Document:

REGN-Ex_10.2-03/31/2015-10Q

Exhibit 10.2
	
			
	Date:
	 
	February 27, 2015

	 
	 
	 

	To:
	 
	Regeneron Pharmaceuticals, Inc.

	 
	 
	777 Old Saw Mill River Road

	 
	 
	Tarrytown, NY 10591-6707

	 
	 
	 

	Attention:
	 
	Dominick Agron

	 
	 
	VP and Treasurer

	 
	 
	777 Old Saw Mill River Road

	 
	 
	Tarrytown, NY 10591-6707

	 
	 
	 

	Facsimile:
	 
	(914) 847-1555

	 
	 
	 

	From:
	 
	Goldman, Sachs & Co.

	 
	 
	200 West Street

	 
	 
	New York, NY 10282-2198

	 
	 
	 

	Re:
	 
	Third Amendment of the Warrant Transaction between Goldman, Sachs & Co. and Regeneron Pharmaceuticals, Inc.

	 
	 
	 

Dear Sir/Madam:

Goldman, Sachs & Co. (“GS&Co.”) and Regeneron Pharmaceuticals, Inc. (“Issuer”) are parties to a warrant transaction evidenced by the Master Terms and Conditions for Base Warrants Issued by Regeneron Pharmaceuticals, Inc. dated as of October 18, 2011, supplemented by the written confirmation dated as of October 18, 2011 (as amended prior to the date hereof, the “Confirmation”).  Terms used herein but are not otherwise defined shall have meanings assigned to them in the Confirmation.

Upon the effectiveness of each daily Amendment as set forth in Paragraph 1 below, all references in the Confirmation to the “Number of Warrants” will be deemed to be to the Number of Warrants as amended hereby and all references in the Confirmation to the “Transaction” will be deemed to be to the Transaction as amended hereby.

1.  Amendments.  For each Unwind Date (as defined below), effective upon the closeout of GS&Co’s Hedge Positions on such Unwind Date, the Number of Warrants for each Component of the Transaction shall be reduced by 1/80th of the Daily Number of Warrants (as defined below) for such Unwind Date, with each such Number of Warrants rounded up to the nearest whole number, except that the Number of Warrants for the Component with the latest Expiration Date shall be reduced by the aggregate number resulting from such rounding.

2.  Amendment Payment.  In consideration of the amendments to the Transaction, Issuer agrees to pay to GS&Co. on each Payment Date (as defined below) an amount in USD (the “Daily Amendment Payment”) equal to the product of the Daily Number of Warrants for the related Unwind Date and the Amendment Payment Amount per Warrant (each as defined below); provided that the sum of the Daily Amendment Payments shall not exceed the Maximum Amendment Payment Amount (as defined below); provided further, that in lieu of payment in USD, Issuer may elect in its sole discretion to satisfy, with respect to any Unwind Date, the Daily Amendment Payment in Shares as provided in Annex B hereto.

		
	Daily Number of Warrants:
	For any Unwind Date (as defined below), a number of Warrants as determined by GS&Co. with respect to which GS&Co. has closed out its Hedge Positions on such Unwind Date; provided that the sum of the Daily Number of Warrants shall not exceed the Maximum Number of Warrants (as defined below).

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	Maximum Number of Warrants:  
	76,749

Amendment Payment Amount 
		
	per Warrant:
	As set forth in Annex A, to be the amount specified for the relevant Unwind Period Price. 

Maximum Amendment 
		
	Payment Amount:
	USD 23,985,597.48.

		
	Payment Date:
	For each Unwind Date, the third Currency Business Day following such Unwind Date.

		
	Unwind Period:
	A number of Scheduled Trading Days selected by GS&Co. in its sole discretion, beginning on the Scheduled Trading Day immediately following the date hereof, and ending no later than May 7, 2015.

		
	Unwind Date:
	Each Scheduled Trading Day during the Unwind Period on which GS&Co. has closed out its Hedge Positions in respect of Warrants.

		
	Unwind Date Price:
	For any Unwind Date, the volume-weighted average of the per Share prices at which GS&Co. purchases Shares in order to close out its Hedge Positions in respect of the Daily Number of Warrants on such Unwind Date; provided that GS&Co. shall not effect any such purchases at a price per Share in excess of the Limit Price.

		
	Limit Price:
	USD 408.00 per Share.

3.  Representations and Warranties.

(a)     Each party represents to the other party that:

(i)    It is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation and, if relevant under such laws, in good standing.

(ii)    It has the power to execute this Amendment and any other documentation relating to this Amendment to which it is a party, to deliver this Amendment and any other documentation relating to this Amendment that it is required by this Amendment to deliver and to perform its obligations under this Amendment and has taken all necessary action to authorize such execution, delivery and performance.

(iii)    Such execution, delivery and performance do not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets.

(iv)    All governmental and other consents that are required to have been obtained by it with respect to this Amendment have been obtained and are in full force and effect and all conditions of any such consents have been complied with.

(v)    Its obligations under this Amendment constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors' rights generally and subject, as to enforceability, 

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to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at law)).

(b)     Issuer represents and warrants to and for the benefit of GS&Co. as follows:

(i)    (A) On the date hereof, Issuer is not aware of any material non-public information regarding Issuer or the Shares and (B) its most recent Annual Report on Form 10-K, taken together with all reports and other documents subsequently filed by Issuer with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.

(ii)    On the date hereof and on the Payment Date, (A) the assets of Issuer at their fair valuation exceed the liabilities of Issuer, including contingent liabilities, (B) the capital of Issuer is adequate to conduct the business of Issuer and (C) Issuer has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts mature.

(iii)    Issuer acknowledges its responsibilities under applicable federal securities laws, including, without limitation, Rule 10b-5 under the Exchange Act, in relation to the Transaction and its amendment.

(iv)    Issuer is entering into this Amendment in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares.  Issuer acknowledges that it is the intent of the parties that this Amendment comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 and this Amendment shall be interpreted to comply with the requirements of Rule 10b5-1(c). 

(v)    Issuer will not seek to control or influence GS&Co.’s decision to make any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) of Shares during the Unwind Period, including, without limitation, GS&Co.’s decision to enter into any hedging transactions.  Issuer represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Amendment under Rule 10b5-1.

(vi)    Issuer acknowledges and agrees that any amendment, modification, waiver or termination of this Amendment must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c).  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1, and no such amendment, modification or waiver shall be made at any time at which Issuer is aware of any material non-public information regarding Issuer or the Shares.

(vii)    In the event Issuer elects to pay the Amendment Payment by delivering Shares in accordance with Annex B hereto, the representation and agreement set forth in Section 9.11 of the Equity Definitions shall be true and correct at the time of such delivery, excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws.   

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4.  Covenants of Issuer during Unwind Period.  Issuer agrees with GS&Co. that during the Unwind Period that:

(a)    the Shares or securities that are convertible into, or exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted period,” as such term is defined in Regulation M and (B) Issuer shall not engage in any “distribution,” as such term is defined in Regulation M until the second Exchange Business Day immediately following the Unwind Period;

(b)    neither Issuer nor any “affiliated purchaser” (as defined in Rule 10b-18) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable or exercisable for Shares; provided that, for the avoidance of doubt, (i) for purposes of this Section 4(b) “affiliated purchaser” shall not include Sanofi or any of its directly or indirectly wholly owned subsidiaries; and (ii) this Section 4(b) shall not preclude Issuer from receiving (or retaining) any Shares in payment of the option exercise price or receiving (or retaining) any Shares in respect of tax withholding or other similar tax obligation in connection with the exercise, vesting or delivery of any awards granted under Issuer’s equity incentive award plans;  

(c)    it (A) will not make any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction unless such public announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares; and (B) shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify GS&Co. following any such announcement that such announcement has been made.

5.  GS&Co. Activities during Unwind Period.

(a)    GS&Co. agrees with Issuer that during the Unwind Period, GS&Co. shall use commercially reasonable efforts to make all purchases of Shares in a manner that would comply with the limitations set forth in clauses (b)(1), (b)(2), (b)(3), (b)(4) and (c) of Rule 10b-18, as if such rule were applicable to such purchases, taking into account any applicable Securities and Exchange Commission no-action letters as appropriate and subject to any delays between the execution and reporting of a trade of the Shares on the Exchange and other circumstances beyond GS&Co.’s control.

(b)    GS&Co. and Issuer agree and acknowledge that any transactions with respect to the Shares (including, without limitation, any hedging transactions) entered into by GS&Co. during the Unwind Period are entered into for GS&Co.’s own account and on its own behalf and not for the account of, or on behalf of, Issuer.

6.  No Additional Amendments or Waivers.  Except as amended hereby, all the terms of the Transaction and provisions in the Confirmation shall remain and continue in full force and effect and are hereby confirmed in all respects.

7.  Counterparts.  This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if all of the signatures thereto and hereto were upon the same instrument.

8.  Governing Law.  The provisions of this Amendment shall be governed by the New York law (without reference to choice of law doctrine).

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Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this Amendment and returning it in the manner indicated in the attached cover letter.
GOLDMAN, SACHS & CO.

By:__/s/ Daniela A. Rouse            
 Name:    Daniela A. Rouse                                        
 Title:    Vice President                            
 
                        

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Agreed and Accepted By: 
 
REGENERON PHARMACEUTICALS, INC.

By:           /s/ Dominick Agron 
  Name:    Dominick Agron 
  Title:      Vice President & Treasurer

6

Annex A

	
		
	Unwind Date Price
	Amendment Payment Amount Per Warrant

	$370.00
	$274.55

	$375.00
	$279.54

	$380.00
	$284.53

	$385.00
	$289.52

	$390.00
	$294.55

	$395.00
	$299.54

	$400.00
	$304.53

	$405.00
	$309.52

	$408.00
	$312.52

For an Unwind Date Price falling between the amounts appearing in such column, the Amendment Payment Amount per Warrant will be calculated by GS&Co. using linear interpolation.  If the Amendment Payment Amount per Warrant is otherwise not determinable pursuant to the foregoing because the Unwind Date Price is less than the lowest Unwind Date Price set forth above, the Amendment Payment Amount per Warrant will be determined by GS&Co. by linear extrapolation based on the two lowest Unwind Date Prices set forth above.  If the Amendment Payment Amount per Warrant is otherwise not determinable pursuant to the foregoing because the Unwind Date Price is greater than the highest Unwind Date Price set forth above, the Amendment Payment Amount per Warrant will be determined by GS&Co. by linear extrapolation based on the two highest Unwind Date Prices set forth above.    

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ANNEX B
SHARE SETTLEMENT PROVISIONS
1.    Payment of any Daily Amendment Payment in Shares by Issuer shall be made by delivery on the Payment Date of a number of Shares satisfying the conditions set forth in paragraph 2 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in either case with a value equal to such Daily Amendment Payment, with such Shares’ value determined by GS&Co. in good faith and in a commercially reasonable manner (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount).

2.    Issuer may only deliver Registered Settlement Shares pursuant to paragraph 2 above if:
(a)    a registration statement covering the public resale of the Registered Settlement Shares by GS&Co. (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including any prospectus supplement thereto, the “Prospectus”) shall have been delivered to GS&Co., in such quantities as GS&Co. shall reasonably have requested, on or prior to the date of delivery; 
(b)    the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be reasonably satisfactory to GS&Co.;
(c)    as of or prior to the date of delivery, GS&Co. and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Issuer customary in scope for underwritten offerings of equity securities and the results of such investigation are satisfactory to GS&Co., in its good faith discretion; and
(d)    as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with GS&Co. in connection with the public resale of the Registered Settlement Shares by GS&Co. substantially similar to underwriting agreements customary for underwritten offerings of equity securities of a similar size by companies similar to Issuer, in form and substance reasonably satisfactory to GS&Co., which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements for offerings of a similar size by companies similar to Issuer relating, without limitation, to the indemnification of, and contribution in connection with the liability of, GS&Co. and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.
3.    If Issuer delivers Unregistered Settlement Shares pursuant to paragraph 1 above:
(a)    all Unregistered Settlement Shares shall be delivered to GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof;
(b)    as of or prior to the date of delivery, GS&Co. and any potential purchaser of any such Unregistered Settlement Shares from GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) identified by GS&Co. shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Issuer customary in scope for private placements of equity securities of a similar size by companies similar to Issuer (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them); 
(c)    as of the date of delivery, Issuer shall enter into an agreement (a “Private Placement Agreement”) with GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) in connection with the private 

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placement of such Unregistered Settlement Shares by Issuer to GS&Co. (or any such affiliate) and the private resale of such Unregistered Settlement Shares by GS&Co. (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities of a similar size by companies similar to Issuer, in form and substance commercially reasonably satisfactory to GS&Co., which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements for offerings of similar size by companies similar to Issuer relating, without limitation, to the indemnification of, and contribution in connection with the liability of, GS&Co. and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for the payment by Issuer of all commercially reasonable fees and expenses in connection with such resale, including all commercially reasonable fees and expenses of counsel for GS&Co., and shall contain representations, warranties, covenants and agreements of Issuer reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resale; and
(d)    in connection with the private placement of such shares by Issuer to GS&Co. (or any such affiliate) and the private resale of such shares by GS&Co. (or any such affiliate), Issuer shall, if so requested by GS&Co., prepare, in cooperation with GS&Co., a private placement memorandum in form and substance reasonably satisfactory to GS&Co. and customary for private placements of equity securities of similar size by companies similar to Issuer.   
4.    GS&Co., itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will sell, in a commercially reasonable manner and over a commercially reasonable period, all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the “Settlement Shares”) delivered by Issuer to GS&Co. pursuant to paragraph 5 below in a commercially reasonable manner commencing on the date one Settlement Cycle following the Termination Date (such date, the “Net Share Settlement Date” for purposes of Net Share Settlement by Issuer) and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by GS&Co. in a commercially reasonable manner, is equal to the Amendment Payment (such date, the “Final Resale Date”).  If the proceeds of any sale(s) made by GS&Co., the Selling Agent or any underwriter(s), net of any commercially reasonable fees and commissions (including, without limitation, commercially reasonable underwriting or placement fees) customary for similar transactions of a similar size under the circumstances at the time of the offering, together with commercially reasonable carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the Amendment Payment, GS&Co. will refund, in USD, such excess to Issuer on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, GS&Co. shall return to Issuer on that date such unsold Shares.  
5.    If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 5 are less than the Amendment Payment (the amount in USD by which the Net Proceeds are less than the Amendment Payment being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Issuer shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to GS&Co., through the Selling Agent, a notice of Issuer’s election that Issuer shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares.  If Issuer elects to deliver to GS&Co. additional Shares, then Issuer shall deliver additional Shares in compliance with the terms and conditions of paragraph 2 or paragraph 3 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent commercially reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall.  Such Makewhole Shares shall be sold by GS&Co. in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the Amendment Payment then Issuer shall, at its election, either make such cash payment or deliver to GS&Co. further Makewhole Shares until such Shortfall has been reduced to zero. 
6.    Notwithstanding the foregoing, and without limiting the Issuer’s ability to elect to settle any Daily Amendment Payment in Shares, as provided in this Annex B, in no event shall the aggregate number of Settlement 

9

Shares and Makewhole Shares required to be delivered by the Issuer upon settlement of all Daily Amendment Payments so settled in Shares, in the aggregate, be greater than 250,000 Shares (the “Maximum Number of Shares”). For the avoidance of doubt, in no event will the Company be required to deliver cash in the event the aggregate number of Settlement Shares and Makewhole Shares required to be delivered by the Issuer upon settlement of all Daily Amendment Payments so settled in Shares, in the aggregate, would, but for the foregoing sentence, exceed the Maximum Number of Shares.

10ARCP 03.31.2015 -  EX 10.3

Exhibit 10.3

CONSENT MEMORANDUM
	
		
	TO:
	ARC Properties Operating Partnership, L.P. Lender Group

	FROM:
	Wells Fargo Bank, National Association, as Administrative Agent

	RE:
	Consent re: Certain Financial Information Deliverables (2013 Audited Reports)

	DATE:
	February 19, 2015

	 
	 

 
Reference is made to that certain Amended and Restated Credit Agreement, dated as of June 30, 2014, among ARC Properties Operating Partnership, L.P. (the “Borrower”), American Realty Capital Properties, Inc. (the “Parent”), the financial institutions from time to time party thereto (the “Lenders”) and Wells Fargo Bank, National Association, as administrative agent (the “Administrative Agent”), as amended or otherwise modified by the Consent and Waiver Agreement and First Amendment thereto, dated as of November 12, 2014 (the “November Agreement”), and by that certain Consent and Waiver Agreement thereto, dated as of December 23, 2014 (the “December Agreement”, and together with the November Agreement, the “Prior Agreements”)). Terms used herein and not otherwise defined herein shall have the meanings set forth in the Credit Agreement, the November Agreement or the December Agreement, as the context may require.
Pursuant to the December Agreement, the waivers and agreements with respect to the Waived Matters specified therein terminate on the earlier of (i) March 2, 2015 and (ii) the date that is 45 days after the Borrower (or any Affiliate of the Borrower) receives an Indenture Default Notice (as defined in the December Agreement), unless on or prior to such earlier date the Parent shall have delivered to the Administrative Agent each of the Financial Information Deliverables specified in clauses (i), (ii) and (iii) of Section 1(a) of the November Agreement.  The Loan Parties have requested that the Administrative Agent and the Lenders agree to modify certain of the Financial Information Deliverables relating to the 2013 Audited Reports (as presently set forth in clause (iii)(x) of the definition of Financial Information Deliverables) and, accordingly to consent and agree (the “Consent”) to restate clause (iii) of the definition of Financial Information Deliverables in its entirety to read as follows for all applicable purposes of the Loan Documents:  
(iii) a certificate of a Responsible Officer of the Parent confirming (a) completion of Grant Thornton LLP’s pending audit relating to the 2013 Audited Reports accompanied by (x) a copy of Amendment No. 2 to the Parent’s annual report on Form 10-K/A for the year ended December 31, 2013, which 10-K/A will include (i) the consolidated financial statements of the Parent as of December 31, 2013 and 2012, and for each of the three years in the period ended December 31, 2013 (such financial statements, the “2013 Financial Statements”), (ii) an unqualified opinion of Grant Thornton LLP on the 2013 Financial Statements, which opinion shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit (other than any qualification or adverse opinion with respect to internal controls), and (iii) financial data corresponding to, and substantially consistent in all respects with, the financial data contained in the draft Note No.2 to the 2013 Financial Statements under each of the headings “2012 Restated Consolidated Balance Sheet (Adjusted Line Items)”, “2012 Restated Consolidated Statement of Operations (Adjusted Line Items)”, “2013 Restated Consolidated Balance Sheet”, “2013 Restated Statement of Operations”, “2013 Restated Statement of Comprehensive Loss” and “2013 Restated Statement of Cash Flows”,  in each case, excluding the footnotes and other narrative thereto, as delivered to the Lenders on February 18, 2015, (b) that the 2013 Financial Statements present fairly, in accordance with GAAP and in all material respects, the financial position of the Parent and its Subsidiaries as of the period presented and the results of operations for such period, (c) completion of Ernst & Young’s pending forensic audit relating to the Prior Financial Information and (d) that no Default or Event of Default has occurred and is continuing as of the date of such certificate (other than the Specified Potential Defaults or Related Potential Defaults).

The Administrative Agent and the Lenders party hereto hereby grant the Consent.
Please indicate your consent to the agreements herein, as soon as possible but in no event later than 5 p.m.  (New York time) February 20, 2015, by executing two (2) counterparts of your attached signature page to this Consent Memorandum and, upon execution, return one PDF copy by e-mail to the attention of Irfan Siddiqui at Sidley Austin LLP, counsel to the Administrative Agent (e-mail: isiddiqui@sidley.com) and return two (2) originals to Irfan Siddiqui at Sidley Austin LLP, One South Dearborn Street, Chicago, Illinois 60603.  Please make any necessary corrections or adjustments to your signature block prior to execution and delivery.  This Consent Memorandum will be effective upon receipt of executed signature pages via e-mail from the Loan Parties, the Administrative Agent, the Requisite Revolving Lenders and the Requisite Lenders.
Upon the effectiveness hereof, each reference in the Credit Agreement and the other Loan Documents to “this Credit Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Credit Agreement after giving effect to this Consent.  This Consent Memorandum is a Loan Document pursuant to the Credit Agreement and shall (unless expressly indicated herein or therein) be construed, administered, and applied, in accordance with all of the terms and provisions of the Credit Agreement.  Except as specifically consented to above, the Credit Agreement, the Prior Consents and all other Loan Documents, and all of the Loan Parties’ respective obligations thereunder, shall remain in full force and effect, and are hereby ratified and confirmed.  Except as expressly provided herein, the execution, delivery and effectiveness of this Consent Memorandum (or any provision hereof) shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement, the Prior Consents or any other Loan Document.
Each Loan Party hereby represents and warrants that, after giving effect to this Consent Memorandum (a) each of the representations and warranties of the Loan Parties set forth in clauses (i) and (ii) of Section 10(a) of the December Agreement are true and correct as if made on the date hereof with respect to this Consent Memorandum and the Credit Agreement as modified hereby, mutatis mutandis, (b) the representations and warranties of the Loan Parties set forth in Article VII of the Credit Agreement are true and correct in all material respects as of the date hereof except, in each case, for those that specifically relate to an earlier date (in which case such representations and warranties shall be true and correct as of such earlier date); provided that no representations and warranties are made herein as to any Prior Financial Information and (c) no event has occurred and is continuing that constitutes a Default or an Event of Default.

Each of the Loan Parties separately releases, discharges, and agrees to hold harmless the Administrative Agent and the Lenders and their representatives, agents, employees, attorneys, directors, officers, parents, affiliates, assigns, insurers, subsidiaries, and their successors and assigns (collectively, the “Released Parties”) from any and all claims, defenses, affirmative defenses, setoffs, counterclaims, actions, causes of action, suits, controversies, agreements, provisions, liabilities and demands in law or in equity, whether known or unknown (collectively, the “Claims”) which any Loan Party ever had, now has, or may hereafter have against or related to the Released Parties through the date of this Consent Memorandum, including, but not limited to, Claims relating to or arising out of the Loan Documents or the transactions described therein, the Obligations, the Administrative Agent’s administration of the Loan Documents, or the banking relationship of such Loan Party with any Lender.

This Consent Memorandum may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Consent Memorandum by facsimile shall be effective as delivery of a manually executed counterpart of this Consent Memorandum.  This Consent Memorandum shall be governed by and construed in accordance with the laws of the State of New York.

[Signature Pages Follow]

	
			
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION

	 
	individually as a Lender and as Administrative Agent

	 
	By:
	/s/ Trent J. Brendon

	 
	Name:
	Trent J. Brendon

	 
	Title:
	Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

	 
	By:
	/s/ Vipul Dhadda

	 
	Name:
	Vipul Dhadda

	 
	Title:
	Authorized Signatory

	
			
	 
	For any Lender requiring a second signature line:

	 
	By:
	/s/ D. Andrew Maletta

	 
	Name:
	D. Andrew Maletta

	 
	Title:
	Authorized Signatory

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	BANK OF AMERICA, N.A., as a Lender

	 
	By:
	/s/ Michael Kauffman

	 
	Name:
	Michael Kauffman

	 
	Title:
	Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	JPMorgan Chase Bank, N.A.

	 
	By:
	/s/ Rita Lai

	 
	Name:
	Rita Lai

	 
	Title:
	Authorized Signer

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	U.S. BANK, National Association, as a Lender

	 
	By:
	/s/ Gordon J. Clough

	 
	Name:
	Gordon J. Clough

	 
	Title:
	Senior Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender:

	 
	By:
	/s/ Alexander Johnson

	 
	Name:
	Alexander Johnson

	 
	Title:
	Managing Director

	
			
	 
	DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender:

	 
	By:
	/s/ James Rolison

	 
	Name:
	James Rolison

	 
	Title:
	Managing Director

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	CITIBANK, N.A.

	 
	By:
	/s/ Michael Chlopak

	 
	Name:
	Michael Chlopak

	 
	Title:
	Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	Barclays Bank PLC

	 
	By:
	/s/ Christine Aharonian

	 
	Name:
	Christine Aharonian

	 
	Title:
	Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	REGIONS BANK

	 
	By:
	/s/ Michael R. Mellott

	 
	Name:
	Michael R. Mellott

	 
	Title:
	Director

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	Goldman Sachs Bank USA

	 
	By:
	/s/ Jamie Minieri

	 
	Name:
	Jamie Minieri

	 
	Title:
	Authorized Signatory

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	TD Bank, N.A.:

	 
	By:
	/s/ Aaron C. Miller

	 
	Name:
	Aaron C. Miller

	 
	Title:
	VP

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	COMERICA BANK

	 
	By:
	/s/ Charles Weddell

	 
	Name:
	Charles Weddell

	 
	Title:
	Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	Fifth Third Bank

	 
	By:
	/s/ Thomas Jeffery

	 
	Name:
	Thomas Jeffery

	 
	Title:
	Senior Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	MORGAN STANLEY BANK, N.A.

	 
	By:
	/s/ Emanuel Ma

	 
	Name:
	Emanuel Ma

	 
	Title:
	Authorized Signatory

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	Citizens Bank

	 
	By:
	/s/ Brad Bindas

	 
	Name:
	Brad Bindas

	 
	Title:
	Senior Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	MidFirst Bank, a Federally Chartered Savings Association

	 
	By:
	/s/ Darrin Rigler

	 
	Name:
	Darrin Rigler

	 
	Title:
	First Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	Eastern Bank

	 
	By:
	/s/ Jared H. Ward

	 
	Name:
	Jared H. Ward

	 
	Title:
	Senior Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	Mizuho Bank, Ltd.

	 
	By:
	/s/ Raymond Ventura

	 
	Name:
	Raymond Ventura

	 
	Title:
	Deputy General Manager

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	Mizuho Bank (USA)

	 
	By:
	/s/ Raymond Ventura

	 
	Name:
	Raymond Ventura

	 
	Title:
	Deputy General Manager

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	SABADELL UNITED BANK N.A.

	 
	By:
	/s/ Maurici Lladó

	 
	Name:
	Maurici Lladó

	 
	Title:
	EVP- Corporate & Commercial Banking

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

	
			
	 
	Name of Lender:

	 
	TriState Capital Bank

	 
	By:
	/s/ Ellen S. Frank

	 
	Name:
	Ellen S. Frank

	 
	Title:
	Senior Vice President

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

Acknowledged and Agreed:

	
			
	 
	ARC PROPERTIES OPERATING PARTNERSHIP, L.P.,

	 
	as the Borrower

	 
	By:
	/s/ Michael J. Sodo

	 
	Name:
	Michael J. Sodo

	 
	Title:
	Executive Vice President, Chief Financial Officer and Treasurer

	
			
	 
	AMERICAN REALTY CAPITAL PROPERTIES, INC.,

	 
	as the Parent

	 
	By:
	/s/ Michael J. Sodo

	 
	Name:
	Michael J. Sodo

	 
	Title:
	Executive Vice President, Chief Financial Officer and Treasurer

Signature Page to Consent Memorandum
ARC Properties Operating Partnership L.P.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}]]