Document:

Exhibit 10.16

 

UNCONDITIONAL GUARANTY OF PAYMENT AND PERFORMANCE

 

FOR AND IN CONSIDERATION OF the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration paid or delivered to the undersigned FOUR SPRINGS CAPITAL TRUST, a Maryland real estate investment trust (“REIT”), the other “Subsidiary Guarantors” (as defined in the Credit Agreement) that are a party hereto and the Additional Guarantors which may hereafter become a party hereto, if any (hereinafter referred to individually as a “Subsidiary Guarantor” and collectively, as “Subsidiary Guarantors”; REIT and the Subsidiary Guarantors are sometimes hereinafter referred to individually as a “Guarantor” and collectively as “Guarantors”), the receipt and sufficiency whereof are hereby acknowledged by Guarantors, and for the purpose of seeking to induce KEYBANK NATIONAL ASSOCIATION, a national banking association (hereinafter referred to as “Lender”, which term shall also include each other Lender which may now be or hereafter become a party to the “Credit Agreement” (as hereinafter defined), any Lender acting as the Issuing Lender under the Credit Agreement and shall also include any such individual Lender acting as agent for all of the Lenders), to extend credit or otherwise provide financial accommodations to FOUR SPRINGS CAPITAL TRUST OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“Borrower”) under the Credit Agreement, and seeking to induce the Lender Hedge Providers to provide financial accommodations by entering into derivative contracts that may give rise to Hedge Obligations, which extension of credit and provision of financial accommodations will be to the direct interest, advantage and benefit of Guarantors, Guarantors do hereby, jointly and severally, absolutely, unconditionally and irrevocably guarantee to Lender and the Lender Hedge Providers the complete payment and performance of the following liabilities, obligations and indebtedness of Borrower to Lender and Lender Hedge Providers (hereinafter referred to collectively as the “Obligations”) (capitalized terms that are used herein that are not otherwise defined herein shall have the meanings set forth in the Credit Agreement):

 

(a)           the full and prompt payment when due, whether by acceleration or otherwise, either before or after maturity thereof, of the Severed, Consolidated, Amended and Restated Renewal Revolving Credit Notes made by Borrower to the order of the Lenders in the aggregate principal face amount of up to Seventy Five Million and No/100 Dollars ($75,000,000.00), and of the Swing Loan Note made by Borrower to the order of the Swing Loan Lender in the principal face amount of Seven Million Five Hundred Thousand and No/100 Dollars ($7,500,000.00), together with interest as provided in the Severed, Consolidated, Amended and Restated Renewal Revolving Credit Notes and the Swing Loan Note and together with any replacements, supplements, renewals, modifications, consolidations, restatements, increases and extensions thereof; and

 

(b)           the full and prompt payment and performance of any “Hedge Obligations” (as defined in the Credit Agreement); and

 

(c)           the full and prompt payment and performance when due of any and all obligations of Borrower and any Guarantor to Lender under the Security Documents, together with any replacements, supplements, renewals, modifications, consolidations, restatements and extensions thereof; and

 

 

(d)           the full and prompt payment when due, whether by acceleration or otherwise, either before or after maturity thereof, of each other note as may be issued under that certain Credit Agreement dated of even date herewith (as replaced, supplemented, amended, modified, consolidated, restated, increased or extended, hereinafter referred to as the “Credit Agreement”) among Borrower, KeyBank, for itself and as agent, and the other lenders now or hereafter a party thereto, together with interest as provided in each such note, together with any replacements, supplements, renewals, modifications, consolidations, restatements, increases, and extensions thereof (the Severed, Consolidated, Amended and Restated Renewal Revolving Credit Notes, the Swing Loan Note and each of the notes described in this subparagraph (b) are hereinafter referred to collectively as the “Note”); and

 

(e)           the full and prompt payment and performance of any and all obligations of Borrower to Lender and Issuing Lender under the terms of the Credit Agreement, together with any replacements, supplements, renewals, modifications, consolidations, restatements, and extensions thereof; and

 

(f)            the full and prompt payment and performance of any and all other obligations of Borrower to Lender under any other agreements, documents or instruments now or hereafter evidencing, securing or otherwise relating to the indebtedness evidenced by the Note or the Credit Agreement (the Note, the Credit Agreement, the Security Documents and said other agreements, documents and instruments are hereinafter collectively referred to as the “Loan Documents” and individually referred to as a “Loan Document”).

 

Notwithstanding anything to the contrary contained herein, under no circumstances shall any of the “Obligations” guaranteed hereby include any obligation that constitutes an Excluded Hedge Obligation of such Guarantor.

 

1.             Agreement to Pay and Perform; Costs of Collection.  Guarantors do hereby agree that following and during the continuance of an Event of Default under the Loan Documents if the Note is not paid by Borrower in accordance with its terms, or if any and all sums which are now or may hereafter become due from Borrower to Lender under the Loan Documents are not paid by Borrower in accordance with their terms, or if any and all other obligations of Borrower to Lender under the Note or of Borrower or any Guarantor under the other Loan Documents are not performed by Borrower or Guarantor, as applicable, in accordance with their terms, Guarantors will immediately upon demand make such payments and perform such obligations.  Guarantors further agree to pay Lender on demand all reasonable costs and expenses (including court costs and reasonable attorneys’ fees and disbursements) paid or incurred by Lender in endeavoring to collect the Obligations guaranteed hereby, to enforce any of the Obligations of Borrower guaranteed hereby, or any portion thereof, or to enforce this Guaranty, and until paid to Lender, such sums shall bear interest at the Default Rate set forth in Section 4.11 of the Credit Agreement unless collection from Guarantors of interest at such rate would be contrary to applicable law, in which event such sums shall bear interest at the highest rate which may be collected from Guarantors under applicable law.

 

2.             Reinstatement of Refunded Payments.  If, for any reason, any payment to Lender of any of the Obligations guaranteed hereunder is required to be refunded, rescinded or returned by Lender to Borrower, or paid or turned over to any other Person, including, without limitation,

 

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by reason of the operation of bankruptcy, reorganization, receivership or insolvency laws or similar laws of general application relating to creditors’ rights and remedies now or hereafter enacted,  Guarantors agree to pay to the Lender on demand an amount equal to the amount so required to be refunded, paid or turned over (the “Turnover Payment”), the obligations of Guarantors shall not be treated as having been discharged by the original payment to Lender giving rise to the Turnover Payment, and this Guaranty shall be treated as having remained in full force and effect for any such Turnover Payment so made by Lender, as well as for any amounts not theretofore paid to Lender on account of such obligations.

 

3.             Rights of Lender to Deal with Collateral, Borrower and Other Persons.  Each Guarantor hereby consents and agrees that Lender may at any time, and from time to time, without thereby releasing any Guarantor from any liability hereunder and without notice to or further consent from any Guarantor or any other Person or entity, either with or without consideration: release or surrender any lien or other security of any kind or nature whatsoever held by it or by any Person, firm or corporation on its behalf or for its account, securing any indebtedness or liability hereby guaranteed; substitute for any collateral so held by it, other collateral of like kind, or of any kind; modify the terms of the Note or the other Loan Documents; extend or renew the Note for any period; grant releases, compromises and indulgences with respect to the Note or the other Loan Documents and to any Persons or entities now or hereafter liable thereunder or hereunder; release any other guarantor (including any Guarantor), surety, endorser, obligor or accommodation party of the Note or any other Loan Documents; or take or fail to take any action of any type whatsoever.  No such action which Lender shall take or fail to take in connection with the Note or the other Loan Documents, or any of them, or any security for the payment of the indebtedness of Borrower to Lender or for the performance of any obligations or undertakings of Borrower, any Guarantor or any other Person, nor any course of dealing with Borrower or any other Person, shall release any Guarantor’s obligations hereunder, affect this Guaranty in any way or afford any Guarantor any recourse against Lender.  The provisions of this Guaranty shall extend and be applicable to all replacements, supplements, renewals, amendments, extensions, consolidations, restatements and modifications of the Note and the other Loan Documents, and any and all references herein to the Note and the other Loan Documents shall be deemed to include any such replacements, supplements, renewals, extensions, amendments, consolidations, restatements or modifications thereof.  Without limiting the generality of the foregoing, Guarantors acknowledge the terms of Section 18.3 of the Credit Agreement and agree that this Guaranty shall extend and be applicable to each new or replacement note delivered by Borrower pursuant thereto without notice to or further consent from Guarantors, or any of them.

 

4.             No Contest with Lender; Subordination.  So long as any of the Obligations hereby guaranteed remain unpaid or undischarged or any Lender has any obligation to make Loans or issue Letters of Credit, Guarantors will not, by paying any sum recoverable hereunder (whether or not demanded by Lender) or by any means or on any other ground, claim any set-off or counterclaim against Borrower in respect of any liability of any Guarantor to Borrower or, in proceedings under federal bankruptcy law or insolvency proceedings of any nature, prove in competition with Lender in respect of any payment hereunder or be entitled to have the benefit of any counterclaim or proof of claim or dividend or payment by or on behalf of Borrower or the benefit of any other security for any of the Obligations hereby guaranteed which, now or hereafter, Lender may hold or in which it may have any share, Guarantors hereby expressly

 

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waive any right of contribution or reimbursement from or indemnity against Borrower or any other Guarantor, whether at law or in equity, arising from any payments made by any Guarantor pursuant to the terms of this Guaranty, and Guarantors acknowledge that Guarantors have no right whatsoever to  proceed against Borrower, any other Guarantor or any other Person for reimbursement of any such payments except for those rights of each Guarantor under the Contribution Agreement; provided, however, each Guarantor agrees not to pursue or enforce any of its rights under the Contribution Agreement or otherwise and each Guarantor agrees not to make or receive any payment on account of the Contribution Agreement or otherwise so long as any of the Obligations remain unpaid or undischarged or any Lender has any obligation to make Loans or issue Letters of Credit, In the event any Guarantor shall receive any payment under or on account of the Contribution Agreement or otherwise, it shall hold such payment as trustee for Lender and be paid over to Lender on account of the indebtedness of Borrower to Lender but without reducing or affecting in any manner the liability of Guarantors under the other provisions of this Guaranty except to the extent the principal amount or other portion of such indebtedness shall have been reduced by such payment.  In connection with the foregoing, Guarantors expressly waive any and all rights of subrogation to Lender against Borrower, any other Guarantor or any other Person, and Guarantors hereby waive any rights to enforce any remedy which Lender may have against Borrower, any other Guarantor or any other Person and any rights to participate in any collateral for Borrower’s obligations under the Loan Documents.  Guarantors hereby subordinate any and all indebtedness of Borrower or any other Guarantor now or hereafter owed to any Guarantor to all indebtedness of Borrower or any other Guarantor to Lender, and agree with Lender that (a) Guarantors shall not demand or accept any payment from Borrower or any other Guarantor on account of such indebtedness, (b) Guarantors shall not claim any offset or other reduction of Guarantors’ obligations hereunder because of any such indebtedness, and (c) Guarantors shall not take any action to obtain any interest in any of the security described in and encumbered by the Loan Documents because of any such indebtedness; provided, however, that, if Lender so requests, such indebtedness shall be collected, enforced and received by Guarantors as trustee for Lender and be paid over to Lender on account of the indebtedness of Borrower or such Guarantor to Lender, but without reducing or affecting in any manner the liability of Guarantors under the other provisions of this Guaranty except to the extent the principal amount or other portion of such outstanding indebtedness shall have been reduced by such payment.

 

5.             Waiver of Defenses.  Guarantors hereby agree that their obligations hereunder shall not be affected or impaired by, and hereby waive and agree not to assert or take advantage of any defense based on:

 

(a)           (i) any change in the amount, interest rate or due date or other term of any of the obligations hereby guaranteed, (ii) any change in the time, place or manner of payment of all or any portion of the obligations hereby guaranteed, (iii) any amendment or waiver of, or consent to the departure from or other indulgence with respect to, the Credit Agreement, any other Loan Document, or any other document or instrument evidencing or relating to any obligations hereby guaranteed, or (iv) any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action or inaction under or in respect of, the Credit Agreement, any of the other Loan Documents, or any other documents, instruments or agreements relating to the obligations hereby guaranteed or any other instrument or agreement referred to therein or

 

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evidencing any obligations hereby guaranteed or any assignment or transfer of any of the foregoing;

 

(b)           any subordination of the payment of the obligations hereby guaranteed to the payment of any other liability of Borrower or any other Person;

 

(c)           any act or failure to act by Borrower or any other Person which may adversely affect any Guarantor’s subrogation rights, if any, against Borrower or any other Person to recover payments made under this Guaranty;

 

(d)           any nonperfection or impairment of any security interest or other Lien on any collateral, if any, securing in any way any of the obligations hereby guaranteed;

 

(e)           any application of sums paid by Borrower or any other Person with respect to the liabilities of Lender, regardless of what liabilities of the Borrower remain unpaid;

 

(f)            any defense of Borrower, including without limitation, the invalidity, illegality or unenforceability of any of the Obligations;

 

(g)           either with or without notice to Guarantors, any renewal, extension, modification, amendment or other changes in the Obligations, including but not limited to any material alteration of the terms of payment or performance of the Obligations;

 

(h)           any statute of limitations in any action hereunder or for the collection of the Note or for the payment or performance of any obligation hereby guaranteed;

 

(i)            the incapacity, lack of authority, death or disability of Borrower, any Guarantor or any other Person or entity, or the failure of Lender to file or enforce a claim against the estate (either in administration, bankruptcy or in any other proceeding) of Borrower or any Guarantor or any other Person or entity;

 

(j)            the dissolution or termination of existence of Borrower, any Guarantor or any other Person or entity;

 

(k)           the voluntary or involuntary liquidation, sale or other disposition of all or substantially all of the assets of Borrower or any Guarantor or any other Person or entity;

 

(l)            the voluntary or involuntary receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, assignment, composition, or readjustment of, or any similar proceeding affecting, Borrower or any Guarantor or any other Person or entity, or any of Borrower’s or any Guarantor’s or any other Person’s or entity’s properties or assets;

 

(m)          the damage, destruction, condemnation, foreclosure or surrender of all or any part of the Collateral, any Mortgaged Property, any other Real Estate or any of the improvements located thereon;

 

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(n)           the failure of Lender to give notice of the existence, creation or incurring of any new or additional indebtedness or obligation of Borrower or of any action or nonaction on the part of any other Person whomsoever in connection with any obligation hereby guaranteed;

 

(o)           any failure or delay of Lender to commence an action against Borrower or any other Person, to assert or enforce any remedies against Borrower under the Note or the other Loan Documents, or to realize upon any security;

 

(p)           any failure of any duty on the part of Lender to disclose to any Guarantor any facts it may now or hereafter know regarding Borrower (including, without limitation Borrower’s financial condition), any other Person, the Collateral, or any other assets or liabilities of such Persons, whether such facts materially increase the risk to Guarantors or not (it being agreed that Guarantors assume responsibility for being informed with respect to such information);

 

(q)           failure to accept or give notice of acceptance of this Guaranty by Lender;

 

(r)            failure to make or give notice of presentment and demand for payment of any of the indebtedness or performance of any of the obligations hereby guaranteed;

 

(s)            failure to make or give protest and notice of dishonor or of default to Guarantors or to any other party with respect to the indebtedness or performance of obligations hereby guaranteed;

 

(t)            any and all other notices whatsoever to which Guarantors might otherwise be entitled;

 

(u)           any lack of diligence by Lender in collection, protection or realization upon any collateral securing the payment of the indebtedness or performance of obligations hereby guaranteed;

 

(v)           the invalidity or unenforceability of the Note, or any of the other Loan Documents, or any assignment or transfer of the foregoing;

 

(w)          the compromise, settlement, release or termination of any or all of the obligations of Borrower under the Note or the other Loan Documents or the Hedge Obligations;

 

(x)           any transfer by Borrower or any other Person of all or any part of the security encumbered by the Loan Documents;

 

(y)           the failure of Lender to perfect any security or to extend or renew the perfection of any security; or

 

(z)           to the fullest extent permitted by law, any other legal, equitable or surety defenses whatsoever to which Guarantors might otherwise be entitled, it being the intention that the obligations of Guarantors hereunder are absolute, unconditional and irrevocable.

 

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Each Guarantor understands that the exercise by Lender of certain rights and remedies may affect or eliminate such Guarantor’s right of subrogation against the Borrower, the other Guarantors or other Persons and that such Guarantor may therefore incur partially or totally nonreimbursable liability hereunder.  Nevertheless, Guarantors hereby authorize and empower Lender, its successors, endorsees and assigns, to exercise in its or their sole discretion, any rights and remedies, or any combination thereof, which may then be available, it being the purpose and intent of Guarantors that the obligations hereunder shall be absolute, continuing, independent and unconditional under any and all circumstances.  Notwithstanding any other provision of this Guaranty to the contrary, each Guarantor hereby waives and releases any claim or other rights which such Guarantor may now have or hereafter acquire against Borrower or any other Guarantor or other Person of all or any of the obligations of Guarantors hereunder that arise from the existence or performance of such Guarantor’s obligations under this Guaranty or any of the other Loan Documents, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification, any right to participate in any claim or remedy of Lender against Borrower or any other Guarantor or other Person or any Collateral which Lender now has or hereafter acquires, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, by any payment made hereunder or otherwise, including, without limitation, the right to take or receive from Borrower or any other Guarantor or other Person, directly or indirectly, in cash or other property or by setoff or in any other manner, payment or security on account of such claim or other rights, except for those rights of each Guarantor under the Contribution Agreement; provided, however, each Guarantor agrees not to pursue or enforce any of its rights under the Contribution Agreement and each Guarantor agrees not to make or receive any payment on account of the Contribution Agreement so long as any of the Obligations remain unpaid or undischarged or any Lender has any obligation to make Loans or issue Letters of Credit.  In the event any Guarantor shall receive any payment under or on account of the Contribution Agreement, it shall hold such payment as trustee for Lender and be paid over to Lender on account of the indebtedness of Borrower to Lender but without reducing or affecting in any manner the liability of Guarantors under the other provisions of this Guaranty except to the extent the principal amount or other portion of such indebtedness shall have been reduced by such payment.

 

6.             Guaranty of Payment and Performance and Not of Collection.  This is a guaranty of payment and performance and not of collection.  The liability of Guarantors under this Guaranty shall be primary, direct and immediate and not conditional or contingent upon the pursuit of any remedies against Borrower or any other Person, nor against securities or liens available to Lender, its successors, successors in title, endorsees or assigns.  Guarantors hereby waive any right to require that an action be brought against Borrower or any other Person or to require that resort be had to any security or to any balance of any deposit account or credit on the books of Lender in favor of Borrower or any other Person.

 

7.             Rights and Remedies of Lender.  In the event of an Event of Default under the Note or the other Loan Documents, or any of them, that is continuing (it being understood that the Lender has no obligation to accept cure after an Event of Default occurs), Lender shall have the right to enforce its rights, powers and remedies thereunder or hereunder or under any other Loan Document, in any order, and all rights, powers and remedies available to Lender in such event shall be nonexclusive and cumulative of all other rights, powers and remedies provided thereunder or hereunder or by law or in equity, Accordingly, Guarantors hereby authorize and

 

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empower Lender upon the occurrence and during the continuance of any Event of Default under the Note or the other Loan Documents, at its sole discretion, and without notice to Guarantors, to exercise any right or remedy which Lender may have, including, but not limited to, foreclosure, exercise of rights of power of sale, acceptance of a deed or assignment in lieu of foreclosure, appointment of a receiver, exercise of remedies against personal property, or enforcement of any assignment of leases, as to any security, whether real, personal or intangible.  At any public or private sale of any security or collateral for any of the Obligations guaranteed hereby, whether by foreclosure or otherwise, Lender may, in its discretion, purchase all or any part of such security or collateral so sold or offered for sale for its own account and may apply against the amount bid therefor all or any part of the balance due it pursuant to the terms of the Note or any other Loan Document without  prejudice to Lender’s remedies hereunder against Guarantors for deficiencies.  If the Obligations guaranteed hereby are partially paid by reason of the election of Lender to pursue any of the remedies available to Lender, or if such Obligations arc otherwise partially paid, this Guaranty shall nevertheless remain in full force and effect, and Guarantors shall remain liable for the entire balance of the Obligations guaranteed hereby even though any rights which any Guarantor may have against Borrower or any other Person may be destroyed or diminished by the exercise of any such remedy.

 

8.             Application of Payments.  Guarantors hereby authorize Lender, without notice to Guarantors, to apply all payments and credits received from Borrower, any Guarantor or any other Person or realized from any security in such manner and in such priority as set forth in the Credit Agreement.

 

9.             Business Failure, Bankruptcy or Insolvency.  In the event of the business failure of any Guarantor or if there shall be pending any bankruptcy or insolvency case or proceeding with respect to any Guarantor under federal bankruptcy law or any other applicable law or in connection with the insolvency of any Guarantor, or if a liquidator, receiver, or trustee shall have been appointed for any Guarantor or any Guarantor’s properties or assets, Lender may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of Lender allowed in any proceedings relative to such Guarantor, or any of such Guarantor’s properties or assets, and, irrespective of whether the indebtedness or other obligations of Borrower guaranteed hereby shall then be due and payable, by declaration or otherwise, Lender shall be entitled and empowered to file and prove a claim for the whole amount of any sums or sums owing with respect to the indebtedness or other obligations of Borrower guaranteed hereby, and to collect and receive any moneys or other property payable or deliverable on any such claim.  Guarantors covenant and agree that upon the commencement of a voluntary or involuntary bankruptcy proceeding by or against Borrower, Guarantors shall not seek a supplemental stay or otherwise pursuant to 11 U.S.C. §105 or any other provision of the Bankruptcy Code, as amended, or any other debtor relief law (whether statutory, common law, case law, or otherwise) of any jurisdiction whatsoever, now or hereafter in effect, which may be or become applicable, to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any rights of Lender against Guarantors by virtue of this Guaranty or otherwise.

 

10.          Covenants of Guarantors.  Guarantors hereby covenant and agree with Lender that until all indebtedness guaranteed hereby has been completely repaid and all obligations and undertakings of Borrower under, by reason of, or pursuant to the Note and the other Loan Documents have been completely performed and Lender has no further obligation to make Loans

 

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or issue Letters of Credit, Guarantors will comply with any and all covenants applicable to Guarantors set forth in the Credit Agreement and the Contribution Agreement.

 

11.          Rights of Set-off.  Regardless of the adequacy of any collateral, during the continuance of any Event of Default under the Note or the other Loan Documents, Lender may at any time and without notice to Guarantors, but subject to the prior written approval of Agent, setoff and apply the whole or any portion or portions of any or all deposits (general or specific, time or demand, provisional or final, regardless of currency, maturity, or branch of Lender where the deposits are held) now or hereafter held by Lender or other sums credited by or due from any Lender to any Guarantor and any securities or other property of the Guarantors in the possession of such Lender against amounts payable under this Guaranty, whether or not any other person or persons could also withdraw money therefrom.

 

12.          Changes in Writing; No Revocation.  This Guaranty may not be changed orally, and no obligation of any Guarantor can be released or waived by Lender except as provided in Sections 5,4 or 27 of the Credit Agreement.  This Guaranty shall be irrevocable by Guarantors until all indebtedness guaranteed hereby has been completely repaid and all obligations and undertakings of Borrower under, by reason of, or pursuant to the Note, the Letters of Credit and the other Loan Documents have been completely performed and the Lenders have no further obligation to advance Loans or issue Letters of Credit under the Credit Agreement.

 

13.          Notices.  Each notice, demand, election or request provided for or permitted to be given pursuant to this Guaranty (hereinafter in this Section 13 referred to as “Notice”), but specifically excluding to the maximum extent permitted by law any notices of the institution or commencement of foreclosure proceedings, must be in writing and shall be deemed to have been properly given or served by personal delivery or by sending same by overnight courier or by depositing same in the United States Mail, postpaid and registered or certified, return receipt requested, or as expressly permitted herein, by telegraph, telecopy, telefax or telex, and addressed as follows:

 

If to the Agent or KeyBank:

 

KeyBank National Association
 1200 Abernathy Road, Suite 1550
 Atlanta, Georgia 30328
 Attn: James Komperda
 Telecopy No.: (770) 510-2195

 

and

 

KeyBank National Association
 1200 Abernathy Road, N.E., Suite 1550
 Atlanta, Georgia 30328
 Attn: Michael Colbert
 Telecopy No.: (770) 510-2195

 

and

 

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Dentons US LLP
 Suite 5300
 303 Peachtree Street, N.E.,
 Atlanta, Georgia 30308
 Attn: William F. Timmons, Esq.
 Telecopy No.: (404) 527-4198

 

If to the Guarantors:

 

c/o Four Springs Capital Trust
 1901 Main Street
 Lake Como, New Jersey 07719
 Attn: John E. Warch
 Telecopy No.: (732) 876-0289

 

With a copy to:

 

Thomson Walker
 4700 Belleview Avenue, Suite 404
 Kansas City, Missouri 64112
 Attn: Kristin Walker
 Telecopy No.: (816) 875-3301

 

Each Notice shall be effective upon being personally delivered or upon being sent by overnight courier or upon being deposited in the United States Mail as aforesaid, or if transmitted by telegraph, telecopy, telefax or telex is permitted, upon being sent and confirmation of receipt, The time period in which a response to such Notice must be given or any action taken with respect thereto (if any), however, shall commence to run from the date of receipt if personally delivered or sent by overnight courier, or if so deposited in the United States Mail, the earlier of three (3) Business Days following such deposit or the date of receipt as disclosed on the return receipt.  Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given shall be deemed to be receipt of the Notice sent.  By giving at least fifteen (15) days’ prior Notice thereof, Borrower, Guarantors or Lenders shall have the right from time to time and at any time during the term of this Guaranty to change their respective addresses and each shall have the right to specify as its address any other address within the United States of America.

 

14.          Governing Law.  GUARANTORS ACKNOWLEDGE AND AGREE, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, THAT THIS GUARANTY AND THE OBLIGATIONS OF GUARANTORS HEREUNDER SHALL BE GOVERNED BY AND INTERPRETED AND DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

15.          CONSENT TO JURISDICTION; WAIVERS.  EACH GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY (A) SUBMITS TO PERSONAL JURISDICTION IN THE STATE OF NEW YORK OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, AND (B)

 

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WAIVES ANY AND ALL PERSONAL RIGHTS UNDER THE LAWS OF ANY STATE (I) TO THE RIGHT, IF ANY, TO TRIAL BY JURY(LENDER HAVING ALSO WAIVED SUCH RIGHT TO TRIAL BY JURY), (II) TO OBJECT TO JURISDICTION WITHIN THE STATE OF NEW YORK OR VENUE IN ANY PARTICULAR FORUM WITHIN THE STATE OF NEW YORK, AND (III) TO THE RIGHT, IF ANY, TO CLAIM OR RECOVER ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN OR IN ADDITION TO ACTUAL DAMAGES.  EACH LENDER IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS UNDER THE LAWS OF ANY  STATE TO THE RIGHT, IF ANY, TO TRIAL BY JURY.  EACH GUARANTOR HEREBY WAIVES ITS RIGHTS TO PERSONAL SERVICE AND AGREES THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO SUCH GUARANTOR AT THE ADDRESS SET FORTH IN PARAGRAPH 13 ABOVE, AND SERVICE SO MADE SHALL BE COMPLETE FIVE (5) DAYS AFTER THE SAME SHALL BE SO MAILED.  NOTHING CONTAINED HEREIN, HOWEVER, SHALL PREVENT LENDER FROM BRINGING ANY SUIT, ACTION OR PROCEEDING OR EXERCISING ANY RIGHTS AGAINST ANY SECURITY AND AGAINST ANY GUARANTOR PERSONALLY, AND AGAINST ANY PROPERTY OF ANY GUARANTOR, WITHIN ANY OTHER STATE.  INITIATING SUCH SUIT, ACTION OR PROCEEDING OR TAKING SUCH ACTION IN ANY STATE SHALL IN NO EVENT CONSTITUTE A WAIVER OF THE AGREEMENT CONTAINED HEREIN THAT THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE RIGHTS AND OBLIGATIONS OF GUARANTORS AND LENDER HEREUNDER OR OF THE SUBMISSION HEREIN MADE BY GUARANTORS TO PERSONAL JURISDICTION WITHIN THE STATE OF NEW YORK.  EACH GUARANTOR HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.  EACH GUARANTOR CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND ACKNOWLEDGE THAT LENDER HAS BEEN INDUCED TO ENTER INTO THIS GUARANTY AND THE OTHER LOAN DOCUMENTS TO WHICH THEY ARE PARTIES BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED IN THIS PARAGRAPH 15.  EACH GUARANTOR ACKNOWLEDGES THAT THEY HAVE HAD AN OPPORTUNITY TO REVIEW THIS PARAGRAPH 15 WITH THEIR LEGAL COUNSEL AND THAT SUCH GUARANTOR AGREES TO THE FOREGOING AS THEIR FREE, KNOWING AND VOLUNTARY ACT.

 

16.          Successors and Assigns.  The provisions of this Guaranty shall be binding upon Guarantors and their respective heirs, successors, successors in title, legal representatives, and assigns, and shall inure to the benefit of Lender, its successors, successors in title, legal representatives and assigns, and the holders of the Hedge Obligations.  No Guarantor shall assign or transfer any of its rights or obligations under this Guaranty without the prior written consent of Lender.

 

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17.          Assignment by Lender.  This Guaranty is assignable by Lender in whole or in part in conjunction with any assignment of the Note or portions thereof, and any assignment hereof or any transfer or assignment of the Note or portions thereof by Lender shall operate to vest in any such assignee the rights and powers, in whole or in part, as appropriate, herein conferred upon and granted to Lender.

 

18.          Severability.  If any term or provision of this Guaranty shall be determined to be illegal or unenforceable, all other terms and provisions hereof shall nevertheless remain effective and shall be enforced to the fullest extent permitted by law.

 

19.          Disclosure.  Guarantors agree that in addition to disclosures made in accordance with standard banking practices, any Lender may disclose information obtained by such Lender pursuant to this Guaranty to assignees or participants and potential assignees or participants hereunder subject to the terms and provisions of the Credit Agreement.

 

20.          No Unwritten Agreements.  THIS GUARANTY REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

21.          Time of the Essence.  Time is of the essence with respect to each and every covenant, agreement and obligation of Guarantors under this Guaranty.

 

22.          Ratification.  Guarantors do hereby restate, reaffirm and ratify each and every warranty and representation regarding Guarantors or their Subsidiaries set forth in the Credit Agreement as if the same were more fully set forth herein.

 

23.          Joint and Several Liability.  Each of the Guarantors covenants and agrees that each and every covenant and obligation of Guarantors hereunder shall be the joint and several obligations of each of the Guarantors.

 

24.          Fair Consideration.  The Guarantors represent that the Guarantors are engaged in common business enterprises related to those of the Borrower and each Guarantor will derive substantial direct or indirect economic benefit from the effectiveness and existence of the Credit Agreement.

 

25.          Counterparts.  This Guaranty and any amendment hereof may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument.  In proving this Guaranty, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.

 

26.          Condition of Borrower.  Without reliance on any information supplied by the Lender, each Guarantor has independently taken, and will continue to take, whatever steps it deems necessary to evaluate the financial condition and affairs of the Borrower or any collateral, and the Lender shall not have any duty to advise any Guarantor of information at any time known to the Lender regarding such financial condition or affairs or any collateral.

 

12

 

[CONTINUED ON NEXT PAGE]

 

13

 

IN WITNESS WHEREOF, Guarantors have executed this Guaranty under seal as of this day 29th of January, 2016.

 

	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
FOUR SPRINGS CAPITAL TRUST,   a Maryland real estate investment trust
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John E. Warch
    
	
 
    	
 
    	
Name:
    	
John E. Warch
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    	
Four Springs Capital   Trust
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(SEAL)
    

 

[SIGNATURES CONTINUE ON NEXT PAGE]

 

KeyBank/Four Springs

Signature Page to Unconditional Guaranty of Payment and Performance

 

 

	
 
    	
FSC FD MEMPHIS TN, LLC,

FSC AAP BLOOMINGTON IL, LLC,

FSC AARONS AL, LLC,

FSC AARONS NM, LLC,

FSC AARONS SNYDER TX, LLC,

FSC AZ AURORA IL, LLC,

FSC BR LISLE IL, LLC,

FSC CC MENTOR OH, LLC,

FSC DG CHARLOTTE NC, LLC,

FSC DG ELIZABETH CITY NC, LLC,

FSC DG FORT BRADEN FL, LLC,

FSC DG PENSACOLA FL, LLC,

FSC DG SAVANNAH GA, LLC,

FSC DG WINTER HAVEN FL, LLC,

FSC FD KEENE TX, LLC,

FSC FD WICHITA OLIVER KS, LLC,

FSC FMC CARBONDALE IL, LLC,

FSC FMC LUBBOCK TX, LLC,

FSC FMC-FD MEMPHIS TN, LLC,

FSC FX JACKSON MI, LLC,

FSC OCH BURLINGTON NC, LLC,

FSC ORLY AL, LLC,

FSC TSC BROOKS VILLE FL, LLC,

FSC DG EDEN NC, LLC,

FSC DG GA, LLC,

FSC FD TYLER TX, LLC,

FSC AARONS ASC, LLC,

FSC FD GA, LLC,

FSC FD WICHITA LINCOLN KS, LLC,

FSC FX ALAMOSA CO, LLC,

FSC AAP GARNER NC, LLC,

each a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
Four Springs Capital   Trust Operating Partnership, L.P., a Delaware limited partnership, its Sole   Member and Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Four Springs Capital   Trust, a Maryland real estate investment trust, its General Partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ John E. Warch
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
John E. Warch
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Four Springs Capital   Trust
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(SEAL)
    

 

[SIGNATURES CONTINUED ON NEXT PAGE]

 

KeyBank/Four Springs

Signature Page to Unconditional Guaranty of Payment and Performance

 

 

Lender joins in the execution of this Guaranty for the sole and limited purpose of evidencing its agreement to waiver of the right to trial by jury contained in Paragraph 15 hereof and Section 25 of the Credit Agreement.

 

	
 
    	
KEYBANK NATIONAL ASSOCIATION,
   as Agent for the Lenders
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James Komperda
    
	
 
    	
 
    	
Name:
    	
James Komperda
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

KeyBank/Four Springs

Signature Page to Unconditional Guaranty of Payment and PerformanceExhibit 10.17

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), is made as of August 4, 2016, by and among FOUR SPRINGS CAPITAL TRUST OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“Borrower”), FOUR SPRINGS CAPITAL TRUST, a Maryland real estate investment trust (“REIT”), EACH OF THE PARTIES EXECUTING BELOW AS “SUBSIDIARY GUARANTORS” (the “Subsidiary Guarantors”, and together with REIT, the “Guarantors”), KEYBANK NATIONAL ASSOCIATION (“KeyBank”), as Agent for itself and the other Lenders from time to time a party to the Credit Agreement (as hereinafter defined) (KeyBank, in its capacity as Agent, is hereinafter referred to as “Agent”), and each of the undersigned “Lenders” (KeyBank and the other Lenders are hereinafter referred to collectively as the “Lenders”).

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, Borrower, Agent, KeyBank and the other Lenders are party to that certain Credit Agreement, dated as of January 29, 2016 (as the same may be varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated, the “Credit Agreement”);

 

WHEREAS, the Guarantors executed and delivered to Agent and the Lenders that certain Unconditional Guaranty of Payment and Performance, dated as of January 29, 2016 (as the same may be further varied, extended, supplemented, consolidated, replaced, increased, renewed, modified or amended from time to time, the “Guaranty”); and

 

WHEREAS, Borrower and Guarantor have requested that Agent and the Lenders make certain modifications to the Credit Agreement, and Agent and the Lenders have consented to such modifications subject to the execution and delivery of this Amendment.

 

NOW, THEREFORE, for and in consideration of the sum of Ten and No/100 ($10.00), the mutual covenants, promises, and agreements set forth hereinbelow, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, the parties hereto do hereby covenant and agree as follows:

 

1.             Definitions.  Capitalized terms used in this Amendment, but which are not otherwise expressly defined in this Amendment, shall have the respective meanings given thereto in the Credit Agreement.

 

2.             Modifications of the Credit Agreement.  The Borrower, Agent and the Lenders do hereby modify and amend the Credit Agreement as follows:

 

(a)           By adding the following new definitions to §1.1 of the Credit Agreement:

 

“Biolife Property or Biolife Properties.  Individually or collectively, the Real Estate which (i) is, or prior to inclusion as a Borrowing Base Property shall be, owned by FSC BPS Longmont CO, LLC and located at 478 S. Martin Street, Longmont, Colorado 80501, (ii) is, or prior to inclusion as a Borrowing Base Property

 

 

shall be, owned by FSC BPS Riverton UT, LLC and located at 13503 S.  Hamilton View Road, Riverton, Utah 84065, (iii) is, or prior to inclusion as a Borrowing Base Property shall be, owned by FSC BPS Greenwood IN, LLC and located at 1138 N.  Emerson Avenue, Greenwood, Indiana 46143, and (iv) is, or prior to inclusion as a Borrowing Base Property shall be, owned by FSC BPS American Fork UT, LLC and located at 623 N.  900 West Street, American Fork, Utah 84003, and each of which is leased to BioLife Plasma Services, L.P.”;

 

“Biolife Termination Option.  As defined in §7.19(a)(iv).”;

 

“Horizon Property.  The Real Estate which is, or prior to inclusion as a Borrowing Base Property shall be, owned by FSC HBCBS Mt. Laurel NJ, LLC and located at 250 Century Parkway, Mount Laurel, New Jersey 08054, and leased to Horizon Healthcare Services, Inc.”; and

 

“Horizon Termination Option.  As defined in §7.19(a)(iv).”;

 

(b)           By modifying the definition of Debt Service Coverage Amount appearing in §1.1 of the Credit Agreement by deleting the words and figures “twenty-five (25)” each time they appear in said definition and inserting in lieu thereof the words and figures “thirty (30)” in each such instance;

 

(c)           By inserting the following at the end of §7.19(a)(iv):

 

“provided, however, that Agent, the Lenders and Borrower acknowledge and agree that (A) the Lease for each of the Biolife Properties contains an early termination option in favor of the Tenant thereunder which is exercisable by such Tenant with respect to any Biolife Property at any time during the term of such Lease upon providing thirty (30) days’ written notice to the landlord under such Lease and the payment of a certain termination fee as set forth in such Lease (each, a “Biolife Termination Option”), (B) the Lease for the Horizon Property contains an early termination option in favor of the Tenant thereunder to terminate the Lease effective as of December 31, 2026, which is exercisable by such Tenant upon providing written notice to the landlord under such Lease on or before January 1, 2026 and the payment of a certain termination fee as set forth in such Lease (the “Horizon Termination Option”), (C) notwithstanding the existence of the Biolife Termination Options, each Lender hereby consents to inclusion of each Biolife Property as a Borrowing Base Property, provided that (i) such Biolife Property at all times satisfies each of the other conditions for such Real Estate to be included as a Borrowing Base Property (including, without limitation, the

 

2

 

conditions set forth in this §7.19(a)), (ii) within three (3) Business Days of Borrower’s or any Guarantor’s receipt of written notice that the Tenant is exercising, or intends to exercise, a Biolife Termination Option with respect to any Biolife Property, Borrower shall deliver to Agent (x) a copy of each such written notice, (y) a calculation of the Borrowing Base Availability attributable to such Biolife Property, and (z) a statement as to whether any Default or Event of Default would arise as a result of such Biolife Property being removed from the calculation of the Borrowing Base Availability, and (iii) effective as of the date on which the Lease for such Biolife Property terminates pursuant to the Tenant’s exercise of a Biolife Termination Option, such Biolife Property shall immediately cease to qualify to be included in the calculation of the Borrowing Base Availability and the provisions of §7.19(c) shall apply thereto unless and until a new Lease is entered into with respect to such Biolife Property in accordance with §7.13 and such Biolife Property otherwise satisfies all of the conditions for such Real Estate to be included in the calculation of Borrowing Base Availability under this Agreement (including, without limitation, the conditions set forth in this §7.19(a)), and (D) notwithstanding the existence of the Horizon Termination Option, each Lender hereby consents to inclusion of the Horizon Property as a Borrowing Base Property, provided that the Horizon Property at all times satisfies each of the other conditions under this Agreement for such Real Estate to be included as a Borrowing Base Property (including, without limitation, the conditions set forth in this §7.19(a));”;

 

(d)           By deleting the period appearing at the end of §8.1(g) and inserting in lieu thereof the following “; and”, and by inserting the following new §8.1(h) into the Credit Agreement:

 

“(h) subject to compliance with the financial covenants set forth in §9 of this Agreement and the terms, conditions and provisions of this §8.1 (including, without limitation, clause (i) of the last paragraph of this §8.1) and the prior written approval of Agent, not to be unreasonably withheld, Borrower shall be permitted to incur or be or remain liable under, contingently or otherwise, (i) Unsecured Indebtedness, (ii) Recourse Indebtedness secured by Equity Interests or rights to Distributions (so-called “mezzanine financing”) or other property or assets of Borrower or its Subsidiaries, and/or (iii) structurally subordinated Indebtedness, provided that (A) the aggregate amount of such Indebtedness contemplated by this §8.1(h) incurred by the Borrower shall in no event exceed the lesser of (x) ten percent (10%) of Borrower’s Consolidated Total Adjusted Asset Value and (y) $25,000,000.00, and (B) the lender and holder of any Recourse Indebtedness 

 

3

 

incurred by Borrower pursuant to this §8.1(h) shall be a Lender at all times that such Indebtedness  is outstanding.”;

 

(e)           By deleting the last paragraph of §8.1 in its entirety and inserting in lieu thereof the following new paragraph:

 

“Notwithstanding anything in this Agreement to the contrary, (i) none of the Indebtedness described in §8.1(g) or §8.1(h) above shall have any of the Borrowing Base Properties or any interest therein or any direct or indirect ownership interest in the Borrower or any Subsidiary Guarantor, or any rights to Distributions on account of such direct or indirect ownership interest, as collateral, a borrowing base, asset pool or any similar form of credit support for such Indebtedness, (ii) none of the Subsidiary Guarantors which own a Borrowing Base Property shall create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness (including, without limitation, pursuant to any conditional or limited guaranty or indemnity agreement creating liability with respect to usual and customary exclusions from the nonrecourse limitations governing the Non-Recourse Indebtedness of any Person, or otherwise) other than Indebtedness described in §§8.1(a), 8.1(b), 8.1(c), 8.1(d), 8.1(e) and 8.1(f), and (iii) except as expressly provided in §8.1(h), none of the Borrower, the Guarantors or any of their Subsidiaries shall create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Unsecured Indebtedness, any Recourse Indebtedness (other than the Obligations), any Indebtedness (other than the Obligations) secured by Equity Interests or rights to Distributions (so-called “mezzanine financing”), structurally subordinated Indebtedness or second priority Liens, or any revolving credit facilities (other than this Agreement).”;

 

(f)            By deleting in its entirety Schedule 6.21 attached to the Credit Agreement and inserting in lieu thereof the Schedule 6.21 attached to this Amendment and made a part hereof.  The Required Lenders hereby agree that the Horizon Property is approved notwithstanding the existence of the tenant improvement allowance under the Lease as set forth on Schedule 6.21 with respect to the Horizon Property; and

 

(g)           By deleting in its entirety Schedule 6.22 attached to the Credit Agreement and inserting in lieu thereof the Schedule 6.22 attached to this Amendment and made a part hereof.  The Required Lenders hereby agree that the Biolife Property located at 478 S.  Martin Street, Longmont, Colorado 80501 is approved as a Borrowing Base Property notwithstanding the existence of the purchase option set forth on Schedule 6.22 with respect to such Biolife Property.

 

4

 

3.             References to Credit Agreement.  All references in the Loan Documents to the Credit Agreement shall be deemed a reference to the Credit Agreement, as modified and amended herein.

 

4.             Consent of Borrower and Guarantors.  By execution of this Amendment, Borrower and the Guarantors hereby expressly consent to the modifications and amendments relating to the Credit Agreement as set forth herein, and Borrower and Guarantors hereby acknowledge, represent and agree that the Loan Documents, as expressly modified hereby, remain in full force and effect and constitute the valid and legally binding obligations of the Borrower and the Guarantors, respectively, enforceable against such Persons in accordance with their respective terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and general principles of equity, and that the Guaranty extends to and applies to the foregoing documents as modified and amended.

 

5.             Representations.  Borrower and Guarantors represent and warrant to Agent and the Lenders as follows:

 

(a)           Authorization.  The execution, delivery and performance of this Amendment and the other documents executed in connection herewith and the transactions contemplated hereby and thereby (i) are within the authority of Borrower and Guarantors, (ii) have been duly authorized by all necessary proceedings on the part of such Persons, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which any of such Persons is subject or any judgment, order, writ, injunction, license or permit applicable to such Persons, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the partnership agreement or certificate, certificate of formation, operating agreement, articles of incorporation or other charter documents or bylaws of, or any mortgage, indenture, agreement, contract or other instrument binding upon, any of such Persons or any of its properties or to which any of such Persons is subject, and (v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets or rights of such Persons, other than the liens and encumbrances created by the Loan Documents.

 

(b)           Enforceability.  This Amendment is the valid and legally binding obligation of Borrower and Guarantors enforceable in accordance with the respective terms and provisions hereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and the effect of general principles of equity.

 

(c)           Approvals.  The execution, delivery and performance of this Amendment and the other documents executed in connection herewith and the transactions contemplated hereby and thereby do not require the approval or consent of or approval of any Person or the authorization, consent, approval of or any license or permit issued by, or any filing or registration with, or the giving of any notice to, any court, department, board, commission or other governmental agency or authority other than those already obtained.

 

5

 

(d)           Reaffirmation.  Borrower and Guarantors hereby repeat and reaffirm all representations and warranties made by Borrower and Guarantors to the Agent in the Loan Documents on and as of the date hereof with the same force and effect as if such representations and warranties were set forth in this Amendment in full.  Borrower and Guarantors further reaffirm, represent and agree that, as of the date hereof, each and every representation and warranty made by the Borrower, the Guarantors and their respective Subsidiaries in the Loan Documents or otherwise made by or on behalf of such Persons in connection therewith is true and correct in all material respects as of the date hereof, except to the extent of changes in factual circumstances which are expressly and specifically permitted by the Loan Documents (it being understood and agreed that any representation or warranty which by its terms is made by Borrower as of a specified date shall be required to be true and correct only as of such specified date).

 

6.             No Default.  By execution hereof, Borrower and Guarantors certify that Borrower and Guarantors are and will be in compliance with all covenants under the Loan Documents after the execution and delivery of this Amendment, and that no Default or Event of Default has occurred and is continuing.

 

7.             Waiver of Claims.  Borrower and Guarantors acknowledge, represent and agree that Borrower and Guarantors as of the date hereof have no defenses, setoffs, claims, counterclaims or causes of action of any kind or nature whatsoever with respect to the Loan Documents, the administration or funding of the Loans or with respect to any acts or omissions of Agent or any Lender, or any past or present officers, agents or employees of Agent or any Lender, and each of Borrower and Guarantors does hereby expressly waive, release and relinquish any and all such defenses, setoffs, claims, counterclaims and causes of action, if any.

 

8.             Ratification.  Except as hereinabove set forth, all terms, covenants and provisions of the Credit Agreement remain unaltered and in full force and effect, and the Credit Agreement, as amended by this Amendment, constitutes the valid and legally binding obligation of the Borrower and Guarantors enforceable against Borrower and Guarantors in accordance with its respective terms.  The execution and delivery of this Amendment does not constitute, and shall not be deemed to constitute, a release, waiver or satisfaction of any Borrower’s or any Guarantor’s obligations under the Loan Documents, and the parties hereto do hereby expressly ratify and confirm the Credit Agreement as modified and amended herein.  Nothing in this Amendment shall be deemed or construed to constitute, and there has not otherwise occurred, a novation, cancellation, satisfaction, release, extinguishment or substitution of the Obligations.

 

9.             Amendment as Loan Document.  This Amendment shall constitute a Loan Document.

 

10.          Counterparts.  This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart.

 

11.          Governing Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY AND

 

6

 

CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

12.          Final Agreement.  THIS AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

13.          Effective Date.  The effectiveness of this Amendment shall be subject to the satisfaction of the following conditions precedent (the date all such conditions have been satisfied or waived in writing by the Lenders hereinafter referred to as the “Amendment Closing Date”):

 

(a)           Execution of this Amendment.  The Agent shall have received executed originals of counterpart signature pages to this Amendment from Borrower, Guarantors, Agent, and the Required Lenders.

 

(b)           Representations and Warranties.  The representations and warranties contained in §6 of the Credit Agreement shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on the Amendment Closing Date (except to the extent such representations and warranties specifically relate to an earlier date, in which case they shall only be required to have been true and correct in all material respects as of such earlier date and except to the extent of changes resulting from transactions or events permitted by the Loan Documents).

 

14.          Fees.  The Borrower shall have paid all fees and expenses of Agent in connection with this Amendment and the matters addressed herein (including, without limitation, the fees and expenses of Agent’s Special Counsel) in accordance with §15 of the Credit Agreement.

 

[Remainder of this page intentionally left blank]

 

7

 

IN WITNESS WHEREOF, the parties hereto, acting by and through their respective duly authorized officers and/or other representatives, have duly executed this Amendment, under seal, as of the day and year first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
FOUR SPRINGS CAPITAL TRUST   OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
Four Springs Capital   Trust, a Maryland real estate investment trust, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ John E. Warch
    
	
 
    	
 
    	
 
    	
Name:
    	
John E. Warch
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
Four Springs Capital   Trust
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(SEAL)
    
	
 
    	
REIT:
    
	
 
    	
 
    
	
 
    	
FOUR SPRINGS CAPITAL TRUST,   Maryland real estate investment trust, its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ John E. Warch
    
	
 
    	
 
    	
 
    	
Name:
    	
John E. Warch
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
Four Springs Capital   Trust
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(SEAL)
    

 

[Signatures Continued on Next Page]

 

 

	
 
    	
SUBSIDIARY   GUARANTORS:

 

FSC   FD MEMPHIS TN, LLC,

FSC   AAP BLOOMINGTON IL, LLC,

FSC   AARONS AL, LLC,

FSC   AARONS NM, LLC,

FSC   AARONS SNYDER TX, LLC,

FSC   AZ AURORA IL, LLC,

FSC   BR LISLE IL, LLC,

FSC   CC MENTOR OH, LLC,

FSC   DG CHARLOTTE NC, LLC,

FSC   DG ELIZABETH CITY NC, LLC,

FSC   DG FORT BRADEN FL, LLC,

FSC   DG PENSACOLA FL, LLC,

FSC   DG SAVANNAH GA, LLC,

FSC   DG WINTER HAVEN FL, LLC,

FSC   FD KEENE TX, LLC,

FSC   FD WICHITA OLIVER KS, LLC,

FSC   FMC-FD MEMPHIS TN, LLC,

FSC   FX JACKSON MI, LLC,

FSC   OCH BURLINGTON NC, LLC,

FSC   ORLY AL, LLC,

FSC   TSC BROOKSVILLE FL, LLC,

FSC   DG EDEN NC, LLC,

FSC   DG GA, LLC,

FSC   FD TYLER TX, LLC,

FSC   AARONS ASC, LLC,

FSC   FD GA, LLC,

FSC   FD WICHITA LINCOLN KS, LLC,

FSC   FX ALAMOSA CO, LLC,

FSC   AAP GARNER NC, LLC,

FSC HBCBS MT. LAUREL NJ, LLC, each a Delaware   limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
Four Springs Capital   Trust Operating Partnership, L.P., a Delaware limited partnership, its Sole   Member and Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Four Springs Capital   Trust, a Maryland real estate investment trust, its General Partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ John E. Warch
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
John E. Warch
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Chief Financial Officer   

Four Springs Capital   Trust
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(SEAL)
    

 

[Signatures Continued on Next Page]

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

	
 
    	
AGENT AND LENDERS:
    
	
 
    	
 
    
	
 
    	
KEYBANK NATIONAL ASSOCIATION,   a national banking association, individually and as Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel L. Silbert
    
	
 
    	
 
    	
Name:
    	
Daniel L. Silbert
    
	
 
    	
 
    	
Title:
    	
Sr. Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(SEAL)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PEAPACK-GLADSTONE BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Frank H. D’Alto
    
	
 
    	
 
    	
Name:
    	
Frank H. D’Alto
    
	
 
    	
 
    	
Title:
    	
Senior Managing   Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(SEAL)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TWO RIVER COMMUNITY BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Alan B. Turner
    
	
 
    	
 
    	
Name:
    	
Alan B. Turner
    
	
 
    	
 
    	
Title:
    	
Executive Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(SEAL)
    

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

SCHEDULE 6.21

 

LEASES

 

1.             Horizon (250 Century Parkway, Mount Laurel, New Jersey 08054) — The Landlord has agreed to contribute up to $1,967,850.00 towards the cost of certain alterations and improvements to be performed by the Tenant in the demised premises under the Lease for such Real Estate (the “Improvement Allowance”).  The Improvement Allowance may only be used for hard costs in connection with such alterations and improvements, and not for the purchase of equipment, furniture or other items of personal property (other than a supplemental electricity generator which has been approved under the Lease).  Any amount of the Improvement Allowance which is unused by Tenant after June 30, 2017 shall belong to the Landlord, and the Tenant shall not be entitled to any further credit or abatement in connection therewith.

 

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SCHEDULE 6.22

 

PROPERTY

 

1.             Biolife (478 S. Martin Street, Longmont, Colorado 80501, Longmont, Colorado) — That certain repurchase option held by Ramco Harvest Junction, LLC, a Delaware limited liability company, its nominee or assignee, as more specifically set forth in that certain Special Warranty Deed, dated as of December 5, 2014, by Ramco Harvest Junction, LLC, a Delaware limited liability company (“Grantor”), and GRD Longmont, LLC, an Iowa limited liability company (“Grantee”), recorded in the real property records of Butler County, Colorado on December 9, 2014 at Reception No. 03417041, a copy of which Special Warranty Deed is attached hereto.

 

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