Document:

Exhibit 10.1

 

Execution Version

 

FIRST AMENDMENT
 TO
 THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of December 12, 2013, is made by and among Carlisle Companies Incorporated, a Delaware corporation (“Carlisle”), Carlisle Corporation, a Delaware corporation (“CC” and together with Carlisle, herein the “Co-Borrowers”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the financial institutions (collectively the “Banks”) party to the hereinafter-defined Credit Agreement and the undersigned Banks.

 

W I T N E S S E T H:

 

WHEREAS, Carlisle, Carlisle Management Company (“CMC”), the Administrative Agent and the Banks entered into that certain Third Amended and Restated Credit Agreement dated as of October 20, 2011 (the “Credit Agreement”);

 

WHEREAS, after the execution of the Credit Agreement, CMC and Carlisle merged, with Carlisle being the surviving entity;

 

WHEREAS, Carlisle desires to name CC as a co-borrower under the Credit Agreement; and

 

WHEREAS, the Co-Borrowers, the Administrative Agent and the Banks desire to enter into this Amendment to, among other things, name CC as a co-borrower under and extend the term of the Credit Agreement.

 

NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties herein set forth, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Co-Borrowers, the Administrative Agent and the undersigned Banks do hereby agree as follows:

 

1.                                      Amendments to the Credit Agreement.  Effective as of the date of satisfaction of the conditions precedent set forth in Section 2 below, the parties hereto agree that the Credit Agreement is hereby amended as follows:

 

(a)                                 The introductory language of the Credit Agreement is hereby amended to replace the phrase “CARLISLE MANAGEMENT COMPANY, a Delaware corporation (“CMC” and together with Carlisle, herein the “Co-Borrowers”)” with the phrase “CARLISLE CORPORATION, a Delaware corporation (“CC” and together with Carlisle, herein the “Co-Borrowers”)”, and the Credit Agreement is hereby amended to replace any reference to the defined term “CMC” appearing therein with the defined term “CC”.

 

(b)                                 Section 1.01 of the Credit Agreement is hereby amended to insert the following new definitions in the appropriate alphabetical order:

 

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Co-Borrower or its subsidiaries from time to time concerning or relating to bribery or corruption.

 

 

“Business Day” means either Available Currency Business Day, Domestic Business Day, or Euro-Dollar Business Day, as the context herein requires; provided that if such context is ambiguous or unclear, the term “Business Day” means Domestic Business Day.

 

“CDOR Screen Rate” has the meaning set forth in Section 2.08(b)(ii).

 

“Entitled Person” has the meaning set forth in Section 9.18.

 

“FATCA” has the meaning set forth in Section 8.04(a).

 

“First Amendment” means that certain First Amendment to Third Amended and Restated Credit Agreement dated as of December 12, 2013, by and among the Co-Borrowers, the Administrative Agent and the Banks party thereto.

 

“Interest Coverage Ratio” has the meaning set forth in Section 5.12.

 

“Leverage Ratio” has the meaning set forth in Section 5.11.

 

“Original Currency” has the meaning set forth in Section 9.18.

 

“Other Currency” has the meaning set forth in Section 9.18.

 

“Patriot Act” has the meaning set forth in Section 9.17.

 

“Ratio Increase” has the meaning set forth in Section 5.11.

 

“Reference Bank” has the meaning set forth in Section 2.08(b)(ii).

 

“Reuters Group” has the meaning set forth in Section 2.08(b)(ii).

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or the United Nations Security Council.

 

“Sanctioned Country” means, at any time, a country or territory which is the subject or target of any Sanctions.

 

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, or the United Nations Security Council, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person.

 

“Screen Rate” has the meaning set forth in Section 2.08(b)(ii).

 

“TARGET2 Day” means a day that the Trans-European Automated Real-time Gross Settlement Express Transfer payment system (or, if such payment system ceases to be operative, such other payment system (if any) reasonably determined

 

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by the Administrative Agent to be a suitable replacement) for the settlement of payments in euro is open for the settlement of payments in Euro.

 

(c)                                  The definition of “Agreement” appearing in Section 1.01 of the Credit Agreement is amended and restated in its entirety to read as follows:

 

“Agreement” means this Agreement (as set forth in the introduction hereto), as the same may from time to time be amended, modified, supplemented or restated, including, without limitation, by the First Amendment.

 

(d)                                 The definition of “Available Currency appearing in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Available Currency” means the Euro, British Pounds Sterling, Japanese Yen, the Canadian dollar or any other freely available currency that is (i) a lawful currency that is readily available and freely transferable and convertible into Dollars, (ii) available in the London interbank market and (iii) agreed to by the Administrative Agent and each of the Banks.  The term “Available Currency”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are denominated in an Available Currency.

 

(e)                                  The definition of “Consolidated Financial Liabilities” appearing in Section 1.01 of the Credit Agreement is hereby amended to replace the defined term “Consolidated Financial Liabilities” from line 1 thereof with the defined term “Consolidated Finance Liabilities”.

 

(f)                                   The definition of “Funding Obligors” appearing in Section 1.01 of the Credit Agreement is hereby amended to replace the defined term “Funding Obligors” from line 1 thereof with the defined term “Funding Obligor”.

 

(g)                                  Clause (1) of the definition of “Interest Period” appearing in Section 1.01 of the Credit Agreement is hereby amended to replace the phrase “two weeks or one, three, six or nine months” immediately after the reference to “Notice of Interest Rate Election and ending” appearing therein with the phrase “one, three or six months”.

 

(h)                                 Clause (2) of the definition of “Interest Period” appearing in Section 1.01 of the Credit Agreement is hereby amended to replace the phrase “two weeks or one, three, six or nine months” immediately after the reference to “Notice of Interest Rate Election and ending” appearing therein with the phrase “one, three or six months”.

 

(i)                                     The definition of “Permitted Securitized Transaction” appearing in Section 1.01 of the Credit Agreement is hereby amended to replace the defined term “Permitted Securitized Transaction” from line 1 thereof with the defined term “Permitted Securitized Transactions”.

 

(j)                                    The definition of “Quotation Date” appearing in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Quotation Date” means, with respect to any Loan for any Interest Period, (i) if the currency is British Pounds Sterling, the first day of such Interest Period, (ii) if the currency is Euro, the day that is two (2) TARGET2 Days before the first day

 

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of such Interest Period, and (iii) for any other currency, two Available Currency Business Days prior to the commencement of such Interest Period (unless, in each case, market practice differs in the relevant market where the applicable Screen Rate for such currency is to be determined, in which case the Quotation Day will be determined by the Administrative Agent in accordance with market practice in such market (and if quotations would normally be given on more than one day, then the Quotation Day will be the last of those days)).

 

(k)                                 The definition of “Revolving Termination Date” appearing in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Revolving Termination Date” means December 12, 2018.

 

(l)                                     Article 1 of the Credit Agreement is hereby amended to insert the following as a new Section 1.05 thereof:

 

“SECTION 1.05.  Calculation of Financial Ratios.  The financial ratios herein, including without limitation the Leverage Ratio and the Interest Coverage Ratio, shall be calculated (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any indebtedness or other liabilities of Carlisle or any of its Subsidiaries at “fair value”, as defined therein and (ii) without giving effect to any treatment of indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such indebtedness in a reduced or bifurcated manner as described therein, and such indebtedness shall at all times be valued at the full stated principal amount thereof.”

 

(m)                             Section 2.08(b)(ii) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(ii)                            Definitions.  As used herein the following terms have the following meanings:

 

“Available Currency Rate” means, in relation to any Interest Period and the related Available Currency Borrowing:

 

(A)                               for Loans denominated in Canadian dollars, the applicable CDOR Screen Rate; or

 

(B)                               for Loans not denominated in Canadian dollars,

 

(i)                                     the applicable Screen Rate; or

 

(i)                                     if no Screen Rate is available for that Interest Period of that Borrowing, the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Administrative Agent at its request quoted by the Reference Banks to leading banks in the European interbank market as of 11.00 am (London time) on the

 

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applicable Quotation Date for the offering of deposits in the applicable currency and for a period comparable to that interest period.

 

“CDOR Screen Rate” means for the relevant Interest Period, the Canadian deposit offered rate which, in turn means on any day the sum of (a) the annual rate of interest determined with reference to the arithmetic average of the discount rate quotations of all institutions listed in respect of the relevant Interest Period for Canadian Dollar-denominated bankers’ acceptances displayed and identified as such on the “Reuters Screen CDOR Page” as defined in the International Swap Dealer Association, Inc. definitions, as modified and amended from time to time, as of 10:00 a.m.,  Toronto local time, on such day and, if such day is not a Available Currency Business Day, then on the immediately preceding Available Currency Business Day (as adjusted by Administrative Agent after 10:00 a.m., Toronto local time, to reflect any error in the posted rate of interest or in the posted average annual rate of interest) plus (b) 0.10% per annum; provided that, if such rates are not available on the Reuters Screen CDOR Page on any particular day, then the Canadian deposit offered rate component of such rate on that day shall be calculated as the cost of funds quoted by Administrative Agent to raise Canadian Dollars for the applicable Interest Period as of 10:00 a.m., Toronto local time, on such day for commercial loans or other extensions of credit to businesses of comparable credit risk; or if such day is not a Available Currency Business Day, then as quoted by the Administrative Agent on the immediately preceding Available Currency Business Day

 

“Reference Banks” means the Administrative Agent and any other bank or financial institution appointed as such by the Administrative Agent in consultation with Carlisle.

 

“Reuters Group” means the division or subsidiary of Thomson Reuters Corporation providing electronic quotations of rates.

 

“Screen Rate” means the percentage rate per annum displayed for the applicable Available Currency on the LIBOR01 or LIBOR02 page of the Reuters Group screen as determined by the Administrative Agent.”

 

(n)                                 Section 2.08(f) of the Credit Agreement is hereby amended by inserting the following after the first sentence appearing therein:

 

“The Available Currency Rate in respect of Loans not denominated in Canadian dollars shall be calculated to include applicable statutory reserve requirements for eurocurrency liabilities.”

 

(o)                                 The last sentence of Section 2.15 of the Credit Agreement is hereby amended in its entirety to read as follows:

 

“All other interest and fees shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day); except interest computed by reference to the CDOR Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year)

 

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and interest for borrowings denominated in British Pounds Sterling shall be computed on the basis of a year of 365 days.”

 

(p)                                 Section 3.03 of the Credit Agreement is hereby amended to replace the word “Sections” appearing immediately before the number “2.14” appearing therein with the word “Section”.

 

(q)                                 Section 4.12 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“SECTION 4.12.  Anti-Corruption Laws and Sanctions.  Carlisle has implemented and maintains in effect policies and procedures designed to ensure compliance by Carlisle, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and Carlisle, its Subsidiaries and their respective officers and employees and, to the knowledge of Carlisle, its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  Carlisle, any of its Subsidiaries or any of their respective directors, officers or employees  and, to the knowledge of Carlisle, any agent of Carlisle or any subsidiary that will act in any capacity in connection with or benefit from this Agreement, are not Sanctioned Persons.  No Borrowing or Letters of Credit, use of proceeds or other transaction contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions.”

 

(r)                                    Section 5.05 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“SECTION 5.05. Compliance with Laws.  Carlisle will comply, and cause each Subsidiary to comply, in all material respects with all applicable laws, ordinances, rules, regulations, and requirements of governmental authorities (including, without limitation, Environmental Laws, ERISA, Anti-Corruption Laws, applicable Sanctions and the rules and regulations thereunder) except (x) where the necessity of compliance therewith is contested in good faith by, appropriate proceedings or (y) where the failure to comply could not reasonably be expected to have a Material Adverse Effect. Carlisle will maintain in effect and enforce policies and procedures designed to ensure compliance by Carlisle, its Subsidiaries and their respective directors, officers, employees and agents with  Anti-Corruption Laws and applicable Sanctions.”

 

(s)                                   The last sentence of Section 5.08 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“None of such proceeds will be used, directly or indirectly, (i) for the purpose, whether immediate, incidental or ultimate, of buying or carrying any “margin stock” within the meaning of Regulation U, (ii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (iii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country or (iv) in any manner that would result in the violation of  any Sanctions applicable to any party hereto.”

 

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(t)                                    The first sentence of Section 5.11 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“The Leverage Ratio will at no time exceed 3.50 to 1.00; provided, however, that Carlisle may request, up to two times before the Revolving Credit Termination Date and upon an acquisition by Carlisle of $200,000,000 or greater, an increase in the Leverage Ratio to 4.00 to 1.00 (the “Ratio Increase”); provided further that the Ratio Increase shall only be in effect for three consecutive quarters following the consummation of such acquisition, after which the Leverage Ratio will revert back to 3.50 to 1.00.”

 

(u)                                 Section 8.03(a) of the Credit Agreement is hereby amended to replace the phrase “special deposit, insurance assessment or similar requirement” immediately before the reference to “against the assets of” appearing therein with the following phrase:

 

“special deposit, liquidity, insurance assessment or similar requirement (including any compulsory loan requirement, insurance charge or other assessment)”

 

(v)                                 Section 8.03(b) of the Credit Agreement is hereby amended to (x) insert the words “regarding capital or liquidity requirements” immediately after the reference to “Change in Law” appearing therein and (y) insert the words “and liquidity” immediately after the reference to “capital adequacy” appearing therein.

 

(w)                               Section 8.08(c)(ii) of the Credit Agreement is hereby amended to replace the section reference “Section 2.20(c)” appearing therein with section reference “Section 8.08(c)”.

 

(x)                                 Section 9.06(c)(i) of the Credit Agreement is hereby amended to (x) insert the word “eligible” immediately after the reference to “participations to one or more” appearing therein and (y) insert the word “eligible” immediately before the reference to “entities” appearing therein.

 

(y)                                 Section 9.17 of the Credit Agreement is hereby amended to replace all references to the defined term “Act” appearing therein with the defined term “Patriot Act”.

 

(z)                                  Schedule 1.01 of the Credit Agreement is hereby replaced in its entirety with Annex I to this Amendment.

 

(aa)                          Schedule 1.01(a) of the Credit Agreement is hereby replaced in its entirety with Annex II to this Amendment.

 

(bb)                          Schedule 1.01(b) of the Credit Agreement is hereby deleted in its entirety.

 

(cc)                            Schedule 4.09 of the Credit Agreement is hereby replaced in its entirety with Annex III to this Amendment.

 

2.                                      Available Currency Commitment and Revolving Commitment.  On the First Amendment Effective Date (as defined below), the Available Currency Commitment and the Revolving Commitment of each Bank shall be as set forth on Annex I to this Amendment.  Each Bank hereby consents and agrees to the Available Currency Commitment and the Revolving Commitment set forth on Annex I to this Amendment.

 

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3.                                      Pricing Schedule.  On the First Amendment Effective Date, the Pricing Schedule shall be as set forth on Annex II to this Amendment.  Carlisle consents and agrees to the Pricing Schedule set forth on Annex II to this Amendment.

 

4.                                      Conditions Precedent.  This Amendment shall not become effective until the date on which each of the following conditions is satisfied:

 

(a)                                 a counterpart of this Amendment signed on behalf of each party hereto or written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Amendment;

 

(b)                                 an opinion of Steven J. Ford, Esq., Vice President, Secretary and General Counsel of Carlisle, substantially in the form of Exhibit A hereto and covering such additional matters relating to the transactions contemplated hereby as the Required Banks may reasonably request;

 

(c)                                  all fees and other amounts due and payable on or prior to the First Amendment Effective Date, including, without limitation, the upfront fees Carlisle and the Administrative Agent have agreed to pay to each Bank;

 

(d)                                 all documents the Administrative Agent may reasonably request relating to the existence of the Co-Borrowers, the corporate authority for and the validity of the Loan Documents and any other matters relevant hereto, all in form and substance satisfactory to the Administrative Agent;

 

(e)                                  all Governmental Authority and third party approvals necessary or, in the discretion of the Administrative Agent, advisable in connection with the financing contemplated hereby and the continuing operations of the Co-Borrowers and their respective subsidiaries shall have been obtained and be in full force and effect; and

 

(f)                                   all documentation and other information required by regulatory authorities with respect to the Co-Borrowers under applicable Anti-Terrorism Laws and Anti-Corruption Laws, including without limitation the Patriot Act, in each case at least 5 Business Days in advance of the First Amendment Effective Date.

 

The Administrative Agent shall promptly notify Carlisle and the Banks of the date when all documents required to be delivered as a condition to the effectiveness of this Amendment have been delivered (the “First Amendment Effective Date”) and such notice shall be conclusive and binding on all parties hereto. The execution of this Amendment by the Co-Borrowers shall be deemed to be a representation and warranty by Carlisle on the First Amendment Effective Date as to the facts specified in clauses (c), (d) and (e) of Section 3.02 of the Credit Agreement.

 

5.                                      Representations and Warranties of Carlisle.  Carlisle hereby represents and warrants as follows:

 

(a)                                 This Amendment and the Credit Agreement as amended hereby constitute legal, valid and binding obligations of the Co-Borrowers, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law; and

 

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(b)                                 As of the date hereof and after giving effect to the terms of this Amendment, (i) no Default or Event of Default has occurred and is continuing and (ii) the representations and warranties of Carlisle set forth in the Credit Agreement are true and correct on and as of the date hereof.

 

6.                                      Ratification. Except as expressly amended hereby, the Loan Documents shall remain in full force and effect. The Credit Agreement, as hereby amended, and all rights and powers created thereby or thereunder and under the other Loan Documents are in all respects ratified and confirmed and remain in full force and effect.

 

7.                                      Definitions and References.  Any term used in this Amendment that is defined in the Credit Agreement shall have the meaning therein ascribed to it.  The terms “Agreement” and “Credit Agreement” as used in the Loan Documents or any other instrument, document or writing furnished to the Administrative Agent or the Lenders by the Borrower and referring to the Credit Agreement shall mean the Credit Agreement as hereby amended.

 

8.                                      Governing Law.  This Amendment shall be construed in accordance with and governed by the laws of the State of New York.

 

9.                                      Miscellaneous.  This Amendment (a) shall be binding upon and inure to the benefit of the Co-Borrowers, the Administrative Agent and the Banks and their respective successors and assigns (provided, however, no party may assign its rights hereunder except in accordance with the Credit Agreement), (b) may be modified or amended only in accordance with the Credit Agreement, (c) may be executed in several counterparts, and by the parties hereto on separate counterparts, and each counterpart, when so executed and delivered, shall constitute an original agreement, and all such separate counterparts shall constitute but one and the same agreement, and (d) together with the other Loan Documents, embodies the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior agreements, consents and understandings relating to such subject matter.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy or as an attachment to an email shall be effective as delivery of a manually executed counterpart of this Amendment.

 

[Signature Pages Follow]

 

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

 

	
 
    	
CARLISLE   COMPANIES INCORPORATED CARLISLE CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Steven Ford
    
	
 
    	
 
    	
Steven   Ford, Chief Financial Officer
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A., as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Antje B. Focke
    
	
 
    	
 
    	
Antje   B. Focke, Senior Underwriter
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
WELLS   FARGO BANK, N.A., as a Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott Santa Cruz
    
	
 
    	
 
    	
Scott   Santa Cruz, Managing Director
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
BANK   OF AMERICA, N.A., as a Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mike Delaney
    
	
 
    	
 
    	
Mike   Delaney, Director
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
SUNTRUST   BANK, as a Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Johnetta Bush
    
	
 
    	
 
    	
Johnetta   Bush, Vice President
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
THE   BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   George Stoecklein
    
	
 
    	
 
    	
George   Stoecklein, Director
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
MIZUHO   BANK, LTD., as a Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Lim
    
	
 
    	
 
    	
David   Lim, Authorized Signatory
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
T.D.   BANK, N.A., as a Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bernadette Collins
    
	
 
    	
 
    	
Bernadette   Collins, Senior Vice President
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
HSBC   BANK USA, NATIONAL ASSOCIATION, as a Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Russ Fallis
    
	
 
    	
 
    	
Russ   Fallis, Vice President
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION, as a Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jessica F. Sidhom
    
	
 
    	
 
    	
Jessica   F. Sidhom, Vice President
    

 

Signature Page
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

EXHIBIT A

 

Opinion of
 Counsel for the Co-Borrowers

 

December 12, 2013

 

To the Banks and the Administrative Agent
 Referred to Below
 c/o JPMorgan Chase Bank, N.A., as Administrative Agent
 13777 Ballantyne Corporate Place
 Charlotte, NC 28277

 

Dear Sirs:

 

I am Vice President, Secretary and General Counsel of Carlisle Companies Incorporated (“Carlisle”) and Secretary of Carlisle Corporation (“CC” and together with Carlisle, herein the “Co-Borrowers”), and in my capacity as an employee of Carlisle, I have participated in the execution and delivery of the First Amendment (the “First Amendment”) to Third Amended and Restated Credit Agreement dated as of December 12, 2013 among the Co-Borrowers, the Banks party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Credit Agreement”).  Terms defined in the First Amendment are used herein as therein defined.  This opinion is being rendered to you pursuant to Section 4 of the First Amendment.

 

I have examined originals or copies, certified or otherwise identified to my satisfaction, of such documents, corporate records, certificates of public officials and other instruments and have conducted such other investigations of fact and law as I have deemed necessary or advisable for purposes of this opinion.

 

The opinions expressed in this letter are limited to the laws of the States of New York and Delaware and the Federal laws of the United States of America.

 

Upon the basis of the foregoing, I am of the opinion that:

 

1.                                      Each Co-Borrower is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted.

 

2.                                      The execution, delivery and performance by each Co-Borrower of the First Amendment are within the corporate powers of each Co-Borrower, have been duly authorized by all necessary corporate action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not contravene, or constitute a default under, any provision of applicable law or regulation or of the certificate of incorporation or by—laws of either Co-Borrower or of any agreement, judgment, injunction, order, decree or other instrument binding upon Carlisle or any of Carlisle’s Material Subsidiaries or result in the creation or imposition of any Lien on any asset of Carlisle or any of Carlisle’s Material Subsidiaries.

 

3.                                      The Credit Agreement as amended by the First Amendment constitutes a valid and binding agreement of each Co-Borrower constitutes a valid and binding obligation of each Co-Borrower,

 

Exhibit A

to

First Amendment to Third Amended and Restated Credit Agreement

 

 

in each case enforceable in accordance with its terms except as the same may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and by general principles of equity.

 

4.                                      There is no action, suit or proceeding pending against, or to the best of our knowledge threatened against or affecting, Carlisle or any of Subsidiaries of Carlisle before any court or arbitrator or any governmental body, agency or official, in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business, consolidated financial position or consolidated results of operations of Carlisle and Carlisle’s Consolidated Subsidiaries, considered as a whole, or which in any manner draws into question the validity of the First Amendment.

 

5.                                      Each of Carlisle’s corporate Subsidiaries is a corporation validly existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted except where the failure to have such powers, licenses, authorizations, consents or approvals could not reasonably be expected to have a Material Adverse Effect.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

 

ANNEX I

 

Commitments

 

	
Bank
    	
 
    	
Available
   Currency 
   Commitment
    	
 
    	
Revolving 
   Commitment
    	
 
    
	
JPMorgan Chase   Bank, N.A.
    	
 
    	
$
    	
41,093,750
    	
 
    	
$
    	
82,187,500
    	
 
    
	
Wells Fargo Bank,   N.A.
    	
 
    	
$
    	
41,093,750
    	
 
    	
$
    	
82,187,500
    	
 
    
	
Bank of America,   N.A.
    	
 
    	
$
    	
41,093,750
    	
 
    	
$
    	
82,187,500
    	
 
    
	
SunTrust Bank
    	
 
    	
$
    	
41,093,750
    	
 
    	
$
    	
82,187,500
    	
 
    
	
The Bank of   Tokyo-Mitsubishi UFJ, Ltd 
    	
 
    	
$
    	
31,875,000
    	
 
    	
$
    	
63,750,000
    	
 
    
	
Mizuho   Bank, Ltd.
    	
 
    	
$
    	
31,875,000
    	
 
    	
$
    	
63,750,000
    	
 
    
	
T.D. Bank, N.A.
    	
 
    	
$
    	
31,875,000
    	
 
    	
$
    	
63,750,000
    	
 
    
	
HSBC Bank USA,   National Association
    	
 
    	
$
    	
20,000,000
    	
 
    	
$
    	
40,000,000
    	
 
    
	
PNC Bank, National   Association
    	
 
    	
$
    	
20,000,000
    	
 
    	
$
    	
40,000,000
    	
 
    
	
Total Commitments
    	
 
    	
$
    	
300,000,000.00
    	
 
    	
$
    	
600,000,000.00
    	
 
    

 

Annex I
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

ANNEX II

 

Pricing Schedule

 

Each of “Euro—Dollar Margin”, “Base Margin”, and “Facility Fee Rate” means, for any date, the rate per annum set forth below in the row opposite such term and in the column corresponding to the Pricing Level that applies at such date:

 

	
Margin
    	
 
    	
Level I
    	
 
    	
Level
   II
    	
 
    	
Level
   III
    	
 
    	
Level
   IV
    	
 
    	
Level V
    	
 
    	
Level VI
    	
 
    
	
Euro—Dollar   Margin 
    	
 
    	
0.825
    	
%
    	
0.925
    	
%
    	
1.125
    	
%
    	
1.325
    	
%
    	
1.525
    	
%
    	
1.725
    	
%
    
	
Base   Margin
    	
 
    	
0.00
    	
%
    	
0.00
    	
%
    	
0.125
    	
%
    	
0.325
    	
%
    	
0.525
    	
%
    	
0.725
    	
%
    
	
Facility   Fee Rate
    	
 
    	
0.05
    	
%
    	
0.075
    	
%
    	
0.125
    	
%
    	
0.175
    	
%
    	
0.225
    	
%
    	
0.275
    	
%
    

 

For purposes of this Schedule, the following terms have the following meanings:

 

“Level I” applies at any date if, at such date, Carlisle’s senior unsecured bank or other unsecured senior debt is rated A- or higher by S&P or A3 or higher by Moody’s.

 

“Level II” applies at any date if, at such date, Carlisle’s senior unsecured bank or other unsecured senior debt is rated BBB+ by S&P or Baa1 by Moody’s.

 

“Level III” applies at any date if, at such date, Carlisle’s senior unsecured bank or other unsecured senior debt is rated BBB by S&P or Baa2 by Moody’s.

 

“Level IV” applies at any date if, at such date, Carlisle’s senior unsecured bank or other unsecured senior debt is rated BBB— by S&P or Baa3 by Moody’s.

 

“Level V” applies at any date if, at such date, Carlisle’s senior unsecured bank or other unsecured senior debt is rated BB+ by S&P or Bal by Moody’s.

 

“Level VI” applies at any date, if at such date, no other Pricing Level applies.

 

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

 

“Pricing Level” refers to the determination of which of Level I, Level II, Level III, Level IV, Level V or Level VI applies at any date.

 

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

 

The credit ratings to be utilized for purposes of this Schedule are those assigned to the senior unsecured bank debt of Carlisle without third—party credit enhancement and any rating assigned to any other debt security of Carlisle shall be disregarded.  The rating in effect at any date is that in effect at the close of business on such date.  The applicable “Pricing Level” for purposes of this definition shall be the Pricing Level set forth above which corresponds with such credit ratings.  In the event the ratings assigned by S&P or Moody’s fall in different Pricing Levels, the Pricing Level to be used shall be the Pricing Level containing the highest rating; provided that if the difference is more than one full rating category (with changes in the +, - or numerical modifiers associated with the ratings being considered one full rating category for purposes of this proviso), the Pricing Level to be used shall be the Pricing Level

 

Annex II
 to
 First Amendment to Third Amended and Restated Credit Agreement

 

 

containing the rating which is one above the lowest rating assigned.  If the rating system of S&P or Moody’s shall change or if S&P and Moody’s both no longer rate the unsecured senior bank debt of Carlisle, the parties hereto shall negotiate in good faith to amend the references to specific ratings in this definition (including by way of substituting another rating agency mutually acceptable to Carlisle and the Administrative Agent for the rating agency with respect to which the rating system has changed) to reflect such changed rating system, and if an agreement with Carlisle on this point cannot be reached, the Administrative Agent, acting in good faith, shall determine the applicable Pricing Level.  Pending agreement on such amendment or the Administrative Agent’s determination, the rating in effect immediately prior to such change will be used in determining the Pricing Level hereunder.  As of the Closing Date, the Pricing Level is Level III.

 

 

ANNEX III

 

Material Subsidiaries

 

Carlisle Companies Incorporated

Carlisle Brake & Friction, Inc.

Friction Products Co.

Carlisle Corporation

Carlisle Transportation Products, Inc.

Carlisle Construction Materials Incorporated

Carlisle Coatings & Waterproofing Incorporated

Carlisle TPO, Inc.

Carlisle Interconnect Technologies, Inc.

Carlyle Holdings, Inc.

Carlisle Insurance Company

Carlisle FoodService Products Incorporated

Carlisle Industrial Brake & Friction, Inc.

Carlisle International BV

Carlisle Holding Ltd.

Carlisle Asia Pacific Ltd.

Carlisle Brake Products (Hangzhou) Co. Ltd.

Carlisle (Meizhou) Rubber Products Co. Ltd.

CSL Manufacturing CV

Carlisle Canada

S. K. Wellman SpA

Carlisle Holdings GmbH

Carlisle Construction Materials GmbH

CSL International CV

Carlisle Holdings BV
 Tri-Star Electronics International, Inc.
 Carlisle Interconnect Technologies (Dongguan) Co., Ltd.
 Hertalan Holding BV

 

Annex III
 to
 First Amendment to Third Amended and Restated Credit AgreementExhibit 4.1

	
 
    

 

CUBESMART, L.P.,

 

Issuer,

 

and

 

CUBESMART,

 

Parent Guarantor,

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

Trustee

 

 

Second Supplemental Indenture

 

Dated as of December 17, 2013

 

To

 

Indenture

 

Dated as of September 16, 2011

 

 

4.375% SENIOR NOTES DUE 2023

	
 
    

 

 

SECOND SUPPLEMENTAL INDENTURE, dated as of December 17, 2013 (the “Second Supplemental Indenture”), among CUBESMART, L.P., a limited partnership formed under the laws of Delaware (the “Issuer”), CUBESMART, a real estate investment trust formed under the laws of Maryland and the sole general partner and a limited partner of the Issuer (the “Parent Guarantor”), and U.S. BANK NATIONAL ASSOCIATION, as Trustee (the “Trustee”).

 

RECITALS OF THE ISSUER AND THE PARENT GUARANTOR

 

WHEREAS, the Issuer, the Parent Guarantor and the Trustee are parties to an Indenture dated as of September 16, 2011 (the “Indenture”) relating to the issuance from time to time by the Issuer of its Securities on terms to be specified at the time of issuance;

 

WHEREAS, the Issuer proposes to create under the Indenture a new series of Securities;

 

WHEREAS, Section 301 of the Indenture provides that the Issuer, the Parent Guarantor and the Trustee may enter into supplemental indentures prior to the issuance of a new series of Securities to create such series of Securities and set forth the terms of such series of Securities; and

 

WHEREAS, the consent of Holders to the execution and delivery of this Second Supplemental Indenture is not required and all the conditions and requirements necessary to make this Second Supplemental Indenture, when duly executed and delivered, a valid and binding agreement in accordance with its terms and for the purposes herein expressed, have been performed and fulfilled.

 

NOW, THEREFORE, in consideration of the premises and the purchase of Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities or series thereof (as determined by reference to principal amount, plus accrued but unpaid interest, of the Securities held by such Holders), as follows:

 

ARTICLE I

 

RELATION TO INDENTURE; DEFINITIONS

 

Section 1.1.  Relation to Indenture.  This Second Supplemental Indenture constitutes an integral part of the Indenture.

 

Section 1.2.  Definitions.  For all purposes of this Second Supplemental Indenture, except for terms defined herein or unless the context otherwise requires, capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Indenture.  In addition, the following terms shall have the following meanings to be equally applicable to both the singular and plural forms of the terms set forth below:

 

“Acquired Indebtedness” means Indebtedness of a Person (i) existing at the time such Person becomes a Subsidiary or (ii) assumed in connection with the acquisition of assets from such Person, in each case, other than Indebtedness incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such acquisition.  Acquired Indebtedness shall be deemed to be incurred on the date of the related acquisition of assets from any Person or the date on which the acquired Person becomes a Subsidiary.

 

“Annual Debt Service Charge” means, for any period, the aggregate interest expense (including without limitation, the interest component of rentals on capitalized leases and letter of credit fees, commitment

 

 

fees and other similar financial charges) for such period in respect of, and the amortization during such period of any original issue discount of, Indebtedness of the Issuer and its Subsidiaries.

 

“Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“remaining life”) of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes.

 

“Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations for a Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Consolidated Income Available for Debt Service” means, for any period, Earnings from Operations of the Issuer and its Subsidiaries plus amounts which have been deducted, and minus amounts which have been added, for the following (without duplication): (i) Annual Debt Service Charge of the Issuer and its Subsidiaries, (ii) provision for taxes of the Issuer and its Subsidiaries based on income, (iii) provisions for gains and losses on properties and depreciation and amortization, (iv) increases in deferred taxes and other non-cash items, (v) depreciation and amortization with respect to interests in joint venture and partially owned entity investments, (vi) the effect of any charge resulting from a change in accounting principles in determining Earnings from Operations for such period and (vii) amortization of deferred charges.

 

“Earnings from Operations” means, for any period, net income or loss of the Issuer and its Subsidiaries, excluding (i) provisions for gains and losses on sales of investments or joint ventures; (ii) provisions for gains and losses on disposition of discontinued operations; (iii) extraordinary and non-recurring items; and (iv) impairment charges and property valuation losses, as reflected in the consolidated financial statements of the Issuer and its Subsidiaries for such period determined in accordance with GAAP.

 

“Encumbrance” means any mortgage, lien, pledge or security interest of any kind.

 

“Indebtedness” means, with respect to the Issuer or any of its Subsidiaries (without duplication) any indebtedness of the Issuer or any of its respective Subsidiaries, (i) in respect of borrowed money, (ii) evidenced by bonds, notes, debentures or similar instruments, (iii) secured by any Encumbrance existing on property owned by the Issuer or any of its Subsidiaries, (iv) consisting of letters of credit or amounts representing the balance deferred and unpaid of the purchase price of any property, except any such balance that constitutes an accrued expense or trade payable, or (v) consisting of capitalized leases, and also includes, to the extent not otherwise included, any obligation by the Issuer or any of its Subsidiaries to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), indebtedness of another person (other than the Issuer or its Subsidiaries); it being understood that indebtedness shall be deemed to be incurred by the Issuer or any of its Subsidiaries whenever it or that Subsidiary creates, assumes, guarantees or otherwise becomes liable in respect thereof.  Indebtedness of any Subsidiary existing prior to the time it became a Subsidiary of the Issuer shall be deemed to be incurred at the time that Subsidiary becomes a Subsidiary of the Issuer; and Indebtedness of a Person existing prior to a merger or consolidation of that Person with the Issuer or any of its Subsidiaries in which that Person is the successor to the Issuer or that Subsidiary shall be deemed to be incurred upon the consummation of that merger or consolidation.  Notwithstanding the preceding sentences of this definition, the term Indebtedness shall not include any indebtedness that had been the subject of an “in substance” defeasance in accordance with GAAP.

 

2

 

“Independent Investment Banker” means Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated or Jefferies LLC, or, if such firm is unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by us.

 

“Intercompany Indebtedness” means Indebtedness to which the only parties are the Issuer, any of the Guarantors and any of their respective Subsidiaries (but only so long as such Indebtedness is held solely by any of the Issuer, any of the Guarantors and any of their respective Subsidiaries) that is subordinate in right of payment to the Securities.

 

“Reference Treasury Dealer” means (1) a primary U.S. government securities dealer (a “primary treasury dealer”) selected by Wells Fargo Securities, LLC and its successors; (2) Jefferies LLC or Merrill Lynch, Pierce, Fenner & Smith Incorporated and their successors; provided, however, that, if any of the foregoing ceases to be a primary treasury dealer, the Issuer will substitute therefor another primary treasury dealer and (3) any two other primary treasury dealers selected by the Issuer after consultation with the Independent Investment Banker.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m. (New York City time) on the third Business Day preceding such Redemption Date.

 

“Total Assets” means, as of any date, the sum of (i) the Undepreciated Real Estate Assets and (ii) all other assets of the Issuer and its Subsidiaries determined in accordance with GAAP (but excluding accounts receivable and intangibles).

 

“Total Unencumbered Assets” means the sum of (i) those Undepreciated Real Estate Assets not subject to an Encumbrance for borrowed money and (ii) all other assets of the Issuer and its Subsidiaries not subject to an Encumbrance for borrowed money, determined in accordance with GAAP (but excluding accounts receivable and intangibles); provided, however, that, in determining Total Unencumbered Assets as a percentage of outstanding Unsecured Indebtedness for purposes of Section 3.1(d) of this Second Supplemental Indenture, all investments by the Issuer and its Subsidiaries in unconsolidated joint ventures, unconsolidated limited partnerships, unconsolidated limited liability companies and other unconsolidated entities shall be excluded from Total Unencumbered Assets to the extent that such investments would have otherwise been included.

 

“Treasury Rate” means, with respect to any Redemption Date:

 

(i)                                     the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life (as defined above), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the treasury rate will be

 

3

 

interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or

 

(ii)                                  if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

 

The Treasury Rate will be calculated by the Issuer on the third Business Day preceding the Redemption Date and set forth in an Officers’ Certificate delivered to the Trustee.

 

“Undepreciated Real Estate Assets” means, as of any date, the cost (original cost plus capital improvements) of real estate assets of the Issuer and its Subsidiaries on such date, before depreciation and amortization, determined on a consolidated basis in accordance with GAAP.

 

“Unsecured Indebtedness” means Indebtedness which is not secured by any Encumbrance upon any of the properties of the Issuer or any of its Subsidiaries.

 

ARTICLE II

 

THE SECURITIES

 

There is established a series of Securities pursuant to the Indenture with the following terms:

 

Section 2.1.  Title of the Securities. The series of Securities established under this Second Supplemental Indenture shall be designated as the “4.375% Senior Notes due 2023” (the “Notes”).

 

Section 2.2.  Aggregate Principal Amount.  The Notes initially will be issued in an aggregate principal amount of $250,000,000 (not including the Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Securities pursuant to Sections 304, 305 or 306 of the Indenture); provided that the Issuer may, without the consent of Holders of the Notes, issue additional Notes having the same ranking and the same interest rate, maturity and other terms as the Notes, except for the issue date, issue price, the first payment date (if applicable) and payment of interest accruing prior to the issue date of the additional Notes, which additional Notes will constitute a single series of Securities under the Indenture.

 

Section 2.3.  Maturity Date.  The date on which the principal on the Notes is payable is December 15, 2023, subject to the provisions of the Indenture relating to acceleration (the “Maturity Date”).

 

Section 2.4.  Ranking.  The Notes will be unsecured senior debt of the Issuer and will rank on a parity with all other unsecured and unsubordinated indebtedness of the Issuer.

 

Section 2.5.  Interest.  The Notes will bear interest from, and including, December 17, 2013, or from, and including, the most recent interest payment date to which interest has been paid or duly provided for, to, but excluding, the applicable interest payment date or Maturity Date of the Notes, as applicable, at a rate of 4.375% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing June 15, 2014. The Issuer will pay interest to the Person in whose name a Note is registered at the close of business on June 1 or December 1 next preceding the interest payment date. The Issuer will compute interest on

 

4

 

the basis of a 360-day year consisting of twelve 30-day months. If any interest payment date or Maturity Date falls on a day that is not a Business Day, the required payment of principal, Make-Whole Premium (as defined below), if any, or interest will be made on the next succeeding Business Day as if made on the date on which such payment was due, and no interest will accrue on such payment for the period from and after such interest payment date or Maturity Date, as the case may be, to the date of such payment on the next succeeding Business Day.

 

Section 2.6.  Place of Payment for Principal and Interest.  The principal of, Make-Whole Premium if any, and interest on the Notes will be payable at the office or agency of the Issuer maintained for that purpose, pursuant to the Indenture, in the City of New York, which initially shall be the corporate trust office of the Trustee; provided, however, that at the option of the Issuer, such payment of principal, Make-Whole Premium if any, or interest may be made by check mailed to the person entitled thereto as provided in the Indenture.

 

Section 2.7.  Defeasance.  The Notes shall be subject to legal defeasance under Section 402 of the Indenture and to covenant defeasance under Section 403 of the Indenture as permitted pursuant to Section 401 of the Indenture.

 

Section 2.8.  Sinking Fund.  The Notes shall not have the benefit of any sinking fund.

 

Section 2.9.  Form and Dating.

 

(a)                                 The Notes shall be substantially in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Note shall be dated the date of its authentication.

 

(b)                                 The terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Second Supplemental Indenture, and the Issuer, the Parent Guarantor and the Trustee, by their execution and delivery of this Second Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Notes conflicts with the express provisions of this Second Supplemental Indenture, the provisions of this Second Supplemental Indenture shall govern and be controlling.

 

(c)                                  The Notes will be issued in the form of a fully-registered global security (the “Global Security”). The Depository Trust Company shall serve as the depository (the “Depositary”) for the Global Security. The Global Security will be deposited with, or on behalf of, the Depositary and registered, at the request of the Depositary, in the name of Cede & Co. Except as set forth below, the Global Security may be transferred, in whole and not in part, only by the Depositary to its nominee or by its nominee to such Depositary or another nominee of the Depositary or by the Depositary or its nominee to a successor of the Depositary or a nominee of such successor. If (i) the Depositary is at any time unwilling or unable to continue as depositary and a successor depositary is not appointed by the Issuer within 90 calendar days after receipt of such notice from the Depositary; (ii) the Depositary ceases to be a clearing agency registered under the Exchange Act and the Issuer does not appoint a successor depositary within 90 calendar days of becoming aware that the Depositary has ceased to be registered as a clearing agency; (iii) the Issuer, in its sole discretion, determines that the Notes will be exchangeable for definitive securities in registered form and notifies the Trustee of its decision; or (iv) an Event of Default with respect to the Notes represented by the Global Security has occurred and is continuing, then in each case the Issuer may issue Notes in certificated form in exchange for the Global Security. In each of

 

5

 

these instances, an owner of an interest in the Global Security would be entitled to physical delivery of such Notes in certificated form. Notes so issued in certificated form will be issued in denominations of $2,000 and integral multiples of $1,000 in excess thereof and will be issued in registered form only.

 

Section 2.10.  Optional Redemption.  The Notes may be redeemed at the Issuer’s option in whole or, from time to time, in part prior to the Maturity Date as follows:

 

(a)                                 If the Notes are redeemed before September 15, 2023, the Notes will be redeemed at a Redemption Price equal to the greater of:

 

(i)                                     100% of the principal amount of the Notes then outstanding to be redeemed; and

 

(ii)                                  the sum, as set forth in an Officers’ Certificate delivered to the Trustee, of the present values of the remaining scheduled payments of principal of, and interest on, the Notes to be redeemed (not including any portion of such payments of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 30 basis points (the “Make-Whole Premium”);

 

plus any accrued and unpaid interest on the principal amount of the Notes being redeemed to, but not including, the Redemption Date.

 

(b)                                 If the Notes are redeemed on or after September 15, 2023, the Notes will be redeemed at a Redemption Price equal to 100% of the principal amount of the Notes then outstanding being redeemed, plus accrued and unpaid interest on the principal amount of Notes being redeemed to, but not including, the Redemption Date.

 

(c)                                  If any Redemption Date falls on a day that is not a Business Day, the required payment of principal, Make-Whole Premium, if any, or interest on the Notes to be redeemed will be made on the next succeeding Business Day as if made on the date on which such payment was due, and no interest will accrue on such payment for the period from and after such Redemption Date, as the case may be, to the date of such payment on the next succeeding Business Day; provided, however, that if the next such succeeding Business Day falls on a day in the next succeeding calendar year with respect to a Redemption Date, the required payment of principal, Make-Whole Premium, if any, or interest on the Notes to be redeemed shall be made on the Business Day immediately preceding such Redemption Date on which payment was due.

 

ARTICLE III

 

ADDITIONAL COVENANTS

 

In addition to the covenants set forth in the Indenture, the Issuer hereby further covenants as follows:

 

6

 

Section 3.1.  Limitation on Incurrence of Indebtedness.

 

(a)                                 The Issuer shall not, and shall not permit any of its Subsidiaries to, incur any Indebtedness, other than Intercompany Indebtedness, if, immediately after giving effect to the incurrence of such additional Indebtedness and the application of the proceeds thereof, the aggregate principal amount of all outstanding Indebtedness of the Issuer and its Subsidiaries on a consolidated basis determined in accordance with GAAP is greater than 60% of the sum of (without duplication):

 

(1)                                 the Total Assets of the Issuer and its Subsidiaries as of the end of the calendar quarter covered in the Issuer’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not permitted under the Exchange Act, with the Trustee) prior to the incurrence of such additional Indebtedness; and

 

(2)                                 the purchase price of any assets included in the definition of Total Assets acquired, and the amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire items included in the definition of Total Assets or used to reduce indebtedness), by the Issuer or any of its Subsidiaries since the end of such calendar quarter, including those proceeds obtained in connection with the incurrence of such additional Indebtedness.

 

(b)                                 The Issuer shall not, and shall not permit any of its Subsidiaries to, incur any Indebtedness if the ratio of Consolidated Income Available for Debt Service to the Annual Debt Service Charge for the four consecutive fiscal quarters most recently ended prior to the date on which such additional Indebtedness is to be incurred shall have been less than 1.5:1, on a pro forma basis after giving effect thereto and to the application of the proceeds therefrom, and calculated on the assumption that:

 

(1)                                 such Indebtedness and any other Indebtedness incurred by the Issuer and its Subsidiaries since the first day of such four-quarter period and the application of the proceeds therefrom, including to refinance other Indebtedness, had occurred at the beginning of such period;

 

(2)                                 the repayment or retirement of any other Indebtedness by the Issuer and its Subsidiaries since the first day of such four-quarter period had been repaid or retired at the beginning of such period (except that, in making such computation, the amount of Indebtedness under any revolving credit facility shall be computed based upon the average daily balance of such Indebtedness during such period);

 

(3)                                 in the case of Acquired Indebtedness or Indebtedness incurred in connection with any acquisition since the first day of such four-quarter period, the related acquisition had occurred as of the first day

 

7

 

of such period with the appropriate adjustments with respect to such acquisition being included in such pro forma calculation; and

 

(4)                                 in the case of any acquisition or disposition by the Issuer or any of its Subsidiaries of any asset or group of assets since the first day of such four-quarter period, whether by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition or any related repayment of Indebtedness had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation.

 

(c)                                  The Issuer shall not, and shall not permit any of its Subsidiaries to, incur any Indebtedness secured by any Encumbrance upon any of the property of the Issuer or any of its Subsidiaries, whether owned at the date of the Indenture or thereafter acquired, if, immediately after giving effect to the incurrence of such additional Indebtedness secured by an Encumbrance and the application of the proceeds thereof, the aggregate principal amount of all outstanding Indebtedness of the Issuer and its Subsidiaries on a consolidated basis which is secured by any Encumbrance on property of the Issuer or any of its Subsidiaries is greater than 40% of the sum of (without duplication):

 

(1)                                 the Total Assets of the Issuer and its Subsidiaries as of the end of the calendar quarter covered in the Issuer’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not permitted under the Exchange Act, with the Trustee) prior to the incurrence of such additional Indebtedness; and

 

(2)                                 the purchase price of any assets included in the definition of Total Assets acquired, and the amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire items included in the definition of Total Assets or used to reduce Indebtedness), by the Issuer or any of its Subsidiaries since the end of such calendar quarter, including those proceeds obtained in connection with the incurrence of such additional Indebtedness.

 

(d)                                 The Issuer and its Subsidiaries may not at any time own Total Unencumbered Assets equal to less than 150% of the aggregate outstanding principal amount of the Unsecured Indebtedness of the Issuer and its Subsidiaries on a consolidated basis.

 

Section 3.2.  Insurance.  Each of the Issuer and the Guarantors shall cause each of their properties and each of the properties of their respective Subsidiaries to be insured against loss or damage with insurers of recognized responsibility, in commercially reasonable amounts and types and with insurers having a specified rating from a recognized insurance rating service.

 

8

 

Section 3.3.  Waiver of Certain Covenants.  The Issuer and the Guarantors may omit in any particular instance to comply with any covenant or condition set forth in Sections 3.1 and 3.2, inclusive, of this Second Supplemental Indenture, if before or after the time for such compliance the Holders of more than 50% in principal amount of the Outstanding Notes shall, in each case by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Issuer and the Guarantors and the duties of the Trustee for the Notes with respect to any such covenant or condition shall remain in full force and effect.

 

ARTICLE IV

 

MISCELLANEOUS PROVISIONS

 

Section 4.1.  Ratification of Indenture.  Except as expressly modified or amended hereby, the Indenture continues in full force and effect and is in all respects confirmed and preserved.

 

Section 4.2.  No Representation by Trustee.  The Trustee makes no representation as to the validity or sufficiency of the Second Supplemental Indenture.

 

Section 4.3.  Governing Law.  This Second Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York.

 

Section 4.4.  Counterparts.  This Second Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

9

 

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

 

	
 
    	
CUBESMART,   L.P.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
CUBESMART
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Timothy M. Martin
    
	
 
    	
 
    	
Name:
    	
Timothy   M. Martin
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CUBESMART
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Timothy M. Martin
    
	
 
    	
 
    	
Name:
    	
Timothy   M. Martin
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
 
    	
as   Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   George J. Rayzis
    
	
 
    	
 
    	
Name:
    	
George   J. Rayzis
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to the Second Supplemental Indenture]

 

 

EXHIBIT A

 

FORM OF NOTE

 

[Face of Note]

 

CUSIP # 22966R AB2

 

	
4.375% Senior Note due   2023
    
	
No.  1
    	
 
    	
$250,000,000
    

 

CUBESMART, L.P.

 

promises to pay to CEDE & CO. or its registered assigns, the principal sum of TWO HUNDRED AND FIFTY MILLION Dollars on December 15, 2023.

 

Interest Payment Dates: June 15 and December 15

 

Record Dates: June 1 and December 1

 

Dated: December 17, 2013

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

A - 1

 

IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed as of the day and year first written above.

 

 

	
[SEAL]
    	
CUBESMART,   L.P.
    
	
 
    	
 
    
	
 
    	
By:   CUBESMART,
    
	
 
    	
as General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Timothy   M. Martin
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
Attest:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Jeffrey   P. Foster
    	
 
    
	
 
    	
Title:   
    	
Senior   Vice President,
    	
 
    
	
 
    	
 
    	
Chief   Legal Officer & Secretary
    	
 
    
							

 

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein described in the within-mentioned Indenture.

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

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[Back of Note]

 

4.375% Senior Notes due 2023

 

Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

 

(1) Interest. The Notes will bear interest from, and including, December 17, 2013, or from, and including, the most recent interest payment date to which interest has been paid or duly provided for, to, but excluding, the applicable interest payment date or Maturity Date of the Notes, as applicable, at a rate of 4.375% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing June 15, 2014. The Issuer will pay interest to the Person in whose name a Note is registered at the close of business on June 1 or December 1 next preceding the interest payment date. The Issuer will compute interest on the basis of a 360-day year consisting of twelve 30-day months. If any interest payment date or Maturity Date falls on a day that is not a Business Day, the required payment of principal, Make-Whole Premium (as defined below), if any, or interest will be made on the next succeeding Business Day as if made on the date on which such payment was due, and no interest will accrue on such payment for the period from and after such interest payment date or Maturity Date, as the case may be, to the date of such payment on the next succeeding Business Day.

 

(2) Place of Payment for Principal and Interest.  The principal of and interest on the Notes will be payable at the office or agency of the Issuer maintained for that purpose, pursuant to the Indenture, in the City of New York, which initially shall be the corporate trust office of the Trustee; provided, however, that at the option of the Issuer, such payment of principal, Make-Whole Premium, if any, or interest may be made by check mailed to the person entitled thereto as provided in the Indenture.

 

(3) Paying Agent and Security Registrar. Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying Agent and Security Registrar. The Issuer may change any Paying Agent or Security Registrar without notice to any Holder. The Issuer or any of its Subsidiaries may act in any such capacity.

 

(4) Sinking Funds. The Notes are not subject to repayment at the option of the Holder thereof. In addition, the Notes are not entitled to the benefit of, and are not subject to, any sinking fund.

 

(5) Indenture. The Issuer issued the Notes under an indenture dated as of September 16, 2011 (the “Base Indenture”), as amended by the Second Supplemental Indenture, dated as of December 17, 2013 (the “Second Supplemental Indenture” and, together with the Base Indenture and as the Base Indenture and the Second Supplemental Indenture may be further amended and supplemented from time to time, the “Indenture”), among the Issuer, the Guarantors named therein and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are unsecured obligations of the Issuer.

 

(6) Optional Redemption. The Notes may be redeemed, at the Issuer’s option in whole or, from time to time, in in part, prior to the Maturity Date as follows:

 

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(a)         If the Notes are redeemed before September 15, 2023, the Notes will be redeemed at a Redemption Price equal to the greater of:

 

(i) 100% of the principal amount of the Notes then outstanding to be redeemed; and

 

(ii) the sum, as set forth in an Officers’ Certificate delivered to the Trustee, of the present values of the remaining scheduled payments of principal of, and interest on, the Notes to be redeemed (not including any portion of such payments of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 30 basis points (the “Make-Whole Premium”);

 

plus any accrued and unpaid interest on the principal amount of the Notes being redeemed to, but not including, the Redemption Date.

 

(b)         If the Notes are redeemed on or after September 15, 2023, the Notes will be redeemed at a Redemption Price equal to 100% of the principal amount of the Notes then outstanding being redeemed, plus accrued and unpaid interest on the principal amount of the Notes being redeemed to, but not including, the Redemption Date.

 

(c)          If any Redemption Date falls on a day that is not a Business Day, the required payment of principal, Make-Whole Premium, if any, or interest on the Notes to be redeemed will be made on the next succeeding Business Day as if made on the date on which such payment was due, and no interest will accrue on such payment for the period from and after such Redemption Date, as the case may be, to the date of such payment on the next succeeding Business Day; provided, however, that with respect to a Redemption Date, if the next such succeeding Business Day falls on a day in the next succeeding calendar year with respect to a Redemption Date, the required payment of principal, Make-Whole Premium, if any, or interest on the Notes to be redeemed shall be made on the Business Day immediately preceding such Redemption Date on which payment was due.

 

(d)         If notice has been given in the manner provided in Section 1104 of the Indenture and funds for the redemption of the Note or any part thereof called for redemption will have been made available on the Redemption Date, the Notes to be redeemed, or such part thereof, will cease to accrue interest from and after the Redemption Date referred to in such notice and the only right of the Holder will be to receive payment of the Redemption Price.

 

(7) Notice of Redemption. Notice of redemption shall be given in the manner provided in Section 106 and Section 1104 of the Indenture not later than 30 days and not earlier than 60 days prior to the Redemption Date, to each Holder of Notes to be redeemed.

 

All notices of redemption shall state:

 

(1) the Redemption Date;

 

(2) the Redemption Price;

 

(3) if less than all Notes then outstanding are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the particular Notes to be redeemed, including the Identifying Number of such Notes;

 

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(4) in case any Note is to be redeemed in part only, the notice which relates to such Note shall state that on and after the Redemption Date, upon surrender of such Note, the Holder shall receive, without charge, a new Note or Notes of authorized denominations for the principal amount thereof remaining unredeemed;

 

(5) that on the Redemption Date the Redemption Price shall become due and payable upon each such Note or portion thereof, and that interest or original issue discount thereon, if any, shall cease to accrue on and after said date; and

 

(6) the place or places where such Notes are to be surrendered for payment of the Redemption Price.

 

Notice of redemption of Notes to be redeemed at the election of the Issuer shall be given by the Issuer or, at the Issuer’s request, by the Trustee for such Notes in the name and at the expense of the Issuer.

 

(8) Denominations, Transfer and Exchange. The Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Security Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Issuer may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Issuer need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. The Issuer shall not be required (i) to issue, register the transfer of or exchange the Notes during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of the Notes selected for redemption under Section 1104 of the Indenture and ending at the close of business on the day of the mailing of the relevant notice of redemption, or (ii) to register the transfer of or exchange any Notes so selected for redemption as a whole or in part, except the unredeemed portion of any Notes being redeemed in part.

 

(9) Persons Deemed Owners. Prior to due presentment of a Note for registration of transfer, the Issuer, the Guarantors, the Trustee for such Note and any agent of the Issuer, any of the Guarantors or such Trustee may treat the Person in whose name any such Note is registered as the owner of such Note for the purpose of receiving payment of principal of (and premium, if any) and (subject to Section 307 of the Indenture) interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of the Issuer, the Guarantors, such Trustee or any agent of the Issuer, any of the Guarantors or such Trustee shall be affected by notice to the contrary.

 

None of the Issuer, the Guarantors, the Trustee, any Paying Agent or the Security Registrar shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

 

(10) Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture, the Guarantee or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the Notes then outstanding affected by such amendment or supplemental indenture voting as a single class, and any existing Default or Event of Default or compliance with any provision of the Indenture, the Guarantee or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then Outstanding Securities affected thereby voting as a single class. Without the consent of any Holder of a Note, the Indenture, the Guarantee or the Notes may be amended or supplemented to, among other things, cure any ambiguity, defect or inconsistency; to provide for uncertificated Notes in addition to or in place of certificated Notes; to provide for the assumption to a successor of the Issuer’s obligations to Holders of Notes;

 

A - 5

 

add additional Guarantees with respect to the Notes; secure the Notes; to make any other change that would provide any additional rights or benefits to the Holders of Notes or that does not adversely affect the legal rights under the Indenture of any such Holder; or to comply with requirements of the Commission in order to effect or maintain the qualification of the applicable Indenture under the Trust Indenture Act.

 

(11) Defaults and Remedies. Events of Default with respect to the Notes include: (1) default in the payment of any installment of interest upon any Note when it becomes due and payable, and continuance of such default for a period of 30 days; or (2) default in the payment of the principal of (or premium, if any, on) any Note at its Maturity; or (3) default in the performance of, or breach of, any covenant or warranty of the Issuer or any of the Guarantors in respect of any Note and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Issuer by the Trustee for the Notes or to the Issuer and such Trustee by the Holders of at least 25% in principal amount of the Notes then outstanding a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or (4) a default under any bond, debenture, note or other evidence of indebtedness of the Issuer and/or any of the Guarantors or under any mortgage, indenture or other instrument of the Issuer or any of the Guarantors (including a default with respect to Securities of any series other than the Notes) under which there may be issued or by which there may be secured any indebtedness of the Issuer and/or any of the Guarantors (or by any of their respective Subsidiaries, the repayment of which the Issuer or any of the Guarantors have guaranteed or for which the Issuer or any of the Guarantors are directly responsible or liable as obligor or guarantor), whether such indebtedness now exists or shall hereafter be created, which default shall constitute a failure to pay an aggregate principal amount exceeding $25,000,000 of such indebtedness when due and payable which shall continue after the expiration of any applicable grace period with respect thereto or shall have resulted in such indebtedness in an aggregate principal amount exceeding $25,000,000 becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable, without such indebtedness having been discharged, or such acceleration having been rescinded or annulled, within a period of 10 days after there shall have been given, by registered or certified mail, to the Issuer by the Trustee or to the Issuer and the Trustee by the Holders of at least 25% in principal amount of the Notes then outstanding a written notice specifying such default and requiring the Issuer or such Guarantors, as the case may be, to cause such indebtedness to be discharged or cause such acceleration to be rescinded or annulled and stating that such notice is a “Notice of Default” hereunder; or (5) the Issuer or any Guarantor shall commence any case or proceeding seeking to have an order for relief entered on its behalf as debtor or to adjudicate it as bankrupt or insolvent or seeking reorganization, liquidation, dissolution, winding-up, arrangement, composition or readjustment of its debts or any other relief under any bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement, composition, readjustment of debt or other similar act or law of any jurisdiction, domestic or foreign, now or hereafter existing; or the Issuer or any Guarantor shall apply for a receiver, custodian or trustee (other than any trustee appointed as a mortgagee or secured party in connection with the issuance of indebtedness for borrowed money of the Issuer) of it or for all or a substantial part of its property; or the Issuer or any Guarantor shall make a general assignment for the benefit of creditors; or the Issuer or any Guarantor shall take any corporate action in furtherance of any of the foregoing; or (6) an involuntary case or other proceeding shall be commenced against the Issuer or any Guarantor with respect to it or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect seeking the appointment of a trustee, receiver, liquidator, custodian or similar official of the Issuer or any Guarantor or any substantial part of their respective property; and such case or other proceeding (A) results in the entry of an order for relief or a similar order against the Issuer or any Guarantor, or (B) shall continue unstayed and in effect for a period of 60 consecutive days; or (7) except as otherwise permitted herein, any Guarantee of the Securities of any series shall be held in any judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force

 

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and effect, or any Guarantor, or any person acting on behalf of any such Guarantor, shall deny or disaffirm its obligations under its Guarantee with respect to the Notes.

 

If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Notes then outstanding may declare the entire principal amount of the Notes to be due and payable. Subject to certain limitations, the Holders of a majority in principal amount of the Notes then outstanding may direct the Trustee in its exercise of any trust or power. Subject to certain exceptions, the Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of principal of, premium, if any, or interest on the Notes.

 

(12) No Recourse Against Others. No trustee, officer, employee or stockholder of CubeSmart or any of its Subsidiaries, as such, will have any liability for any obligations of CubeSmart or any of its Subsidiaries under the Notes or the Indenture based on, in respect of, or by reason of such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The foregoing waiver and release are an integral part of the consideration for the issuance of the Notes.

 

(13) Authentication. No Note shall be entitled to any benefit under the Indenture or be valid or obligatory for any purpose unless there appears on such Note the certificate of authentication manually executed by the Trustee for such Note or on its behalf pursuant to Section 614 of the Indenture, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder.

 

(14) CUSIP Numbers. The Issuer in issuing the Notes may use “CUSIP” numbers (if then generally in use) or other identifying numbers (“Identifying Numbers”) and, if so, the Trustee shall use such Identifying Numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such Identifying Numbers either as printed on the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identifying numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuer shall promptly notify the Trustee of any change in the Identifying Numbers.

 

The Issuer will furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to:

 

CubeSmart, L.P.

c/o CubeSmart

5 Old Lancaster Road

Malvern, PA  19355

Attention:  Jeffrey Foster, Chief Legal Officer

 

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Assignment Form

 

To assign this Note, fill in the form below:

 

 

	
(I) or   (we) assign and transfer this Note to:
    	
 
    
	
 
    	
(Insert assignee’s legal name)
    

 

	
 
    	
 
    	
 
    

(Insert assignee’s Soc. Sec. or Tax I.D. No.)

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

(Print or type assignee’s name, address and zip code)

 

and irrevocably appoint                                                                                    to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

 

	
Date:
    	
 
    	
 
    	
 
    

 

 

	
 
    	
Your   Signature:
    	
 
    
	
 
    	
(Sign   exactly as your name appears on the face of this Note)
    

 

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SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY

 

The following exchanges of a part of this Global Security for an interest in another Global Security or for a definitive security, or exchanges of a part of another Global Security or definitive security for an interest in this Global Security, have been made:

 

	
Date of exchange
    	
 
    	
Amount of
   decrease in
   principal amount
   of this Global
   Security
    	
 
    	
Amount of increase
   in principal
   amount of this
   Global Security
    	
 
    	
Principal amount
   of this Global
   Security following
   such decrease
   (or increase)
    	
 
    	
Signature of
   authorized
   officer of Trustee
   or Custodian
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A - 9

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