f) Title to Properties; Liens.  As of the Agreement Date, Part I of Schedule 7.1.(f) is a complete and correct listing of all of the real property owned or leased by the Parent, the Borrower and each other Subsidiary.  Each such Person has good, marketable and legal title to, or a valid leasehold interest in, its respective material assets except for minor defects in title that, in the aggregate, are not substantial in amount and do not materially detract from the value of the Property subject thereto or interfere with its ability to conduct business as currently conducted or to utilize such Properties and assets for their intended purposes.  As of the Effective Date, there will be no Liens against any assets of the Parent, the Borrower or any other Loan Party except for Permitted Liens.

 

(g) Existing Indebtedness.  Schedule 7.1.(g) is, as of the Agreement Date, a complete and correct listing of all Indebtedness of the Parent and its Subsidiaries (other than Indebtedness owing to a Loan Party from the Parent, the Borrower or any of their respective Subsidiaries or owing by a Loan Party to another Loan Party), including without limitation, Guarantees of the Parent and its Subsidiaries, and indicating whether such Indebtedness is Secured Indebtedness or Unsecured Indebtedness.

 

(h) Material Contracts.  Each of the Parent and its Subsidiaries that is a party to any Material Contract has performed and is in compliance with all of the terms of such Material Contract, and no default or event of default attributable to Parent or its Subsidiaries, or event or condition which with the giving of notice, the lapse of time, or both, would constitute such a default or event of default attributable to Parent or its Subsidiaries, exists with respect to any such Material Contract, except for any such noncompliance, default or event of default which could not reasonably be expected to have a Material Adverse Effect.

 

 

  

  

  

 

 

(i) Litigation.  Except as set forth on Schedule 7.1.(i), there are no actions, suits, investigations or proceedings pending (nor, to the knowledge of the Parent, are there any actions, suits or proceedings threatened) against or in any other way relating adversely to or affecting the Parent or any of its Subsidiaries or any of their respective property in any court or before any arbitrator of any kind or before or by any other Governmental Authority which could reasonably be expected to have a Material Adverse Effect.

 

(j) Taxes.  All federal and, to the Borrower’s knowledge, all state and other tax returns of the Parent and its Subsidiaries required by Applicable Law to be filed have been duly filed, and all federal, and, to the Borrower’s knowledge, all state and other taxes, assessments and other governmental charges or levies upon the Parent and its Subsidiaries and their respective properties, income, profits and assets which are due and payable have been paid, except any such nonpayment which is at the time permitted under Section 8.6.  As of the Agreement Date, none of the United States income tax returns of the Parent or any of its Subsidiaries is under audit.  All charges, accruals and reserves on the books of the Parent and each of its Subsidiaries and each other Loan Party in respect of any taxes or other governmental charges are in accordance with GAAP.

 

(k) Financial Statements.  The Parent has furnished to each Lender copies of the consolidated balance sheet of the Parent and its consolidated Subsidiaries as of September 30, 2012, and the consolidated statement of operations of the Parent and its consolidated Subsidiaries for the year ended December 31, 2011 and for the nine-month period ended September 30, 2012.  Such financial statements (including in each case related schedules and notes) present fairly, in all material respects and in accordance with GAAP consistently applied throughout the periods involved, the consolidated financial position of the Parent and its consolidated Subsidiaries as at their respective dates and the results of operations for such periods (subject, as to interim statements, to changes resulting from normal year-end audit adjustments).

 

(l) No Material Adverse Change.  Since September 30, 2012 there has been no material adverse change in the business, assets, liabilities, financial condition, results of operations, or business of the Parent and its Subsidiaries or the Borrower and its Subsidiaries, in each case, taken as a whole.  Each of the Loan Parties is Solvent, provided that in the case of any Loan Party that is a Guarantor, such solvency takes into account (i) the limitations on the obligations of the Guarantor set forth in the Guaranty and (ii) access such Guarantor has to funds from the Borrower.

 

(m) ERISA.  Each member of the ERISA Group is in compliance with its obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in compliance with the presently applicable provisions of ERISA and the Internal Revenue Code with respect to each Plan, except in each case for noncompliances which could not reasonably be expected to have a Material Adverse Effect.  As of the Agreement Date, no member of the ERISA Group has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code or Section 302 of ERISA in respect of any Plan, (ii) failed to make any contribution or payment to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement, which has resulted or could result in the imposition of a Lien or the posting of a bond or other security under ERISA or the Internal Revenue Code by a member of the ERISA Group or (iii) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA.

 

 

  

  

  

 

(n) Not Plan Assets; No Prohibited Transaction.  None of the assets of the Parent, the Borrower or any Subsidiary constitutes “plan assets” within the meaning of ERISA or the Internal Revenue Code.  The execution, delivery and performance of this Agreement and the other Loan Documents, and the borrowing and repayment of amounts hereunder, do not and will not constitute “prohibited transactions” under ERISA or the Internal Revenue Code.

 

(o) Absence of Defaults.  None of the Parent, the Borrower or any other Subsidiary is in default under its articles of incorporation, bylaws, partnership agreement or other similar organizational documents, and no event has occurred, which has not been remedied, cured or waived, which, in any such case:  (i) constitutes a Default or an Event of Default; or (ii) constitutes, or which with the passage of time, the giving of notice, or both, would constitute, a default or event of default by the Parent, the Borrower or any other Subsidiary under any agreement (other than this Agreement) or judgment, decree or order to which the Parent, the Borrower or any other Subsidiary is a party or by which the Parent, the Borrower or any other Subsidiary or any of their respective properties may be bound where such default or event of default could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p) Environmental Laws.  Each of the Parent, the Borrower and its other Subsidiaries has obtained all Governmental Approvals which are required under Environmental Laws and is in compliance with all terms and conditions of such Governmental Approvals which the failure to obtain or to comply with could reasonably be expected to have a Material Adverse Effect.  Except for any of the following matters that could not be reasonably expected to have a Material Adverse Effect, (i) neither the Parent or the Borrower is aware of, and has received notice of, any past, present, or future events, conditions, circumstances, activities, practices, incidents, actions, or plans which, with respect to the Parent, the Borrower or any of its other Subsidiaries, may interfere with or prevent compliance or continued compliance with Environmental Laws, or may give rise to any common law or legal liability, or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing, study, or investigation, based on or related to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling or the emission, discharge, release or threatened release into the environment, of any Hazardous Material; and (ii) there is no civil, criminal, or administrative action, suit, demand, claim, hearing, notice, or demand letter, notice of violation, investigation, or proceeding pending or, to the Borrower’s knowledge after due inquiry, threatened, against the Parent, the Borrower or any of its other Subsidiaries relating in any way to Environmental Laws.

 

(q) Investment Company.  None of the Parent, the Borrower or any other Subsidiary is an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or subject to any other Applicable Law which purports to regulate or restrict its ability to borrow money or to consummate the transactions contemplated by this Agreement or to perform its obligations under any Loan Document to which it is a party.

 

 

 

  

  

  

 

(r) Margin Stock.  None of the Parent, the Borrower or any other Subsidiary is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System.

 

(s) Affiliate Transactions.  Except pursuant to terms that would satisfy the requirements set forth in Section 10.10., or otherwise be permitted by Section 10.10., none of the Parent, the Borrower or any other Subsidiary is a party to any transaction with an Affiliate.

 

(t) Intellectual Property.  Each of the Parent, the Borrower and each other Subsidiary owns or has the right to use, under valid license agreements or otherwise, all material patents, licenses, franchises, trademarks, trademark rights, trade names, trade name rights, trade secrets and copyrights (collectively, “Intellectual Property”) necessary to the conduct of its businesses as now conducted and as contemplated by the Loan Documents, without known conflict as of the Agreement Date with any patent, license, franchise, trademark, trade secret, trade name, copyright, or other proprietary right of any other Person.  The Parent, the Borrower and each other Subsidiary have taken all such steps as they deem reasonably necessary to protect their respective rights under and with respect to such Intellectual Property.

 

(u) Business.  As of the Agreement Date, the Parent, the Borrower and the other Subsidiaries are engaged predominantly in the business of developing, construction, acquiring, owning and operating neighborhood and community shopping centers, together with other business activities incidental thereto.

 

(v) Broker’s Fees.  Except as contemplated by any fee arrangements with the Arrangers or their affiliates, no broker’s or finder’s fee, commission or similar compensation will be payable with respect to the transactions contemplated hereby.  No other similar fees or commissions will be payable by any Loan Party for any other services rendered to the Parent, the Borrower or any of its other Subsidiaries ancillary to the transactions contemplated hereby.

 

(w) Accuracy and Completeness of Information.  No written information, report or other papers or data (excluding financial projections and other forward looking statements) furnished to the Agent or any Lender by, on behalf of, or at the direction of, the Parent, the Borrower or any other Subsidiary in connection with or relating in any way to this Agreement, when taken together with all other written information furnished, contained any untrue statement of a fact material to the creditworthiness of the Parent, the Borrower or any other Subsidiary or omitted to state a material fact necessary in order to make such statements contained therein, in light of the circumstances under which they were made, not misleading.  All financial statements (including in each case all related schedules and notes) furnished to the Agent or any Lender by, on behalf of, or at the direction of, the Parent, the Borrower or any other Subsidiary in connection with or relating in any way to this Agreement, present fairly, in all material respects and in accordance with GAAP consistently applied throughout the periods involved, the financial position of the Persons involved as at the date thereof and the results of operations for such periods (subject, as to interim statements, to changes resulting from normal year end audit adjustments).  All financial projections and other forward looking statements prepared by or on behalf of the Parent, the Borrower or any other Subsidiary that have been or may hereafter be made available to the Agent or any Lender were or will be, at the time made, prepared in good faith based on reasonable assumptions.

 

 

 

  

  

  

 

(x) REIT Status.  The Parent has operated, and intends to continue to operate, in a manner so as to permit it to qualify as a REIT and each of its Subsidiaries that is a corporation for U.S. federal income tax purposes is a Qualified REIT Subsidiary or a Taxable REIT Subsidiary.  The Parent has elected to be treated as a REIT.

 

(y) Unencumbered Pool Properties.  Each of the Unencumbered Pool Properties (other any Unencumbered Pool Property approved pursuant to clause (c) of the definition of “Unencumbered Pool”) satisfies all of the requirements contained in the definition of “Eligible Unencumbered Pool Property”.

 

	
Section 7.2.  

	
Survival of Representations and Warranties, Etc.

 

All statements contained in any Loan Document delivered by or on behalf of the Parent, the Borrower or any other Subsidiary to the Agent or any Lender shall constitute representations and warranties made by the Parent and or the Borrower in favor of the Agent or any of the Lenders under this Agreement.  All such representations and warranties shall survive the effectiveness of this Agreement, the execution and delivery of the Loan Documents and the making of the Loans and the issuance of the Letters of Credit.

 

ARTICLE VIII.    AFFIRMATIVE COVENANTS

 

For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of the Lenders) shall otherwise consent in the manner provided for in Section 13.6., the Parent and the Borrower shall comply with the following covenants:

 

	
Section 8.1.  

	
Preservation of Existence and Similar Matters.

 

Except as otherwise permitted under Section 10.6., the Parent and the Borrower shall, and shall cause each Subsidiary to, preserve and maintain its respective existence, rights, franchises, licenses and privileges in the jurisdiction of its incorporation or formation and qualify and remain qualified and authorized to do business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification and authorization and where the failure to be so authorized and qualified could reasonably be expected to have a Material Adverse Effect.

 

	
Section 8.2.  

	
Compliance with Applicable Law and Material Contracts.

 

The Parent and the Borrower shall, and shall cause each Subsidiary to, comply with (a) all Applicable Laws, including the obtaining of all Governmental Approvals, the failure with which to comply could reasonably be expected to have a Material Adverse Effect, and (b) all terms and conditions of all Material Contracts to which it is a party.

 

 

  

  

  

 

	
Section 8.3.  

	
Maintenance of Property.

 

The Parent and the Borrower shall, and shall cause each Subsidiary to, (a) protect and preserve all of its respective material properties, including, but not limited to, all material Intellectual Property, and maintain in good repair, working order and condition all tangible properties, ordinary wear and tear and casualty events excepted, and (b)  make or cause to be made all needed and appropriate repairs, renewals, replacements and additions to such properties, so that the business carried on in connection therewith may be properly and advantageously conducted at all times.

 

	
Section 8.4.  

	
Conduct of Business.

 

The Parent and the Borrower shall, and shall cause each Subsidiary to, carry on, their respective businesses as described in Section 7.1.(u).

 

	
Section 8.5.  

	
Insurance.

 

The Parent and the Borrower shall, and shall cause each Subsidiary to, maintain insurance with financially sound and reputable insurance companies against such risks and in such amounts as is customarily maintained by Persons engaged in similar businesses and owning similar properties in the same general area in which the Borrower or the relevant Subsidiary operates or as may be required by Applicable Law, and from time to time deliver to the Agent upon its request a detailed list, together with copies of all policies of the insurance then in effect, stating the names of the insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the properties and risks covered thereby.  Not in limitation of the foregoing, the Parent and the Borrower shall, and shall cause each other Loan Party to, maintain such insurance with respect to each Unencumbered Pool Property.

 

	
Section 8.6.  

	
Payment of Taxes and Claims.

 

The Parent and the Borrower shall, and shall cause each Subsidiary to, pay and discharge prior to delinquency (a) all material taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or upon any properties belonging to it, and (b) all lawful claims of materialmen, mechanics, carriers, warehousemen and landlords for labor, materials, supplies and rentals which, if unpaid, could reasonably be expected to become a Lien on any properties of such Person that is not a Permitted Lien; provided, however, that this Section shall not require the payment or discharge of any such tax, assessment, charge, levy or claim which is being contested in good faith by appropriate proceedings which operate to suspend the collection thereof and for which adequate reserves have been established on the books of the Parent, the Borrower or such Subsidiary, as applicable, in accordance with GAAP.

 

	
Section 8.7.  

	
Visits and Inspections.

 

The Parent and the Borrower shall, and shall cause each Subsidiary to, permit representatives or agents of any Lender or the Agent, from time to time after reasonable prior notice if no Event of Default shall be in existence, as often as may be reasonably requested, but only during normal business hours and at the expense of such Lender or the Agent (unless a Default or Event of Default shall exist, in which case the exercise by the Agent or such Lender of its rights under this Section shall be at the expense of the Borrower), as the case may be, to:  (a) visit and inspect all properties of the Parent, the Borrower or such Subsidiary to the extent any such right to visit or inspect is within the control of such Person; (b) inspect and make extracts from their respective books and records, including but not limited to management letters prepared by independent accountants; and (c) discuss with its officers and employees, and its independent accountants, its business, properties, condition (financial or otherwise), results of operations and performance.  If requested by the Agent, the Parent and the Borrower shall execute an authorization letter addressed to their accountants authorizing the Agent or any Lender to discuss the financial affairs of the Parent, the Borrower and any other Subsidiary with their accountants.

 

 

 

  

  

  

 

	
Section 8.8.  

	
Use of Proceeds; Letters of Credit.

 

The Borrower shall use the proceeds of the Loans and the Letters of Credit for general corporate purposes only or to refinance the Indebtedness under the Existing Credit Agreement.  No part of the proceeds of any Loan or Letter of Credit will be used for the purpose of buying or carrying “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or to extend credit to others for the purpose of purchasing or carrying any such margin stock.

 

	
Section 8.9.  

	
Environmental Matters.

 

The Parent and the Borrower shall, and shall cause all of the Subsidiaries to, comply with all Environmental Laws the failure with which to comply could reasonably be expected to have a Material Adverse Effect.  If the Parent, the Borrower, or any other Subsidiary shall (a) receive notice that any violation of any Environmental Law may have been committed or is about to be committed by such Person, (b) receive notice that any administrative or judicial complaint or order has been filed or is about to be filed against the Parent, the Borrower or any other Subsidiary alleging violations of any Environmental Law or requiring any such Person to take any action in connection with the release of Hazardous Materials or (c) receive any notice from a Governmental Authority or private party alleging that any such Person may be liable or responsible for costs associated with a response to or cleanup of a release of Hazardous Materials or any damages caused thereby, and the matters referred to in such notices, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, the Borrower shall provide the Agent with a copy of such notice promptly, and in any event within 10 Business Days, after the receipt thereof.  The Parent and the Borrower shall, and shall cause the Subsidiaries to, take promptly all actions necessary to prevent the imposition of any Liens on any of their respective properties arising out of or related to any Environmental Laws other than a Permitted Environmental Lien on a property which is not an Unencumbered Pool Property.

 

	
Section 8.10.  

	
Books and Records.

 

The Parent and the Borrower shall, and shall cause each Subsidiary to, maintain books and records pertaining to its respective business operations in which full, true and correct entries are made in accordance with GAAP.

 

	
Section 8.11.  

	
Further Assurances.

 

The Parent and the Borrower shall, at their cost and expense and upon request of the Agent, execute and deliver or cause to be executed and delivered, to the Agent such further instruments, documents and certificates, and do and cause to be done such further acts that may be reasonably necessary or advisable in the reasonable opinion of the Agent to carry out more effectively the provisions and purposes of this Agreement and the other Loan Documents.

 

 

 

  

  

  

 

	
Section 8.12.  

	
REIT Status.

 

The Parent will maintain its status as a REIT and will not revoke its election to be treated as a REIT.

 

	
Section 8.13.  

	
Exchange Listing.

 

The Parent shall maintain at least one class of common Equity Interest of the Parent having trading privileges on the New York Stock Exchange or the American Stock Exchange or which is the subject of price quotations in the over the counter market as reported by the National Association of Securities Dealers Automated Quotation System.

 

	
Section 8.14.  

	
Preservation of Right to Pledge Properties in the Unencumbered Pool.

 

The Parent, the Borrower, and each other Loan Party shall each take such actions as are necessary to preserve its right and ability to pledge its interest in the Unencumbered Pool Properties to the Agent without any such pledge after the date hereof causing or permitting the acceleration (after the giving of notice or the passage of time, or otherwise) of any other Indebtedness of the Loan Parties or any of their respective Subsidiaries.  Borrower shall, upon demand, provide to the Agent such evidence as the Agent may reasonably require to evidence compliance with this Section 8.14, which evidence shall include, without limitation, copies of any agreements or instruments which would in any way restrict or limit a Loan Party’s ability to pledge assets as security for Indebtedness, or which provide for the occurrence of a default (after the giving of notice or the passage of time, or otherwise) if assets are pledged in the future as security for Indebtedness of such Loan Party or any of its Subsidiaries.

 

ARTICLE IX.   INFORMATION

 

For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of the Lenders) shall otherwise consent in the manner set forth in Section 13.6., the Borrower shall furnish to the Agent at its Lending Office (and the Agent shall promptly thereafter post for review by the Lenders):

 

	
Section 9.1.  

	
Quarterly Financial Statements.

 

As soon as available and in any event within 5 days after the same is required to be filed with the Securities and Exchange Commission (but in no event later than 50 days after the end of each of the first, second and third fiscal quarters of the Borrower), the unaudited consolidated balance sheet of the Parent and its Subsidiaries as at the end of such period and the related unaudited consolidated statements of income, shareholders’ equity, cash flows and Funds from Operations of the Parent and its Subsidiaries for such period, setting forth in each case in comparative form the figures as of the end of and for the corresponding periods of the previous fiscal year, all of which shall be certified by the chief executive officer or chief financial officer of the Parent, in his or her opinion, to present fairly, in accordance with GAAP and in all material respects, the consolidated financial position of the Parent and its Subsidiaries as at the date thereof and the results of operations for such period (subject to normal year end audit adjustments).

 

 

 

  

  

  

 

	
Section 9.2.  

	
Year End Statements.

 

As soon as available and in any event within 5 days after the same is required to be filed with the Securities and Exchange Commission (but in no event later than 95 days after the end of each fiscal year of the Parent), the audited consolidated balance sheet of the Parent and its Subsidiaries as at the end of such fiscal year and the related audited consolidated statements of income, shareholders’ equity, cash flows and Funds from Operations of the Parent and its Subsidiaries for such fiscal year, setting forth in comparative form the figures as at the end of and for the previous fiscal year, all of which shall be (a) certified by the chief executive officer or chief financial officer of the Parent, in his or her opinion, to present fairly, in accordance with GAAP and in all material respects, the consolidated financial position of the Parent, the Borrower and its other Subsidiaries as at the date thereof and the results of operations for such period and (b) accompanied by the report thereon (other than the statement of Funds from Operations) of Ernst & Young LLP or any other independent certified public accountants of recognized national standing reasonably acceptable to the Agent, whose report shall be unqualified.

 

	
Section 9.3.  

	
Compliance Certificate.

 

At the time financial statements are furnished pursuant to Sections 9.1. and 9.2., and within 5 Business Days of the Agent’s request with respect to any other fiscal period, a certificate substantially in the form of Exhibit I (a “Compliance Certificate”) executed by the chief financial officer of the Parent:  (a) setting forth in reasonable detail as at the end of such quarterly accounting period, fiscal year, or other fiscal period, as the case may be, the calculations required to establish whether or not the Borrower was in compliance with the covenants contained in Sections 10.1. and 10.2. and (b) stating that, to the best of his or her knowledge, information and belief after due inquiry, no Default or Event of Default exists, or, if such is not the case, specifying such Default or Event of Default and its nature, when it occurred, whether it is continuing and the steps being taken by the Borrower with respect to such event, condition or failure.  Unencumbered Pool Properties that were disposed of during such period or which are then  excluded from calculations of the Borrowing Base shall be excluded from determinations of the Borrowing Base, Unencumbered Property Pool Value and Borrowing Base Debt Service Coverage Ratio.

 

	
Section 9.4.  

	
Other Information.

 

(a) Management Reports.  Promptly upon receipt thereof, copies of all management reports, if any, submitted to the Parent or its Board of Trustees by its independent public accountants;

 

(b) Securities Filings.  Within 5 Business Days of the filing thereof, if requested by Agent or any other Lender, copies of all registration statements (excluding the exhibits thereto (unless requested by the Agent) and any registration statements on Form S 8 or its equivalent), reports on Forms 10 K, 10 Q and 8 K (or their equivalents) and all other periodic reports which the Parent, the Borrower, or any other Subsidiary shall file with the Securities and Exchange Commission (or any Governmental Authority substituted therefor) or any national securities exchange;

 

 

  

  

  

 

(c) Shareholder Information.  Promptly upon the mailing thereof to the shareholders of the Parent generally, copies of all financial statements, reports and proxy statements so mailed and, if requested by Agent or any other Lender, promptly upon the issuance thereof copies of all press releases issued by the Parent, the Borrower or any other Subsidiary;

 

(d) Quarterly Operating Summaries.  At the time financial statements are furnished pursuant to Sections 9.1. and 9.2., an operating summary with respect to each Unencumbered Pool Property for the fiscal quarter most recently ended, including without limitation, a quarterly and year-to-date statement of total revenues, expenses, net operating income and an occupancy status report together with a current rent roll for each such Property;

 

(e) Quarterly Property Schedules.  At the time financial statements are furnished pursuant to Sections 9.1. and 9.2., a schedule of all Properties owned or leased by the Parent, the Borrower and each other Subsidiary of the Parent as of the fiscal quarter most recently ended, and the applicable Net Operating Income and Occupancy Rate of each such Property, such schedule certified by the chief financial officer or chief accounting officer of the Parent as true, correct and complete as of the date such information is delivered;

 

(f) Development Property Updates.  At the time financial statements are furnished pursuant to Sections 9.1. and 9.2., a schedule of all Properties of the Parent, the Borrower and each other Subsidiary which are under development as of the fiscal quarter most recently ended, setting forth for each such Property its percentage of completion, the percentage preleased, the estimated completion date, the total amount of development funded and the status of such development against the development budget;

 

(g) Borrowing Base Certificate.  As soon as available and in any event within 50 days after the end of each fiscal quarter of the Parent, a Borrowing Base Certificate setting forth the information to be contained therein as of the last day of such fiscal quarter;

 

(h) Litigation.  To the extent the Parent, the Borrower or any other Subsidiary is aware of the same, prompt notice of the commencement of any proceeding or investigation by or before any Governmental Authority and any action or proceeding in any court or other tribunal or before any arbitrator against or in any other way relating adversely to, or adversely affecting, the Parent, the Borrower or any other Subsidiary or any of their respective properties, assets or businesses which could reasonably be expected to have a Material Adverse Effect, and prompt notice of the receipt of notice that any United States income tax returns of the Parent, the Borrower or any of its Subsidiaries are being audited;

 

(i) Change of Management or Financial Condition.  Prompt notice of any change in the chief executive officer, chief financial officer, chief operating officer or President of the Parent or the Borrower (to the extent not reported pursuant to Section 9.4.(b)) and any change in the business, assets, liabilities, financial condition, results of operations or business prospects of the Parent, the Borrower or any other Subsidiary which has had or could reasonably be expected to have a Material Adverse Effect;

 

 

  

  

  

 

(j) Default.  Notice of the occurrence of any of the following promptly upon a Responsible Officer of the Parent obtaining knowledge thereof:  (i) any Default or Event of Default or (ii) any event which constitutes or which with the passage of time, the giving of notice, or otherwise, would constitute a default or event of default by the Parent, the Borrower or any other Subsidiary under any Material Contract to which any such Person is a party or by which any such Person or any of its respective properties may be bound;

 

(k) Judgments.  Prompt notice of any order, judgment or decree in excess of $1,000,000 having been entered against the Parent, the Borrower or any other Subsidiary of any of their respective properties or assets;

 

(l) Notice of Violations of Law.  Prompt notice if the Parent, the Borrower or any other Subsidiary shall receive any notification from any Governmental Authority alleging a violation of any Applicable Law or any inquiry which, in either case, could reasonably be expected to have a Material Adverse Effect;

 

(m) Material Contracts.  Promptly upon entering into any Material Contract after the Agreement Date, a copy to the Agent of such Material Contract (to the extent not reported pursuant to Section 9.4.(b));

 

(n) ERISA.  If and when any member of the ERISA Group (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) or any other event which Borrower or the ERISA Group could be liable for under ERISA Section 4062(e) or 4063 (a “Reportable Event”) with respect to any Plan which might constitute grounds for a termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required to give notice of any such Reportable Event, a copy of the notice of such Reportable Event given or required to be given to the PBGC; (ii) receives notice of complete or partial withdrawal liability under Title IV of ERISA or notice that any Multiemployer Plan is in “reorganization”, or is “insolvent” (within the meaning of ERISA) or has been terminated, a copy of such notice; (iii) receives notice from the PBGC under Title IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of such notice; (iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code or Section 302 of ERISA, a copy of such application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a copy of such notice and other information filed with the PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of such notice; or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or makes any amendment to any Plan or Benefit Arrangement, and of which has resulted or could reasonably be expected to result in the imposition of a Lien or the posting of a bond or other security, a certificate of the chief executive officer or chief financial officer of the Parent setting forth details as to such occurrence and the action, if any, which the Parent or applicable member of the ERISA Group is required or proposes to take; and

 

(o) Other Information.  From time to time and promptly upon each request, such data, certificates, reports, statements, budgets, documents or further information regarding the business, assets, liabilities, financial condition, results of operations or business prospects of the Parent, the Borrower or any of its other Subsidiaries as the Agent or any Lender may reasonably request.

 

 

 

  

  

  

 

ARTICLE X.    NEGATIVE COVENANTS

 

For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of the Lenders) shall otherwise consent in the manner set forth in Section 13.6., the Parent and the Borrower shall comply with the following covenants, as applicable:

 

	
Section 10.1.  

	
Financial Covenants.

 

The Parent shall not permit:

 

(a) Maximum Leverage Ratio.  The Leverage Ratio to exceed the ratio of 0.60 to 1.0 at any time; provided, however, that for any one (1) period of up to two (2) consecutive fiscal quarters occurring during the term of this Agreement during which the Leverage Ratio set forth above is otherwise required to not exceed 0.60 to 1, the Leverage Ratio may be greater than 0.60 to 1, but may not be greater than 0.625 to 1.0 (the “Increased Leverage Period”).

 

(b) Minimum Fixed Charge Coverage Ratio.  The ratio of (i) Adjusted EBITDA for the two (2) fiscal quarters of the Parent most recently ended to (ii) Fixed Charges for such period, to be less than 1.5 to 1.00 at any time.

 

(c) Minimum Tangible Net Worth.  Tangible Net Worth at any time to be less than (i) $350,000,000 plus (ii) 75.0% of the Net Proceeds of all Equity Issuances effected by the Parent or any Subsidiary after the Agreement Date (other than Equity Issuances to the Parent or any Subsidiary).

 

(d) Borrowing Base.  The aggregate Unsecured Indebtedness of Parent, Borrower and their respective Subsidiaries (including, without limitation, the outstanding principal balance of the Loans and the aggregate Letter of Credit Liabilities) to exceed the Borrowing Base.

 

(e) Unencumbered Pool Occupancy Rate.  The weighted average Occupancy Rate of all Unencumbered Pool Properties, excluding Construction-In-Process Properties and Renovation Properties, taken as a whole, to be less than 80.0% as of the end of each fiscal quarter.

 

(f) Floating Rate Indebtedness.  The ratio of (i) Floating Rate Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis to (ii) Total Asset Value, to exceed 0.35 to 1.00 at any time.

 

(g) Recourse Indebtedness.  The ratio of (i) Recourse Indebtedness (excluding the obligations arising under this Agreement) to (ii) Total Asset Value to exceed .30 to 1.00 at any time.

 

(h) Permitted Investments.  The Parent’s, Borrower’s, and their Subsidiaries’ investments in (i) Mortgage Notes Receivable (with each asset valued at the lower of its acquisition cost and its fair market value), to exceed, in the aggregate, ten percent (10%) of Total Asset Value; (ii) Unconsolidated Affiliates (valued at the greater of their aggregate cash investment in that entity or the portion of Total Asset Value attributable to such entity or its assets as the case may be) to exceed, in the aggregate, twenty percent (20%) of Total Asset Value; (iii) Unimproved Land (with each asset valued at its GAAP book value) to exceed, in the aggregate, ten percent (10%) of Total Asset Value; (iv) the Development Properties (with each asset valued at its GAAP book value and including the Borrower’s pro-rata share of the GAAP book value of Development Properties owned by Unconsolidated Affiliates) to exceed, in the aggregate, fifteen percent (15%) of Total Asset Value; or (v) the aggregate of investments under Section 10.1.(h)(i), (iii) and (iv) to exceed twenty-five percent (25%) of Total Asset Value.

 

 

 

  

  

  

 

(i) Secured Indebtedness.  The ratio of (i) Secured Indebtedness of the Parent, the Borrower, or any Subsidiary of Parent, determined on a consolidated basis, to (ii) Total Asset Value to exceed .55 to 1.00 at any time.

 

	
Section 10.2.  

	
Restricted Payments.

 

The Parent shall not, and shall not permit any of its Subsidiaries to, declare or make any Restricted Payment; provided, however, that the Parent and its Subsidiaries may declare and make the following Restricted Payments so long as no Default or Event of Default would result therefrom:

 

(a) the Parent may declare or make cash distributions to its shareholders in an aggregate amount for any period of four (4) consecutive fiscal quarters not to exceed the greater of (i) ninety-five percent (95%) of the Parent’s Funds from Operations for the four fiscal quarters ending prior to the fiscal quarter in which such distribution is made, or (ii) the amount required to be distributed for the Parent to maintain its status as a REIT under the Internal Revenue Code;

 

(b) the Parent may make cash distributions to its shareholders of capital gains resulting from gains from certain asset sales to the extent necessary to avoid payment of taxes on such asset sales imposed under Sections 857(b)(3) and 4981 of the Internal Revenue Code;

 

(c) (i) a Subsidiary that is not a Wholly Owned Subsidiary may make cash distributions to holders of Equity Interests issued by such Subsidiary and (ii) Parent, the Borrower or any Subsidiary may pay Restricted Payments to any minority equity holder of any  Subsidiary of Borrower that is not a Wholly Owned Subsidiary in order to purchase or redeem Equity Interests from such minority equity holder, so long as such investment is permitted pursuant to Section 10.4;

 

(d) Subsidiaries may pay Restricted Payments to the Parent, the Borrower or any other Subsidiary;

 

(e) share repurchases and redemptions to the extent permitted by Section 10.4(n) or Section 10.4(o);

 

(f) the Parent may effect “cashless exercises” of share options or restricted shares granted under any equity incentive plan adopted by the Parent;

 

 

 

  

  

  

 

(g) the Parent may distribute rights or equity securities under any rights plan adopted by the Borrower; and

 

(h) the Parent may declare or make cash distributions (or effect stock splits or reverse stock splits) with respect to its equity securities payable solely in additional shares of its equity securities.

 

Notwithstanding the foregoing, but subject to the following sentence, if a Default or Event of Default exists, the Parent may only declare or make cash distributions to its shareholders during any fiscal year in an aggregate amount not to exceed the minimum amount necessary for the Parent to maintain its status as a REIT under the Internal Revenue Code.  If an Event of Default specified in Section 11.1.(a) or (b), an Event of Default with respect to the Parent or the Borrower under Section 11.1.(f) or an Event of Default with respect to the Parent or the Borrower under Section 11.1.(g) shall exist, or if as a result of the occurrence of any other Event of Default any of the Obligations have been accelerated pursuant to Section 11.2.(a), the Parent shall not, and shall not permit any Subsidiary to, make any Restricted Payments to any Person other than to the Parent, the Borrower or any other Subsidiary.

 

	
Section 10.3.  

	
Indebtedness.

 

The Parent and the Borrower shall not, and shall not permit any Subsidiary to, incur, assume, or otherwise become obligated in respect of any Indebtedness after the Agreement Date if immediately prior to the assumption, incurring or becoming obligated in respect thereof, or immediately thereafter and after giving effect thereto, a Default or Event of Default is or would be in existence, including without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 10.1.  No Guarantor (other than Parent) shall incur, assume or otherwise become obligated in respect of any Secured Indebtedness.

 

	
Section 10.4.  

	
Investments Generally.

 

The Parent and the Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly, acquire, make or purchase any Investment, or permit any Investment of such Person to be outstanding on and after the Agreement Date, other than the following:

 

(a) Investments in Subsidiaries in existence on the Agreement Date and disclosed on Part I of Schedule 7.1.(b);

 

(b) Investments to acquire Equity Interests of a Subsidiary or any other Person who after giving effect to such acquisition would be a Subsidiary, so long as in each case immediately prior to such Investment, and after giving effect thereto, no Default or Event of Default is or would be in existence;

 

(c) Investments of the type described in Section 7.1(u);

 

(d) Investments in Cash Equivalents;

 

(e) intercompany Indebtedness among (i) the Parent and the Borrower and (ii) the Borrower and its Wholly Owned Subsidiaries provided that such Indebtedness is permitted by the terms of Section 10.3.;

 

 

 

  

  

  

 

(f) loans and advances to employees for moving, entertainment, travel and other similar expenses in the ordinary course of business consistent with past practices;

 

(g) demand deposits, certificates of deposit, bankers acceptances and domestic and eurodollar time deposits with any Lender, or any other commercial bank, trust company or national banking association incorporated under the laws of the United States or any State thereof;

 

(h) short-term direct obligations of the United States of America or agencies thereof whose obligations are guaranteed by the United States of America;

 

(i) securities commonly known as “commercial paper” issued by a corporation organized and existing under the laws of the United States or any State thereof;

 

(j) shares of “money market funds” registered with the Securities and Exchange Commission under the Investment Company Act of 1940;

 

(k) Properties and all direct or indirect interests in Properties, now or hereafter owned, leased or held by the Parent, the Borrower or any Subsidiary;

 

(l) equity investments in any Person and investments in mortgage and notes receivable reimbursement agreements (to the extent obligations are payable under such reimbursement agreements), including interest payments thereunder, of Parent, Borrower or any of their respective Subsidiaries in a Person;

 

(m) Derivative Contracts made in connection with any Indebtedness;

 

(n) repurchases of any common shares or other equity interests (or securities convertible into such interests) in the Parent which do not exceed, in any calendar year, (i) 10% of the aggregate outstanding common shares and other equity interests in the Parent as of the date hereof, in any combination, plus (ii) 10% of the aggregate of any additional common shares and other equity interests in the Parent issued after the date hereof, in any combination;

 

(o) redemptions for cash or common shares of the Parent of units of limited partnership interest in the Borrower;

 

(p) Capitalized Lease Obligations; and

 

(q) any other Investment so long as immediately prior to making such Investment, and immediately thereafter and after giving effect thereto, (a) no Default or Event of Default is or would be in existence, (b) the Borrower and Parent are in compliance with Section 8.4, and (c) such Investment does not violate the limitations established in Section 10.1(h).

 

	
Section 10.5.  

	
Liens.

 

The Parent and the Borrower shall not, and shall not permit any Subsidiary to, create, assume, or incur any Lien upon (i) any of its properties, assets, income or profits of any character whether now owned or hereafter acquired (other than Permitted Liens) if immediately prior to the creation, assumption or incurring of such Lien, or immediately thereafter, a Default or Event of Default is or would be in existence or (ii) any Unencumbered Pool Property or any equity interest therein (other than Permitted Liens (but not Liens of the type described in clauses (f) and (g) of the definition of Permitted Liens or Permitted Environmental Liens)).

 

 

 

  

  

  

 

	
Section 10.6.  

	
Merger, Consolidation, Sales of Assets and Other Arrangement.

 

The Parent and the Borrower shall not, and shall not permit any Subsidiary to:  (i) enter into any transaction of merger or consolidation; (ii) liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); or (iii) convey, sell, lease, sublease, transfer or otherwise dispose of, in one transaction or a series of transactions, any of its business or assets, whether now owned or hereafter acquired; provided, however, that:

 

(a) any of the actions described in the immediately preceding clauses (i) through (iii) may be taken with respect to any Subsidiary that is not a Loan Party so long as immediately prior to the taking of such action, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence;

 

(b) the Parent, the Borrower and the other Subsidiaries may lease and sublease their respective assets, as lessor or sublessor (as the case may be), in the ordinary course of their business;

 

(c) any Subsidiary may merge or be consolidated into or with the Borrower;

 

(d) a Person (other than the Borrower) may merge with and into a Loan Party so long as (i) such Loan Party is the survivor of such merger or the surviving entity becomes a Loan Party immediately upon the consummation thereof, (ii) immediately prior to such merger, and immediately thereafter and after giving effect thereto, (x) no Default or Event of Default is or would be in existence and (y) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party are and shall be true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents, (iii) such merger is completed as a result of negotiations with the approval of the board of directors or similar body of such Person and is not a so-called “hostile takeover”, and (iv) the Borrower shall have given the Agent at least 30 days’ (or such shorter period as may be approved by the Agent) prior written notice of such merger, such notice to include a certification as to the matters described in the immediately preceding clause (ii);

 

(e) any two or more Subsidiaries may merge or be consolidated, provided that if any of such Subsidiaries is a Loan Party, a Loan Party shall be the survivor of such merger or the surviving entity shall become a Loan Party immediately upon the consummation thereof unless such Loan Party is released as a Guarantor in accordance with the terms of this Agreement;

 

(f) a Subsidiary (other than the Borrower) may merge or be consolidated with any other Person in a transaction in which such other Person shall be the surviving entity, provided that if any of such Subsidiaries is a Loan Party, a Loan Party shall be the survivor of such merger or the surviving entity shall become a Loan Party immediately upon the consummation thereof unless such Loan Party is released as a Guarantor in accordance with the terms of this Agreement, may be liquidated or dissolved, or may sell, lease or otherwise dispose of all or substantially all of its Property, so long as, after giving effect to any such transaction, no Default or Event of Default shall then exist.  In the event that a Subsidiary shall engage in a transaction permitted by this Section 10.6(f) (other than a lease of all or substantially all of its assets), then such Subsidiary shall be released by the Agent from liability under the Guaranty, provided that (1) the Borrower shall deliver to the Agent evidence satisfactory to the Agent that the Borrower will be in compliance with all covenants of this Agreement after giving effect to such transaction and (2) the net cash proceeds from such sale or disposition are being distributed to Borrower or another Subsidiary as part of such dissolution;

 

 

 

  

  

  

 

(g) the Parent, the Borrower or any Subsidiary may sell, transfer or dispose of worn-out, obsolete or surplus personal property;

 

(h) the Parent, the Borrower or any Subsidiary may sell, transfer, contribute, master lease or otherwise dispose of any Property in an arm’s length transaction (or, if the transaction involves an Affiliate of the Borrower, if the transaction complies with Section 10.10), including, without limitation, a disposition of Properties pursuant to a merger or consolidation, provided, however, that for any fiscal year of the Borrower, any sale, transfer, master lease, contribution or other disposition of any Property in reliance on this clause (h) which when combined with all other sales, transfers, master leases, contributions or dispositions of Properties in reliance on this clause (h) made in such fiscal year (i) shall not exceed 25% of the contribution to Total Asset Value represented by all Properties of the Parent, the Borrower and their respective Subsidiaries determined as of the last day of the preceding fiscal year and (ii) shall not cause any Default or Event of Default to occur hereunder.

 

(i) the Parent, the Borrower and its Subsidiaries may exchange Property held by the Borrower or a Subsidiary for one or more Properties of any Person; provided, that the Board of Trustees or Capital Allocation Committee of the Borrower has determined in good faith that the fair market value of the assets received by the Borrower or any such Subsidiary are approximately equal to the fair market value of the assets exchanged by the Borrower or such Subsidiary; and

 

(j) the Parent, the Borrower and each other Subsidiary may sell, contribute, transfer or dispose of assets among themselves.

 

	
Section 10.7.  

	
Fiscal Year.

 

The Parent shall not change its fiscal year from that in effect as of the Agreement Date.

 

	
Section 10.8.  

	
Modifications to Material Contracts.

 

The Parent and the Borrower shall not, and shall not permit any Subsidiary to, enter into any amendment or modification to any Material Contract which could reasonably be expected to have a Material Adverse Effect.

 

 

 

  

  

  

 

	
Section 10.9.  

	
Modifications of Organizational Documents.

 

The Parent and the Borrower shall not, and shall not permit any Subsidiary to, amend, supplement, restate or otherwise modify its articles or certificate of incorporation, by-laws, operating agreement, declaration of trust, partnership agreement or other applicable organizational document if such amendment, supplement, restatement or other modification could reasonably be expected to have a Material Adverse Effect.

 

	
Section 10.10.  

	
Transactions with Affiliates.

 

The Parent and the Borrower shall not, and shall not permit any Subsidiary to, permit to exist or enter into, any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate (other than a Wholly Owned Subsidiary), except (a) transactions in the ordinary course of the business of the Parent, the Borrower or any of their respective Subsidiaries and upon fair and reasonable terms which are no less favorable to the Parent, the Borrower or such Subsidiary, as applicable, than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate, and (b) transactions permitted by Section 10.2. and transactions permitted by Section 10.4., so long as such transaction under Section 10.4. (other than a transaction under Section 10.4(f)) (i) is with a Person that is not (A) an officer or director of Parent or Borrower or a related Person to one of such officers or directors, or (B) a Person (other than Parent) in which a director, officer, agent or employee (or a related Person to one of such Persons) owns an Equity Interest.

 

	
Section 10.11.  

	
ERISA Exemptions.

 

The Parent and the Borrower shall not, and shall not permit any Subsidiary to, permit any of its respective assets to become or be deemed to be “plan assets” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder.

 

ARTICLE XI.    DEFAULT

 

	
Section 11.1.  

	
Events of Default.

 

Each of the following shall constitute an Event of Default, whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of Applicable Law or pursuant to any judgment or order of any Governmental Authority:

 

(a) Default in Payment of Principal.  The Borrower shall fail to pay when due (whether at maturity, by reason of acceleration or otherwise) the principal of any of the Loans, or any Reimbursement Obligation.

 

(b) Default in Payment of Interest and Other Obligations.  The Borrower shall fail to pay when due any interest on any of the Loans or any of the other payment Obligations owing by the Borrower under this Agreement or any other Loan Document, or any other Loan Party shall fail to pay when due any payment Obligation due and owing by such other Loan Party under any Loan Document to which it is a party, and such failure shall continue for a period of 5 Business Days.

 

 

  

  

  

 

(c) Default in Performance.  (i) The Borrower or the Parent shall fail to perform or observe any term, covenant, condition or agreement contained in Section 9.4.(j) or in Article X. or (ii) any Loan Party shall fail to perform or observe any term, covenant, condition or agreement contained in this Agreement or any other Loan Document to which it is a party and not otherwise mentioned in this Section and in the case of this clause (ii) only such failure shall continue for a period of 30 days after the earlier of (x) the date upon which a Responsible Officer of the Parent or such Loan Party obtains knowledge of such failure or (y) the date upon which the Parent has received written notice of such failure from the Agent.

 

(d) Misrepresentations.  Any written statement, representation or warranty made or deemed made by or on behalf of any Loan Party under this Agreement or under any other Loan Document, or any amendment hereto or thereto, or in any other writing or statement at any time furnished or made or deemed made by or on behalf of any Loan Party to the Agent or any Lender, shall at any time prove to have been incorrect or misleading, in light of the circumstances in which made or deemed made, in any material respect when furnished or made or deemed made.

 

(e) Indebtedness Cross Default; Derivatives Contracts.

 

(i) The Borrower, the Parent, or any Subsidiary of Parent shall fail to pay when due and payable, within any applicable grace of cure period, the principal of, or interest on, any Indebtedness (other than the Loans) having an aggregate outstanding principal amount of $10,000,000 (or $50,000,000 in the case of Nonrecourse Indebtedness) or more (“Material Indebtedness”); or

 

(ii) (x) the maturity of any Material Indebtedness shall have been accelerated in accordance with the provisions of any indenture, contract or instrument evidencing, providing for the creation of or otherwise concerning such Material Indebtedness or (y) any Material Indebtedness shall have been required to be prepaid or repurchased prior to the stated maturity thereof (other than as a result of customary non-default mandatory prepayment provisions associated with events such asset sales, casualty events, debt issuances, equity issuances or excess cash flow); or

 

(iii) there occurs under any Derivatives Contract an “Early Termination Date” (as defined in such Derivatives Contract) resulting from (A) any event of default under such Derivatives Contract as to which any Loan Party is the “Defaulting Party” (as defined in such Derivatives Contract) or (B) any “Termination Event” (as so defined) under such Derivatives Contract as to which any Loan Party is an “Affected Party” (as so defined) and, in either event, the Derivatives Termination Value owed by any Loan Party as a result thereof is $10,000,000 or more.

 

(f) Voluntary Bankruptcy Proceeding.  Any Loan Party or any Material Subsidiary shall:  (i) commence a voluntary case under the Bankruptcy Code of 1978, as amended, or other federal bankruptcy laws (as now or hereafter in effect); (ii) file a petition seeking to take advantage of any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up, or composition or adjustment of debts; (iii) consent to, or fail to contest in a timely and appropriate manner, any petition filed against it in an involuntary case under such bankruptcy laws or other Applicable Laws or consent to any proceeding or action described in the immediately following subsection; (iv) apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part of its property, domestic or foreign; (v) admit in writing its inability to pay its debts as they become due; (vi) make a general assignment for the benefit of creditors; (vii) make a conveyance fraudulent as to creditors under any Applicable Law; or (viii) take any corporate or partnership action for the purpose of effecting any of the foregoing.

 

 

 

  

  

  

 

(g) Involuntary Bankruptcy Proceeding.  A case or other proceeding shall be commenced against any Loan Party or any Material Subsidiary in any court of competent jurisdiction seeking:  (i) relief under the Bankruptcy Code of 1978, as amended, or other federal bankruptcy laws (as now or hereafter in effect) or under any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up, or composition or adjustment of debts; or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of such Person, or of all or any substantial part of the assets, domestic or foreign, of such Person, and such case or proceeding shall continue undismissed or unstayed for a period of 60 consecutive calendar days, or an order granting the remedy or other relief requested in such case or proceeding against such Loan Party or Material Subsidiary (including, but not limited to, an order for relief under such Bankruptcy Code or such other federal bankruptcy laws) shall be entered.

 

(h) Litigation; Enforceability.  Any Loan Party shall disavow, revoke or terminate (or attempt to terminate) any Loan Document to which it is a party or shall otherwise challenge or contest in any action, suit or proceeding in any court or before any Governmental Authority the validity or enforceability of this Agreement, any Note or any other Loan Document or this Agreement, any Note, the Guaranty or any other Loan Document shall cease to be in full force and effect (except as a result of the express terms thereof).

 

(i) Judgment.  A judgment or order for the payment of money or for an injunction shall be entered against any Loan Party or any other Subsidiary by any court or other tribunal and (i) such judgment or order shall continue for a period of 30 days without being paid, stayed or dismissed through appropriate appellate proceedings and (ii) either (A) the amount of such judgment or order for which insurance has not been acknowledged in writing by the applicable insurance carrier (or the amount as to which the insurer has denied liability) (x) in the case of any judgment against the Parent or any other Loan Party exceeds $25,000,000 (or, in case more than one such judgment against the Parent or any other Loan Party exists, all such judgments, in the aggregate, entered during any calendar year exceed $25,000,000) or (y) in the case of any judgment against any Subsidiary that is not a Loan Party exceeds $25,000,000, (or in case more than one such judgment against such Subsidiaries exists, all such judgments in the aggregate entered during any calendar year exceed $25,000,000) or (B) in the case of an injunction or other non-monetary judgment, such judgment could reasonably be expected to have a Material Adverse Effect.

 

(j) Attachment.  A warrant, writ of attachment, execution or similar process shall be issued against any asset of any Loan Party or any other Subsidiary which exceeds, individually or together with all other such warrants, writs, executions and processes, (i) with respect to the Parent and any other Loan Parties, $25,000,000 or (ii) with respect to Subsidiaries that are not Loan Parties, $25,000,000 and such warrant, writ, execution or process shall not be discharged, vacated, stayed or bonded for a period of 30 days.

 

 

 

  

  

  

 

(k) ERISA.  Any member of the ERISA Group shall fail to pay when due an amount or amounts aggregating in excess of $10,000,000 which it shall have become liable to pay under Title IV of ERISA; or notice of intent to terminate a Plan or Plans having aggregate Unfunded Liabilities in excess of $10,000,000 shall be filed under Title IV of ERISA by any member of the ERISA Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer, any Plan or Plans having aggregate Unfunded Liabilities in excess of $10,000,000; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any such Plan must be terminated; or there shall occur a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could cause one or more members of the ERISA Group to incur a current payment obligation in excess of $10,000,000.

 

(l) Change of Control/Change in Management.

 

(i) Any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person will be deemed to have “beneficial ownership” of all securities that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 30.0% of the total voting power of the then outstanding voting stock of the Parent;

 

(ii) During any period of 12 consecutive months ending after the Agreement Date, individuals who at the beginning of any such 12 month period constituted the Board of Trustees of the Parent (together with any new trustees whose election by such Board or whose nomination for election by the shareholders of the Parent was approved by a vote of a majority of the trustees then still in office who were either trustees at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Trustees of the Parent then in office (excluding any individual whose initial nomination for, or assumption of office as, a member of such Board occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors or trustees by any Person or group other than a solicitation for the election of one or more directors or trustees by or on behalf of the Board); or

 

(iii) The Parent or a Wholly Owned Subsidiary of the Parent shall cease to be the sole general partner of the Borrower or shall cease to have the sole and exclusive power to exercise all management and control over the Borrower.

 

(m) Liquidating Events.  The occurrence of a “Liquidating Event” under and as defined in the partnership agreement of the Borrower or any event occurs that results in the dissolution of the Borrower.

 

 

  

  

  

 

(n) The Term Loan Agreement. The occurrence of an “Event of Default” under the Term Loan Agreement.

 

In the event that there shall occur any Default that affects only certain Unencumbered Pool Property included in the calculation of the Unencumbered Pool Value, then the Borrower may elect to cure such Default (so long as no other Default or Event of Default exists or would arise as a result) by electing to have the Agent remove such Unencumbered Pool Property from the calculation of the Borrowing Base and Unencumbered Pool Value and by reducing the outstanding Loans by the amount of the Borrowing Base attributable to such Unencumbered Pool Property. in which event such removal and reduction shall be completed within five (5) Business Days after the earlier of (i) Borrower obtaining knowledge of such Default and (ii) receipt of notice of such Default from the Agent.  In connection with removal, Borrower shall deliver to the Agent the items required to be delivered pursuant to Section 4.5. in connection with the removal of an ineligible property.

 

	
Section 11.2.  

	
Remedies Upon Event of Default.

 

Upon the occurrence of an Event of Default the following provisions shall apply:

 

(a) Acceleration; Termination of Facilities.

 

(i) Automatic.  Upon the occurrence of an Event of Default specified in Sections 11.1.(f) or 11.1.(g), (A)(i) the principal of, and all accrued interest on, the Loans and the Notes at the time outstanding, (ii) an amount equal to the Stated Amount of all Letters of Credit outstanding as of the date of the occurrence of such Event of Default for deposit into the Collateral Account pursuant to Section 11.5 and (iii) all of the other Obligations of the Borrower, including, but not limited to, the other amounts owed to the Lenders, the Swingline Lender and the Agent under this Agreement, the Notes or any of the other Loan Documents shall become immediately and automatically due and payable by the Borrower without presentment, demand, protest, or other notice of any kind, all of which are expressly waived by the Borrower and (B) all of the Commitments, the obligation of the Lenders to make Revolving Loans, the Swingline Commitment, the obligation of the Swingline Lender to make Swingline Loans, and the obligation of the Issuing Lender to issue Letters of Credit hereunder, shall all immediately and automatically terminate.

 

(ii) Optional.  If any other Event of Default shall exist, the Agent shall, at the direction of the Requisite Lenders:  (A) declare (1) the principal of, and accrued interest on, the Loans and the Notes at the time outstanding, (2) an amount equal to the Stated Amount of all Letters of Credit outstanding as of the date of the occurrence of such other Event of Default for deposit into the Collateral Account pursuant to Section 11.5 and (3) all of the other Obligations, including, but not limited to, the other amounts owed to the Lenders and the Agent under this Agreement, the Notes or any of the other Loan Documents to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Borrower and (B) terminate the Commitments and the obligation of the Lenders to make Loans hereunder and the obligation of the Issuing Lender to issue Letters of Credit hereunder.  Further, if the Agent has exercised any of the rights provided under the preceding sentence, the Swingline Lender shall:  (x) declare the principal of, and accrued interest on, the Swingline Loans and the Swingline Note at the time outstanding, and all of the other Obligations owing to the Swingline Lender, to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Borrower and (y) terminate the Swingline Commitment and the obligation of the Swingline Lender to make Swingline Loans.

 

 

  

  

  

 

(b) Loan Documents.  The Requisite Lenders may direct the Agent to, and the Agent if so directed shall, exercise any and all of its rights under any and all of the other Loan Documents.

 

(c) Applicable Law.  The Requisite Lenders may direct the Agent to, and the Agent if so directed shall, exercise all other rights and remedies it may have under any Applicable Law.

 

	
Section 11.3.  

	
Remedies Upon Default.

 

Upon the occurrence of a Default specified in Section 11.1.(g), the Commitments shall immediately and automatically terminate.

 

	
Section 11.4.  

	
Allocation of Proceeds.

 

If an Event of Default shall exist and maturity of any of the Obligations has been accelerated, all payments received by the Agent under any of the Loan Documents, in respect of any principal of or interest on the Obligations or any other amounts payable by the Borrower hereunder or thereunder, shall be applied in the following order and priority:

 

(a) amounts due to the Agent in respect of fees and expenses due under Section 13.2.;

 

(b) amounts due to the Lenders in respect of fees and expenses due under Section 13.2., pro rata in the amount then due each Lender;

 

(c) payments of interest on Swingline Loans;

 

(d) payments of interest on all other Loans and Reimbursement Obligations, to be applied for the ratable benefit of the Lenders;

 

(e) payments of principal of Swingline Loans;

 

(f) payments of principal of all other Loans, Reimbursement Obligations and other Letter of Credit Liabilities, to be applied for the ratable benefit of the Lenders; provided, however, to the extent that any amounts available for distribution pursuant to this subsection are attributable to the issued but undrawn amount of an outstanding Letters of Credit, such amounts shall be paid to the Agent for deposit into the Collateral Account;

 

(g) amounts due the Agent and the Lenders pursuant to Sections 12.8. and 13.9.;

 

 

 

  

  

  

 

(h) payments of all other Obligations and other amounts due and owing by the Borrower and the other Loan Parties under any of the Loan Documents, if any, to be applied for the ratable benefit of the Lenders; and

 

(i) any amount remaining after application as provided above, shall be paid to the Borrower or whomever else may be legally entitled thereto.

 

	
Section 11.5.  

	
Collateral Account.

 

(a) As collateral security for the prompt payment in full when due of all Letter of Credit Liabilities and the other Obligations, the Borrower hereby pledges and grants to the Agent, for the ratable benefit of the Agent and the Lenders as provided herein, a security interest in all of its right, title and interest in and to the Collateral Account and the balances from time to time in the Collateral Account (including the investments and reinvestments therein provided for below).  The balances from time to time in the Collateral Account shall not constitute payment of any Letter of Credit Liabilities until applied by the Agent as provided herein.  Anything in this Agreement to the contrary notwithstanding, funds held in the Collateral Account shall be subject to withdrawal only as provided in this Section.

 

(b) Amounts on deposit in the Collateral Account shall be invested and reinvested by the Agent in such Cash Equivalents as the Agent shall determine in its sole discretion.  All such investments and reinvestments shall be held in the name of and be under the sole dominion and control of the Agent for the ratable benefit of the Lenders.  The Agent shall exercise reasonable care in the custody and preservation of any funds held in the Collateral Account and shall be deemed to have exercised such care if such funds are accorded treatment substantially equivalent to that which the Agent accords other funds deposited with the Agent, it being understood that the Agent shall not have any responsibility for taking any necessary steps to preserve rights against any parties with respect to any funds held in the Collateral Account.

 

(c) If a drawing pursuant to any Letter of Credit occurs on or prior to the expiration date of such Letter of Credit, the Borrower and the Lenders authorize the Agent to use the monies deposited in the Collateral Account to make payment to the beneficiary with respect to such drawing or the payee with respect to such presentment or to reimburse the Issuing Lender with respect to such draw.  If a Swingline Loan is not refinanced as a Base Rate Loan as provided in Section 2.2.(e) above, then the Agent is authorized to use monies deposited in the Collateral Account to make payment to the Swingline Lender with respect to any participation not funded by a Defaulting Lender.

 

(d) If an Event of Default exists, the Requisite Lenders may, in their discretion, at any time and from time to time, instruct the Agent to liquidate any such investments and reinvestments and apply proceeds thereof to the Obligations in accordance with Section 11.4.

 

(e) So long as no Default or Event of Default exists, and to the extent amounts on deposit in the Collateral Account exceed the aggregate amount of the Letter of Credit Liabilities then due and owing and the pro rata share of any Letter of Credit Obligations and Swingline Loans of any Defaulting Lender after giving effect to Section 3.11.(c), the Agent shall, from time to time, at the request of the Borrower, deliver to the Borrower within 10 Business Days after the Agent’s receipt of such request from the Borrower, against receipt but without any recourse, warranty or representation whatsoever, such of the balances in the Collateral Account as exceed the aggregate amount of the Letter of Credit Liabilities at such time.

 

 

 

  

  

  

 

(f) The Borrower shall pay to the Agent from time to time such fees as the Agent normally charges for similar services in connection with the Agent’s administration of the Collateral Account and investments and reinvestments of funds therein.  The Borrower authorizes Agent to file such financing statements as Agent may reasonably require in order to perfect Agent’s security interest in the Collateral Account, and Borrower shall promptly upon demand execute and deliver to Agent such other documents as Agent may reasonably request to evidence its security interest in the Collateral Account.

 

	
Section 11.6.  

	
Performance by Agent.

 

If any Loan Party shall fail to perform any covenant, duty or agreement contained in any of the Loan Documents, the Agent may, after notice to the Borrower, perform or attempt to perform such covenant, duty or agreement on behalf of the Loan Party after the expiration of any cure or grace periods set forth herein.  In such event, the Borrower shall, at the request of the Agent, promptly pay any amount reasonably expended by the Agent in such performance or attempted performance to the Agent, together with interest thereon at the applicable Post Default Rate from the date of such expenditure until paid.  Notwithstanding the foregoing, neither the Agent nor any Lender shall have any liability or responsibility whatsoever for the performance of any obligation of the Loan Parties under this Agreement or any other Loan Document.

 

	
Section 11.7.  

	
Rights Cumulative.

 

The rights and remedies of the Agent and the Lenders under this Agreement and each of the other Loan Documents shall be cumulative and not exclusive of any rights or remedies which any of them may otherwise have under Applicable Law.  In exercising their respective rights and remedies the Agent and the Lenders may be selective and no failure or delay by the Agent or any of the Lenders in exercising any right shall operate as a waiver of it, nor shall any single or partial exercise of any power or right preclude its other or further exercise or the exercise of any other power or right.

 

ARTICLE XII.    THE AGENT

 

	
Section 12.1.  

	
Authorization and Action.

 

Each Lender hereby appoints and authorizes the Agent to take such action as contractual representative on such Lender’s behalf and to exercise such powers under this Agreement and the other Loan Documents as are specifically delegated to the Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto.  Not in limitation of the foregoing, each Lender authorizes and directs the Agent to enter into the Loan Documents for the benefit of the Lenders.  Each Lender hereby agrees that, except as otherwise set forth herein, any action taken by the Requisite Lenders in accordance with the provisions of this Agreement or the Loan Documents, and the exercise by the Requisite Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders.  Nothing herein shall be construed to deem the Agent a trustee or fiduciary for any Lender nor to impose on the Agent duties or obligations other than those expressly provided for herein.  At the request of a Lender, the Agent will forward to such Lender copies or, where appropriate, originals of the documents delivered to the Agent pursuant to this Agreement or the other Loan Documents.  The Agent will also furnish to any Lender, upon the request of such Lender, a copy of any certificate or notice furnished to the Agent by the Borrower, any Loan Party or any other Affiliate of the Borrower, pursuant to this Agreement or any other Loan Document not already delivered to such Lender pursuant to the terms of this Agreement or any such other Loan Document.  As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of any of the Obligations), the Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Requisite Lenders (or all of the Lenders if explicitly required under any other provision of this Agreement), and such instructions shall be binding upon all Lenders and all holders of any of the Obligations; provided, however, that, notwithstanding anything in this Agreement to the contrary, the Agent shall not be required to take any action which exposes the Agent to personal liability or which is contrary to this Agreement or any other Loan Document or Applicable Law.  Not in limitation of the foregoing, the Agent shall not exercise any right or remedy it or the Lenders may have under any Loan Document upon the occurrence of a Default or an Event of Default unless the Requisite Lenders have so directed the Agent to exercise such right or remedy.

 

 

 

  

  

  

 

	
Section 12.2.  

	
Agent’s Reliance, Etc.

 

Notwithstanding any other provisions of this Agreement or any other Loan Documents, neither the Agent nor any of its directors, officers, agents, employees or counsel shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement or any other Loan Document, except for its or their own gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment.  Without limiting the generality of the foregoing, the Agent:  (a) may treat the payee of any Note as the holder thereof until the Agent receives written notice of the assignment or transfer thereof signed by such payee and in form satisfactory to the Agent; (b) may consult with legal counsel (including its own counsel or counsel for the Parent, the Borrower or any other Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any Lender or any other Person and shall not be responsible to any Lender or any other Person for any statements, warranties or representations made by any Person in or in connection with this Agreement or any other Loan Document; (d) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any of this Agreement or any other Loan Document or the satisfaction of any conditions precedent under this Agreement or any Loan Document on the part of the Parent, the Borrower or other Persons or inspect the property, books or records of the Parent, the Borrower or any other Person; (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document, any other instrument or document furnished pursuant thereto or any collateral covered thereby or the perfection or priority of any Lien in favor of the Agent on behalf of the Lenders in any such collateral; and (f) shall incur no liability under or in respect of this Agreement or any other Loan Document by acting upon any notice, consent, certificate or other instrument or writing (which may be by telephone or telecopy) believed by it to be genuine and signed, sent or given by the proper party or parties.  Unless set forth in writing to the contrary, the making of its initial Loan by a Lender shall constitute a certification by such Lender to the Agent and the other Lenders that the conditions precedent for initial Loans set forth in Sections 6.1. and 6.2. that have not previously been waived by the Requisite Lenders have been satisfied.

 

	
Section 12.3.  

	
Notice of Defaults.

 

The Agent shall not be deemed to have knowledge or notice of the occurrence of a Default or Event of Default unless the Agent has received notice from a Lender or the Borrower referring to this Agreement, describing with reasonable specificity such Default or Event of Default and stating that such notice is a “notice of default.”  If any Lender (excluding the Lender which is also serving as the Agent) becomes aware of any Default or Event of Default, it shall promptly send to the Agent such a “notice of default.”  Further, if the Agent receives such a “notice of default”, the Agent shall give prompt notice thereof to the Lenders.

 

	
Section 12.4.  

	
KeyBank as Lender.

 

KeyBank, as a Lender, shall have the same rights and powers under this Agreement and any other Loan Document as any other Lender and may exercise the same as though it were not the Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include KeyBank in each case in its individual capacity.  KeyBank and its affiliates may each accept deposits from, maintain deposits or credit balances for, invest in, lend money to, act as trustee under indentures of, serve as financial advisor to, and generally engage in any kind of business with, the Parent, the Borrower, any other Loan Party or any other affiliate thereof as if it were any other bank and without any duty to account therefor to the other Lenders.  Further, the Agent and any affiliate may accept fees and other consideration from the Loan Parties for services in connection with this Agreement and otherwise without having to account for the same to the other Lenders.  The Lenders acknowledge that, pursuant to such activities, KeyBank or its affiliates may receive information regarding the Parent, the Borrower, other Loan Parties, other Subsidiaries and other Affiliates (including information that may be subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent shall be under no obligation to provide such information to them.

 

 

  

  

  

 

	
Section 12.5.  

	
Approvals of Lenders.

 

All communications from the Agent to any Lender requesting such Lender’s determination, consent, approval or disapproval (a) shall be given in the form of a written notice to such Lender, (b) shall be accompanied by a description of the matter or issue as to which such determination, approval, consent or disapproval is requested, or shall advise such Lender where information, if any, regarding such matter or issue may be inspected, or shall otherwise describe the matter or issue to be resolved, (c) shall include, if reasonably requested by such Lender and to the extent not previously provided to such Lender, written materials and, as appropriate, a brief summary of all oral information provided to the Agent by the Parent or the Borrower in respect of the matter or issue to be resolved, and (d) shall include the Agent’s recommended course of action or determination in respect thereof.  Each Lender shall reply promptly, but in any event within 10 Business Days (or such lesser or greater period as may be specifically required under the Loan Documents) of receipt of such communication.  Except as otherwise provided in this Agreement, unless a Lender shall give written notice to the Agent that it specifically objects to the recommendation or determination of the Agent (together with a written explanation of the reasons behind such objection) within the applicable time period for reply, such Lender shall be deemed to have conclusively approved of or consented to such recommendation or determination.

 

	
Section 12.6.  

	
Lender Credit Decision, Etc.

 

Each Lender expressly acknowledges and agrees that neither the Agent nor any of its officers, directors, employees, agents, counsel, attorneys in fact or other affiliates has made any representations or warranties as to the financial condition, operations, creditworthiness, solvency or other information concerning the business or affairs of the Parent, the Borrower, any other Loan Party, any Subsidiary or any other Person to such Lender and that no act by the Agent hereafter taken, including any review of the affairs of the Parent, the Borrower, any other Loan Party or any other Subsidiary, shall be deemed to constitute any such representation or warranty by the Agent to any Lender.  Each Lender acknowledges that it has made its own credit and legal analysis and decision to enter into this Agreement and the transactions contemplated hereby, independently and without reliance upon the Agent, any other Lender or counsel to the Agent, or any of their respective officers, directors, employees and agents, and based on the financial statements of the Parent, the Borrower, the other Subsidiaries or any other Affiliate thereof, and inquiries of such Persons, its independent due diligence of the business and affairs of the Parent, the Borrower, the other Loan Parties, the other Subsidiaries and other Persons, its review of the Loan Documents, the legal opinions required to be delivered to it hereunder, the advice of its own counsel and such other documents and information as it has deemed appropriate.  Each Lender also acknowledges that it will, independently and without reliance upon the Agent, any other Lender or counsel to the Agent or any of their respective officers, directors, employees and agents, and based on such review, advice, documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action under the Loan Documents.  Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Agent under this Agreement or any of the other Loan Documents, the Agent shall have no duty or responsibility to provide any Lender with any credit or other information concerning the business, operations, property, financial and other condition or creditworthiness of the Parent, the Borrower, any other Loan Party or any other Affiliate thereof which may come into possession of the Agent, or any of its officers, directors, employees, agents, attorneys in fact or other affiliates.  Each Lender acknowledges that the Agent’s legal counsel in connection with the transactions contemplated by this Agreement is only acting as counsel to the Agent and is not acting as counsel to such Lender.

 

	
Section 12.7.  

	
Indemnification of Agent.

 

Each Lender agrees to indemnify the Agent (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so) pro rata in accordance with such Lender’s respective Commitment Percentage, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may at any time be imposed on, incurred by, or asserted against the Agent (in its capacity as Agent but not as a Lender) in any way relating to or arising out of the Loan Documents, any transaction contemplated hereby or thereby or any action taken or omitted by the Agent under the Loan Documents (collectively, “Indemnifiable Amounts”); provided, however, that no Lender shall be liable for any portion of such Indemnifiable Amounts to the extent resulting from the Agent’s gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment or if the Agent fails to follow the written direction of the Requisite Lenders (or all of the Lenders if expressly required hereunder) unless such failure results from the Agent following the advice of counsel to the Agent of which advice the Lenders have received notice.  Without limiting the generality of the foregoing but subject to the preceding proviso, each Lender agrees to reimburse the Agent (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees of the counsel(s) of the Agent’s own choosing) incurred by the Agent in connection with the preparation, negotiation, execution, or enforcement of, or legal advice with respect to the rights or responsibilities of the parties under, the Loan Documents, any suit or action brought by the Agent to enforce the terms of the Loan Documents and/or collect any Obligations, any “lender liability” suit or claim brought against the Agent and/or the Lenders, and any claim or suit brought against the Agent, and/or the Lenders arising under any Environmental Laws.  Such out-of-pocket expenses (including reasonable counsel fees) shall be advanced by the Lenders on the request of the Agent notwithstanding any claim or assertion that the Agent is not entitled to indemnification hereunder upon receipt of an undertaking by the Agent that the Agent will reimburse the Lenders if it is actually and finally determined by a court of competent jurisdiction that the Agent is not so entitled to indemnification.  The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder or under the other Loan Documents and the termination of this Agreement.  If the Borrower shall reimburse the Agent for any Indemnifiable Amount following payment by any Lender to the Agent in respect of such Indemnifiable Amount pursuant to this Section, the Agent shall share such reimbursement on a ratable basis with each Lender making any such payment.

 

 

  

  

  

 

	
Section 12.8.  

	
Successor Agent.

 

The Agent may resign at any time as Agent under the Loan Documents by giving written notice thereof to the Lenders and the Borrower.  The Agent may be removed as Agent under the Loan Documents for good cause by all of the Lenders (other than the Lender then acting as the Agent) upon 30 days’ prior notice.  Upon any such resignation or removal, the Requisite Lenders shall have the right to appoint a successor Agent which appointment shall, provided no Default or Event of Default exists, be subject to the Borrower’s approval, which approval shall not be unreasonably withheld or delayed.  If no successor Agent shall have been so appointed in accordance with the immediately preceding sentence, and shall have accepted such appointment, within 30 days after the resigning Agent’s giving of notice of resignation or the Lenders’ removal of the removed Agent, then the resigning or removed Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a Lender, if any Lender shall be willing to serve, and otherwise shall be a commercial bank having total combined assets of at least $50,000,000,000.  Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under the Loan Documents.  Such successor Agent shall issue letters of credit in substitution for the Letters of Credit issued by Agent, if any, outstanding at the time of such succession or shall make other arrangements satisfactory to the current Agent, in either case, to assume effectively the obligations of the current Agent with respect to such Letters of Credit.  After any Agent’s resignation or removal hereunder as Agent, the provisions of this Article XII shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under the Loan Documents.

 

	
Section 12.9.  

	
Titled Agents.

 

Each of the Titled Agents in each such respective capacity, assumes no responsibility or obligation hereunder, including, without limitation, for servicing, enforcement or collection of any of the Loans, nor any duties as an agent hereunder for the Lenders.  The titles of “Arranger” and “Syndication Agent” are solely honorific and imply no fiduciary responsibility on the part of the Titled Agents to the Agent, the Borrower or any Lender and the use of such titles does not impose on the Titled Agents any duties or obligations greater than those of any other Lender or entitle the Titled Agents to any rights other than those to which any other Lender is entitled.

 

ARTICLE XIII.     MISCELLANEOUS

 

	
Section 13.1.  

	
Notices.

 

Unless otherwise provided herein, communications provided for hereunder shall be in writing and shall be mailed, telecopied or delivered as follows:

 

	
  

	
If to the Borrower:

 

 

	
  

	
Kite Realty Group, L.P.

	
  

	
c/o Kite Realty Group Trust

	
  

	
30 S. Meridian Street, Suite 1100

	
  

	
Indianapolis, Indiana  46204

	
  

	
Attn:  Chief Financial Officer

	
Telephone:

	
(317) 577-5600

	
Telecopy:

	
(317) 577-5605

 

	
  

	
with a copy to:

 

 

	
  

	
Hogan Lovells US LLP

	
  

	
555 13th Street, N.W.

	
  

	
Washington, D.C.  20004

	
  

	
Attn:  David Bonser

	
Telephone:

	
(202) 637-5868

	
Telecopy:

	
(202) 637-5910

 

	
  

	
If to the Agent:

 

 

	
  

	
KeyBank National Association

	
  

	
Real Estate Capital

	
  

	
1200 Abernathy Road, N.E., Suite 1550

	
  

	
Atlanta, Georgia  30328

	
  

	
Attn:  James Komperda

	
Telephone:

	
(770) 510-2160

	
Telecopy:

	
(770) 510-2195

 

 

 

  

  

  

 

 

	
  

	
With a copy to:

 

	
  

	
McKenna Long & Aldridge LLP

	
  

	
303 Peachtree Street, N.E., Suite 5300

	
  

	
Atlanta, Georgia  30308

	
  

	
Attn:  William F. Timmons

	
Telephone:

	
(404) 527-8380

	
Telecopy:

	
(404) 527-4198

 

If to a Lender:

 

To such Lender’s address or telecopy number, as applicable, set forth on its signature page hereto or in the applicable Assignment and Acceptance Agreement;

 

or, as to each party at such other address as shall be designated by such party in a written notice to the other parties delivered in compliance with this Section.  All such notices and other communications shall be effective (i) if mailed, when received; (ii) if telecopied, when transmitted; or (iii) if hand delivered or sent by overnight courier, when delivered.  Notwithstanding the immediately preceding sentence, all notices or communications to the Agent or any Lender under Article II. shall be effective only when actually received.  Neither the Agent nor any Lender shall incur any liability to the Borrower (nor shall the Agent incur any liability to the Lenders) for acting upon any telephonic notice referred to in this Agreement which the Agent or such Lender, as the case may be, believes in good faith to have been given by a Person authorized to deliver such notice or for otherwise acting in good faith hereunder. Failure of a Person designated to get a copy of a notice to receive such copy shall not affect the validity of notice properly given to any other Person.

 

	
Section 13.2.  

	
Expenses.

 

The Borrower agrees (a) to pay or reimburse the Agent for all of its reasonable out-of-pocket costs and expenses incurred in connection with the preparation, negotiation and execution of, and any amendment, supplement or modification to, any of the Loan Documents (including due diligence expenses and travel expenses relating to closing), and the consummation of the transactions contemplated thereby, including (x) the reasonable fees and disbursements of counsel to the Agent, (y) costs and expenses of the Agent in connection with the use of IntraLinks, Inc. or other similar information transmission systems in connection with the Loan Documents, and (z) reasonable costs and expenses incurred by the Agent in connection with the review of Properties for inclusion in calculations of the Borrowing Base and the Agent’s other activities under Article XII., including the reasonable fees and disbursements of counsel to the Agent relating to all such activities, (b) to pay or reimburse the Agent and the Lenders for all their reasonable costs and expenses incurred following the occurrence of a Default in connection with the enforcement or preservation of any rights under the Loan Documents, including the reasonable fees and disbursements of their respective counsel and any payments in indemnification or otherwise payable by the Lenders to the Agent pursuant to the Loan Documents, (c) to pay, and indemnify and hold harmless the Agent from any and all recording and filing fees and any and all liabilities with respect to, or resulting from any failure to pay or delay in paying, documentary, stamp, excise and other similar taxes, if any, which may be payable or determined to be payable in connection with the execution and delivery of any of the Loan Documents, or consummation of any amendment, supplement or modification of, or any waiver or consent under or in respect of, any Loan Document and (d) to the extent not already covered by any of the preceding subsections, to pay or reimburse the Agent and the Lenders for all their costs and expenses incurred in connection with any bankruptcy or other proceeding of the type described in Sections 11.1.(f) or 11.1.(g), including the reasonable fees and disbursements of counsel to the Agent 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.  If the Borrower shall fail to pay any amounts required to be paid by it pursuant to this Section within thirty (30) days after receipt of a reasonably detailed invoice therefor, the Agent, and/or the Lenders may pay such amounts on behalf of the Borrower and either deem the same to be Loans outstanding hereunder or otherwise Obligations owing hereunder.

 

 

 

  

  

  

 

	
Section 13.3.  

	
Setoff.

 

Subject to Section 3.3. and in addition to any rights now or hereafter granted under Applicable Law and not by way of limitation of any such rights, the Agent, each Lender and each Participant is hereby authorized by the Borrower, at any time or from time to time during the continuance of an Event of Default, without prior notice to the Borrower or to any other Person, any such notice being hereby expressly waived, but in the case of a Lender or Participant subject to receipt of the prior written consent of the Agent exercised in its sole discretion, to set off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at any time held or owing by the Agent, such Lender or any affiliate of the Agent or such Lender, to or for the credit or the account of the Borrower against and on account of any of the Obligations, irrespective of whether or not any or all of the Loans and all other Obligations have been declared to be, or have otherwise become, due and payable as permitted by Section 11.2., and although such obligations shall be contingent or unmatured; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (a) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of this Agreement and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (b) 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.

 

	
Section 13.4.  

	
Litigation; Jurisdiction; Other Matters; Waivers.

 

(a) EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE PARENT, THE BORROWER, THE AGENT OR ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT, THE PARENT, AND THE BORROWER HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS AGREEMENT, THE NOTES, OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG THE PARENT, THE BORROWER, THE AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

 

 

 

  

  

  

 

(b) EACH OF THE PARENT, THE BORROWER, THE AGENT AND EACH LENDER HEREBY AGREES THAT ANY FEDERAL DISTRICT COURT LOCATED IN NEW YORK OR, AT THE OPTION OF THE AGENT, ANY STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW YORK, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE PARENT, THE BORROWER, THE AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE LOANS AND LETTERS OF CREDIT, THE NOTES OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  THE PARENT, THE BORROWER AND EACH OF THE LENDERS EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM, AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

 

(c) THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS AGREEMENT.

 

	
Section 13.5.  

	
Successors and Assigns.

 

(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, except that neither the Parent or the Borrower may assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of all Lenders and any such assignment or other transfer to which all of the Lenders have not so consented shall be null and void.

 

(b) Any Lender may make, carry or transfer Loans at, to or for the account of any of its branch offices or the office of an affiliate of such Lender except to the extent such transfer would result in increased costs to the Borrower.

 

 

 

  

  

  

 

(c) Any Lender may at any time grant to one or more banks or other financial institutions (each a “Participant”) participating interests in its Commitment or the Obligations owing to such Lender; provided, however, after giving effect to any such participation by a Lender, the amount of its Commitment, or if the Commitments have been terminated, the aggregate outstanding principal balance of Notes held by it, in which it has not granted any participating interests must be equal to $5,000,000; and provided further that such participant shall not be a Defaulting Lender or an Affiliate of a Defaulting Lender.  Except as otherwise provided in Section 13.3., no Participant shall have any rights or benefits under this Agreement or any other Loan Document.  In the event of any such grant by a Lender of a participating interest to a Participant, such Lender shall remain responsible for the performance of its obligations hereunder, and the Borrower and the Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which any Lender may grant such a participating interest shall provide that such Lender shall retain the sole right and responsibility to enforce the obligations of the Borrower hereunder including, without limitation, the right to approve any amendment, modification or waiver of any provision of this Agreement; provided, however, such Lender may agree with the Participant that it will not, without the consent of the Participant, agree to (i) increase, or extend the term or extend the time or waive any requirement for the reduction or termination of, such Lender’s Commitment, (ii) extend the date fixed for the payment of principal of or interest on the Loans or portions thereof owing to such Lender, (iii) reduce the amount of any such payment of principal, (iv) reduce the rate at which interest is payable thereon or (v) release any Guarantor (except as otherwise permitted under Section 4.3.).  An assignment or other transfer which is not permitted by subsection (d) or (e) below shall be given effect for purposes of this Agreement only to the extent of a participating interest granted in accordance with this subsection (c).  Upon request from the Agent or Borrower, a Lender shall notify the Agent of the sale of any participation hereunder and, if requested by the Agent, certify to the Agent that such participation is permitted hereunder and that the requirements of Section 3.12. (c) have been satisfied.

 

(d) Any Lender may with the prior written consent of the Agent, the Issuing Lender and, so long as no Event of Default exists, with the prior written consent of the Borrower (which consent, in each case, shall not be unreasonably withheld (it being agreed that the Borrower’s withholding of consent to an assignment which would result in (i) the Borrower having to pay amounts under Section 3.12. as a result of the admission of such an Assignee or (ii) the admission of an Assignee which refuses to receive confidential information subject to the confidentiality requirements set forth herein shall in each case be deemed to be reasonable)), assign to one or more Eligible Assignees (each an “Assignee”) all or a portion of its rights and obligations under this Agreement and the Notes (including all or a portion of its Commitments and the Loans owing to such Lender); provided, however, (i) no such consent by the Borrower, the Agent or the Issuing Lender shall be required in the case of any assignment to another Lender or any affiliate of such Lender; (ii) without limiting a full assignment by a Lender, unless the Borrower, the Agent and the Issuing Lender otherwise agree, after giving effect to any partial assignment by a Lender, the Assignee shall hold, and the assigning Lender shall retain, a Commitment, or if the Commitments have been terminated, Loans having an outstanding principal balance, of at least $5,000,000 and integral multiples of $1,000,000 in excess thereof; and (iii) each such assignment and the requisite consents shall be effected by means of an Assignment and Acceptance Agreement.  Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; provided, if the Borrower reasonably requests additional information regarding the proposed assignee, the foregoing time period will be automatically extended until three (3) Business Days after the Borrower receives information regarding the proposed assignee responsive to the Borrower’s request.  Upon execution and delivery of such instrument and payment by such Assignee to such transferor Lender of an amount equal to the purchase price agreed between such transferor Lender and such Assignee, such Assignee shall be a Lender party to this Agreement with respect to the assigned interest as of the effective date of the Assignment and Acceptance Agreement and shall have all the rights and obligations of a Lender with respect to the assigned interest as set forth in such Assignment and Acceptance Agreement, and the transferor Lender shall be released from its obligations hereunder with respect to the assigned interest to a corresponding extent, and no further consent or action by any party shall be required.  Upon the consummation of any assignment pursuant to this subsection, the transferor Lender, the Agent and the Borrower shall make appropriate arrangements so that (i) to the extent requested by the assignee Lender or transferor Lender, new Notes are issued to the Assignee and such transferor Lender, as appropriate and (ii) any Notes held by the assigning Lender are promptly returned to the Borrower for cancellation (and, to the extent not so returned, Borrower shall be entitled to receive a customary indemnity agreement of the type described in Section 2.10(c)(ii)(A) from such assigning Lender).  In connection with any such assignment, the transferor Lender shall pay to the Agent an administrative fee for processing such assignment in the amount of $3,500.  Anything in this Section to the contrary notwithstanding, no Lender may assign or participate any interest in its Commitment or any Loan held by it hereunder to the Borrower or any Subsidiary or Affiliate of the Borrower.

 

 

 

  

  

  

 

(e) The Agent shall maintain at the Principal Office a copy of each Assignment and Acceptance Agreement delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of each Lender from time to time (the “Register”).  The Agent shall give each Lender and the Borrower notice of the assignment by any Lender of its rights as contemplated by this Section.  The Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement.  The Register and copies of each Assignment and Acceptance Agreement shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice to the Agent.  Upon its receipt of an Assignment and Acceptance Agreement executed by an assigning Lender, together with each Note subject to such assignment, the Agent shall, if such Assignment and Acceptance Agreement has been completed and if the Agent receives the processing and recording fee described in subsection (d) above, (i) accept such Assignment and Acceptance Agreement, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Borrower.

 

(f) In addition to the assignments and participations permitted under the foregoing provisions of this Section, any Lender may assign and pledge all or any portion of its Loans and its Notes to any Federal Reserve Bank as collateral security pursuant to Regulation A and any Operating Circular issued by such Federal Reserve Bank, and such Loans and Notes shall be fully transferable as provided therein.  No such assignment shall release the assigning Lender from its obligations hereunder.

 

(g) A Lender may furnish any information concerning the Borrower, any other Loan Party or any of their respective Subsidiaries in the possession of such Lender from time to time to Assignees and Participants (including prospective Assignees and Participants) subject to compliance with Section 13.8.

 

(h) Anything in this Section to the contrary notwithstanding, no Lender may assign or participate any interest in any Loan held by it hereunder to the Borrower, any other Loan Party or any of their respective Affiliates or Subsidiaries.

 

(i) Each Lender agrees that, without the prior written consent of the Borrower and the Agent, it will not make any assignment hereunder in any manner or under any circumstances that would require registration or qualification of, or filings in respect of, any Loan or Note under the Securities Act or any other securities laws of the United States of America or of any other jurisdiction.

 

(j) In connection with any assignment of rights and obligations of any Defaulting Lender, 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 actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender to each of which the applicable assignee and assignor hereby irrevocably consent), to (i) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent or any Lender (including Swingline Lender) hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and in Swingline Loans in accordance with its Commitment 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.

 

	
Section 13.6.  

	
Amendments.

 

(a) Except as otherwise expressly provided in this Agreement, any consent or approval required or permitted by this Agreement or any other Loan Document to be given by the Lenders may be given, and any term of this Agreement or of any other Loan Document may be amended, and the performance or observance by the Borrower or any other Loan Party or any Subsidiary of any terms of this Agreement or such other Loan Document or the continuance of any Default or Event of Default may be waived (either generally or in a particular instance and either retroactively or prospectively) with, but only with, the written consent of the Requisite Lenders (and, in the case of an amendment to any Loan Document, the written consent of each Loan Party a party thereto).

 

 

  

  

  

 

 

(b) Notwithstanding the foregoing, without the prior written consent of each Lender directly and adversely affected thereby, no amendment, waiver or consent shall do any of the following:

 

(i) increase the Commitments of the Lenders (except for any increase in the Commitments effectuated pursuant to Section 2.15.) (which action shall be deemed only to affect those Lenders whose Commitments are increased);

 

(ii) reduce the principal of, or interest rates (other than interest or fees at the Post Default Rate) that have accrued or that will be charged on the outstanding principal amount of, any Loans or other Obligations (it being understood and agreed that any amendment or modification to the financial definitions or any changes in the calculation of the Leverage Ratio in this Agreement shall not constitute a reduction in any rate of interest for purposes of this clause (ii) of this Section 13.6.(b));

 

(iii) reduce the amount of any Fees payable hereunder or postpone any date fixed for payment thereof (it being understood and agreed that any amendment or modification to the financial definitions or any changes in the calculation of the Leverage Ratio in this Agreement shall not constitute a reduction in any Fees for purposes of this clause (iii) of this Section 13.6.(b));

 

(iv) modify the definition of the term “Termination Date” (except as contemplated under Section 2.12.) or otherwise postpone any date fixed for any payment of any principal of, or interest on, any Loans or any other Obligations (including the waiver of any Default or Event of Default as a result of the nonpayment of any such Obligations as and when due), or extend the expiration date of any Letter of Credit beyond the Termination Date (except as permitted under Section 2.3.(b)) (which action shall be deemed only to affect those Lenders the Termination Date of whose Commitments or such other date for payment are postponed or extended);

 

(v) amend or otherwise modify the provisions of Section 3.2.;

 

(vi) modify the definition of the term “Requisite Lenders” or otherwise modify in any other manner that reduces the number or percentage of the Lenders required to make any determinations or waive any rights hereunder or to modify any provision hereof, including without limitation, any modification of this Section 13.6. if such modification would have such effect;

 

(vii) release any Guarantor from the Guaranty other than as provided in Section 4.3. and Section 10.6(f). in connection with the release of an Unencumbered Pool Property; or

 

(viii) amend or otherwise modify the provisions of Section 2.14.

 

 

  

  

  

 

Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders, except that (x) the Commitment of any Defaulting Lender may not be increased without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender.

 

(a) No amendment, waiver or consent, unless in writing and signed by the Agent, in such capacity, in addition to the Lenders required hereinabove to take such action, shall affect the rights or duties of the Agent under this Agreement or any of the other Loan Documents.  Any amendment, waiver or consent relating to Section 2.3. or the obligations of the Issuing Lender under this Agreement or any other Loan Document shall, in addition to the Lenders required hereinabove to take such action, require the written consent of the Issuing Lender. Any amendment, waiver or consent relating to Section 2.2. or the obligations of the Swingline Lender under this Agreement or any other Loan Document shall, in addition to the Lenders required hereinabove to take such action, require the written consent of the Swingline Lender.

 

(b) No waiver shall extend to or affect any obligation not expressly waived or impair any right consequent thereon and any amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose set forth therein.  Except as otherwise provided in Section 12.5., no course of dealing or delay or omission on the part of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto.  Any Default or Event of Default occurring hereunder shall continue to exist until such time as such Default or Event of Default is waived in writing in accordance with the terms of this Section, notwithstanding any attempted cure or other action by any Loan Party or any other Person subsequent to the occurrence of such Event of Default.  Except as otherwise explicitly provided for herein or in any other Loan Document, no notice to or demand upon any Loan Party shall entitle such Loan Party to any other or further notice or demand in similar or other circumstances.

 

	
Section 13.7.  

	
Nonliability of Agent and Lenders.

 

The relationship between the Borrower and the Lenders and the Agent shall be solely that of borrower and lender.  Neither the Agent nor any Lender shall have any fiduciary responsibilities to the Borrower or the Parent and no provision in this Agreement or in any of the other Loan Documents, and no course of dealing between or among any of the parties hereto, shall be deemed to create any fiduciary duty owing by the Agent or any Lender to any Lender, the Borrower, any Subsidiary or any other Loan Party.  Neither the Agent nor any Lender undertakes any responsibility to the Borrower or the Parent to review or inform the Borrower or the Parent of any matter in connection with any phase of the business or operations of the Borrower or the Parent.

 

	
Section 13.8.  

	
Confidentiality.

 

The Agent and each Lender shall use reasonable efforts to assure that information about Borrower, the other Loan Parties and other Subsidiaries, and the Properties thereof and their operations, affairs and financial condition, not generally disclosed to the public, which is furnished to the Agent or any Lender pursuant to the provisions of this Agreement or any other Loan Document, is used only for the purposes of this Agreement and the other Loan Documents and shall not be divulged to any Person other than the Agent, the Lenders, and their respective agents who are actively and directly participating in the evaluation, administration or enforcement of the Loan Documents and other transactions between the Agent or such Lender, as applicable, and the Borrower, but in any event the Agent and the Lenders may make disclosure:  (a) to any of their respective affiliates (provided they shall agree to keep such information confidential in accordance with the terms of this Section 13.8.); (b) as reasonably requested by any potential Assignee, Participant or other transferee in connection with the contemplated transfer of any Commitment or participations therein as permitted hereunder (provided they shall agree to keep such information confidential in accordance with the terms of this Section); (c) as required or requested by any Governmental Authority or representative thereof or pursuant to legal process or in connection with any legal proceedings; (d) to the Agent’s or such Lender’s independent auditors and other professional advisors (provided they shall be notified of the confidential nature of the information); (e) after the happening and during the continuance of an Event of Default, to any other Person, in connection with the exercise by the Agent or the Lenders of rights hereunder or under any of the other Loan Documents; (f) upon Borrower’s prior consent (which consent shall not be unreasonably withheld), to any contractual counter-parties to any swap or similar hedging agreement or to any rating agency; and (g) 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 Agent or any Lender on a nonconfidential basis from a source other than the Borrower or any Affiliate.

 

 

  

  

  

 

 

	
Section 13.9.  

	
Indemnification.

 

(a) The Borrower shall and hereby agrees to indemnify, defend and hold harmless the Agent, each of the Lenders, any affiliate of the Agent or any Lender, and their respective directors, officers, shareholders, agents, employees and counsel (each referred to herein as an “Indemnified Party”) from and against any and all of the following (collectively, the “Indemnified Costs”):  losses, costs, claims, damages, liabilities, deficiencies, judgments or reasonable expenses of every kind and nature (including, without limitation, amounts paid in settlement, court costs and the reasonable fees and disbursements of counsel incurred in connection with any litigation, investigation, claim or proceeding or any advice rendered in connection therewith, but excluding losses, costs, claims, damages, liabilities, deficiencies, judgments or expenses indemnification in respect of which is specifically covered by Section 3.12. or 5.1. or expressly excluded from the coverage of such Sections 3.12. or 5.1.) incurred by an Indemnified Party in connection with, arising out of, or by reason of, any suit, cause of action, claim, arbitration, investigation or settlement, consent decree or other proceeding (the foregoing referred to herein as an “Indemnity Proceeding”) which is in any way related directly or indirectly to:  (i) this Agreement or any other Loan Document or the transactions contemplated thereby; (ii) the making of any Loans or issuance of Letters of Credit hereunder; (iii) any actual or proposed use by the Borrower of the proceeds of the Loans or Letters of Credit; (iv) the Agent’s or any Lender’s entering into this Agreement; (v) the fact that the Agent and the Lenders have established the credit facility evidenced hereby in favor of the Borrower; (vi) the fact that the Agent and the Lenders are creditors of the Borrower and have or are alleged to have information regarding the financial condition, strategic plans or business operations of the Parent, the Borrower and the Subsidiaries; (vii) the fact that the Agent and the Lenders are material creditors of the Borrower and are alleged to influence directly or indirectly the business decisions or affairs of the Parent, the Borrower and the Subsidiaries or their financial condition; (viii) the exercise of any right or remedy the Agent or the Lenders may have under this Agreement or the other Loan Documents; or (ix) any violation or non compliance by the Parent, the Borrower or any Subsidiary of any Applicable Law (including any Environmental Law) including, but not limited to, any Indemnity Proceeding commenced by (A) the Internal Revenue Service or state taxing authority or (B) any Governmental Authority or other Person under any Environmental Law, including any Indemnity Proceeding commenced by a Governmental Authority or other Person seeking remedial or other action to cause the Borrower or its Subsidiaries (or its respective properties) (or the Agent and/or the Lenders as successors to the Borrower) to be in compliance with such Environmental Laws; provided, however, that the Borrower shall not be obligated to indemnify any Indemnified Party for (A) any acts or omissions of such Indemnified Party in connection with matters described in this subsection to the extent arising from the gross negligence or willful misconduct of such Indemnified Party, as determined by a court of competent jurisdiction in a final, non-appealable judgment or (B) Indemnified Costs to the extent arising directly out of or resulting directly from claims of one or more Indemnified Parties against another Indemnified Party.

 

 

 

  

  

  

 

(b) The Borrower’s indemnification obligations under this Section 13.9. shall apply to all Indemnity Proceedings arising out of, or related to, the foregoing whether or not an Indemnified Party is a named party in such Indemnity Proceeding.  In this regard, this indemnification shall cover all Indemnified Costs of any Indemnified Party in connection with any deposition of any Indemnified Party or compliance with any subpoena (including any subpoena requesting the production of documents).  This indemnification shall, among other things, apply to any Indemnity Proceeding commenced by other creditors of the Borrower or any Subsidiary, any shareholder of the Borrower or any Subsidiary (whether such shareholder(s) are prosecuting such Indemnity Proceeding in their individual capacity or derivatively on behalf of the Borrower), any account debtor of the Borrower or any Subsidiary or by any Governmental Authority. If indemnification is to be sought hereunder by an Indemnified Party, then such Indemnified Party shall notify the Borrower of the commencement of any Indemnity Proceeding; provided, however, that the failure to so notify the Borrower shall not relieve the Borrower from any liability that it may have to such Indemnified Party pursuant to this Section 13.9.

 

(c) This indemnification shall apply to any Indemnity Proceeding arising during the pendency of any bankruptcy proceeding filed by or against the Borrower and/or any Subsidiary.

 

(d) All out of pocket fees and expenses of, and all amounts paid to third persons by, an Indemnified Party shall be advanced by the Borrower at the request of such Indemnified Party notwithstanding any claim or assertion by the Borrower that such Indemnified Party is not entitled to indemnification hereunder, upon receipt of an undertaking by such Indemnified Party that such Indemnified Party will reimburse the Borrower if it is actually and finally determined by a court of competent jurisdiction that such Indemnified Party is not so entitled to indemnification hereunder.

 

(e) An Indemnified Party may conduct its own investigation and defense of, and may formulate its own strategy with respect to, any Indemnity Proceeding covered by this Section and, as provided above, all Indemnified Costs incurred by such Indemnified Party shall be reimbursed by the Borrower.  No action taken by legal counsel chosen by an Indemnified Party in investigating or defending against any such Indemnity Proceeding shall vitiate or in any way impair the obligations and duties of the Borrower hereunder to indemnify and hold harmless each such Indemnified Party; provided, however, that if (i) the Borrower is required to indemnify an Indemnified Party pursuant hereto and (ii) the Borrower has provided evidence reasonably satisfactory to such Indemnified Party that the Borrower has the financial wherewithal to reimburse such Indemnified Party for any amount paid by such Indemnified Party with respect to such Indemnity Proceeding, such Indemnified Party shall not settle or compromise any such Indemnity Proceeding without the prior written consent of the Borrower (which consent shall not be unreasonably withheld or delayed). Notwithstanding the foregoing, an Indemnified Party may settle or compromise any such Indemnity Proceeding without the prior written consent of the Borrower where (x) no monetary relief is sought against such Indemnified Party in such Indemnity Proceeding or (y) there is an allegation of a violation of law by such Indemnified Party.

 

(f) If and to the extent that the obligations of the Borrower under this Section are unenforceable for any reason, the Borrower hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under Applicable Law.

 

 

  

  

  

 

 

(g) The Borrower’s obligations under this Section shall survive any termination of this Agreement and the other Loan Documents and the payment in full in cash of the Obligations, and are in addition to, and not in substitution of, any other of their obligations set forth in this Agreement or any other Loan Document to which it is a party.

 

	
Section 13.10.  

	
Termination; Survival.

 

At such time as (a) all of the Commitments have been terminated, (b) all Letters of Credit have terminated, (c) none of the Lenders nor the Swingline Lender is obligated any longer under this Agreement to make any Loans or issue any Letter of Credit and (d) all Obligations (other than obligations which survive as provided in the following sentence) have been paid and satisfied in full, this Agreement shall terminate.  The indemnities to which the Agent, the Lenders and the Swingline Lender are entitled under the provisions of Sections 3.12., 5.1., 5.4., 12.8., 13.2. and 13.9. and any other provision of this Agreement and the other Loan Documents, and the provisions of Section 13.4., shall continue in full force and effect and shall protect the Agent, the Lenders and the Swingline Lender (i) notwithstanding any termination of this Agreement, or of the other Loan Documents, against events arising after such termination as well as before and (ii) at all times after any such party ceases to be a party to this Agreement with respect to all matters and events existing on or prior to the date such party ceased to be a party to this Agreement.

 

	
Section 13.11.  

	
Severability of Provisions.

 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions or affecting the validity or enforceability of such provision in any other jurisdiction.

 

	
Section 13.12.  

	
GOVERNING LAW.

 

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

 

 

 

  

  

  

 

	
Section 13.13.  

	
Patriot Act.

 

The Lenders and the Agent each hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), it is required to obtain, verify and record information that identifies the Borrower and the other Loan Parties, which information includes the name and address of the Borrower and the other Loan Parties and other information that will allow such Lender or the Agent, as applicable, to identify the Borrower and the other Loan Parties in accordance with the such Act.

 

	
Section 13.14.  

	
Counterparts.

 

This Agreement and any amendments, waivers, consents or supplements may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument.

 

	
Section 13.15.  

	
Obligations with Respect to Loan Parties.

 

The obligations of the Parent or the Borrower to direct or prohibit the taking of certain actions by the other Loan Parties as specified herein shall be absolute and not subject to any defense the Parent or the Borrower may have that the Parent or the Borrower does not control such Loan Parties.

 

	
Section 13.16.  

	
Limitation of Liability.

 

Neither the Agent nor any Lender, nor any affiliate, officer, director, employee, attorney, or agent of the Agent or any Lender shall have any liability with respect to, and each of the Parent and the Borrower hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by the Parent or the Borrower in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or any of the other Loan Documents.  Each of the Parent and the Borrower hereby waives, releases, and agrees not to sue the Agent or any Lender or any of the Agent’s or any Lender’s affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or financed hereby.

 

	
Section 13.17.  

	
Entire Agreement.

 

This Agreement, the Notes, and the other Loan Documents referred to herein embody the final, entire agreement among the parties hereto and supersede any and all prior commitments, agreements, representations, and understandings, whether written or oral, relating to the subject matter hereof and thereof and may not be contradicted or varied by evidence of prior, contemporaneous, or subsequent oral agreements or discussions of the parties hereto.  There are no oral agreements among the parties hereto.

 

 

 

  

  

  

 

	
Section 13.18.  

	
Construction.

 

The Parent, the Borrower, the Agent and each Lender acknowledge that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review this Agreement and the other Loan Documents with its legal counsel and that this Agreement and the other Loan Documents shall be construed as if jointly drafted by the Parent, the Borrower, the Agent and each Lender.

 

[Signatures on Following Pages]

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

February ___, 2013 with Kite Realty Group, L.P.]

 

 

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

 

KITE REALTY GROUP, L.P.

 

	
  

	
By:

	
Kite Realty Group Trust, its sole General Partner

 

By:             /s/ Daniel R. Sink                                                   

Name:       Daniel R. Sink

Title:         Executive Vice President and Chief Financial Officer

 

 

KITE REALTY GROUP TRUST

 

	
By:

	/s/ Daniel R. Sink

	
  

	
Name:

	
Daniel R. Sink

	
  

	
Title:

	
Executive Vice President and Chief Financial Officer

 

 

[Signatures Continued on Next Page]

 

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

 

February ___, 2013 with Kite Realty Group, L.P.]

 

KEYBANK NATIONAL ASSOCIATION, as Administrative Agent, as a Lender and as Swingline Lender

 

By:       /s/ James Komperda                                                                       

Name:  James Komperda                                                                        

Title:    Vice President                                                                       

 

 

Commitment Amount:

 

$35,000,000.00

 

Lending Office (all Types of Loans):

 

KeyBank National Association

KeyBank Real Estate Capital

1200 Abernathy Road, N.E., Suite 1550

Atlanta, Georgia  30328

Attn:  James Komperda

Telephone:  (770) 510-2160

Telecopy: (770) 510-2195

 

 

[Signatures Continued on Next Page]

 

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

 

February ___, 2013 with Kite Realty Group, L.P.]

 

BANK OF AMERICA, N.A., As Syndication Agent and as a Lender

 

By:          /s/ Anne Q. Kruer                                                                 

Name:     Anne Q. Kruer                                                                

Title:       Vice President                                                                    

 

 

Commitment Amount:

 

$35,000,000.00

 

Lending Office (all Types of Loans):

 

Bank of America, N.A. 

30 S. Meridian Street, Suite 800

Indianapolis, Indian 46204

Attn:  Anne Q. Kruer

Telephone:  (317) 612-6644

Telecopy:  (317) 612-6643

 

 

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

 

February ___, 2013 with Kite Realty Group, L.P.]

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, successor to Wachovia Bank, National Association, as Co-Documentation Agent and as a Lender

 

 

By:         /s/ Winita Lau                                                                         

Name:    Winita Lau

Title:      Vice President

 

 

Commitment Amount:

 

$25,000,000.00

 

Lending Office (all Types of Loans):

 

Wells Fargo Bank, National Association

123 North Wacker Drive, Suite 1900

Chicago, Illinois 60606

Attn:  Gail L. Duran

Telephone:  (312) 345-1923

Telecopy:  (312) 782-0969

 

 

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

 

February ___, 2013 2013 with Kite Realty Group, L.P.]

 

JPMORGAN CHASE BANK, N.A.

 

By:          /s/ Elizabeth Johnson                                                            

Name:     Elizabeth Johnson

Title:       Senior Credit Bank

 

Commitment Amount:

 

$25,000,000.00

 

Lending Office (all Types of Loans):

 

JPMorgan Chase Bank, N.A.

10 S. Dearborn, 7th Floor, IL 1-0010

Chicago, Illinois 60603

Attn: Yvonne Dixon

Telephone: (312) 385-7030

Telecopy:  (312) 385-7101

 

 

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

 

February ___, 2013 with Kite Realty Group, L.P.]

 

RAYMOND JAMES BANK, N.A. (f/k/a Raymond James Bank, FSB)

 

By:          /s/ James M. Armstrong                                                                 

 

Name:    James M. Armstrong 

 

Title:      Senior Vice President

 

 

Commitment Amount:

 

$20,000,000.00

 

Lending Office (all Types of Loans):

 

Raymond James Bank, FSB

710 Carillon Parkway

St. Petersburg, Florida 33716

Attn:  James Armstrong

Telephone:  (727) 567-1720

Telecopy:  (886) 597-4002

 

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

 

February ___, 2013  with Kite Realty Group, L.P.]

 

CITIBANK, N.A.

 

By:         /s/ John C. Rowland                                                                  

 

Name:    John C. Rowland

 

Title:      Vice President

 

Commitment Amount:

 

$20,000,000.00

 

Lending Office (all Types of Loans):

 

Citibank, N.A.

 

388 Greenwich Street 23rd Floor

New York, New York 10013

Attn:  John C. Rowland

Telephone:  (212) 816-4947

Telecopy:  (646) 838-9234

 

 

 

 

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

 

February ___, 2013 with Kite Realty Group, L.P.]

 

U.S. BANK NATIONAL ASSOCIATION, as Co-Documentation Agent and as a Lender

 

By:         /s/ Renee Lewis                                                                  

Name:    Renee Lewis

Title:      Senior Vice President

 

 

Commitment Amount:

 

$25,000,000.00

 

Lending Office (all Types of Loans):

 

US BANK NATIONAL ASSOCIATION

209 South LaSalle Street, Suite 210

Chicago, Illinois 60604

Attn:  Renee Lewis

Telephone:  (312) 325-8877

Telecopy:  (312) 325-8852

 

 

 

  

  

  

[Signature Page to Third Amended and Restated Credit Agreement dated as of

 

February ___, 2013 with Kite Realty Group, L.P.]

 

THE HUNTINGTON NATIONAL BANK

 

By:          /s/ Arthur N. DePompei                                                                 

Name:     Arthur N. DePompei                                                                      

Title:       Vice President                                                                   

 

 

Commitment Amount:

 

$15,000,000.00

 

Lending Office (all Types of Loans):

 

The Huntington National Bank

200 Public Square, Mail Code: CM-17

Cleveland, Ohio  44114

Attn:  Michael Rumler

Telephone:  (216) 515-6902

Telecopy:    (877) 824-9123

 

 

 

 

 

  

  

  

SCHEDULE 1.1(A)

 

List of Loan Parties

 

	  	
Name of Loan Party

	
State of Formation

	
1. 

 

	
Kite Realty Group Trust

	
Maryland

	
2. 

 

	
Kite Realty Group, L.P.

	
Delaware

	
3. 

 

	
82 & Otty, LLC

	
Indiana

	
4. 

 

	
Brentwood Land Partners, LLC

	
Delaware

	
5. 

 

	
Corner Associates, LP

	
Indiana

	
6. 

 

	
Eagle Plaza II, LLC

	
Indiana

	
7. 

 

	
Glendale Centre, L.L.C.

	
Indiana

	
8. 

 

	
Kite Eagle Creek, LLC

	
Indiana

	
9. 

 

	
Kite Greyhound III, LLC

	
Indiana

	
10. 

 

	
Kite Greyhound, LLC

	
Indiana

	
11. 

 

	
Kite King’s Lake, LLC

	
Indiana

	
12. 

 

	
Kite Realty Eddy Street Land, LLC

	
Indiana

	
13. 

 

	
Kite Realty New Hill Place, LLC

	
Indiana

	
14. 

 

	
Kite Realty Peakway at 55, LLC

	
Indiana

	
15. 

 

	
Kite Washington Parking, LLC

	
Indiana

	
16. 

 

	
Kite West 86th Street II, LLC

	
Indiana

	
17. 

 

	
KRG Bolton Plaza, LLC

	
Indiana

	
18. 

 

	
KRG Cedar Hill Plaza, LP

	
Delaware

	
19. 

 

	
KRG Cedar Hill Village, LP

	
Indiana

	
20. 

 

	
KRG College I, LLC

	
Indiana

	
21. 

 

	
KRG College, LLC

	
Indiana

	
22. 

 

	
KRG Cool Creek Outlots, LLC

	
Indiana

	
23. 

 

	
KRG Courthouse Shadows, LLC

	
Delaware

	
24. 

 

	
KRG Cove Center, LLC

	
Indiana

	
25. 

 

	
KRG CREC/KS Pembroke Pines, LLC

	
Florida

	
26. 

 

	
KRG Eagle Creek III, LLC

	
Indiana

 

 

 

 

 

 

 

	
27. 

 

	
KRG Eagle Creek IV, LLC

	
Indiana

	
28. 

 

	
KRG Eddy Street FS Hotel, LLC

	
Indiana

	
29. 

 

	
KRG Estero, LLC

	
Indiana

	
30. 

 

	
KRG Fox Lake Crossing, LLC

	
Delaware

	
31. 

 

	
KRG Gainesville, LLC

	
Indiana

	
32. 

 

	
KRG ISS LH OUTLOT, LLC

	
Indiana

	
33. 

 

	
KRG Lithia, LLC

	
Indiana

	
34. 

 

	
KRG Market Street Village, LP

	
Indiana

	
35. 

 

	
KRG New Hill Place, LLC

	
Indiana

	
36. 

 

	
KRG Oleander, LLC

	
Indiana

	
37. 

 

	
KRG Panola II, LLC

	
Indiana

	
38. 

 

	
KRG Peakway at 55, LLC

	
Indiana

	
39. 

 

	
KRG Pipeline Pointe, LP

	
Indiana

	
40. 

 

	
KRG Plaza Green, LLC

	
Indiana

	
41. 

 

	
KRG Rivers Edge II, LLC

	
Indiana

	
42. 

 

	
KRG Rivers Edge, LLC

	
Indiana

	
43. 

 

	
KRG San Antonio, LP

	
Indiana

	
44. 

 

	
KRG Sunland II, LP

	
Indiana

	
45. 

 

	
KRG Waterford Lakes, LLC

	
Indiana

	
46. 

 

	
KRG Woodruff Greenville, LLC

	
Indiana

	
47. 

 

	
Noblesville Partners, LLC

	
Indiana

 

 

  

  

  

SCHEDULE 2.3(a)

 

List of Existing Letters of Credit

 

 

	 Alias   	 Current Amount	 Expiration Date
	#S312507	 $231,768.00	 January 20, 2014
	 #S313079	 $1,632,000	 November 30, 2013

 

 

 

 

  

  

  

SCHEDULE 4.1.

 

Unencumbered Pool Properties

 

 

	
Entity Name

	
EIN

	
State of

Formation

	
Foreign

Qualifications

	
Purpose

	
Loan Type

	
Kite Realty Group Trust

	
11-3715772

	
Maryland

	
IN, WA, FL, OH

	
The publicly-traded parent company

	
N.A.

	
Kite Realty Group, L.P.

	
20-1453863

	
Delaware

	
IN, FL, TX, GA, WA, IL, NJ, OH

	
The “operating partnership”

	
N.A.

	
82 & Otty, LLC

	
20-1453863

	
Indiana

	
Oregon

	
Owns Shops at Otty, Clackamas, OR

	
Unencumbered

	
Brentwood Land Partners, LLC

	
20-1453863

	
Delaware

	
Florida, Indiana

	
Owns Tarpon Bay Plaza, Naples, FL, excluding Chili’s Outlot

	
Unencumbered

	
Corner Associates, LP

	
20-1453863

	
Indiana

	  	
Owns The Corner, Carmel, IN

	
Unencumbered

	
Eagle Plaza II, LLC

	
20-1453863

	
Indiana

	  	
Owns Red Bank Commons, Evansville, IN

	
Unencumbered

	
Glendale Centre, L.L.C.

	
20-1453863

	
Indiana

	  	
Owns Glendale Town Center, Indianapolis, IN, excluding Keystone Avenue Outlots

	
Unencumbered

	
Kite Eagle Creek, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Shops at Eagle Creek, Naples, FL

	
Unencumbered

	
Kite Greyhound III, LLC

	
20-1453863

	
Indiana

	  	
Owns development land at Greyhound Commons, Carmel, IN, excluding Regions Bank outlot

	
Unencumbered

	
Kite Greyhound, LLC

	
20-1453863

	
Indiana

	  	
Owns Greyhound Commons, Carmel, IN

	
Unencumbered

	
Kite King’s Lake, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns King’s Lake Square, Naples, FL

	
Unencumbered

	
Kite Realty Eddy Street Land, LLC

	
20-1495369

	
Indiana

	  	
Owns real estate in South Bend, IN which will be developed for residential purposes to be sold

	
Unencumbered

	
Kite Realty New Hill Place, LLC

	
20-1495369

	
Indiana

	
North Carolina

	
Owns residential development property in Holly Springs, NC

	
Unencumbered

	
Kite Realty Peakway at 55, LLC

	
20-1495369

	
Indiana

	
North Carolina

	
Owns acreage in Apex, NC

	
Unencumbered

	
Kite Washington Parking, LLC

	
20-1453863

	
Indiana

	  	
Owns Union Station Garage, Indianapolis, IN

	
Unencumbered

	
Kite West 86th Street II, LLC

	
20-1453863

	
Indiana

	  	
Owns Traders Point II, Indianapolis, IN,excluding Bank Outlot

	
Unencumbered

	
KRG Bolton Plaza, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Bolton Plaza, Orange Park, FL

	
Unencumbered

	
KRG Cedar Hill Plaza, LP

	
20-1453863

	
Delaware

	
Texas

	
Owns Plaza at Cedar Hill, Cedar Hill, TX

	
Unencumbered

	
KRG Cedar Hill Village, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns Cedar Hill Village, Cedar Hill, TX

	
Unencumbered

	
KRG College I, LLC

	
20-1453863

	
Indiana

	  	
Owns portion of 54th & College, Indianapolis, IN (Fresh Market)

	
Unencumbered

	
KRG College, LLC

	
20-1453863

	
Indiana

	  	
Owns portion of 54th & College, Indianapolis, IN (Fresh Market)

	
Unencumbered

	
KRG Cool Creek Outlots, LLC

	
20-1453863

	
Indiana

	  	
Owns one (1) outlot at Cool Creek Commons

	
Unencumbered

 

 

  

  

  

 

	
KRG Courthouse Shadows, LLC

	
20-1453863

	
Delaware

	
Florida

	
Owns Courthouse Shadows Shopping Center, Naples, FL

	
Unencumbered

	
KRG Cove Center, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Cove Center, Stuart, FL

	
Unencumbered

	
KRG CREC/KS Pembroke Pines, LLC

	
20-3462730

	
Florida

	  	
Owns Cobblestone Plaza, Pembroke Pines, FL

	
Unencumbered

	
KRG Eagle Creek III, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns parcel at Eagle Creek, Naples, FL leased to Dunkin Donuts

	
Unencumbered

	
KRG Eagle Creek IV, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Pad 5 (outlot) at Eagle Creek, Naples, FL

	
Unencumbered

	
KRG Eddy Street FS Hotel, LLC

	
20-1453863

	
Indiana

	  	
Owns land in South Bend, IN to be developed as a full service hotel

	
Unencumbered

	
KRG Estero, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Estero Town Commons, Estero, FL, excluding Regions Bank and Ruby Tuesday Outlots

	
Unencumbered

	
KRG Fox Lake Crossing, LLC

	
20-1453863

	
Delaware

	
Illinois

	
Owns Phase I of Fox Lake Crossing, IL

	  
	
KRG Gainesville, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Wal-Mart Plaza, Gainesville, FL

	
Unencumbered

	
KRG ISS LH OUTLOT, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns outlot (Longhorn) at ISS, Daytona Beach, FL

	
Unencumbered

	
KRG Lithia, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Lithia Crossing, Tampa, Florida

	
Unencumbered

	
KRG Market Street Village, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns Market Street Village shopping center, Hurst, Texas, excluding Chic-fil-A

	
Unencumbered

	
KRG New Hill Place, LLC

	
20-1453863

	
Indiana

	
North Carolina

	
Owns Phase II of Holly Springs Towne Center, in Holly Springs, NC

	
Unencumbered

	
KRG Oleander, LLC

	
20-1453863

	
Indiana

	
North Carolina

	
Owns Oleander Place, Wilmington, NC

	
Unencumbered

	
KRG Panola II, LLC

	
20-1453863

	
Indiana

	
Georgia

	
Owns small shop building adjacent to Publix at Panola, Lithonia, GA

	
Unencumbered

	
KRG Peakway at 55, LLC

	
20-1453863

	
Indiana

	
North Carolina

	
Owns portions of Broadstone Station, Apex, NC

	
Unencumbered

	
KRG Pipeline Pointe, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns "B" Shops with 4 Tenants, Hurst, TX adjacent to Market Street Village

	
Unencumbered

	
KRG Plaza Green, LLC

	
20-1453863

	
Indiana

	
South Carolina

	
Owns Plaza Green, Greenville, South Carolina

	
Unencumbered

	
KRG Rivers Edge II, LLC

	
20-1453863

	
Indiana

	  	
Owns development property adjacent to Shops at Rivers Edge, Indianapolis, IN leased to BGI

	
Unencumbered

	
KRG Rivers Edge, LLC

	
20-1453863

	
Indiana

	  	
Owns Shops at Rivers Edge, Indianapolis, IN

	
Unencumbered

	
KRG San Antonio, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns Burlington Coat, San Antonio, TX

	
Unencumbered

	
KRG Sunland II, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns a portion of Sunland Towne Centre, El Paso, TX

	
Unencumbered

	
KRG Waterford Lakes, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Waterford Lakes Village, Orlando, FL

	
Unencumbered

	
KRG Woodruff Greenville, LLC

	
20-1453863

	
Indiana

	
South Carolina

	
Owns Publix at Greenville, South Carolina

	
Unencumbered

	
Noblesville Partners, LLC

	
20-1453863

	
Indiana

	  	
Owns Stoney Creek Commons, Noblesville, IN

	
Unencumbered

 

 

 

  

  

  

SCHEDULE 7.1.(b)

 

Ownership Structure

 

 

Part I: Subsidiaries

 

	
Entity Name

	
EIN

	
State of Formation

	
Foreign

Qualifications

	
Purpose

	
Ownership Structure

	
116 & Olio, LLC

	
20-1453863

	
Indiana

	  	
Owns Geist Pavilion, Fishers, IN

	
Wholly owned subsidiary of KRG Geist Management, LLC

	
50th & 12th, LLC

	
20-1453863

	
Indiana

	
Washington

	
Owns 50th & 12th Walgreens, Seattle, WA

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
82 & Otty, LLC

	
20-1453863

	
Indiana

	
Oregon

	
Owns Shops at Otty, Clackamas, OR

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Brentwood Land Partners, LLC

	
20-1453863

	
Delaware

	
Florida

Indiana

	
Owns Tarpon Bay Plaza, Naples, FL, excluding Chili’s Outlot

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Brentwood Property Owners’ Association, Inc.

	
14-1865645

	
Florida

	  	
Owners’ Association for Tarpon Bay Plaza, Naples , FL

	
Owners of property in Tarpon Bay Plaza are members

	
Cornelius Adair, LLC

	
20-3026564

	
Indiana

	
Oregon

	
Owns Cornelius Gateway Plaza, Cornelius, OR

	
Wholly owned subsidiary of KRG/KP Northwest 20, LLC

	
Corner Associates, LP

	
20-1453863

	
Indiana

	  	
Owns The Corner, Carmel, IN

	
KRG Corner Associates, LLC is General Partner and Kite Realty Group, L.P. is limited partner

	
Delray Marketplace Master Association, Inc.

	
26-2362110

	
Florida

	  	
Owners’ Association for Delray Marketplace, Delray Beach, FL

	
Owners of property in Delray Marketplace are members

	
Eagle Plaza II, LLC

	
20-1453863

	
Indiana

	  	
Owns Red Bank Commons, Evansville, IN

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Eddy Street Commons at Notre Dame Master Association, Inc.

	
37-1579966

	
Indiana

	  	
Owners’ Association for Eddy Street Commons, South Bend, IN

	
Owners of property in Eddy Street Commons are members

 

 

  

  

  

 

	
Estero Town Commons Property Owners Association, Inc.

	
20-5956355

	
Florida

	  	
Owners’ Association for Estero Town Commons, Estero, FL

	
Owners of property in Estero Town Commons are members

	
Fishers Station Development Company

	
35-1740058

	
Indiana

	  	
Owns Shops at Fishers Station, Fishers, IN

	
KRG Fishers Station II, LLC (a wholly owned subsidiary of Kite Realty Group, L.P.) is the managing partner and holds a 25% interest.  Sunblest Farms, Inc. (a non-related third party) holds a 75% interest and receives a capped cash flow distribution.

	
Glendale Centre, LLC

	
20-1453863

	
Indiana

	  	
Owns Glendale Town Center, Indianapolis, IN, excluding Keystone Avenue Outlots

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
International Speedway Square, Ltd.

	
20-1453863

	
Florida

	  	
Owns International Speedway Square, Daytona Beach, FL, excluding Longhorn and Chili outlots

	
General Partner is KRG Daytona Management II, LLC and Kite Realty Group, L.P. is the limited partner

	
Jefferson Morton, LLC

	
20-1453863

	
Indiana

	  	
Owns undeveloped land adjacent to Walgreens

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Acworth Management, LLC

	
20-1453863

	
Delaware

	
Georgia

	
Managing member of Kite Acworth, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Acworth, LLC

	
20-1453863

	
Indiana

	
Georgia

	
Owns Publix at Acworth, Acworth, GA

	
Kite Realty Group, L.P. owns of 99% interest and KRG Acworth Management, LLC owns 1% interest

	
Kite Coral Springs, LLC

	
20-1453863

	
Indiana

	
Florida

	
Former owner of Coral Springs Plaza in Coral Springs, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Daytona, L.L.C.

	
20-1453863

	
Indiana

	
Florida

	
Former General partner of International Speedway Square, Ltd.

	
Kite Realty Group, L.P. owns 95% interest; and KRG Daytona Management, LLC owns 5% interest

	
Kite Eagle Creek, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Shops at Eagle Creek, Naples, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

 

 

 

  

  

  

 

	
Kite Greyhound III, LLC

	
20-1453863

	
Indiana

	  	
Owns development land at Greyhound Commons, Carmel, IN, excluding Regions Bank outlot

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Greyhound, LLC

	
20-1453863

	
Indiana

	  	
Owns Greyhound Commons, Carmel, IN

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite King’s Lake, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns King’s Lake Square, Naples, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Kokomo Management, LLC

	
20-1453863

	
Delaware

	
Indiana

	
Managing member of KRG Kokomo Project Company, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Kokomo, LLC

	
20-1453863

	
Indiana

	  	
Owns Boulevard Crossing, Kokomo, IN; leased to KRG Kokomo Project Company, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite McCarty State, LLC

	
20-1453863

	
Indiana

	  	
Former owner of Indiana State Motor Pool, Indianapolis, IN

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite New Jersey, LLC

	
20-1453863

	
Delaware

	
New Jersey

	
Owns Ridge Plaza, Oak Ridge, NJ

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Pen, LLC

	
20-1453863

	
Indiana

	  	
Former owner of PEN Products, Plainfield, IN

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Realty Advisors, LLC

d/b/a KMI Realty Advisors

	
20-1454180

	
Indiana

	  	
Successor-by-merger to KMI Realty Advisors, Inc.

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Realty Construction, LLC

	
20-1495369

	
Indiana

	
FL, WA, NC

	
Performs third party construction

	
Wholly owned subsidiary of Kite Realty Holding, LLC

	
Kite Realty Development, LLC

	
20-1495369

	
Indiana

	  	
Build-to-suit and joint venture partner

	
Wholly owned subsidiary of Kite Realty Holding, LLC

	
Kite Realty Eddy Street Garage, LLC

	
20-1495369

	
Indiana

	  	
Owns interest in real estate in South Bend, IN which has been developed for a garage

	
Wholly owned subsidiary of Kite Realty Holding, LLC

 

 

  

  

  

 

	
Kite Realty Eddy Street Land, LLC

	
20-1495369

	
Indiana

	  	
Owns real estate in South Bend, IN which will be developed for residential purposes to be sold

	
Wholly owned subsidiary of Kite Realty Holding, LLC

	
Kite Realty Group Trust

	
11-3715772

	
Maryland

	
IN, WA, FL, OH

	
The publicly-traded parent company

	
Parent company

	
Kite Realty Group, L.P.

	
20-1453863

	
Delaware

	
IN, FL, TX, GA, WA, IL, NJ, OH

	
The “operating partnership”

	
General partner is Kite Realty Group Trust.  There are a number of limited partners who own partnership units.

	
Kite Realty Holding, LLC

	
20-1495369

	
Indiana

	  	
Taxable REIT Subsidiary

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Realty New Hill Place, LLC

	
20-1495369

	
Indiana

	
North Carolina

	
Owns residential development property in Holly Springs, NC

	
Wholly owned subsidiary of Kite Realty Development, LLC

	
Kite Realty Peakway at 55, LLC

	
20-1495369

	
Indiana

	
North Carolina

	
Owns acreage in Apex, NC

	
Wholly owned subsidiary of Kite Realty Development, LLC

	
Kite Realty South Elgin, LLC

	
20-1495369

	
Indiana

	
Illinois

	
Former owner of South Elgin Commons, South Elgin, IL

	
Wholly owned subsidiary of Kite Realty Development, LLC

	
Kite Realty Washington Parking, LLC

	
20-1495369

	
Indiana

	  	
Leases property from Kite Washington Parking, LLC

	
Wholly owned subsidiary of Kite Realty Holding, LLC

	
Kite Realty/White LS Hotel Operators, LLC

	
27-0671778

	
Indiana

	  	
Formerly operated and managed a limited services hotel, South Bend, IN

	
Kite Realty Holding, LLC owns 50% interest and White ND LS, LLC owns 50% interest

	
Kite San Antonio, LLC

	
20-1453863

	
Indiana

	  	
General partner of KRG San Antonio, LP

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Washington Parking, LLC

	
20-1453863

	
Indiana

	  	
Owns Union Station Garage, Indianapolis, IN

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Kite Washington, LLC

	
20-1453863

	
Indiana

	  	
Owns Thirty South, Indianapolis, IN

	
Kite Realty Group, L.P. owes 99% interest and KRG Washington Management, LLC owns 1% interest

	
Kite West 86th Street II, LLC

	
20-1453863

	
Indiana

	  	
Owns Traders Point II, Indianapolis, IN,

excluding Bank Outlot

	
Wholly owned subsidiary of Kite Realty Group, L.P.

 

 

  

  

  

 

 

	
Kite West 86th Street, LLC

	
20-1453863

	
Indiana

	  	
Owns Traders Point, Indianapolis, IN, excluding Outlots except Macaroni Grill & Chili’s

	
Kite Realty Group, L.P. owns 99% interest and KRG Traders Management, LLC owns 1% interest

	
KRG 951 & 41, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns land at 951 & 41, Naples, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Beacon Hill, LLC

	
20-1453863

	
Indiana

	  	
Member of KRG/I-65 Partners Beacon Hill, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Bolton Plaza, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Bolton Plaza, Orange Park, FL

 

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Bridgewater, LLC

	
20-1453863

	
Indiana

	  	
Owns Bridgewater Marketplace, Westfield, IN, excluding Walgreens and Primrose

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Capital, LLC

	
20-1453863

	
Indiana

	
GA, DE

	
Sole member of KRG Panola I, LLC and KRG Panola II, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Cedar Hill Plaza, LP

	
20-1453863

	
Delaware

	
Texas

	
Owns Plaza at Cedar Hill, Cedar Hill, TX

	
KRG CHP Management is General Partner and Kite Realty Group, L.P. is limited partner

	
KRG Cedar Hill Village, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns Cedar Hill Village, Cedar Hill, TX

	
KRG Texas, LLC is General Partner and Kite Realty Group, L.P. is limited partner

	
KRG Centre, LLC

	
20-1453863

	
Indiana

	  	
Owns Rangeline Crossing, Carmel, IN

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG CHP Management, LLC

	
20-1453863

	
Delaware

	  	
General partner of KRG Cedar Hill Plaza, LP

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG College I, LLC

	
20-1453863

	
Indiana

	  	
Owns portion of 54th & College, Indianapolis, IN (Fresh Market)

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG College, LLC

	
20-1453863

	
Indiana

	  	
Owns portion of 54th & College, Indianapolis, IN (Fresh Market)

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Construction, LLC

	
20-1453863

	
Indiana

	
FL, WA, NC

	
Successor-by-merger to Kite Construction, Inc. Performs construction for REIT properties

	
Wholly owned subsidiary of Kite Realty Group, L.P.

 

 

  

  

  

 

	
KRG Cool Creek Management, LLC

	
20-1453863

	
Indiana

	  	
Managing Member of Westfield One, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Cool Creek Outlots, LLC

	
20-1453863

	
Indiana

	  	
Owns one (1) outlot at Cool Creek Commons

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Corner Associates, LLC

	
20-1453863

	
Indiana

	  	
General partner of Corner Associates, LP

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Courthouse Shadows I, LLC

	
20-1453863

	
Delaware

	  	
Sole Member of KRG Courthouse Shadows, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Courthouse Shadows, LLC

	
20-1453863

	
Delaware

	
Florida

	
Owns Courthouse Shadows Shopping Center, Naples, FL

	
Wholly owned subsidiary of KRG Courthouse Shadows I, LLC

	
KRG Cove Center, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Cove Center, Stuart, FL

	
Wholly-owned subsidiary of Kite Realty Group, L.P.

	
KRG CREC/KS Pembroke Pines, LLC

	
20-3462730

	
Florida

	  	
Owns Cobblestone Plaza, Pembroke Pines, FL

	
Wholly-owned subsidiary of KRG Pembroke Pines, LLC

	
KRG Daytona Management II, LLC

	
20-1453863

	
Delaware

	
Florida

	
General partner of International Speedway Square, Ltd.

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Daytona Management, LLC

	
20-1453863

	
Indiana

	  	
Former Managing member of Kite Daytona, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Daytona Outlot Management, LLC

	
20-1453863

	
Delaware

	
Florida

	
Managing member of KRG ISS, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Delray Beach, LLC

	
20-1453863

	
Indiana

	
Florida

	
Member of KRG/Atlantic Delray Beach, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Development, LLC

d/b/a Kite Development

	
20-1453863

	
Indiana

	
FL, OR

	
Successor-by-merger to Kite Development Corporation

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Eagle Creek III, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns parcel at Eagle Creek, Naples, FL leased to Dunkin Donuts

	
Wholly owned subsidiary of KRG Capital, LLC

	
KRG Eagle Creek IV, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Pad 5 (outlot) at Eagle Creek, Naples, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

 

 

  

  

  

 

 

	
KRG Eastgate Pavilion, LLC

	
20-1453863

	
Indiana

	
Ohio

	
Owns Eastgate Pavilion, Cincinnati, OH

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Eddy Street Apartments, LLC

	
20-1453863

	
Indiana

	  	
Controls apartments portion of KRG Eddy Street Land, LLC

	
KRG Eddy Street Land, LLC owns 99% interest and KRG Eddy Street Land Management, LLC owns 1% interest

	
KRG Eddy Street Commons at Notre Dame Declarant, LLC

	
20-1453863

	
Indiana

	  	
Controls common space of KRG Eddy Street Land, LLC

	
Wholly owned subsidiary of KRG Eddy Street Land, LLC

	
KRG Eddy Street Commons, LLC

	
20-1453863

	
Indiana

	  	
Controls retail portion of KRG Eddy Street Land, LLC

	
KRG Eddy Street Land, LLC owns 99% interest and KRG Eddy Street Land Management, LLC owns 1% interest

	
KRG Eddy Street FS Hotel, LLC

	
20-1453863

	
Indiana

	  	
Owns land in South Bend, IN to be developed as a full service hotel

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Eddy Street Land Management, LLC

	
20-1453863

	
Delaware

	
Indiana

	
Managing member of KRG Eddy Street Land, LLC , KRG Eddy Street Apartments, LLC, KRG Eddy Street Commons, LLC and KRG Eddy Street Office, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Eddy Street Land, LLC

	
20-1453863

	
Indiana

	  	
Owner of or is ground lessee of land in South Bend, IN developed as Eddy Street Commons

	
Kite Realty Group, L.P. owns 99% interest and KRG Eddy Street Land Management, LLC owns 1% interest

	
KRG Eddy Street LS Hotel, LLC

	
20-1453863

	
Indiana

	  	
KRG member of JV that was owner of land in South Bend, IN developed as a limited service hotel

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Eddy Street Office, LLC

	
20-1453863

	
Indiana

	  	
Controls office portion of KRG Eddy Street Land, LLC

	
KRG Eddy Street Land, LLC owns 99% interest and KRG Eddy Street Land Management, LLC owns 1% interest

	
KRG Estero, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Estero Town Commons, Estero, FL, excluding Regions Bank and Ruby Tuesday Outlots

	
Wholly owned subsidiary of Kite Realty Group, L.P.

 

 

  

  

  

 

	
KRG Fishers Station II, LLC

	
20-1453863

	
Indiana

	  	
Partner of Fishers Station Development Company

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Fishers Station, LLC

	
20-1453863

	
Indiana

	  	
Owns Marsh at Fishers Station, Fishers, IN

	
Wholly owned subsidiary of KRG Capital, LLC

	
KRG Four Corner Square, LLC

	
20-1453863

	
Indiana

	
Washington

	
Owns Four Corner Square, Maple Valley, WA

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Fox Lake Crossing II, LLC

	
20-1453863

	
Indiana

	  	
Owns Phase II of Fox Lake Crossing, IL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Fox Lake Crossing, LLC

	
20-1453863

	
Delaware

	
Illinois

	
Owns Phase I of Fox Lake Crossing, IL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Frisco Bridges, LP

	
20-1453863

	
Indiana

	
Texas

	
Former owner of Frisco Bridges, Frisco, TX

	
KRG Texas, LLC is General Partner and Kite Realty Group, L.P. is limited partner

	
KRG Gainesville, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Wal-Mart Plaza, Gainesville, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Geist Management, LLC

	
20-1453863

	
Indiana

	  	
Managing member of 116 & Olio, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Greencastle, LLC

	
20-1453863

	
Indiana

	  	
Owns in part, and ground leases in part, bookstore parcel, Greencastle, IN (DePauw University)

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Hamilton Crossing Management, LLC

	
20-1453863

	
Delaware

	
Indiana

	
Managing member of KRG Hamilton Crossing, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Hamilton Crossing, LLC

	
20-1453863

	
Indiana

	  	
Owns Hamilton Crossing Centre, Carmel, IN

	
Kite Realty Group, L.P. owns 99% interest and KRG Hamilton Crossing Management, LLC owns 1% interest

	
KRG Indian River, LLC

	
20-1453863

	
Delaware

	
Florida

	
Owns Indian River Square, Vero Beach, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG ISS LH OUTLOT, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns outlot (Longhorn) at ISS, Daytona Beach, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

 

 

  

  

  

 

	
KRG ISS, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns outlot (Chili’s) at ISS, Daytona Beach, FL

	
Kite Realty Group, L.P. owns 99% interest and KRG Daytona Outlot Management, LLC owns 1% interest

	
KRG Kedron Management, LLC

	
20-1453863

	
Delaware

	  	
Manager of KRG Kedron Village, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Kedron Village, LLC

	
20-1453863

	
Indiana

	
Georgia

	
Owns Kedron Village, Peachtree City, Georgia

	
Kite Realty Group, L.P. owns 99% interest and KRG Kedron Management, LLC owns 1% interest

	
KRG Kokomo Project Company, LLC

	
20-1453863

	
Indiana

	  	
Master Lessee of Boulevard Crossing, Kokomo, IN

	
Kite Kokomo, LLC owns 99% interest and Kite Kokomo Management, LLC owns 1% interest

	
KRG Lithia, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Lithia Crossing, Tampa, Florida

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Management, LLC

	
20-1453934

	
Indiana

	
Texas

	
Holds related party management agreements.  Main payroll entity

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Market Street Village I, LLC

	
20-1453863

	
Indiana

	
Texas

	
General Partner of KRG Market Street Village, LP

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Market Street Village II, LLC

	
20-1453863

	
Indiana

	  	
Limited Partner of KRG Market Street Village, LP

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Market Street Village, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns Market Street Village shopping center, Hurst, Texas, excluding Chic-fil-A

	
KRG Market Street Village I, LLC is General Partner and KRG Market Street Village II, LLC is limited partner

	
KRG Marysville, LLC

	
20-1453863

	
Indiana

	  	
Managing member of KRG/WLM Marysville, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Naperville Management, LLC

	
20-1453863

	
Delaware

	
IL, IN

	
Managing member of KRG Naperville, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Naperville, LLC

	
20-1453863

	
Indiana

	
Illinois

	
Owns shops and junior boxes, Naperville, IL

	
Kite Realty Group, L.P. owns 99% interest and KRG Naperville Management, LLC owns 1% interest

 

 

  

  

  

 

	
KRG New Hill Place I, LLC

	
20-1453863

	
Indiana

	
North Carolina

	
Owns Phase I of Holly Springs Towne Center, Holly Springs, NC (excluding Target Tract)

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG New Hill Place, LLC

	
20-1453863

	
Indiana

	
North Carolina

	
Owns Phase II of Holly Springs Towne Center, in Holly Springs, NC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Oak and Ford Zionsville, LLC

	
20-1453863

	
Indiana

	  	
Owns property in Zionsville, IN leased to Walgreens

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Oldsmar Management, LLC

	
20-1453863

	
Delaware

	
Florida

	
Manager of KRG Oldsmar Project Company, LLC

	
KRG/PRP Oldsmar, LLC owns 100% interest

	
KRG Oldsmar Project Company, LLC

	
20-3760708

	
Delaware

	
Florida

	
Master Lessee of Bayport Commons, in Oldsmar, FL

	
KRG/PRP Oldsmar, LLC owns 99% interest and KRG Oldsmar Management, LLC owns 1% interest

	
KRG Oldsmar, LLC

	
20-1453863

	
Indiana

	  	
Managing Member of KRG/PRP Oldsmar, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Oleander, LLC

	
20-1453863

	
Indiana

	
North Carolina

	
Owns Oleander Place, Wilmington, NC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Pan Am Plaza, LLC

	
20-1453863

	
Indiana

	  	
Member of KRG/CP Pan Am Plaza, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Panola I, LLC

	
20-1453863

	
Delaware

	
Georgia

	
Owns Publix at The Centre at Panola, Lithonia, GA

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Panola II, LLC

	
20-1453863

	
Indiana

	
Georgia

	
Owns small shop building adjacent to Publix at Panola, Lithonia, GA

	
Wholly owned subsidiary of KRG Capital, LLC

	
KRG Peakway at 55, LLC

	
20-1453863

	
Indiana

	
North Carolina

	
Owns portions of Broadstone Station, Apex, NC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Pembroke Pines, LLC

	
20-1453863

	
Indiana

	  	
Member of KRG CREC/KS Pembroke Pines, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Pine Ridge, LLC

	
20-1453863

	
Delaware

	
Florida

	
Owns Pine Ridge Crossing Shopping Center, Naples, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

 

 

  

  

  

 

	
KRG Pipeline Pointe, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns "B" Shops with 4 Tenants, Hurst, TX adjacent to Market Street Village

	
KRG Texas, LLC is General Partner and Kite Realty Group, L.P. is limited partner

	
KRG Plaza Green, LLC

	
20-1453863

	
Indiana

	
South Carolina

	
Owns Shoppes at Plaza Green, Greenville, South Carolina

	
Kite McCarty State, LLC, owns 50% interest and Preston Commons, LLP, owns 50% interest.

	
KRG Plaza Volente Management, LLC

	
20-1453863

	
Delaware

	  	
General Partner of KRG Plaza Volente, LP

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Plaza Volente, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns Plaza Volente, Austin, TX

	
KRG Plaza Volente Management, LLC is General Partner and Kite Realty Group, L.P. is limited partner

	
KRG PR Ventures, LLC

	
20-1453863

	
Indiana

	  	
KRG Member of Prudential JVs

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Riverchase, LLC

	
20-1453863

	
Delaware

	
Florida

	
Owns Riverchase Plaza Shopping Center, Naples, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Rivers Edge II, LLC

	
20-1453863

	
Indiana

	  	
Owns property adjacent to Shops at Rivers Edge, Indianapolis, IN leased to BGI

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Rivers Edge, LLC

	
20-1453863

	
Indiana

	  	
Owns Shops at Rivers Edge, Indianapolis, IN

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG San Antonio, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns Burlington Coat, San Antonio, TX

	
Kite San Antonio, LLC is General Partner and Kite Realty Group, L.P. is limited partner

	
KRG Sunland II, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns a portion of Sunland Towne Centre, El Paso, TX

	
KRG Texas, LLC is General Partner and Kite Realty Group, L.P. is limited partner

	
KRG Sunland Management, LLC

	
20-1453863

	
Delaware

	
Indiana

	
General partner of KRG Sunland, L.P.

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Sunland, LP

	
20-1453863

	
Indiana

	
Texas

	
Owns Sunland Towne Centre, El Paso, TX

	
KRG Sunland Management, LLC is General Partner and Kite Realty Group, L.P. is limited partner

 

 

  

  

  

 

	
KRG Texas, LLC

	
20-1453863

	
Indiana

	
Texas

	
General partner of  KRG Frisco Bridges, LP; KRG Cedar Hill Village, LP, KRG Sunland II, LP; KRG Pipeline Pointe, LP., and 1% partner of Preston Commons, LLP

	
Wholly owned subsidiary of KRG Capital, LLC

	
KRG Traders Management, LLC

	
20-1453863

	
Delaware

	
Indiana

	
Manager of Kite West 86th Street, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Vero, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns 12th Street Plaza, Vero Beach, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Washington Management, LLC

	
20-1453863

	
Delaware

	
Indiana

	
Managing member of Kite Washington, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Waterford Lakes, LLC

	
20-1453863

	
Indiana

	
Florida

	
Owns Waterford Lakes Village, Orlando, FL

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Whitehall Pike Management, LLC

	
20-1453863

	
Indiana

	  	
Managing member of Whitehall Pike, LLC

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG Woodruff Greenville, LLC

	
20-1453863

	
Indiana

	
South Carolina

	
Owns Publix at Woodruff, South Carolina

	
Kite McCarty State, LLC, owns 50% interest and Kite Pen, LLC, owns 50% interest.

	
KRG Zionsville, LLC

	
20-1453863

	
Indiana

	  	
Former owner of Zionsville Place, Zionsville, IN.

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
KRG/Atlantic Delray Beach, LLC

	
20-3616896

	
Florida

	  	
Owns Delray Marketplace in Delray Beach, FL

	
Joint venture between KRG Delray Beach, LLC (a wholly owned subsidiary of Kite Realty Group, L.P.) and Atlantic TMD, LLC (an unrelated third party)

	
KRG/CP Pan Am

Plaza, LLC

	
26-1918928

	
Indiana

	  	
Owns Pan Am Plaza, Indianapolis, IN

	
Joint venture between KRG Pan Am Plaza, LLC and CP Pan Am Plaza, LLC (Coastal Partners)

	
KRG/I-65 Partners Beacon Hill, LLC

	
20-3229387

	
Indiana

	  	
Owns Beacon Hill, Crown Point, IN, excluding Strack & VanTil parcel, Harris Bank Outlot #1 and Outlots #5, 6 & 7

	
Joint venture between KRG Beacon Hill, LLC (wholly owned subsidiary of Kite Realty Group, L.P.) and I-65 Partners, LLC (an unrelated third party)

 

 

  

  

  

 

	
KRG/KP Northwest 20, LLC

	
20-3026564

	
Indiana

	  	
Joint venture vehicle with Scott Pitcher for Walgreens deals in Pacific Northwest

	
Joint venture owned 80% by Kite Realty Development, LLC and 20% by Scott Pitcher (an unrelated third party)

	
KRG/PRISA II Parkside, LLC

	
90-0324617

	
Delaware

	
North Carolina

	
Owns Parkside Town Commons, Cary, NC

	
Joint venture between KRG PR Ventures, LLC (a wholly owned subsidiary of Kite Realty Group, L.P.) and PRISA II (an unrelated third party)

	
KRG/PRP Oldsmar, LLC

	
20-3760708

	
Florida

	  	
Owns Bayport Commons in Oldsmar, FL

	
Joint venture between KRG Oldsmar, LLC (a wholly owned subsidiary of Kite Realty Group, L.P.) and PRP Florida, LLC (an unrelated third party)

	
KRG/WHITE LS Hotel, LLC

	
26-3872012

	
Indiana

	  	
Formerly constructed, leased and operated a limited service hotel and related amenities in South Bend, IN

	
Joint venture between KRG Eddy Street LS Hotel, LLC (a wholly owned subsidiary of Kite Realty Group, L.P.) and White ND LS, LLC (an unrelated third party)

	
KRG/WLM Marysville, LLC

	
20-3021696

	
Indiana

	
Washington

	
Owns parcel for residential development

	
Joint venture between KRG Marysville, LLC (a wholly owned subsidiary of Kite Realty Group, L.P.) and WLM Marysville, LLC (an unrelated third party)

	
Noblesville Partners, LLC

	
20-1453863

	
Indiana

	  	
Owns Stoney Creek Commons, Noblesville, IN

	
Wholly owned subsidiary of Kite Realty Group, L.P.

	
Preston Commons, LLP

	
20-1453863

	
Indiana

	
Texas

	
Former owner of Preston Commons, Dallas, TX

	
99% owed by Kite Realty Group, L.P. and 1% owned by KRG Texas, LLC

	
Riverchase Owners’ Association, Inc.

	
65-0232480

	
Florida

	  	
Owners’ Association for Riverchase Plaza, Naples, FL

	
Owners of property in Riverchase Plaza are members

 

 

  

  

  

 

	
Westfield One, LLC

	
20-1453863

	
Indiana

	  	
Owns Cool Creek Commons, Westfield, IN,

excluding Outlots

	
Kite Realty Group, L.P. owns 99% interest and KRG Cool Creek Management, LLC owns 1% interest

	
Whitehall Pike, LLC

	
20-1453863

	
Indiana

	  	
Owns Whitehall Pike, Bloomington, IN

	
Kite Realty Group, L.P. owns 99% interest and KRG Whitehall Pike Management, LLC owns 1% interest

Part II: Unconsolidated Affiliates

 

None.

 

 

  

  

  

SCHEDULE 7.1.(f)

 

Title to Properties; Liens

 

 

Part I: Real Property

As of December 31, 2012

	
Property

	
City

	
State

	
% Owned

	
Encumbrances

	
Operating Retail Properties

	
12th Street Plaza

	
Vero Beach

	
FL

	
100%

	
7,765,978

	
Bayport Commons

	
Oldsmar

	
FL

	
60%

	
12,914,303

	
Cobblestone Plaza

	
Ft. Lauderdale

	
FL

	
100%

	
—

	
Cove Center

	
Stuart

	
FL

	
100%

	
—

	
Estero Town Commons

	
Naples

	
FL

	
100%

	
—

	
Indian River Square

	
Vero Beach

	
FL

	
100%

	
12,658,987

	
International Speedway Square

	
Daytona

	
FL

	
100%

	
20,577,546

	
King's Lake Square

	
Naples

	
FL

	
100%

	
—

	
Lithia Crossing

	
Tampa

	
FL

	
100%

	
—

	
Pine Ridge Crossing

	
Naples

	
FL

	
100%

	
17,285,953

	
Riverchase Plaza

	
Naples

	
FL

	
100%

	
10,371,572

	
Shops at Eagle Creek

	
Naples

	
FL

	
100%

	
—

	
Tarpon Springs Plaza

	
Naples

	
FL

	
100%

	
—

	
Wal-Mart Plaza

	
Gainesville

	
FL

	
100%

	
—

	
Waterford Lakes Village

	
Orlando

	
FL

	
100%

	
—

	
Kedron Village

	
Atlanta

	
GA

	
100%

	
29,464,314

	
Publix at Acworth

	
Atlanta

	
GA

	
100%

	
6,978,701

	
The Centre at Panola

	
Atlanta

	
GA

	
100%

	
3,035,797

	
Fox Lake Crossing

	
Chicago

	
IL

	
100%

	
—

	
Naperville Marketplace

	
Chicago

	
IL

	
100%

	
9,435,995

	
54th & College

	
Indianapolis

	
IN

	
100%

	
—

	
Beacon Hill

	
Crown Point

	
IN

	
50%

	
7,041,750

	
Boulevard Crossing

	
Kokomo

	
IN

	
100%

	
13,416,819

	
Bridgewater Marketplace

	
Indianapolis

	
IN

	
100%

	
2,000,000

	
Cool Creek Commons

	
Indianapolis

	
IN

	
100%

	
17,166,085

 

 

  

  

  

 

	
Depauw University Bookstore and Café

	
Greencastle

	
IN

	
100%

	
—

	
Eddy Street Commons (Retail)

	
South Bend

	
IN

	
100%

	
25,064,365

	
Fishers Station (shops)

	
Indianapolis

	
IN

	
25%

	
3,527,004

	
Fishers Station (grocery store)*Line of Credit

	
100%

	
4,472,996

	
Geist Pavilion

	
Indianapolis

	
IN

	
100%

	
11,003,937

	
Glendale Town Center

	
Indianapolis

	
IN

	
100%

	
—

	
Greyhound Commons

	
Indianapolis

	
IN

	
100%

	
—

	
Hamilton Crossing Centre

	
Indianapolis

	
IN

	
100%

	
12,827,051

	
Red Bank Commons

	
Evansville

	
IN

	
100%

	
—

	
Rivers Edge

	
Indianapolis

	
IN

	
100%

	
—

	
Stoney Creek Commons

	
Indianapolis

	
IN

	
100%

	
—

	
The Corner

	
Indianapolis

	
IN

	
100%

	
—

	
Traders Point

	
Indianapolis

	
IN

	
100%

	
45,091,190

	
Traders Point II

	
Indianapolis

	
IN

	
100%

	
—

	
Whitehall Pike

	
Bloomington

	
IN

	
100%

	
7,207,871

	
Zionsville Walgreens

	
Indianapolis

	
IN

	
100%

	
3,340,940

	
Oleander Place

	
Wilmington

	
NC

	
100%

	
—

	
Ridge Plaza

	
Oak Ridge

	
NJ

	
100%

	
14,243,655

	
Eastgate Pavilion

	
Cincinnati

	
OH

	
100%

	
16,482,000

	
Cornelius Gateway

	
Portland

	
OR

	
80%

	
—

	
Shops at Otty

	
Portland

	
OR

	
100% (excluding land)

	
—

	
Plaza Green

	
Greenville

	
SC

	
100%

	
—

	
Publix at Woodruff

	
Greenville

	
SC

	
100%

	
—

	
Burlington Coat Factory

	
San Antonio

	
TX

	
100% (excluding land)

	
—

	
Cedar Hill Village

	
Dallas

	
TX

	
100%

	
—

	
Market Street Village

	
Hurst

	
TX

	
100%

	
—

	
Plaza at Cedar Hill

	
Dallas

	
TX

	
100%

	
—

	
Plaza Volente

	
Austin

	
TX

	
100%

	
27,297,725

	
Sunland Towne Centre

	
El Paso

	
TX

	
100%

	
24,599,344

	
50th & 12th

	
Seattle

	
WA

	
100%

	
4,125,671

	
Operating Commercial Properties

	
30 South

	
Indianapolis

	
IN

	
100%

	
20,476,090

	
Union Station Parking Garage

	
Indianapolis

	
IN

	
100%

	
— 

	
Eddy Street Office (part of Eddy Street Commons)*

	
South Bend

	
IN

	
100%

	
— 

	
In-Process Developments/Redevelopments

	
Delray Marketplace 

	
Delray Beach

	
FL

	
50%

	
43,225,945

	
Holly Springs Towne Center– I

	
Raleigh

	
NC

	
100%

	
8,949,409

 

 

  

  

  

 

	
Four Corner Square

	
Maple Valley

	
WA

	
100%

	
12,625,273

	
Rangeline Crossing

	
Indianapolis

	
IN

	
100%

	
4,014,582

	
Parkside Town Commons- Phase I

	
Raleigh

	
NC

	
100%

	
13,604,000

	
Bolton Plaza

	
Jacksonville

	
FL

	
100%

	
—

	
Other Development/Redevelopment Properties

	
Courthouse Shadows

	
Naples

	
FL

	
100%

	
—

	
951&41

	
Naples

	
FL

	
100%

	
7,800,000

	
Broadstone Station

	
Raleigh

	
NC

	
100%

	
—

	
Holly Springs Towne Center-Phase II

	
Raleigh

	
NC

	
100%

	
—

	
Parkside Town Commons-Phase II

	
Raleigh

	
NC

	
100%

	
—

Part II: Permitted Liens

None.

 

 

  

  

  

SCHEDULE 7.1.(g)

 

Indebtedness and Guaranties

 

 

As of December 31, 2012

	
Entity Name

	
Recourse

	
Non-Recourse

	
Secured

	
Notes

	
Consolidated

	
 125,964,727

	
573,752,324

	
458,688,850

	  
	
Letters of Credit

	
 1,863,768

	
-

	
-

	  
	
Total Company

	
 127,828,495

	
573,752,324

	
458,688,850

	  
	  	  	  	  	  
	
Kite Realty Group, L.P.

	
-

	
219,624,200

	
-

	  
	
50TH & 12TH, LLC

	
-

	
 4,125,671

	
 4,125,671

	  
	
KRG 951 & 41, LLC

	
 7,800,000

	  	  	  
	
116th & Olio, LLC

	
 -

	
 11,003,937

	
 11,003,937

	  
	
KRG Four Corner Square, LLC

	
 12,625,273

	
 -

	
 12,625,273

	
Reduces to 50% uppon 1.0x DSCR and 25% uppon 1.25xDSCR

	
Kite Acworth, LLC

	  	
6,978,701

	
6,978,701

	  
	
KRG/I-65 Ptrs Beacon Hill, LLC

	
 7,041,750

	
 -

	
 7,041,750

	  
	
KRG Bridgewater, LLC

	
 2,000,000

	
 -

	
 2,000,000

	  
	
KRG/Atlantic Delray Beach, LLC

	
 43,225,945

	
 -

	
 43,225,945

	
Reduces to 50% uppon 1.0x DSCR and 25% uppon 1.25xDSCR

	
KRG Eastgate Pavilion, LLC

	
 8,241,000

	
 8,241,000

	
 16,482,000

	  
	
KRG Eddy Street Land, LLC

	
 -

	
 25,064,365

	
 25,064,365

	  
	
Fishers Station Development Co

	
 3,527,004

	
 -

	
 3,527,004

	  
	
KRG Hamilton Crossing, LLC

	  	
12,827,051

	
12,827,051

	  
	
KRG Indian River, LLC

	
 -

	
 12,658,987

	
 12,658,987

	  
	
International Speedway Square

	
 -

	
 20,577,546

	
 20,577,546

	  
	
KRG Kedron Village, LLC

	
 -

	
 29,464,314

	
 29,464,314

	  
	
Kite New Jersey, LLC

	
 7,121,828

	
 7,121,828

	
 14,243,655

	
50% guarantee reducing to 25% after a 1.30 for 3 consecutive months

	
Kite Kokomo, LLC

	  	
13,416,819

	
13,416,819

	  
	
KRG Naperville, LLC

	  	
9,435,995

	
9,435,995

	  
	
Kite West 86th Street, LLC

	
 -

	
 45,091,190

	
 45,091,190

	  
	
Kite Washington, LLC*

	
 -

	
 20,476,091

	
 20,476,091

	  
	
KRG Fishers Station, LLC

	
 4,472,996

	
 4,472,996

	  	  
	
KRG/PRP Oldsmar, LLC

	
 -

	
 12,914,303

	
 12,914,303

	  
	
KRG Panola I, LLC

	
 -

	
 3,035,797

	
 3,035,797

	  
	
KRG Pine Ridge, LLC

	
 -

	
 17,285,953

	
 17,285,953

	  
	
KRG Riverchase, LLC

	
 -

	
 10,371,572

	
 10,371,572

	  
	
KRG Sunland, LP

	
 -

	
 24,599,344

	
 24,599,344

	  
	
KRG Plaza Volente, LP

	
 -

	
 27,297,725

	
 27,297,725

	  
	
Westfield One, LLC

	
 -

	
 17,166,085

	
 17,166,085

	  
	
Whitehall Pike, LLC

	
 -

	
 7,207,871

	
 7,207,871

	  
	
KRG Centre, LLC

	
 4,014,582

	  	
4,014,582

	
Limited payment guaranty of KRG (Guarantor) in the amount of $9,550,000 plus 100% of interest and enforcement costs during the initial Term reducing to $4,775,000 plus 100% of interest and enforcement costs upon conversion to the Extended Term

	
KRG Oak & Ford Zionsville, LLC

	
 3,340,940

	  	
3,340,940

	  

 

 

  

  

  

 

	
KRG New Hill Place I, LLC

	
 8,949,409

	  	
8,949,409

	
Reduces to 50% uppon 1.0x DSCR and 25% uppon 1.25xDSCR

	
KRG Vero, LLC

	
 -

	
 7,765,979

	
 7,765,979

	  
	
Parkside Phase I

	
 13,604,000

	
 -

	
 -

	  
	  	  	  	  	  
	
Letters of Credit

	  	  	  	  
	
Broward County Board of County Commissioners

	
231,768

	  	  	  
	
Geist

	
 1,632,000

	  	  	  

 

  

  

  

SCHEDULE 7.1.(i)

 

 

None

 

 

  

  

  

EXHIBIT A

 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

THIS ASSIGNMENT AND ACCEPTANCE AGREEMENT dated as of ___________, 201_ (the “Agreement”) by and among _________________________ (the “Assignor”), _________________________ (the “Assignee”), and KEYBANK NATIONAL ASSOCIATION, as Agent (the “Agent”).

 

WHEREAS, the Assignor is a Lender under that certain Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), the Agent, and the other parties thereto;

 

WHEREAS, the Assignor desires to assign to the Assignee, among other things, all or a portion of the Assignor’s Commitment under the Credit Agreement, all on the terms and conditions set forth herein; and

 

WHEREAS, the Agent consents to such assignment on the terms and conditions set forth herein;

 

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

 

Section 1.  Assignment.

 

(a)           Subject to the terms and conditions of this Agreement and in consideration of the payment to be made by the Assignee to the Assignor pursuant to Section 2 of this Agreement, effective as of ____________, 201_ (the “Assignment Date”), the Assignor hereby irrevocably sells, transfers and assigns to the Assignee, without recourse, a $__________ interest (such interest being the “Assigned Commitment”) in and to the Assignor’s Commitment and all of the other rights and obligations of the Assignor under the Credit Agreement, such Assignor’s Revolving Note and the other Loan Documents (representing ______% in respect of the aggregate amount of all Lenders’ Commitments), including without limitation, a principal amount of outstanding Revolving Loans equal to $_________ and all voting rights of the Assignor associated with the Assigned Commitment, all rights to receive interest on such amount of Revolving Loans and all commitment and other Fees with respect to the Assigned Commitment and other rights of the Assignor under the Credit Agreement and the other Loan Documents with respect to the Assigned Commitment, all as if the Assignee were an original Lender under and signatory to the Credit Agreement having a Commitment equal to the amount of the Assigned Commitment.  The Assignee, subject to the terms and conditions hereof, hereby assumes all obligations of the Assignor with respect to the Assigned Commitment as if the Assignee were an original Lender under and signatory to the Credit Agreement having a Commitment equal to the Assigned Commitment, which obligations shall include, but shall not be limited to, the obligation of the Assignor to make Revolving Loans to the Borrower with respect to the Assigned Commitment, the obligation to pay the Agent and the Issuing Lender amounts due in respect of draws under Letters of Credit as required under Section 2.3.(i) of the Credit Agreement, the obligation to participate in Swingline Loans as provided in Section 2.2.(e) of the Credit Agreement, and the obligation to indemnify the Agent as provided therein (the foregoing enumerated obligations, together with all other similar obligations more particularly set forth in the Credit Agreement and the other Loan Documents, collectively, the “Assigned Obligations”).  The Assignor shall have no further duties or obligations with respect to, and shall have no further interest in, the Assigned Obligations or the Assigned Commitment from and after the Assignment Date.

 

 

  

  

  

 

(b)           The assignment by the Assignor to the Assignee hereunder is without recourse to the Assignor.  The Assignee makes and confirms to the Agent, the Assignor, and the other Lenders all of the representations, warranties and covenants of a Lender under Article XII. of the Credit Agreement.  Not in limitation of the foregoing, the Assignee acknowledges and agrees that, except as set forth in Section 4 below, the Assignor is making no representations or warranties with respect to, and the Assignee hereby releases and discharges the Assignor for any responsibility or liability for:  (i) the present or future solvency or financial condition of the Borrower, any Subsidiary or any other Loan Party, (ii) any representations, warranties, statements or information made or furnished by the Borrower, any Subsidiary or any other Loan Party in connection with the Credit Agreement or otherwise, (iii) the validity, efficacy, sufficiency, or enforceability of the Credit Agreement, any other Loan Document or any other document or instrument executed in connection therewith, or the collectability of the Assigned Obligations, (iv) the perfection, priority or validity of any Lien with respect to any collateral at any time securing the Obligations or the Assigned Obligations under the Notes or the Credit Agreement and (v) the performance or failure to perform by the Borrower or any other Loan Party of any obligation under the Credit Agreement or any other Loan Document to which it is a party.  Further, the Assignee acknowledges that it has, independently and without reliance upon the Agent, or on any affiliate or subsidiary thereof, the Assignor or any other Lender and based on the financial statements supplied by the Borrower and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to become a Lender under the Credit Agreement.  The Assignee also acknowledges that it will, independently and without reliance upon the Agent, the Assignor or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or any other Loan Documents or pursuant to any other obligation.  Except as expressly provided in the Credit Agreement, the Agent shall have no duty or responsibility whatsoever, either initially or on a continuing basis, to provide the Assignee with any credit or other information with respect to the Borrower or any other Loan Party or to notify the Assignee of any Default or Event of Default.  The Assignee has not relied on the Agent as to any legal or factual matter in connection therewith or in connection with the transactions contemplated thereunder.

 

Section 2.  Payment by Assignee.  In consideration of the assignment made pursuant to Section 1 of this Agreement, the Assignee agrees to pay to the Assignor on the Assignment Date, such amount as they may agree.

 

Section 3.  Payments by Assignor.  The Assignor agrees to pay to the Agent on the Assignment Date the administration fee, if any, payable under the applicable provisions of the Credit Agreement.

 

 

  

  

  

 

Section 4.  Representations and Warranties of Assignor.  The Assignor hereby represents and warrants to the Assignee that (a) as of the Assignment Date (i) the Assignor is a Lender under the Credit Agreement having a Commitment under the Credit Agreement (without reduction by any assignments thereof which have not yet become effective), equal to $____________, and that the Assignor is not in default of its obligations under the Credit Agreement; and (ii) the outstanding balance of Revolving Loans owing to the Assignor (without reduction by any assignments thereof which have not yet become effective) is $____________; and (b) it is the legal and beneficial owner of the Assigned Commitment which is free and clear of any adverse claim created by the Assignor.

 

Section 5.  Representations, Warranties and Agreements of Assignee.  The Assignee (a) represents and warrants that it is (i) legally authorized to enter into this Agreement, (ii) an “accredited investor” (as such term is used in Regulation D of the Securities Act) and (iii) an Eligible Assignee; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant thereto and such other documents and information (including without limitation the Loan Documents) as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement; (c) appoints and authorizes the Agent to take such action as contractual representative on its behalf and to exercise such powers under the Loan Documents as are delegated to the Agent by the terms thereof together with such powers as are reasonably incidental thereto; and (d) agrees that it will become a party to and shall be bound by the Credit Agreement and the other Loan Documents to which the other Lenders are a party on the Assignment Date and will perform in accordance therewith all of the obligations which are required to be performed by it as a Lender.

 

Section 6.  Recording and Acknowledgment by the Agent.  Following the execution of this Agreement, the Assignor will deliver to the Agent (a) a duly executed copy of this Agreement for acknowledgment and recording by the Agent and (b) the Assignor’s Revolving Note.  Upon such acknowledgment and recording, from and after the Assignment Date, the Agent shall make all payments in respect of the interest assigned hereby (including payments of principal, interest, Fees and other amounts) to the Assignee.  The Assignor and Assignee shall make all appropriate adjustments in payments under the Credit Agreement for periods prior to the Assignment Date directly between themselves.

 

Section 7.  Addresses.  The Assignee specifies as its address for notices and its Lending Office for all Loans, the offices set forth on Schedule 1 attached hereto.

 

Section 8.  Payment Instructions.  All payments to be made to the Assignee under this Agreement by the Assignor, and all payments to be made to the Assignee under the Credit Agreement, shall be made as provided in the Credit Agreement in accordance with the instructions set forth on Schedule 1 attached hereto or as the Assignee may otherwise notify the Agent.

 

Section 9.  Effectiveness of Assignment.  This Agreement, and the assignment and assumption contemplated herein, shall not be effective until (a) this Agreement is executed and delivered by each of the Assignor, the Assignee, the Agent, and if required under Section 13.5.(d) of the Credit Agreement, the Borrower, and (b) the payment to the Assignor of the amounts, if any, owing by the Assignee pursuant to Section 2 hereof and (c) the payment to the Agent of the amounts, if any, owing by the Assignor pursuant to Section 3 hereof.  Upon recording and acknowledgment of this Agreement by the Agent, from and after the Assignment Date, (i) the Assignee shall be a party to the Credit Agreement and, to the extent provided in this Agreement, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to the extent provided in this Agreement, relinquish its rights (except as otherwise provided in Section 13.10. of the Credit Agreement) and be released from its obligations under the Credit Agreement; provided, however, that if the Assignor does not assign its entire interest under the Loan Documents, it shall remain a Lender entitled to all of the benefits and subject to all of the obligations thereunder with respect to its Commitment.

 

 

  

  

  

 

Section 10.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 11.  Counterparts.  This Agreement may be executed in any number of counterparts each of which, when taken together, shall constitute one and the same agreement.

 

Section 12.  Headings.  Section headings have been inserted herein for convenience only and shall not be construed to be a part hereof.

 

Section 13.  Amendments; Waivers.  This Agreement may not be amended, changed, waived or modified except by a writing executed by the Assignee and the Assignor; provided, however, any amendment, waiver or consent which shall affect the rights or duties of the Agent under this Agreement shall not be effective unless signed by the Agent.

 

Section 14.  Entire Agreement.  This Agreement embodies the entire agreement between the Assignor and the Assignee with respect to the subject matter hereof and supersedes all other prior arrangements and understandings relating to the subject matter hereof.

 

Section 15.  Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

Section 16.  Definitions.  Terms not otherwise defined herein are used herein with the respective meanings given them in the Credit Agreement.

 

[include this Section only if Borrower’s consent is required under 13.5(d)]

 

Section 17.  Agreements of the Borrower.  The Borrower hereby agrees that the Assignee shall be a Lender under the Credit Agreement having a Commitment equal to the Assigned Commitment.  The Borrower agrees that the Assignee shall have all of the rights and remedies of a Lender under the Credit Agreement and the other Loan Documents as if the Assignee were an original Lender under and signatory to the Credit Agreement, including, but not limited to, the right of a Lender to receive payments of principal and interest with respect to the Assigned Obligations, and to the Revolving Loans made by the Lenders after the date hereof and to receive the commitment and other Fees payable to the Lenders as provided in the Credit Agreement.  Further, the Assignee shall be entitled to the indemnification provisions from the Borrower in favor of the Lenders as provided in the Credit Agreement and the other Loan Documents.  The Borrower further agrees, upon the execution and delivery of this Agreement, to execute in favor of the Assignee a Note if requested pursuant to Section 13.5.(d) of the Credit Agreement.  Upon receipt by the Assignor of the amounts due the Assignor under Section 2, the Assignor agrees to surrender to the Borrower such Assignor’s Notes.

 

[Signatures on Following Pages]

 

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment and Acceptance Agreement as of the date and year first written above.

 

ASSIGNOR:

 

[NAME OF ASSIGNOR]

 

	
  

	
By:

 

	
Name:

	 

 

	
Title:

	 

 

ASSIGNEE:

 

[NAME OF ASSIGNEE]

 

	
  

	
By:

 

	
Name:

	 

 

	
Title:

	 

 

Accepted as of the date first written above.

 

AGENT:

 

KEYBANK NATIONAL ASSOCIATION, as Agent

 

	
By:

	 

 

	
Name:

	 

 

	
Title:

	 

 

[Signatures Continued on Following Page]

 

 

  

  

  

[Include signature of the Borrower only if required under Section 13.5(d) of the Amended and Restated Credit Agreement]

 

Agreed and consented to as of the date first written above.

 

BORROWER:

 

KITE REALTY GROUP, L.P.

 

	
  

	
By:

	
Kite Realty Group Trust, its sole General Partner

 

	
  

	
By:

	 

 

	
  

	
Name:

	 

 

	
  

	
Title:

	 

 

A-

ATLANTA:5437522.5

  

  

  

SCHEDULE 1

 

Information Concerning the Assignee

 

	
Notice Address:

	
 

 

 

Telephone No.:                                                        

Telecopy No.:                                                        

	
Lending Office:

	  
	
Telephone No.:

	  
	
Telecopy No.:

	  
	
Payment Instructions:

	  

A-

ATLANTA:5437522.5

  

  

  

EXHIBIT B

 

FORM OF SECOND AMENDED AND RESTATED GUARANTY

 

THIS SECOND AMENDED AND RESTATED GUARANTY (the “Guaranty”) dated as of ____________, 2013, executed and delivered by each of the undersigned and the other Persons from time to time party hereto pursuant to the execution and delivery of an Accession Agreement in the form of Annex I hereto (all of the undersigned, together with such other Persons each a “Guarantor” and collectively, the “Guarantors”) in favor of (a) KEYBANK NATIONAL ASSOCIATION, in its capacity as Agent (the “Agent”) for the Lenders under that certain Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), the Agent, and the other parties thereto, and (b) the Lenders and the Swingline Lender.

 

WHEREAS, pursuant to the Credit Agreement, the Agent, the Lenders and the Swingline Lender have agreed to make available to the Borrower certain financial accommodations on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS, the Borrower and each of the Guarantors, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Agent, the Lenders and the Swingline Lender through their collective efforts;

 

WHEREAS, each Guarantor acknowledges that it will receive direct and indirect benefits from the Agent, the Lenders and the Swingline Lender making such financial accommodations available to the Borrower under the Credit Agreement and, accordingly, each Guarantor is willing to guarantee the Borrower’s obligations to the Agent, the Lenders and the Swingline Lender on the terms and conditions contained herein; and

 

WHEREAS, each Guarantor’s execution and delivery of this Guaranty is a condition to the Agent and the Lenders making, and continuing to make, such financial accommodations to the Borrower.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each Guarantor, each Guarantor agrees as follows:

 

Section 1.  Guaranty.  Each Guarantor hereby absolutely, irrevocably and unconditionally guaranties the due and punctual payment and performance when due, whether at stated maturity, by acceleration or otherwise, of all of the following (collectively referred to as the “Guarantied Obligations”):  (a) all indebtedness and obligations owing by the Borrower to any Lender, the Swingline Lender, the Issuing Lender or the Agent under or in connection with the Credit Agreement and any other Loan Document, including without limitation, the repayment of all principal of the Revolving Loans, Swingline Loans and the Reimbursement Obligations, and the payment of all interest, Fees, charges, attorneys’ fees and other amounts payable to any Lender or the Agent thereunder or in connection therewith; (b) any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (c) all expenses, including, without limitation, reasonable attorneys’ fees and disbursements, that are incurred by the Lenders and the Agent in the enforcement of any of the foregoing or any obligation of such Guarantor hereunder; and (d) all other Obligations.

 

 

  

  

  

 

Section 2.  Guaranty of Payment and Not of Collection.  This Guaranty is a guaranty of payment, and not of collection, and a debt of each Guarantor for its own account.  Accordingly, none of the Lenders, the Swingline Lender, the Issuing Lender or the Agent shall be obligated or required before enforcing this Guaranty against any Guarantor:  (a)  to pursue any right or remedy any of them may have against the Borrower, any other Guarantor or any other Person or commence any suit or other proceeding against the Borrower, any other Guarantor or any other Person in any court or other tribunal; (b) to make any claim in a liquidation or bankruptcy of the Borrower, any other Guarantor or any other Person; or (c) to make demand of the Borrower, any other Guarantor or any other Person or to enforce or seek to enforce or realize upon any collateral security held by the Lenders, the Swingline Lender, the Issuing Lender or the Agent which may secure any of the Guarantied Obligations.

 

Section 3.  Guaranty Absolute.  Each Guarantor guarantees that the Guarantied Obligations will be paid strictly in accordance with the terms of the documents evidencing the same, regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Agent, the Lenders, the Issuing Lender or the Swingline Lender with respect thereto.  The liability of each Guarantor under this Guaranty shall be absolute, irrevocable and unconditional in accordance with its terms and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever, including without limitation, the following (whether or not such Guarantor consents thereto or has notice thereof):

 

(a)           (i) any change in the amount, interest rate or due date or other term of any of the Guarantied Obligations, (ii) any change in the time, place or manner of payment of all or any portion of the Guarantied Obligations, (iii) any amendment or waiver of, or consent to the departure from or other indulgence with respect to, the Credit Agreement, any other Loan Document, or any other document or instrument evidencing or relating to any Guarantied Obligations, or (iv) any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action or inaction under or in respect of, the Credit Agreement, any of the other Loan Documents, or any other documents, instruments or agreements relating to the Guarantied Obligations or any other instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;

 

(b)           any lack of validity or enforceability of the Credit Agreement, any of the other Loan Documents, or any other document, instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;

 

(c)           any furnishing to the Agent, the Lenders, the Issuing Lender or the Swingline Lender of any security for the Guarantied Obligations, or any sale, exchange, release or surrender of, or realization on, any collateral securing any of the Obligations;

 

 

  

  

  

 

(d)           any settlement or compromise of any of the Guarantied Obligations, any security therefor, or any liability of any other party with respect to the Guarantied Obligations, or any subordination of the payment of the Guarantied Obligations to the payment of any other liability of the Borrower or any other Loan Party;

 

(e)           any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to such Guarantor, the Borrower, any other Loan Party or any other Person, or any action taken with respect to this Guaranty by any trustee or receiver, or by any court, in any such proceeding;

 

(f)           any act or failure to act by the Borrower, any other Loan Party or any other Person which may adversely affect such Guarantor’s subrogation rights, if any, against the Borrower to recover payments made under this Guaranty;

 

(g)           any nonperfection or impairment of any security interest or other Lien on any collateral, if any, securing in any way any of the Obligations;

 

(h)           any application of sums paid by the Borrower, any other Guarantor or any other Person with respect to the liabilities of the Borrower to the Agent, the Lenders, the Issuing Lender or the Swingline Lender, regardless of what liabilities of the Borrower remain unpaid;

 

(i)           any defect, limitation or insufficiency in the borrowing powers of the Borrower or in the exercise thereof; or

 

(j)           any other circumstance which might otherwise constitute a defense available to, or a discharge of, a Guarantor hereunder (other than indefeasible payment and performance in full).

 

Section 4.  Action with Respect to Guarantied Obligations.  The Lenders and the Agent may, at any time and from time to time, without the consent of, or notice to, any Guarantor, and without discharging any Guarantor from its obligations hereunder, take any and all actions described in Section 3 and may otherwise:  (a) amend, modify, alter or supplement the terms of any of the Guarantied Obligations, including, but not limited to, extending or shortening the time of payment of any of the Guarantied Obligations or changing the interest rate that may accrue on any of the Guarantied Obligations; (b) amend, modify, alter or supplement the Credit Agreement or any other Loan Document; (c) sell, exchange, release or otherwise deal with all, or any part, of any collateral securing any of the Obligations; (d) release any other Loan Party or other Person liable in any manner for the payment or collection of the Guarantied Obligations; (e) exercise, or refrain from exercising, any rights against the Borrower, any other Guarantor or any other Person; and (f) apply any sum, by whomsoever paid or however realized, to the Guarantied Obligations in such order as the Lenders shall elect.

 

Section 5.  Representations and Warranties.  Each Guarantor hereby makes to the Agent, the Lenders, the Issuing Lender and the Swingline Lender all of the representations and warranties made by the Borrower with respect to or in any way relating to such Guarantor in the Credit Agreement and the other Loan Documents, as if the same were set forth herein in full.

 

 

  

  

  

 

Section 6.  Covenants.  Each Guarantor will comply with all covenants which the Borrower is to cause such Guarantor to comply with under the terms of the Credit Agreement or any of the other Loan Documents.

 

Section 7.  Waiver.  Each Guarantor, to the fullest extent permitted by Applicable Law, hereby waives notice of acceptance hereof or any presentment, demand, protest or notice of any kind, and any other act or thing, or omission or delay to do any other act or thing, which in any manner or to any extent might vary the risk of such Guarantor or which otherwise might operate to discharge such Guarantor from its obligations hereunder.

 

Section 8.  Inability to Accelerate Loan.  If the Agent, the Swingline Lender, the Issuing Lender and/or the Lenders are prevented under Applicable Law or otherwise from demanding or accelerating payment of any of the Guarantied Obligations by reason of any automatic stay or otherwise, the Agent, the Swingline Lender, the Issuing Lender and/or the Lenders shall be entitled to receive from each Guarantor, upon demand therefor, the sums which otherwise would have been due had such demand or acceleration occurred.

 

Section 9.  Reinstatement of Guarantied Obligations.  If claim is ever made on the Agent, any Lender, the Issuing Lender or the Swingline Lender for repayment or recovery of any amount or amounts received in payment or on account of any of the Guarantied Obligations, and the Agent, such Lender, the Issuing Lender or the Swingline Lender repays all or part of said amount by reason of (a) any judgment, decree or order of any court or administrative body of competent jurisdiction, or (b) any settlement or compromise of any such claim effected by the Agent, such Lender, the Issuing Lender or the Swingline Lender with any such claimant (including the Borrower or a trustee in bankruptcy for the Borrower), then and in such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding on it, notwithstanding any revocation hereof or the cancellation of the Credit Agreement, any of the other Loan Documents, or any other instrument evidencing any liability of the Borrower, and such Guarantor shall be and remain liable to the Agent, such Lender, the Issuing Lender or the Swingline Lender for the amounts so repaid or recovered to the same extent as if such amount had never originally been paid to the Agent, such Lender, the Issuing Lender or the Swingline Lender.

 

Section 10.  Subrogation.  Upon the making by any Guarantor of any payment hereunder for the account of the Borrower, such Guarantor shall be subrogated to the rights of the payee against the Borrower; provided, however, that such Guarantor shall not enforce any right or receive any payment by way of subrogation or otherwise take any action in respect of any other claim or cause of action such Guarantor may have against the Borrower arising by reason of any payment or performance by such Guarantor pursuant to this Guaranty, unless and until all of the Guarantied Obligations have been indefeasibly paid and performed in full.  If any amount shall be paid to such Guarantor on account of or in respect of such subrogation rights or other claims or causes of action, such Guarantor shall hold such amount in trust for the benefit of the Agent, the Lenders, the Issuing Lender and the Swingline Lender and shall forthwith pay such amount to the Agent to be credited and applied against the Guarantied Obligations, whether matured or unmatured, in accordance with the terms of the Credit Agreement or to be held by the Agent as collateral security for any Guarantied Obligations existing.

 

 

  

  

  

 

Section 11.  Payments Free and Clear.  All sums payable by each Guarantor hereunder, whether of principal, interest, Fees, expenses, premiums or otherwise, shall be paid in full, without set off or counterclaim or any deduction or withholding whatsoever (including any Taxes), and if any Guarantor is required by Applicable Law or by a Governmental Authority to make any such deduction or withholding, such Guarantor shall pay to the Agent, the Lenders, the Issuing Lender and the Swingline Lender such additional amount as will result in the receipt by the Agent, the Lenders, the Issuing Lender and the Swingline Lender of the full amount payable hereunder had such deduction or withholding not occurred or been required.

 

Section 12.  Set-off.  In addition to any rights now or hereafter granted under any of the other Loan Documents or Applicable Law and not by way of limitation of any such rights, each Guarantor hereby authorizes the Agent and each Lender, at any time during the continuance of an Event of Default, without any prior notice to such Guarantor or to any other Person, any such notice being hereby expressly waived, but in the case of a Lender or Participant subject to receipt of the prior written consent of the Agent exercised in its sole discretion, to set off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at any time held or owing by the Agent, such Lender, or any affiliate of the Agent or such Lender, to or for the credit or the account of such Guarantor against and on account of any of the Guarantied Obligations, although such obligations shall be contingent or unmatured. Each Guarantor agrees, to the fullest extent permitted by Applicable Law, that any Participant may exercise rights of setoff or counterclaim and other rights with respect to its participation as fully as if such Participant were a direct creditor of such Guarantor in the amount of such participation.

 

Section 13.  Subordination.  Each Guarantor hereby expressly covenants and agrees for the benefit of the Agent, the Lenders, the Issuing Lender and the Swingline Lender that all obligations and liabilities of the Borrower to such Guarantor of whatever description, including without limitation, all intercompany receivables of such Guarantor from the Borrower (collectively, the “Junior Claims”) shall be subordinate and junior in right of payment to all Guarantied Obligations.  If an Event of Default shall exist, then no Guarantor shall accept any direct or indirect payment (in cash, property or securities, by setoff or otherwise) from the Borrower on account of or in any manner in respect of any Junior Claim until all of the Guarantied Obligations have been indefeasibly paid in full.

 

Section 14.  Avoidance Provisions.  It is the intent of each Guarantor, the Agent, the Lenders, the Issuing Lender and the Swingline Lender that in any Proceeding, such Guarantor’s maximum obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Agent, the Lenders, the Issuing Lender and the Swingline Lender) to be avoidable or unenforceable against such Guarantor in such Proceeding as a result of Applicable Law, including without limitation, (a) Section 548 of the Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) and (b) any state fraudulent transfer or fraudulent conveyance act or statute applied in such Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise.  The Applicable Laws under which the possible avoidance or unenforceability of the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Agent, the Lenders, the Issuing Lender and the Swingline Lender) shall be determined in any such Proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the extent that the obligations of any Guarantor hereunder would otherwise be subject to avoidance under the Avoidance Provisions, the maximum Guarantied Obligations for which such Guarantor shall be liable hereunder shall be reduced to that amount which, as of the time any of the Guarantied Obligations are deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Agent, the Lenders, the Issuing Lender and the Swingline Lender), to be subject to avoidance under the Avoidance Provisions.  This Section is intended solely to preserve the rights of the Agent, the Lenders, the Issuing Lender and the Swingline Lender hereunder to the maximum extent that would not cause the obligations of any Guarantor hereunder to be subject to avoidance under the Avoidance Provisions, and no Guarantor or any other Person shall have any right or claim under this Section as against the Agent, the Lenders, the Issuing Lender and the Swingline Lender that would not otherwise be available to such Person under the Avoidance Provisions.

 

 

  

  

  

 

Section 15.  Information.  Each Guarantor assumes all responsibility for being and keeping itself informed of the financial condition of the Borrower and the other Guarantors, and of all other circumstances bearing upon the risk of nonpayment of any of the Guarantied Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that none of the Agent, the Lenders, the Issuing Lender or the Swingline Lender shall have any duty whatsoever to advise any Guarantor of information regarding such circumstances or risks.

 

Section 16.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

SECTION 17.  WAIVER OF JURY TRIAL.

 

(a)           EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT AND EACH GUARANTOR HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

 

(b)           EACH OF THE GUARANTORS, THE AGENT AND EACH LENDER HEREBY AGREES THAT ANY FEDERAL DISTRICT COURT LOCATED IN NEW YORK OR, AT THE OPTION OF THE AGENT, ANY STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW YORK, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  EACH GUARANTOR AND EACH OF THE LENDERS EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

 

 

  

  

  

 

(c)           THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS GUARANTY.

 

Section 18.  Loan Accounts.  The Agent, each Lender, the Issuing Lender and the Swingline Lender may maintain books and accounts setting forth the amounts of principal, interest and other sums paid and payable with respect to the Guarantied Obligations, and in the case of any dispute relating to any of the outstanding amount, payment or receipt of any of the Guarantied Obligations or otherwise, the entries in such books and accounts shall be deemed conclusive evidence of the amounts and other matters set forth herein, absent manifest error.  The failure of the Agent, any Lender, the Issuing Lender or the Swingline Lender to maintain such books and accounts shall not in any way relieve or discharge any Guarantor of any of its obligations hereunder.

 

Section 19.  Waiver of Remedies.  No delay or failure on the part of the Agent, any Lender, the Issuing Lender or the Swingline Lender in the exercise of any right or remedy it may have against any Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the Agent, any Lender, the Issuing Lender or the Swingline Lender of any such right or remedy shall preclude any other or further exercise thereof or the exercise of any other such right or remedy.

 

Section 20.  Termination.  This Guaranty shall remain in full force and effect until indefeasible payment in full of the Guarantied Obligations and the other Obligations and the termination or cancellation of the Credit Agreement in accordance with its terms.

 

Section 21.  Successors and Assigns.  Each reference herein to the Agent or the Lenders shall be deemed to include such Person’s respective successors and assigns (including, but not limited to, any holder of the Guarantied Obligations) in whose favor the provisions of this Guaranty also shall inure, and each reference herein to each Guarantor shall be deemed to include such Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding.  The Lenders, the Issuing Lender and the Swingline Lender may, in accordance with the applicable provisions of the Credit Agreement, assign, transfer or sell any Guarantied Obligation, or grant or sell participations in any Guarantied Obligations, to any Person without the consent of, or notice to, any Guarantor and without releasing, discharging or modifying any Guarantor’s obligations hereunder.  Subject to Section 13.8. of the Credit Agreement, each Guarantor hereby consents to the delivery by the Agent or any Lender to any Assignee or Participant (or any prospective Assignee or Participant) of any financial or other information regarding the Borrower or any Guarantor.  No Guarantor may assign or transfer its obligations hereunder to any Person without the prior written consent of all Lenders and any such assignment or other transfer to which all of the Lenders have not so consented shall be null and void.

 

 

  

  

  

 

Section 22.  JOINT AND SEVERAL OBLIGATIONS.  THE OBLIGATIONS OF THE GUARANTORS HEREUNDER SHALL BE JOINT AND SEVERAL, AND ACCORDINGLY, EACH GUARANTOR CONFIRMS THAT IT IS LIABLE FOR THE FULL AMOUNT OF THE “GUARANTIED OBLIGATIONS” AND ALL OF THE OBLIGATIONS AND LIABILITIES OF EACH OF THE OTHER GUARANTORS HEREUNDER.

 

Section 23.  Amendments.  This Guaranty may not be amended except in writing signed by the Requisite Lenders (or all of the Lenders if required under the terms of the Credit Agreement), the Agent and each Guarantor.

 

Section 24.  Payments.  All payments to be made by any Guarantor pursuant to this Guaranty shall be made in Dollars, in immediately available funds to the Agent at the Principal Office, not later than 2:00 p.m. on the date of demand therefor.

 

Section 25.  Notices.  All notices, requests and other communications hereunder shall be in writing (including facsimile transmission or similar writing) and shall be given (a) to each Guarantor at its address set forth below its signature hereto, (b) to the Agent, any Lender, the Issuing Lender or the Swingline Lender at its respective address for notices provided for in the Credit Agreement, or (c) as to each such party at such other address as such party shall designate in a written notice to the other parties.  Each such notice, request or other communication shall be effective (i) if mailed, when received; (ii) if telecopied, when transmitted; or (iii) if hand delivered, when delivered; provided, however, that any notice of a change of address for notices shall not be effective until received.

 

Section 26.  Severability.  In case any provision of this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 27.  Headings.  Section headings used in this Guaranty are for convenience only and shall not affect the construction of this Guaranty.

 

 

  

  

  

 

Section 28.  Limitation of Liability.  Neither the Agent nor any Lender, nor any affiliate, officer, director, employee, attorney, or agent of the Agent or any Lender, shall have any liability with respect to, and each Guarantor hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by a Guarantor in connection with, arising out of, or in any way related to, this Guaranty or any of the other Loan Documents, or any of the transactions contemplated by this Guaranty, the Credit Agreement or any of the other Loan Documents.  Each Guarantor hereby waives, releases, and agrees not to sue the Agent or any Lender or any of the Agent’s or any Lender’s affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Guaranty, the Credit Agreement or any of the other Loan Documents, or any of the transactions contemplated by Credit Agreement or financed thereby.

 

Section 29.  Definitions.  (a) For the purposes of this Guaranty:

 

“Proceeding” means any of the following:  (i) a voluntary or involuntary case concerning any Guarantor shall be commenced under the Bankruptcy Code of 1978, as amended; (ii) a custodian (as defined in such Bankruptcy Code or any other applicable bankruptcy laws) is appointed for, or takes charge of, all or any substantial part of the property of any Guarantor; (iii) any other proceeding under any Applicable Law, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up or composition for adjustment of debts, whether now or hereafter in effect, is commenced relating to any Guarantor; (iv) any Guarantor is adjudicated insolvent or bankrupt; (v) any order of relief or other order approving any such case or proceeding is entered by a court of competent jurisdiction; (vi) any Guarantor makes a general assignment for the benefit of creditors; (vii) any Guarantor shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; (viii) any Guarantor shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; (ix) any Guarantor shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or (x) any corporate action shall be taken by any Guarantor for the purpose of effecting any of the foregoing.

 

(b)           Terms not otherwise defined herein are used herein with the respective meanings given them in the Credit Agreement.

 

Section 30.  Amendment and Restatement.  This Guaranty amends and restates in its entirety that certain Amended and Restated Guaranty dated as of June 6, 2011 made by Guarantors in favor of Agent and the lenders under the “Existing Credit Agreement” (as defined in the Credit Agreement).

 

 

[Signature on Next Page]

 

 

  

  

  

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

 

[GUARANTORS]:

 

KITE REALTY GROUP TRUST

 

By:                                                                           

 

Name:                                                                           

 

Title:                                                                           

 

 

Address for Notices:

 

Kite Realty Group Trust

 

__________________________

 

__________________________

 

Attention:  __________

 

Telecopy Number:                                (___) __________

 

Telephone Number:                                (___) __________

 

[Add Signature Block for each Subsidiary Owning an Initial Unencumbered Pool Property]

 

B-

ATLANTA:5437522.5

  

  

  

ANNEX I

 

FORM OF ACCESSION AGREEMENT

 

THIS ACCESSION AGREEMENT dated as of ____________, 201__, executed and delivered by ______________________, a _____________ (the “New Guarantor”), in favor of (a) KEYBANK NATIONAL ASSOCIATION, in its capacity as Agent (the “Agent”) for the Lenders under that certain Third Amended and Restated Credit Agreement dated as of __________ ___ , 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), the Agent, and the other parties thereto, and (b) the Lenders, the Issuing Lender and the Swingline Lender.

 

WHEREAS, pursuant to the Credit Agreement, the Agent, the Lenders, the Issuing Lender and the Swingline Lender have agreed to make available to the Borrower certain financial accommodations on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS, the Borrower, the New Guarantor, and the existing Guarantors, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Agent, the Lenders, the Issuing Lender and the Swingline Lender through their collective efforts;

 

WHEREAS, the New Guarantor acknowledges that it will receive direct and indirect benefits from the Agent, the Lenders, the Issuing Lender and the Swingline Lender making such financial accommodations available to the Borrower under the Credit Agreement and, accordingly, the New Guarantor is willing to guarantee the Borrower’s obligations to the Agent, the Lenders, the Issuing Lender and the Swingline Lender on the terms and conditions contained herein; and

 

WHEREAS, the New Guarantor’s execution and delivery of this Agreement is a condition to the Agent, the Lenders, the Issuing Lender and the Swingline Lender continuing to make such financial accommodations to the Borrower.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the New Guarantor, the New Guarantor agrees as follows:

 

Section 1.  Accession to Guaranty.  The New Guarantor hereby agrees that it is a “Guarantor” under that certain Second Amended and Restated Guaranty dated as of _____________ ___, 2013 (as amended, supplemented, restated or otherwise modified from time to time, the “Guaranty”), made by each Parent and Subsidiary of the Borrower a party thereto in favor of the Agent, the Lenders, the Issuing Lender and the Swingline Lender and assumes all obligations of a “Guarantor” thereunder, all as if the New Guarantor had been an original signatory to the Guaranty.  Without limiting the generality of the foregoing, the New Guarantor hereby:

 

 

  

  

  

 

(a)           irrevocably and unconditionally guarantees the due and punctual payment and performance when due, whether at stated maturity, by acceleration or otherwise, of all Guarantied Obligations (as defined in the Guaranty);

 

(b)           makes to the Agent, the Lenders, the Issuing Lender and the Swingline Lender as of the date hereof each of the representations and warranties contained in Section 5 of the Guaranty and agrees to be bound by each of the covenants contained in Section 6 of the Guaranty; and

 

(c)           consents and agrees to each provision set forth in the Guaranty.

 

SECTION 2.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 3.  Definitions.  Capitalized terms used herein and not otherwise defined herein shall have their respective defined meanings given them in the Credit Agreement.

 

[Signatures on Next Page]

 

 

  

  

  

IN WITNESS WHEREOF, the New Guarantor has caused this Accession Agreement to be duly executed and delivered under seal by its duly authorized officers as of the date first written above.

 

[NEW GUARANTOR]

 

	
By:

	 

 

	
Name:

	 

 

	
Title:

	 

 

Address for Notices:

 

c/o Kite Realty Group Trust

 

__________________________

 

__________________________

 

Attention:  __________

 

Telecopy Number:                                (___) __________

 

Telephone Number:                                (___) __________

 

Accepted:

 

KEYBANK NATIONAL ASSOCIATION, as Agent

 

	
By:

	 

 

	
Name:

	 

 

	
Title:

	 

 

B-

ATLANTA:5437522.5

  

  

  

EXHIBIT C

 

FORM OF NOTICE OF BORROWING

 

____________, 201_

 

KeyBank National Association, as Agent

Real Estate Capital

1200 Abernathy Road, N.E., Suite 1550

Atlanta, Georgia  30328

Attention:  James Komperda

 

Ladies and Gentlemen:

 

Reference is made to that certain Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), KeyBank National Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Credit Agreement.

 

	
  

	
1.

	
Pursuant to Section 2.1.(b) of the Credit Agreement, the Borrower hereby requests that the Lenders make Revolving Loans to the Borrower in an aggregate principal amount equal to $___________________.

 

	
  

	
2.

	
The Borrower requests that such Revolving Loans be made available to the Borrower on ____________, 201_.

 

	
  

	
3.

	
The Borrower hereby requests that the requested Revolving Loans all be of the following Type:

 

[Check one box only]

 

  ̈ Base Rate Loans

 

  ̈ LIBOR Loans, each with an initial Interest Period for a duration of:

 

[Check one box only]                                            ̈ 1 month

 

 ̈ 2 months

 

 ̈ 3 months

 

 ̈ 6 months

 

 

  

  

  

 

	
  

	
4.

	
The proceeds of this borrowing of Revolving Loans will be used for the following purpose:  _____________________________________________________

 

	
  

	
____________________________________________________________.

 

	
  

	
5.

	
The Borrower requests that the proceeds of this borrowing of Revolving Loans be made available to the Borrower by ____________________________.

 

The Borrower hereby certifies to the Agent and the Lenders that as of the date hereof and as of the date of the making of the requested Revolving Loans and after giving effect thereto, (a) no Default or Event of Default exists or shall exist, and (b) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party are and shall be true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents. In addition, the Borrower certifies to the Agent and the Lenders that all conditions to the making of the requested Revolving Loans contained in Article VI. of the Credit Agreement will have been satisfied (or waived in accordance with the applicable provisions of the Loan Documents) at the time such Revolving Loans are made.

 

If notice of the requested borrowing of Revolving Loans was previously given by telephone, this notice is to be considered the written confirmation of such telephone notice required by Section 2.1.(b) of the Credit Agreement.

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Borrowing as of the date first written above.

 

KITE REALTY GROUP, L.P.

 

	
  

	
By:

	
Kite Realty Group Trust, its sole General Partner

 

By:                                                                

 

Name:                                                                

 

Title:                                                                

 

 

  

  

  

EXHIBIT D

 

FORM OF NOTICE OF CONTINUATION

 

____________, 201_

 

KeyBank National Association, as Agent

Real Estate Capital

1200 Abernathy Road, N.E., Suite 1550

Atlanta, Georgia  30328

 

Attentin:  James Komperda

 

Ladies and Gentlemen:

 

Reference is made to that certain Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), KeyBank National Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Credit Agreement.

 

Pursuant to Section 2.8. of the Credit Agreement, the Borrower hereby requests a Continuation of a borrowing of Loans under the Credit Agreement, and in that connection sets forth below the information relating to such Continuation as required by such Section of the Credit Agreement:

 

	
  

	
1.

	
The proposed date of such Continuation is ____________, 201__.

 

	
  

	
2.

	
The aggregate principal amount of Loans subject to the requested Continuation is $________________________ and was originally borrowed by the Borrower on ____________, 201_.

 

	
  

	
3.

	
The portion of such principal amount subject to such Continuation is $__________________________.

 

	
  

	
4.

	
The current Interest Period for each of the Loans subject to such Continuation ends on ________________, 201_.

 

	
  

	
5.

	
The duration of the new Interest Period for each of such Loans or portion thereof subject to such Continuation is:

 

[Check one box only]                                       ̈ 1 month

 

 ̈ 2 months

 

 ̈ 3 months

 

 ̈ 6 months

 

 

  

  

  

 

The Borrower hereby certifies to the Agent and the Lenders that as of the date hereof, as of the proposed date of the requested Continuation, and after giving effect to such Continuation, no Default or Event of Default exists or will exist.

 

If notice of the requested Continuation was given previously by telephone, this notice is to be considered the written confirmation of such telephone notice required by Section 2.8. of the Credit Agreement.

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Continuation as of the date first written above.

 

KITE REALTY GROUP, L.P.

 

	
  

	
By:

	
Kite Realty Group Trust, its sole General Partner

 

By:                                                                

 

Name:                                                                

 

Title:                                                                

 

 

  

  

  

EXHIBIT E

 

FORM OF NOTICE OF CONVERSION

 

____________, 201_

 

KeyBank National Association, as Agent

Real Estate Capital

1200 Abernathy Road, N.E., Suite 1550

Atlanta, Georgia  30328

Attention: James Komperda

 

Ladies and Gentlemen:

 

Reference is made to that certain Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), KeyBank National Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Credit Agreement.

 

Pursuant to Section 2.9. of the Credit Agreement, the Borrower hereby requests a Conversion of a borrowing of Loans of one Type into Loans of another Type under the Credit Agreement, and in that connection sets forth below the information relating to such Conversion as required by such Section of the Credit Agreement:

 

	
  

	
1.

	
The proposed date of such Conversion is ______________, 201_.

 

	
  

	
2.

	
The Loans to be Converted pursuant hereto are currently:

 

[Check one box only]                                            ̈ Base Rate Loans

 

 ̈ LIBOR Loans

 

	
  

	
3.

	
The aggregate principal amount of Loans subject to the requested Conversion is $_____________________ and was originally borrowed by the Borrower on ____________, 201_.

 

	
  

	
4.

	
The portion of such principal amount subject to such Conversion is $___________________.

 

	
  

	
5.

	
The amount of such Loans to be so Converted is to be converted into Loans of the following Type:

 

[Check one box only]

 

  ̈ Base Rate Loans

 

 

  

  

  

 

  ̈ LIBOR Loans, each with an initial Interest Period for a duration of:

 

[Check one box only]                                            ̈ 1 month

 

 ̈ 2 months

 

 ̈ 3 months

 

 ̈ 6 months

 

The Borrower hereby certifies to the Agent and the Lenders that as of the date hereof and as of the date of the requested Conversion and after giving effect thereto, (a) no Default or Event of Default exists or will exist (provided the certification under this clause (a) shall not be made in connection with the Conversion of a Loan into a Base Rate Loan), and (b) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party are and shall be true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.

 

If notice of the requested Conversion was given previously by telephone, this notice is to be considered the written confirmation of such telephone notice required by Section 2.9. of the Credit Agreement.

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Conversion as of the date first written above.

 

KITE REALTY GROUP, L.P.

 

	
  

	
By:

	
Kite Realty Group Trust, its sole General Partner

 

By:                                                                

 

Name:                                                                

 

Title:                                                                

 

 

  

  

  

EXHIBIT F

 

FORM OF NOTICE OF SWINGLINE BORROWING

 

____________, 201__

 

KeyBank National Association, as Agent

Real Estate Capital

1200 Abernathy Road, N.E., Suite 1550

Atlanta, Georgia  30328

Attention:  James Komperda

 

Ladies and Gentlemen:

 

Reference is made to that certain Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), KeyBank National Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Credit Agreement.

 

	
  

	
1.

	
Pursuant to Section 2.2.(b) of the Credit Agreement, the Borrower hereby requests that the Swingline Lender make a Swingline Loan to the Borrower in an amount equal to $___________________.

 

	
  

	
2.

	
The Borrower requests that such Swingline Loan be made available to the Borrower on ____________, 201_.

 

	
  

	
3.

	
The proceeds of this Swingline Loan will be used for the following purpose:  ____________________________________________________________

 

	
  

	
___________________________________________________________.

 

	
  

	
4.

	
The Borrower requests that the proceeds of such Swingline Loan be made available to the Borrower by ______________________________.

 

The Borrower hereby certifies to the Agent, the Swingline Lender, the Issuing Lender and the Lenders that as of the date hereof, as of the date of the making of the requested Swingline Loan, and after making such Swingline Loan, (a) no Default or Event of Default exists or will exist, and (b) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party are and shall be true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  In addition, the Borrower certifies to the Agent and the Lenders that all conditions to the making of the requested Swingline Loan contained in Article VI. of the Credit Agreement will have been satisfied at the time such Swingline Loan is made.

 

 

  

  

  

 

If notice of the requested borrowing of this Swingline Loan was previously given by telephone, this notice is to be considered the written confirmation of such telephone notice required by Section 2.2.(b) of the Credit Agreement.

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Swingline Borrowing as of the date first written above.

 

KITE REALTY GROUP, L.P.

 

	
  

	
By:

	
Kite Realty Group Trust, its sole General Partner

 

By:                                                                

 

Name:                                                                

 

Title:                                                                

 

 

  

  

  

EXHIBIT G

 

FORM OF SWINGLINE NOTE

 

$25,000,000 

_______________, 2013

 

FOR VALUE RECEIVED, the undersigned, KITE REALTY GROUP, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”), hereby promises to pay to the order of KEYBANK NATIONAL ASSOCIATION (the “Swingline Lender”) to its address at Real Estate Capital, 127 Public Square, 8th Floor, Mail Code:  OH-01-27-0839, Cleveland, Ohio  44114, or at such other address as may be specified in writing by the Swingline Lender to the Borrower, the principal sum of TWENTY-FIVE MILLION AND NO/100 DOLLARS ($25,000,000) (or such lesser amount as shall equal the aggregate unpaid principal amount of Swingline Loans made by the Swingline Lender to the Borrower under the Credit Agreement), on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Credit Agreement.

 

The date, amount of each Swingline Loan, and each payment made on account of the principal thereof, shall be recorded by the Swingline Lender on its books and, prior to any transfer of this Note, endorsed by the Swingline Lender on the schedule attached hereto or any continuation thereof, provided that the failure of the Swingline Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower to make a payment when due of any amount owing under the Credit Agreement or hereunder in respect of the Swingline Loans.

 

This Note is the Swingline Note referred to in the Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), KeyBank National Association, as Agent, and the other parties thereto, and evidences Swingline Loans made to the Borrower thereunder.  Terms used but not otherwise defined in this Note have the respective meanings assigned to them in the Credit Agreement.

 

The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of Swingline Loans upon the terms and conditions specified therein.

 

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

 

The Borrower hereby waives presentment for payment, demand, notice of demand, notice of non-payment, protest, notice of protest and all other similar notices.

 

Time is of the essence for this Note.

 

 

  

  

  

 

IN WITNESS WHEREOF, the undersigned has executed and delivered this Swingline Note under seal as of the date first written above.

 

KITE REALTY GROUP, L.P.

 

	
  

	
By:

	
Kite Realty Group Trust, its sole General Partner

 

By:                                                                

 

Name:                                                                

 

Title:                                                                

 

 

  

  

  

SCHEDULE OF SWINGLINE LOANS

 

This Note evidences Swingline Loans made under the within-described Credit Agreement to the Borrower, on the dates and in the principal amounts set forth below, subject to the payments and prepayments of principal set forth below:

 

	
Date of Loan

	
Principal

Amount of Loan

	
Amount Paid or

Prepaid

	
Unpaid Principal

Amount

	
Notation Made By

	  	  	  	  	  

 

  

  

  

EXHIBIT H

 

FORM OF REVOLVING NOTE

 

$____________________ 

_______________, 201_

 

FOR VALUE RECEIVED, the undersigned, KITE REALTY GROUP, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”), hereby promises to pay to the order of ____________________ (the “Lender”), in care of KeyBank National Association, as Agent (the “Agent”) at Real Estate Capital, 127 Public Square, 8th Floor, Mail Code:  OH-01-27-0839, Cleveland, Ohio  44114, or at such other address as may be specified in writing by the Agent to the Borrower, the principal sum of ________________ AND ____/100 DOLLARS ($____________) (or such lesser amount as shall equal the aggregate unpaid principal amount of Revolving Loans made by the Lender to the Borrower under the Credit Agreement (as herein defined)), on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Credit Agreement.

 

The date, amount of each Revolving Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof, provided that the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower to make a payment when due of any amount owing under the Credit Agreement or hereunder in respect of the Revolving Loans made by the Lender.

 

This Note is one of the Revolving Notes referred to in the Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), the Agent, and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Credit Agreement.

 

The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of Loans upon the terms and conditions specified therein.

 

Except as permitted by Section 13.5.(d) of the Credit Agreement, this Note may not be assigned by the Lender to any other Person.

 

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

 

The Borrower hereby waives presentment for payment, demand, notice of demand, notice of nonpayment, protest, notice of protest and all other similar notices.

 

Time is of the essence for this Note.

 

 

  

  

  

 

IN WITNESS WHEREOF, the undersigned has executed and delivered this Revolving Note under seal as of the date first written above.

 

KITE REALTY GROUP, L.P.

 

	
  

	
By:

	
Kite Realty Group Trust, its sole General Partner

 

By:                                                                

 

Name:                                                                

 

Title:                                                                

 

 

  

  

  

SCHEDULE OF REVOLVING LOANS

 

This Note evidences Revolving Loans made under the within-described Credit Agreement to the Borrower, on the dates, in the principal amounts, bearing interest at the rates and maturing on the dates set forth below, subject to the payments and prepayments of principal set forth below:

 

	
Date of Loan

	
Principal

Amount of Loan

	
Amount Paid or

Prepaid

	
Unpaid Principal

Amount

	
Notation Made By

	  	  	  	  	  

 

  

  

  

EXHIBIT I

 

FORM OF COMPLIANCE CERTIFICATE

 

_______________, 201_

 

KeyBank National Association, as Agent

 

Real Estate Capital

 

1200 Abernathy Road, N.E., Suite 1550

 

Atlanta, Georgia  30328

 

Attention:  James Komperda

 

Each of the Lenders Party to the Credit Agreement referred to below

 

Ladies and Gentlemen:

 

Reference is made to that certain Third Amended and Restated Credit Agreement dated as of _____________ ___, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Kite Realty Group, L.P. (the “Borrower”), the financial institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), KeyBank National Association, as Agent (the “Agent”) and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Credit Agreement.

 

Pursuant to Section 9.3. of the Credit Agreement, the undersigned hereby certifies to the Agent and the Lenders (not in his/her individual capacity but solely as an officer of the Borrower) as follows:

 

(1)           The undersigned is the _____________________ of the Borrower.

 

(2)           The undersigned has examined the books and records of the Borrower and has conducted such other examinations and investigations as are reasonably necessary to provide this Compliance Certificate.

 

(3)           To the best of the undersigned’s knowledge, no Default or Event of Default exists [if such is not the case, specify such Default or Event of Default and its nature, when it occurred and whether it is continuing and the steps being taken by the Borrower with respect to such event, condition or failure].

 

(4)           To the best of the undersigned’s knowledge, the representations and warranties made or deemed made by the Borrower and the other Loan Parties in the Loan Documents to which any is a party, are true and correct in all material respects on and as of the date hereof except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.

 

 

  

  

  

 

(5)           Attached hereto as Schedule 1 are reasonably detailed calculations establishing whether or not the Borrower and its Subsidiaries were in compliance with the covenants contained in Sections 10.1. and 10.2. of the Credit Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date first above written.

 

 

 

Name:                                                                           

 

Title:                                                                           

 

 

  

  

  

SCHEDULE 1

 

[CALCULATIONS TO BE ATTACHED]

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