Document:

Execution Version

 

AMENDMENT NUMBER THREE

TO LOAN AGREEMENT

 

This AMENDMENT NUMBER
THREE TO LOAN AGREEMENT (this “Agreement”), dated as of April 26, 2012, among MACQUARIE DISTRICT ENERGY LLC,
a Delaware limited liability company (as successor to Macquarie District Energy, Inc., the ”Borrower”);
the several banks and other financial institutions signatories hereto; PNC BANK, NATIONAL ASSOCIATION, as Issuing Bank (in such
capacity, the “Issuing Bank”); and COMMERZBANK AG NEW YORK BRANCH (as successor to Dresdner Bank AG New York
Branch), as Administrative Agent (in such capacity, the “Administrative Agent”).

 

RECITALS

 

A.           The
parties hereto are parties to the Loan Agreement dated as of September 21, 2007 by and among the Borrower, the several banks and
other financial institutions from time to time parties thereto as lenders (the “Lenders”), Bank of America,
N.A. (as successor to LaSalle Bank National Association), as then issuing bank, and the Administrative Agent, as amended by Amendment
Number One, dated December 21, 2007, as further amended by Amendment Number Two, dated February 22, 2008 (collectively, the “Loan
Agreement”), pursuant to which the Lenders have agreed to provide certain loans to the Borrower for the purposes and
upon the terms and conditions set forth therein.

 

B.           The
Borrower and certain Lenders have agreed to extend the maturity date of the Revolving Credit Facility.

 

C.           The
Borrower and the Lenders have agreed to amend (i) the mandatory prepayment provisions contained in Section 2.9(c)(xi) of
the Loan Agreement, (ii) Schedule 2.1 with respect to the Commitment of each Lender, (iii) the interest provision with respect
to the Revolving Loan contained in Section 2.4(a) of the Loan Agreement, (iv) the provision regarding commitment fees with
respect to the Revolving Loan contained in Section 2.10(a) of the Loan Agreement, (v) the provision regarding fronting fees
with respect to the Letters of Credit paid to the Issuing Bank contained in Section 2.10(b) of the Loan Agreement, (vi)
the restriction on Distributions, and (vii) the definitions of “Applicable Margin,” “Issuing Bank,” “Maturity
Date,” “FFO,” “Capital Expenditure Loan Commitment Termination Date” and “Revolving Loan Commitment
Termination Date” in the Loan Agreement, as set forth herein.

 

D.           The
Borrower acknowledges that the Excess Cash Flow sweep set forth in Section 2.9(c)(vi) shall commence as of September
30, 2012.

 

NOW THEREFORE, the
parties hereto hereby agree as follows:

 

Section 1.  Definitions
and Rules of Interpretation. All capitalized terms used but not defined in this Agreement shall have the respective meanings
specified in the Loan Agreement. The rules of interpretation set forth in Section 1 of the Loan Agreement shall apply to
this Agreement, mutatis mutandis, as if set forth herein.

 

    	 

    	 

    

 

Section 2.  Amendment
to Loan Agreement. 

 

a.  The
mandatory prepayment provision in Section 2.9(c)(xi) of the Loan Agreement is hereby deleted and replaced in its entirety
with the following:

 

“All
partial prepayments of the Loans made pursuant to Section 2.9(c)(i) through (viii) shall be applied to prepay the outstanding
Capital Expenditure Loans, then to the Term Loans and, after the Capital Expenditure Loans and the Term Loans have been paid in
full, thereafter applied to prepay the outstanding Revolving Loans. All partial prepayments of the Loans made pursuant to Section 2.9(c)(ix)
shall be applied to prepay the Revolving Loan. All partial prepayments of the Loans made pursuant to Section 2.9(c)(x)
shall be applied to prepay the Capital Expenditure Loan.”

 

b.  Schedule
2.1 of the Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

SCHEDULE 2.1

Commitments
and Pro Rata Shares

 

	Lender	 	Term Loan
 Commitment	 	 	Term 

Loan Pro 

Rata
 Share	 	 	Capital
 Expenditure 
 Loan
 Commitment	 	 	Capital
 Expenditure
 Loan Pro 
 Rata Share	 	 	Revolving 
 Loan
 Commitment	 	 	Revolving
 Loan Pro
 Rata 
 Share	 
	Bank of America, N.A.	 	$	46,936,339.52	 	 	 	31.3	%	 	$	6,591,551.94	 	 	 	32.9	%	 	 	0	 	 	 	N/A	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Commerzbank AG	 	$	45,212,201.59	 	 	 	30.1	%	 	$	5,694,960.21	 	 	 	28.5	%	 	 	0	 	 	 	N/A	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Westpac Banking Corporation	 	$	30,000,000	 	 	 	20.0	%	 	$	4,000,000	 	 	 	20.0	%	 	 	0	 	 	 	N/A	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PNC Bank, National Association	 	$	19,893,899.21	 	 	 	13.3	%	 	$	2,652,519.89	 	 	 	13.3	%	 	$	7,400,000	 	 	 	88.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mega International Commercial Bank Co., Ltd.	 	$	7,957,559.68	 	 	 	5.3	%	 	$	1,061,007.96	 	 	 	5.3	%	 	$	981,000	 	 	 	11.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total:	 	$	150,000,000	 	 	 	100	%	 	$	20,000,000	 	 	 	100	%	 	$	8,381,000	 	 	 	100	%

 

c.  Section
2.4(a) of the Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

“Each
LIBOR Loan shall bear interest during each Interest Period at a rate per annum equal to LIBOR for such Interest Period plus
the Applicable Margin. Each Base Rate Loan shall bear interest at a rate per annum equal to the Base Rate; provided that
with respect to a Revolving Loan that is a Base Rate Loan, such Loan shall bear interest at a rate per annum equal to the Base
Rate plus 1.25%.”

 

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d.  Section
2.10(a) of the Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

“Commitment
Fees. The Borrower agrees to pay to the Administrative Agent for the account of each Lender, as applicable, a commitment fee
equal to 30% of the Applicable Margin for Loans other than Revolving Loans per annum on the daily amount of the Available Commitment,
as applicable, of such Lender during the period from and including the date hereof to but excluding the last day of the Commitment
Period, as applicable; provided that with respect to Revolving Loans, the Borrower agrees to pay to the Administrative Agent
for the account of each Revolving Loan Lender, as applicable, a commitment fee equal to 0.35% of the Available Revolving Loan Commitment
of such Lender during the period from and including the date hereof to but excluding the last day of the Revolving Loan Commitment
Period. Accrued commitment fees shall be payable in arrears on the Effective Date and on the last Business Day of each March, June,
September and December thereafter, commencing on the first of such dates to occur after the Effective Date, and on the last day
of the applicable Commitment Period. All commitment fees shall be calculated on the basis of a year of 360 days and for the actual
days elapsed (including the first day but excluding the last day).”

 

e.  In Section
2.10(b)(ii) of the Loan Agreement the fronting fee paid to the Issuing Bank shall accrue at a rate of 0.25% per annum for any
Letter of Credit issued after April 24, 2012.

 

f.  The
definition of “Applicable Margin” in Section 1.1 of the Loan Agreement is hereby deleted and replaced in its
entirety with the following:

 

“Applicable
Margin” means, for each day, 1.175% per annum; provided that with respect to Revolving Loans, “Applicable
Margin” means 2.25% per annum.

 

g.  The
definition of “Issuing Bank” in Section 1.1 of the Loan Agreement is hereby deleted and replaced in its entirety
with the following:

 

“Issuing
Bank” means PNC Bank, National Association, in its capacity as the issuer of Letters of Credit hereunder, and its successors
in such capacity as provided in Section 2.14; provided that for the purpose of any outstanding Letters of Credit
issued prior to April 24, 2012, any such reference will be deemed to refer to Bank of America, N.A. The Issuing Bank may, in its
discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing
Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

 

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h.  The
definition of “Maturity Date” in Section 1.1 of the Loan Agreement is hereby deleted and replaced in its entirety
with the following:

 

“Maturity
Date” means the date that is seven (7) years after the Effective Date; provided that if any such date is a day
other than a Business Day, the Maturity Date shall be the next succeeding Business Day unless such next succeeding Business Day
falls in the next calendar month, in which case the Maturity Date shall be the prior preceding Business Day.

 

i.  In the
definition of “FFO” in Section 1.1 of the Loan Agreement, clause (g) is hereby deleted and replaced in its entirety
with the following:

 

any corporate
allocation expenses from MIC, provided that such expenses shall not exceed $1,000,000, provided, further that
payment of such an expense would be allowed under Section 7.6,

 

j.  In the
definition of “Capital Expenditure Loan Commitment Termination Date” in Section 1.1 of the Loan Agreement, the
phrase “the earliest of” shall be changed to “the later of.”

 

k. In the definition
of “Revolving Loan Commitment Termination Date” in Section 1.1 of the Loan Agreement, the phrase “the
earliest of” shall be changed to “the later of.”

 

l.  A new
clause (g) shall be added to Section 7.6 of the Loan Agreement reading as follows:

 

(g) 
The Borrower or its Subsidiaries shall not make any Distributions (other than Distributions made by a Subsidiary to any Loan Party)
or set apart any sum for any such purpose, except for Distributions to MDE Parent to pay taxes due by the Loan Parties.

 

Section 3.  No
Further Waiver or Amendment. Except to the extent that provisions of the Loan Agreement are amended as expressly set forth
in Section 2 hereof, the execution and delivery hereof shall not (a) operate as a modification or waiver of any right, power
or remedy of the Financing Parties or the Collateral Agent under any of the Loan Documents, (b) cause a novation with respect to
any of the Loan Documents, or (c) extinguish or terminate any obligations of the Borrower under the Loan Documents.

 

Section 4.  Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

 

Section 5.  Severability.
If any provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity and enforceability of
the remaining provisions of this Agreement shall not be affected or impaired thereby. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

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Section 6.  Headings.
The headings in this Agreement have been included herein for convenience of reference only, are not part of this Agreement, and
shall not be taken into consideration in interpreting this Agreement.

 

Section 7.  Entire
Agreement. This Agreement comprises the complete and integrated agreement of the parties hereto on the subject matter hereof
and supersedes all prior agreements, written or oral, on such subject matter.

 

Section 8.  Counterparts.
This Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Agreement signed by all the
parties shall be maintained by the Borrower and the Administrative Agent.

 

[Signature pages follow.]

 

 

    	5

    	 

    

 

 

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

 

	 	MACQUARIE DISTRICT ENERGY LLC, as Borrower
	 	 
	 	By:	/s/ David A. Bump
	 	 	 
	 	Name:	David A. Bump
	 	Title:	President & CFO

 

Amendment
No. 3 to Macquarie District Energy Loan Agreement

  

    	 

    	 

    

 

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

 

	 	COMMERZBANK AG NEW YORK BRANCH, as Administrative Agent and Lender
	 	 	 
	 	By:	/s/ Ryan Flohre
	 	 	 
	 	Name:	Ryan Flohre
	 	Title:	Director
	 	 	 
	 	By:	/s/ Brian Schneider
	 	 	 
	 	Name:	Brian Schneider
	 	Title:	Director

 

Amendment No. 3 to Macquarie
District Energy Loan Agreement

 

    	 

    	 

    

 

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

 

	 	BANK OF AMERICA, N.A., as Lender
	 	 
	 	By:	/s/ Carlos Morales
	 	 	 
	 	Name:	Carlos Morales
	 	Title:	SVP

 

Amendment No. 3 to Macquarie
District Energy Loan Agreement

 

    	 

    	 

    

 

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

 

	 	WESTPAC BANKING CORPORATION, as Lender
	 	 
	 	By:	/s/ Sean Crellin
	 	 	 
	 	Name:	Sean Crellin
	 	Title:	Director Legal

 

Amendment No. 3 to Macquarie
District Energy Loan Agreement

 

    	 

    	 

    

 

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

 

	 	PNC BANK, NATIONAL ASSOCIATION, as Issuing Bank
	 	 	 
	 	By:	/s/ Corey Noland
	 	 	 
	 	Name:	Corey Noland
	 	Title:	Vice President
	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as Lender
	 	 	 
	 	By:	/s/ Corey Noland
	 	 	 
	 	Name:	Corey Noland
	 	Title:	Vice President

 

Amendment No. 3 to Macquarie
District Energy Loan Agreement

 

    	 

    	 

    

 

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

 

	 	MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD., as Lender
	 	 
	 	By:	/s/ Ko, Yi-Ming
	 	 	 
	 	Name:	Ko, Yi-Ming
	 	Title:	VP & General Manager

 

Amendment No. 3 to Macquarie
District Energy Loan AgreementEXHIBIT 4.1

 

Specimen Authorization Card –
American Stock Transfer & Trust Company, LLC

 

AUTHORIZATION CARD

 

MONMOUTH REAL ESTATE INVESTMENT CORPORATION
DIVIDEND REINVESTMENT AND

STOCK PURCHASE PLAN

 

I wish to participate in the Dividend Reinvestment
and Stock Purchase Plan (the “Plan”) for the purchase of whole and partial shares of Common Stock (“Shares”)
of Monmouth Real Estate Investment Corporation (the “Company”) as follows:

 

 ̈            FULL
DIVIDEND REINVESTMENT. I want to reinvest dividends on all Shares now or hereafter registered in my name and on all Shares held
for me by American Stock Transfer & Trust Company, LLC (the “Plan Administrator”). I may also make optional cash
deposits.

 

 ̈            PARTIAL
DIVIDEND REINVESTMENT. I want to reinvest cash dividends on only ________ Shares registered in my name and want my cash dividends
on the rest of my Shares. I understand that dividends on all Shares held for me by the Plan Administrator will be reinvested. I
may also make optional cash deposits.

 

 ̈            OPTIONAL
CASH DEPOSITS ONLY. I want to make only optional cash deposits. I do not want to reinvest dividends on Shares registered in my
name. I understand that dividends on all Shares held for me by the Plan Administrator will be reinvested. My check in the amount
of $___________ is enclosed.

 

My participation is subject to the provisions
of the Plan as set forth in the Prospectus relating to the Shares offered pursuant to the Plan.

 

	
 	 	

	Social Security or Tax I.D. No.	 	Date
	 	 	 
	
	 	

	Print Name(s) of Registered Owner(s)	 	Signature(s) of Registered owner(s)

 

Make checks payable to and mail to: American
Stock Transfer & Trust Company, P.O. Box 922, Wall Street Station, New York, NY 10269-0560.

 

STOCKHOLDERS ALL OF WHOSE SHARES ARE IN
NOMINEE OR STREET NAME ONLY MAY ELECT OPTIONAL CASH PAYMENTS. CERTIFICATION ON THE REVERSE OF CARD MUST BE COMPLETED.

 

    	 

    	 

    

 

OWNER CERTIFICATION OF SHARES IN STREET
OR NOMINEE NAME

AND ENROLLMENT IN PLAN

 

(TO BE USED ONLY BY STOCKHOLDERS

ALL OF WHOSE SHARES ARE IN NOMINEE
OR STREET NAME)

 

Name of Broker or Nominee Holding Shares
for Stockholder:

 

___________________________________________________________

 

Number of Shares held by Broker or Nominee:
______________

 

I wish to make optional cash payments to
the Plan. My check in the amount of $______ is enclosed. My Plan Account is to be maintained as follows (PLEASE PRINT):

 

	 	 	 	 	 
	Name	Street	City	State	Zip

 

	

	 
	Social Security/Tax I.D. No.

 

	 	 
	 	Date

 

I HEREBY CERTIFY THAT I AM THE OWNER OF
THE SHARES OF MONMOUTH REAL ESTATE INVESTMENT CORPORATION INDICATED ABOVE.

 

	 	 
	 	Signature

 

IF ADDRESS IS NOT PROPERLY SHOWN, PLEASE
CORRECT BEFORE RETURNING.

 

THIS IS NOT A PROXY.

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