Document:

cbl-ex102_7.htm

Exhibit 10.2

FIRST AMENDMENT TO FORBEARANCE AGREEMENT

This FIRST AMENDMENT TO FORBEARANCE AGREEMENT (this “Amendment”), dated as of July 15, 2020, by and among CBL & Associates Limited Partnership, a Delaware limited partnership (the “Issuer”), each of the undersigned subsidiary guarantors (the “Subsidiary Guarantors”), CBL & Associates Properties, Inc., a Delaware corporation (the “Limited Guarantor” and, together with the Subsidiary Guarantors, the “Guarantors” and, together with the Issuer, the “Note Parties”), and each of the undersigned beneficial owners and/or investment advisors or managers of discretionary funds, accounts, or other entities for the holders or beneficial owners of the 2023 Notes (as defined below) (collectively, the “Holders”). 

 

WHEREAS, the Issuer is the issuer under that certain Indenture, dated as of November 26, 2013, among the Issuer, the Limited Guarantor and U.S. Bank, National Association, as trustee (the “Trustee”), as amended, modified or supplemented by that certain First Supplemental Indenture dated as of November 26, 2013 by and among the Issuer, the Limited Guarantor and the Trustee, the Second Supplemental Indenture dated as of December 13, 2016 by and among the Issuer, the Limited Guarantor and the Trustee and the Third Supplemental Indenture dated as of January 30, 2019 by and among the Issuer, the Limited Guarantor, the Subsidiary Guarantors and the Trustee (collectively, the “Indenture”), pursuant to which the Issuer’s $450 million 5.25% Senior Notes due 2023 (the “2023 Notes”), $300 million 4.60% Senior Notes due 2024 (the “2024 Notes”) and $625 million 5.95% Senior Notes due 2026 (the “2026 Notes” and, together with the 2024 Notes and 2023 Notes, the “Notes”) are outstanding;

WHEREAS, the Note Parties and the Holders entered into that certain Forbearance Agreement, dated as of June 30, 2020 (the “Forbearance Agreement”); 

WHEREAS, concurrently with the entry into the Forbearance Agreement, the Issuer and the Requisite Lenders entered into the Credit Facilities Forbearance Agreement; 

WHEREAS, the Issuer and the Holders desire to amend the Forbearance Agreement as set forth in this Amendment; and 

WHEREAS, terms used but not otherwise defined herein shall have the meanings given to them in the Forbearance Agreement or the Indenture, as applicable.

NOW, THEREFORE, in consideration of the premises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

Section 1. Amendment to Forbearance Agreement. 

(a)The second sentence of Section 1(a) of the Forbearance Agreement is hereby amended and restated as follows:

“As used herein, “Forbearance Termination Date” means the earliest to occur of (i) 11:59 p.m. (New York City time) on July 22, 2020, (ii) the occurrence of any Event of Default under the Indenture other than the 2023 Notes Interest Default and the 2026 Notes Interest Default; (iii) the failure of any Note Party to comply with any term, condition, or covenant set forth in this Agreement (including, for the avoidance of doubt, Section 4 hereof); (iv) the failure of any representation or warranty made by any Note Party under this Agreement to be true and complete in all material respects (except that such materiality qualifier shall not be applicable to the extent that any representation and warranty already is qualified or modified by materiality in the text thereof) as of the date when made or any other breach in any material 

 

 

respect of any such representation or warranty; (v) the entry by the Issuer into any support agreement or definitive documentation with respect to, or announcement by the Issuer of its intent to pursue, any other restructuring, recapitalization, refinancing, repurchase or other material transaction in respect of any material indebtedness of the Issuer or its subsidiaries, whether through a court-supervised insolvency proceeding or otherwise, without the express written consent of each Holder; (vi) the granting of any additional lien on any property or assets of the Limited Guarantor, the Issuer or any of their respective subsidiaries to secure all or any portion of the Credit Agreement dated as of January 30, 2019 by and among the Issuer, the Limited Guarantor, the subsidiary guarantors and the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent (the “Credit Facilities”); (vii) the occurrence of the Forbearance Termination Date (as defined in the 2026 Notes Forbearance Agreement (as defined below)) or (viii) the occurrence of the Forbearance Termination Date (as defined in the Credit Facilities Forbearance Agreement (as defined below)).”

Section 2. Conditions Precedent. The effectiveness of this Amendment and the obligations of the Holders hereunder is subject to the satisfaction, or waiver by the Holders, of the following conditions:

 

(a) The Note Parties and a majority of the holders of the 2026 Notes shall have entered into a forbearance agreement (as it may be amended from time to time, the “2026 Notes Forbearance Agreement”) pursuant to which such holders of the 2026 Notes will temporarily agree to forbear from delivery of a notice of acceleration on the 2026 Notes with respect to the 2026 Notes Interest Default, which 2026 Notes Forbearance Agreement shall be in the form attached hereto as Exhibit A and shall be effective prior to, or concurrent with, the execution of this Amendment. 

 

(b) The parties to the Credit Facilities Forbearance Agreement shall have entered into an amendment to the Credit Facilities Forbearance Agreement, which amendment shall be in the form attached hereto as Exhibit B (the “Credit Facilities Forbearance Amendment”) and shall be effective prior to, or concurrent with, the execution of this Agreement.

 

Section 3. Release.  In consideration of, among other things, each Holder’s execution and delivery of this Amendment, each Note Party, on behalf of itself and its agents, representatives, officers, directors, advisors, employees, subsidiaries, affiliates, successors and assigns (collectively, “Releasors”), hereby forever agrees and covenants not to sue or prosecute against any Releasee (as defined below) and hereby forever waives, releases and discharges, to the fullest extent permitted by law, each Releasee from any and all claims (including, without limitation, crossclaims, counterclaims, rights of setoff and recoupment), actions, causes of action, suits, debts, accounts, interests, liens, promises, warranties, damages and consequential damages, demands, agreements, bonds, bills, specialties, covenants, controversies, variances, trespasses, judgments, executions, costs, expenses or claims whatsoever, that such Releasor now has or hereafter may have, of whatsoever nature and kind, whether known or unknown, whether now existing or hereafter arising, whether arising at law or in equity, against any or all of the Holders (and, in addition to the Holders, where a Holder is an investment manager or advisor for the beneficial holders of the 2023 Notes, such beneficial holders) in any capacity and their respective affiliates, subsidiaries, equityholders and “controlling persons” (within the meaning of the federal securities laws), and their respective successors and assigns and each and all of the officers, directors, employees, agents, attorneys, advisors and other representatives of each of the foregoing (collectively, the “Releasees”), based in whole or in part on facts, whether or not now known, existing on or before the date hereof, that relate to, arise out of or otherwise are in connection with: (i) any or all of the Indenture, the 2023 Notes or this Amendment, the Forbearance Agreement or transactions contemplated thereby or any actions or omissions in connection therewith, or (ii) any aspect of the dealings or relationships between or among the Releasors, on the one hand, and any or all of the Releasees, on the other hand, relating to any or all of the documents, transactions, actions or omissions referenced in clause (i) hereof; provided that, notwithstanding anything to the contrary contained in this Section 3, (a) the Holders shall remain obligated under any confidentiality agreement 

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entered into with the Issuer, as the same may be further amended from time to time (the “NDA”), and this Section 3 does not apply to the NDA and (b) this Section 3 shall not apply to any claims resulting from the gross negligence or willful misconduct of any of the Releasees. In entering into this Amendment, each Note Party consulted with, and has been represented by, legal counsel and expressly disclaims any reliance on any representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and effectiveness of the releases set forth above do not depend in any way on any such representations, acts or omissions or the accuracy, completeness or validity thereof. The provisions of this Section 3 shall survive the termination of this Amendment, the Forbearance Agreement, the Indenture and the 2023 Notes and payment in full of the obligations thereunder.

 

Section 4. Key Terms Termsheet. The Issuer shall deliver to Akin and PJT the Key Terms Termsheet (as defined in the Credit Facilities Forbearance Amendment) provided pursuant to Section 5 of the Credit Facilities Forbearance Amendment.

 

Section 5. Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument.  Delivery of an executed counterpart of a signature page of this Amendment by electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

Section 6. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW PRINCIPLES THAT WOULD PROVIDE FOR THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

Section 7. Effectiveness. The Forbearance Agreement is and shall remain in full force and effect as of the date hereof except as modified by this Amendment.

Section 8. Relationship of Parties; No Third Party Beneficiaries. Nothing in this Amendment shall be construed to alter the existing debtor-creditor relationship between the Note Parties and the Holders.  This Amendment is not intended, nor shall it be construed, to create a partnership or joint venture relationship between or among any of the parties hereto.  No person other than a party hereto is intended to be a beneficiary hereof and no person other than a party hereto shall be authorized to rely upon or enforce the contents of this Amendment.

Section 9. Entire Agreement; Modification of Agreement; Verbal Agreements Not Binding.  This Amendment and the Forbearance Agreement constitute the entire understanding of the parties with respect to the subject matter hereof and thereof, and supersedes all other discussions, promises, representations, warranties, agreements and understandings between the parties with respect thereto.  This Amendment and the Forbearance Agreement may not be modified, altered or amended except by an agreement in writing signed by a duly authorized representative of all the parties hereto.  

Section 10. Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

Section 11. Joinder of Additional Holders.  During the Forbearance Period (as defined in the Forbearance Agreement and amended herein) other beneficial holders may become Holders by executing a joinder to the Forbearance Agreement, as amended, the form of which shall be agreeable to the Issuer. 

 Section 12. Severability.  If any provision of this Amendment is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of the Forbearance Agreement, as amended, will remain in full force and effect, and any provision of this Amendment held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable, in 

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each case, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto.  Upon any such determination of invalidity, the parties hereto shall negotiate in good faith to modify this Amendment so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first written above.

 

NOTE PARTIES

 

	
CBL & ASSOCIATES LIMITED PARTNERSHIP,
	
	
as Issuer

By: CBL Holdings I, Inc., its general partner

 

By:      /s/ Farzana Khaleel

Name: Farzana Khaleel

Title:   Executive Vice President and Chief 

            Financial Officer

 
	
	
 
	
 
	
 

	
CBL & ASSOCIATES PROPERTIES, INC.,
	
	
as Limited Guarantor

 

By:      /s/ Farzana Khaleel

Name: Farzana Khaleel

Title:   Executive Vice President and Chief 

           Financial Officer
	

 

 

	
CBL/Imperial Valley GP, LLC

	
CBL/Kirkwood Mall, LLC

	
CBL/Madison I, LLC

	
CBL/Richland G.P., LLC

	
CBL/Sunrise GP, LLC

	
Cherryvale Mall, LLC

	
Hixson Mall, LLC

	
Imperial Valley Mall GP, LLC

	
JG Winston-Salem, LLC

	
Kirkwood Mall Acquisition LLC

	
Kirkwood Mall Mezz LLC

	
Layton Hills Mall CMBS, LLC

	
Madison/East Towne, LLC

	
Madison/West Towne, LLC

	
Madison Joint Venture, LLC

 

[Signature Page to First Amendment to the Forbearance Agreement (2023 Notes)]

 

 

	
Mayfaire GP, LLC

	
MDN/Laredo GP, LLC

	
Mortgage Holdings, LLC

	
Multi-GP Holdings, LLC

	
Pearland Ground, LLC

	
Pearland Town Center GP, LLC,

	
each as a Subsidiary Guarantor

 

By: CBL & Associates Limited Partnership, 

       as the chief manager of each of the above

       listed limited liability companies

 

       By: CBL Holdings I, Inc., its general partner

 

	
 

 
	
By:      /s/ Farzana Khaleel

Name: Farzana Khaleel

Title:   Executive Vice President and Chief

            Financial Officer

 

 

 

	
Frontier Mall Associates Limited Partnership

	
Turtle Creek Limited Partnership,

	
each as a Subsidiary Guarantor

 

By: CBL & Associates Limited Partnership,

       as the general partner of each of the above

       listed limited partnerships

 

       By: CBL Holdings I, Inc., its general partner

 

              By:      /s/ Farzana Khaleel______________

              Name: Farzana Khaleel

             Title:    Executive Vice President and 

                          Chief Financial Officer

	
 
	
 

 

[Signature Page to First Amendment to the Forbearance Agreement (2023 Notes)]

 

 

	
POM-College Station, LLC, 

     as a Subsidiary Guarantor

 

By: CBL & Associates Limited Partnership,

       its managing member

 

       By: CBL Holdings I, Inc., its general

              partner

 

              By:      /s/ Farzana Khaleel

              Name: Farzana Khaleel

              Title:   Executive Vice President and 

                          Chief Financial Officer

 

	
CBL RM-Waco, LLC, 

     as a Subsidiary Guarantor

 

By: CBL/Richland G.P., LLC, its managing member

 

       By: CBL & Associates Limited Partnership, 

              as the chief manager of the managing member

              of the above listed limited liability company

            

              By: CBL Holdings I, Inc., its general partner

 

                     By:     /s/ Farzana Khaleel

                     Name: Farzana Khaleel

                     Title:   Executive Vice President and 

                                 Chief Financial Officer

 

	
Arbor Place Limited Partnership, as a Subsidiary Guarantor

	
By:
	
Multi-Holdings GP, LLC, its general partner

	
Imperial Valley Mall II, L.P., as a Subsidiary Guarantor

	
By:
	
Imperial Valley Mall GP, LLC, its general partner

	
Imperial Valley Mall, L.P., as a Subsidiary Guarantor

	
By:
	
CBL/Imperial Valley GP, LLC, its general partner

	
Mayfaire Town Center, LP, as a Subsidiary Guarantor

	
By:
	
Mayfaire GP, LLC, its general partner

[Signature Page to First Amendment to the Forbearance Agreement (2023 Notes)]

 

 

	
Pearland Town Center Limited Partnership, as a Subsidiary Guarantor

 

By: Pearland Town Center GP, LLC, its general partner

 

       By: CBL & Associates Limited Partnership, 

              as the chief manager of the general partner of 

              each of the above listed limited partnerships

 

              By: CBL Holdings I, Inc., its general partner

 

                     By:      /s/ Farzana Khaleel

                     Name: Farzana Khaleel

                     Title:   Executive Vice President and Chief

                                 Financial Officer

 

	
CBL SM-Brownsville, LLC, as a Subsidiary Guarantor

	
By:
	
CBL/Sunrise GP, LLC, its chief manager

	
Mall Del Norte, LLC, as a Subsidiary Guarantor

By: MDN/Laredo GP, LLC, its chief manager

 

       By: CBL & Associates Limited Partnership,

              as the chief manager of the chief manager of

              each of the above limited liability companies

 

              By: CBL Holdings I, Inc., its general partner

 

                     By: /s/ Farzana Khaleel

                     Name: Farzana Khaleel

                     Title:   Executive Vice President and Chief

                                 Financial Officer

 

 

	
CBL/Westmoreland I, LLC, as a Subsidiary Guarantor

	
CBL/Westmoreland II, LLC, as a Subsidiary Guarantor

	
 

	
By:
	
CW Joint Venture, as the chief manager of each of the

[Signature Page to First Amendment to the Forbearance Agreement (2023 Notes)]

 

 

	
 
	
above listed limited liability companies

 

By: CBL & Associates Limited Partnership, its manager

 

       By: CBL Holdings I, Inc., its general partner

 

              By:     /s/ Farzana Khaleel

              Name: Farzana Khaleel

              Title:   Executive Vice President and Chief 

                          Financial Officer

 

	
CBL/Westmoreland, L.P., as a Subsidiary Guarantor

 

By: CBL/Westmoreland I, LLC, its general partner

 

       By: CW Joint Venture, its chief manager

 

              By: CBL & Associates Limited Partnership, 

                     its manager

 

                     By: CBL Holdings I, Inc., its general     

                            partner

 

                            By:      /s/ Farzana Khaleel

                            Name: Farzana Khaleel

                            Title:   Executive Vice President and

                                        Chief Financial Officer

	
 

CW Joint Venture, LLC, as a Subsidiary Guarantor

 

	
By:
	
CBL & Associates Limited Partnership, 

	
 
	
its manager 

 

By: CBL Holdings I, Inc., its general partner

 

       By:      /s/ Farzana Khaleel

       Name: Farzana Khaleel

       Title:   Executive Vice President and Chief

                   Financial Officer

 

 

[Signature Page to First Amendment to the Forbearance Agreement (2023 Notes)]cbl-ex103_73.htm

Exhibit 10.3

WELLS FARGO BANK, NA

301 South College Street, 15th Floor 

Charlotte, NC 28202

July 15, 2020

 

CBL & Associates Limited Partnership

c/o CBL & Associates Properties, Inc.

2030 Hamilton Place Blvd., Suite 500

Chattanooga, Tennessee 37421-6000

Attention: Chief Financial Officer

 

	
Re:
	
Extension of the Forbearance Termination Date; Modification of Specific Defaults 

 

Ladies and Gentlemen:

Reference is made to (i) the Credit Agreement, dated January 30, 2019 (as amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among CBL & ASSOCIATED LIMITED PARTNERSHIP, a Delaware limited partnership (“Borrower”), CBL & ASSOCIATES PROPERTIES, INC., a Delaware corporation (“Parent”), the lenders from time to time party thereto (the “Lenders”), and Wells Fargo Bank, National Association, as administrative agent (“Administrative Agent”) for itself and for the benefit of the Lenders, and (ii) that certain Forbearance Agreement, dated June 30, 2020 (the “Existing Forbearance Agreement”), between Borrower and Administrative Agent, on behalf of the Lenders.  Capitalized terms used herein and not otherwise defined shall have the meaning given to such terms in the Credit Agreement or the Existing Forbearance Agreement, as applicable.  

Obligors have requested that Administrative Agent and Lenders modify the Forbearance Agreement, and Administrative Agent and Lenders are willing to do so, subject to the terms and conditions set forth in this letter agreement (the “Amendment” and the Existing Forbearance Agreement after giving effect to this Amendment, the “Forbearance Agreement”).

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Administrative Agent and Obligors hereby agree as follows:

1.In order to acknowledge the expiration of the cure period under the Indenture with respect to the June 15th Interest Payment, the following modifications are made to the Forbearance Agreement:

(a)Section 1(a)(i) and Section 1(a)(ii) of the Forbearance Agreement are hereby restated as follows:

	
 
	

	
“(i)Pursuant to those certain Reservation of Rights letters sent by Administrative Agent to Borrower on each of May 26, 2020, 

 

CBL & Associates Limited Partnership

Page 

 

	
 
		
June 2, 2020, and June 16, 2020, Administrative Agent and Lenders have stated that Borrower is in default under the Loan Documents due to certain Events of Default identified therein (collectively, the “Original Specified Defaults”).  Borrower has reserved and continues to reserve its right to dispute the Original Specified Defaults.  In addition, as a result of Borrower’s failure to make the interest payment due on June 1, 2020 (the “June 1st Interest Payment”) with respect to the Senior Notes issued pursuant to the Indenture (as required pursuant to the Indenture), the failure to make the interest payment due on June 15, 2020 (the “June 15th Interest Payment”) with respect to the Senior Notes, and as a default in the payment of interest on any series of Senior Notes after the same has become due and payable, constitutes a Default under the Indenture, a Default and, with respect to the June 1st Interest Payment and the June 15th Interest Payment, an Event of Default now exist pursuant to Section 11.1(d)(iv) of the Credit Agreement (the “Cross Defaults” and together with the Original Specified Defaults, collectively, the “Specified Defaults”).

	
 
	

	
(ii)Each of the Obligors acknowledge (A) receipt of notice of each of the Specified Defaults and that the Cross Defaults exist and are continuing and constitute a Default and, with respect to the June 1st Interest Payment and the June 15th Interest Payment, an Event of Default, (B) that while the Borrower disputes whether the Specified Defaults exist, none of the Specified Defaults have been waived or excused by Administrative Agent or Lenders at any time or in any manner, and (C) that there are no claims, demands, offsets or defenses at law or in equity that would defeat or diminish Administrative Agent’s or Lenders’ present and unconditional right to collect the indebtedness evidenced by the Loan Documents, and to proceed to enforce the rights and remedies available to Administrative Agent and Lenders as provided in the Loan Documents”

(b)Section 3(c) of the Forbearance agreement is restated as follows:

	
 
	

	
“(c)the making by Parent, Borrower or any of their respective direct or indirect Subsidiaries of all or any portion of the interest payments due with respect to the Senior Notes due on June 1, 2020, June 15, 2020, July 15, 2020 or the making of any other payment (including, without limitation, by way of repurchase, exchange, discharge, defeasance or otherwise) by Parent, Borrower or any of their respective direct or indirect Subsidiaries with respect to the Senior Notes; or”

(c)The proviso in the penultimate sentence of the final paragraph of Section 3 of the Forbearance Agreement is restated as follows:

“provided, however, to the extent that an Event of Default under the Indenture arising solely from the nonpayment of the June 1st Interest Payment and the June 15th Interest Payment is waived by the applicable Senior Noteholders, in 

 

CBL & Associates Limited Partnership

Page 

 

accordance with the Indenture on or before the Forbearance Termination Date or the payment of the June 1st Interest Payment and the June 15th Interest Payment is made, and as a result of which the Senior Notes cannot be accelerated in accordance with the terms of the Indenture, then any Cross Default arising solely from the nonpayment of the June 1st Interest Payment and the June 15th Interest Payment shall also be waived under the Credit Agreement.”

2.The date and time set forth in Section 3(a) of the Forbearance Agreement is hereby amended to be “11:59 p.m. (Eastern Daylight Time) on July 22, 2020”;

3.On or prior to the date of this Amendment and as a condition to its effectiveness, Obligors shall have paid to Jones Day all legal fees incurred-to-date and for which an invoice has been provided prior to the execution of this Amendment as provided for in that certain fee reimbursement letter dated May 19, 2020;

4.On or prior to the date of this Amendment and as a condition to its effectiveness, Borrower shall deliver to Administrative Agent a fully executed copy of forbearance agreement by and among Obligors and a majority of Senior Noteholders holding the 5.250% Senior Notes Due December 1, 2023 in the original principal amount of $450,000,000 and a majority of Senior Noteholders holding the 5.95% Senior Notes Due December 15, 2026 in the original principal amount of $625,000,000, which forbearance agreement (a) shall have a scheduled expiration date not earlier than 11:59 p.m. (Eastern Daylight Time) on July 22, 2020, (b) shall not include or be contingent upon the delivery of any collateral or payments on, or otherwise in respect of, the Senior Notes, including, without limitation, any forbearance or other fee arising under such agreement, and (c) shall otherwise be in form and substance acceptable to Requisite Lenders; 

5.On or prior to 5:00 p.m. eastern time on Friday, July 17, 2020, Obligors shall deliver a written proposal documenting the Obligors proposed key terms for a restructuring of the Credit Agreement Indebtedness and Bond Indebtedness, which proposal must detail, at a minimum, (a) the Obligors’ proposals regarding the granting of additional collateral (to be specified by property location) to Administrative Agent, for the benefit of the Lenders, and any collateral (to be specified by property location) proposed to be granted to support Bond Indebtedness, (b) the proposed amount of Bond Indebtedness, the interest rate and other economic terms thereon, as well as the proposed percentage of equitization of Bond Indebtedness, (c) the proposed percentage of equity to be given to existing management or existing equity holders (including through any “MIP”), and (d) the amount of any cash payments proposing to be made to the Lenders or the Bond Indebtedness (the “Key Terms Termsheet”), and any failure to deliver such Key Terms Termheet when and as required hereunder shall constitute a Forbearance Default; and

6.Obligors will facilitate an all advisor call (and such calls shall occur) to discuss the Key Terms Termsheet on Saturday, July 18th amongst the Obligors’ counsel and advisors,  Administrative Agent’s counsel and advisors, and Bondholders’ counsel and advisors, and on daily basis thereafter to the extent requested by Administrative Agent, and any failure to do either of the foregoing shall constitute a Forbearance Default.

 

CBL & Associates Limited Partnership

Page 

 

To facilitate execution, this Amendment may be executed in as many counterparts as may be convenient or required. The words “execution,” “signed,” “signature,” and words of like import in this Amendment shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures (including, without limitation, DocuSign and AdobeSign).  The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.  Each party hereto hereby waives any defenses to the enforcement of the terms of this Agreement based on the form of its signature, and hereby agrees that such electronically transmitted or signed signatures shall be conclusive proof, admissible in judicial proceedings, of such party’s execution of this Amendment. Even though the parties agree that electronic signatures are legally enforceable and intended to be effective for all purposes, the signing parties agree if requested by Administrative Agent in its sole discretion to promptly deliver to Administrative Agent the requested original document bearing an original manual signature, to the extent required or advisable to be delivered in connection with any program made available to Administrative Agent or any of its affiliates by the Federal Reserve, U.S. Treasury Department or any other federal or state regulatory body.

As of the date of this Amendment, but without limiting the limited reservation of rights in Section 25(a) of the Forbearance Agreement, Obligors, to the fullest extent permitted by law, each hereby releases, and forever discharges Administrative Agent, each Lender and each of its or their respective trustees, officers, directors, participants, beneficiaries, agents, attorneys, affiliates and employees, and the successors and assigns of the foregoing (collectively, the “Released Parties”), from any and all claims, actions, causes of action, suits, defenses, set-offs against the Obligations, and liabilities of any kind or character whatsoever, known or unknown, contingent or matured, suspected or unsuspected, anticipated or unanticipated, liquidated or unliquidated, claimed or unclaimed, in contract or in tort, at law or in equity, or otherwise, including, without limitation, claims or defenses relating to allegations of fraud, duress, bad faith and usury, which relate, in whole or in part, directly or indirectly, to: (A) the Facility; (B) the Loan Documents; (C) the Obligations; (D) the Collateral; or (E) the Forbearance Agreement, including, without limitation, the negotiation, execution, performance or enforcement of the Loan Documents and this Agreement, any claims, causes of action or defenses based on the negligence of any of the Released Parties or on any “lender liability” theories of, among others, bad faith, unfair dealing, duress, coercion, control, misrepresentation, omissions, misconduct, overreaching, unconscionability, disparate bargaining position, reliance, equitable subordination, fraud, or otherwise, and any claim based upon fraud, duress, illegality or usury (collectively, the “Released Claims”), in each case other than in connection with the gross negligence or willful misconduct of any Released Party.  No Obligor shall intentionally, willfully or knowingly commence, join in, prosecute, or participate in any suit or other proceeding in a position which is adverse to any of the Released Parties, arising directly or indirectly from any of the Released Claims.  The Released Claims include, but are not 

 

Loan No. 12503DAN8

 

limited to, any and all unknown, unanticipated, unsuspected or misunderstood claims and defenses, all of which are released by the provisions hereof in favor of the Released Parties.

Obligors each acknowledges and agrees that it has no defenses, counterclaims, offsets, cross-complaints, causes of action, rights, claims or demands of any kind or nature whatsoever, including, without limitation, any usury or lender liability claims or defenses, arising out of the Facility or the Loan Documents or the Forbearance Agreement, that can be asserted either to reduce or eliminate all or any part of any of Obligor’s liability to Administrative Agent and Lenders under the Loan Documents, or to seek affirmative relief or damages of any kind or nature from Administrative Agent or Lenders, for or in connection with the Facility or any of the Loan Documents.  Each of Obligors further acknowledges that, to the extent that any such claim does in fact exist, it is being fully, finally and irrevocably released by them as provided in this Amendment.

Each of Obligors hereby waives the provisions of any applicable laws restricting the release of claims which the releasing parties do not know or suspect to exist at the time of release, which, if known, would have materially affected the decision to agree to these releases.  Accordingly, each of Obligors hereby agrees, represents and warrants to Administrative Agent and each Lender that it understands and acknowledges that factual matters now unknown may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are presently unknown, unanticipated and unsuspected, and each of Obligors further agrees, represents and warrants that the releases provided herein have been negotiated and agreed upon, and in light of, that realization and that Obligors nevertheless hereby intend to release, discharge and acquit the parties set forth hereinabove from any such unknown causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are in any manner set forth in or related to the Released Claims and all dealings in connection therewith.  In making the releases set forth in this Amendment, each of Obligors acknowledges that it has not relied upon any representation of any kind made by any Released Party. It is understood and agreed by Released Parties that the acceptance of delivery of the releases set forth in this Amendment shall not be deemed or construed as an admission of liability by any of the Released Parties and Administrative Agent, on behalf of itself and the other Released Parties, hereby expressly denies liability of any nature whatsoever arising from or related to the subject of such releases.

The substantive laws of the State of New York shall govern the construction of this Amendment and the rights and remedies of the parties hereto.

Section 13.5  and Section 13.13 of the Credit Agreement are hereby incorporated into this Amendment by this reference as if set forth in full herein.

Nothing in this letter shall alter of affect any provision, condition, or covenant contained in any of the Loan Documents or affect or impair any rights, powers, or remedies of Administrative Agent or any Lender, or shall modify or amend any provisions of the Forbearance Agreement, other than as expressly set forth above.  The provisions of the Loan Documents and the Forbearance Agreement shall continue in full force and effect.

(SIGNATURES ON FOLLOWING PAGE)

 

Signature Page – CBL Amendment to the Forbearance Agreement

Loan No. 12503DAN8

 

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Amendment as of the day and year first above written. 

 

 

 

“BORROWER”

 

CBL & Associates Limited Partnership,

a Delaware limited partnership

 

By: CBL Holdings I, Inc., 

Its sole general partner

 

By:/s/ Farzana Khaleel

    Name:Farzana Khaleel

    Title:Executive Vice President and Chief Financial Officer

 

 

“PARENT”

 

CBL & Associates Properties, Inc., 

a Delaware corporation

 

By:/s/ Farzana Khaleel

Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

 

 

 

 

 

 

[Signature Pages Continue on Following Page]

 

 

Signature Page – CBL Amendment to the Forbearance Agreement

Loan No. 12503DAN8

 

“ADMINISTRATIVE AGENT”

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

a national banking association,

as Administrative Agent

 

By:/s/ Joel Bartis______________________

Name:Joel Bartis

Title:Senior Vice President

 

 

 

 

 

 

 

 

[Signature Pages Continue on Following Page]

 

Signature Page – CBL Amendment to the Forbearance Agreement

Loan No. 12503DAN8

 

“SUBSIDIARY GUARANTORS”

 

CBL/Imperial Valley GP, LLC

CBL/Kirkwood Mall, LLC

CBL/Madison I, LLC

CBL/Richland G.P., LLC

CBL/Sunrise GP, LLC

Cherryvale Mall, LLC

Hixson Mall, LLC

Imperial Valley Mall GP, LLC

JG Winston-Salem, LLC

Kirkwood Mall Acquisition LLC

Kirkwood Mall Mezz LLC

Layton Hills Mall CMBS, LLC

Madison/East Towne, LLC

Madison/West Towne, LLC

Madison Joint Venture, LLC

Mayfaire GP, LLC

MDN/Laredo GP, LLC

Mortgage Holdings, LLC

Multi-GP Holdings, LLC

Pearland Ground, LLC

Pearland Town Center GP, LLC

 

	
By:
	
CBL & Associates Limited Partnership, as the chief manager of each of the above listed limited liability companies

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

By:/s/ Farzana Khaleel

Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

Frontier Mall Associates Limited Partnership

Turtle Creek Limited Partnership

 

	
By:
	
CBL & Associates Limited Partnership, as the general partner of each of the above listed limited partnerships

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

 

[Signature Pages Continue on Following Page]

 

 

Signature Page – CBL Amendment to the Forbearance Agreement

Loan No. 12503DAN8

 

POM-College Station, LLC

 

	
By:
	
CBL & Associates Limited Partnership, its managing member

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

CBL RM-Waco, LLC

 

	
By:  
	
CBL/Richland G.P., LLC, its managing member

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as the chief manager of the managing member of the above listed limited liability company

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

Arbor Place Limited Partnership

 

	
By:
	
Multi-Holdings GP, LLC, its general partner

 

Imperial Valley Mall II, L.P.

 

	
By:  
	
Imperial Valley Mall GP, LLC, its general partner

 

Imperial Valley Mall, L.P.

 

	
By:  
	
CBL/Imperial Valley GP, LLC, its general partner

 

Mayfaire Town Center, LP

 

	
By:
	
Mayfaire GP, LLC, its general partner

 

Pearland Town Center Limited Partnership

 

	
By:
	
Pearland Town Center GP, LLC, its general partner

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as the chief manager of the general partner of each of the above listed limited partnerships

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

Signature Page – CBL Amendment to the Forbearance Agreement

Loan No. 12503DAN8

 

CBL SM-Brownsville, LLC

 

	
 
	
By:  
	
CBL/Sunrise GP, LLC, its chief manager

 

Mall Del Norte, LLC

 

	
 
	
By:  
	
MDN/Laredo GP, LLC, its chief manager

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as the chief manager of the chief manager of each of the above listed limited liability companies

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

CBL/Westmoreland I, LLC

CBL/Westmoreland II, LLC

 

	
 
	
By:  
	
CW Joint Venture, LLC, as the chief manager of each of the above listed limited liability companies

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as the manager of the chief manager of each of the above listed limited liability companies

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

CBL/Westmoreland, L.P.

	
By:
	
CBL/Westmoreland I, LLC, its general partner

 

	
 
	
By:
	
CW Joint Venture, LLC, its chief manager

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as manager of the chief manager of the general partner of the above listed limited partnership

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	
    
	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

[Signature Pages Continue on Following Page]

 

Signature Page – CBL Amendment to the Forbearance Agreement

Exhibit 10.3

 

CW Joint Venture, LLC

 

	
By:
	
CBL & Associates Limited Partnership, its manager

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	
    
	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

 

 

 

[Remainder of Page Intentionally Left Blank; Signature Pages Continue on Following Page]

 

 

 

 

“PLEDGORS”

 

CBL & Associates Limited Partnership

 

By: CBL Holdings I, Inc., its general partner

 

By:/s/ Farzana Khaleel

Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

Madison Joint Venture, LLC

Mortgage Holdings, LLC

 

	
By: 
	
CBL & Associates Limited Partnership, as chief manager of each of Madison Joint Venture, LLC and Mortgage Holdings, LLC

 

By:CBL Holdings I, Inc., its general partner

 

	
 
	
By:
	
/s/ Farzana Khaleel

	
 
	
Name:
	
Farzana Khaleel

	
 
	
Title:
	
Executive Vice President and Chief Financial Officer

 

 

 

 

[End of Signature Pages]

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