Document:

enva-ex102_8.htm

Exhibit 10.2

 

 

NOTE PURCHASE AGREEMENT+

Dated as of January 15, 2016

 

by and among:

 

ENOVA LENDING SERVICES, LLC,

as the Master Servicer,

 

EFR 2016-1, LLC,

as the Issuer,

 

and

 

JEFFERIES FUNDING LLC,

as the Administrative Agent, as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder

 

WF 18, LLC,

as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder

Fortress credit co llc,

as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder

 

and

 

the other Variable Funding Note Noteholders from time to time party hereto

 

 

 

 

+Confidential Treatment Requested.  Confidential portions of this document have been redacted and have been separately filed with the Securities and Exchange Commission.

 

***Indicates confidential material redacted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the redacted material.

Table of Contents

 

 

	
 
	
 
	
Page

	
ARTICLE I DEFINITIONS
	
 
	
1

	
 
	
 
	
Section 1.01
	
 
	
Definitions
	
 
	
1

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ARTICLE II PURCHASE AND SALE; PURCHASE COMMITMENT
	
 
	
1

	
 
	
 
	
Section 2.01
	
 
	
Purchase and Sale of the Variable Funding Note
	
 
	
1

	
 
	
 
	
Section 2.02
	
 
	
Variable Funding Note Purchase Price
	
 
	
1

	
 
	
 
	
Section 2.03
	
 
	
Increases in the Variable Funding Note Stated Principal Amount
	
 
	
1

	
 
	
 
	
Section 2.04
	
 
	
Requested Advances
	
 
	
2

	
 
	
 
	
Section 2.05
	
 
	
Payment of Variable Funding Note Payment Amount
	
 
	
3

	
 
	
 
	
Section 2.06
	
 
	
Increased Costs Amounts
	
 
	
3

	
 
	
 
	
Section 2.07
	
 
	
Taxes
	
 
	
3

	
 
	
 
	
Section 2.08
	
 
	
Unused Fee
	
 
	
5

	
 
	
 
	
Section 2.09
	
 
	
Term Note Conversion.
	
 
	
6

	
 
	
 
	
Section 2.10
	
 
	
Purchase and Sale of the Initial Term Note
	
 
	
6

	
 
	
 
	
Section 2.11
	
 
	
Defaulting Variable Funding Note Noteholders
	
 
	
7

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ARTICLE III CLOSING
	
 
	
8

	
 
	
 
	
Section 3.01
	
 
	
Closing
	
 
	
8

	
 
	
 
	
Section 3.02
	
 
	
Transactions to be Effected at the Closing
	
 
	
8

	
 
	
 
	
Section 3.03
	
 
	
Conditions Precedent
	
 
	
8

	
 
	
 
	
Section 3.04
	
 
	
Conditions Subsequent
	
 
	
11

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ARTICLE IV REPRESENTATIONS, WARRANTIES AND COVENANTS OF
   THE ISSUER
	
 
	
11

	
 
	
 
	
Section 4.01
	
 
	
Organization
	
 
	
12

	
 
	
 
	
Section 4.02
	
 
	
Authority
	
 
	
12

	
 
	
 
	
Section 4.03
	
 
	
The Notes
	
 
	
12

	
 
	
 
	
Section 4.04
	
 
	
Litigation
	
 
	
13

	
 
	
 
	
Section 4.05
	
 
	
Access to Information
	
 
	
13

	
 
	
 
	
Section 4.06
	
 
	
Taxes, Etc.
	
 
	
13

	
 
	
 
	
Section 4.07
	
 
	
Disclosure
	
 
	
13

	
 
	
 
	
Section 4.08
	
 
	
Investment Company Act, Etc.
	
 
	
14

	
 
	
 
	
Section 4.09
	
 
	
Commodity Pool
	
 
	
14

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ARTICLE V REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
   MASTER SERVICER
	
 
	
14

	
 
	
 
	
Section 5.01
	
 
	
Organization
	
 
	
14

	
 
	
 
	
Section 5.02
	
 
	
Authority
	
 
	
14

	
 
	
 
	
Section 5.03
	
 
	
Litigation
	
 
	
15

	
 
	
 
	
Section 5.04
	
 
	
Access to Information
	
 
	
15

	
 
	
 
	
Section 5.05
	
 
	
Taxes, Etc.
	
 
	
16

	
 
	
 
	
Section 5.06
	
 
	
Disclosure
	
 
	
16

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF EACH
   NOTEHOLDER
	
 
	
16

	
 
	
 
	
Section 6.01
	
 
	
Organization
	
 
	
16

			
	
 
	
-i-
	
 

 

Table of Contents

(continued)

 

	
 
	
 
	
Page

	
 
	
 
	
Section 6.02
	
 
	
Authority
	
 
	
16

	
 
	
 
	
Section 6.03
	
 
	
Securities Act
	
 
	
17

	
 
	
 
	
Section 6.04
	
 
	
No Reliance
	
 
	
17

	
 
	
 
	
Section 6.05
	
 
	
IAI or QIB
	
 
	
17

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ARTICLE VII INDEMNIFICATION
	
 
	
17

	
 
	
 
	
Section 7.01
	
 
	
Indemnification by the Issuer and the Master Servicer
	
 
	
17

	
 
	
 
	
Section 7.02
	
 
	
Costs and Expenses
	
 
	
18

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ARTICLE VIII MISCELLANEOUS
	
 
	
19

	
 
	
 
	
Section 8.01
	
 
	
Notices, Etc.
	
 
	
19

	
 
	
 
	
Section 8.02
	
 
	
No Waiver; Remedies
	
 
	
19

	
 
	
 
	
Section 8.03
	
 
	
Binding Effect; Assignability
	
 
	
19

	
 
	
 
	
Section 8.04
	
 
	
[RESERVED].
	
 
	
20

	
 
	
 
	
Section 8.05
	
 
	
Governing Law.
	
 
	
20

	
 
	
 
	
Section 8.06
	
 
	
No Proceedings
	
 
	
21

	
 
	
 
	
Section 8.07
	
 
	
Execution in Counterparts
	
 
	
21

	
 
	
 
	
Section 8.08
	
 
	
No Recourse
	
 
	
21

	
 
	
 
	
Section 8.09
	
 
	
[RESERVED].
	
 
	
22

	
 
	
 
	
Section 8.10
	
 
	
Administrative Agent’s Reliance
	
 
	
22

	
 
	
 
	
Section 8.11
	
 
	
Joinder of Variable Funding Note Noteholders
	
 
	
23

 

 

EXHIBITS

		
	
EXHIBIT A
	
FORM OF FUNDING REQUEST

	
EXHIBIT B
	
FORM OF JOINDER AGREEMENT

 

 

 

			
	
 
	
-ii-
	
 

 

 

NOTE PURCHASE AGREEMENT, dated as of January 15, 2016 (this “Agreement”), by and among Enova Lending Services, LLC, as master servicer (the “Master Servicer”), EFR 2016-1, LLC, as issuer (the “Issuer”), Jefferies Funding LLC (“Jefferies”), as administrative agent (in such capacity, the “Administrative Agent”), as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder, WF 18, LLC (“Waterfall”), as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder, Fortress Credit Co LLC (“Fortress”), as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder (such Initial Term Note Noteholders and Variable Funding Note Noteholders, collectively, the “Initial Noteholders”), and any other party that becomes a Variable Funding Note Noteholder and party hereto after the date hereof.

In consideration of the representations, warranties and agreements herein contained, the parties hereto hereby agree as follows:

Article I
DEFINITIONS

Section 1.01Definitions

.  Whenever used in this Agreement and unless the context requires a different meaning, capitalized terms used herein and not otherwise expressly defined herein shall have the meanings assigned to such terms in Part I of Appendix A to the Indenture, dated as of the date hereof, between the Issuer and Bankers Trust, as the indenture trustee (the “Indenture Trustee”) and the securities intermediary (the “Securities Intermediary”), which is incorporated by reference herein and made a part hereof.  The rules of construction set forth in Part II of such Appendix A shall be applicable to this Agreement.

Article II
PURCHASE AND SALE; PURCHASE COMMITMENT

Section 2.01Purchase and Sale of the Variable Funding Note

.  On the terms, and in reliance on the covenants, representations, warranties and agreements herein set forth, the Issuer agrees to sell, transfer and deliver to each of the initial Variable Funding Note Noteholders, and each of the initial Variable Funding Note Noteholders agree to purchase from the Issuer, at the Closing, a Variable Funding Note to be issued on the Closing Date (the “Variable Funding Notes”), each with an Outstanding Principal Amount initially of $0, but up to an aggregate amount for all such Variable Funding Notes not to exceed the Variable Funding Note Maximum Principal Amount.

Section 2.02Variable Funding Note Purchase Price

.  Each Variable Funding Note is to be purchased at an initial purchase price (the “Variable Funding Note Purchase Price”) equal to $0, representing 100% of the aggregate initial Outstanding Principal Amount.

Section 2.03Increases in the Variable Funding Note Stated Principal Amount

.  Subject to the terms and conditions of Section 4.11 of the Indenture, each Variable Funding Note Noteholder shall from the Closing Date to the Funding Period Termination Date fund its share of each Requested Advance sought by the Issuer in accordance with the procedures described in Section 2.04; provided, however, that at no time shall the Variable Funding Note Stated Principal 

1

 

 

Amount for the Outstanding Variable Funding Notes exceed such Variable Funding Note Noteholders’ aggregate Funding Commitments.

Section 2.04Requested Advances

.  

(a)During the Revolving Period and subject to the terms and conditions hereof and in the Indenture, the Issuer may request, from time to time, but no more than *** per calendar week (unless otherwise agreed to by the Administrative Agent and the Variable Funding Note Noteholders and subject to an Additional Advance Fee for each additional Requested Advance beyond the first two, such fee to be allocated between the Variable Funding Note Noteholders in accordance with their respective Ratable Portions), that the Variable Funding Note Noteholders advance to the Issuer an amount in the aggregate (a “Requested Advance”) that is a multiple of $100,000 and that is not less than $1,000,000.  After giving effect to the Requested Advance, (i) the aggregate Outstanding Principal Amount of the Notes shall not exceed the Maximum Principal Amount, (ii) the Outstanding Principal Amount of the Variable Funding Notes shall not exceed the Variable Funding Note Borrowing Base and (iii) the Outstanding Principal Amount of the Variable Funding Notes shall not exceed the Maximum Advance Amount.  

(b)Whenever the Issuer requests that the Variable Funding Note Noteholders make a Requested Advance, the Issuer shall deliver, or shall cause to be delivered on its behalf, to the Administrative Agent, as the designated representative of all Variable Funding Note Noteholders, an executed Funding Request, substantially in the form of Exhibit A hereto, no later than 12:00 p.m., New York City time, two Business Days prior to the proposed Advance Date, and shall satisfy the terms and conditions set forth herein, in the Funding Request and in the Indenture.  Notwithstanding anything to the contrary contained herein, if any Requested Advance is not made by reason of an Advance Condition, or a condition in the Funding Request or the Indenture not being satisfied on the date specified by the Issuer in its Funding Request, the Issuer shall indemnify each Variable Funding Note Noteholder against any loss, cost or expense incurred by such Variable Funding Note Noteholder as a result of such occurrence, including any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Variable Funding Note Noteholder to fund such anticipated Advance, but excluding any loss attributable to lost profits or consequential damages.

(c)[Reserved.]

(d)Each Variable Funding Note Noteholder shall fund the percentage of the Requested Advance (its “Ratable Portion”) determined by dividing (i) the amount of such Variable Funding Note Noteholder’s Funding Commitment by (ii) the aggregate Funding Commitments of all Variable Funding Note Noteholders.  Subject to satisfaction of the Advance Conditions, each Variable Funding Note Noteholder shall deliver immediately available funds in an amount (an “Advance”) equal to its Ratable Portion of the Requested Advance to an account specified by the Issuer no later than 3:00 p.m., New York City time, on the applicable Advance Date.

(e)The Revolving Period shall expire on the Funding Period Termination Date and no new Advances shall be funded after such date.

2

 

(f)No portion of any Advance shall be funded with “plan assets” of any Benefit Plan. 

(g)During the Revolving Period, the Eligible Receivables purchased by the Issuer with the proceeds of an Advance made pursuant to this Section 2.04 shall be allocated to the Variable Funding Note Investment Pool for the related Collection Period.  In connection with the issuance of Term Notes on the Conversion Date for such Collection Period, as contemplated by Section 2.09 of this Agreement and Sections 4.11 and 4.12 of the Indenture, such Eligible Receivables shall be allocated to a Term Note A Investment Pool or a Term Note B Investment Pool and shall cease to be allocated to the Variable Funding Note Investment Pool.   

Section 2.05Payment of Variable Funding Note Payment Amount

.  On each Payment Date each Variable Funding Note Noteholder shall receive, pursuant to Section 5.04 of the Indenture, an amount equal to Ownership Share of the Variable Funding Note Payment Amount.

Section 2.06Increased Costs Amounts

.  If due to the introduction of or any change in or in the Interpretation of any law or regulation or the imposition of any guideline or request from any central bank or other Governmental Authority, in each case after the date hereof, there shall be an increase in the cost to any Variable Funding Note Noteholder of making, funding or maintaining any investment in a Variable Funding Note or any interest therein, as the case may be (other than by reason of any Interpretation of or change in laws or regulations relating to Excluded Taxes), such Variable Funding Note Noteholder shall promptly submit to the Issuer and the Master Servicer, a certificate prepared in good faith setting forth in reasonable detail, the calculation of such increased costs incurred by such Variable Funding Note Noteholder.  In determining such amount, such Variable Funding Note Noteholder may use any reasonable averaging and attribution methods, consistent with the averaging and attribution methods generally used by such Variable Funding Note Noteholder in determining amounts of this type.  The amount of increased costs set forth in such certificate (which certificate shall, in the absence of manifest error, be prima facie evidence as to such amount) shall be included in the Increased Costs Amount to be paid on the Payment Date with respect to (a) the first full Interest Period immediately succeeding the date on which the certificate specifying the amount owing was delivered and (b) to the extent remaining outstanding, each Interest Period thereafter until paid in full.  Failure on the part of any Variable Funding Note Noteholder to demand compensation for any amount pursuant to this Section 2.06 for any period shall not constitute a waiver of such Variable Funding Note Noteholder’s right to demand compensation for such period; provided that the Issuer shall not be required to compensate a Variable Funding Note Noteholder pursuant hereto for any reductions in return on capital or assets incurred during any fiscal quarter ended more than one hundred eighty (180) days prior to the date that such Variable Funding Note Noteholder makes its request for additional amounts pursuant to this Section 2.06.

Section 2.07Taxes

.

(a)Any and all payments and deposits required to be made hereunder or under the Indenture, any Note or any other Transaction Document by or on behalf of the Issuer or the Indenture Trustee to or for the benefit of any Noteholder (each, a “Recipient”) shall be made free and clear of and without deduction for any Taxes, unless required by applicable law.  In the case of any Recipient, (a) Taxes imposed on, or measured by net income (however 

3

 

denominated) of each Noteholder, franchise taxes, or branch profit Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office in the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Transaction Document, or sold or assigned an interest in any Note or any other Transaction Document), (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of a Noteholder with respect to an applicable interest in a Note or any other Transaction Document pursuant to a law in effect on the date on which such Noteholder acquires such interest in the Note or other Transaction Document, except to the extent that, pursuant to this Section 2.07, amounts with respect to such Taxes were payable to such Noteholder’s assignor immediately before such Noteholder became a party hereto, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.07(f), and (d) any U.S. federal withholding Taxes imposed under FATCA, shall be referred to herein as “Excluded Taxes.”  If the Issuer, the Indenture Trustee or an applicable withholding agent shall be required by law (as determined in the good faith discretion of such Person) to deduct any Taxes from or in respect of any sum required to be paid or deposited hereunder, under the Indenture or under any other Transaction Document to or for the benefit of any Noteholder, then, (i) the Issuer, the Indenture Trustee or any other applicable withholding agent (as appropriate) shall make such deductions, (ii) the Issuer, the Indenture Trustee, the Paying Agent or any other applicable withholding agent (as appropriate) shall timely pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law, and (iii) unless such Tax is an Excluded Tax, the sum payable by the Issuer or the Indenture Trustee (as applicable) shall be increased with funds provided by the Issuer as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.07) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. 

(b)The Issuer shall promptly reimburse and indemnify each Recipient for the full amount of Taxes (other than Excluded Taxes) and Other Taxes (including any Taxes (other than Excluded Taxes) or Other Taxes imposed on amounts payable under this Section 2.07) paid by the Recipient and any reasonable expenses, penalties and interest arising therefrom or with respect thereto.  Each Noteholder agrees to promptly notify the Issuer and the Master Servicer, of any payment of such Taxes (other than Excluded Taxes) or Other Taxes made by it and, if practicable, any request, demand or notice received in respect thereof prior to such payment.  A certificate as to the amount of such payment or liability pursuant to this Section 2.07(b) submitted to the Issuer by such Recipient setting forth in reasonable detail the basis for and the calculation thereof shall be conclusive absent manifest error.

(c)The Issuer shall timely pay to the relevant Governmental Authority in accordance with applicable law any Other Taxes.

(d)Within thirty (30) days after the date of any payment of Taxes, Excluded Taxes or Other Taxes, the Issuer will furnish to the applicable Recipient the original or a certified receipt evidencing payment thereof.

4

 

(e)Any amounts payable to any Noteholder pursuant to this Section 2.07 shall be included in the Increased Costs Amount for amounts payable pursuant to Section 2.07(b), the first full Interest Period immediately succeeding the date on which the certificate specifying the amount owing was delivered and to the extent remaining outstanding, each Interest Period thereafter until paid in full. 

(f)Any Noteholder shall deliver to the Issuer on or prior to the date on which such Noteholder becomes a Noteholder under this Agreement (and from time to time thereafter upon the reasonable request of the Issuer), executed copies of IRS Form W-9 if such Noteholder is a U.S. Person (as defined in Section 7701(a)(30) of the Code) or, if such Noteholder is not a U.S. Person (as defined in Section 7701(a)(30) of the Code), the applicable IRS Form W-8 or other applicable tax compliance certificate.

(g)If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.07 (including by the payment of additional amounts pursuant to this Section 2.07), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.07 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this Section 2.07(g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this Section 2.07(g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this Section 2.07(g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

(h)Without prejudice to the survival of any other agreement of the Issuer hereunder, the agreements and obligations of the parties contained in this Section 2.07 shall survive the termination of this Agreement.

Section 2.08Unused Fee

.  On each Payment Date from the Initial Payment Date until the Funding Period Termination Date, the Issuer shall pay to the Variable Funding Note Noteholders a fee (the “Unused Fee”) equal to the product of: (a) the excess of (i) the lesser of (A) an amount equal to the Maximum Principal Amount, minus the sum of (x) the aggregate Outstanding Principal Amount of all Outstanding Term Notes and (y) the daily average of the Variable Funding Note Stated Principal Amount during the applicable Collection Period, and (B) $20,000,000, over (ii) the daily average of the Variable Funding Note Stated Principal Amount during the applicable Collection Period; (b) a per annum rate of ***%; and (c) a fraction, the numerator of which is the actual number of days (based on a 30-day calendar month) in the 

5

 

related Collection Period and the denominator of which is 360, payable in arrears on each Payment Date.    

Section 2.09Term Note Conversion.

(a)The Advances made during each Collection Period shall be repaid in kind on the related Conversion Date pursuant to this Section 2.09 and Sections 4.11 and 4.12 of the Indenture, as provided herein and therein, enabling additional Advances to be made following such Conversion Date during the Revolving Period.  

(b)On each Conversion Date, the Issuer shall execute and deliver an authenticated Term Note A and an authenticated Term Note B, in accordance with Section 4.12 of the Indenture in the respective Initial Principal Amounts determined as provided in Section 4.11(g) of the Indenture.  Each such Term Note shall be delivered in the form of a Global Note attached as Exhibit B to the Indenture.  Each Variable Funding Note Noteholder shall be an initial Note Owner of each such Term Note, and each Variable Funding Note Noteholder’s beneficial ownership share (its “Ownership Share”) of each such Term Note shall be equal to a fraction (1) the numerator of which is the Outstanding Principal Amount of its Variable Funding Note and (2) the denominator of which is the Outstanding Principal Amount of all Variable Funding Notes, in each case as of the end of the related Collection Period.  

(c)Upon the issuance of the Term Notes pursuant to Section 4.12 of the Indenture, the Outstanding Principal Amount of each Variable Funding Note shall be reduced by its Ownership Share of the aggregate Initial Principal Amount of the Term Notes delivered pursuant to Section 2.09(a). 

(d)With respect to each Term Note other than the Initial Term Note, prior to each Conversion Date the Administrative Agent shall obtain a CUSIP number for the Term Note to be issued and shall promptly provide such number to the Indenture Trustee and the Issuer.

(e)On each Conversion Date, the Receivables allocated to the Variable Funding Note Investment Pool shall be reallocated as follows: (i) all such Receivables constituting Term Note A Collateral shall be allocated to a Term Note A Investment Pool to be associated with the Term Note A that is issued on such Conversion Date; and (ii) all such Receivables constituting Term Note B Collateral shall be allocated to a Term Note B Investment Pool to be associated with the Term Note B that is issued on such Conversion Date.

Section 2.10Purchase and Sale of the Initial Term Note.  

(a)On the terms, and in reliance on the covenants, representations, warranties and agreements herein set forth, the Issuer agrees to sell, transfer and deliver to the Indenture Trustee, and the Initial Term Note Noteholders agree to purchase from the Issuer, at the Closing, the Initial Term Note in the Initial Principal Amount of $107,361,000.

(b)The Initial Principal Amount of the Initial Term Note will not exceed the product of (x) the Outstanding Receivable Principal Balance of the Initial Term Note Investment Pool and (y) the Initial Term Note Advance Rate.

6

 

(c)The purchase price that each Initial Term Note Noteholder shall pay for its beneficial interest in the Initial Term Note (its “Initial Term Note Purchase Price”) shall be the amount set forth beneath the signature of such Initial Term Note Noteholder on this Agreement. Each Initial Term Note Noteholder shall wire its allocable share of the Initial Term Note Purchase Price on the Closing Date to the Indenture Trustee per the following wiring instructions: 

Bankers Trust

Des Moines, IA

ABA#: 073000642

Acct#: 801119

Reference: FBO Enova Intl

 

The Indenture Trustee will confirm receipt of the entire Initial Term Note Purchase Price prior to Closing and as a condition precedent to any proceeds being released to an Enova Entity. 

 

(d)With respect to the Initial Term Note, prior to the Closing Date, the Administrative Agent shall obtain a CUSIP number for the Initial Term Note and shall promptly provide such number to the Indenture Trustee and the Issuer.

(e)The Initial Term Note Investment Pool shall be composed of the Eligible Receivables described on a schedule delivered to the Administrative Agent no later than the Business Day preceding the Closing Date.     

Section 2.11Defaulting Variable Funding Note Noteholders

.

(a)Notwithstanding anything to the contrary contained in this Agreement, if any Variable Funding Note Noteholder becomes a Defaulting Variable Funding Note Noteholder, then, until such time as such Variable Funding Note Noteholder is no longer a Defaulting Variable Funding Note Noteholder, to the extent permitted by applicable law, the following provisions shall apply:

(i)such Defaulting Variable Funding Note Noteholder shall not be entitled to receive any Unused Fee or Additional Advance Fee accrued in any period during which such Noteholder is a Defaulting Variable Funding Note Noteholder;

(ii)for purposes of determining the Majority Holders, the Funding Commitment of such Defaulting Variable Funding Note Noteholder shall be disregarded (and subtracted from the Outstanding Principal Amount of all Outstanding Notes) until such time as the relevant Variable Funding Note Noteholder no longer constitutes a Defaulting Variable Funding Note Noteholder; and

(iii)such Defaulting Variable Funding Note Noteholder shall have no right to approve or disapprove any amendment, waiver or consent under this 

7

 

Agreement (and any amendment, waiver or consent which by its terms requires the consent of all Noteholders or each affected Noteholder may be effected with the consent of the applicable Variable Funding Note Noteholders other than Defaulting Variable Funding Note Noteholders), except that (x) the Funding Commitment of any Defaulting Variable Funding Note Noteholder may not be increased or extended without the consent of such Variable Funding Note Noteholder and (y) any waiver, amendment or modification requiring the consent of all Noteholders or each affected Noteholder that by its terms affects any Defaulting Variable Funding Note Noteholder more adversely than other affected Noteholders shall require the consent of such Defaulting Variable Funding Note Noteholder. 

(b)If such Defaulting Variable Funding Note Noteholder purchases at par its pro rata portion of the outstanding Advances of the other Variable Funding Note Noteholders (plus any related losses, costs or expenses subject to indemnification contemplated by Section 2.04(b) and incurred by the selling Variable Funding Note Noteholders), then such Variable Funding Note Noteholder will cease to be a Defaulting Variable Funding Note Noteholder; provided, that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Issuer while such Variable Funding Note Noteholder was a Defaulting Variable Funding Note Noteholder; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Variable Funding Note Noteholder to Variable Funding Note Noteholder will constitute a waiver or release of any claim of any party hereunder arising from such Variable Funding Note Noteholder having been a Defaulting Variable Funding Note Noteholder.

Article III
CLOSING

Section 3.01Closing

.  The closing of the purchase and sale of the Initial Term Note and the Variable Funding Notes shall take place at the offices of Orrick, Herrington & Sutcliffe, 1152 15th Street, NW, Washington, DC 20005, on the Closing Date (the “Closing”).

Section 3.02Transactions to be Effected at the Closing

.  At the Closing, (a) each Initial Term Note Noteholder will deliver to the Issuer, by wire transfer of immediately available funds, to a bank account that has been designated by the Issuer at least two (2) Business Days prior to the Closing Date, an amount equal to its respective Initial Term Note Purchase Price, (b) each initial Variable Funding Note Noteholder will deliver to the Issuer, by wire transfer of immediately available funds to a bank account designated by the Issuer at least two (2) Business Days prior to the Closing Date, an amount equal to its respective Variable Funding Note Purchase Price and (c) the Issuer shall (i) deliver to the Indenture Trustee, the Initial Term Note and (ii) to each initial Variable Funding Note Noteholder, its respective Variable Funding Note, as purchased hereunder.

Section 3.03Conditions Precedent

. The effectiveness of this Agreement is subject to the satisfaction at the time of the Closing of each of the following conditions precedent:

8

 

(a)Good Standing.  Prior to the Closing Date, the Initial Noteholders shall have received good standing certificates for the Issuer, the Transferor and the Seller issued as of a recent date acceptable to the Initial Noteholders by the Secretary of State of the jurisdiction of such Person’s incorporation or organization. 

(b)Execution and Delivery.  The Issuer, the Indenture Trustee, the Seller, the Transferor, the Backup Servicer and the other parties to the Transaction Documents shall have executed and delivered the Transaction Documents to which they are parties in the same form and substance as previously presented to and approved by the Initial Noteholders.

(c)Performance by the Seller, the Transferor and the Issuer.  The Initial Noteholders shall have received on the Closing Date from each of the Seller, the Transferor and the Issuer, a certificate, dated the Closing Date and signed by executive officers of the Seller, the Transferor and the Issuer, to the effect that (i) each of the representations and warranties of the Seller, the Transferor and the Issuer contained in Article IV and Article V of this Agreement, Article XI of the Indenture and the other Transaction Documents are true and correct as of the Closing Date, (ii) each of the Seller, the Transferor and the Issuer has complied with all the agreements and satisfied all the conditions on their part to be performed or satisfied in this Agreement, the Indenture and the other Transaction Documents, as applicable, on or prior to the Closing Date, and (iii) there has not occurred any change or any development that is likely to result in a change in the condition, financial or otherwise, or in the earnings, business, operations or prospects of any of the Seller, the Transferor or the Issuer that has had or could reasonably be expected to have a Material Adverse Effect.

(d)Opinions of Counsel.  The Initial Noteholders shall have received favorable opinions (addressed to the Initial Noteholders) from counsel to the Seller, the Transferor, the Issuer and the Indenture Trustee, as applicable, dated as of the Closing Date and reasonably satisfactory in form and substance to each Initial Noteholder and their counsel, as to such matters as each Initial Noteholder and their counsel may reasonably request.  Such legal opinions, shall include opinions: (i) from Kirkland & Ellis LLP as to (A) the security interest in the Receivables, (B) corporate and enforceability matters; (C) true sale and non-consolidation of the Transferor with the Seller, the Originators or the Master Servicer; (D) certain tax matters and (E) the Issuer not being a “covered fund” under the Volcker Rule (17 C.F.R. 75.10(b)) (the “Volcker Rule”), (ii) from Nyemaster Goode, P.C. as to certain matters pertaining to the Indenture Trustee, and (iii) Richards, Layton & Finger, P.A. as to certain matters pertaining to (A) limited liability companies and (B) the Issuer’s and Transferor’s authority to file a petition in bankruptcy.

(e)Additional Information.  Prior to the Closing Date, the Issuer, the Transferor and the Seller shall have furnished to the Initial Noteholders such further information, certificates and documents as the Initial Noteholders may reasonably request.

(f)Corporate Documents.  Prior to the Closing Date, the Initial Noteholders shall have received certified copies of resolutions of the Board of Directors of the Seller, the Transferor and the Issuer authorizing or ratifying the execution, delivery and performance, respectively, of the Transaction Documents to which it is a party, together with a certified copy 

9

 

of its articles or certificate of incorporation or certificate of formation, as applicable, and a copy of its limited liability company agreement or by-laws, as applicable. 

(g)Approvals.  Prior to the Closing Date, the Initial Noteholders shall have received certified copies of all documents evidencing any necessary corporate action, consents, licenses and governmental approvals with respect to the Transaction Documents.

(h)Incumbency.  Prior to the Closing Date, the Initial Noteholders shall have received a certificate of the secretary or an assistant secretary of each of the Transferor, the Seller and the Issuer certifying the names of its officer or officers authorized to sign the Transaction Documents to which it is a party.

(i)Search Reports.  Prior to the Closing Date, the Initial Noteholders shall have received a written search report by a search service acceptable to the Initial Noteholders listing all effective financing statements that name the Seller, the Transferor or the Issuer as a debtor or assignor and that are filed in the jurisdictions in which filings were or are to be made pursuant to Section 4.1(i) above and in such other jurisdictions that the Initial Noteholders shall reasonably request, together with copies of such financing statements (none of which shall cover any of the Receivables or the Issuer Estate unless otherwise released as described in Section 4.1(i)(iv)).

(j)Actions or Proceedings.  No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any Governmental Authority that would, as of the Closing Date, prevent the issuance or sale of the Notes; and no injunction or order of any Federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Notes. 

(k)Pending Actions or Proceedings.  No material claim or litigation by any Governmental Authority shall be pending, as of the Closing Date, which would be reasonably expected to result in a Material Adverse Effect to the Initial Noteholders, except as disclosed prior to the Closing Date and acceptable to the Initial Noteholders.

(l)Review of Financial Information.  The Initial Noteholders shall have received from the Seller, the Transferor and the Issuer such financial and other information as is reasonably requested by the Initial Noteholders.

(m)Review of Policies and Procedures. The Initial Noteholders shall have received from the Seller, the Transferor and the Issuer such credit policies, collection policies and operating and reporting policies and procedures as are reasonably requested by the Initial Noteholders.

(n)Approvals and Consents.  All Governmental Actions of all Governmental Authorities required with respect to the transactions contemplated by the Transaction Documents and the other documents related thereto shall have been obtained or made.

(o)No Defaults.  No Event of Default has occurred and is continuing.

10

 

(p)Representations and Warranties.  The representations and warranties of the Issuer, the Transferor and the Seller set forth in this Agreement and the other Transaction Documents are true and correct as of the Closing Date. 

(q)No Material Adverse Change.  As of the Closing Date none of the following shall have occurred (i) a general moratorium on commercial banking activities in New York shall have been declared by the relevant authorities, or (ii) there shall have occurred any outbreak or escalation of hostilities involving the United States, the declaration by the United States of a national emergency or any calamity or crisis (economic, financial or otherwise) that, in the Initial Noteholders’ reasonable judgement, materially and adversely affects financial markets, or (iii) there shall have occurred any change in financial markets that, in the Initial Noteholders’ reasonable judgment, is material and adverse, or (iv) any material adverse change, or any development involving a prospective material adverse change, in or affecting particularly the business or properties of Enova or any of its Affiliates or (v) any investigation shall have commenced against Enova or any of its Affiliates that has resulted in a Regulatory Trigger Event. 

(r)Credit Committee.The Initial Noteholders shall have received final investment or credit committee approval.

(s)Fees and Expenses.  All due diligence expenses, attorney's fees, search fees, title fees, documentation and filing fees and other fees due to the Initial Noteholders have been paid by the Issuer.

(t)Cash Management System.  The Initial Purchasers shall be satisfied with the Seller's, the Transferor's, the Master Servicer's and the Issuer's cash management systems and the Issuer shall have executed account control agreements satisfactory to the Initial Noteholders.

Section 3.04Conditions Subsequent

.

(a)UCCs.  Within three (3) Business Days of the Closing Date, the Initial Noteholders shall receive (i) acknowledgment copies of proper financing statements, filed within three (3) Business Days of the Closing Date, naming the Seller as debtor/seller, the Transferor as purchaser/secured party and the Indenture Trustee as assignee with respect to Seller’s transfer to the Transferor of an ownership interest in all Receivables and other assets to be transferred to the Transferor pursuant to the Receivables Purchase Agreement, (ii) acknowledgment copies of proper financing statements, filed within three (3) Business Days the Closing Date, naming the Transferor as debtor/seller, the Issuer as purchaser/secured party and the Indenture Trustee as assignee with respect to Transferor’s transfer to Issuer of an ownership interest in all Receivables and other assets to be transferred to the Issuer pursuant to the Sale Agreement, (iii) acknowledgment copies of proper financing statements, filed within three (3) Business Days of the Closing Date, naming Issuer as debtor and the Indenture Trustee as the secured party with respect to the Issuer’s grant of a security interest in the Issuer Estate to the Indenture Trustee, and (iv) executed copies of proper UCC‐3 termination statements necessary to release all liens and other Adverse Claims of any Person (other than the Seller, the Transferor, the Issuer and the Indenture Trustee pursuant to the Transaction Documents) in such Receivables and other assets

11

 

Article IV
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE ISSUER

The Issuer hereby represents, warrants and covenants to the Initial Noteholders as of the date of this Agreement, and to each Variable Funding Note Noteholder as of (and as a condition to any Advance occurring on) each Advance Date until satisfaction and discharge of the Indenture pursuant to Section 6.01 thereof, in each case with reference to the facts and circumstances then existing, as follows.

Section 4.01Organization

.  The Issuer has been duly organized and is validly existing, in good standing under the laws of Delaware, and is duly qualified to do business and is in good standing under the laws of each jurisdiction which requires such qualification wherein it owns or leases material properties or conducts material business, and has full power and authority to own its properties and conduct its business as currently conducted.  The Issuer shall at all times preserve and keep in full force and effect its existence and all rights and franchises, licenses and permits material to its business, except where the failure to preserve and maintain such existence, rights, franchises, privileges, qualifications, licenses and approvals would not have a Material Adverse Effect.

Section 4.02Authority

.  The Issuer has all the requisite power and authority in all material respects to enter into and perform its obligations under the Transaction Documents to which it is a party, to execute and deliver the Notes and to consummate the transactions contemplated hereby and thereby.  The execution and delivery by the Issuer of the Transaction Documents to which it is a party and the consummation by the Issuer of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary limited liability company action on the part of the Issuer.  Each of the Transaction Documents have been duly and validly executed and delivered by the Issuer and constitutes a legal, valid and binding obligation of the Issuer enforceable against the Issuer in accordance with its terms, subject to bankruptcy, reorganization, insolvency, receivership, conservatorship, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity.  Neither the execution nor the delivery by the Issuer of the Transaction Documents, nor the issuance or delivery by the Issuer of the Notes, nor the consummation by the Issuer of any of the transactions contemplated by the Transaction Documents, nor the fulfillment by the Issuer of the terms of the Transaction Documents will conflict with, or violate, result in a material breach of or constitute a material default (with or without notice or lapse of time, or both) under (a) any term or provision of the constituent documents of the Issuer or any Governmental Rule applicable to the Issuer or (b) any term or provision of any indenture or other agreement or instrument to which the Issuer is a party or by which it or any material portion of its properties are bound, nor will it result in the creation or imposition of any lien, charge or encumbrance upon any of the property of the Issuer pursuant to the terms of any indenture or other such agreement or instrument to which the Issuer is bound.  No Governmental Action is required by or with respect to the Issuer in connection with the execution and delivery of the Transaction Documents by the Issuer or the consummation by the Issuer of the transactions contemplated hereby or thereby.

Section 4.03The Notes

. 

12

 

(a)Each Variable Funding Note has been duly and validly authorized, and, when executed and authenticated in accordance with the terms of the Indenture and delivered to each Variable Funding Note Noteholder in accordance with this Agreement, will be duly and validly issued and outstanding, and will be entitled to the benefits of, as applicable, of the Indenture.  No Event of Default, Regulatory Trigger Event or any event which after any applicable grace period will become an Event of Default or Regulatory Trigger Event, as applicable, is or shall be subsisting in relation to any Variable Funding Note and no event has occurred which would constitute an Event of Default or a Regulatory Trigger Event or any event which after any applicable grace period would become an Event of Default or Regulatory Trigger Event, as applicable. 

(b)The Initial Term Note as of the Closing Date, and each other Term Note, as of each Conversion Date, has been duly and validly authorized, and, when executed and authenticated in accordance with the terms of the Indenture and delivered to the Indenture Trustee in accordance with this Agreement, will be duly and validly issued and outstanding, and will be entitled to the benefits of the Indenture.  No Event of Default, Regulatory Trigger Event or any event which after any applicable grace period will become an Event of Default or Regulatory Trigger Event, as applicable, is or shall be subsisting in relation to the Term Notes and no event has occurred which would constitute an Event of Default or a Regulatory Trigger Event or any event which after any applicable grace period would become an Event of Default or Regulatory Trigger Event, as applicable.

Section 4.04Litigation

. There is no pending or threatened action, suit or proceeding by or against the Issuer before any Governmental Authority or any arbitrator with respect to the Issuer, any of the Transaction Documents, or any of the transactions contemplated herein or therein, or with respect to the Issuer which, in the case of any such action, suit or proceeding with respect to the Issuer if adversely determined, would, in the reasonable judgment of the management of the Issuer have a Material Adverse Effect on the ability of the Issuer to perform its obligations under the Transaction Documents to which it is a party.

Section 4.05Access to Information

. From the Closing Date until the Maturity Date, the Issuer will, during regular business hours, on at least five (5) Business Days’ notice to the Issuer, permit the Variable Funding Note Noteholders, or their agents or representatives collectively, at the expense of the Issuer (subject to the limits imposed in Section 3.04(d) of the Servicing Agreement): (a) to examine all books, records and documents (including computer tapes and disks) in the possession or under the control of the Issuer relating to the Receivables, and (b) to visit the offices and properties of the Issuer for the purpose of examining such materials described in clause (a) above; provided, that prior to the occurrence of an Event of Default, a Master Servicer Default or an Asset Servicer Default, no more than four (4) visits to the offices and property of the Issuer and the Master Servicer pursuant to this Section 4.05 or Section 5.04 for access to the documentation regarding the Receivables shall be collectively made by or on behalf of the Variable Funding Note Noteholders and their representatives, collectively, in any twelve-month period; provided further that after or during the continuance of an Event of Default, a Master Servicer Default or an Asset Servicer Default, a Variable Funding Note Noteholder and its representatives may make more than four (4) visits per twelve-month period as it determines in its sole discretion.

13

 

Section 4.06Taxes, Etc. 

  Any taxes, fees and other charges of Governmental Authorities imposed upon the Issuer in connection with the execution, delivery and performance by the Issuer of the Transaction Documents or otherwise, have been paid or will be paid by the Issuer at or prior to the Closing Date, to the extent then due.

Section 4.07Disclosure

.  All written information heretofore furnished by the Issuer or any of its representatives, to the Variable Funding Note Noteholders, or any of their representatives, for purposes of or in connection with any Transaction Document, including information relating to the Receivables, was true and correct in all material respects (i) on the date such information was furnished by the Issuer or (ii) if such information specifically relates to an earlier date, on such earlier date.

Section 4.08Investment Company Act, Etc.

 The Issuer (i) is not a “covered fund” for purposes of Section 13 of the Bank Holding Act of 1956 (commonly referred to as the “Volcker Rule”), and (b) the Issuer is not required to register as an “investment company” under the Investment Company Act. In reaching this conclusion, the Issuer relied on the exemption from the definition of “investment company” contained in Rule 3a-7 under the Investment Company Act, although other exclusions or exemptions may apply.

Section 4.09Commodity Pool

. The Issuer is not an investment trust, syndicate or similar form of enterprise operated for the purpose of trading in commodity interests for purposes of the Commodity Pool definition in the Commodity Exchange Act.

In addition to the foregoing, the representations and warranties of Issuer set forth in any Transaction Document are hereby incorporated herein by reference for the benefit of the Initial Noteholders and the Variable Funding Note Noteholders.

Article V
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE MASTER SERVICER

The Master Servicer hereby represents, warrants and covenants with respect to itself and each Enova Party (other than the Issuer) to the Initial Noteholders and hereby reaffirms its representations, warrants and covenants with respect to itself and each Enova Party (other than the Issuer) set forth in all of the other Transaction Documents as of the date of this Agreement, and to the Variable Funding Note Noteholders as of (and as a condition to any Advance occurring on) each Advance Date until satisfaction and discharge of the Indenture pursuant to Section 6.01 thereof, in each case with reference to the facts and circumstances then existing, as follows.

Section 5.01Organization.

  Each Enova Party (other than the Issuer) has been duly organized and is validly existing, in good standing under the laws of the jurisdiction of organization, and is duly qualified to do business and is in good standing under the laws of each jurisdiction which requires such qualification wherein it owns or leases material properties or conducts material business, and has full power and authority to own its properties and conduct its business as currently conducted.  Each Enova Party (other than the Issuer) shall at all times 

14

 

preserve and keep in full force and effect its existence and all rights and franchises, licenses and permits material to its business.

Section 5.02Authority

.  Each Enova Party (other than the Issuer) has all the requisite power and authority in all material respects to enter into and perform its obligations under the Transaction Documents to which it is a party, and to consummate the transactions contemplated hereby and thereby.  The execution and delivery by each Enova Party (other than the Issuer) of the Transaction Documents to which it is a party and the consummation by each Enova Party (other than the Issuer) of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action on the part of each Enova Party (other than the Issuer).  Each of the Transaction Documents have been duly and validly executed and delivered by each Enova Party (other than the Issuer) and constitutes a legal, valid and binding obligation of each Enova Party (other than the Issuer) enforceable against each Enova Party (other than the Issuer) in accordance with its terms, subject to bankruptcy, reorganization, insolvency, receivership, conservatorship, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity.  Neither the execution nor the delivery by each Enova Party (other than the Issuer) of the Transaction Documents, nor the consummation by each Enova Party (other than the Issuer) of any of the transactions contemplated by the Transaction Documents, nor the fulfillment by each Enova Party (other than the Issuer) of the terms of the Transaction Documents will conflict with, or violate, result in a material breach of or constitute a material default (with or without notice or lapse of time, or both) under (a) any term or provision of the constituent documents of an Enova Entity (other than the Issuer) or any Governmental Rule applicable to such Enova Entity or (b) any term or provision of any indenture or other agreement or instrument to which an Enova Entity (other than the Issuer) is a party or by which it or any material portion of its properties are bound, nor will it result in the creation or imposition of any lien, charge or encumbrance upon any of the property of an Enova Entity (other than the Issuer) pursuant to the terms of any indenture or other such agreement or instrument to which such Enova Entity is bound.  No Governmental Action is required by or with respect to any Enova Entity (other than the Issuer) in connection with the execution and delivery of the Transaction Documents by the Enova Entities or the consummation by the Enova Entities of the transactions contemplated hereby or thereby.

Section 5.03Litigation

.  There is no pending or threatened action, suit or proceeding by or against any Enova Entity (other than the Issuer) before any Governmental Authority or any arbitrator with respect to any Enova Entity (other than the Issuer), any of the Transaction Documents, or any of the transactions contemplated herein or therein, or with respect to any Enova Entity (other than the Issuer) which, in the case of any such action, suit or proceeding with respect to an Enova Entity (other than the Issuer) if adversely determined, would, in the reasonable judgment of the management of such Enova Entity have a material adverse effect on the ability of such Enova Entity to perform its obligations under the Transaction Documents to which it is a party.

Section 5.04Access to Information

.  From the Closing Date until the Maturity Date, the Master Servicer will, during regular business hours, on at least five (5) Business Days’ notice to the Master Servicer, permit the Variable Funding Note Noteholders, or their agents or representatives collectively, at the expense of the Issuer (subject to the limits imposed in Section 3.04(d) of the Servicing Agreement ): (a) to examine all books, records and documents 

15

 

(including computer tapes and disks) in the possession or under the control of the Master Servicer relating to the Receivables, and (b) to visit the offices and properties of the Master Servicer for the purpose of examining such materials described in clause (a) above; provided, that prior to the occurrence of an Event of Default, a Master Servicer Default or an Asset Servicer Default, no more than four (4) visits to the offices and property of the Issuer and the Master Servicer pursuant to this Section 5.04 or Section 4.05 for access to the documentation regarding the Receivables shall be collectively made by or on behalf of the Variable Funding Note Noteholders and their representatives, collectively, in any twelve-month period; provided further, that after or during the continuance of an Event of Default, a Master Servicer Default or an Asset Servicer Default, any Variable Funding Note Noteholder and its representatives may make more than four (4) visits per twelve-month period as it determines in its sole discretion.

Section 5.05Taxes, Etc.

  Any taxes, fees and other charges of Governmental Authorities imposed upon an Enova Entity (other than the Issuer) in connection with the execution, delivery and performance by such Enova Entity of the Transaction Documents or otherwise, have been paid or will be paid by such Enova Entity at or prior to the Closing Date, to the extent then due.

Section 5.06 Disclosure

.  All written information heretofore furnished by an Enova Entity (other than the Issuer) or any of its representatives, to the Initial Noteholders, the Variable Funding Note Noteholders, or any of their representatives, for purposes of or in connection with any Transaction Document, including information relating to the Receivables, was true and correct in all material respects (i) on the date such information was furnished by such Enova Entity or (ii) if such information specifically relates to an earlier date, on such earlier date.

 

In addition to the foregoing, the representations and warranties each Enova Enity set forth in the Transaction Documents are hereby incorporated herein by reference for the benefit of the Initial Noteholders and the Variable Funding Note Noteholders.

Article VI
REPRESENTATIONS AND WARRANTIES OF EACH NOTEHOLDER

Each Initial Noteholder and each Variable Funding Note Noteholder severally hereby represents and warrants (as to itself and no other Noteholder) to each of the Issuer and the Master Servicer as of the Closing Date or the date on which it becomes a Variable Funding Note Noteholder pursuant hereto, as follows:

Section 6.01Organization

.  Such Noteholder has been duly incorporated, formed or organized and is validly existing in good standing under the laws of its jurisdiction of incorporation, formation or organization.

Section 6.02Authority

.  Such Noteholder has all requisite power and authority to enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery by such Noteholder of this Agreement and the consummation by such Noteholder of the transactions contemplated hereby have been duly and validly authorized by all necessary entity action on the part of such Noteholder.  This Agreement has been duly and validly executed and delivered by such Noteholder, and constitutes a legal, valid and binding obligation of such Noteholder, enforceable against such Noteholder, in 

16

 

accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity.  Neither the execution or delivery by such Noteholder of this Agreement, nor the consummation by such Noteholder of any of the transactions contemplated hereby, nor the fulfillment by such Noteholder of the terms hereof, will conflict with, or violate, result in a material breach of or constitute a material default (with or without notice or lapse of time, or both) under (i) any term or provision of the constituent documents of such Noteholder or any Governmental Rule applicable to such Noteholder, or (ii) any term or provision of any indenture or other agreement or instrument to which such Noteholder is a party or by which such Noteholder or any material portion of its properties are bound.  No Governmental Action is required by or with respect to such Noteholder in connection with the execution and delivery of this Agreement by such Noteholder or the consummation by such Noteholder of the transactions contemplated hereby.

Section 6.03Securities Act

.  The Initial Term Note and the Variable Funding Notes purchased pursuant to this Agreement, and any Term Note exchanged pursuant to Section 2.09(a), is acquired by the Person for investment only and not with a view to any public distribution thereof, and such Person will not offer to sell or otherwise dispose of its Note in violation of any of the registration requirements of the Securities Act or any applicable state or other securities laws.  The Person acknowledges that it has no right to require the Issuer to register under the Securities Act or any other securities law its Note.

Section 6.04No Reliance

.  Such Noteholder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in its Note and is able to bear the economic risk of such investment.  Each Noteholder has been afforded the opportunity to ask such questions as it deems necessary to make an investment decision, and has received all information it has requested in connection with making such investment decision.  Each Noteholder has, independently and without reliance upon the Administrative Agent or any other Noteholder, and based on such documents and information as it has deemed appropriate, made its own appraisal of, and investigation into, the Receivables and the business, operations, property, financial and other condition and creditworthiness of the Seller, the Transferor and the Issuer and made its own decision to purchase its interest in a Note, and will, independently and without reliance upon the Administrative Agent or any other Noteholder, and based on such documents and information as it shall deem appropriate at the time, continue to make its own analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Transaction Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Receivables, the Seller, the Transferor and the Issuer.

Section 6.05IAI or QIB.  It is an accredited investor as defined in any of paragraphs (1), (2), (3) and (7) of Rule 501(a) of Regulation D under the Securities Act or an entity in which all of the equity owners come within such paragraphs or a qualified institutional buyer within the meaning of Rule 144A under the Securities Act.  

17

 

Article VII
INDEMNIFICATION

Section 7.01Indemnification by the Issuer and the Master Servicer

.

(a)The Issuer shall indemnify and hold harmless each Initial Noteholder and each Variable Funding Note Noteholder, their respective Affiliates and their respective officers, directors, employees, stockholders, agents and representatives (each, an “Indemnified Party”), against any and all losses, claims, damages, liabilities or expenses (including legal and accounting fees) (collectively, “Losses”), as incurred (payable promptly upon request), for or on account of or arising from or in connection with or otherwise with respect to any Transaction Document, the financing, ownership, funding or maintenance of the Notes, including any breach of any representation or warranty of the Issuer set forth in any Transaction Document or in any certificate delivered pursuant hereto or thereto; provided, however, that the Issuer shall not be required to indemnify any Indemnified Party for any Losses (i) that have resulted from such Indemnified Party’s gross negligence, bad faith or willful misconduct or (ii) arising from any settlement entered into by an Indemnified Party without the Issuer’s prior consent (not to be unreasonably withheld or delayed).  This Section 7.01 shall not apply with respect to Taxes other than Taxes that represent losses, claims, damages or similar expenses arising from any non-Tax claim.

(b)The Master Servicer shall indemnify and hold harmless each Initial Noteholder and each Variable Funding Note Noteholder, their respective Affiliates and their respective officers, directors, employees, stockholders, agents and representatives, against any and all Losses, as incurred (payable promptly upon request), for or on account of or arising from or in connection with or otherwise with respect to any breach of any representation or warranty of the Master Servicer in any Transaction Document or in any certificate delivered pursuant hereto or thereto; provided, however, that the Master Servicer shall not be required to indemnify any Indemnified Party for any Losses (i) that have resulted from such Indemnified Party’s gross negligence, bad faith or willful misconduct or (ii) arising from any settlement entered into by an Indemnified Party without the Master Servicer’s prior consent (not to be unreasonably withheld or delayed).

(c)If any action or proceeding (including any governmental proceeding) is brought or asserted against any Indemnified Party in respect of which indemnity may be sought against the Issuer or the Master Servicer, as applicable, the Indemnified Party shall notify the Issuer or the Master Servicer, as applicable, of the commencement of such action or proceeding; provided, however, that failure to notify the Issuer or the Master Servicer, as applicable, will not relieve the Issuer or the Master Servicer, as applicable, of any liability or obligation hereunder.  Upon receipt of such notice, the Issuer or the Master Servicer, as applicable, shall promptly assume the defense of such action or proceeding, including the employment of counsel satisfactory to the Indemnified Parties in their reasonable judgment and the payment of all related expenses. If upon receipt of notice the Master Servicer fails to promptly assume the defense of such action or proceeding (as determined by the Indemnified Party in its sole discretion), each Indemnified Party shall have the right to employ separate counsel in any such action or proceeding and to participate in the defense thereof, and the Issuer or the Master Servicer, as applicable, shall assume the fees and expenses of such counsel. Otherwise, each 

18

 

Indemnified Party shall have the right to employ separate counsel in any such action or proceeding and to participate in (but not control) the defense thereof, and the Issuer or the Master Servicer, as applicable, shall assume the fees and expenses of such counsel; provided, that the Issuer or Master Servicer, as applicable, shall only assume the fees and expenses of such counsel if a conflict exists with the counsel employed by the Issuer or the Master Servicer, as applicable, and the Issuer or the Master Servicer, as applicable, approves such counsel. 

Section 7.02Costs and Expenses

.  The Issuer agrees to pay on demand to each Initial Noteholder and each Variable Funding Note Noteholder, as applicable, all reasonable and documented costs and expenses in connection with the preparation, execution, delivery and administration (including any amendments, waivers or consents) of this Agreement and the other documents to be delivered hereunder or in connection herewith, including (i) the reasonable and documented fees and out-of-pocket expenses of counsel for such Noteholder with respect thereto and with respect to advising such Noteholder as to its respective rights and remedies under this Agreement and the other documents delivered hereunder or in connection herewith, (ii) documented costs and expenses incurred in connection with the purchase by such Noteholder of a Note hereunder, (iii) all other documented fees, costs and expenses incurred by or in connection with the issuance of a Note, and (iv) all reasonable and documented costs and expenses, if any (including reasonable counsel fees and expenses), in connection with the enforcement of this Agreement, and the other documents delivered hereunder or in connection herewith.

Article VIII
MISCELLANEOUS

Section 8.01Notices, Etc.

  All requests, demands, directions consents, waivers, notices, authorizations and communications to any party provided for hereunder shall be in writing (including telecopy or electronic transmission) and addressed to such party at the address specified in Part III of Appendix A to the Indenture.  All such notices and other communications shall, when mailed, be effective when transmitted (receipt confirmed).  Any party hereto may change the address or telecopier number to which notices to it are to be sent by notice given to the other parties hereto.

Section 8.02No Waiver; Remedies

.  No failure on the part of any party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

Section 8.03Binding Effect; Assignability

.

(a)This Agreement shall be binding upon, and inure to the benefit of, the Initial Noteholders, each Variable Funding Note Noteholder, the Issuer, the Master Servicer and their respective successors and permitted assigns.

(b)Neither the Issuer nor the Master Servicer shall assign any of its respective rights and obligations hereunder or any interest herein without the prior consent of the Initial 

19

 

Noteholders and each Variable Funding Note Noteholder.  In connection with any such assignment the assignee shall expressly agree to assume all the obligations of the Issuer or the Master Servicer, as applicable, hereunder and no such assignment made without the prior consent of each such Noteholder shall relieve the Issuer or the Master Servicer, as applicable, of any of its obligations hereunder, and no assignment permitted hereunder shall relieve the Issuer or the Master Servicer, as applicable, from any obligations arising hereunder prior to such assignment (including obligations with respect to breaches of representations and warranties made herein). 

(c)Each Initial Noteholder and each Variable Funding Note Noteholders may, at any time, sell, assign, grant undivided participation interests in all or part of the obligations due to it under this Agreement and in respect of its interest in a Note, or otherwise transfer all or part of the obligations due to it under this Agreement and in respect of its interest in a Note without the consent of the Issuer or any of its Affiliates; provided, however, that any such sale, assignment or grant of a participation interest shall be effected in compliance with Section 4.04 of the Indenture.  Each Noteholder that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Issuer, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest in the Notes or other obligations under the Transaction Documents (the “Participant Register”); provided that no Noteholder shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant's interest in any commitments, loans, letters of credit or its other obligations under any Transaction Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Noteholder shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  This Section 8.03(c) shall be construed so that the Notes are at all times maintained in “registered form” within the meanings of Code Sections 163(f), 871(h)(2), and 881(c)(2) and any related regulations (and any successor provisions).

(d)This Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms, and shall remain in full force and effect until the Funding Period Termination Date; provided, however, that the rights and remedies with respect to any breach of any representation, warranty or covenant made by the Issuer or Master Servicer pursuant to Article IV and Article V, as applicable, shall be continuing and shall survive any termination of this Agreement.

(e)Each Holder hereby acknowledges that it is subject to and bound by the provisions of Section 3.04 and 11.12 of the Servicing Agreement in accordance with the terms thereof, which shall remain in full force and effect until terminated pursuant to Section 11.07 thereof.

Section 8.04[RESERVED].

Section 8.05Governing Law.

20

 

(a)THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THEREOF. 

(b)Each party hereto hereby consents and agrees that the state or federal courts located in the Borough of Manhattan in New York City shall have exclusive jurisdiction to hear and determine any claims or disputes between them pertaining to this Agreement or to any matter arising out of or relating to this Agreement; provided, that each party hereto acknowledges that any appeals from those courts may have to be heard by a court located outside of the Borough of Manhattan in New York City. Each party hereto submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and each party hereto hereby waives any objection that such party may have based upon lack of personal jurisdiction, improper venue or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court.  Each party hereto hereby waives personal service of the summons, complaint and other process issued in any such action or suit and agrees that service of such summons, complaint, and other process may be made by registered or certified mail addressed to such party at its address, and that service so made shall be deemed completed upon the earlier of such party’s actual receipt thereof or three (3) days after deposit in the United States mail, proper postage prepaid.  Nothing in this Section 8.05 shall affect the right of any party hereto to serve legal process in any other manner permitted by law.

(c)Because disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced and expert person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their disputes be resolved by a judge applying such applicable laws.  Therefore, to achieve the best combination of the benefits of the judicial system and of arbitration, the parties hereto waive all rights to trial by jury in any action, suit, or proceeding brought to resolve any dispute, whether sounding in contract, tort or otherwise, arising out of, or connection with, related to, or incidental to the relationship established among them in connection with this Agreement or the transactions contemplated hereby.

Section 8.06No Proceedings

.

(a)Each of the Issuer and the Master Servicer hereby severally agrees that it will not, acquiesce, petition or otherwise invoke or cause any Initial Noteholder or any Variable Funding Note Noteholder to invoke the process of any Governmental Authority for the purpose of commencing or sustaining a case against such Noteholder under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of such Noteholder or any substantial part of its property or ordering the winding-up or liquidation of the affairs of such Noteholder.

(b)The provisions of this Section 8.06 shall survive the termination of this Agreement.

21

 

Section 8.07Execution in Counterparts 

.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.

Section 8.08No Recourse

.

(a)No recourse under or with respect to any obligation, covenant or agreement (including the payment of any fees or any other obligations) of any Initial Noteholder or any Variable Funding Note Noteholder as contained in this Agreement or any other agreement, instrument or document entered into by it pursuant hereto or in connection herewith shall be had against any incorporator, affiliate, stockholder, officer, employee or director of any such Noteholder, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise (except to the extent that recourse against any such Person arises from the gross negligence or willful misconduct of such Person); it being expressly agreed and understood, that the agreements of each such Noteholder contained in this Agreement and all of the other agreements, instruments and documents entered into by it pursuant hereto or in connection herewith are, in each case, solely the corporate obligations of such Noteholder, and that no personal liability whatsoever shall attach to or be incurred by any incorporator, stockholder, affiliate, officer, employee or director of such Noteholder, as such, or any of them, under or by reason of any of the obligations, covenants or agreements of such Noteholder contained in this Agreement or in any other such instruments, documents or agreements, or which are implied therefrom, and that any and all personal liability of each incorporator, stockholder, affiliate, officer, employee or director of such Noteholder, or any of them, for breaches by such Noteholder of any such obligations, covenants or agreements, which liability may arise either at common law or at equity, or by statute or constitution, or otherwise, is hereby expressly waived except to the extent that such personal liability of any such Person arises from the gross negligence or willful misconduct of such Person.

(b)The provisions of this Section 8.08 shall survive the termination of this Agreement

Section 8.09[RESERVED].  

Section 8.10Administrative Agent’s Reliance

.    Neither the Administrative Agent, nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them as Administrative Agent under or in connection with this Agreement or any related agreement, instrument or document except for its or their own gross negligence or willful misconduct.  Without limiting the foregoing, the Administrative Agent:  (a) may consult with legal counsel (including counsel for the Issuer, the Master Servicer or the Indenture Trustee), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (b) makes no warranty or representation to any other Noteholder and shall not be responsible to any other Noteholder for any statements, warranties or representations made in or in connection with this Agreement or in connection with any related agreement, instrument or document; (c) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or any 

22

 

related agreement, instrument or document on the part of the Issuer or the Indenture Trustee or to inspect the property (including the books and records) of the Issuer or the Indenture Trustee; (d) shall not be responsible to any other Noteholder for the due execution, legality, validity, enforceability, genuineness or sufficiency of value of this Agreement or any related agreement, instrument or document; (e) shall not be deemed to be acting as any other Noteholder’s trustee or otherwise in a fiduciary capacity hereunder or in connection with any related agreement, instrument or document; and (f) shall incur no liability under or in respect of this Agreement or any related agreement, instrument or document by acting upon any notice (including notice by telephone), consent, certificate or other instrument (which may be by telex, facsimile or in a PDF file) believed by it to be genuine and signed or sent by the proper party or parties.

Section 8.11Joinder of Variable Funding Note Noteholders

.  A Person may become a Variable Funding Note Noteholder under this Agreement by purchasing an ownership interest in an outstanding Variable Funding Note and by executing a Joinder Agreement, in the form attached hereto as Exhibit B, among such Person, the Issuer, the Master Servicer and then existing Variable Funding Note Noteholders.  Such Person shall thereupon have all of the rights and obligations of a “Variable Funding Note Noteholder” hereunder.  A Person who holds only a participation interest in a Variable Funding Note shall not be considered a Variable Funding Note Noteholder hereunder based on such interests.

 

Section 1.01

23

 

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

	
	
ENOVA LENDING SERVICES, LLC,

	
as the Master Servicer

	
 

By:/s/ David A. Fisher

	
       Name:   David A. Fisher

	
       Title:     President

	
EFR 2016-1, LLC, as Issuer

	
 

	
 

By:/s/ David A. Fisher

	
       Name:   David A. Fisher

	
       Title:     President

 

 

[Signature Page to Note Purchase Agreement]

 

 

 

	
	
JEFFERIES FUNDING LLC,
as Administrative Agent, as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder

	
 

 

By:/s/ Brian McGrath

	
       Name:   Brian McGrath

	
       Title:     EVP

	
INITIAL TERM NOTE

PURCHASE PRICE:$***

	
 

FUNDING COMMITMENT:  $***

 

 

 

 

[Signature Page to Note Purchase Agreement]

 

 

	
	
	
WF 18, LLC,
as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder

	
 

 

By:/s/ Thomas Capasse 

	
       Name:   Thomas Capasse

	
       Title:     Authorized Person

	
INITIAL TERM NOTE

PURCHASE PRICE:$***

	
 

FUNDING COMMITMENT: $***

 

 

 

 

[Signature Page to Note Purchase Agreement]

 

 

	
	
Fortress credit co llc,
as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder

	
 

 

By:/s/ Jason Meyer 

	
       Name:   Jason Meyer

	
       Title:     Authorized Signatory

	
INITIAL TERM NOTE

PURCHASE PRICE:$***

	
 

FUNDING COMMITMENT: $***

 

 

 

 

 

 

 

[Signature Page to Note Purchase Agreement]

 

 

EXHIBIT A

[FORM OF] FUNDING REQUEST

Reference is made to the Note Purchase Agreement, dated as of January 15, 2016 (as it may be amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the “Note Purchase Agreement”), by and among Enova Lending Services, LLC, as Master Servicer, EFR 2016-1, LLC, as Issuer, Jefferies Funding LLC, as Administrative Agent, as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder, WF 18, LLC, as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder, Fortress Credit Co LLC, as an Initial Term Note Noteholder and as a Variable Funding Note Noteholder, and the other Variable Funding Note Noteholders from time to time party thereto.  Capitalized terms used but not otherwise defined herein shall have the meanings set forth in Appendix A to the Indenture, dated as of January 15, 2016, by and between the Issuer and Bankers Trust, as Indenture Trustee.

Pursuant to Section 2.04 of the Note Purchase Agreement, the Issuer desires that the Variable Funding Note Noteholders make the following Requested Advance to the Issuer in accordance with the applicable terms and conditions of the Note Purchase Agreement and the Indenture by 3:00 p.m. New York City time on mm/dd/yy (the “Advance Date”):

			
	
1.
	
Requested Advance
	
$[___,___,___]

	
2.
	
Borrowing base availability
	
$[___,___,___]

	
3.
	
Account Number
	
$[___,___,___]

	
4.

 
	
Routing Number
	
[___________]

 

The following table sets forth the computation of borrowing base availability referenced in line 2 above:

		
	
(A)  Outstanding Principal Balance of Variable Funding Notes (prior to Requested Advance)
	
$[___,___,___]

	
(B) Variable Funding Note Borrowing Base (including Receivables to be transferred on Advance Date)
	
$[___,___,___]

	
(C) = (B) - (A) = Borrowing base availability
	
$[___,___,___]

 

Pursuant to Section 2.04(d) of the Note Purchase Agreement, the following table sets forth the Ratable Portion and the Advance for each Variable Funding Note Noteholder:

				
	
Note Number
	
Variable Funding Note Noteholder
	
Ratable Portion
	
Advance

	
 
	
Jefferies
	
[__._]%
	
$[___,___,___]

	
 
	
Fortress
	
[__._]%
	
$[___,___,___]

	
 
	
Waterfall
	
[__._]%
	
$[___,___,___]

 

 

 

 

 

 

The Master Servicer and Issuer each hereby certify that:

(i)as of the date set forth in the Borrowing Base Certificate, the Variable Funding Note A Borrowing Base is equal to $[___________], the Variable Funding Note B Borrowing Base is equal to $[__________] and the Investment Pool Advance Amount is equal to $[__________];

(ii)after the Requested Advance has been funded by the Variable Funding Note Noteholders on the Advance Date, the aggregate Outstanding Principal Amount of the Variable Funding Notes as of such Advance Date will not exceed the Maximum Advance Amount then in effect;

(iii)as of the date hereof (prior to the funding of the Requested Advance): (A) the Outstanding Principal Amount of the Variable Funding Notes is equal to $[_____] and (B) the Outstanding Principal Amount of all Term Notes is equal to $[______];

(iv)after making the Advances requested on the Advance Date, the sum of the Variable Funding Note Stated Principal Amount and the Outstanding Principal Amount of all Outstanding Term Notes will not exceed the Maximum Principal Amount;

(v)as of the Advance Date, each Transaction Document is in full force and effect and no provision thereof has been amended, restated, supplemented, modified or waived except in accordance with the related Transaction Document;

(vi)as of the Advance Date, the representations and warranties made by each of the parties contained in each of the Transaction Documents are true and correct in all material respects on and as of such Advance Date to the same extent as though made on and as of such date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties are true and correct in all material respects on and as of such earlier date;

(vii)as of the Advance Date, after giving effect to the Requested Advance funded on such Advance Date, no Event of Default will have occurred or will be continuing or with the giving of notice or lapse of time would result from the consummation of the Requested Advance contemplated hereby;

(viii)as of the date hereof and in accordance with the terms of the Servicing Agreement, the Issuer has delivered, or caused the Master Servicer to deliver, to the Verification Agent, imaged copies of the Verifiable Collateral Documents;

(ix)as of the Advance Date, a Closing Date Material Adverse Change with respect to the Enova Entities shall not have occurred; and

 

 

(x)as of the Advance Date, each Receivable reflected on the related Borrowing Base Certificate is an Eligible Receivable; 

 

			
	
Date:[mm/dd/yy]
	
 

	
 
	
EFR 2016-1, LLC

 

	
 
	
By:  

	
 
	
Name:

	
 
	
Title:

 

 

	
ENOVA LENDING SERVICES, LLC,

	
as the Master Servicer

	
 

By: 

	
       Name:   David A. Fisher

	
       Title:     President

 

 

 

 

EXHIBIT B

[FORM OF] JOINDER AGREEMENT

JOINDER AGREEMENT, dated as of __________, 20__ (this “Joinder Agreement”), by and among [Joining Variable Funding Note Noteholder], as a Variable Funding Note Noteholder (the “Joining Noteholder”), EFR 2016-1, LLC, as Issuer, Jefferies Funding LLC (“Jefferies”), as the Administrative Agent and [_________ (“[Short-Form Name]”), as the Selling Noteholder (as defined below)].

PRELIMINARY STATEMENTS

WHEREAS, this Joinder Agreement is being executed and delivered pursuant to the Note Purchase Agreement, dated as of January 15, 2016 (as it may be amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the “Agreement”), by and among the Master Servicer, the Issuer, the Administrative Agent, the Initial Noteholders and the other Variable Funding Note Noteholders party thereto from time to time;

WHEREAS, pursuant to the Agreement, one or more persons may become a Variable Funding Note Noteholder with all the rights and obligations of a Variable Funding Note Noteholder;

WHEREAS, pursuant to the Agreement and a separate assignment and assumption agreement between [Short-Form Name] and Joining Noteholder, [Short-Form Name] wishes to transfer and assign to Joining Noteholder a portion of its rights and obligations as a Variable Funding Note Noteholder and to reduce the Funding Commitment of [Short-Form Name] (in such capacity, the “Selling Noteholder”); and

WHEREAS, the Joining Noteholder wishes to enter into this Joinder Agreement to acquire the rights and undertake the obligations assigned to it by the Selling Noteholder and to become a “Variable Funding Note Noteholder” pursuant to the Agreement.

NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, the parties hereto agree as follows:

(a)Defined Terms.  Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Appendix to the Indenture (as defined by reference in the Agreement).

(b)Joining Noteholder.  The Joining Noteholder is hereby added as a “Variable Funding Note Noteholder” with all the rights and obligations of each other Variable Funding Note Noteholder under the Agreement and agrees to be bound by the terms thereof.  As of the date hereof, the Joining Noteholder hereby makes, as to itself, each of the representations and warranties set forth in Article VI of the Agreement.

 

 

(c)Confirmation.  The parties to the Agreement hereby confirm that the Agreement remains in full force and effect and hereby ratifies the acceptance of the Joining Noteholder as “Variable Funding Note Noteholder” as of the date hereof. 

(d)Commitment.  The Joining Noteholder and each other Variable Funding Note Noteholder, hereby confirms its obligation to fund its ratable share of Advances on each Advance Date, up to but not exceeding the amount set forth under such Noteholder’s signature hereto.

(e)Principal Amount of Variable Funding Note.  The initial Outstanding Principal Amount of the Joining Noteholder’s Variable Funding Note is $_________.

(f)Governing Law.  THIS JOINDER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THEREOF.

(g)Counterparts.  This Joinder Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original, and all of which taken together shall constitute but one and the same instrument.

[Remainder of Page Intentionally Left Blank]

 

 

 

 

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

	
	
EFR 2016-1, LLC, as Issuer

	
 

	
By:  

	
         Name:  David A. Fisher

	
         Title:    President

 

 

[Signature Page to Joinder Agreement]

 

 

	
	
JEFFERIES FUNDING LLC, as Administrative Agent

 

By:  ________________________

         Name:

         Title:

 

 

 

[________], as the Selling Noteholder

 

By:  _________________________

         Name:  

         Title:    

 

 

NEW FUNDING COMMITMENT: $[__]

 

 

 

[JOINING VARIABLE FUNDING NOTE NOTEHOLDER],

as the Joining Noteholder

 

 

 

By:  ____________________________

Name:  

Title:  

 

FUNDING COMMITMENT: $[__]

 

 

 

 

 

 

 

[Signature Page to Joinder Agreement]exhibit101amendedandrest

Exhibit 10.1         AMENDED AND RESTATED CREDIT AGREEMENT   dated as of June 10, 2016   among   PHYSICIANS REALTY L.P.,   as Borrower,   PHYSICIANS REALTY TRUST,   as Guarantor   THE LENDERS PARTY HERETO,   KEYBANK NATIONAL ASSOCIATION,   as Administrative Agent   _____________________________________________________      KEYBANC CAPITAL MARKETS, INC., BMO CAPITAL MARKETS, and CITIZENS   BANK, N.A.      as Lead Arrangers and Co-Book Runners   BMO CAPITAL MARKETS AND CITIZENS BANK, N.A.,      as Co-Syndication Agents              

 

   i   TABLE OF CONTENTS   Page   Section 1 DEFINITIONS AND INTERPRETATION ....................................................................... 1   Section 1.1 Definitions. ............................................................................................................ 1   Section 1.2 Accounting Terms................................................................................................ 38   Section 1.3 Rules of Interpretation. ........................................................................................ 39   Section 2 LOANS AND LETTERS OF CREDIT ............................................................................ 40   Section 2.1 Revolving Loans and the Term Loan................................................................... 40   Section 2.2 Swingline Loans. ................................................................................................. 42   Section 2.3 Issuances of Letters of Credit and Purchase of Participations Therein. ............... 44   Section 2.4 Pro Rata Shares; Availability of Funds. ............................................................... 47   Section 2.5 Evidence of Debt; Register; Lenders’ Books and Records; Notes. ..................... 49   Section 2.6 Scheduled Principal Payments. ............................................................................ 49   Section 2.7 Interest on Loans. ................................................................................................. 49   Section 2.8 Conversion/Continuation. .................................................................................... 51   Section 2.9 Default Rate of Interest. ....................................................................................... 52   Section 2.10 Fees. ..................................................................................................................... 52   Section 2.11 Prepayments/Commitment Reductions. ............................................................... 54   Section 2.12 Application of Prepayments. ................................................................................ 55   Section 2.13 General Provisions Regarding Payments. ............................................................ 56   Section 2.14 Sharing of Payments by Lenders. ........................................................................ 57   Section 2.15 Cash Collateral. .................................................................................................... 58   Section 2.16 Defaulting Lenders. ............................................................................................. 58   Section 2.17 Removal or Replacement of Lenders. .................................................................. 61   Section 2.18 Extension of Revolving Maturity Date. ............................................................... 62   Section 2.19 Increase in Commitments. ................................................................................... 63   Section 3 YIELD PROTECTION ..................................................................................................... 64   Section 3.1 Making or Maintaining LIBOR Loans. ............................................................... 64   Section 3.2 Increased Costs. ................................................................................................... 66   Section 3.3 Taxes. ................................................................................................................... 68   Section 3.4 Mitigation Obligations; Designation of a Different Lending Office. .................. 71   Section 4 GUARANTY .................................................................................................................... 72   Section 4.1 The Guaranty. ...................................................................................................... 72   Section 4.2 Obligations Unconditional. .................................................................................. 73   Section 4.3 Reinstatement....................................................................................................... 74   Section 4.4 Certain Additional Waivers. ................................................................................ 74   Section 4.5 Remedies. ............................................................................................................. 74   Section 4.6 Rights of Contribution. ........................................................................................ 75   Section 4.7 Guarantee of Payment; Continuing Guarantee. ................................................... 75   Section 4.8 Keepwell. ............................................................................................................. 75   Section 5 CONDITIONS PRECEDENT .......................................................................................... 75   Section 5.1 Conditions Precedent to Effective Date. .............................................................. 75   Section 5.2 Conditions to Term Loan and Each Credit Extension. ........................................ 77   Section 6 REPRESENTATIONS AND WARRANTIES ................................................................. 78   Section 6.1 Organization; Requisite Power and Authority; Qualification. ............................. 78     

 

   ii   Section 6.2 Capital Stock and Ownership. ............................................................................. 79   Section 6.3 Due Authorization................................................................................................ 79   Section 6.4 No Conflict. ......................................................................................................... 79   Section 6.5 Governmental Consents. ...................................................................................... 79   Section 6.6 Binding Obligation. ............................................................................................. 79   Section 6.7 Financial Statements. ........................................................................................... 79   Section 6.8 No Material Adverse Effect; No Default. ............................................................ 80   Section 6.9 Tax Matters. ......................................................................................................... 80   Section 6.10 Properties. ............................................................................................................ 80   Section 6.11 Environmental Matters. ....................................................................................... 81   Section 6.12 No Defaults. ......................................................................................................... 81   Section 6.13 No Litigation or other Adverse Proceedings. ...................................................... 82   Section 6.14 Information Regarding the Borrower and its Subsidiaries. .................................. 82   Section 6.15 Governmental Regulation. ................................................................................... 82   Section 6.16 Employee Matters. ............................................................................................... 83   Section 6.17 Pension Plans. ...................................................................................................... 83   Section 6.18 Solvency. ............................................................................................................. 84   Section 6.19 Compliance with Laws. ....................................................................................... 84   Section 6.20 Disclosure. ........................................................................................................... 84   Section 6.21 Insurance; No Casualty or Condemnation. .......................................................... 84   Section 6.22 Healthcare Facility Representations and Warranties. .......................................... 84   Section 6.23 REIT Status. ......................................................................................................... 85   Section 6.24 Unencumbered Pool Properties............................................................................ 86   Section 7 AFFIRMATIVE COVENANTS ...................................................................................... 86   Section 7.1 Financial Statements and Other Reports. ............................................................. 86   Section 7.2 Existence. ............................................................................................................. 89   Section 7.3 Payment of Taxes and Claims. ............................................................................ 89   Section 7.4 Maintenance of Properties. .................................................................................. 89   Section 7.5 Insurance. ............................................................................................................. 90   Section 7.6 Inspections. .......................................................................................................... 90   Section 7.7 Lenders Meetings. ................................................................................................ 90   Section 7.8 Compliance with Laws and Material Contracts. .................................................. 90   Section 7.9 Use of Proceeds. .................................................................................................. 90   Section 7.10 Environmental Matters. ....................................................................................... 90   Section 7.11 Books and Records. ............................................................................................. 91   Section 7.12 Additional Subsidiaries. ....................................................................................... 91   Section 7.13 Unencumbered Pool Properties Subject to Eligible Ground Leases. ................... 92   Section 7.14 RESERVED. ........................................................................................................ 95   Section 7.15 REIT Status. ......................................................................................................... 95   Section 7.16 Leasing Matters Regarding Unencumbered Pool Properties. .............................. 95   Section 8 NEGATIVE COVENANTS ............................................................................................. 96   Section 8.1 Indebtedness. ....................................................................................................... 96   Section 8.2 Liens. ................................................................................................................... 97   Section 8.3 No Further Negative Pledges. .............................................................................. 99   Section 8.4 Restricted Payments. ............................................................................................ 99   Section 8.5 Burdensome Agreements. .................................................................................... 99   Section 8.6 Investments. ....................................................................................................... 100   Section 8.7 Use of Proceeds. ................................................................................................ 101   Section 8.8 Financial Covenants. .......................................................................................... 101     

 

   iii   Section 8.9 Capital Expenditures. ......................................................................................... 102   Section 8.10 Fundamental Changes; Disposition of Assets; Acquisitions. ............................ 102   Section 8.11 Disposal of Subsidiary Interests. ....................................................................... 103   Section 8.12 Transactions with Affiliates and Insiders. ......................................................... 103   Section 8.13 Prepayment of Other Funded Debt. ................................................................... 103   Section 8.14 Conduct of Business. ......................................................................................... 104   Section 8.15 Fiscal Year. ........................................................................................................ 104   Section 8.16 Amendments to Organizational Agreements/Material Agreements. ................. 104   Section 8.17 Addition/Removal of Unencumbered Pool Properties....................................... 104   Section 8.18 Property Management Agreements Regarding Unencumbered Pool   Properties. .......................................................................................................... 105   Section 9 EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS. ........................ 106   Section 9.1 Events of Default. .............................................................................................. 106   Section 9.2 Remedies. ........................................................................................................... 108   Section 9.3 Application of Funds. ........................................................................................ 108   Section 10 AGENCY ........................................................................................................................ 109   Section 10.1 Appointment and Authority. .............................................................................. 109   Section 10.2 Rights as a Lender.............................................................................................. 110   Section 10.3 Exculpatory Provisions. ..................................................................................... 110   Section 10.4 Reliance by Administrative Agent. .................................................................... 111   Section 10.5 Delegation of Duties. ......................................................................................... 111   Section 10.6 Resignation of Administrative Agent. ............................................................... 112   Section 10.7 Non-Reliance on Administrative Agent and Other Lenders. ............................. 113   Section 10.8 No Other Duties, etc. ......................................................................................... 113   Section 10.9 Administrative Agent May File Proofs of Claim. .............................................. 113   Section 10.10 Security Matters. ................................................................................................ 113   Section 11 MISCELLANEOUS ....................................................................................................... 114   Section 11.1 Notices; Effectiveness; Electronic Communications. ........................................ 114   Section 11.2 Expenses; Indemnity; Damage Waiver. ............................................................. 115   Section 11.3 Set-Off. .............................................................................................................. 117   Section 11.4 Amendments and Waivers. ................................................................................ 118   Section 11.5 Successors and Assigns. .................................................................................... 120   Section 11.6 Independence of Covenants. .............................................................................. 124   Section 11.7 Survival of Representations, Warranties and Agreements. ................................ 124   Section 11.8 No Waiver; Remedies Cumulative. ................................................................... 124   Section 11.9 Marshalling; Payments Set Aside. ..................................................................... 124   Section 11.10 Severability. ....................................................................................................... 125   Section 11.11 Obligations Several; Independent Nature of Lenders’ Rights. .......................... 125   Section 11.12 Headings. ........................................................................................................... 125   Section 11.13 Applicable Laws. ............................................................................................... 125   Section 11.14 WAIVER OF JURY TRIAL. ............................................................................. 126   Section 11.15 Confidentiality. .................................................................................................. 126   Section 11.16 Usury Savings Clause. ....................................................................................... 127   Section 11.17 Counterparts; Integration; Effectiveness............................................................ 127   Section 11.18 No Advisory of Fiduciary Relationship. ............................................................ 127   Section 11.19 Electronic Execution of Assignments and Other Documents. ........................... 128   Section 11.20 USA PATRIOT Act. .......................................................................................... 128   Section 11.21 Acknowledgement and Consent to Bail-In of EEA Financial Institutions. ....... 128     

 

   iv   Section 11.22 Existing Agreement. .......................................................................................... 129            

 

   v   Appendices      Appendix A  Lenders, Commitments and Revolving Commitment Percentages   Appendix B  Notice Information      Schedules      Schedule 1.1A  Approved Managers   Schedule 6.1  Organization; Requisite Power and Authority; Qualification   Schedule 6.2  Capital Stock and Ownership   Schedule 6.10(b) Real Estate Assets   Schedule 6.14  Name, Jurisdiction and Tax Identification Numbers of Borrower and its        Subsidiaries   Schedule 6.24  Unencumbered Pool Properties   Schedule 8.1  Existing Indebtedness   Schedule 8.2  Existing Liens   Schedule 8.6  Existing Investments      Exhibits      Exhibit 2.1  Form of Funding Notice   Exhibit 2.3  Form of Issuance Notice   Exhibit 2.5-1  Form of Revolving Loan Note   Exhibit 2.5-2  Form of Swingline Note   Exhibit 2.5-3  Form of Term Note   Exhibit 2.8  Form of Conversion/Continuation Notice   Exhibit 3.3  Forms of U.S. Tax Compliance Certificates (Forms 1 – 4)   Exhibit 7.1(c)-1  Form of Compliance Certificate   Exhibit 7.1(c)-2  Form of Borrowing Base Certificate   Exhibit 7.12  Form of Guarantor Joinder Agreement   Exhibit 11.5  Form of Assignment Agreement     

 

      AMENDED AND RESTATED CREDIT AGREEMENT   This AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 10, 2016 (as   amended, restated, increased, extended, supplemented or otherwise modified from time to time, this   “Agreement”), is entered into by and among PHYSICIANS REALTY L.P., a Delaware limited partnership   (the “Borrower”), PHYSICIANS REALTY TRUST, a Maryland real estate investment trust (the “Parent”),   as Guarantor, the Lenders from time to time party hereto, and KEYBANK NATIONAL ASSOCIATION,   as administrative agent (in such capacity, “Administrative Agent”).   RECITALS:   WHEREAS, certain lenders have made available to the Borrower a revolving credit facility   pursuant to the terms of that certain Credit Agreement dated as of September 18, 2014 (as amended and in   effect on the date hereof, the “Existing Agreement”); and   WHEREAS, the Borrower has requested, and the Administrative Agent and the Lenders have   agreed, to amend and restate, in full, the Existing Agreement and provide a term loan facility in accordance   with the terms and conditions contained herein;   NOW, THEREFORE, in consideration of these premises and the mutual covenants and agreements   contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto covenant   and agree that the Existing Agreement is hereby amended and restated to read as follows:   Section 1 DEFINITIONS AND INTERPRETATION   Section 1.1 Definitions.  The following terms used herein, including in the introductory   paragraph, recitals, exhibits and schedules hereto, shall have the following meanings:   “Acquisition”, by any Person, means the acquisition by such Person, in a single transaction or in a   series of related transactions, of all or any substantial portion of the assets of another Person or at least a   majority of the Capital Stock of another Person, in each case whether or not involving a merger or   consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness,   securities or otherwise.   “Adjusted EBITDA” means, for any period, the sum of (a) EBITDA of the Consolidated Parties   for the immediately preceding calendar quarter plus (b) non-recurring charges not otherwise added back in   the calculation of EBITDA of the Consolidated Parties for the purposes hereof under the definition of   “EBITDA”, including acquisition expenses less (c) the Capital Reserves for such period.   “Adjusted LIBOR Rate” means, for any Interest Rate Determination Date with respect to an Interest   Period for an Adjusted LIBOR Rate Loan, the rate per annum obtained by dividing (i) (a) the rate per annum   (rounded upward to the next whole multiple of one one-hundredth of one percent (1/100 of 1%)) equal to   the rate determined by the Administrative Agent to be the offered rate which appears on the Reuters Screen   LIBOR01 Page or any successor thereto approved by the Administrative Agent if such page no longer   reports such rate, for deposits (for delivery on the first day of such period) with a term equivalent to such   period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on such Interest Rate   Determination Date, or (b) in the event the rate referenced in the preceding clause (a) does not appear on   such page or service or if such page or service shall cease to be available, the rate per annum (rounded   upward to the next whole multiple of one one-hundredth of one percent (1/100 of 1%)) equal to the rate   determined by the Administrative Agent to be the offered rate on such other page or other service which   displays an average rate for deposits (for delivery on the first day of such period) with a term equivalent to     

 

   2   such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on such Interest   Rate Determination Date, or (c) in the event the rates referenced in the preceding clauses (a) and (b) are not   available, the rate per annum (rounded upward to the next whole multiple of one one-hundredth of one   percent (1/100 of 1%)) equal to quotation rate (or the arithmetic mean of rates) offered to first class banks   in the London interbank market for deposits (for delivery on the first day of the relevant period) in Dollars   of amounts in same day funds comparable to the principal amount of the applicable Loan of KeyBank or   any other Lender selected by the Administrative Agent, for which the Adjusted LIBOR Rate is then being   determined with maturities comparable to such period as of approximately 11:00 a.m. (London, England   time) on such Interest Rate Determination Date, by (ii) an amount equal to (a) one, minus (b) the Applicable   Reserve Requirement; provided that if  the foregoing rate shall be less than zero percent, the Adjusted   LIBOR Rate shall be deemed to be  zero percent for the purposes of this Agreement.   “Adjusted LIBOR Rate Loan” means Loans bearing interest based on the Adjusted LIBOR Rate.   “Adjusted NOI” means, for any period with respect to any Unencumbered Pool Property, (a) NOI   for such period, less (b) Capital Reserves for such period.   “Administrative Agent” means as defined in the introductory paragraph hereto, together with its   successors and permitted assigns.   “Administrative Questionnaire” means an administrative questionnaire provided by the Lenders in   a form supplied by the Administrative Agent.   “Adverse Proceeding” means any action, suit, proceeding (whether administrative, judicial or   otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any Credit   Party or any of its Subsidiaries) at law or in equity, or before or by any Governmental Authority, whether   pending, threatened in writing against any Credit Party or any of its Subsidiaries or any material property   of any Credit Party or any of its Subsidiaries.   “Affected Lender” means as defined in Section 3.1(b).   “Affected Loans” means as defined in Section 3.1(b).   “Affiliate” means, with respect to any Person, another Person that directly, or indirectly through   one or more intermediaries, Controls or is Controlled by or is under common Control with the Person   specified.   “Agent” means the Administrative Agent.   “Agreement” means as defined in the introductory paragraph hereto.   “Aggregate Revolving Commitments” means the Revolving Commitments of all the Lenders.  The   aggregate principal amount of the Aggregate Revolving Commitments in effect on the Effective Date is   EIGHT HUNDRED FIFTY MILLION DOLLARS ($850,000,000.00).   “Aggregate Unencumbered Pool Property Value Amount” means, with respect to any pool of   Unencumbered Pool Properties as of any date of determination, the aggregate sum of the respective   Unencumbered Pool Property Value amounts of each of the Unencumbered Pool Properties in such pool.   “Applicable Laws” means, as to any Person, all laws, including all applicable provisions of   constitutions, statutes, rules, ordinances, regulations and orders of all Governmental Authorities and all     

 

   3   orders, rulings, writs and decrees of all courts, tribunals and arbitrators, in each case, applicable to or   binding upon such Person or any of its property or to which such Person or any of its property is subject.   “Applicable Margin” means the percentage per annum determined, at any time, based on the range   into which the Borrower’s Credit Rating then falls, in accordance with the levels in the table set forth below   (the “Investment Grade Pricing Grid”).  During any period for which the Borrower has received three   Investment Grade Ratings which are not equivalent, such Applicable Margin will be determined by (a) the   highest Investment Grade Rating if they differ by only one Level and (b) the average of the two highest   Investment Grade Ratings if they differ by two or more Levels (unless the average is not a recognized   Level, in which case the Applicable Margin will be based on the Level corresponding to the second highest   Investment Grade Rating).  During any period for which the Borrower has received only two Investment   Grade Ratings and such Investment Grade Ratings are not equivalent, the Applicable Margin will be   determined by (i) the highest Investment Grade Rating if they differ by only one Level and (ii) the median   of the two Investment Grade Ratings if they differ by two or more Levels (unless the median is not a   recognized Level, in which case the Applicable Margin will be based on the Investment Grade Rating one   Level below the Level corresponding to the higher Investment Grade Rating). All of the foregoing shall be   determined solely but reasonably by Administrative Agent from time to time.  During any period for which   the Borrower has received an Investment Grade Rating from only one Rating Agency, the Applicable   Margin shall be determined based on such Investment Grade Rating so long as such Credit Rating is from   either S&P or Moody’s.  If the Borrower ceases to maintain Investment Grade Rating from either S&P or   Moody’s, then from and after such time the Applicable Margin shall be determined with reference to Level   V below, with any increase or decrease in the Applicable Margin resulting from such change becoming   effective on the date one (1) Business Day immediately following the date on which Borrower ceases to   maintain such Investment Grade Rating.         Investment Grade Pricing Grid         Pricing   Level   Credit   Rating   Applicable   Margin for   Revolving   Loans that   are Base   Rate Loans   Facility   Fee Rate   Applicable   Margin for   Revolving   Loans that are   Adjusted   LIBOR Rate   Loans and   Letter of Credit   Fee   Applicable   Margin for   Term Loans   that are Base   Rate Loans   Applicable   Margin for   Term Loans   that are   Adjusted   LIBOR Rate   Loans   I At Least   A-or A3   0.00% 0.125% 0.85% 0.40% 1.40%   II At Least   BBB+ or   BAA1   0.00% 0.15% 0.90% 0.45% 1.45%   III At Least   BBB or   BAA2   0.10% 0.20% 1.00% 0.55% 1.55%   IV At Least   BBB-or   BAA3    0.20% 0.25% 1.20% 0.80% 1.80%   V Below   BBB-and   BAA3   0.60% 0.30% 1.55% 1.25% 2.25%     

 

   4   “Applicable Reserve Requirement” means, at any time, for any Adjusted LIBOR Rate Loan, the   maximum rate, expressed as a decimal, at which reserves (including any basic marginal, special,   supplemental, emergency or other reserves) are required to be maintained with respect thereto against   “Eurocurrency liabilities” (as such term is defined in Regulation D of the FRB, as in effect from time to   time) under regulations issued from time to time by the FRB or other applicable banking regulator.  Without   limiting the effect of the foregoing, the Applicable Reserve Requirement shall reflect any other reserves   required to be maintained by such member banks with respect to (i) any category of liabilities which   includes deposits by reference to which the applicable Adjusted LIBOR Rate or any other interest rate of a   Loan is to be determined, or (ii) any category of extensions of credit or other assets which include Adjusted   LIBOR Rate Loans.  An Adjusted LIBOR Rate Loan shall be deemed to constitute Eurocurrency liabilities   and as such shall be deemed subject to reserve requirements.  The rate of interest on Adjusted LIBOR Rate   Loans shall be adjusted automatically on and as of the effective date of any change in the Applicable   Reserve Requirement.   “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate   of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.   “Approved Manager” means (a) any Person listed on Schedule 1.1A (as such schedule may be   amended from time to time by the Borrower with the approval of the Administrative Agent) or (b) any other   property manager reasonably acceptable to the Administrative Agent with experience managing properties   which are substantially similar to the applicable Unencumbered Pool Property, and which is engaged to   manage one or more Unencumbered Pool Properties pursuant to a management agreement between such   Person or property manager and the applicable Unencumbered Property Owner that owns (or ground leases)   such Unencumbered Pool Property.   “Asset Sale” means a sale, lease, sale and leaseback, assignment, conveyance, exclusive license (as   licensor), transfer or other disposition to, or any exchange of property with, any Person, in one transaction   or a series of transactions, of all or any part of any Credit Party or any of its Subsidiaries’ businesses, assets   or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now   owned or hereafter acquired, created, leased or licensed, including the Capital Stock of any Subsidiary of   the Borrower, other than (a) dispositions of surplus, obsolete or worn out property or property no longer   used or useful in the business of the Borrower and its Subsidiaries, whether now owned or hereafter   acquired, in the ordinary course of business; (b) dispositions of inventory sold, and Intellectual Property   licensed or sublicensed, in the ordinary course of business; (c) dispositions of accounts or payment   intangibles (each as defined in the UCC) resulting from the compromise or settlement thereof in the ordinary   course of business for less than the full amount thereof; (d) dispositions of Cash Equivalents in the ordinary   course of business; (e) licenses, sublicenses, leases or subleases granted to any third parties in arm’s-length   commercial transactions in the ordinary course of business that do not interfere in any material respect with   the business of the Borrower or any of its Subsidiaries; (f) dispositions of property or assets to the extent   that (i) such property or assets are exchanged for credit against the purchase price of similar replacement   property or (ii) the proceeds of such dispositions of property or assets are promptly applied to the purchase   price of such replacement property; (g) dispositions in the ordinary course of business consisting of the   abandonment or cancellation of any Intellectual Property which, in the reasonable good faith determination   of the Borrower is not material to the conduct of the business of the Borrower and its Subsidiaries, taken as   a whole; and (h) transfers of property or assets subject to casualty, condemnation or similar event upon   receipt of the insurance or condemnation proceeds thereof.   “Assignment Agreement” means an assignment agreement entered into by a Lender and an Eligible   Assignee (with the consent of any party whose consent is required by Section 11.5(b)) and accepted by the   Administrative Agent, in substantially the form of Exhibit 11.5 or any other form approved by the   Administrative Agent.     

 

   5   “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any Person,   the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date   in accordance with GAAP, (b) in respect of any Off-Balance Sheet Obligation, the capitalized amount of   the remaining lease or similar payments under the relevant lease or agreement that would appear on a   balance sheet of such Person prepared as of such date in accordance with GAAP if such lease or agreement   were accounted for as a Capital Lease, (c) in the case of Securitization Transactions, the outstanding   principal amount of such financing, after taking into account reserve amounts and making appropriate   adjustments, determined by the Administrative Agent in its reasonable judgment and (d) in the case of Sale   and Leaseback Transactions, the present value (discounted in accordance with GAAP at the debt rate   implied in the applicable lease) of the obligations of the lessee for rental payments during the term of such   lease.   “Authorized Officer” means, as applied to any Person, any individual holding the position of   chairman of the board (if an officer), chief executive officer, president or one of its vice presidents (or the   equivalent thereof), chief financial officer, treasurer or assistant treasurer and, solely for purposes of making   the certifications required under Section 5.1(b)(ii) and (iv), any secretary or assistant secretary.   “Available Commitment” shall mean, as to any Lender at any time, an amount equal to the excess,   if any, of (a) the amount of such Lender’s Revolving Commitment over (b) the aggregate outstanding   principal amount of all Revolving Credit Exposure of such Lender as of such date.   “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable   EEA Resolution Authority in respect of any liability of an EEA Financial Institution.   “Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of   Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the   implementing law for such EEA Member Country from time to time which is described in the EU Bail-In   Legislation Schedule.   “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy.”   “Bankruptcy Event” means, with respect to any Person, the occurrence of any of the following: (a)   the entry of a decree or order for relief by a court or governmental agency in an involuntary case under any   applicable Debtor Relief Law or any other bankruptcy, insolvency or other similar law now or hereafter in   effect, or the appointment by a court or governmental agency of a receiver, liquidator, assignee, custodian,   trustee, sequestrator (or similar official) of such Person or for any substantial part of its Property or the   ordering of the winding up or liquidation of its affairs by a court or governmental agency and such decree,   order or appointment is not vacated or discharged within sixty (60) days of its filing; or (b) the   commencement against such Person of an involuntary case under any applicable Debtor Relief Law or any   other bankruptcy, insolvency or other similar law now or hereafter in effect, or of any case, proceeding or   other action for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or   similar official) of such Person or for any substantial part of its property or for the winding up or liquidation   of its affairs, and such involuntary case or other case, proceeding or other action shall remain undismissed   for a period of sixty (60) consecutive days, or the repossession or seizure by a creditor of such Person of a   substantial part of its property; or (c) such Person shall commence a voluntary case under any applicable   Debtor Relief Law or any other bankruptcy, insolvency or other similar law now or hereafter in effect, or   consent to the entry of an order for relief in an involuntary case under any such law, or consent to the   appointment of or the taking possession by a receiver, liquidator, assignee, creditor in possession, custodian,   trustee, sequestrator (or similar official) of such Person or for any substantial part of its property or make   any general assignment for the benefit of creditors; or (d) the filing of a petition by such Person seeking to   take advantage of any Debtor Relief Law or any other applicable Law, domestic or foreign, relating to     

 

   6   bankruptcy, insolvency, reorganization, winding up, or composition or adjustment of debts, or (e) such   Person shall fail to contest in a timely and appropriate manner (and if not dismissed within sixty (60) days)   or shall consent to any petition filed against it in an involuntary case under such bankruptcy laws or other   applicable Law or consent to any proceeding or action relating to any bankruptcy, insolvency,   reorganization, winding up, or composition or adjustment of debts with respect to its assets or existence, or   (f) such Person shall admit in writing an inability to pay its debts generally as they become due.   “Base Rate” means, for any day, a rate per annum equal to the greatest of (i) the Prime Rate in   effect on such day, (ii) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of one percent (0.50%)   and (iii) the LIBOR Index Rate in effect on such day plus one percent (1.0%).  Any change in the Base Rate   due to a change in the Prime Rate, the Federal Funds Effective Rate or the LIBOR Index Rate shall be   effective on the effective day of such change in the Prime Rate, the Federal Funds Effective Rate or the   LIBOR Index Rate, respectively.   “Base Rate Loan” means a Loan bearing interest at a rate determined by reference to the Base Rate.   “Borrower” means as provided in the introductory paragraph to this Agreement.   “Borrowing” means (a) a borrowing consisting of simultaneous Loans of the same Type of Loan   and, in the case of Adjusted LIBOR Rate Loans, having the same Interest Period, or (b) a borrowing of   Swingline Loans, as appropriate.   “Borrowing Base” means, as of any date of determination, that amount which is the lesser of: (a)   that amount which would result in a Consolidated Unsecured Leverage Ratio of 0.60 to 1.00 (provided that,    if the Borrower shall have consummated a Material Acquisition, then such amount shall, at the Borrower’s   election, be the amount which would result in a Consolidated Unsecured Leverage Ratio of 0.65 to 1.00 for   a maximum of two consecutive Fiscal Quarters following such Material Acquisition), and (b) that amount   which would result in an Unencumbered Debt Service Coverage Ratio of 1.75 to 1.00; provided, however,   at no time shall:   (I) the percentage of the Borrowing Base attributable to Unencumbered Pool   Properties that are Healthcare Facilities other than Medical Office Properties exceed 50.0%; and    (II) the percentage of the Borrowing Base attributable to Unencumbered Pool   Properties (A) that are subject to Eligible Ground Leases and (B) which are so-called off-campus   properties (greater than 1⁄2 mile of a hospital campus) exceed 15.0% (but for the avoidance of doubt,   any such Real Estate Assets subject to Eligible Ground Leases which are so-called on-campus   properties (located within 1⁄2 mile of a hospital campus) shall not be subject to the percentage   limitation set forth in this clause (II));    (III) the percentage of the Borrowing Base attributable to any single Unencumbered   Pool Property exceed (A) during the period commencing from the Effective Date to but not   including September 18, 2016, 30.0%, and (B) during the period from and after September 18,   2016, 20.0%; and   (IV) the percentage of the Borrowing Base attributable to Unencumbered Pool   Properties held by Joint Venture Entities shall not exceed 10.0%, with the Total Asset Value and   Adjusted NOI from Unencumbered Pool Properties being determined based on the Borrower’s   ownership percentage in the respective Joint Venture Entity;        

 

   7   To the extent any of the limitations in the forgoing proviso are exceeded, any such excess shall be excluded   from the calculation of the Borrowing Base hereunder.  All of the foregoing shall be as calculated by   Borrower and supported by financial information which has been delivered to the Administrative Agent   pursuant to the terms of this Agreement (subject to any restatement of or other adjustment to the financial   statements of the Borrower or for any other reason), as approved by Administrative Agent from time to   time in its sole but reasonable discretion.      “Borrowing Base Certificate” shall mean a certificate substantially in the form of Exhibit 7.1(c)-2   hereto delivered to the Administrative Agent pursuant hereto and (a) setting forth each Real Estate Asset   of the Credit Parties and their Subsidiaries, identifying which such Real Estate Assets are Unencumbered   Pool Properties and certifying (subject to the qualifications set forth in clause (b) herein) (1) the Aggregate   Unencumbered Pool Property Value Amount, detailing the calculation of the Unencumbered Pool Property   Value with respect to each Unencumbered Pool Property, (2) the then applicable Consolidated Unsecured   Leverage Ratio, (3) the then applicable Unencumbered Debt Service Coverage Ratio, and (4) the respective   percentages of the Borrowing Base attributable to: Unencumbered Pool Properties that are Healthcare   Facilities (x) other than Medical Office Properties, (y) (A) subject to Eligible Ground Leases and (B) which   are so-called off-campus properties (greater than 1⁄2 mile of a hospital campus), and (z) comprising the   single largest Unencumbered Pool Property (based on the percentage of the Borrowing Base attributable to   such Unencumbered Pool Property); (b) certifying (in the Borrower’s good faith and based upon its own   information and the information made available to any Credit Party or Unencumbered Property Owner by   the applicable Tenants respecting the Unencumbered Pool Properties, which information the Credit Parties   believe in good faith to be true and correct in all material respects) (x) as to the calculation of the Borrowing   Base as of the date of such certificate and (y) that each Real Estate Asset included in the calculation of the   Borrowing Base meets each of the criteria for qualification as (1) an Unencumbered Pool Property and (2)   set forth in the definition of Borrowing Base; and (c) providing such other information with respect to the   Unencumbered Pool Properties as the Administrative Agent may reasonably require.   “Business Day” means (i) any day excluding Saturday, Sunday and any day which is a legal holiday   under the laws of the State of New York or is a day on which banking institutions located in such state are   authorized or required by law or other governmental action to close, and (ii) with respect to all notices,   determinations, fundings and payments in connection with the Adjusted LIBOR Rate or any Adjusted   LIBOR Rate Loans (and in the case of determinations, the LIBOR Index Rate), the term “Business Day”   means any day which is a Business Day described in clause (i) and which is also a day for trading by and   between banks in Dollar deposits in the London interbank market.   “Calculation Period” means the trailing twelve (12) month calculation period ending on any date   of determination.   “Capitalization Rate” means, the rate indicated below with respect to each type of Real Estate   Asset:   (a) Medical Office Properties: 6.75%   (b) life science facilities: 6.75%   (c) long term acute care facilities: 9.25%   (d) rehabilitation facilities: 9.25%   (e) skilled nursing facilities: 10.00%     

 

   8   (f) independent living facilities: 7.75%    (g) assisted living facilities: 7.75%   “Capital Lease” means, as applied to any Person, any lease of any property (whether real, personal   or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital   lease on the balance sheet of that Person.   “Capital Reserves” means a capital reserve per annum calculated as the sum of $0.50 per square   foot times the gross leasable area for each Real Estate Asset owned by a Consolidated Party or an   Unconsolidated Affiliate.   “Capital Stock” means (a) in the case of a corporation, capital stock, (b) in the case of an association   or business entity, any and all shares, interests, participations, rights or other equivalents (however   designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or   limited), (d) in the case of a limited liability company, membership interests and (e) any other interest or   participation that confers on a Person the right to receive a share of the profits and losses of, or distributions   of assets of, the issuing Person.   “Capitalized Lease Obligation” means an obligation under a lease of any property (whether real,   personal or mixed) that is required to be capitalized for financial reporting purposes in accordance with   GAAP.  The amount of a Capitalized Lease Obligation is the capitalized amount of such obligation as would   be required to be reflected on a balance sheet prepared in accordance with GAAP as of the applicable date.   “Cash Collateralize” means, to pledge and deposit with or deliver to the Administrative Agent, the   Issuing Bank or the Swingline Lender, as applicable, as collateral for the Letter of Credit Obligations or   Swingline Loans, as applicable, or obligations of Lenders to fund participations in respect thereof, cash or   deposit account balances or, if the Administrative Agent, the Issuing Bank or Swingline Lender, as   applicable, may agree in their sole discretion, other credit support, in each case pursuant to documentation   in form and substance reasonably satisfactory to the Administrative Agent, the Issuing Bank and/or   Swingline Lender, as applicable.  “Cash Collateral” shall have a meaning correlative to the foregoing and   shall include the proceeds of such cash collateral and other credit support.   “Cash Equivalents” means, as at any date of determination, any of the following: (a) marketable   securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United   States government, or (ii) issued by any agency of the United States the obligations of which are backed by   the full faith and credit of the United States, in each case maturing within one (1) year after such date; (b)   marketable direct obligations issued by any state of the United States or any political subdivision of any   such state or any public instrumentality thereof, in each case maturing within one (1) year after such date   and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from   Moody’s; (c) commercial paper maturing no more than one (1) year from the date of creation thereof and   having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s;   (d) certificates of deposit or bankers’ acceptances maturing within one (1) year after such date and issued   or accepted by any Lender or by any commercial bank organized under the laws of the United States or any   state thereof or the District of Columbia that (i) is at least “adequately capitalized” (as defined in the   regulations of its primary federal banking regulator), and (ii) has Tier 1 capital (as defined in such   regulations) of not less than $100,000,000; and (e) shares of any money market mutual fund that (i) has   substantially all of its assets invested continuously in the types of investments referred to in clauses (a) and   (b) above, (ii) has net assets of not less than $500,000,000, and (iii) has the highest rating obtainable from   either S&P or Moody’s.     

 

   9   “Change in Law” means the occurrence, after the date of this Agreement, of any of the following:   (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule,   regulation or treaty or in the administration, interpretation, implementation or application thereof by any   Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether   or not having the force of law) by any Governmental Authority; provided that notwithstanding anything   herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all   requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests,   rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee   on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory   authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,”   regardless of the date enacted, adopted or issued.   “Change of Control” means an event or series of events by which:   (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the   Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries,   and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator   of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the   Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial   ownership” of all securities that such person or group has the right to acquire (such right, an “option   right”), whether such right is exercisable immediately or only after the passage of time), directly or   indirectly, of 20% or more of the Capital Stock of the Parent entitled to vote for members of the   board of directors or equivalent governing body of the Parent on a fully diluted basis (and taking   into account all such securities that such person or group has the right to acquire pursuant to any   option right); or   (b) during any period of 24 consecutive months, a majority of the members of the   board of directors or other equivalent governing body of the Parent cease to be composed of   individuals (i) who were members of that board or equivalent governing body on the first day of   such period, (ii) whose election or nomination to that board or equivalent governing body was   approved by individuals referred to in clause (i) above constituting at the time of such election or   nomination at least a majority of that board or equivalent governing body or (iii) whose election or   nomination to that board or other equivalent governing body was approved by individuals referred   to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a   majority of that board or equivalent governing body; or   (c) the Parent ceases to own, directly or indirectly, sixty percent (60.0%) of the limited   partnership interests in the Borrower.   “CMS” means the Centers for Medicare & Medicaid Services, the federal agency responsible for   administering the Medicare, Medicaid, SCHIP (State Children’s Health Insurance), HIPAA (Health   Insurance Portability and Accountability Act), CLIA (Clinical Laboratory Improvement Amendments), and   several other federal health-related programs.   “Co-Syndication Agents” means, singly and collectively, (i) BMO Capital Markets and (ii) Citizens   Bank, N.A.   “Commitments” means the Revolving Commitments or the Term Commitments or any   combination thereof, as the context may require.   “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. §1 et seq.).     

 

   10   “Compliance Certificate” means a Compliance Certificate substantially in the form of Exhibit   7.1(c)-1.   “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by   net income (however denominated) or that are franchise Taxes or branch profits Taxes.   “Consolidated Fixed Charge Coverage Ratio” means, as of any date of determination, the ratio of   (a) Adjusted EBITDA for the four-Fiscal Quarter period most recently ended, to (b) Fixed Charges for such   four-Fiscal Quarter period.   “Consolidated Interest Charges” means, for any period, for the Consolidated Parties on a   consolidated basis, an amount equal to the sum of (i) all interest, premium payments, debt discount, fees,   charges and related expenses in connection with borrowed money (including capitalized interest) or in   connection with the deferred purchase price of assets, in each case to the extent treated as interest in   accordance with GAAP, plus (ii) the portion of rent expense with respect to such period under Capital   Leases that is treated as interest in accordance with GAAP plus (iii) the implied interest component of   Synthetic Leases with respect to such period.   “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated   Total Indebtedness on such date to (b) Total Asset Value on such date.   “Consolidated Net Income” means, for any period, without duplication, for the Consolidated Parties   on a consolidated basis, the net income of the Parent and its Subsidiaries, excluding extraordinary gains   and losses for such period, as determined in accordance with GAAP (for the avoidance of doubt, gains and   losses from the sale of Real Estate Assets shall not be considered extraordinary gains and losses).   “Consolidated Parties” means a collective reference to the Parent and the Subsidiaries of the Parent,   and “Consolidated Party” means any one of them.   “Consolidated Secured Indebtedness Leverage Ratio” means, as of any date of determination, the   quotient (expressed as a percentage) of (a) Secured Indebtedness, divided by (b) Total Asset Value.   “Consolidated Taxes” means, for any period, for the Consolidated Parties on a consolidated basis,   the aggregate of all taxes, as determined in accordance with GAAP.   “Consolidated Total Indebtedness” means, as of any date of determination, without duplication, the   aggregate amount of Indebtedness of the Consolidated Parties, on a consolidated basis.   “Consolidated Total Unsecured Indebtedness” means, as of any date of determination, without   duplication, the aggregate amount of Unsecured Indebtedness of the Consolidated Parties, on a consolidated   basis.   “Consolidated Unsecured Interest Charges” means, for any period, for the Consolidated Parties on   a consolidated basis, an amount equal to the Consolidated Interest Charges determined solely with respect   to Consolidated Total Unsecured Indebtedness.   “Consolidated Unsecured Leverage Ratio” means, as of any date of determination, the ratio of (a)   Consolidated Total Unsecured Indebtedness on such date to (b) the Aggregate Unencumbered Pool Property   Value Amount on such date.     

 

   11   “Construction-In-Process” means any Real Estate Asset which does not have buildings or other   improvements located thereon, but which is under development for the construction of buildings or   improvements which will qualify as or will constitute Healthcare Facilities upon completion (or, to the   extent any buildings or improvements are located thereon, such buildings or other improvements are under   construction and are non-operational, and no certificate(s) of occupancy have been issued with respect   thereto), and/or the budgeted costs associated with the acquisition and construction of such Real Estate   Asset, including, but not limited to, the cost of acquiring such Real Estate Asset as reasonably determined   by Borrower in good faith, as the context may require.   “Contractual Obligation” means, as applied to any Person, any provision of any Security issued by   that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other   instrument to which that Person is a party or by which it or any of its properties is bound or to which it or   any of its properties is subject.   “Control” means the possession, directly or indirectly, of the power to direct or cause the direction   of the management or policies of a Person, whether through the ability to exercise voting power, by contract   or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.   “Conversion/Continuation Date” means the effective date of a continuation or conversion, as the   case may be, as set forth in the applicable Conversion/Continuation Notice.   “Conversion/Continuation Notice” means a Conversion/Continuation Notice substantially in the   form of Exhibit 2.8.   “Credit Date” means the date of a Credit Extension.   “Credit Document” means any of this Agreement, the Notes, any Guaranty, any Guarantor Joinder   Agreement, the Fee Letter, any document executed and delivered by the Borrower and/or any other Credit   Party and/or any Lender pursuant to which any Aggregate Revolving Commitments or the Term Loans are   increased pursuant to Section 2.19, any documents or certificates executed by any Credit Party in favor of   the Issuing Bank relating to Letters of Credit, and, to the extent evidencing or securing the Obligations, all   other documents, instruments or agreements executed and delivered by any Credit Party for the benefit of   the Administrative Agent, the Issuing Bank or any Lender in connection herewith or therewith, and   including for the avoidance of doubt, any Guarantor Joinder Agreement (but specifically excluding secured   Swap Contracts and secured Treasury Management Agreements).   “Credit Extension” means the making of a Revolving Loan, Term Loan or the issuing of a Letter   of Credit.   “Credit Parties” means, collectively, the Borrower and each Guarantor.   “Credit Rating” means the rating assigned by a Rating Agency to the senior unsecured long term   Indebtedness of a Person.   “Customary Recourse Exceptions” means, with respect to any Indebtedness, personal recourse that   is limited to fraud, misrepresentation, misapplication of cash, waste, environmental claims and liabilities,   prohibited transfers, and violations of single purpose entity covenants.   “Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation, conservatorship,   bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,     

 

   12   reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time   to time in effect.   “Default” means a condition or event that, after notice or lapse of time or both, would constitute an   Event of Default.   “Default Rate” means an interest rate equal to the Base Rate plus the Applicable Margin applicable   to Base Rate Loans plus two percent (2%) per annum.   “Defaulting Lender” means, subject to Section 2.16(b), any Lender that (a) has failed to (i) fund   all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be   funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that   such failure is the result of such Lender’s determination that one or more conditions precedent to funding   (each of which conditions precedent, together with any applicable default, shall be specifically identified   in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the Issuing Bank, the   Swingline Lender or any other Lender any other amount required to be paid by it hereunder (including in   respect of its participation in Letters of Credit or Swingline Loans) within two (2) Business Days of the   date when due, (b) has notified the Borrower, the Administrative Agent or the Issuing Bank or Swingline   Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a   public statement to that effect (unless such writing or public statement relates to such Lender’s obligation   to fund a Loan hereunder and states that such position is based on such Lender’s determination that a   condition precedent to funding (which condition precedent, together with any applicable default, shall be   specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three   (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing   to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations   hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon   receipt of such written confirmation by the Administrative Agent and the Borrower), (d) has, or has a direct   or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law,   or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit   of creditors or similar Person charged with reorganization or liquidation of its business or assets, including   the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such   a capacity, or (e) has become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting   Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct   or indirect parent company thereof by a Governmental Authority so long as such ownership interest does   not result in or provide such Lender with immunity from the jurisdiction of courts within the United States   or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such   Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with   such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under   any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and   such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.16(b)) upon delivery of written   notice of such determination to the Borrower, the Issuing Bank, the Swingline Lender and each Lender.   “Dollars” and the sign “$” mean the lawful money of the United States.   “Domestic Subsidiary” means any Subsidiary organized under the laws of the United States, any   state thereof or the District of Columbia.   “EBITDA” means, with respect to a Person for any period, the sum of: (a) net income (or loss) of   such Person for such period determined on a consolidated basis (excluding any income or losses from   minority interests in the case of the Parent), in accordance with GAAP excluding acquisition related costs,   and, exclusive of the following (but only to the extent included in determination of such net income (loss)):     

 

   13   (i) depreciation and amortization expense; (ii) interest expense; (iii) income tax expense; (iv) extraordinary   or non-recurring gains and losses; plus (b) such Person’s pro rata share of EBITDA of its Unconsolidated   Affiliates.  EBITDA shall be adjusted to remove any impact from straight line rent leveling adjustments   required under GAAP and amortization of deferred market rent into income pursuant to Statement of   Financial Accounting Standards number 141.   “ECP Rules” means as defined in Section 4.1.   “EEA Financial Institution” means (a) any credit institution or investment firm established in any   EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity   established in an EEA Member Country which is a parent of an institution described in clause (a) of this   definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of   an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with   its parent.   “EEA Member Country” means any of the member states of the European Union, Iceland,   Liechtenstein, and Norway.   “EEA Resolution Authority” means any public administrative authority or any person entrusted with   public administrative authority of any EEA Member Country (including any delegee) having responsibility   for the resolution of any EEA Financial Institution.   “Effective Date” means June 10, 2016.   “Eligible Assignee” means any Person that meets the requirements to be an assignee under Section   11.5(b), subject to any consents and representations, if any as may be required therein.   “Eligible Ground Lease” means, at any time, a ground lease (a) under which an Unencumbered   Property Owner is the lessee and is the fee owner of the structural improvements located thereon, (b) that   has a remaining term of not less than thirty (30) years (including the initial term and any additional extension   options that are solely at the option of such Unencumbered Property Owner), (c) where no party to such   lease is subject to a then continuing Bankruptcy Event, (d) such ground lease (or a related document   executed by the applicable ground lessor) contains customary provisions protective of a first mortgage   lender to the ground lessee thereunder, (e) where such Unencumbered Property Owner’s interest in the   underlying Real Estate Asset or the ground lease is not subordinate to any Lien other than any fee mortgage   (so long as the mortgagee under such fee mortgage has agreed not to disturb the rights and interests of such   Unencumbered Property Owner pursuant to a non-disturbance agreement reasonable satisfactory to the   Administrative Agent), any Permitted Liens and such other encumbrances that are reasonably acceptable   to the Administrative Agent, and (f) which is otherwise reasonably acceptable to the Administrative Agent.   “Eligible Tenant” means a Tenant which (a) is not in arrears on any required rental payment,   principal or interest payment, payments of real property taxes or payments of premiums on insurance   policies with respect to its lease beyond the later of (i) the applicable grace period with respect thereto, if   any, and (ii) sixty (60) days; (b) is not subject to a then continuing Bankruptcy Event; and (c) is reasonably   acceptable in all material respects to the Administrative Agent.   “Environmental Claim” means any known investigation, written notice, written notice of violation,   written claim, action, suit, proceeding, written demand, abatement order or other written order or directive   (conditional or otherwise), by any Person arising (i) pursuant to or in connection with any actual or alleged   violation of any Environmental Law; (ii) in connection with any Hazardous Material or any actual or alleged     

 

   14   Hazardous Materials Activity; or (iii) in connection with any actual or alleged damage, injury, threat or   harm to human health, safety, natural resources or the environment.   “Environmental Laws” means any and all current or future federal or state (or any subdivision of   either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations,   or any other written requirements of Governmental Authorities relating to (i)  any Hazardous Materials   Activity; (ii) the generation, use, storage, transportation or disposal of Hazardous Materials; or (iii)    protection of the environment from pollution, in any manner applicable to any Credit Party or any of its   Subsidiaries or their respective Facilities.   “Environmental Liability” means any liability, contingent or otherwise (including any liability for   damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, Parent, any   Unencumbered Property Owner or any of their respective Subsidiaries directly or indirectly resulting from   or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation,   storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the   Release or threatened Release of any Hazardous Materials into the environment or (e) any contract,   agreement or other consensual arrangement pursuant to which Borrower or any Subsidiary assumed liability   with respect to any of the foregoing.   “Environmental Permits” means all permits, licenses, orders, and authorizations which the   Borrower or any of its Subsidiaries has obtained under Environmental Laws in connection with the   Borrower’s or any such Subsidiary’s current Facilities or operations.   “Equity Interests” means, with respect to any Person, all of the shares of Capital Stock of (or other   ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or   acquisition from such Person of shares of Capital Stock of (or other ownership or profit interests in) such   Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other   ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition   from such Person of such shares (or such other interests), and all of the other ownership or profit interests   in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and   whether or not such shares, warrants, options, rights or other interests are outstanding on any date of   determination.   “Equity Issuance” means, with respect to the Parent or any of its Subsidiaries, any issuance or sale   by the Parent or such Subsidiary of shares of its Equity Interests, other than an issuance (a) to the Parent or   any of its wholly-owned Subsidiaries, (b) in connection with a conversion of debt securities to equity, (c)   in connection with the exercise by a present or former employee, officer or director under a stock incentive   plan, stock option plan or other equity-based compensation plan or arrangement, (d) which occurred prior   to the Effective Date, or (e) in connection with any Acquisition or capital expenditures permitted under this   Agreement.   “ERISA” means the Employee Retirement Income Security Act of 1974, and the regulations   thereunder.   “ERISA Affiliate” means, as applied to any Person, (i) any corporation which is a member of a   controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of   which that Person is a member; (ii) any trade or business (whether or not incorporated) which is a member   of a group of trades or businesses under common control within the meaning of Section 414(c) of the   Internal Revenue Code of which that Person is a member; and (iii) any member of an affiliated service   group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any   corporation described in clause (i) above or any trade or business described in clause (ii) above is a member.     

 

   15   “ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and   the regulations issued thereunder with respect to any Pension Plan (excluding those for which notice to the   PBGC has been waived by regulation); (ii) the failure to meet the minimum funding standard of Section   412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance   with Section 412(c) of the Internal Revenue Code), the failure to make by its due date any minimum   required contribution or any required installment under Section 430(j) of the Internal Revenue Code with   respect to any Pension Plan or the failure to make by its due date any required contribution to a   Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan pursuant to Section   4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in   Section 4041(c) of ERISA; (iv) the withdrawal from any Pension Plan with two (2) or more contributing   sponsors or the termination of any such Pension Plan, in either case resulting in material liability pursuant   to Section 4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension   Plan, or the occurrence of any event or condition reasonably likely to constitute grounds under ERISA for   the termination of, or the appointment of a trustee to administer, any Pension Plan; (vi) the imposition of   liability pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c)   of ERISA, each case reasonably likely to result in material liability; (vii) the withdrawal of any Credit Party,   any of its Subsidiaries or any of their respective ERISA Affiliates in a complete or partial withdrawal   (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if such withdrawal   is reasonably likely to result in material liability, or the receipt by any Credit Party, any of its Subsidiaries   or any of their respective ERISA Affiliates of notice from any Multiemployer Plan that it is in   reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that it is in “critical” or   “endangered” status within the meaning of Section 103(f)(2)(G) or ERISA, or that it intends to terminate   or has terminated under Section 4041A or 4042 of ERISA, if such reorganization, insolvency or termination   is reasonably likely to result in material liability; (viii) the imposition of fines, penalties, taxes or related   charges under Chapter 43 of the Internal Revenue Code or under Section 409, Section 502(c), (i) or (l), or   Section 4071 of ERISA in respect of any Pension Plan if such fines, penalties, taxes or related charges are   reasonably likely to result in material liability; (ix) the assertion of a material claim (other than routine   claims for benefits and funding obligations in the ordinary course) against any Pension Plan other than a   Multiemployer Plan or the assets thereof, or against any Person in connection with any Pension Plan such   Person sponsors or maintains reasonably likely to result in material liability; (x) receipt from the Internal   Revenue Service of a final written determination of the failure of any Pension Plan intended to be qualified   under Section 401(a) of the Internal Revenue Code to qualify under Section 401(a) of the Internal Revenue   Code, or the failure of any trust forming part of any such plan to qualify for exemption from taxation under   Section 501(a) of the Internal Revenue Code; or (xi) the imposition of a lien pursuant to Section 430(k) of   the Internal Revenue Code or pursuant to Section 303(k) or 4068 of ERISA.   “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the   Loan Market Association (or any successor Person), as in effect from time to time.   “Event of Default” means each of the conditions or events set forth in Section 9.1.   “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and   any successor statute.   “Excluded Subsidiary” means (a) any Subsidiary of the Borrower or the Parent (i) holding title to   assets which are or are to become collateral for any Secured Indebtedness of such Subsidiary; (ii) which is   prohibited from guarantying the Indebtedness of any other Person pursuant to (A) any document, instrument   or agreement evidencing such Secured Indebtedness or (B) a provision of such Subsidiary’s organizational   documents which provision was included in such Subsidiary’s organizational documents as a condition to   the extension of such Secured Indebtedness; and (iii) the liabilities for which none of the Guarantors (other   than the Parent), any of their respective Subsidiaries (other than another Excluded Subsidiary) has any     

 

   16   contingent liability or is otherwise liable with respect to any of the Indebtedness of such Subsidiary, except   for customary exceptions for fraud, misapplication of funds, environmental indemnities, violation of   “special purpose entity” covenants, bankruptcy, insolvency, receivership or other similar events and other   similar exceptions from non-recourse liability, or (b) any Subsidiary which is not a Wholly-Owned   Subsidiary and with respect to which the Parent or the Borrower, as applicable, does not have sufficient   voting power (and is unable, after good faith efforts to do so, to cause any necessary non-affiliated equity   holders to agree) to cause such entity to become a “Guarantor” or, notwithstanding such voting power, the   interests of such non-affiliated holders has material economic value in the reasonable judgment of the   Borrower that would be impaired by such Subsidiary becoming a “Guarantor,” or (c) Ziegler-Florida 4, so    long as the only assets owned by Ziegler-Florida 4 consist of the Florida Equity Interests and any proceeds   from the sale or other disposition of the Florida Equity Interests.   “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to   the extent that, all or a portion of the Guaranty of such Guarantor of, or the grant by such Guarantor of a   Lien to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity   Exchange Act (or the application or official interpretation thereof) by virtue of such Guarantor’s failure for   any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act   (determined after giving effect to Section 4.8 and any other “keepwell,” support or other agreement for the   benefit of such Guarantor and any and all guarantees of such Guarantor’s Swap Obligations by other Loan   Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor of a Lien, becomes effective   with respect to such Swap Obligation.  If a Swap Obligation arises under a Master Agreement governing   more than one Swap Contract, such exclusion shall apply only to the portion of such Swap Obligation that   is attributable to Swap Contracts for which such Guaranty or Lien becomes illegal.   “Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or   required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by   net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as   a result of such Recipient being organized under the laws of, or having its principal office or, in the case of   any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political   subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal   withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an   applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender   acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the   Borrower under Section 2.17 or (ii) such Lender changes its lending office, except in each case to the extent   that, pursuant to Section 3.3, amounts with respect to such Taxes were payable either to such Lender’s   assignor immediately before such Lender became a party hereto or to such Lender immediately before it   changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 3.3(f)   and (d) any U.S. federal withholding Taxes imposed under FATCA.   “Existing Agreement” has the meaning given to such terms in the recitals hereto.   “Extension Effective Date” means as defined in Section 2.18(a).   “Extension Notice” means as defined in Section 2.18(a).   “Facility” means any real property including all buildings, fixtures or other improvements located   on such real property now, hereafter or heretofore owned, leased, operated or used by the Borrower or any   of its Subsidiaries or any of their respective predecessors.   “Facility Fee” means as defined in Section 2.10(b).     

 

   17   “Facility Fee Rate” as detailed in the Investment Grade Pricing Grid.   “FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards   Board.   “FATCA” means Sections 1471 through 1474 of the Internal Revenue Code as of the date of this   Agreement (or any amended or successor version that is substantively comparable and not materially more   onerous to comply with), any current or future regulations or official interpretations thereof and any   agreements entered into pursuant to Section 1471(b) of the Internal Revenue Code.   “Federal Funds Effective Rate” means for any day, the rate per annum (expressed, as a decimal,   rounded upwards, if necessary, to the next higher one one-hundredth of one percent (1/100 of 1%)) equal   to the weighted average of the rates on overnight federal funds transactions with members of the Federal   Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank   of New York on the Business Day next succeeding such day; provided, (i) if such day is not a Business   Day, the Federal Funds Effective Rate for such day shall be such rate on such transactions on the next   preceding Business Day as so published on the next succeeding Business Day, and (ii) if no such rate is so   published on such next succeeding Business Day, the Federal Funds Effective Rate for such day shall be   the average rate charged to KeyBank or any other Lender selected by the Administrative Agent on such day   on such transactions as determined by the Administrative Agent.   “Fee Letter” means that certain letter agreement dated May 6, 2016 entered into by and among   KeyBank, KeyBanc Capital Markets, and the Borrower.   “FFO Distribution Allowance” means (a) prior to December 31, 2016, an amount equal to 100%   of Funds From Operations for the period commencing January 1, 2016 through any applicable Fiscal   Quarter end, and (b) for any four (4) Fiscal Quarter period of the Consolidated Parties ending as of the end   of any Fiscal Quarter on or after December 31, 2016, an amount equal to 95% of Funds From Operations   for such four (4) Fiscal Quarter period.     “Financial Officer Certification” means, with respect to the financial statements for which such   certification is required, the certification of the chief financial officer, principal accounting officer, treasurer   or controller of the Parent that such financial statements fairly present, in all material respects, the financial   condition of the Parent and its Subsidiaries as at the dates indicated and the results of their operations and   their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end   adjustments.   “Fiscal Quarter” means a fiscal quarter of any Fiscal Year.   “Fiscal Year” means the fiscal year of the Parent and its Subsidiaries ending on December 31 of   each calendar year.   “Fitch” means Fitch Ratings Inc., together with its successors.   “Fixed Charges” means, for any period, the sum of (a) Consolidated Interest Charges for such   period, plus (b) all regularly scheduled principal payments made with respect to Indebtedness of the   Borrower, the Guarantors and their respective Subsidiaries during such period, other than any balloon,   bullet or similar principal payment which repays such Indebtedness in full (provided that any such regularly   scheduled principal payments that are not payable monthly shall, for purposes of this definition, be treated   as if such payment were payable in equal monthly installments commencing on such payment date to and   including the month immediately prior to the date of the next such scheduled payment or, if there is no such     

 

   18   next scheduled payment, the maturity date therefor), plus (c) all Preferred Dividends paid during such   period.  Each Consolidated Party’s Ownership Share of the Fixed Charges of its Unconsolidated Affiliates   shall be included in the determination of Fixed Charges.   “Florida Equity Interests” means the Equity Interests in CED Summerfield Square, LLC held or   owned by Ziegler-Florida 4 as of the Effective Date.   “Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person,   and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a   jurisdiction other than that in which the Borrower is resident for tax purposes.   “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.   “FRB” means the Board of Governors of the Federal Reserve System of the United States.   “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the Issuing   Bank, such Defaulting Lender’s Revolving Commitment Percentage of the outstanding Letter of Credit   Obligations with respect to Letters of Credit issued by the Issuing Bank other than Letter of Credit   Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other   Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swingline   Lender, such Defaulting Lender’s Revolving Commitment Percentage of outstanding Swingline Loans   made by the Swingline Lender other than Swingline Loans as to which such Defaulting Lender’s   participation obligation has been reallocated to other Lenders.   “Fund” means any Person (other than a natural person) that is (or will be) engaged in making,   purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the   ordinary course of its activities.   “Funded Debt” means, as to any Person at a particular time, without duplication, all of the   following, whether or not included as indebtedness or liabilities in accordance with GAAP (except as   provided in clauses (a)(ii) and (b) below):   (a) all obligations for borrowed money, whether current or long-term (including the   Obligations hereunder), all obligations evidenced by bonds, debentures, notes, loan agreements or   other similar instruments but specifically excluding (i) trade payables incurred in the ordinary   course of business and (ii) earn outs or other similar deferred or contingent obligations incurred in   connection with any Acquisition until such time as such earn outs or obligations are recognized as   a liability on the balance sheet of the Borrower and its Subsidiaries in accordance with GAAP;   (b) all obligations in respect of the deferred purchase price of property or services   (other than trade accounts payable in the ordinary course of business and, in each case, not past due   for more than 60 days after the date on which such trade account payable was created), including,   without limitation, any earn out obligations recognized as a liability on the balance sheet of the   Parent and its Subsidiaries in accordance with GAAP;   (c) all obligations under letters of credit (including standby and commercial), bankers’   acceptances and similar instruments (including bank guaranties);   (d) the Attributable Indebtedness of Capital Leases, Synthetic Leases and   Securitization Transactions;     

 

   19   (e) all preferred stock and comparable equity interests providing for mandatory   redemption, sinking fund or other like payments;   (f) Guarantees in respect of Funded Debt of another Person; and   (g) Funded Debt of any partnership or joint venture or other similar entity in which   such Person is a general partner or joint venturer, and, as such, has personal liability for such   obligations, but only to the extent there is recourse to such Person for payment thereof.   For purposes hereof, the amount of Funded Debt shall be determined (i) based on the outstanding principal   amount in the case of borrowed money indebtedness under clause (a) and purchase money indebtedness   and the deferred purchase obligations under clause (b), (ii) based on the maximum amount available to be   drawn in the case of letter of credit obligations and the other obligations under clause (c), and (iii) based on   the amount of Funded Debt that is the subject of the Guarantees in the case of Guarantees under clause (f).   “Funding Notice” means a notice substantially in the form of Exhibit 2.1.   “Funds From Operations” means, with respect to the immediately prior Fiscal Quarter,   Consolidated Net Income after adjustments for unconsolidated partnerships and joint ventures as hereafter   provided, plus depreciation and amortization; provided, that, to the extent such calculations include   amounts allocable to Unconsolidated Affiliates, such calculations shall be without duplication and shall   only include such amounts to the extent attributable to the applicable Ownership Share of any Consolidated   Party in such Unconsolidated Affiliate.  Without limiting the foregoing, notwithstanding contrary treatment   under GAAP, for purposes hereof, (a) “Funds From Operations” shall include, and be adjusted to take into   account, (i) the Parent’s interests in unconsolidated partnerships and joint ventures, on the same basis as   consolidated partnerships and subsidiaries, as provided in the “white paper” issued in April 2002 by the   National Association of Real Estate Investment Trusts, as may be amended from time to time, and (ii)   amounts deducted from net income as a result of pre-funded fees or expenses incurred in connection with   acquisitions permitted under the Credit Documents that can no longer be capitalized due to FAS 141R   changes and charges relating to the under-accrual of earn outs due to the FAS 141R changes, and (b) net   income (or loss) of the Consolidated Parties shall not include gains (or, if applicable, losses) resulting from   or in connection with (i) restructuring of indebtedness, (ii) sales of property, (iii) sales or redemptions of   preferred stock or (iv) non cash asset impairment charges.   “GAAP” means, subject to the limitations on the application thereof set forth in Section 1.2,   accounting principles generally accepted in the United States in effect as of the date of determination   thereof.   “Governmental Acts” means any act or omission, whether rightful or wrongful, of any present or   future de jure or de facto government or Governmental Authority.   “Governmental Authority” means the government of the United States or any other nation, or of   any political subdivision thereof, whether state or local, and any agency, authority, instrumentality,   regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,   regulatory or administrative powers or functions of or pertaining to government (including any supra-   national bodies such as the European Union or the European Central Bank and any group or body charged   with setting financial accounting or regulatory capital rules or standards (including, without limitation, the   Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on   Banking Supervision or any successor or similar authority to any of the foregoing)).     

 

   20   “Governmental Authorization” means any permit, license, authorization, plan, directive, consent   order or consent decree of or from any Governmental Authority.   “Guarantee” means, as to any Person, any obligation, contingent or otherwise, of such Person   guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable   or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and   including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply   funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease   property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or   other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain   working capital, equity capital or any other financial statement condition or liquidity or level of income or   cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other   obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of   such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee   against loss in respect thereof (in whole or in part).  The amount of any Guarantee shall be deemed to be an   amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in   respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably   anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.  The term   “Guarantee” as a verb has a corresponding meaning.   “Guarantor Joinder Agreement” means a guarantor joinder agreement substantially in the form of   Exhibit 7.12 delivered by a Domestic Subsidiary of the Borrower pursuant to Section 7.12.   “Guarantors” means (a) the Parent, (b) each other Person that joins as a Guarantor pursuant to   Section 7.12, (c) with respect to (i) Obligations under any Swap Contract, (ii) Obligations under any   Treasury Management Agreement and (iii) any Swap Obligation of a Specified Credit Party (determined   before giving effect to Sections 4.1 and 4.8) under the Guaranty, the Borrower, and (d) their successors and   permitted assigns.   “Guaranty” means the Guaranty made by the Guarantors in favor of the Administrative Agent, the   Lenders and the other holders of the Obligations pursuant to Section 4.   “Hazardous Materials” means any hazardous substances defined by the Comprehensive   Environmental Response Compensation and Liability Act, 42 USCA 9601, et. seq., as amended   (“CERCLA”), including any hazardous waste as defined under 40 C.F.R. Parts 260-270, gasoline or   petroleum (including crude oil or any fraction thereof), asbestos or polychlorinated biphenyls.   “Hazardous Materials Activity” means any past, current, proposed or threatened activity, event or   occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage,   holding, presence, existence, location, Release, threatened Release, discharge, placement, generation,   transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition   or handling of any Hazardous Materials, and any corrective action or response action with respect to any   of the foregoing.   “Healthcare Facility” means any Medical Office Property, outpatient center, group medical practice   clinic, ASC (hospital-sponsored or seasoned group practice-sponsored), specialty hospital (short-term stay   surgery, IRH, oncology), general acute care hospitals, selected post-acute/long-term care facilities and   selected senior housing facilities or other property typically owned by healthcare real estate investment   trusts and any ancillary businesses that are incidental to the foregoing.   “Healthcare Laws” means as defined in Section 6.22(a).     

 

   21   “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from   time to time may be contracted for, charged, or received under Applicable Laws relating to any Lender   which are currently in effect or, to the extent allowed under such Applicable Laws, which may hereafter be   in effect and which allow a higher maximum non-usurious interest rate than Applicable Laws now allow.   “HIPAA” means the Health Insurance Portability and Accountability Act of 1996 and the related   regulations set forth at 45 CFR Parts 160 and 164.   “HMO” means any health maintenance organization, managed care organization, any Person doing   business as a health maintenance organization or managed care organization, or any Person required to   qualify or be licensed as a health maintenance organization or managed care organization under applicable   federal or state law (including, without limitation, HMO regulations).   “Increase Effective Date” means as defined in Section 2.19(d).   “Indebtedness” means, with respect to a Person, at the time of computation thereof, all of the   following (without duplication): (a) all obligations of such Person in respect of money borrowed or for the   deferred purchase price of property or services (excluding trade debt incurred in the ordinary course of   business); (b) all obligations of such Person, whether or not for money borrowed (i) represented by notes   payable, or drafts accepted, in each case representing extensions of credit, (ii) evidenced by bonds,   debentures, notes or similar instruments, or (iii) constituting purchase money indebtedness, conditional   sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are   customarily paid or that are issued or assumed as full or partial payment for property or for services   rendered; (c) Capitalized Lease Obligations of such Person; (d) all reimbursement obligations (contingent   or otherwise) of such Person under or in respect of any letters of credit or acceptances (whether or not the   same have been presented for payment); (e) all Off-Balance Sheet Obligations of such Person; (f) all   obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect   of any Mandatorily Redeemable Stock issued by such Person or any other Person, valued at the greater of   its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; (g) all obligations of   such Person in respect of any purchase obligation, repurchase obligation, takeout commitment or forward   equity commitment, in each case evidenced by a binding agreement (excluding any such obligation to the   extent the obligation can be satisfied by the issuance of Capital Stock (other than Mandatorily Redeemable   Stock)); (h) net obligations under any Swap Contract (which shall be deemed to have an amount equal to   the Swap Termination Value thereof at such time but in no event shall be less than zero); (i) all Indebtedness   of other Persons which such Person has Guaranteed or is otherwise recourse to such Person (except for   guaranties of customary exceptions for fraud, misapplication of funds, environmental indemnities,   voluntary bankruptcy, collusive involuntary bankruptcy and other similar exceptions to non-recourse   liability); (j) all Indebtedness of another Person secured by (or for which the holder of such Indebtedness   has an existing right, contingent or otherwise, to be secured by) any Lien on property or assets owned by   such Person, even though such Person has not assumed or become liable for the payment of such   Indebtedness or other payment obligation; and (k) such Person’s Ownership Share of the Indebtedness of   any Unconsolidated Affiliate of such Person.  Indebtedness of any Person shall include Indebtedness of any   partnership or joint venture in which such Person is a general partner or joint venturer to the extent of such   Person’s Ownership Share of such partnership or joint venture (except if such Indebtedness, or portion   thereof, is recourse to such Person, in which case the greater of such Person’s Ownership Share of such   Indebtedness or the amount of the recourse portion of the Indebtedness, shall be included as Indebtedness   of such Person).   “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to   any payment made by or on account of any obligation of any Credit Party under any Credit Document and   (b) to the extent not otherwise described in (a), Other Taxes.     

 

   22   “Indemnitee” means as defined in Section 11.2(b).    “Index Rate Determination Date” means the Effective Date and the first Business Day of each   calendar month thereafter; provided, however, that, solely for purposes of the definition of Base Rate, Index   Rate Determination Date means the date of determination of the Base Rate.   “Initial Revolving Maturity Date” means as defined in the definition of “Revolving Maturity Date”   contained in this Section 1.1.   “Intellectual Property” means all trademarks, service marks, trade names, copyrights, patents,   patent rights, franchises related to intellectual property, licenses related to intellectual property and other   intellectual property rights.   “Interest Payment Date” means with respect to (a) any Base Rate Loan and any Adjusted LIBOR   Rate Loan, the last Business Day of each calendar month; and (b) any Swingline Loan, the date on which   repayment of such Swingline Loan was due.    “Interest Period” means, in connection with an Adjusted LIBOR Rate Loan, an interest period of   one (1), two (2), three (3) or six (6) months, as selected by the Borrower in the applicable Funding Notice   or Conversion/Continuation Notice, (i) initially, commencing on the Credit Date (or, with respect to the   Term Loan, the Effective Date) or Conversion/Continuation Date thereof, as the case may be; and (ii)   thereafter, commencing on the day on which the immediately preceding Interest Period expires; provided,   (a) if an Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period   shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in   which case such Interest Period shall expire on the immediately preceding Business Day; (b) any Interest   Period that begins on the last Business Day of a calendar month (or on a day for which there is no   numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the   last Business Day of a calendar month; (c) no Interest Period with respect to any portion of the Revolving   Loans shall extend beyond the Revolving Commitment Termination Date; and (d) no Interest Period with   respect to the outstanding portion of the Term Loan shall extend beyond the Term Maturity Date.   “Interest Rate Determination Date” means, with respect to any Interest Period, the date that is two   (2) Business Days prior to the first day of such Interest Period.   “Internal Revenue Code” means the Internal Revenue Code of 1986.    “Investment” means, as to any Person, any direct or indirect acquisition or investment by such   Person, whether by means of (a) the purchase or other acquisition of Capital Stock of another Person, (b) a   loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition   of any other debt or equity participation or interest in, another Person, including any partnership or joint   venture interest in such other Person and any arrangement pursuant to which the investor Guarantees   Indebtedness of such other Person, or (c) an Acquisition.  For purposes of covenant compliance, the amount   of any Investment shall be the amount actually invested plus the cost of all additions thereto, minus   repayment of or returns on such Investment, without adjustment for subsequent increases or decreases in   the value of such Investment.   “Investment Grade Pricing Grid” means the “Investment Grade Pricing Grid” as defined and   otherwise detailed in the definition of Applicable Margin.   “Investment Grade Rating” means a Credit Rating of BBB-/Baa3/BBB- (or the equivalent) or   higher from a Rating Agency.       

 

   23   “Involuntary Disposition” means the receipt by the Borrower or any of its Subsidiaries of any cash   insurance proceeds or condemnation awards payable by reason of theft, loss, physical destruction or   damage, taking or similar event with respect to any of its Property.    “IRS” means the United States Internal Revenue Service.   “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998”   published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as   may be in effect at the time of issuance of such Letter of Credit).   “Issuance Notice” means an Issuance Notice substantially in the form of Exhibit 2.3.   “Issuing Bank” means KeyBank, in its capacity as issuer of Letters of Credit hereunder, together   with its successors and permitted assigns.   “Joint Venture Entity” shall mean a Subsidiary of the Borrower which is not a Wholly Owned   Subsidiary but which is consolidated with the Borrower and as to which the full financial, sale and other   major decision making powers are controlled by the Borrower.   “KeyBank” means KeyBank National Association, together with any successor in interest thereto.   “Lead Arrangers” means, singly and collectively, (i) KeyBanc Capital Markets, Inc., (ii) BMO   Capital Markets, and (iii) Citizens Bank, N.A.   “Lender” means each Revolving Lender and each Term Lender. The Lenders as of the Effective   Date are identified on the signature pages hereto and are set forth on Appendix A.   “Letter of Credit” means any letter of credit issued hereunder.   “Letter of Credit Fees” means as defined in Section 2.10(c)(i).   “Letter of Credit Borrowing” means any Credit Extension resulting from a drawing under any   Letter of Credit that has not been reimbursed or refinanced as a Borrowing of Revolving Loans.   “Letter of Credit Obligations” means, at any time, the sum of (a) the maximum amount available   to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for   drawings referenced therein, plus (b) the aggregate amount of all drawings under Letters of Credit that have   not been reimbursed by the Borrower, including Letter of Credit Borrowings.  For all purposes of this   Agreement, (i) amounts available to be drawn under Letters of Credit will be calculated as provided in   Section 1.3(i), and (ii) if a Letter of Credit has expired by its terms but any amount may still be drawn   thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be   “outstanding” in the amount so remaining available to be drawn.   “Letter of Credit Sublimit” means, as of any date of determination, the lesser of (i) ten percent   (10%) of the Aggregate Revolving Commitments and (ii) the aggregate Available Commitments then in   effect.   “LIBOR Index Rate” means, for any interest rate calculation with respect to a Base Rate Loan on   any date, (a) the rate per annum (rounded upward to the next whole multiple of one one-hundredth of one   percent (1/100 of 1%)) equal to the rate determined by the Administrative Agent to be the offered rate   which appears on the page of Reuters Screen LIBOR01 Page or any successor thereto approved by the     

 

   24   Administrative Agent if such page no longer reports such rate for deposits (for delivery on the first day of   such period) with a term of one month commencing that day in Dollars, determined two Business Days   prior to such date as of approximately 11:00 a.m. (London, England time) on such day, or (b) in the event   the rate referenced in the preceding clause (a) does not appear on such page or service or if such page or   service shall cease to be available, the rate per annum (rounded upward to the next whole multiple of one   one-hundredth of one percent (1/100 of 1%)) equal to the rate determined by the Administrative Agent to   be the offered rate on such other page or other service which displays an average rate for deposits (for   delivery on the first day of such period) with a term of one month in Dollars, determined two (2) Business   Days prior to such date as of approximately 11:00 a.m. (London, England time) on such day, or (c) in the   event the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum (rounded   upward to the next whole multiple of one one-hundredth of one percent (1/100 of 1%)) equal to quotation   rate (or the arithmetic mean of rates) offered to first class banks in the London interbank market for deposits   (for delivery on the first day of the relevant period) in Dollars of amounts in same day funds comparable to   the principal amount of the applicable Loan of KeyBank or any other Lender selected by the Administrative   Agent, for which the  LIBOR Index Rate is then being determined with maturities comparable to such   period as of approximately 11:00 a.m. (London, England time); provided that if  the foregoing rate shall be   less than zero percent, the LIBOR Index Rate shall be deemed to be  zero percent for the purposes of this   Agreement.   “LIBOR Index Rate Loan” means any Loan bearing interest based on the LIBOR Index Rate.   “LIBOR Loan” means Adjusted LIBOR Rate Loans or LIBOR Index Rate Loans, as applicable.   “Lien” means (i) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance   of any kind (including any agreement to give any of the foregoing, any conditional sale or other title   retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential   arrangement having the practical effect of any of the foregoing, and (ii) in the case of Securities, any   purchase option, call or similar right of a third party with respect to such Securities.   “Loan” means any Revolving Loan, Swingline Loan, or the Term Loan, in each case as the context   may require, and the Base Rate Loans and LIBOR Loans comprising such Loans.   “Mandatorily Redeemable Stock” means, with respect to any Person, any Capital Stock of such   Person which by the terms of such Capital Stock (or by the terms of any security into which it is convertible   or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (a) matures   or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than Capital Stock   which is redeemable solely in exchange for common stock or other equivalent common Capital Stock), (b)   is convertible into or exchangeable or exercisable for Indebtedness or Mandatorily Redeemable Stock, or   (c) is redeemable at the option of the holder thereof, in whole or in part (other than Capital Stock which is   redeemable solely in exchange for common stock or other equivalent common Capital Stock); in each case,   on or prior to the date on which all of the Obligations are scheduled to be due and payable in full.   “Margin Stock” means as defined in Regulation U of the FRB as in effect from time to time.   “Master Agreement” means as defined in the definition of “Swap Contract” contained in this   Section 1.1.   “Material Acquisition” means (a) a single transaction for the purpose of or resulting, directly or   indirectly, in an Acquisition (including the acquisition of assets of any Person whose equity interests are   acquired) by one or more of the Borrower and its Subsidiaries of properties or assets of a Person for a gross   purchase price equal to or in excess of 10% of Total Asset Value (without giving effect to such Acquisition)     

 

   25   or (b) one or more transactions for the purpose of or resulting, directly or indirectly, in an Acquisition   (including the acquisition of assets of any Person whose equity interests are acquired) by one or more of   the Borrower and its Subsidiaries of properties or assets of a Person in any two consecutive fiscal quarters   for an aggregate gross purchase price equal to or in excess of 10% of Total Asset Value (without giving   effect to such Acquisitions).   “Material Adverse Effect” means any effect, event, condition, action, omission, change or state of   facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a   material adverse effect with respect to (i) the business, operations, properties, assets, or financial condition   of the Parent, the Borrower and their Subsidiaries taken as a whole; (ii) the ability of the Credit Parties,   taken as a whole, to fully and timely perform the Obligations; (iii) the legality, validity, binding effect, or   enforceability against a Credit Party of any Credit Document to which it is a party; or (iv) the rights,   remedies and benefits available to, or conferred upon, the Administrative Agent and any Lender or any   holder of Obligations under any Credit Document.    “Material Contract” means any Contractual Obligation to which the Parent, the Borrower or any of   their Subsidiaries, or any of their respective assets, are bound (other than those evidenced by the Credit   Documents) for which breach, nonperformance, cancellation or failure to renew could reasonably be   expected to have a Material Adverse Effect.   “Material Lease” means any Tenant Lease which, individually or when aggregated with all other   leases at such Unencumbered Pool Property with the same Tenant or any Affiliate of such Tenant, demises   either (x) 15,000 square feet or more or (y) 50% or more of such Unencumbered Pool Property’s gross   leasable area.  For purposes of determining whether a Tenant Lease which is a “pad” or “ground lease” is   a Material Lease under the foregoing clause (B), the gross leasable area of any building to be used by the   tenant shall be considered and not the surface land area to be leased pursuant to such Tenant Lease.   “Material Subsidiaries” means (i) all Subsidiaries of the Borrower that own a direct or indirect   interest in the Unencumbered Pool Properties included in the definition of Aggregate Unencumbered Pool   Property Value Amount, (ii) all Subsidiaries of the Borrower that guarantee any other Unsecured   Indebtedness of the Borrower or the Parent, and (iii) all Subsidiaries that own assets that account for greater   than five percent (5%) of Total Asset Value.   “Medicaid” means the medical assistance programs administered by state agencies and approved   by CMS pursuant to the terms of Title XIX of the Social Security Act, codified at 42 U.S.C. §§1396 et seq.   and related regulations.   “Medical Office Properties” means each Property which is fully developed and operational for use   primarily as a medical office building or an office building used for ancillary or support services for another   Healthcare Facility.   “Medical Services” means medical and health care services provided to a Person, including, but   not limited to, medical and health care services provided to a Person which are covered by a policy of   insurance, and includes, without limitation, physician services, nurse and therapist services, dental services,   hospital services, skilled nursing facility services, comprehensive outpatient rehabilitation services, home   health care services, residential and out-patient behavioral healthcare services, and medicine or health care   equipment provided to a Person for a necessary or specifically requested valid and proper medical or health   purpose.     

 

   26   “Medicare” means the program of health benefits for the aged and disabled administered by CMS   pursuant to the terms of Title XVIII of the Social Security Act, codified at 42 U.S.C. §§1395 et seq. and   related regulations.   “Moody’s” means Moody’s Investor Services, Inc., together with its successors.    “Mortgage Receivables” means any loan receivables or similar contracts or arrangements for the   payment of money, whether senior or subordinated (in right of payment or otherwise), the obligations under   which are secured or backed by commercial real estate, which loan receivables may include commercial   mortgage pass-through certificates and commercial mortgage-backed bonds or similar securities and the   commercial mortgage loans and properties underlying or backing them, or whole loans, whether senior or   subordinated (in right of payment or otherwise), secured by commercial real estate.   “Multiemployer Plan” means any “multiemployer plan” as defined in Section 3(37) of ERISA   which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party   or any of its ERISA Affiliates or with respect to which any Credit Party or any of its ERISA Affiliates   previously sponsored, maintained or contributed to or was required to contributed to, and still has liability.   “Negative Pledge” means any agreement (other than this Agreement or any other Credit Document)   that in whole or in part prohibits the creation of any Lien on any assets of a Person; provided, however, that   an agreement that establishes a maximum ratio of unsecured debt to unencumbered assets, or of secured   debt to total assets, or that otherwise conditions a Person’s ability to encumber its assets upon the   maintenance of one or more specified ratios that limit such Person’s ability to encumber its assets but that   do not generally prohibit the encumbrance of its assets, or the encumbrance of specific assets, shall not   constitute a “Negative Pledge” for purposes of this Agreement.   “Net Cash Proceeds” means the aggregate proceeds paid in cash or Cash Equivalents received by   any member of the Consolidated Group in connection with any Equity Issuance, net of (a) direct costs   incurred in connection therewith (including legal, accounting and investment banking fees and expenses,   sales commissions and underwriting discounts), and (b) estimated taxes paid or payable (including sales,   use or other transactional taxes and any net marginal increase in income taxes) as a result thereof.  For   purposes hereof, “Net Cash Proceeds” includes any cash or Cash Equivalents received upon the disposition   of any non-cash consideration received by any member of the Consolidated Group in connection with any   Equity Issuance from and after the date of such disposition of such non-cash consideration.   “Net Operating Income” or “NOI” means, for any Real Estate Asset and for a given period, an   amount equal to the sum of (a) the gross revenues for such Real Estate Asset for such fiscal period received   in the ordinary course of business (excluding pre-paid rents and revenues and security deposits except to   the extent applied in satisfaction of Tenants’ obligations for rent), minus (b) all operating expenses incurred   with respect to such Real Estate Asset for such fiscal period (including an appropriate accrual for property   taxes, insurance and other expenses not paid quarterly, but excluding debt service charges, income taxes,   depreciation, amortization and other non-cash expenses), including a management fee equal to the greater   of 4.0% or actual, minus, without duplication of the foregoing, applicable rental payments made by the   applicable Unencumbered Property Owner, including with respect to any Eligible Ground Lease relating to   such Real Estate Asset.   “Non-Consenting Lender” means any Lender that does not approve any consent, waiver or   amendment that (i) requires the approval of all Lenders or all affected Lenders in accordance with the terms   of Sections 11.4(b) or (c) and (ii) has been approved by the Required Lenders (or all other Lenders, in the   case of any such consent, waiver or amendment that requires the approval of all Lenders) (other than, in   each case, any Defaulting Lender).     

 

   27   “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such   time.   “Non-Recourse Indebtedness” means, for any Person, any Indebtedness of such Person for the   repayment of which such Person has no personal liability (other than for Customary Recourse Exceptions)   and/or with respect to which recourse of the applicable holder of such Indebtedness for non-payment is   limited to such holder’s Liens on a particular asset or group of assets (other than for Customary Recourse   Exceptions).   “Note” means a Revolving Loan Note, Term Note or a Swingline Note.   “Notice” means a Funding Notice, an Issuance Notice or a Conversion/Continuation Notice.   “Obligations” means, with respect to each Credit Party, all advances to, and debts, liabilities,   obligations, covenants and duties of, any Credit Party arising under any Credit Document or otherwise with   respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption),   absolute or contingent, due or to become due, now existing or hereafter arising and including interest and   fees that accrue after the commencement by or against any Credit Party or any Affiliate thereof of any   proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless   of whether such interest and fees are allowed claims in such proceeding.  The foregoing shall also include   (a) all obligations under any Swap Contract between any Credit Party and any Swap Bank that is permitted   to be incurred pursuant to Section 8.1(f) and (b) all obligations under any Treasury Management Agreement   between any Credit Party and any Treasury Management Bank; provided, however, that the “Obligations”   of a Credit Party shall exclude any Excluded Swap Obligations with respect to such Credit Party.   “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.   “Off-Balance Sheet Obligation” means the monetary obligation of a Person under (a) a Synthetic   Lease or similar off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of   property creating obligations that do not appear on the balance sheet of such Person but which, upon the   insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person   (without regard to accounting treatment).   “Organizational Documents” means (a) with respect to any corporation, its certificate or articles of   incorporation or organization, as amended, and its by-laws, as amended, (b) with respect to any limited   partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended,   (c) with respect to any general partnership, its partnership agreement, as amended, and (d) with respect to   any limited liability company, its articles of organization, certificate of formation or comparable documents,   as amended, and its operating agreement, as amended.  In the event any term or condition of this Agreement   or any other Credit Document requires any Organizational Document to be certified by a secretary of state   or similar governmental official, the reference to any such “Organizational Document” shall only be to a   document of a type customarily certified by such governmental official.   “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a   present or former connection between such Recipient and the jurisdiction imposing such Tax (other than   connections arising from such Recipient having executed, delivered, become a party to, performed its   obligations under, received payments under, received or perfected a security interest under, engaged in any   other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan   or Credit Document).     

 

   28   “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing   or similar Taxes that arise from any payment made under, from the execution, delivery, performance,   enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with   respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with   respect to an assignment (other than an assignment made pursuant to Section 2.17).   “Outstanding Amount” means (a) with respect to Revolving Loans and Swingline Loans on any   date, the aggregate outstanding principal amount thereof after giving effect to any Borrowings and   prepayments or repayments of Revolving Loans and Swingline Loans, as the case may be, occurring on   such date; and (b) with respect to any Letter of Credit Obligations on any date, the aggregate outstanding   amount of such Letter of Credit Obligations on such date after giving effect to any Credit Extension of a   Letter of Credit occurring on such date and any other changes in the amount of the Letter of Credit   Obligations as of such date, including as a result of any reimbursements by the Borrower of any drawing   under any Letter of Credit.   “Ownership Share” means the percentage of the Capital Stock owned by a Consolidated Party in   an Unconsolidated Affiliate accounted for pursuant to the equity method of accounting under GAAP.   “Parent” means as provided in the introductory paragraph to this Agreement.   “Participant” means as defined in Section 11.5(d).   “Participant Register” means as defined in Section 11.5(d).   “Patriot Act” means as defined in Section 6.15(f).   “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.   “Pension Plan” means any “employee pension benefit plan” as defined in Section 3(2) of ERISA   other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section   302 of ERISA and which is sponsored, maintained or contributed to by, or required to be contributed to by,   any Credit Party or any of its ERISA Affiliates or with respect to which any Credit Party or any of its   ERISA Affiliates previously sponsored, maintained or contributed to, or was required to contribute to, and   still has liability.   “Permitted Liens” means each of the Liens permitted pursuant to Section 8.2.   “Permitted Refinancing” means any extension, renewal or replacement of any existing   Indebtedness so long as any such renewal, refinancing and extension of such Indebtedness (a) has market   terms and conditions, (b) has an average life to maturity that is greater than that of the Indebtedness being   extended, renewed or refinanced, (c) does not include an obligor that was not an obligor with respect to the   Indebtedness being extended, renewed or refinanced, (d) remains subordinated, if the Indebtedness being   refinanced or extended was subordinated to the prior payment of the Obligations, such extended, renewed   or refinanced Indebtedness, (e) does not exceed in a principal amount the Indebtedness being renewed,   extended or refinanced plus reasonable fees and expenses incurred in connection therewith, and (f) is not   incurred, created or assumed, if any Default or Event of Default has occurred and continues to exist or   would result therefrom.   “Person” means any natural person, corporation, limited liability company, trust, joint venture,   association, company, partnership, Governmental Authority or other entity.     

 

   29   “Preferred Dividends” means, for any given period and without duplication, all Restricted   Payments accrued or paid (and in the case of Restricted Payments paid, which were not accrued during a   prior period) during such period on Preferred Stock issued by a Credit Party or a Subsidiary.  Preferred   Dividends shall not include dividends or distributions paid or payable (a) solely in Capital Stock (other than   Mandatorily Redeemable Stock) payable to holders of such class of Capital Stock; (b) to the Borrower or a   Subsidiary; or (c) constituting or resulting in the redemption of Preferred Stock, other than scheduled   redemptions not constituting balloon, bullet or similar redemptions in full.   “Preferred Stock” means, with respect to any Person, Capital Stock in such Person which are   entitled to preference or priority over any other Capital Stock in such Person in respect of the payment of   dividends or distribution of assets upon liquidation or both.   “Prepayment Premium” means, (i) with respect to any prepayment of the Term Loan by the   Borrower on or before June 10, 2017, 2.0% of the amount of such prepayment, (ii) with respect to any   prepayment of the Term Loan by the Borrower after June 10, 2017 but on or before June 10, 2018, 1.0% of   the amount of such prepayment, and (iii) with respect to any prepayment of the Term Loan by the Borrower   after June 10, 2018, 0.0%.   “Prime Rate” means the per annum rate which the Administrative Agent publicly announces from   time to time to be its prime lending rate, as in effect from time to time.  The Administrative Agent’s prime   lending rate is a reference rate and does not necessarily represent the lowest or best rate charged to   customers.   “Principal Office” means, for the Administrative Agent, the Swingline Lender and the Issuing   Bank, such Person’s “Principal Office” as set forth on Appendix B, or such other office as it may from time   to time designate in writing to the Borrower and each Lender.   “Property” means an interest of any kind in any property or asset, whether real, personal or mixed,   and whether tangible or intangible.   “Qualified ECP Guarantor” means, at any time, each Credit Party with total assets exceeding   $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity   Exchange Act and can cause another Person to qualify as an “eligible contract participant” at such time   under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.   “Rating Agency” means S&P, Moody’s, or Fitch.   “Real Estate Asset” means, a parcel of real property, together with all improvements (if any)   thereon (including all tangible personal property owned by the person with a fee or leasehold interest in   such real property and used in connection with such fee or leasehold interest in such real property), owned   in fee simple or leased pursuant to a ground lease by any Person; “Real Estate Assets” means a collective   reference to each Real Estate Asset.   “Recipient” means (a) the Administrative Agent, (b) any Lender and (c) the Issuing Bank, as   applicable.   “Recourse Indebtedness” means Indebtedness that is not Non-Recourse Indebtedness; provided   that personal recourse for Customary Recourse Exceptions shall not, by itself, cause such Indebtedness to   be characterized as Recourse Indebtedness.   “Refunded Swingline Loans” as defined in Section 2.2(b)(iii).     

 

   30   “Register” means as defined in Section 11.5(c).   “Reimbursement Date” means as defined in Section 2.3(d).   “REIT” means a real estate investment trust as defined in Sections 856 through 860 of the Internal   Revenue Code.   “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners,   directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of   such Person and of such Person’s Affiliates.   “Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping,   deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the   indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other   closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material   through the air, soil, surface water or groundwater.   “Removal Effective Date” means as defined in Section 10.6(b).   “Rent Coverage Ratio” means, as of any date of determination with respect any Real Estate Asset   to be included as an Unencumbered Pool Property, for the applicable Calculation Period, the ratio, as   calculated by Borrower and approved by Administrative Agent in its sole but reasonable discretion, of (a)   the aggregate sum of Adjusted NOI for such Real Estate Asset to (b) the actual rental payments received   by the Borrower or applicable Unencumbered Property Owner which owns such Real Estate Asset in fee   simple (or leases such Real Estate Asset under an Eligible Ground Lease) with respect to all applicable   Tenant Leases during such applicable Calculation Period.    “Required Lenders” means, as of any date of determination, Lenders having greater than fifty   percent (50%) of the aggregate amount of the unfunded Commitments, the outstanding Loans and the Letter   of Credit Obligations, or, if the Commitments have been terminated, Lenders holding in the aggregate   greater than fifty percent (50%) of the outstanding Loans and Letter of Credit Obligations (including, in   each case, the aggregate amount of each Lender’s risk participation and funded participation in Letter of   Credit Obligations and Swingline Loans); provided that the Commitments of, and the portion of the Loans   and Letter of Credit Obligations held or deemed held by, any Defaulting Lender shall be excluded for   purposes of making a determination of Required Lenders.     “Required Revolving Lenders” means, as of any date of determination, Revolving Lenders having   greater than fifty percent (50%) of the aggregate amount of the unfunded Revolving Commitments, the   outstanding Revolving Loans and the Letter of Credit Obligations, or, if the Revolving Commitments have   been terminated, Revolving Lenders holding in the aggregate greater than fifty percent (50%) of the   outstanding Revolving Loans and Letter of Credit Obligations (including, in each case, the aggregate   amount of each Revolving Lender’s risk participation and funded participation in Letter of Credit   Obligations and Swingline Loans); provided that the Revolving Commitments of, and the portion of the   Revolving Loans and Letter of Credit Obligations held or deemed held by, any Defaulting Lender shall be   excluded for purposes of making a determination of Required Revolving Lenders.   “Required Term Lenders” means, as of any date of determination, Term Lenders having greater   than fifty percent (50%) of the aggregate amount of the outstanding Term Loan; provided that the portion   of the Term Loan held or deemed held by, any Defaulting Lender shall be excluded for purposes of making   a determination of Required Term Lenders.     

 

   31   “Resignation Effective Date” means as defined in Section 10.6(a).   “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other   property) with respect to any Capital Stock of the Parent, the Borrower or any Subsidiary, or any payment   (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of   the purchase, redemption, retirement, acquisition, cancellation or termination of any such Capital Stock or   on account of any return of capital to such Person’s stockholders, partners or members (or the equivalent   Person thereof), or any setting apart of funds or property for any of the foregoing.   “Revolving Commitment” means the commitment of a Revolving Lender to make or otherwise   fund any Revolving Loan and to acquire participations in Letters of Credit and Swingline Loans hereunder   and “Revolving Commitments” means such commitments of all Revolving Lenders in the aggregate.  The   amount of each Revolving Lender’s Revolving Commitment, if any, is set forth on Appendix A or in the   applicable Assignment Agreement, subject to any increase, adjustment or reduction pursuant to the terms   and conditions hereof.  The aggregate amount of the Revolving Commitments as of the Effective Date is   EIGHT HUNDRED FIFTY MILLION DOLLARS ($850,000,000.00).   “Revolving Commitment Percentage” means, for each Revolving Lender, a fraction (expressed as   a percentage carried to the twelfth decimal place), the numerator of which is such Revolving Lender’s   Revolving Commitment and the denominator of which is the Aggregate Revolving Commitments; provided   that if the commitment of each Revolving Lender to make Revolving Loans and the obligation of the Issuing   Bank to issue Letters of Credit have been terminated pursuant to Section 9.2 or if the Aggregate Revolving   Commitments have expired, then the Revolving Commitment Percentage of each Revolving Lender shall   be determined based on the Revolving Commitment Percentage of such Revolving Lender most recently in   effect, giving effect to any subsequent assignments.  The Revolving Commitment Percentages as of the   Effective Date are set forth on Appendix A.  The Revolving Commitment Percentages shall be subject to   adjustment as provided in Section 2.16.   “Revolving Commitment Period” means the period from and including the Effective Date to the   earlier of (a)(i) in the case of Revolving Loans and Swingline Loans, the Revolving Commitment   Termination Date or (ii) in the case of the Letters of Credit, the expiration date thereof, or (b) in each case,   the date on which the Revolving Commitments shall have been terminated as provided herein.   “Revolving Commitment Termination Date” means the earliest to occur of (a) the Revolving   Maturity Date; (b) the date the Revolving Commitments are permanently reduced to zero pursuant to   Section 2.11(b); and (c) the date of the termination of the Revolving Commitments pursuant to Section 9.2.   “Revolving Credit Exposure” means, as to any Revolving Lender at any time, the aggregate   principal amount at such time of its outstanding Revolving Loans and such Revolving Lender’s   participation in Letter of Credit Obligations and Swingline Loans at such time.   “Revolving Lender” means each financial institution with a Revolving Commitment, or if the   Revolving Commitments have been terminated hereunder, each financial institution holding any Revolving   Credit Exposure, together in each instance with its successors and permitted assigns.     “Revolving Loan” means a Loan made by a Lender to the Borrower pursuant to Section 2.1(a).   “Revolving Loan Note” means a promissory note in the form of Exhibit 2.5-1, as it may be   amended, supplemented or otherwise modified from time to time.     

 

   32   “Revolving Maturity Date” means (a) September 18, 2020 (the “Initial Revolving Maturity Date”),   or (b) if the Initial Revolving Maturity Date set forth in the preceding clause (a) is extended pursuant to   Section 2.18, such extended maturity date as determined pursuant to such Section; provided, however, that,   in either case, if such date is not a Business Day, the Revolving Maturity Date shall be the next preceding   Business Day.   “Revolving Obligations” means the Revolving Loans, the Letter of Credit Obligations and the   Swingline Loans.   “Sale and Leaseback Transaction” means, with respect to the Borrower or any Subsidiary, any   arrangement, directly or indirectly, with any Person (other than a Credit Party or an Unencumbered Property   Owner) whereby the Borrower or such Subsidiary shall sell or transfer any property, real or personal, used   or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property   or other property that it intends to use for substantially the same purpose or purposes as the property being   sold or transferred.   “Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the   government of a country, (c) an organization directly or indirectly controlled by a country or its government,   or (d) a person or entity resident in or determined to be resident in a country, that is subject to a country   sanctions program administered and enforced by OFAC, the United Nations Security Council, the European   Union or Her Majesty’s Treasury (including, without limitation, Cuba, Iran, North Korea, Sudan and Syria).   “Sanctioned Person” means a person named on the list of Specially Designated Nationals   maintained by OFAC.   “SEC” means the United States Securities and Exchange Commission.   “S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC   business, and any successor thereto.   “Secured Indebtedness” means, as of any date of determination, that portion of Consolidated Total   Indebtedness which is secured by a Lien on any real property owned or leased by Parent, Borrower or any   Subsidiary or Unconsolidated Affiliate, as applicable.   “Secured Recourse Indebtedness” means any Secured Indebtedness that is also Recourse   Indebtedness.   “Securities” means any stock, shares, partnership interests, limited liability company interests,   voting trust certificates, certificates of interest or participation in any profit-sharing agreement or   arrangement (e.g., stock appreciation rights), options, warrants, bonds, debentures, notes, or other evidences   of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments   commonly known as “securities” or any certificates of interest, shares or participations in temporary or   interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any   of the foregoing.   “Securitization Transaction” means any financing or factoring or similar transaction (or series of   such transactions) entered by the Borrower or any of its Subsidiaries pursuant to which the Borrower or   such Subsidiary may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments,   receivables, rights to future lease payments or residuals or similar rights to payment (the “Securitization   Receivables”) to a special purpose subsidiary or affiliate (a “Securitization Subsidiary”) or any other   Person.     

 

   33   “Shareholder Equity” means, as of any date of determination, consolidated shareholders’ equity of   the Parent and its Subsidiaries as of that date determined in accordance with GAAP.   “Solvent” or “Solvency” means, with respect to any Person as of a particular date, that on such date   (a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments   as they mature in the ordinary course of business, (b) such Person does not intend to, and does not believe   that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature   in their ordinary course, (c) such Person is not engaged in a business or a transaction, and is not about to   engage in a business or a transaction, for which such Person’s property would constitute unreasonably small   capital after giving due consideration to the prevailing practice in the industry in which such Person is   engaged or is to engage, (d) the fair value of the property of such Person is greater than the total amount of   liabilities, including, without limitation, contingent liabilities, of such Person and (e) the present fair salable   value of the assets of such Person is not less than the amount that will be required to pay the probable   liability of such Person on its debts as they become absolute and matured.  In computing the amount of   contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which,   in light of all the facts and circumstances existing at such time, represents the amount that can reasonably   be expected to become an actual or matured liability.   “Specified CMBS Indebtedness” {CONFIRM} means (x) the Indebtedness of (i) Ziegler-Georgia   7, LLC, (ii) Ziegler-Michigan 12, LLC, (iii) Ziegler-Tennessee 14, LLC, (iv) Ziegler-Wisconsin 16, LLC,   (v) DOC-Greymark HQ OKC MOB, LLC, and (vi) DOC-Baylor Mansfield ASC, LLC, as such   Indebtedness is more particularly identified on Schedule 8.1, and (y) the Indebtedness in existence as of the   Effective Date of the following Affiliates:  (i) Sandwich Development Partners, LLC (an Affiliate of   Ziegler-Illinois 12, LLC), (ii) Bath Road Associates, LLC (an Affiliate of Ziegler-Maine 15, LLC), (iii)   Remington Development Partners, LLC (an Affiliate of Ziegler-Illinois 18, LLC), or (iv) Crescent City   Surgical Centre Facility, L.L.C. (an Affiliate of DOC-CCSC Crescent City Surgical Centre, LLC) in each   case to the extent the applicable Affiliate becomes a Wholly-Owned Subsidiary of the Borrower or any   other Credit Party.     “Specified Credit Party” means any Credit Party that is not then an “eligible contract participant”   under the Commodity Exchange Act (determined prior to giving effect to Section 10.11).   “Subordinated Debt” means any Indebtedness of the Borrower or any of its Subsidiaries that by its   terms is expressly subordinated in right of payment to the prior payment of the Obligations under this   Agreement on terms and conditions, and evidenced by documentation, reasonably satisfactory to the   Administrative Agent.   “Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability   company, association, joint venture or other business entity of which more than fifty percent (50%) of the   total voting power of Capital Stock entitled (without regard to the occurrence of any contingency) to vote   in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing   similar functions) having the power to direct or cause the direction of the management and policies thereof   is at the time owned or controlled, directly or indirectly, by that Person; provided, in determining the   percentage of ownership interests of any Person controlled by another Person, no ownership interest in the   nature of a “qualifying share” of the former Person shall be deemed to be outstanding.  Unless otherwise   provided, “Subsidiary” shall refer to a Subsidiary of the Borrower.   “Swap Bank” means (a) any Person that is a Lender or an Affiliate of a Lender at the time that it   becomes a party to a Swap Contract with any Credit Party and (b) any Lender on the Effective Date or   Affiliate of such Lender that is party to a Swap Contract with any Credit Party in existence on the Effective   Date, in each case to the extent permitted by Section 8.1(f).     

 

   34   “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative   transactions, forward rate transactions, commodity swaps, commodity options, forward commodity   contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or   forward bond or forward bond price or forward bond index transactions, interest rate options, forward   foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap   transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar   transactions or any combination of any of the foregoing (including any options to enter into any of the   foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b)   any and all transactions of any kind, and the related confirmations, which are subject to the terms and   conditions of, or governed by, any form of master agreement published by the International Swaps and   Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master   agreement (any such master agreement, together with any related schedules, a “Master Agreement”),   including any such obligations or liabilities under any Master Agreement.   “Swap Obligations” means with respect to any Guarantor any obligation to pay or perform under   any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of   the Commodity Exchange Act.   “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into   account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any   date on or after the date such Swap Contracts have been closed out and termination value(s) determined in   accordance therewith, such termination value(s) and (b) for any date prior to the date referenced in clause   (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based   upon one or more mid-market or other readily available quotations provided by any recognized dealer in   such Swap Contracts (which may include a Lender or any Affiliate of a Lender).   “Swingline Lender” means KeyBank in its capacity as Swingline Lender hereunder, together with   its successors and permitted assigns in such capacity.   “Swingline Loan” means a Loan made by the Swingline Lender to the Borrower pursuant to Section   2.2.   “Swingline Note” means a promissory note in the form of Exhibit 2.5-2, as it may be amended,   supplemented or otherwise modified from time to time.   “Swingline Rate” means the Base Rate plus the Applicable Margin applicable to Base Rate Loans.   “Swingline Sublimit” means, at any time of determination, the lesser of (i) ten percent (10%) of   the Aggregate Revolving Commitments and (ii) the aggregate Available Commitments then in effect.   “Synthetic Lease” means a lease transaction under which the parties intend that (i) the lease will be   treated as an “operating lease” by the lessee pursuant to Statement of Financial Accounting Standards No.   13, as amended and (ii) the lessee will be entitled to various tax and other benefits ordinarily available to   owners (as opposed to lessees) of like property.   “Tangible Net Worth” means, as of a given date, (a) the Shareholder Equity of the Parent and its   Subsidiaries determined on a consolidated basis plus (b) accumulated depreciation and amortization   expense minus (c) the following (to the extent reflected in determining Shareholder Equity of the Parent   and its Subsidiaries):  (i) the amount of any write-up in the book value of any assets contained in any balance   sheet resulting from revaluation thereof or any write-up in excess of the cost of such assets acquired, and     

 

   35   (ii) all amounts appearing on the assets side of any such balance sheet for assets which would be classified   as “goodwill” under GAAP, all determined on a consolidated basis.   “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings   (including backup withholding), assessments, fees or other similar charges imposed by any Governmental   Authority, including any interest, additions to tax or penalties applicable thereto.   “Tenant” means any Person who is a lessee with respect to any Tenant Lease held by an   Unencumbered Property Owner as lessor or as an assignee of the lessor thereunder.   “Tenant Lease” means any lease, letting, license, concession or other agreement (whether written   or oral) pursuant to which any Person (other than a Credit Party or an Unencumbered Property Owner) is   granted a possessory interest in, or right to use or occupy all or any portion of, any Unencumbered Pool   Property (provided, the term “Tenant Lease” shall not include any lease, sublease, sub-sublease, letting,   license, concession or other agreement with respect to any residential unit in a multi-family residential Real   Estate Asset), and every modification, amendment or other agreement relating to such lease, sublease, sub-   sublease, or other agreement entered into in connection with such lease, sublease, sub-sublease, or other   agreement, and every guarantee of the performance and observance of the covenants, conditions and   agreements to be performed and observed by such Person under any such lease, sublease, sub-sublease,   letting, license, concession or other agreement.   “Termination Date” means as defined in the lead-in to Section 7.   “Term Commitment” means, with respect to each Term Lender, the commitment of such Term   Lender to make its portion of the Term Loan to the Borrower on the Effective Date in an aggregate principal   amount not exceeding the amount set forth with respect to such Term Lender on Appendix A. The aggregate   amount of the Term Commitments as of the Effective Date is TWO HUNDRED FIFTY MILLION   DOLLARS ($250,000,000.00).   “Term Lender” means each financial institution holding any portion of the Term Loan, together   with its successors and permitted assigns.   “Term Loan” has the meaning set forth in Section 2.1(c) hereof.   “Term Maturity Date” means June 10, 2023.   “Term Note” means a promissory note in the form of Exhibit 2.5-3, as it may be amended,   supplemented or otherwise modified from time to time.   “Total Asset Value” means, as of any date of determination, the sum of the following, without   duplication, of the Consolidated Parties for the Fiscal Quarter then most recently ended: (a) the real estate   property values of all Real Estate Assets as determined by acquisition cost, plus (b) unrestricted cash and   Cash Equivalents as of the last day of such Fiscal Quarter, plus (c) the GAAP book value of land holdings   as of the last day of such Fiscal Quarter, plus (d) the GAAP book value of the actual funded portion of   Construction-in-Progress as of the last day of such Fiscal Quarter, plus (e) the GAAP book value of   Unencumbered Mortgage Receivables as of the last day of such Fiscal Quarter, plus (f) the Ownership   Share of any Consolidated Party of items (a) through (e) above attributable to Unconsolidated Affiliates  as   of the last day of such Fiscal Quarter; subject at all times, however, to the provisions of Section 8.6(j).    “Treasury Management Agreement” means any agreement governing the provision of treasury or   cash management services, including deposit accounts, funds transfer, automated clearinghouse,     

 

   36   commercial credit cards, purchasing cards, cardless e-payable services, debit cards, stored value cards, zero   balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation   and reporting and trade finance services.   “Treasury Management Bank” means (a) any Person that is a Lender or an Affiliate of a Lender at   the time that it becomes a party to a Treasury Management Agreement with any Credit Party and (b) any   Lender on the Effective Date or Affiliate of such Lender that is a party to a Treasury Management   Agreement with any Credit Party in existence on the Effective Date.   “Type of Loan” means a Base Rate Loan or a LIBOR Loan.   “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect   in the State of New York (or any other applicable jurisdiction, as the context may require).   “Unconsolidated Affiliate” means any corporation, partnership, association, joint venture or other   entity in each case which is not a Consolidated Party and in which a Consolidated Party owns, directly or   indirectly, any Capital Stock.   “Unencumbered Debt Service Coverage Ratio” means, as of any date of determination, for the   applicable Calculation Period, the ratio, as calculated by Borrower and approved by Administrative Agent   in its sole but reasonable discretion, of (a) the aggregate sum of Adjusted NOI for the Unencumbered Pool   Properties to (b) the actual Consolidated Unsecured Interest Charges payable under the Consolidated Total   Unsecured Indebtedness during such applicable Calculation Period.   “Unencumbered Mortgage Receivables” means, with respect to any Person, Mortgage Receivables   owned or held by such Person that are not pledged as collateral for, or otherwise subject to a Lien as security   for, any Indebtedness.   “Unencumbered Pool Property” means a Real Estate Asset which, as of any date of determination,   is included as an “Unencumbered Pool Property” on the most recent Borrowing Base Certificate and   satisfies all of the following requirements:     (a) such Real Estate Asset (a) is 100% (i) owned in fee simple or (ii) leased pursuant to an   Eligible Ground Lease by (x) the Borrower or (y) an Unencumbered Property Owner that is (1) a Domestic   Subsidiary and (2) a Wholly-Owned Subsidiary or Joint Venture Entity of the Borrower and (b) is located   in a state in the United States or the District of Columbia;    (b)  such Real Estate Asset is not subject to any Lien (other than a Permitted Lien (with the   exception of a Permitted Lien described in Section 8.2(l))) or any Negative Pledge (other than pursuant to   an Eligible Ground Lease);    (c) such Real Estate Asset is free of all material mechanical and structural defects, or other   adverse matters except for defects, conditions or matters individually or collectively which are not material   to the profitable operation of such Real Estate Asset;   (d) such Real Estate Asset is a Healthcare Facility that has been fully developed, is operational   and is well located within a primary or secondary market and is maintaining a stable current income;    (e) to the extent managed by a third-party property manager, the applicable property manager   with respect to such Real Estate Asset is an Approved Manager, and such Real Estate Asset is being     

 

   37   managed pursuant to a management agreement with such Approved Manager in form and substance   reasonably acceptable to the Administrative Agent;    (f) no principal or interest payment, payments of real property taxes (except taxes which are   being contested in good faith and for which adequate reserves have been established in accordance with   GAAP) or payments of premiums on insurance policies payable to the applicable Unencumbered Property   Owner with respect to such Real Estate Asset is past due beyond the applicable grace period with respect   thereto, if any;     (g) no required rental payment from any tenant under a Material Lease with respect to such   Real Estate Asset is past due more than sixty (60) days beyond the applicable grace period with respect   thereto, if any;   (h) no Tenant under any Material Lease with respect to such Real Estate Asset is then subject   to a Bankruptcy Event;    (i) no material event of default (after the expiration of any applicable notice and/or cure   period) has occurred and is then continuing under any Material Lease applicable to such Real Estate Asset;    (j) no condemnation or condemnation proceeding shall have been instituted (and remain   undismissed for a period of ninety (90) consecutive days), in each case, with respect to a material portion   of the Real Estate Asset which would impair in any material manner the continued operations of such Real   Estate Asset;   (k) no material casualty event shall have occurred with respect to the improvements located   on such Real Estate Asset which is not able to be fully remediated with available insurance proceeds and/or   funds the Borrower or the applicable Unencumbered Property Owner has put into escrow;   (l) no Hazardous Materials are located on or under such Real Estate Asset and no other   environmental conditions exist in connection with such Real Estate Asset which constitute a material   violation of any Environmental Law;    (m) such Real Estate Asset, as of such date of determination, shall satisfy the Unencumbered   Pool Property Specified Tenant Lease Requirements; and   (n) Borrower has proposed such Real Estate Asset to the Administrative Agent and Lenders in   writing and has provided the Administrative Agent a new Unencumbered Pool Report showing, on a pro   forma basis, the effect on the Unencumbered Pool of the addition of such Real Estate Asset to the   Unencumbered Pool and such other documentation as may be reasonably required by this Agreement.    “Unencumbered Pool Property Specified Tenant Lease Requirements” means, as of any date of   determination, with respect to each Unencumbered Pool Property (or any Real Estate Asset proposed by   Borrower to be added as an Unencumbered Pool Property hereunder), which is either (i) a long term acute   care hospital facility or (ii) a rehabilitation facility, at the time such Real Estate Asset is being added as an   Unencumbered Pool Property (whether on the Effective Date or under Section 8.17 hereof), the Rent   Coverage Ratio shall be greater than or equal to 1.50 to 1.00.   “Unencumbered Pool Property Value” means, as of any date of determination with respect to any   Unencumbered Pool Property, the value of the subject Real Estate Asset based upon a valuation determined,   for the applicable Calculation Period, (a) for the first eighteen (18) months following the acquisition by the   Borrower or any Subsidiary of such Real Estate Asset, such value based upon a valuation which is     

 

   38   determined by using the un-depreciated book value cost in accordance with GAAP, and (b) thereafter by   dividing (x) Adjusted NOI by (y) the applicable Capitalization Rate based on the type of Real Estate Asset   during such applicable Calculation Period, as determined by Borrower (subject to any restatement of or   other adjustment to the financial statements of the Borrower or for any other reason) and approved by   Administrative Agent from time to time in its sole but reasonable discretion.   “Unencumbered Property Owner” means each Person that owns a Real Estate Asset which is or is   proposed to be an Unencumbered Pool Property and which is (1) a Domestic Subsidiary and (2) a Wholly-   Owned Subsidiary of the Borrower.   “Unimproved Land” means any Real Estate Asset consisting solely of unimproved land on which   no construction or general development activity has commenced, but which is zoned for its intended use   and is otherwise suitable for future development as a Healthcare Facility; provided, the term “Unimproved   Land” shall not include any pad, out-parcel or similar separate parcel included in or adjacent to and part of   a larger development of real property comprising any other Real Estate Asset (unless such other Real Estate   Asset is Unimproved Land).   “United States” or “U.S.” means the United States of America.   “Unsecured Indebtedness” means, for any Person, any Indebtedness of such Person that is not   secured by a Lien.    “U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30)   of the Internal Revenue Code.   “U.S. Tax Compliance Certificate” means as defined in Section 3.3(f).   “Wholly-Owned Subsidiary” means, with respect to any direct or indirect Subsidiary of any Person,   that 100% of the Equity Interests with ordinary voting power issued by such Subsidiary (other than   directors’ qualifying shares and investments by foreign nationals mandated by Applicable Laws) is   beneficially owned, directly or indirectly, by such Person.   “Withholding Agent” means any Credit Party and the Administrative Agent.   “Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the   write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In   Legislation for the applicable EEA Member Country, which writedown and conversion powers are   described in the EU Bail-In Legislation Schedule.   “Ziegler-Florida 4” means Ziegler-Florida 4, LLC, a Wisconsin limited liability company.    Section 1.2 Accounting Terms.   (a) Except as otherwise expressly provided herein, all accounting terms not otherwise defined   herein shall have the meanings assigned to them in conformity with GAAP.  Financial statements and other   information required to be delivered by the Borrower to the Lenders pursuant to clauses (a), (b), (c) and (d)   of Section 7.1 shall be prepared in accordance with GAAP as in effect at the time of such preparation (and   delivered together with the reconciliation statements provided for in Section 7.1(g), if applicable).  If at any   time any change in GAAP or in the consistent application thereof would affect the computation of any   financial covenant or requirement set forth in any Credit Document, and either the Borrower or the Required   Lenders shall object in writing to determining compliance based on such change, then the Lenders and     

 

   39   Borrower shall negotiate in good faith to amend such financial covenant, requirement or applicable defined   terms to preserve the original intent thereof in light of such change to GAAP, provided that, until so   amended such computations shall continue to be made on a basis consistent with the most recent financial   statements delivered pursuant to clauses (a), (b), (c) and (d) of Section 7.1 as to which no such objection   has been made.   (b) FASB ASC 825 and FASB ASC 470-20.  Notwithstanding the above, for purposes of   determining compliance with any covenant (including the computation of any financial covenant) contained   herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the   outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on   financial liabilities shall be disregarded.   Section 1.3 Rules of Interpretation.   (a) The definitions of terms herein shall apply equally to the singular and plural forms   of the terms defined.  Whenever the context may require, any pronoun shall include the   corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and   “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will”   shall be construed to have the same meaning and effect as the word “shall”.  Unless the context   requires otherwise, (i) any definition of or reference to any agreement, instrument or other   document shall be construed as referring to such agreement, instrument or other document as from   time to time amended, supplemented or otherwise modified (subject to any restrictions on such   amendments, supplements or modifications set forth herein or in any other Credit Document), (ii)   any reference herein to any Person shall be construed to include such Person’s successors and   permitted assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import   when used in any Credit Document, shall be construed to refer to such Credit Document in its   entirety and not to any particular provision thereof, (iv) all references in a Credit Document to   Sections, Exhibits, Appendices and Schedules shall be construed to refer to Sections of, and   Exhibits, Appendices and Schedules to, the Credit Document in which such references appear, (v)   any reference to any law or regulation shall, unless otherwise specified, refer to such law or   regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and   “property” shall be construed to have the same meaning and effect and to refer to any and all   tangible and intangible assets and properties, including cash, securities, accounts and contract   rights.   (b) The terms lease and license shall include sub-lease and sub-license.   (c) All terms not specifically defined herein or by GAAP, which terms are defined in   the UCC, shall have the meanings assigned to them in the UCC of the relevant jurisdiction, with   the term “instrument” being that defined under Article 9 of the UCC of such jurisdiction.   (d) Unless otherwise expressly indicated, in the computation of periods of time from   a specified date to a later specified date, the word “from” means “from and including”, the words   “to” and “until” each mean “to but excluding”, and the word “through” means “to and including”.   (e) To the extent that any of the representations and warranties contained in Section 6   under this Agreement or in any of the other Credit Documents is qualified by “Material Adverse   Effect”, the qualifier “in all material respects” contained in Section 5.2(c) and the qualifier “in any   material respect” contained in Section 9.1(d) shall not apply.     

 

   40   (f) Whenever the phrase “to the knowledge of” or words of similar import relating to   the knowledge of a Person are used herein or in any other Credit Document, such phrase shall mean   and refer to the actual knowledge of the Authorized Officers of such Person.   (g) This Agreement and the other Credit Documents are the result of negotiation   among, and have been reviewed by counsel to, among others, the Administrative Agent and the   Credit Parties, and are the product of discussions and negotiations among all parties.  Accordingly,   this Agreement and the other Credit Documents are not intended to be construed against the   Administrative Agent or any of the Lenders merely on account of the Administrative Agent’s or   any Lender’s involvement in the preparation of such documents.   (h) Unless otherwise indicated, all references to a specific time shall be construed to   Eastern Standard Time or Eastern Daylight Savings Time, as the case may be.  Unless otherwise   expressly provided herein, all references to dollar amounts and “$” shall mean Dollars.   (i) Unless otherwise specified herein, the amount of a Letter of Credit at any time   shall be deemed to be the stated amount of such Letter of Credit in effect at such time (after giving   effect to any permanent reduction in the stated amount of such Letter of Credit pursuant to the terms   of such Letter of Credit); provided, however, that with respect to any Letter of Credit that, by its   terms or the terms of any letter of credit application or other issuer document related thereto,   provides for one or more automatic increases in the stated amount thereof, the amount of such   Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after   giving effect to all such increases, whether or not such maximum stated amount is in effect at such   time.   Section 2 LOANS AND LETTERS OF CREDIT   Section 2.1 Revolving Loans and the Term Loan.   (a) Revolving Loans.  During the Revolving Commitment Period, subject to the terms   and conditions hereof, each Revolving Lender severally agrees to make revolving loans   denominated in U.S. Dollars (each such loan, a “Revolving Loan”) to the Borrower in an aggregate   amount up to but not exceeding such Revolving Lender’s Revolving Commitment; provided, that   after giving effect to the making of any Revolving Loan, in no event shall the Outstanding Amount   of Revolving Obligations exceed the lesser of (i) the Aggregate Revolving Commitments, and (ii)   the Borrowing Base as of such date.  Amounts borrowed pursuant to this Section 2.1(a) may be   repaid and reborrowed without premium or penalty (subject to Section 3.1(c)) during the Revolving   Commitment Period.  The Revolving Loans may consist of Base Rate Loans, Adjusted LIBOR   Rate Loans, or a combination thereof, as the Borrower may request.  Each Revolving Lender’s   Revolving Commitment shall expire on the Revolving Commitment Termination Date and all   Revolving Loans and all other amounts owed hereunder with respect to the Revolving Loans and   the Revolving Commitments shall be paid in full no later than such date.   (b) Mechanics for Revolving Loans.   (i) Except pursuant to Section 2.2(b)(iii), all Revolving Loans shall be made   in an aggregate minimum amount of $500,000 and integral multiples of $100,000 in excess   of that amount.   (ii) Whenever the Borrower desires that the Revolving Lenders make a   Revolving Loan, the Borrower shall deliver to the Administrative Agent a fully executed     

 

   41   and delivered Funding Notice no later than (x) 1:00 p.m. at least three (3) Business Days   in advance of the proposed Credit Date in the case of an Adjusted LIBOR Rate Loan and   (y) 1:00 p.m. at least one (1) Business Day in advance of the proposed Credit Date in the   case of a Loan that is a Base Rate Loan.  Except as otherwise provided herein, any Funding   Notice for any Loans that are Adjusted LIBOR Rate Loans shall be irrevocable on and after   the related Interest Rate Determination Date, and the Borrower shall be bound to make a   borrowing in accordance therewith.   (iii) Notice of receipt of each Funding Notice in respect of each Revolving   Loan, together with the amount of each Revolving Lender’s Revolving Commitment   Percentage thereof, respectively, if any, together with the applicable interest rate, shall be   provided by the Administrative Agent to each applicable Revolving Lender with   reasonable promptness, but (provided the Administrative Agent shall have received such   notice by 1:00 p.m.) not later than 4:00 p.m. on the same day as the Administrative Agent’s   receipt of such notice from the Borrower.   (iv) Each Revolving Lender shall make its Revolving Commitment Percentage   of the requested Revolving Loan available to the Administrative Agent not later than 11:00   a.m. on the applicable Credit Date by wire transfer of same day funds in Dollars, at the   Administrative Agent’s Principal Office.  Except as provided herein, upon satisfaction or   waiver of the applicable conditions precedent specified herein, the Administrative Agent   shall make the proceeds of such Credit Extension available to the Borrower on the   applicable Credit Date by causing an amount of same day funds in Dollars equal to the   proceeds of all Loans received by the Administrative Agent in connection with the Credit   Extension from the Revolving Lenders to be credited to the account of the Borrower at the   Administrative Agent’s Principal Office or such other account as may be designated in   writing to the Administrative Agent by the Borrower.   (c) Term Loan.  Subject to the terms and conditions set forth herein, at any time on or   after the Effective Date but prior to July 11, 2016, each Term Lender severally agrees to make a   loan (collectively, the “Term Loan”) to the Borrower, which Term Loan shall be made in a single   drawing by the Borrower, in an amount up to the amount of such Term Lender’s Term   Commitment. Upon the earlier of the making of the Term Loan or July 11, 2016, the Term   Commitments of the Term Lenders shall be terminated.  Upon repayment or prepayment of the   Term Loan as provided herein, no amount of the Term Loan may be re-borrowed.  Whenever the   Borrower desires that the Term Lenders make the Term Loan, the Borrower shall deliver to the   Administrative Agent a fully executed and delivered Funding Notice no later than (x) 1:00 p.m. at   least three (3) Business Days in advance of the proposed Credit Date in the case of an Adjusted   LIBOR Rate Loan and (y) 1:00 p.m. at least one (1) Business Day in advance of the proposed Credit   Date in the case of a Loan that is a Base Rate Loan.  Except as otherwise provided herein, if the   Funding Notice for the Term Loan is for Adjusted LIBOR Rate Loans same shall be irrevocable   on and after the related Interest Rate Determination Date, and the Borrower shall be bound to make   a borrowing in accordance therewith.  Notice of receipt of the Funding Notice in respect of the   Term Loan, together with the amount of each Term Lender’s pro rata amount thereof, respectively,   if any, together with the applicable interest rate, shall be provided by the Administrative Agent to   each applicable Term Lender with reasonable promptness, but (provided the Administrative Agent   shall have received such notice by 1:00 p.m.) not later than 4:00 p.m. on the same day as the   Administrative Agent’s receipt of such notice from the Borrower.  Each Term Lender shall make   its pro rata amount of the requested Term Loan available to the Administrative Agent not later than   11:00 a.m. on the applicable Credit Date by wire transfer of same day funds in Dollars, at the   Administrative Agent’s Principal Office.  Except as provided herein, upon satisfaction or waiver     

 

   42   of the applicable conditions precedent specified herein, the Administrative Agent shall make the   proceeds of such Credit Extension available to the Borrower on the applicable Credit Date by   causing an amount of same day funds in Dollars equal to the proceeds of all Loans received by the   Administrative Agent in connection with the Credit Extension from the Term Lenders to be credited   to the account of the Borrower at the Administrative Agent’s Principal Office or such other account   as may be designated in writing to the Administrative Agent by the Borrower.  Principal amounts   repaid on the Term Loan may not be reborrowed.   Section 2.2 Swingline Loans.   (a) Swingline Loans Commitments.  During the Revolving Commitment Period and   subject to the terms and conditions hereof, the Swingline Lender may, in its sole discretion, make   Swingline Loans to the Borrower in the aggregate amount up to but not exceeding the Swingline   Sublimit; provided, that after giving effect to the making of any Swingline Loan, in no event shall   the Outstanding Amount of the Revolving Obligations exceed the lesser of (i) the Revolving   Commitments then in effect, and (ii) the Borrowing Base as of such date.  Amounts borrowed   pursuant to this Section 2.2 may be repaid and reborrowed during the Revolving Commitment   Period.  The Swingline Lender’s Revolving Commitment shall expire on the Revolving   Commitment Termination Date, all Swingline Loans and all other amounts owed hereunder with   respect to the Swingline Loans and the Revolving Commitments shall be paid in full no later than   such date, and no Swingline Loan shall be outstanding for more than ten (10) consecutive Business   Days without the Swingline Lender’s express written consent.   (b) Borrowing Mechanics for Swingline Loans.   (i) Whenever the Borrower desires that the Swingline Lender make a   Swingline Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice   no later than 11:00 a.m. on the proposed Credit Date.   (ii) The Swingline Lender shall make the amount of its Swingline Loan   available to the Administrative Agent not later than 3:00 p.m. on the applicable Credit Date   by wire transfer of same day funds in Dollars, at the Administrative Agent’s Principal   Office.  Except as provided herein, upon satisfaction or waiver of the conditions precedent   specified herein, the Administrative Agent shall make the proceeds of such Swingline   Loans available to the Borrower on the applicable Credit Date by causing an amount of   same day funds in Dollars equal to the proceeds of all such Swingline Loans received by   the Administrative Agent from the Swingline Lender to be credited to the account of the   Borrower at the Administrative Agent’s Principal Office, or to such other account as may   be designated in writing to the Administrative Agent by the Borrower.   (iii) With respect to any Swingline Loans which have not been voluntarily   prepaid by the Borrower pursuant to Section 2.11, the Swingline Lender may at any time   in its sole and absolute discretion, deliver to the Administrative Agent (with a copy to the   Borrower), no later than 11:00 a.m. on the day of the proposed Credit Date, a notice (which   shall be deemed to be a Funding Notice given by a Borrower) requesting that each Lender   holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the   Borrower on such Credit Date in an amount equal to the amount of such Swingline Loans   (the “Refunded Swingline Loans”) outstanding on the date such notice is given which the   Swingline Lender requests Revolving Lenders to prepay.  Anything contained in this   Agreement to the contrary notwithstanding, (1) the proceeds of such Revolving Loans   made by the Revolving Lenders other than the Swingline Lender shall be immediately     

 

   43   delivered by the Administrative Agent to the Swingline Lender (and not to the Borrower)   and applied to repay a corresponding portion of the Refunded Swingline Loans and (2) on   the day such Revolving Loans are made, the Swingline Lender’s Revolving Commitment   Percentage of the Refunded Swingline Loans shall be deemed to be paid with the proceeds   of a Revolving Loan made by the Swingline Lender to the Borrower, and such portion of   the Swingline Loans deemed to be so paid shall no longer be outstanding as Swingline   Loans and shall no longer be due under the Swingline Note of the Swingline Lender but   shall instead constitute part of the Swingline Lender’s outstanding Revolving Loans to the   Borrower and shall be due under the Revolving Loan Note issued by the Borrower to the   Swingline Lender.  The Borrower hereby authorizes the Administrative Agent and the   Swingline Lender to charge the Borrower’s accounts with the Administrative Agent and   the Swingline Lender (up to the amount available in each such account) in order to   immediately pay the Swingline Lender the amount of the Refunded Swingline Loans to the   extent of the proceeds of such Revolving Loans made by the Revolving Lenders, including   the Revolving Loans deemed to be made by the Swingline Lender, are insufficient to repay   in full the Refunded Swingline Loans.  If any portion of any such amount paid (or deemed   to be paid) to the Swingline Lender should be recovered by or on behalf of the Borrower   from the Swingline Lender in bankruptcy, by assignment for the benefit of creditors or   otherwise, the loss of the amount so recovered shall be ratably shared among all Revolving   Lenders in the manner contemplated by Section 2.14.   (iv) If for any reason Revolving Loans are not made pursuant to Section   2.2(b)(iii) in an amount sufficient to repay any amounts owed to the Swingline Lender in   respect of any outstanding Swingline Loans on or before the third Business Day after   demand for payment thereof by the Swingline Lender, each Lender holding a Revolving   Commitment shall be deemed to, and hereby agrees to, have purchased a participation in   such outstanding Swingline Loans, and in an amount equal to its Revolving Commitment   Percentage of the applicable unpaid amount together with accrued interest thereon.  On the   Business Day that notice is provided by the Swingline Lender (or by the 11:00 a.m. on the   following Business Day if such notice is provided after 2:00 p.m.), each Lender holding a   Revolving Commitment shall deliver to the Swingline Lender an amount equal to its   respective participation in the applicable unpaid amount in same day funds at the Principal   Office of the Swingline Lender.  In order to evidence such participation each Lender   holding a Revolving Commitment agrees to enter into a participation agreement at the   request of the Swingline Lender in form and substance reasonably satisfactory to the   Swingline Lender.  In the event any Lender holding a Revolving Commitment fails to make   available to the Swingline Lender the amount of such Revolving Lender’s participation as   provided in this paragraph, the Swingline Lender shall be entitled to recover such amount   on demand from such Revolving Lender together with interest thereon for three (3)   Business Days at the rate customarily used by the Swingline Lender for the correction of   errors among banks and thereafter at the Base Rate, as applicable.   (v) Notwithstanding anything contained herein to the contrary, (1) each   Revolving Lender’s obligation to make Revolving Loans for the purpose of repaying any   Refunded Swingline Loans pursuant to clause (iii) above and each Revolving Lender’s   obligation to purchase a participation in any unpaid Swingline Loans pursuant to the   immediately preceding paragraph shall be absolute and unconditional and shall not be   affected by any circumstance, including (A) any set-off, counterclaim, recoupment,   defense or other right which such Revolving Lender may have against the Swingline   Lender, any Credit Party or any other Person for any reason whatsoever; (B) the occurrence   or continuation of a Default or Event of Default; (C) any adverse change in the business,     

 

   44   operations, properties, assets, condition (financial or otherwise) or prospects of any Credit   Party; (D) any breach of this Agreement or any other Credit Document by any party thereto;   or (E) any other circumstance, happening or event whatsoever, whether or not similar to   any of the foregoing; provided that such obligations of each Revolving Lender are subject   to the condition that the Swingline Lender had not received prior notice from the Borrower   or the Required Lenders that any of the conditions under Section 5.2 to the making of the   applicable Refunded Swingline Loans or other unpaid Swingline Loans were not satisfied   at the time such Refunded Swingline Loans or other unpaid Swingline Loans were made;   and (2) the Swingline Lender shall not be obligated to make any Swingline Loans (A) if it   has elected not to do so after the occurrence and during the continuation of a Default or   Event of Default, or (B) it does not in good faith believe that all conditions under Section   5.2 to the making of such Swingline Loan have been satisfied or waived by the Required   Lenders.   Section 2.3 Issuances of Letters of Credit and Purchase of Participations Therein.   (a) Letters of Credit.  During the Revolving Commitment Period, subject to the terms   and conditions hereof, the Issuing Bank agrees to issue Letters of Credit for the account of the   Borrower or any of its Subsidiaries in the aggregate amount up to but not exceeding the Letter of   Credit Sublimit; provided, (i) each Letter of Credit shall be denominated in Dollars; (ii) the stated   amount of each Letter of Credit shall not be less than $50,000 or such lesser amount as is acceptable   to the Issuing Bank; (iii) after giving effect to such issuance, in no event shall the Outstanding   Amount of the Revolving Obligations exceed the lesser of (x) the Revolving Commitments then in   effect and (y) the Borrowing Base as of such date; (iv) after giving effect to such issuance, in no   event shall the Outstanding Amount of the Letter of Credit Obligations exceed the Letter of Credit   Sublimit then in effect; and (v) in no event shall any standby Letter of Credit have an expiration   date later than the earlier of (1) seven (7) days prior to the Revolving Commitment Termination   Date, and (2) the date which is one (1) year from the date of issuance of such standby Letter of   Credit.  Subject to the foregoing (other than clause (v)), the Issuing Bank may agree that a standby   Letter of Credit will automatically be extended for one or more successive periods not to exceed   one (1) year each, unless the Issuing Bank elects not to extend for any such additional period;   provided, the Issuing Bank shall not extend any such Letter of Credit if it has received written   notice that an Event of Default has occurred and is continuing at the time the Issuing Bank must   elect to allow such extension and ; provided, further, in the event that any Revolving Lender is at   such time a Defaulting Lender, unless the Issuing Bank has entered into arrangements satisfactory   to the Issuing Bank (in its sole discretion) with the Borrower or such Defaulting Lender to eliminate   the Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender (after giving effect   to Section 2.16(a)(iv) and any Cash Collateral provided by the Defaulting Lender), including by   Cash Collateralizing such Defaulting Lender’s Revolving Commitment Percentage of the   Outstanding Amount of the Letter of Credit Obligations in a manner reasonably satisfactory to the   Administrative Agent, the Issuing Bank shall not be obligated to issue or extend any Letter of Credit   hereunder.  The Issuing Bank may send a Letter of Credit or conduct any communication to or from   the beneficiary via the Society for Worldwide Interbank Financial Telecommunication (“SWIFT”)   message or overnight courier, or any other commercially reasonable means of communicating with   a beneficiary.   (b) Notice of Issuance.  Whenever the Borrower desires the issuance of a Letter of   Credit, the Borrower shall deliver to the Administrative Agent an Issuance Notice no later than   1:00 p.m. at least three (3) Business Days or such shorter period as may be agreed to by the Issuing   Bank in any particular instance, in advance of the proposed date of issuance.  Upon satisfaction or   waiver of the conditions set forth in Section 5.2, an Issuing Bank shall issue the requested Letter of     

 

   45   Credit only in accordance with the Issuing Bank’s standard operating procedures.  Upon the   issuance of any Letter of Credit or amendment or modification to a Letter of Credit, the Issuing   Bank shall promptly notify the Administrative Agent and each Revolving Lender of such issuance,   which notice shall be accompanied by a copy of such Letter of Credit or amendment or modification   to a Letter of Credit and the amount of such Revolving Lender’s respective participation in such   Letter of Credit pursuant to Section 2.3(e).   (c) Responsibility of Issuing Bank With Respect to Requests for Drawings and   Payments.  In determining whether to honor any drawing under any Letter of Credit by the   beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered   under such Letter of Credit with reasonable care so as to ascertain whether they appear on their   face to be in accordance with the terms and conditions of such Letter of Credit.  As between the   Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or   misuse of the Letters of Credit issued by the Issuing Bank, by the respective beneficiaries of such   Letters of Credit.  In furtherance and not in limitation of the foregoing, the Issuing Bank shall not   be responsible for: (i) the form, validity or invalidity, sufficiency or insufficiency, accuracy or   inaccuracy, genuineness (including if fraudulent or forged) or legal effect of any document   submitted by any party in connection with the application for and issuance of any such Letter of   Credit; (ii) the validity or invalidity, effectiveness or ineffectiveness or sufficiency or insufficiency   of any instrument transferring or assigning or purporting to transfer or assign any such Letter of   Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part; (iii) failure of   the beneficiary of any such Letter of Credit to comply fully with any conditions required in order   to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission   or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be   in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission   or otherwise of any document required in order to make a drawing under any such Letter of Credit   or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit   of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from   causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above   shall affect or impair, or prevent the vesting of, the Issuing Bank’s rights or powers hereunder.    Without limiting the foregoing and in furtherance thereof, any action taken or omitted by the   Issuing Bank under or in connection with the Letters of Credit or any documents and certificates   delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part   of the Issuing Bank to any Credit Party.  Notwithstanding anything to the contrary contained in this   Section 2.3(c), the Borrower shall retain any and all rights it may have against the Issuing Bank for   any liability arising solely out of the gross negligence or willful misconduct of the Issuing Bank,   as determined by a court of competent jurisdiction in a final, non-appealable order.   (d) Reimbursement by the Borrower of Amounts Drawn or Paid Under Letters of   Credit.  In the event an Issuing Bank has determined to honor a drawing under a Letter of Credit,   it shall immediately notify the Borrower and the Administrative Agent, and the Borrower shall   reimburse the Issuing Bank on or before the Business Day immediately following the date on which   such drawing is honored (the “Reimbursement Date”) in an amount in Dollars and in same day   funds equal to the amount of such honored drawing; provided, anything contained herein to the   contrary notwithstanding, (i) unless the Borrower shall have notified the Administrative Agent and   the Issuing Bank prior to 11:00 a.m. on the date such drawing is honored that the Borrower intends   to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the   proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice   to the Administrative Agent requesting the Revolving Lenders to make Revolving Loans that are   Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such   honored drawing, and (ii) subject to satisfaction or waiver of the conditions specified in Section     

 

   46   5.2, the Revolving Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base   Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly   by the Administrative Agent to reimburse the Issuing Bank for the amount of such honored   drawing; and provided further, if for any reason proceeds of Revolving Loans are not received by   the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored   drawing, the Borrower shall reimburse the Issuing Bank, on demand, in an amount in same day   funds equal to the excess of the amount of such honored drawing over the aggregate amount of   such Revolving Loans, if any, which are so received.  Nothing in this Section 2.3(d) shall be deemed   to relieve any Revolving Lender from its obligation to make Revolving Loans on the terms and   conditions set forth herein, and the Borrower shall retain any and all rights it may have against any   Revolving Lender resulting from the failure of such Revolving Lender to make such Revolving   Loans under this Section 2.3(d).   (e) Revolving Lenders’ Purchase of Participations in Letters of Credit.  Immediately   upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be   deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a   participation in such Letter of Credit and any drawings honored thereunder in an amount equal to   such Revolving Lender’s Revolving Commitment Percentage (with respect to the Revolving   Commitments) of the maximum amount which is or at any time may become available to be drawn   thereunder.  In the event that the Borrower shall fail for any reason to reimburse an Issuing Bank   as provided in Section 2.3(d), the Issuing Bank shall promptly notify each Revolving Lender of the   unreimbursed amount of such honored drawing and of such Revolving Lender’s respective   participation therein based on such Revolving Lender’s Revolving Commitment Percentage.  Each   Revolving Lender shall make available to the Issuing Bank an amount equal to its respective   participation, in Dollars and in same day funds, at the office of the Issuing Bank specified in such   notice, not later than 12:00 p.m. on the first Business Day (under the laws of the jurisdiction in   which such office of the Issuing Bank is located) after the date notified by the Issuing Bank.  In the   event that any Revolving Lender fails to make available to the Issuing Bank on such Business Day   the amount of such Revolving Lender’s participation in such Letter of Credit as provided in this   Section 2.3(e), the Issuing Bank shall be entitled to recover such amount on demand from such   Revolving Lender together with interest thereon for three (3) Business Days at the rate customarily   used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate.    Nothing in this Section 2.3(e) shall be deemed to prejudice the right of any Revolving Lender to   recover from the Issuing Bank any amounts made available by such Revolving Lender to the   Issuing Bank pursuant to this Section in the event that it is determined that the payment with respect   to a Letter of Credit in respect of which payment was made by such Revolving Lender constituted   gross negligence or willful misconduct on the part of the Issuing Bank, as determined by a court of   competent jurisdiction in a final, non-appealable order.  In the event an Issuing Bank shall have   been reimbursed by other Revolving Lenders pursuant to this Section 2.3(e) for all or any portion   of any drawing honored by the Issuing Bank under a Letter of Credit, the Issuing Bank shall   distribute to each Revolving Lender which has paid all amounts payable by it under this Section   2.3(e) with respect to such honored drawing such Revolving Lender’s Revolving Commitment   Percentage of all payments subsequently received by the Issuing Bank from the Borrower in   reimbursement of such honored drawing when such payments are received.  Any such distribution   shall be made to a Revolving Lender at its primary address set forth below its name on Appendix   B or at such other address as such Revolving Lender may request.   (f) Obligations Absolute.  The obligation of the Borrower to reimburse the Issuing   Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving   Loans made by the Revolving Lenders pursuant to Section 2.3(d) and the obligations of the   Revolving Lenders under Section 2.3(e) shall be unconditional and irrevocable and shall be paid     

 

   47   strictly in accordance with the terms hereof under all circumstances including any of the following   circumstances: (i) any lack of validity or enforceability of any Letter of Credit; (ii) the existence of   any claim, set-off, defense (other than that such drawing has been repaid) or other right which the   Borrower or any Revolving Lender may have at any time against a beneficiary or any transferee of   any Letter of Credit (or any Persons for whom any such transferee may be acting), the Issuing   Bank, a Revolving Lender or any other Person or, in the case of a Revolving Lender, against the   Borrower, whether in connection herewith, the transactions contemplated herein or any unrelated   transaction (including any underlying transaction between the Borrower or any of its Subsidiaries   and the beneficiary for which any Letter of Credit was procured); (iii) any draft or other document   presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any   respect or any statement therein being untrue or inaccurate in any respect; (iv) payment by the   Issuing Bank under any Letter of Credit against presentation of a draft or other document which   does not substantially comply with the terms of such Letter of Credit; (v) any adverse change in   the business, operations, properties, assets, or financial condition of the Borrower or any of its   Subsidiaries; (vi) any breach hereof or any other Credit Document by any party thereto; (vii) any   other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or   (viii) the fact that an Event of Default or a Default shall have occurred and be continuing; provided,   in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall not have   constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in   question, as determined by a court of competent jurisdiction in a final, non-appealable order.   (g) Indemnification.  Without duplication of any obligation of the Credit Parties under   Section 11.2, in addition to amounts payable as provided herein, each of the Credit Parties hereby   agrees, on a joint and several basis, to protect, indemnify, pay and save harmless the Issuing Bank   from and against any and all claims, demands, liabilities, damages, losses, costs, charges and   expenses (including reasonable and documented out-of-pocket fees, expenses and disbursements   of counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect,   of (i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of (1) the gross   negligence or willful misconduct of the Issuing Bank, as determined by a court of competent   jurisdiction in a final, non-appealable order, or (2) the wrongful dishonor by the Issuing Bank of a   proper demand for payment made under any Letter of Credit issued by it, or (ii) the failure of the   Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental   Act.   (h) Applicability of ISP.  Unless otherwise expressly agreed by the Issuing Bank and   the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to such Letter of   Credit.   (i) Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit   issued or outstanding hereunder is in support of any obligations of, or is for the account of, a   Subsidiary of the Borrower, the Borrower shall be obligated to reimburse the Issuing Bank   hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby   acknowledges that the issuance of Letters of Credit for the account of the Subsidiaries inures to the   benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the   businesses of such Subsidiaries.   Section 2.4 Pro Rata Shares; Availability of Funds.   (a) Pro Rata Shares.  All Loans shall be made, and all participations purchased, by the   Lenders simultaneously and proportionately to their respective pro rata shares of the Loans, it being   understood that no Lender shall be responsible for any default by any other Lender in such other     

 

   48   Lender’s obligation to make a Loan requested hereunder or purchase a participation required hereby   nor shall any Revolving Commitment, or the portion of the aggregate outstanding principal amount   of the Revolving Loans, of any Revolving Lender be increased or decreased as a result of a default   by any other Revolving Lender in such other Revolving Lender’s obligation to make a Revolving   Loan requested hereunder or purchase a participation required hereby.   (b) Availability of Funds.   (i) Funding by Lenders; Presumption by Administrative Agent.  Unless the   Administrative Agent shall have received notice from a Lender prior to the proposed date   of any Borrowing (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00   noon on the date of such Borrowing) that such Lender will not make available to the   Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent   may assume that such Lender has made such share available on such date in accordance   with Section 2.1(b) or, in the case of a Borrowing of Base Rate Loans, that such Lender   has made such share available in accordance with and at the time required by Section 2.1(b)   and may, in reliance upon such assumption, make available to the Borrower a   corresponding amount.  In such event, if a Lender has not in fact made its share of the   applicable Borrowing available to the Administrative Agent, then the applicable Lender   and the Borrower severally agree to pay to the Administrative Agent forthwith on demand   such corresponding amount in immediately available funds with interest thereon, for each   day from and including the date such amount is made available to the Borrower to but   excluding the date of payment to the Administrative Agent, at (A) in the case of a payment   to be made by such Lender, the greater of the Federal Funds Effective Rate and a rate   determined by the Administrative Agent in accordance with banking industry rules on   interbank compensation and (B) in the case of a payment to be made by the Borrower, the   interest rate applicable to Base Rate Loans, plus, in either case, any administrative,   processing or similar fees customarily charged by the Administrative Agent in connection   therewith.  If the Borrower and such Lender shall pay such interest to the Administrative   Agent for the same or an overlapping period, the Administrative Agent shall promptly   remit to the Borrower the amount of such interest paid by the Borrower for such period.  If   such Lender pays its share of the applicable Borrowing to the Administrative Agent, then   the amount so paid shall constitute such Lender’s Loan included in such Borrowing.  Any   payment by the Borrower shall be without prejudice to any claim the Borrower may have   against a Lender that shall have failed to make such payment to the Administrative Agent.   (ii) Payments by the Borrower; Presumptions by Administrative Agent.    Unless the Administrative Agent shall have received notice from the Borrower prior to the   date on which any payment is due to the Administrative Agent for the account of the   Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the   Administrative Agent may assume that the Borrower has made such payment on such date   in accordance herewith and may, in reliance upon such assumption, distribute to the   Lenders or each applicable Issuing Bank, as the case may be, the amount due.  In such   event, if the Borrower has not in fact made such payment, then each of the Lenders or each   applicable Issuing Bank, as the case may be, severally agrees to repay to the Administrative   Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank,   in immediately available funds with interest thereon, for each day from and including the   date such amount is distributed to it to but excluding the date of payment to the   Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate   determined by the Administrative Agent in accordance with banking industry rules on   interbank compensation.     

 

   49   Notices given by the Administrative Agent under this subsection (b) shall be conclusive absent manifest   error.   Section 2.5 Evidence of Debt; Register; Lenders’ Books and Records; Notes.   (a) Lenders’ Evidence of Debt.  Each Lender shall maintain on its internal records an   account or accounts evidencing the Obligations of the Borrower and each other Credit Party to such   Lender, including the amounts of the Loans made by it and each repayment and prepayment in   respect thereof.  Any such recordation shall be conclusive and binding on the Borrower, absent   manifest error; provided, that the failure to make any such recordation, or any error in such   recordation, shall not affect any Lender’s Commitment or the Borrower’s obligations in respect of   any applicable Loans; and provided, further, in the event of any inconsistency between the Register   and any Lender’s records, the recordations in the Register shall govern in the absence of   demonstrable error therein.   (b) Notes.  The Borrower shall execute and deliver to (i) each Lender on the Effective   Date, (ii) each Person who is a permitted assignee of such Lender pursuant to Section 11.5, and (iii)   each Person who becomes a Lender in accordance with Section 2.19, in each case to the extent   requested by such Person, a Note or Notes to evidence such Person’s portion of the Revolving   Loans or Term Loan, as applicable.   Section 2.6 Scheduled Principal Payments.   (a) Revolving Loans.  The principal amount of Revolving Loans is due and payable   in full on the Revolving Maturity Date.   (b) Swingline Loans.  The principal amount of the Swingline Loans is due and payable   in full on the earlier to occur of (i) the date of demand by the Swingline Lender, and (ii) the   Revolving Maturity Date.   (c) Term Loan.  The principal amount of the Term Loan is due and payable in full on   the Term Maturity Date.   Section 2.7 Interest on Loans.   (a) Except as otherwise set forth herein, each Loan shall bear interest on the unpaid   principal amount thereof from the date made through repayment (whether by acceleration or   otherwise) thereof as follows:   (i) in the case of Revolving Loans:   (A) if a Base Rate Loan (including a Base Rate Loan referencing the   LIBOR Index Rate), the Base Rate plus the Applicable Margin for Revolving   Loans that are Base Rate Loans; or   (B) if an Adjusted LIBOR Rate Loan, the Adjusted LIBOR Rate plus   the Applicable Margin for Revolving Loans that are Adjusted LIBOR Rate Loans;   (ii) in the case of Swingline Loans, at the Swingline Rate; and   (iii) in the case of the Term Loan:     

 

   50   (A) if the then outstanding portion of the Term Loan is a Base Rate   Loan (including a Base Rate Loan referencing the LIBOR Index Rate), the Base   Rate plus the Applicable Margin for Term Loans that are Base Rate Loans; or   (B) if the then outstanding portion of the Term Loan is an Adjusted   LIBOR Rate Loan, the Adjusted LIBOR Rate plus the Applicable Margin for Term   Loans that are Adjusted LIBOR Rate Loans.   (b) The basis for determining the rate of interest with respect to any Loan (except a   Swingline Loan, which may only be made and maintained at the Swingline Rate (unless and until   converted into a Revolving Loan pursuant to the terms and conditions hereof), and the Interest   Period with respect to any Adjusted LIBOR Rate Loan, shall be selected by the Borrower and   notified to the Administrative Agent and the Lenders pursuant to the applicable Funding Notice or   Conversion/Continuation Notice, as the case may be.  If on any day a Loan is outstanding with   respect to which a Funding Notice or Conversion/Continuation Notice has not been delivered to   the Administrative Agent in accordance with the terms hereof specifying the applicable basis for   determining the rate of interest, then for that day (i) if such Loan is an Adjusted LIBOR Rate Loan,   such Loan shall become a Base Rate Loan and (ii) if such Loan is a Base Rate Loan, such Loan   shall remain a Base Rate Loan.   (c) In connection with Adjusted LIBOR Rate Loans, there shall be no more than   twelve (12) Interest Periods outstanding at any time.  In the event the Borrower fails to specify   between a Base Rate Loan or an Adjusted LIBOR Rate Loan in the applicable Funding Notice or   Conversion/Continuation Notice, such Loan (i) if outstanding as an Adjusted LIBOR Rate Loan,   shall be automatically converted into a Base Rate Loan on the last day of the then-current Interest   Period for such Loan, and (ii) if outstanding as a Base Rate Loan will remain as, or (if not then   outstanding) will be made as, a Base Rate Loan.  In the event the Borrower fails to specify an   Interest Period for any Adjusted LIBOR Rate Loan in the applicable Funding Notice or   Conversion/Continuation Notice, the Borrower shall be deemed to have selected an Interest Period   of one (1) month.  As soon as practicable after 10:00 a.m. on each Interest Rate Determination Date   and each Index Rate Determination Date, the Administrative Agent shall determine (which   determination shall, absent manifest error, be final, conclusive and binding upon all parties) the   interest rate that shall apply to each of the LIBOR Loans for which an interest rate is then being   determined (and for the applicable Interest Period in the case of Adjusted LIBOR Rate Loans) and   shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower   and each Lender.   (d) Interest payable pursuant to this Section 2.7 shall be computed on the basis of (i)   for interest at the Base Rate or the Swingline Rate, a 365-day or 366-day year, as the case may be,   and (ii) for all other computations of fees and interest, a 360-day year, in each case, for the actual   number of days elapsed in the period during which it accrues.  In computing interest on any Loan,   the date of the making of such Loan or the first day of an Interest Period applicable to such Loan   or, with respect to a Base Rate Loan being converted from a LIBOR Loan, the date of conversion   of such LIBOR Loan to such Base Rate Loan, as the case may be, shall be included, and the date   of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or,   with respect to a Base Rate Loan being converted to a LIBOR Loan, the date of conversion of such   Base Rate Loan to such LIBOR Loan, as the case may be, shall be excluded; provided, if a Loan is   repaid on the same day on which it is made, one (1) day’s interest shall be paid on that Loan.   (e) [Reserved].     

 

   51   (f) Except as otherwise set forth herein, interest on each Loan shall accrue on a daily   basis and shall be payable in arrears on and to (i) each Interest Payment Date applicable to that   Loan; (ii) upon any prepayment of that Loan (other than a voluntary prepayment of a Revolving   Loan which interest shall be payable in accordance with clause (i) above), to the extent accrued on   the amount being prepaid; and (iii) at maturity, including final maturity.   (g) The Borrower agrees to pay to the Issuing Bank, with respect to drawings honored   under any Letter of Credit issued by the Issuing Bank, interest on the amount paid by the Issuing   Bank in respect of each such honored drawing from the date such drawing is honored to but   excluding the date such amount is reimbursed by or on behalf of the Borrower at a rate equal to (i)   for the period from the date such drawing is honored to but excluding the applicable   Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving   Loans that are Base Rate Loans, and (ii) thereafter, a rate which is the lesser of (y) 2% per annum   in excess of the rate of interest otherwise payable hereunder with respect to Revolving Loans that   are Base Rate Loans, and (z) the Highest Lawful Rate.   (h) Interest payable pursuant to Section 2.7(g) shall be computed on the basis of a 365-   day or 366-day year, as the case may be, for the actual number of days elapsed in the period during   which it accrues, and shall be payable on demand or, if no demand is made, on the date on which   the related drawing under a Letter of Credit is reimbursed in full.  Promptly upon receipt by the   Issuing Bank of any payment of interest pursuant to Section 2.7(g), the Issuing Bank shall distribute   to each Revolving Lender, out of the interest received by the Issuing Bank in respect of the period   from the date such drawing is honored to but excluding the date on which the Issuing Bank is   reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds   of any Revolving Loans), the amount that such Revolving Lender would have been entitled to   receive in respect of the letter of credit fee that would have been payable in respect of such Letter   of Credit for such period if no drawing had been honored under such Letter of Credit.  In the event   the Issuing Bank shall have been reimbursed by the Revolving Lenders for all or any portion of   such honored drawing, the Issuing Bank shall distribute to each Revolving Lender which has paid   all amounts payable by it under Section 2.3(e) with respect to such honored drawing such   Revolving Lender’s Revolving Commitment Percentage of any interest received by the Issuing   Bank in respect of that portion of such honored drawing so reimbursed by the Revolving Lenders   for the period from the date on which the Issuing Bank was so reimbursed by the Revolving Lenders   to but excluding the date on which such portion of such honored drawing is reimbursed by the   Borrower.   Section 2.8 Conversion/Continuation.   (a) So long as no Default or Event of Default shall have occurred and then be   continuing or would result therefrom, the Borrower shall have the option:   (i) to convert at any time all or any part of any Loan equal to $100,000 and   integral multiples of $50,000 in excess of that amount from one Type of Loan to another   Type of Loan; provided, an Adjusted LIBOR Rate Loan may only be converted on the   expiration of the Interest Period applicable to such Adjusted LIBOR Rate Loan unless the   Borrower shall pay all amounts due under Section 2.15 in connection with any such   conversion; or   (ii) upon the expiration of any Interest Period applicable to any Adjusted   LIBOR Rate Loan, to continue all or any portion of such Loan as an Adjusted LIBOR Rate   Loan.     

 

   52   (b) The Borrower shall deliver a Conversion/Continuation Notice to the   Administrative Agent no later than 1:00 p.m. at least three (3) Business Days in advance of the   proposed Conversion/Continuation Date.  Except as otherwise provided herein, a   Conversion/Continuation Notice for conversion to, or continuation of, any LIBOR Loans (or   telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate   Determination Date, and the Borrower shall be bound to effect a conversion or continuation in   accordance therewith.   Section 2.9 Default Rate of Interest.   (a) If any amount of principal of any Loan is not paid when due, whether at stated   maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating   interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by   Applicable Laws.   (b) If any amount (other than principal of any Loan) payable by the Borrower under   any Credit Document is not paid when due (after the expiration of any applicable grace periods),   whether at stated maturity, by acceleration or otherwise, then at the request of the Required Lenders,   such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal   to the Default Rate to the fullest extent permitted by Applicable Laws.   (c) During the continuance of an Event of Default under Section 9.1(f) or Section   9.1(g), the Borrower shall pay interest on the principal amount of all outstanding Obligations   hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest   extent permitted by Applicable Laws.   (d) During the continuance of an Event of Default other than an Event of Default under   Section 9.1(f) or Section 9.1(g), the Borrower shall, at the request of the Required Lenders, pay   interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest   rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable   Laws.   (e) Accrued and unpaid interest on past due amounts (including interest on past due   interest) shall be due and payable upon demand.   (f) In the case of any Adjusted LIBOR Rate Loan, upon the expiration of the Interest   Period in effect at the time the Default Rate of interest is effective, each such Adjusted LIBOR Rate   Loan shall thereupon become a Base Rate Loan and shall thereafter bear interest at the Default Rate   then in effect for Base Rate Loans.  Payment or acceptance of the increased rates of interest   provided for in this Section 2.9 is not a permitted alternative to timely payment and shall not   constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies   of the Administrative Agent or any Lender.   Section 2.10 Fees.   (a) [Reserved].   (b) Facility Fee.  The Borrower shall pay to the Administrative Agent for the account   of each Revolving Lender in accordance with its Revolving Commitment Percentage, a facility fee   (the “Facility Fee”) equal to the product of (x) the applicable Facility Fee Rate based on the   Borrower’s Investment Grade Rating as set forth in the Investment Grade Pricing Grid multiplied     

 

   53   by (y) the actual daily amount of the Aggregate Revolving Commitments, subject to adjustments   as provided in Section 2.16.  The Facility Fee shall accrue at all such times during the Revolving   Commitment Period, including at any time during which one or more of the conditions in Section   5 is not met, and shall be due and payable quarterly in arrears on the last Business Day of each   March, June, September and December, commencing with the first such date to occur after the   Effective Date, and on the Revolving Commitment Termination Date; provided that (1) no Facility   Fee shall accrue on the Revolving Commitment of a Defaulting Lender so long as such Revolving   Lender shall be a Defaulting Lender and (2) any Facility Fee accrued with respect to the Revolving   Commitment of a Defaulting Lender during the period prior to the time such Revolving Lender   became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower so long   as such Revolving Lender shall be a Defaulting Lender.  As and when applicable hereunder, the   Facility Fee shall be calculated quarterly in arrears, and if there is any change in the Facility Fee   Rate during any quarter, the actual daily amount shall be computed and multiplied by the Facility   Fee Rate separately for each period during such quarter that such Facility Fee Rate was in effect.     (c) Letter of Credit Fees.   (i) Commercial and Standby Letter of Credit Fees.  The Borrower shall pay   to the Administrative Agent for the account of each Revolving Lender in accordance with   its Revolving Commitment Percentage a Letter of Credit fee for each standby Letter of   Credit equal to the Applicable Margin for Letters of Credit multiplied by the daily   maximum amount available to be drawn under such Letter of Credit (collectively, the   “Letter of Credit Fees”).  For purposes of computing the daily amount available to be drawn   under any Letter of Credit, the amount of such Letter of Credit shall be determined in   accordance with Section 1.3(i).  The Letter of Credit Fees shall be computed on a quarterly   basis in arrears, and shall be due and payable on the last Business Day of each March, June,   September and December, commencing with the first such date to occur after the issuance   of such Letter of Credit, on the expiration date thereof and thereafter on demand; provided   that (1) no Letter of Credit Fees shall accrue in favor of a Defaulting Lender so long as   such Revolving Lender shall be a Defaulting Lender and (2) any Letter of Credit Fees   accrued in favor of a Defaulting Lender during the period prior to the time such Revolving   Lender became a Defaulting Lender and unpaid at such time shall not be payable by the   Borrower so long as such Revolving Lender shall be a Defaulting Lender.  If there is any   change in the Applicable Margin during any quarter, the daily maximum amount available   to be drawn under each standby Letter of Credit shall be computed and multiplied by the   Applicable Margin separately for each period during such quarter that such Applicable   Margin was in effect.  Notwithstanding anything to the contrary contained herein, during   the continuance of an Event of Default under Sections 9.1(f) and (g), all Letter of Credit   Fees shall accrue at the Default Rate, and during the continuance of an Event of Default   other than an Event of Default under Sections 9.1(f) or (g), then upon the request of the   Required Revolving Lenders, all Letter of Credit Fees shall accrue at the Default Rate.   (ii) Fronting Fee and Documentary and Processing Charges Payable to Issuing   Bank.  The Borrower shall pay directly to the Issuing Bank for its own account, on a   quarterly basis in arrears, a fronting fee with respect to each Letter of Credit, equal to the   greater of (x) a rate per annum of 0.125% multiplied by the average daily amount available   to be drawn under such Letter of Credit and (y) $1,500.  Such fronting fee shall be due and   payable on the last Business Day of each March, June, September and December in respect   of the most recently ended quarterly period (or portion thereof, in the case of the first   payment), commencing with the first such date to occur after the issuance of such Letter of   Credit, on its expiration date and thereafter on demand.  For purposes of computing the     

 

   54   daily amount available to be drawn under any Letter of Credit, the amount of such Letter   of Credit shall be determined in accordance with Section 1.3(i).  In addition, the Borrower   shall pay directly to the Issuing Bank for its own account the customary issuance,   presentation, amendment, renewal, negotiation and other processing fees, and other   standard costs and charges, of the Issuing Bank relating to letters of credit as from time to   time in effect.  Such customary fees and standard costs and charges are due and payable on   demand and are nonrefundable.   (d) Other Fees.  The Borrower shall pay to Lead Arrangers, Co-Syndication Agents,   and the Administrative Agent, for their own respective accounts, fees in the amounts and at the   times specified in the Fee Letter.  Such fees shall be fully earned when paid and shall not be   refundable for any reason whatsoever, except to the extent set forth in the Fee Letter.   Section 2.11 Prepayments/Commitment Reductions.   (a) Voluntary Prepayments.   (i) Any time and from time to time, the Loans may be repaid in whole or in   part, with respect to the Revolving Loans, without premium or penalty (subject to Section   3.1), and with respect to the Term Loan, subject to Section 3.1 and to payment of the   applicable Prepayment Premium (if any):   (A) with respect to Base Rate Loans (including Base Rate Loans   referencing the LIBOR Index Rate), the Borrower may prepay any such Loans on   any Business Day in whole or in part, in an aggregate minimum amount of   $250,000 and integral multiples of $100,000 in excess of that amount;   (B) with respect to Adjusted LIBOR Rate Loans, the Borrower may   prepay any such Loans on any Business Day in whole or in part (together with any   amounts due pursuant to Section 3.1(c)) in an aggregate minimum amount of   $250,000 and integral multiples of $100,000 in excess of that amount; and   (C) with respect to Swingline Loans, the Borrower may prepay any   such Loans on any Business Day in whole or in part in any amount;   (ii) All such prepayments shall be made:   (A) upon written or telephonic notice on the date of prepayment in the   case of Base Rate Loans or Swingline Loans; and   (B) upon not less than three (3) Business Days’ prior written or   telephonic notice in the case of Adjusted LIBOR Rate Loans;   in each case given to the Administrative Agent, or the Swingline Lender, as the case may be, by 11:00 a.m.   on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent   (and the Administrative Agent will promptly transmit such telephonic or original notice for a prepayment   by telefacsimile or telephone to each Revolving Lender or Term Lender, as applicable).  Upon the giving   of any such notice, the principal amount of the Loans specified in such notice shall become due and payable   on the prepayment date specified therein.  Any such voluntary prepayment shall be applied as specified in   Section 2.12(a).     

 

   55   (b) Voluntary Revolving Commitment Reductions.   (i) The Borrower may, from time to time upon not less than three (3) Business   Days’ prior written or telephonic notice confirmed in writing to the Administrative Agent   (which original written or telephonic notice the Administrative Agent will promptly   transmit by telefacsimile or telephone to each applicable Revolving Lender), at any time   and from time to time terminate in whole or permanently reduce in part (i) the Revolving   Commitments (ratably among the Revolving Lenders in accordance with their respective   commitment percentage thereof); provided, (A) any such partial reduction of the Revolving   Commitments shall be in an aggregate minimum amount of $5,000,000 and integral   multiples of $1,000,000 in excess of that amount, (B) the Borrower shall not terminate or   reduce the Aggregate Revolving Commitments if, after giving effect thereto and to any   concurrent prepayments hereunder, the aggregate Outstanding Amount exceed the   Aggregate Revolving Commitments and (C) if, after giving effect to any reduction of the   Aggregate Revolving Commitments, the Letter of Credit Sublimit and/or the Swingline   Sublimit exceed the amount of the Aggregate Revolving Commitments, the Letter of Credit   Sublimit and/or the Swingline Sublimit, as applicable, shall be automatically reduced by   the amount of such excess.   (ii) The Borrower’s notice to the Administrative Agent shall designate the date   (which shall be a Business Day) of such termination or reduction and the amount of any   partial reduction, and such termination or reduction of the Revolving Commitments shall   be effective on the date specified in the Borrower’s notice and shall reduce the Revolving   Commitments of each Revolving Lender proportionately to its Revolving Commitment   Percentage thereof.    (c) Mandatory Prepayments; Excess Outstanding Amounts.   If at any time (A) the Outstanding Amount of Revolving Obligations shall exceed the lesser   of (x) the Aggregate Revolving Commitments or (y) the Borrowing Base, in each case as of such   time, (B) the Outstanding Amount of Letter of Credit Obligations shall exceed the Letter of Credit   Sublimit, or (C) the Outstanding Amount of Swingline Loans shall exceed the Swingline Sublimit,   immediate prepayment will be made on or in respect of the Revolving Obligations in an amount   equal to such excess; provided, however, that, except with respect to clause (B), Letter of Credit   Obligations will not be Cash Collateralized hereunder until the Revolving Loans and Swingline   Loans have been paid in full.  If after repayment of all Revolving Obligations as provided above,   the outstanding balance of the Term Loan exceeds the Borrowing Base, immediate prepayment will   be made on or in respect of the outstanding balance of the Term Loan in an amount equal to such   excess.   Section 2.12 Application of Prepayments.   Within each Loan, prepayments will be applied first to Base Rate Loans, then to LIBOR   Loans in direct order of Interest Period maturities.  In addition:   (a) Voluntary Prepayments.  Voluntary prepayments will be applied as specified by   the Borrower.   (b) Mandatory Prepayments.  Mandatory prepayments under Section 2.11(c) above   shall be applied to the respective Revolving Obligations, as appropriate, but without a permanent     

 

   56   reduction of the aggregate Revolving Commitments, and shall be available for re-borrowing in   accordance with the terms hereof and of the other Credit Documents.   (c) Prepayments on the Revolving Obligations will be paid by the Administrative   Agent to the Revolving Lenders ratably in accordance with their respective interests therein (except   for Defaulting Lenders where their share will be applied as provided in Section 2.16(a) hereof).   Section 2.13 General Provisions Regarding Payments.   (a) All payments by the Borrower of principal, interest, fees and other Obligations   hereunder or under any other Credit Document shall be made in Dollars in immediately available   funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition.    The Administrative Agent shall, and the Borrower hereby authorizes the Administrative Agent to,   debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative   Agent or any of its Affiliates and designated for such purpose by the Borrower or such Subsidiary   in order to cause timely payment to be made to the Administrative Agent of all principal, interest   and fees due hereunder or under any other Credit Document (subject to sufficient funds being   available in its accounts for that purpose).   (b) In the event that the Administrative Agent is unable to debit a deposit account of   the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates   in order to cause timely payment to be made to the Administrative Agent of all principal, interest   and fees due hereunder or any other Credit Document (including because insufficient funds are   available in its accounts for that purpose), payments hereunder and under any other Credit   Document shall be delivered to the Administrative Agent, for the account of the Lenders, not later   than 2:00 p.m. on the date due at the Principal Office of the Administrative Agent or via wire   transfer of immediately available funds to an account designated by the Administrative Agent (or   at such other location as may be designated in writing by the Administrative Agent from time to   time); for purposes of computing interest and fees, funds received by the Administrative Agent   after that time on such due date shall be deemed to have been paid by the Borrower on the next   Business Day.   (c) All payments in respect of the principal amount of any Loan (other than voluntary   repayments of Revolving Loans) shall be accompanied by payment of accrued interest on the   principal amount being repaid or prepaid, and all such payments (and, in any event, any payments   in respect of any Loan on a date when interest is due and payable with respect to such Loan) shall   be applied to the payment of interest then due and payable before application to principal.   (d) The Administrative Agent shall promptly distribute to each Lender at such address   as such Lender shall indicate in writing, such Lender’s applicable pro rata share of all payments   and prepayments of principal and interest due to such Lender hereunder, together with all other   amounts due with respect thereto, including all fees payable with respect thereto, to the extent   received by the Administrative Agent.   (e) Notwithstanding the foregoing provisions hereof, if any Conversion/Continuation   Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans   in lieu of its pro rata share of any Adjusted LIBOR Rate Loans, the Administrative Agent shall give   effect thereto in apportioning payments received thereafter.   (f) Subject to the provisos set forth in the definition of “Interest Period,” whenever   any payment to be made hereunder shall be stated to be due on a day that is not a Business Day,     

 

   57   such payment shall be made on the next succeeding Business Day and such extension of time shall   be included in the computation of the payment of interest hereunder or of the Facility Fee   hereunder, but such payment shall be deemed to have been made on the date therefor for all other   purposes hereunder.   (g) The Administrative Agent may, but shall not be obligated to, deem any payment   by or on behalf of the Borrower hereunder that is not made in same day funds prior to 2:00 p.m. to   be a non-conforming payment.  Any such payment shall not be deemed to have been received by   the Administrative Agent until the later of (i) the time such funds become available funds, and (ii)   the applicable next Business Day.  The Administrative Agent shall give prompt telephonic notice   to the Borrower and each applicable Lender (confirmed in writing) if any payment is   non-conforming.  Any non-conforming payment may constitute or become a Default or Event of   Default in accordance with the terms of Section 9.1(a).  Interest shall continue to accrue on any   principal as to which a non-conforming payment is made until such funds become available funds   (but in no event less than the period from the date of such payment to the next succeeding applicable   Business Day) at the Default Rate (unless otherwise provided by the Required Lenders) from the   date such amount was due and payable until the date such amount is paid in full.   Section 2.14 Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of   setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its   Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the   aggregate amount of such Loans and accrued interest thereon or other such obligations greater than its pro   rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the   Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and   such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that   the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate   amount of principal of and accrued interest on their respective Loans and other amounts owing them;   provided that:   (i) if any such participations are purchased and all or any portion of the   payment giving rise thereto is recovered, such participations shall be rescinded and the   purchase price restored to the extent of such recovery, without interest; and   (ii) the provisions of this Section shall not be construed to apply to (A) any   payment made by the Borrower pursuant to and in accordance with the express terms of   this Agreement (including the application of funds arising from the existence of a   Defaulting Lender), (B) any amounts applied by the Swingline Lender to outstanding   Swingline Loans, (C) any amounts applied to Letter of Credit Obligations by the Issuing   Bank or Swingline Loans by the Swingline Lender, as appropriate, from Cash Collateral   provided under Section 2.15 or Section 2.16, or (D) any payment obtained by a Lender as   consideration for the assignment of or sale of a participation in any of its Loans or   participations in Letter of Credit Obligations, Swingline Loans or other obligations   hereunder to any assignee or participant, other than to the Borrower or any Subsidiary   thereof (as to which the provisions of this Section shall apply).   Each of the Credit Parties consents to the foregoing and agrees, to the extent it may effectively do so under   Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may   exercise against such Credit Party rights of setoff and counterclaim with respect to such participation as   fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation.     

 

   58   Section 2.15 Cash Collateral.  At any time that there shall exist a Defaulting Lender, within one   (1) Business Day following the written request of the Administrative Agent or the Issuing Bank (with a   copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank’s Fronting   Exposure with respect to such Defaulting Lender in an amount sufficient to cover the applicable Fronting   Exposure (after giving effect to Section 2.16(a)(iv) and any Cash Collateral provided by the Defaulting   Lender).   (a) Grant of Security Interest.  The Borrower, and to the extent provided by any   Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the   benefit of the Issuing Bank, and agrees to maintain, a perfected first priority security interest in all   such Cash Collateral as security for the Defaulting Lenders’ obligation to fund participations in   respect of Letter of Credit Obligations, to be applied pursuant to clause (b) below.  If at any time   the Administrative Agent determines that Cash Collateral is subject to any right or claim of any   Person other than the Administrative Agent and the Issuing Bank as herein provided (other than   the Permitted Liens), or that the total amount of such Cash Collateral is less than the applicable   Fronting Exposure, the Borrower will, promptly upon demand by the Administrative Agent, pay or   provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate   such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).   (b) Application.  Notwithstanding anything to the contrary contained in this   Agreement, Cash Collateral provided under this Section 2.15 or Section 2.16 in respect of Letters   of Credit shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund   participations in respect of Letter of Credit Obligations (including, as to Cash Collateral provided   by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was   so provided, prior to any other application of such property as may otherwise be provided for herein.   (c) Termination of Requirement.  Cash Collateral (or the appropriate portion thereof)   provided to reduce the Issuing Bank’s Fronting Exposure shall no longer be required to be held as   Cash Collateral pursuant to this Section 2.15 following (i) the elimination of the applicable Fronting   Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or   (ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess   Cash Collateral; provided, however, (x) Cash Collateral furnished by or on behalf of a Credit Party   shall not be released during the continuance of a Default or Event of Default (and following   application as provided in this Section 2.15 may be otherwise applied in accordance with Section   9.3) but shall be released upon the cure, termination or waiver of such Default or Event of Default   in accordance with the terms of this Agreement, and (y) the Person providing Cash Collateral and   the Issuing Bank or Swingline Lender, as applicable, may agree that Cash Collateral shall not be   released but instead held to support future anticipated Fronting Exposure or other obligations.   Section 2.16 Defaulting Lenders.   (a) Defaulting Lender Adjustments.  Notwithstanding anything to the contrary   contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as   such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:   (i) Waivers and Amendments.  Such Defaulting Lender’s right to approve or   disapprove any amendment, waiver or consent with respect to this Agreement shall be   restricted as set forth in Section 11.4(b)(iii).   (ii) Defaulting Lender Waterfall. Any payment of principal, interest, fees or   other amount (other than fees which any Defaulting Lender is not entitled to receive     

 

   59   pursuant to Section 2.16(a)(iii)) received by the Administrative Agent for the account of   such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section   9 or otherwise, and including any amounts made available to the Administrative Agent by   that Defaulting Lender pursuant to Section 11.3), shall be applied at such time or times as   may be determined by the Administrative Agent as follows: first, to the payment of any   amounts owing by that Defaulting Lender to the Administrative Agent hereunder; second,   to the payment on a pro rata basis of any amounts owing by that Defaulting Lender to the   Issuing Bank or the Swingline Lender hereunder; third, if so determined by the   Administrative Agent or requested by the Issuing Bank or the Swingline Lender, to be held   as Cash Collateral for future funding obligations of that Defaulting Lender of any   participation in any Swingline Loan or Letter of Credit; fourth, as the Borrower may   request (so long as no Default or Event of Default exists), to the funding of any Loan in   respect of which that Defaulting Lender has failed to fund its portion thereof as required   by this Agreement, as determined by the Administrative Agent; fifth, if so determined by   the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit   account and released in order to satisfy obligations of that Defaulting Lender to fund Loans   under this Agreement; sixth, to the payment of any amounts owing to the Lenders, the   Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent   jurisdiction obtained by any Lender, the Issuing Bank or the Swingline Lender against that   Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under   this Agreement; seventh, so long as no Default or Event of Default exists, to the payment   of any amounts owing to the Borrower as a result of any judgment of a court of competent   jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that   Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to that   Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided,   that, if (x) such payment is a payment of the principal amount of any Loans or Letter of   Credit Borrowings in respect of which that Defaulting Lender has not fully funded its   appropriate share and (y) such Loans or Letter of Credit Borrowings were made at a time   when the conditions set forth in Section 5.2 were satisfied or waived, such payment shall   be applied solely to the pay the Loans of, and Letter of Credit Borrowings owed to, all   Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any   Loans of, or Letter of Credit Borrowings owed to, that Defaulting Lender.  Any payments,   prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or   held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to   this Section 2.16(a)(ii) shall be deemed paid to (and the underlying obligations satisfied to   the extent of such payment) and redirected by that Defaulting Lender, and each Lender   irrevocably consents hereto.   (iii) Certain Fees.   (A) Such Defaulting Lender shall not be entitled to receive any   Facility Fee, any fees with respect to Letters of Credit (except as provided in clause   (b) below) or any other fees hereunder for any period during which that Lender is   a Defaulting Lender (and the Borrower shall not be required to pay any such fee   that otherwise would have been required to have been paid to that Defaulting   Lender).   (B) Each Defaulting Lender shall be entitled to receive Letter of   Credit Fees for any period during which that Lender is a Defaulting Lender only   to the extent allocable to its Revolving Commitment Percentage of the stated   amount of Letters of Credit for which such Lender (rather than the Borrower or     

 

   60   any other Credit Party) has provided Cash Collateral pursuant to Section 2.3(a),   Section 2.15 or otherwise.   (C) With respect to any fee not required to be paid to any Defaulting   Lender pursuant to clause (A) or (B) above, the Borrower shall (x) pay to each   Non-Defaulting Lender that portion of any such fee otherwise payable to such   Defaulting Lender with respect to such Defaulting Lender’s participation in Letter   of Credit Obligations or Swingline Loans that has been reallocated to such Non-   Defaulting Lender pursuant to clause (iv) below, (y) pay to the Issuing Bank and   Swingline Lender, as applicable, the amount of any such fee otherwise payable to   such Defaulting Lender to the extent allocable to the Issuing Bank’s or Swingline   Lender’s Fronting Exposure to such Defaulting Lender, and (z) not be required to   pay the remaining amount of any such fee.   (iv) Reallocation of Participations to Reduce Fronting Exposure.  All or any   part of such Defaulting Lender’s participation in Letter of Credit Obligations and   Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance   with their respective Revolving Commitment Percentages (calculated without regard to   such Defaulting Lender’s Revolving Commitment) but only to the extent that (x) the   conditions set forth in Section 5.2 are satisfied at the time of such reallocation (and, unless   the Borrower shall have otherwise notified the Administrative Agent at such time, the   Borrower shall be deemed to have represented and warranted that such conditions are   satisfied at such time), and (y) such reallocation does not cause the aggregate Outstanding   Amount of Revolving Loans of such Lender together with such Lender’s participation in   Letter of Credit Obligations and Swingline Loans at such time to exceed such Non-   Defaulting Lender’s Revolving Commitment.  No reallocation hereunder shall constitute a   waiver or release of any claim of any party hereunder against a Defaulting Lender arising   from that Lender having become a Defaulting Lender, including any claim of a Non-   Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure   following such reallocation.   (v) Cash Collateral, Repayment of Swingline Loans.  If the reallocation   described in clause (iv) above cannot, or can only partially, be effected, the Borrower shall,   without prejudice to any right or remedy available to it hereunder or under law, (x) first,   prepay Swingline Loans in an amount equal to the Swingline Lenders’ Fronting Exposure   and (y) second, Cash Collateralize the Issuing Bank’s Fronting Exposure in accordance   with the procedures set forth in Section 2.15.   (b) Defaulting Lender Cure.  If the Borrower, the Administrative Agent and the   Swingline Lender and the Issuing Bank agree in writing that a Lender is no longer a Defaulting   Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective   date specified in such notice and subject to any conditions set forth therein (which may include   arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable,   purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as   the Administrative Agent may determine to be necessary to cause the Loans and funded and   unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders   in accordance with the Revolving Commitments (without giving effect to Section 2.16(a)(iv),   whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be   made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower   while that Lender was a Defaulting Lender; and provided, further, that except to the extent   otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to     

 

   61   Lender will constitute a waiver or release of any claim of any party hereunder arising from that   Lender’s having been a Defaulting Lender.   (c) New Swingline Loans/Letters of Credit.  So long as any Lender is a Defaulting   Lender, no Issuing Bank shall be required to issue, extend, renew or increase any Letter of Credit   unless it is satisfied that the participations in the Letter of Credit Obligations related to any existing   Letters of Credit as well as the new, extended, renewed or increased Letter of Credit has been or   will be fully allocated among the Non-Defaulting Lenders in a manner consistent with clause (a)(iv)   above and such Defaulting Lender shall not participate therein except to the extent such Defaulting   Lender’s participation has been or will be fully Cash Collateralized in accordance with Section   2.15.   (d) Qualified Counterparties.  So long as any Lender is a Defaulting Lender, such   Lender shall not be a Swap Bank with respect to any Swap Contract entered into while such Lender   was a Defaulting Lender.   Section 2.17 Removal or Replacement of Lenders.  If (a) any Lender requests compensation   under Section 3.2, (b) any Credit Party is required to pay any additional amount to any Lender or any   Governmental Authority for the account of any Lender pursuant to Section 3.3, (c) any Lender gives notice   of an inability to fund LIBOR Loans under Section 3.1(b), (d) any Lender is a Defaulting Lender, or (e)   any Lender (a “Non-Consenting Lender”) does not consent (including by way of a failure to respond in   writing to a proposed amendment, consent or waiver by the date and time specified by the Administrative   Agent) to a proposed amendment, consent, change, waiver, discharge or termination hereunder or with   respect to any Credit Document that has been approved by the Required Lenders, then the Borrower may,   at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender   to assign and delegate without recourse (in accordance with and subject to the restrictions contained in, and   consents required by, Section 11.5, all of its interests, rights (other than its rights under Section 3.2, Section   3.3 and Section 11.2) and obligations under this Agreement and the related Credit Documents to an Eligible   Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts   such assignment), provided that:   (i) the Borrower shall have paid to the Administrative Agent the assignment   fee specified in Section 11.5(b)(iv);   (ii) such Lender shall have received payment of an amount equal to the   outstanding principal of its Loans and participations in Letter of Credit Borrowings, as   applicable, accrued interest thereon, accrued fees and all other amounts payable to it   hereunder and under the other Credit Documents (including any amounts under Section   3.1(c)) from the assignee (to the extent of such outstanding principal and accrued interest   and fees) or the Borrower (in the case of all other amounts);   (iii) in the case of any such assignment resulting from a claim for compensation   under Section 3.2 or payments required to be made pursuant to Section 3.3, such   assignment is reasonably expected to result in a reduction in such compensation or   payments thereafter;   (iv) such assignment does not conflict with Applicable Law; and   (v) in the case of any such assignment resulting from a Non-Consenting   Lender’s failure to consent to a proposed amendment, consent, change, waiver, discharge     

 

   62   or termination, the successor replacement Lender shall have consented to the proposed   amendment, consent, change, waiver, discharge or termination.   Each Lender agrees that in the event it, or its interests in the Loans and obligations hereunder, shall become   subject to the replacement and removal provisions of this Section, it will cooperate with the Borrower and   the Administrative Agent to give effect to the provisions hereof, including execution and delivery of an   Assignment Agreement in connection therewith, but the replacement and removal provisions of this Section   shall be effective regardless of whether an Assignment Agreement shall have been given.   A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a   result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such   assignment and delegation cease to apply.    Section 2.18 Extension of Revolving Maturity Date.   (a) Request for Extension.  The Borrower may, by written notice (the “Extension   Notice”) to the Administrative Agent (who shall promptly notify the Revolving Lenders) not earlier   than 120 days and not later than 60 days prior to the Revolving Maturity Date, request that each   Revolving Lender extend the Revolving Maturity Date for two (2) additional six (6) month periods   from the Revolving Maturity Date then in effect, each such extension to be irrevocably granted on   the date (an “Extension Effective Date”) that each of the conditions set forth in this Section 2.18   have been satisfied.  Upon the satisfaction of each of the conditions set forth in this Section 2.18,   an Extension Effective Date shall occur and the Revolving Maturity Date then in effect shall be   extended for six (6) additional months.   (b) Conditions to Effectiveness of Extension.  Subject to the provisions of the   foregoing clause (a), the extension of the Revolving Maturity Date pursuant to this Section shall   not be effective with respect to any Revolving Lender unless:   (i) no Default or Event of Default has occurred and is continuing on the   subject Extension Effective Date;   (ii) the representations and warranties contained in Section 4 and the other   Credit Documents are true and correct in all material respects on and as of the subject   Extension Effective Date, except to the extent that such representations and warranties   specifically refer to an earlier date, in which case they are true and correct in all material   respects as of such earlier date, and except that for purposes of this Section 2.18, the   representations and warranties contained in subsections (a) and (b) of Section 6.7 shall be   deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),   respectively, of Section 7.1;   (iii) for the second six (6) month extension, the initial six (6) month extension   shall have been validly exercised;   (iv) Administrative Agent shall have received a pro forma Compliance   Certificate as of the subject Extension Effective Date;   (v) [intentionally deleted]; and   (vi) the Borrowers shall pay to the Administrative Agent (for the benefit of the   Revolving Lenders) on the subject Extension Effective Date a fee (to be shared among and     

 

   63   paid to the Revolving Lenders based upon their Revolving Commitment Percentages of the   Aggregate Revolving Commitments) equal to the product of (i) 0.075% multiplied by (ii)   the then Aggregate Revolving Commitments.   (c) Conflicting Provisions.  This Section shall supersede any provisions in Section   11.4 to the contrary.   Section 2.19 Increase in Commitments.   (a) Request for Increase.  Provided there exists no Default or Event of Default, upon   notice to the Administrative Agent (which shall promptly notify the Lenders), the Borrower may,   from time to time, request an increase in the Aggregate Revolving Commitments and/or the Term   Loan by an amount (for all such requests) not exceeding $500,000,000 (to a maximum amount of   Aggregate Revolving Commitments plus the Term Loan equal to $1,600,000,000); provided that   any such request for an increase shall be in a minimum amount of $10,000,000 and in whole   increments of $5,000,000 in excess thereof; provided further, however, at Borrower’s option,   Borrower may request that any such requested increase be effected through the addition of one or   more term loan commitments (and, in such event, all references in this Section 2.19 to any increase,   as and to the extent applicable at any time, shall be deemed and construed to mean and refer to any   such term loan commitment in the amount of such increase, mutatis mutandis), subject further,   however, (1) to the continued applicability of the terms and provisions of this Section 2.19 and (2)   in addition to the items specified in Section 2.19(e), the prior execution and delivery by the Credit   Parties of such other and further agreements, amendments, instruments, and documents which   Administrative Agent may then require in its sole but reasonable determination to effect any such   term loan commitment in the amount of such increase.  At the time of sending any notice of such   requested increase in the Aggregate Revolving Commitments and/or the Term Loan, the Borrower   (in consultation with the Administrative Agent) shall specify the time period within which each   Lender is requested to respond (which shall in no event be less than ten (10) Business Days from   the date of delivery of such notice to the Lenders).     (b) Lender Elections to Increase.  Each Lender may decline or elect to participate in   such requested increase in the Aggregate Revolving Commitments and/or Term Loan in its sole   discretion, and each Lender shall notify the Administrative Agent within such time period whether   or not it agrees to increase its Revolving Commitment and/or Term Loan and, if so, whether by an   amount equal to, greater than, or less than its Revolving Commitment Percentage of pro rata share   of the Term Loan, as applicable, of such requested increase (based on such Lender’s Revolving   Commitments and the Aggregate Revolving Commitments or pro rata share and outstanding   amount of the Term Loan, as applicable, in effect immediately prior to the effectiveness of any   such increase).  Any Lender not responding within such time period shall be deemed to have   declined to increase its Revolving Commitment and/or Term Loan.   (c) Notification by Administrative Agent; Additional Lenders.  The Administrative   Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made   hereunder.  To achieve the full amount (or any lesser amount acceptable to the Borrower and the   Administrative Agent) of a requested increase (in the event that the aggregate amount of increases   in individual Revolving Commitments and/or Term Loan by then-existing Lenders is less than the   aggregate amount of the requested increase) and subject to the approval of the Borrower,   Administrative Agent, the Issuing Bank and the Swingline Lender (which approvals shall not be   unreasonably withheld), the Borrower, the Administrative Agent or the Lead Arrangers (or any of   the them) may also invite additional Eligible Assignees to become Lenders pursuant to a joinder   agreement and/or commitment agreements in form and substance reasonably satisfactory as to its     

 

   64   inclusion of such Eligible Assignees to the Administrative Agent and its counsel.  To the extent   that the joinder or commitment agreements described above provide for an applicable margin of,   and/or commitment or facility fee for, additional Revolving Commitments and/or Term Loan   greater than the Applicable Margin and/or Facility Fee with respect to the existing Revolving   Commitments and/or Term Loan at such time, the Applicable Margin and/or the Facility Fee (as   applicable) for the existing Revolving Commitments and/or Term Loan shall be increased   automatically (without the consent of the Required Lenders) such that the Applicable Margin and/or   the Facility Fee (as applicable) for such existing Revolving Commitments and/or Term Loan is not   less than the applicable margin and/or the commitment fee or facility fee (as applicable) for such   additional Revolving Commitments and/or Term Loan.   (d) Effective Date and Allocations.  If the Aggregate Revolving Commitments and/or   Term Loan are increased in accordance with this Section, the Administrative Agent and the   Borrower shall determine the effective date (the “Increase Effective Date”) and the final allocation   of such increase.  The Administrative Agent shall promptly notify the Borrower and the Lenders   of the final allocation of such increase and the Increase Effective Date.   (e) Conditions to Effectiveness of Increase.  As a condition precedent to each such   increase in the Aggregate Revolving Commitments and/or Term Loan, the Borrower shall deliver   to the Administrative Agent (x) a certificate of each Credit Party dated as of the Increase Effective   Date signed by an Authorized Officer of such Credit Party (i) certifying and attaching the   resolutions adopted by such Credit Party approving or consenting to such increase, and (ii) in the   case of the Borrower, certifying that, before and after giving effect to such increase, (A) the   representations and warranties contained in Section 6 and the other Credit Documents are true and   correct in all material respects on and as of the Increase Effective Date (with any representations   and warranties which are subject to a materiality qualifier being true and correct in all respects in   accordance with the terms thereof), except to the extent that such representations and warranties   specifically refer to an earlier date, in which case they are true and correct in all material respects   as of such earlier date, and except that for purposes of this Section 2.19, the representations and   warranties contained in subsections (a), (b) and (c) of Section 6.7 shall be deemed to refer to the   most recent statements furnished pursuant to clauses (a), (b) and (d), respectively, of Section 7.1,   and (B) no Default or Event of Default exists as of the Increase Effective Date, and (y) such new   or additional Notes payable to each of the Lenders as are required to be delivered pursuant to   Section 2.5(b).  The Borrower shall prepay any Revolving Loans outstanding on the Increase   Effective Date (and pay any additional amounts required pursuant to Section 3.1(c)) to the extent   necessary to keep the outstanding Revolving Loans ratable with any revised Revolving   Commitment Percentages arising from any non-ratable increase in the Aggregate Revolving   Commitments under this Section, and each Credit Party shall execute and deliver such documents   or instruments as the Administrative Agent may require to evidence such increase in Revolving   Commitments and/or Term Loan and to ratify each such Credit Party’s continuing obligations   hereunder and under the other Credit Documents.   (f) Conflicting Provisions.  This Section shall supersede any provisions in Section   11.4 to the contrary.   Section 3 YIELD PROTECTION   Section 3.1 Making or Maintaining LIBOR Loans.   (a) Inability to Determine Applicable Interest Rate.  In the event that the   Administrative Agent shall have determined (which determination shall be final and conclusive     

 

   65   and binding upon all parties hereto), on any Interest Rate Determination Date or any Index Rate   Determination Date with respect to any LIBOR Loans that, by reason of circumstances affecting   the London interbank market, adequate and fair means do not exist for ascertaining the interest rate   applicable to such LIBOR Loans on the basis provided for in the definition of Adjusted LIBOR   Rate or LIBOR Index Rate, as applicable, the Administrative Agent shall on such date give notice   (by telefacsimile or by telephone confirmed in writing) to the Borrower and each Lender of such   determination, whereupon (i) no Loans may be made as, or converted to, LIBOR Loans until such   time as the Administrative Agent notifies the Borrower and the Lenders that the circumstances   giving rise to such notice no longer exist, and (ii) any Funding Notice or Conversion/Continuation   Notice given by the Borrower with respect to the Loans in respect of which such determination was   made shall be deemed to be rescinded by the Borrower and such Loans shall be automatically made   or continued as, or converted to, as applicable, Base Rate Loans without reference to the LIBOR   Index Rate component of the Base Rate.   (b) Illegality or Impracticability of LIBOR Loans.  In the event that on any date any   Lender shall have determined (which determination shall be final and conclusive and binding upon   all parties hereto but shall be made only after consultation with the Borrower and the Administrative   Agent) that the making, maintaining or continuation of its LIBOR Loans (i) has become unlawful   as a result of compliance by such Lender in good faith with any law, treaty, governmental rule,   regulation, guideline or order (or would conflict with any such treaty, governmental rule,   regulation, guideline or order not having the force of law even though the failure to comply   therewith would not be unlawful), or (ii) has become impracticable, as a result of contingencies   occurring after the date hereof which materially and adversely affect the London interbank market   or the position of such Lender in that market, then, and in any such event, such Lender shall be an   “Affected Lender” and it shall on that day give notice (by telefacsimile or by telephone confirmed   in writing) to the Borrower and the Administrative Agent of such determination (which notice the   Administrative Agent shall promptly transmit to each other Lender).  Thereafter (1) the obligation   of the Affected Lender to make Loans as, or to convert Loans to, LIBOR Loans shall be suspended   until such notice shall be withdrawn by the Affected Lender, (2) to the extent such determination   by the Affected Lender relates to a LIBOR Loan then being requested by the Borrower pursuant to   a Funding Notice or a Conversion/Continuation Notice, the Affected Lender shall make such Loan   as (or continue such Loan as or convert such Loan to, as the case may be) a Base Rate Loan without   reference to the LIBOR Index Rate component of the Base Rate, (3) the Affected Lender’s   obligation to maintain its outstanding LIBOR Loans (the “Affected Loans”) shall be terminated at   the earlier to occur of the expiration of the Interest Period then in effect with respect to the Affected   Loans or when required by law, and (4) the Affected Loans shall automatically convert into Base   Rate Loans without reference to the LIBOR Index Rate component of the Base Rate on the date of   such termination.  Notwithstanding the foregoing, to the extent a determination by an Affected   Lender as described above relates to a LIBOR Loan then being requested by the Borrower pursuant   to a Funding Notice or a Conversion/Continuation Notice, the Borrower shall have the option,   subject to the provisions of Section 3.1(a), to rescind such Funding Notice or   Conversion/Continuation Notice as to all Lenders by giving notice (by telefacsimile or by telephone   confirmed in writing) to the Administrative Agent of such rescission on the date on which the   Affected Lender gives notice of its determination as described above (which notice of rescission   the Administrative Agent shall promptly transmit to each other Lender).  Except as provided in the   immediately preceding sentence, nothing in this Section 3.1(b) shall affect the obligation of any   Lender other than an Affected Lender to make or maintain Loans as, or to convert Loans to, LIBOR   Loans in accordance with the terms hereof.   (c) Compensation for Breakage or Non-Commencement of Interest Periods.  The   Borrower shall compensate each Lender, upon written request by such Lender (which request shall     

 

   66   set forth the basis for requesting such amounts), for all reasonable out-of-pocket losses, expenses   and liabilities (including any interest paid or calculated to be due and payable by such Lender to   lenders of funds borrowed by it to make or carry its Adjusted LIBOR Rate Loans and any loss,   expense or liability sustained by such Lender in connection with the liquidation or re-employment   of such funds but excluding loss of anticipated profits) which such Lender sustains:  (i) if for any   reason (other than a default by such Lender) a borrowing of any Adjusted LIBOR Rate Loans does   not occur on a date specified therefor in a Funding Notice or a telephonic request for borrowing, or   a conversion to or continuation of any Adjusted LIBOR Rate Loans does not occur on a date   specified therefor in a Conversion/Continuation Notice or a telephonic request for conversion or   continuation; (ii) if any prepayment or other principal payment of, or any conversion of, any of its   Adjusted LIBOR Rate Loans occurs on any day other than the last day of an Interest Period   applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or   otherwise), including as a result of an assignment in connection with the replacement of a Lender   pursuant to Section 3.4(b); or (iii) if any prepayment of any of its Adjusted LIBOR Rate Loans is   not made on any date specified in a notice of prepayment given by the Borrower.   (d) Booking of LIBOR Loans.  Any Lender may make, carry or transfer LIBOR Loans   at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender.   (e) Assumptions Concerning Funding of Adjusted LIBOR Rate Loans.  Calculation   of all amounts payable to a Lender under this Section 3.1 and under Section 3.2 shall be made as   though such Lender had actually funded each of its relevant Adjusted LIBOR Rate Loans through   the purchase of a LIBOR deposit bearing interest at the rate obtained pursuant to clause (i) of the   definition of Adjusted LIBOR Rate in an amount equal to the amount of such Adjusted LIBOR   Rate Loans and having a maturity comparable to the relevant Interest Period and through the   transfer of such LIBOR deposit from an offshore office of such Lender to a domestic office of such   Lender in the United States of America; provided, however, each Lender may fund each of its   Adjusted LIBOR Rate Loans in any manner it sees fit and the foregoing assumptions shall be   utilized only for the purposes of calculating amounts payable under this Section 3.1 and under   Section 3.2.   (f) Certificates for Reimbursement.  A certificate of a Lender setting forth in   reasonable detail the amount or amounts necessary to compensate such Lender, as specified in   paragraph (c) of this Section and the circumstances giving rise thereto shall be delivered to the   Borrower and shall be conclusive absent manifest error.  In the absence of any such manifest error,   the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as   due on any such certificate within ten (10) Business Days after receipt thereof.   (g) Delay in Requests.  The Borrower shall not be required to compensate a Lender   pursuant to this Section for any such amounts incurred more than six (6) months prior to the date   that such Lender delivers to the Borrower the certificate referenced in Section 3.1(f).   Section 3.2 Increased Costs.   (a) Increased Costs Generally.  If any Change in Law shall:   (i) impose, modify or deem applicable any reserve, special deposit,   compulsory loan, insurance charge or similar requirement against assets of, deposits with   or for the account of, or credit extended or participated in by, any Lender (except any   reserve requirement reflected in the Adjusted LIBOR Rate) or the Issuing Bank;     

 

   67   (ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B)   Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C)   Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or   other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or   (iii) impose on any Lender or the Issuing Bank or the London interbank market   any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans   made by such Lender or any Letter of Credit or participation therein;   and the result of any of the foregoing shall be to increase the cost to such Lender or such other   Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its   obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Bank or such   other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining   its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum   received or receivable by such Lender, Issuing Bank or other Recipient hereunder (whether of   principal, interest or any other amount) then, upon request of such Lender, Issuing Bank or other   Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case may   be, such additional amount or amounts as will reasonably compensate such Lender, Issuing Bank   or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.   (b) Capital Requirements.  If any Lender, the Issuing Bank or the Swingline Lender   (for purposes hereof, may be referred to collectively as “the Lenders” or a “Lender”) determines   that any Change in Law affecting such Lender or any lending office of such Lender or such   Lender’s holding company, if any, regarding capital or liquidity requirements has or would have   the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s   holding company, if any, as a consequence of this Agreement, the commitments of such Lender   hereunder or the Loans made by, or participations in Letters of Credit and Swingline Loans held   by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which   such Lender or such Lender’s holding company could have achieved but for such Change in Law   (taking into consideration such Lender’s policies and the policies of such Lender’s holding   company with respect to capital adequacy), then from time to time the Borrower will pay to such   Lender, as the case may be, such additional amount or amounts as will compensate such Lender or   such Lender’s holding company for any such reduction suffered.   (c) Certificates for Reimbursement.  A certificate of a Lender or an Issuing Bank   setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or   the Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of   this Section and the circumstances giving rise thereto shall be delivered to the Borrower and shall   be conclusive absent manifest error.  In the absence of any such manifest error, the Borrower shall   pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such   certificate within ten (10) Business Days after receipt thereof.   (d) Delay in Requests.  Failure or delay on the part of any Lender or the Issuing Bank   to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or   the Issuing Bank’s right to demand such compensation, provided that the Borrower shall not be   required to compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs   incurred or reductions suffered more than six (6) months prior to the date that such Lender or the   Issuing Bank, as the case may be, delivers to the Borrower the certificate referenced in Section   3.2(c) and notifies the Borrower of such Lender’s or the Issuing Bank’s intention to claim   compensation therefor (except that, if the Change in Law giving rise to such increased costs or     

 

   68   reductions is retroactive, then the six-month period referred to above shall be extended to include   the period of retroactive effect thereof).   Section 3.3 Taxes.   (a) Issuing Bank.  For purposes of this Section 3.3, the term “Lender” shall include   the Issuing Bank.   (b) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.    Any and all payments by or on account of any obligation of any Credit Party hereunder or under   any other Credit Document shall be made without deduction or withholding for any Taxes, except   as required by Applicable Law.  If any Applicable Law (as determined in the good faith discretion   of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any   such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to   make such deduction or withholding and shall timely pay the full amount deducted or withheld to   the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an   Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as   necessary so that after such deduction or withholding has been made (including such deductions   and withholdings applicable to additional sums payable under this Section) the applicable Recipient   receives an amount equal to the sum it would have received had no such deduction or withholding   been made.   (c) Payment of Other Taxes by the Credit Parties.  The Credit Parties shall timely pay   to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the   Administrative Agent timely reimburse it for the payment of, any Other Taxes.   (d) Tax Indemnification.  (i) The Credit Parties shall jointly and severally indemnify   each Recipient within ten (10) Business Days after demand therefor, for the full amount of any   Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts   payable under this Section) payable or paid by such Recipient or required to be withheld or   deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with   respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or   asserted by the relevant Governmental Authority.  A certificate as to the amount of any such   payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative   Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be   conclusive absent manifest error.   (ii) Each Lender shall severally indemnify the Administrative Agent within   ten (10) Business Days after demand therefor, for (i) any Indemnified Taxes attributable to   such Lender (but only to the extent that any Credit Party has not already indemnified the   Administrative Agent for such Indemnified Taxes and without limiting the obligation of   the Credit Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply   with the provisions of Section 11.5(d) relating to the maintenance of a Participant Register   and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or   paid by the Administrative Agent in connection with any Credit Document, and any   reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes   were correctly or legally imposed or asserted by the relevant Governmental Authority.  A   certificate as to the amount of such payment or liability delivered to any Lender by the   Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby   authorizes the Administrative Agent to set off and apply any and all amounts at any time   owing to such Lender under any Credit Document or otherwise payable by the     

 

   69   Administrative Agent to the Lender from any other source against any amount due to the   Administrative Agent under this clause (ii).   (e) Evidence of Payments.  As soon as practicable after any payment of Taxes by any   Credit Party to a Governmental Authority pursuant to this Section, such Credit Party shall deliver   to the Administrative Agent the original or a certified copy of a receipt issued by such   Governmental Authority evidencing such payment, a copy of a return reporting such payment or   other evidence of such payment reasonably satisfactory to the Administrative Agent.   (f) Status of Lenders; Tax Documentation.  (i) Any Lender that is entitled to an   exemption from or reduction of withholding Tax with respect to payments made under any Credit   Document shall deliver to the Borrower and the Administrative Agent, at the time or times   reasonably requested by the Borrower or the Administrative Agent, such properly completed and   executed documentation reasonably requested by the Borrower or the Administrative Agent as will   permit such payments to be made without withholding or at a reduced rate of withholding.  In   addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall   deliver such other documentation prescribed by Applicable Law or reasonably requested by the   Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to   determine whether or not such Lender is subject to backup withholding or information reporting   requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the   completion, execution and submission of such documentation (other than such documentation set   forth in clauses (ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable   judgment such completion, execution or submission would subject such Lender to any material   unreimbursed cost or expense or would materially prejudice the legal or commercial position of   such Lender.   (ii) Without limiting the generality of the foregoing, in the event that the   Borrower is a U.S. Person,   (A) any Lender that is a U.S. Person shall deliver to the Borrower and   the Administrative Agent on or prior to the date on which such Lender becomes a   Lender under this Agreement (and from time to time thereafter upon the reasonable   request of the Borrower or the Administrative Agent), executed originals of IRS   Form W-9 certifying that such Lender is exempt from U.S. federal backup   withholding tax;   (B) any Foreign Lender shall, to the extent it is legally entitled to do   so, deliver to the Borrower and the Administrative Agent (in such number of copies   as shall be requested by the recipient) on or prior to the date on which such Foreign   Lender becomes a Lender under this Agreement (and from time to time thereafter   upon the reasonable request of the Borrower or the Administrative Agent),   whichever of the following is applicable:   (i) in the case of a Foreign Lender claiming the benefits of   an income tax treaty to which the United States is a party (x) with respect   to payments of interest under any Credit Document, executed originals of   IRS Form W-8BEN or W-8BEN-E, as applicable (or any successor form)   establishing an exemption from, or reduction of, U.S. federal withholding   Tax pursuant to the “interest” article of such tax treaty and (y) with respect   to any other applicable payments under any Credit Document, IRS Form   W-8BEN or W-8BEN-E, as applicable (or any successor form)     

 

   70   establishing an exemption from, or reduction of, U.S. federal withholding   Tax pursuant to the “business profits” or “other income” article of such   tax treaty;   (ii) executed originals of IRS Form W-8ECI;   (iii) in the case of a Foreign Lender claiming the benefits of   the exemption for portfolio interest under Section 881(c) of the Internal   Revenue Code, (x) a certificate substantially in the form of Exhibit 3.3-1   to the effect that such Foreign Lender is not a “bank” within the meaning   of Section 881(c)(3)(A) of the Internal Revenue Code, a “10 percent   shareholder” of the Borrower within the meaning of Section 881(c)(3)(B)   of the Internal Revenue Code, or a “controlled foreign corporation”   described in Section 881(c)(3)(C) of the Internal Revenue Code (a “U.S.   Tax Compliance Certificate”) and (y) executed originals of IRS Form W-   8BEN or W-8BEN-E, as applicable (or any successor form); or   (iv) to the extent a Foreign Lender is not the beneficial owner,   executed originals of IRS Form W-8IMY, accompanied by IRS Form W-   8ECI, IRS Form W-8BEN or W-8BEN-E, as applicable (or any successor   form), a U.S. Tax Compliance Certificate substantially in the form of   Exhibit 3.3-2 or Exhibit 3.3-3, IRS Form W-9, and/or other certification   documents from each beneficial owner, as applicable; provided that if the   Foreign Lender is a partnership and one or more direct or indirect partners   of such Foreign Lender are claiming the portfolio interest exemption, such   Foreign Lender may provide a U.S. Tax Compliance Certificate   substantially in the form of Exhibit 3.3-4 on behalf of each such direct and   indirect partner;   (C) any Foreign Lender shall, to the extent it is legally entitled to do   so, deliver to the Borrower and the Administrative Agent (in such number of copies   as shall be requested by the recipient) on or prior to the date on which such Foreign   Lender becomes a Lender under this Agreement (and from time to time thereafter   upon the reasonable request of the Borrower or the Administrative Agent),   executed originals of any other form prescribed by Applicable Law as a basis for   claiming exemption from or a reduction in U.S. federal withholding Tax, duly   completed, together with such supplementary documentation as may be prescribed   by Applicable Law to permit the Borrower or the Administrative Agent to   determine the withholding or deduction required to be made; and   (D) if a payment made to a Lender under any Credit Document would   be subject to U.S. federal withholding Tax imposed by FATCA if such Lender   were to fail to comply with the applicable reporting requirements of FATCA   (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue   Code, as applicable), such Lender shall deliver to the Borrower and the   Administrative Agent at the time or times prescribed by law and at such time or   times reasonably requested by the Borrower or the Administrative Agent such   documentation prescribed by Applicable Law (including as prescribed by Section   1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation   reasonably requested by the Borrower or the Administrative Agent as may be   necessary for the Borrower and the Administrative Agent to comply with their     

 

   71   obligations under FATCA and to determine that such Lender has complied with   such Lender’s obligations under FATCA or to determine the amount to deduct and   withhold from such payment.  Solely for purposes of this clause (D), “FATCA”   shall include any amendments made to FATCA after the date of this Agreement.   Each Lender agrees that if any form or certification it previously delivered expires or becomes   obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the   Borrower and the Administrative Agent in writing of its legal inability to do so.   (g) Treatment of Certain Refunds.  Unless required by Applicable Law, at no time   shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a   Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted   from funds paid for the account of such Lender.  If any party determines, in its sole discretion   exercised in good faith, that it has received a refund of any Taxes as to which it has been   indemnified pursuant to this Section (including by the payment of additional amounts pursuant to   this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the   extent of indemnity payments made under this Section with respect to the Taxes giving rise to such   refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without   interest (other than any interest paid by the relevant Governmental Authority with respect to such   refund).  Such indemnifying party, upon the request of the indemnified party, shall repay to such   indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest   or other charges imposed by the relevant Governmental Authority) in the event that such   indemnified party is required to repay such refund to such Governmental Authority.    Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified   party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the   payment of which would place the indemnified party in a less favorable net after-Tax position than   the indemnified party would have been in if the Tax subject to indemnification and giving rise to   such refund had not been deducted, withheld or otherwise imposed and the indemnification   payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall   not be construed to require any indemnified party to make available its Tax returns (or any other   information relating to its Taxes that it deems confidential) to the indemnifying party or any other   Person.   (h) Survival.  Each party’s obligations under this Section 3.3 shall survive the   resignation or replacement of the Administrative Agent or any assignment of rights by, or the   replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or   discharge of all obligations under any Credit Document.   Section 3.4 Mitigation Obligations; Designation of a Different Lending Office.  (a)    Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.2, or   requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any   Governmental Authority for the account of any Lender pursuant to Section 3.3, then such Lender shall (at   the request of the Borrower) use reasonable efforts to designate a different lending office for funding or   booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices,   branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate   or reduce amounts payable pursuant to Section 3.2 or Section 3.3, as the case may be, in the future, and (ii)   would not subject such Lender to any unreimbursed cost or expense and would not otherwise be   disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses   incurred by any Lender in connection with any such designation or assignment.     

 

   72   (b) Replacement of Lenders.  If any Lender requests compensation under Section 3.2,   or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender   or any Governmental Authority for the account of any Lender pursuant to Section 3.3 and, in each   case, such Lender has declined or is unable to designate a different lending office in accordance   with Section 3.4(a), or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the   Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative   Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject   to the restrictions contained in, and consents required by, Section 11.5), all of its interests, rights   (other than its existing rights to payments pursuant to Section 3.2 or Section 3.3) and obligations   under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume   such obligations (which assignee may be another Lender, if a Lender accepts such assignment);   provided that:   (i) the Borrower shall have paid to the Administrative Agent the assignment   fee (if any) specified in Section 11.5;   (ii) such Lender shall have received payment of an amount equal to the   outstanding principal of its Loans and participations in Letter of Credit Borrowings,   accrued interest thereon, accrued fees and all other amounts payable to it hereunder and   under the other Credit Documents (including any amounts under Section 3.1) from the   assignee (to the extent of such outstanding principal and accrued interest and fees) or the   Borrower (in the case of all other amounts);   (iii) in the case of any such assignment resulting from a claim for compensation   under Section 3.2 or payments required to be made pursuant to Section 3.3, such   assignment will result in a reduction in such compensation or payments thereafter;   (iv) such assignment does not conflict with Applicable Law; and   (v) in the case of any assignment resulting from a Lender becoming a Non-   Consenting Lender, the applicable assignee shall have consented to the applicable   amendment, waiver or consent.   A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a   waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment   and delegation cease to apply.   Section 4 GUARANTY   Section 4.1 The Guaranty.   Each of the Guarantors hereby jointly and severally guarantees to each Lender, each Swap Bank,   each Treasury Management Bank, and the Administrative Agent as hereinafter provided, as primary obligor   and not as surety, the prompt payment of the Obligations in full when due (whether at stated maturity, as a   mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) strictly in   accordance with the terms thereof.  The Guarantors hereby further agree that if any of the Obligations are   not paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a   mandatory Cash Collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay   the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment   or renewal of any of the Obligations, the same will be promptly paid in full when due (whether at extended     

 

   73   maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise)   in accordance with the terms of such extension or renewal.   Notwithstanding any provision to the contrary contained herein or in any other of the Credit   Documents, Swap Contracts or Treasury Management Agreements, (a) the obligations of each Guarantor   under this Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the   largest amount that would not render such obligations subject to avoidance under the Debtor Relief Laws   or any comparable provisions of any applicable state law and (b) no Guarantor shall be deemed under this   Section 4 to be a guarantor of any Obligations arising under any Swap Contracts if such Guarantor was not   an “Eligible Contract Participant” as defined in § 1a(18) of the Commodity Exchange Act, as further defined   and modified by the final rules issued jointly by the Commodity Futures Trading Commission and the SEC   as published in 77 FR 30596 (May 23, 2012) (as amended, modified or replaced from time to time,   collectively, with the Commodity Exchange Act, the “ECP Rules”), at the time the guaranty of such   obligations was entered into, and at such other relevant time or time as provided in the ECP Rules or   otherwise, and to the extent that the providing of such guaranty by such Guarantor would violate the ECP   Rules or any other Applicable Law or regulation; provided however that in determining whether any   Guarantor is an “Eligible Contract Participant” under the ECP Rules, the guaranty of the Obligations of   such Guarantor under this Article IV by a Guarantor that qualifies as an “Eligible Contract Participant”   under § 1a(18)(A)(v)(I) of the Commodity Exchange Act shall be taken into account.    Section 4.2 Obligations Unconditional.   The obligations of the Guarantors under Section 4.1 are joint and several, absolute and   unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the   Credit Documents, Swap Contracts or Treasury Management Agreements, or any other agreement or   instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee   of or security for any of the Obligations, and, to the fullest extent permitted by Applicable Law, irrespective   of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or   equitable discharge or defense of a surety or guarantor, it being the intent of this Section 4.2 that the   obligations of the Guarantors hereunder shall be absolute and unconditional under any and all   circumstances.  Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity,   reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this   Section 4 until the Termination Date.  Without limiting the generality of the foregoing, it is agreed that, to   the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or   impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described   above:   (a) at any time or from time to time, without notice to any Guarantor, the time for any   performance of or compliance with any of the Obligations shall be extended, or such performance   or compliance shall be waived;   (b) any of the acts mentioned in any of the provisions of any of the Credit Documents,   any Swap Contract between any Credit Party and any Swap Bank, or any Treasury Management   Agreement between any Credit Party and any Treasury Management Bank, or any other agreement   or instrument referred to in the Credit Documents, such Swap Contracts or such Treasury   Management Agreements shall be done or omitted;   (c) the maturity of any of the Obligations shall be accelerated, or any of the   Obligations shall be modified, supplemented or amended in any respect, or any right under any of   the Credit Documents, any Swap Contract between any Credit Party and any Swap Bank or any   Treasury Management Agreement between any Credit Party and any Treasury Management Bank,     

 

   74   or any other agreement or instrument referred to in the Credit Documents, such Swap Contracts or   such Treasury Management Agreements shall be waived or any other guarantee of any of the   Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or   otherwise dealt with;   (d) as may be applicable at any time, any Lien granted to, or in favor of, the   Administrative Agent or any Lender or Lenders as security for any of the Obligations shall fail to   attach or be perfected; or   (e) any of the Obligations shall be determined to be void or voidable (including,   without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the   claims of any Person (including, without limitation, any creditor of any Guarantor).   With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence,   presentment, demand of payment, protest and all notices whatsoever, and any requirement that the   Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person   under any of the Credit Documents, any Swap Contract between any Credit Party and any Swap Bank or   any Treasury Management Agreement between any Credit Party and any Treasury Management Bank, or   any other agreement or instrument referred to in the Credit Documents, such Swap Contracts or such   Treasury Management Agreements, or against any other Person under any other guarantee of, or security   for, any of the Obligations.   Section 4.3 Reinstatement.   The obligations of the Guarantors under this Section 4 shall be automatically reinstated if and to   the extent that for any reason any payment by or on behalf of any Person in respect of the Obligations is   rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any   proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify   the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including,   without limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent   or such Lender in connection with such rescission or restoration, including any such costs and expenses   incurred in defending against any claim alleging that such payment constituted a preference, fraudulent   transfer or similar payment under any bankruptcy, insolvency or similar law.   Section 4.4 Certain Additional Waivers.   Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the   Obligations, except through the exercise of rights of subrogation pursuant to Section 4.2 and through the   exercise of rights of contribution pursuant to Section 4.6.   Section 4.5 Remedies.   The Guarantors agree that, to the fullest extent permitted by law, as between the Guarantors, on the   one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared   to be forthwith due and payable as provided in Section 9.2 (and shall be deemed to have become   automatically due and payable in the circumstances provided in said Section 9.2) for purposes of Section   4.1 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the   Obligations from becoming automatically due and payable) as against any other Person and that, in the   event of such declaration (or the Obligations being deemed to have become automatically due and payable),   the Obligations (whether or not due and payable by any other Person) shall forthwith become due and   payable by the Guarantors for purposes of Section 4.1.       

 

   75   Section 4.6 Rights of Contribution.   The Guarantors agree among themselves that, in connection with payments made hereunder, each   Guarantor shall have contribution rights against the other Guarantors as permitted under Applicable Law.    Such contribution rights shall be subordinate and subject in right of payment to the obligations of such   Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution until   the Termination Date.   Section 4.7 Guarantee of Payment; Continuing Guarantee.   The guarantee in this Section 4 is a guaranty of payment and not of collection, is a continuing   guarantee, and shall apply to all Obligations whenever arising.    Section 4.8 Keepwell.   Each Credit Party that is a Qualified ECP Guarantor at the time the Guaranty or the grant of a Lien   under the Credit Documents, in each case, by any Specified Credit Party becomes effective with respect to   any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes   to provide such funds or other support to each Specified Credit Party with respect to such Swap Obligation   as may be needed by such Specified Credit Party from time to time to honor all of its obligations under the   Credit Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount   of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations   and undertakings under this Section 4 voidable under Applicable Law relating to fraudulent conveyance or   fraudulent transfer, and not for any greater amount).  The obligations and undertakings of each Qualified   ECP Guarantor under this Section shall remain in full force and effect until the Termination Date.  Each   Credit Party intends this Section to constitute, and this Section shall be deemed to constitute, a guarantee   of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Credit   Party for all purposes of the Commodity Exchange Act or any regulations promulgated thereunder.   Section 5 CONDITIONS PRECEDENT   Section 5.1 Conditions Precedent to Effective Date.  The effectiveness of this Agreement and   the making of the Term Loan on the Effective Date and any Credit Extension to be made on the Effective   Date is subject to the satisfaction of the following conditions on or before the Effective Date:   (a) Executed Credit Documents.  Receipt by the Administrative Agent of fully   executed counterparts of the following:   (i) this Agreement.   (ii) a Revolving Loan Note in favor of each Revolving Lender requesting a   Note.   (iii) a Term Note in favor of each Term Lender requesting a Note.   (iv) a Borrowing Base Certificate.   (v) a Compliance Certificate.     

 

   76   (vi) each of the other Credit Documents which is to be executed on the   Effective Date, in each case in form and substance reasonably satisfactory to the   Administrative Agent and the Lenders and duly executed by the appropriate parties thereto.   (b) Organizational Documents.  Receipt by the Administrative Agent of the following:   (i) Charter Documents.  Copies of articles of incorporation, certificate of   organization or formation, or other like document for each of the Credit Parties certified as   of a recent date by the appropriate Governmental Authority.   (ii) Organizational Documents Certificate.  (i) Copies of bylaws, operating   agreement, partnership agreement or like document, (ii) copies of resolutions approving   the transactions contemplated in connection with the financing and authorizing execution   and delivery of the Credit Documents, and (iii) incumbency certificates, for each of the   Credit Parties, in each case certified by an Authorized Officer in form and substance   reasonably satisfactory to the Administrative Agent.   (iii) Good Standing Certificate.  Copies of certificates of good standing,   existence or other like document for each of the Credit Parties, dated as of a recent date,   from the appropriate Governmental Authority of its jurisdiction of formation or   organization.   (iv) Closing Certificate.  A certificate from an Authorized Officer of the   Borrower, in form and substance reasonably satisfactory to the Administrative Agent,   confirming, among other things, (A) all consents, approvals, authorizations, registrations,   or filings required to be made or obtained by the Borrower and the other Credit Parties, if   any, in connection with this Agreement and the other Credit Documents and the   transactions contemplated herein and therein have been obtained and are in full force and   effect, (B) no investigation or inquiry by any Governmental Authority regarding this   Agreement and the other Credit Documents and the transactions contemplated herein and   therein is ongoing, (C) since the date of the most-recent financial statements for the   Borrower, there has been no event or circumstance which could be reasonably expected to   have a Material Adverse Effect, (D) the most recent financial statements were prepared in   accordance with GAAP consistently applied, except as noted therein, and fairly presents in   all material respects the financial condition and results from operations of the Parent and   its Subsidiaries, and (E) as of the Effective Date, the Borrower, the Parent and the other   Credit Parties, individually and taken as a whole, are Solvent.   (c) Opinions of Counsel.  Receipt by the Administrative Agent of customary opinions   of counsel (including local counsel to the extent required by the Administrative Agent) for each of   the Credit Parties addressed to and/or for the benefit of the Administrative Agent and the Lenders,   including, among other things, opinions regarding the due authorization, execution and delivery of   the Credit Documents, the enforceability thereof and the perfection of the Liens granted thereunder   or pursuant thereto.   (d) Other Due Diligence Matters.  Without limiting the foregoing (but without   duplication), satisfaction of all of the following conditions:   (i) All due diligence with respect to the Parent, the Borrower, the other   Guarantors and the Unencumbered Property Owners shall be satisfactory to the   Administrative Agent, the Lead Arrangers and the Lenders, including, without limitation,     

 

   77   all diligence required for each Lender to complete its Patriot Act and “know your   customer” requirements;    (ii) If requested by Administrative Agent, searches of Uniform Commercial   Code filings in the jurisdiction of organization of each Credit Party, copies of the financing   statements on file in such jurisdictions and evidence that no Liens exist other than   Permitted Liens.   (iii) There exists no action, suit, investigation or proceeding, pending or   threatened, in any court or before any arbitrator or other Governmental Authority that   purports to affect any transaction contemplated hereby or by any of the other Credit   Documents, or that will have a Material Adverse Effect on the Parent, the Borrower, the   other Guarantors, the Unencumbered Property Owners, their Affiliates or their   Subsidiaries, except to the extent approved by the Administrative Agent;   (iv) Each of the Parent, the Borrower, the other Guarantors, the Unencumbered   Property Owners and their respective Subsidiaries are in compliance with all terms and   covenants set forth herein and in each of the other Credit Documents; and   (v) The Administrative Agent, the Lead Arrangers and the Lenders shall have   received pro forma financial projections for the Parent, the Borrower and their respective   Subsidiaries on a consolidated basis, for Fiscal Years ended December 31, 2016, December   31, 2017 and December 31, 2018, respectively, which pro form financial projections shall   be acceptable to the Administrative Agent, the Lead Arrangers and the Lenders, in their   sole discretion.   (e) Funding Notice; Funds Disbursement Instructions.  The Administrative Agent   shall have received (a) a duly executed Funding Notice with respect to the funding of the Term   Loan and any other Credit Extension to occur on the Effective Date (if any) and (b) duly executed   disbursement instructions (with wiring instructions and account information) for all disbursements   to be made on the Effective Date (if any).   (f) Fees and Expenses.  The Administrative Agent shall have confirmation that all   reasonable and documented out-of-pocket fees and expenses required to be paid on or before the   Effective Date have been paid, including the reasonable and documented out-of-pocket fees and   expenses of counsel for the Administrative Agent.   For purposes of determining compliance with the conditions specified in this Section 5.1, each Lender that   has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied   with, each document or other matter required thereunder to be consented to or approved by or acceptable   or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender   prior to the proposed Effective Date specifying its objection thereto.   The funding of the initial Loans hereunder (whether on the Effective Date or on a later Credit Date) shall   evidence the satisfaction of the foregoing conditions.   Section 5.2 Conditions to Term Loan and Each Credit Extension.  The obligation of each   Revolving Lender to fund its Revolving Commitment Percentage of any Credit Extension on any Credit   Date, including the Effective Date, and the obligation of each Term Lender to fund its portion of the Term   Loan on any Credit Date, are subject to the satisfaction, or waiver in accordance with Section 11.4, of the   following conditions precedent:     

 

   78   (a) the Administrative Agent shall have received a fully executed and delivered   Funding Notice, together with the documentation and certifications required therein with respect to   each Credit Extension or the Term Loan, as applicable;   (b) after making the Credit Extension requested on such Credit Date, (i) the aggregate   outstanding principal amount of the Revolving Loans shall not exceed the lesser of (A) the   aggregate Revolving Commitments then in effect, and (B) the Borrowing Base as of such Credit   Date, and (ii) if such Credit Extension is the advance of the Term Loan, the aggregate principal   amount of the Term Loan shall not exceed the Borrowing Base as of such Credit Date;   (c) as of such Credit Date or the Effective Date, as applicable, the representations and   warranties contained herein and in the other Credit Documents shall be true and correct in all   material respects on and as of that date to the same extent as though made on and as of that date   (with any representations and warranties which are subject to a materiality qualifier being true and   correct in all respects in accordance with the terms thereof), except to the extent such   representations and warranties specifically relate to an earlier date, in which case such   representations and warranties shall have been true and correct in all material respects on and as of   such earlier date;   (d) as of such Credit Date or the Effective Date, as applicable, no event shall have   occurred and be continuing or would result from the consummation of the applicable Credit   Extension or the making of the Term Loan that would constitute an Event of Default or a Default;   and   (e) all of the conditions precedent set forth in Section 5.1 shall have been satisfied on   or prior to such Credit Date or the Effective Date, as applicable.   The Administrative Agent or the Required Lenders shall be entitled, but not obligated to, request and   receive, prior to the making of any Credit Extension, additional information reasonably satisfactory to the   requesting party confirming the satisfaction of any of the foregoing if, in the reasonable good faith judgment   of such Administrative Agent or Required Lenders, such request is warranted under the circumstances.   Section 6 REPRESENTATIONS AND WARRANTIES   In order to induce the Administrative Agent and the Lenders to enter into this Agreement and to   make each Credit Extension to be made thereby and to make the Term Loan on the Effective Date, the   Borrower, Parent and each other Credit Party, as applicable, represents and warrants to the Administrative   Agent and each of the Lenders, on the Effective Date that:   Section 6.1 Organization; Requisite Power and Authority; Qualification.  Each Credit Party   and each Unencumbered Property Owner  (a) is duly organized, validly existing and in good standing under   the laws of its jurisdiction of organization as identified in Schedule 6.1, (b) has all requisite power and   authority to own and operate its properties, to carry on its business as now conducted and as proposed to be   conducted, (c) as to each Credit Party only, to enter into the Credit Documents to which it is a party and to   carry out the transactions contemplated thereby, and (d) is qualified to do business and in good standing in   every jurisdiction where necessary to carry out its business and operations, except in jurisdictions where   the failure to be so qualified or in good standing has not had, and could not be reasonably expected to have,   a Material Adverse Effect.     

 

   79   Section 6.2 Capital Stock and Ownership.  Schedule 6.2 correctly sets forth the ownership   interest of the Borrower in its Subsidiaries as of the Effective Date.  The Capital Stock of each Credit Party   and its Subsidiaries has been duly authorized and validly issued and, to the extent applicable, is fully paid   and non-assessable.  Except as set forth on Schedule 6.2, as of the Effective Date, there is no existing option,   warrant, call, right, commitment, buy-sell, voting trust or other shareholder agreement or other agreement   to which any Subsidiary is a party requiring, and there is no membership interest or other Capital Stock of   any Subsidiary outstanding which upon conversion or exchange would require, the issuance by any   Subsidiary of any additional membership interests or other Capital Stock of any Subsidiary or other   Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a   membership interest or other Capital Stock of any Subsidiary.   Section 6.3 Due Authorization.  The execution, delivery and performance of the Credit   Documents have been duly authorized by all necessary action on the part of each Credit Party that is a party   thereto.   Section 6.4 No Conflict.  The execution, delivery and performance by Credit Parties of the   Credit Documents to which they are parties and the consummation of the transactions contemplated by the   Credit Documents do not and will not (a) violate in any material respect any provision of any Applicable   Laws relating to any Credit Party, any of the Organizational Documents of any Credit Party, or any order,   judgment or decree of any court or other agency of government binding on any Credit Party; (b) except as   would not reasonably be expected to have a Material Adverse Effect, conflict with, result in a breach of or   constitute (with due notice or lapse of time or both) a default under any other Contractual Obligations of   any Credit Party; (c) result in or require the creation or imposition of any Lien upon any of the properties   or assets of any Credit Party (other than any Liens created under any of the Credit Documents in favor of   the Administrative Agent for the benefit of the holders of the Obligations) whether now owned or hereafter   acquired; or (d) require any approval of stockholders, members or partners or any approval or consent of   any Person under any Contractual Obligation of any Credit Party (other than those which have already been   obtained or to the extent the failure to obtain any such approval or consent would not reasonably be expected   to have a Material Adverse Effect).   Section 6.5 Governmental Consents.  The execution, delivery and performance by the Credit   Parties of the Credit Documents to which they are parties and the consummation of the transactions   contemplated by the Credit Documents do not and will not require, as a condition to the effectiveness   thereof, any registration with, consent or approval of, or notice to, or other action to, with or by, any   Governmental Authority except for any filings, recordings or consents which heretofore have been obtained   or made, as applicable.   Section 6.6 Binding Obligation.  Each Credit Document has been duly executed and delivered   by each Credit Party that is a party thereto and is the legally valid and binding obligation of such Credit   Party, enforceable against such Credit Party in accordance with its respective terms, except as may be   limited by Debtor Relief Laws or by equitable principles relating to enforceability.   Section 6.7 Financial Statements.   (a) The audited consolidated balance sheet of the Parent and its Subsidiaries for the   most recent Fiscal Year ended, and the related consolidated statements of income or operations,   shareholders’ equity and cash flows for such fiscal year, including the notes thereto (i) were   prepared in accordance with GAAP consistently applied throughout the period covered thereby,   except as otherwise expressly noted therein; and (ii) fairly present in all material respects the   financial condition of the Consolidated Parties as of the date thereof and their results of operations     

 

   80   for the period covered thereby in accordance with GAAP consistently applied throughout the period   covered thereby, except as otherwise expressly noted therein.    (b) The unaudited consolidated balance sheet of the Parent and its Subsidiaries for the   most recent Fiscal Quarter ended, and the related consolidated statements of income or operations,   shareholders’ equity and cash flows for such Fiscal Quarter (i) were prepared in accordance with   GAAP consistently applied throughout the period covered thereby, except as otherwise expressly   noted therein, (ii) fairly present the financial condition of the Consolidated Parties as of the date   thereof and their results of operations for the period covered thereby, subject, in the case of clauses   (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments, and (iii) show all   material indebtedness and other liabilities, direct or contingent, of the Consolidated Parties as of   the date of such financial statements, including liabilities for taxes, material commitments and   Indebtedness.   (c) The consolidated pro forma balance sheet of the Borrower and its Subsidiaries as   the date of the formation of the Parent, and the related consolidated pro forma statements of income   and cash flows of the Borrower and its Subsidiaries for the period covered thereby, with a Financial   Officer Certification, copies of which have been furnished to each Lender, fairly present the   consolidated and consolidating pro forma financial condition of the Borrower and its Subsidiaries   as at such date and the consolidated pro forma results of operations of the Borrower and its   Subsidiaries for such period, all in accordance with GAAP.   (d) The annual operating budget consisting of statements of income or operations and   cash flows and other information for each of the Unencumbered Pool Properties (or any Real Estate   Assets or other properties proposed to be included as Unencumbered Pool Properties) supporting   pro forma covenant compliance calculations hereunder and delivered prior to the Effective Date or   otherwise pursuant to Section 7.1(d) were prepared in good faith on the basis of the assumptions   stated therein, which assumptions were fair in light of the conditions existing at the time of delivery   of such statements or other information, and represented, at the time of delivery, the Borrower’s   reasonable estimate of the future income, operations or cash flows for such Unencumbered Pool   Properties (or other Real Estate Assets or other properties).   Section 6.8 No Material Adverse Effect; No Default.   (a) No Material Adverse Effect.  Since the date of the formation or organization of the   Parent, no event, circumstance or change has occurred that has caused or evidences, either in any   case or in the aggregate, a Material Adverse Effect.   (b) No Default.  No Default has occurred and is continuing.   Section 6.9 Tax Matters.  Each Credit Party and its Subsidiaries have filed all federal, state and   other material tax returns and reports required to be filed, and have paid all federal, state and other material   taxes, assessments, fees and other governmental charges levied or imposed upon them or their respective   properties, assets, income, businesses and franchises otherwise due and payable, except those being actively   contested in good faith and by appropriate proceedings and for which adequate reserves have been provided    in accordance with GAAP.  There is no proposed tax assessment against any Credit Party or any of its   Subsidiaries that would, if made, have a Material Adverse Effect.   Section 6.10 Properties.     

 

   81   (a) Title.  Each of the Credit Parties and its Subsidiaries has (i) good, insurable and   fee simple title to (in the case of fee interests in real property), (ii) valid leasehold interests in (in   the case of leasehold interests in real or personal property), and (iii) good title to (in the case of all   other personal property), all of their respective properties and assets (including without limitation   each of the Unencumbered Pool Properties) reflected in their financial statements and other   information referred to in Section 6.7 and in the most recent financial statements delivered pursuant   to Section 7.1, in each case except for assets disposed of since the date of such financial statements   as permitted under Section 8.10.  All such properties and assets are free and clear of Liens other   than Permitted Liens.   (b) Real Estate Assets.  As of the Effective Date, Schedule 6.10(b) contains a true,   accurate and complete list of all Real Estate Assets of the Credit Parties and the Unencumbered   Property Owners.   (c) Intellectual Property.  Each of the Credit Parties and its Subsidiaries owns or is   validly licensed to use all Intellectual Property that is necessary for the present conduct of its   business, free and clear of Liens (other than Permitted Liens), without conflict with the rights of   any other Person unless the failure to own or benefit from such valid license could not, individually   or in the aggregate, reasonably be expected to have a Material Adverse Effect.  To the knowledge   of each Credit Party, no Credit Party nor any of its Subsidiaries is infringing, misappropriating,   diluting, or otherwise violating the Intellectual Property rights of any other Person unless such   infringement, misappropriation, dilution or violation could not, individually or in the aggregate,   reasonably be expected to have a Material Adverse Effect.   Section 6.11 Environmental Matters.  No Credit Party nor any of its Subsidiaries nor any of   their respective current Facilities (solely during and with respect to Person’s ownership thereof) or   operations, and to their knowledge, no former Facilities (solely during and with respect to any Credit Party   or its Subsidiary’s ownership thereof), is or are subject to any outstanding order, ongoing consent decree   or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or   any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to   have a Material Adverse Effect; (b) no Credit Party nor any of its Subsidiaries has received any letter or   request for information under Section 104 of the Comprehensive Environmental Response, Compensation,   and Liability Act (42 U.S.C. § 9604) or any comparable state law; (c) to each Credit Party’s and its   Subsidiaries’ knowledge after due inquiry, there are no, and have been no, Hazardous Materials Activities   which could reasonably be expected to form the basis of an Environmental Claim against such Credit Party   or any of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a   Material Adverse Effect; (d) no Credit Party nor any of its Subsidiaries has filed any notice under any   Environmental Law indicating past or present treatment of Hazardous Materials at any Facility (solely   during and with respect to such Credit Party or its Subsidiary’s ownership thereof), and neither the   Borrower’s nor any of its Subsidiaries’ operations involves the generation, transportation, treatment, storage   or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260-270 or any equivalent state rule   defining hazardous waste.  Compliance by the Credit Parties and their respective Subsidiaries with all   current requirements pursuant to or under Environmental Laws could not be reasonably expected to have,   individually or in the aggregate, a Material Adverse Effect.   Section 6.12 No Defaults.  No Credit Party nor any of its Subsidiaries is in default in the   performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any   of its Contractual Obligations (other than Contractual Obligations relating to Indebtedness), except in each   case where the consequences, direct or indirect, of such default or defaults, if any, could not reasonably be   expected to have a Material Adverse Effect.     

 

   82   Section 6.13 No Litigation or other Adverse Proceedings.  There are no Adverse Proceedings   that (a) purport to affect or pertain to this Agreement or any other Credit Document, or any of the   transactions contemplated hereby or (b) could reasonably be expected to have a Material Adverse Effect.    Neither the Borrower nor any of its Subsidiaries is subject to or in default with respect to any final   judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority that,   individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.   Section 6.14 Information Regarding the Borrower and its Subsidiaries.  Set forth on Schedule   6.14, is the jurisdiction of organization, the exact legal name (and for the prior five years or since the date   of its formation has been) of the Borrower and each of its Subsidiaries and the true and correct U.S. taxpayer   identification number (or foreign equivalent, if any) of the Borrower, in each case as of the Effective Date.   Section 6.15 Governmental Regulation.   (a) No Credit Party nor any of its Subsidiaries is subject to regulation under the   Investment Company Act of 1940.  No Credit Party nor any of its Subsidiaries is an “investment   company” or a company “controlled” by a “registered investment company” or a “principal   underwriter” of a “registered investment company” as such terms are defined in the Investment   Company Act of 1940.   (b) No Credit Party nor any of its Subsidiaries is an “enemy” or an “ally of the enemy”   within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America   (50 U.S.C. App. §§ 1 et seq.).  To its knowledge, no Credit Party nor any of its Subsidiaries is in   violation of (a) the Trading with the Enemy Act, (b) any of the foreign assets control regulations   of the United States Treasury Department (31 CFR, Subtitle B, Chapter V) or any enabling   legislation or executive order relating thereto or (c) the Patriot Act.  No Credit Party nor any of its   Subsidiaries (i) is a blocked person described in Section 1 of the Anti-Terrorism Order or (ii) to its   knowledge, engages in any dealings or transactions, or is otherwise associated, with any such   blocked person.   (c) None of the Credit Parties or their Subsidiaries or their respective Affiliates is in   violation of any of the country or list based economic and trade sanctions administered and enforced   by OFAC that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/ or   as otherwise published from time to time.   (d) None of the Credit Parties or their Subsidiaries or their respective Affiliates (i) is   a Sanctioned Person or a Sanctioned Entity, (ii) has any of its assets located in Sanctioned Entities,   or (iii) derives any of its operating income from investments in, or transactions with Sanctioned   Persons or Sanctioned Entities.  The proceeds of any Loan will not be used and have not been used   to fund any operations in, finance any investments or activities in or make any payments to, a   Sanctioned Person or a Sanctioned Entity.    (e) Each Credit Party and its Subsidiaries is in compliance with the Foreign Corrupt   Practices Act, 15 U.S.C. §§ 78dd-1, et seq., and any foreign counterpart thereto.  None of the Credit   Parties or their respective Subsidiaries has made a payment, offering, or promise to pay, or   authorized the payment of, money or anything of value (a) in order to assist in obtaining or retaining   business for or with, or directing business to, any foreign official, foreign political party, party   official or candidate for foreign political office, (b) to a foreign official, foreign political party or   party official or any candidate for foreign political office, and (c) with the intent to induce the   recipient to misuse his or her official position to direct business wrongfully to such Credit Party or     

 

   83   any of its Subsidiaries or to any other Person, in violation of the Foreign Corrupt Practices Act, 15   U.S.C. §§ 78dd-1, et seq.   (f) To the extent applicable, each Credit Party and its Subsidiaries are in compliance   with Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and   Obstruct Terrorism (USA Patriot Act of 2001) (as amended from time to time, the “Patriot Act”).   (g) No Credit Party or any of its Subsidiaries is engaged principally, or as one of its   important activities, in the business of extending credit for the purpose of purchasing or carrying   any Margin Stock.  No part of the proceeds of the Loans made to such Credit Party will be used to   purchase or carry any such Margin Stock or to extend credit to others for the purpose of purchasing   or carrying any such Margin Stock or for any purpose that violates, or is inconsistent with, the   provisions of Regulation T, U or X of the FRB as in effect from time to time.   Notwithstanding anything to the contrary contained in this Section 6.15, no representation or warranty is   made with respect to any Person (other than a Credit Party or a Related Party with respect to a Credit Party)   that owns or holds Capital Stock of the Parent or the Borrower or any of their respective Subsidiaries or   Affiliates.   Section 6.16 Employee Matters.  No Credit Party nor any of its Subsidiaries is engaged in any   unfair labor practice that could reasonably be expected to have a Material Adverse Effect.  There is (a) no   unfair labor practice complaint pending against any Credit Party or any of its Subsidiaries, or to the best   knowledge of each Credit Party, threatened against any of them before the National Labor Relations Board   and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that   is so pending against any Credit Party or any of its Subsidiaries or to the best knowledge of each Credit   Party, threatened against any of them, (b) no strike or work stoppage in existence or to the knowledge of   each Credit Party, threatened that involves any Credit Party or any of its Subsidiaries, and (c) to the best   knowledge of each Credit Party, no union representation question existing with respect to the employees of   any Credit Party or any of its Subsidiaries and, to the best knowledge of each Credit Party, no union   organization activity that is taking place, except (with respect to any matter specified in clause (a), (b) or   (c) above, either individually or in the aggregate) such as could not reasonably be expected to have a   Material Adverse Effect.   Section 6.17 Pension Plans.  (a) Except as could not reasonably be expected to have a Material   Adverse Effect, each of the Credit Parties and their Subsidiaries are in compliance with all applicable   provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published   interpretations thereunder with respect to its Pension Plan, and have performed all their obligations under   each Pension Plan in all material respects, (b) each Pension Plan which is intended to qualify under Section   401(a) of the Internal Revenue Code has received a favorable determination letter or is the subject of a   favorable opinion letter from the Internal Revenue Service indicating that such Pension Plan is so qualified   and, to the best knowledge of the Credit Parties, nothing has occurred subsequent to the issuance of such   determination letter which would cause such Pension Plan to lose its qualified status except where such   event could not reasonably be expected to result in a Material Adverse Effect, (c) except as could not   reasonably be expected to have a Material Adverse Effect, no liability to the PBGC (other than required   premium payments), the Internal Revenue Service, any Pension Plan (other than for routine claims and   required funding obligations in the ordinary course) or any trust established under Title IV of ERISA has   been incurred by any Credit Party, any of its Subsidiaries or any of their ERISA Affiliates, (d) except as   would not reasonably be expected to have a Material Adverse Effect, no ERISA Event has occurred, and   except to the extent required under Section 4980B of the Internal Revenue Code and Section 601 et seq. of   ERISA or similar state laws and except as could not reasonably be expected to have a Material Adverse     

 

   84   Effect, no Pension Plan provides health or welfare benefits (through the purchase of insurance or otherwise)   for any retired or former employee of any Credit Party or any of their Subsidiaries.   Section 6.18 Solvency.  The Borrower, the Parent and the other Credit Parties, individually and   taken as a whole, are, and on each Credit Date will be, Solvent.   Section 6.19 Compliance with Laws.  Each Credit Party and its Subsidiaries is in compliance   with (a) the Patriot Act and OFAC rules and regulations as provided in Section 6.15 and (b) except such   noncompliance with such other Applicable Laws that, individually or in the aggregate, could not reasonably   be expected to result in a Material Adverse Effect, all other Applicable Laws.  Each Credit Party and its   Subsidiaries possesses all certificates, authorities or permits issued by appropriate Governmental   Authorities necessary to conduct the business now operated by them and the failure of which to have could   reasonably be expected to have a Material Adverse Effect and have not received any notice of proceedings   relating to the revocation or modification of any such certificate, authority or permit the failure of which to   have or retain could reasonably be expected to have a Material Adverse Effect.   Section 6.20 Disclosure.  No representation or warranty of any Credit Party contained in any   Credit Document or in any other documents, certificates or written statements furnished to the Lenders by   or on behalf of the Borrower or any of its Subsidiaries for use in connection with the transactions   contemplated hereby (other than projections and pro forma financial information contained in such   materials) contains any untrue statement of a material fact or omits to state a material fact (known to any   Credit Party, in the case of any document not furnished by any of them) necessary in order to make the   statements contained herein or therein not misleading in any material manner in light of the circumstances   in which the same were made.  Any projections and pro forma financial information contained in such   materials are based upon good faith estimates and assumptions believed by the Credit Parties to be   reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such   projections as to future events are not to be viewed as facts and that actual results during the period or   periods covered by any such projections may differ from the projected results and that such differences may   be material.  There are no facts known to any Credit Party (other than matters of a general economic nature)   that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect   and that have not been disclosed herein or in such other documents, certificates and statements furnished to   the Lenders.   Section 6.21 Insurance; No Casualty or Condemnation.  The properties of the Credit Parties and   their Subsidiaries are insured with financially sound and reputable insurance companies that are not   Affiliates of such Persons, in such amounts, with such deductibles and covering such risks as are   customarily carried by companies engaged in similar businesses and owning similar properties in localities   where the applicable Credit Party or the applicable Subsidiary operates.  As of the Effective Date, to the   best of Borrower’s knowledge no uninsured casualty has occurred and no condemnation or condemnation   proceeding shall have been instituted with respect to any of the Real Estate Assets owned by each Credit   Party and its Subsidiaries.   Section 6.22 Healthcare Facility Representations and Warranties.     (a) Compliance With Healthcare Laws.  Without limiting the generality of Section   6.19 hereof or any other representation or warranty made herein, no Credit Party and, to the   knowledge of the Credit Parties, no Tenant, is in material violation of any applicable statutes, laws,   ordinances, rules and regulations of any Governmental Authority with respect to regulatory matters   primarily relating to patient healthcare (including without limitation Section 1128B of the Social   Security Act, as amended, 42 U.S.C. Section 1320a 7b (Criminal Penalties Involving Medicare or   State Health Care Programs), commonly referred to as the “Federal Anti-Kickback Statute,” and     

 

   85   Section 1877 of the Social Security Act, as amended, 42 U.S.C. Section 1395nn (Prohibition   Against Certain Referrals), commonly referred to as “Stark Statute” (collectively, “Healthcare   Laws”) where such violation would result in a Material Adverse Effect.  The Credit Parties and, to   the knowledge of the Credit Parties, each of the Tenants, have maintained in all material respects   all records required to be maintained by the Food and Drug Administration, Drug Enforcement   Agency and State Boards of Pharmacy and the federal and state Medicare and Medicaid programs   as required by the Healthcare Laws and, to the knowledge of the Credit Parties, there are no notices   of material violations of the Healthcare Laws with respect to any Credit Party, any Tenant or any   of the Real Estate Assets owned by any Credit Party.   (b) Licenses, Permits, and Certifications.     (i) To the knowledge of the Credit Parties and each Unencumbered Property   Owner, each Tenant has such permits, licenses, franchises, certificates and other approvals   or authorizations of Governmental Authorities as are necessary under applicable law or   regulations to own its properties and to conduct its business and to receive reimbursement   under Medicare and Medicaid (including without limitation such permits as are required   under such federal, state and other health care laws, and under such HMO or similar   licensure laws and such insurance laws and regulations, as are applicable thereto), if the   failure to obtain such permits, licenses, franchises, certificates and other approvals or   authorizations could reasonably be expected to result in a Material Adverse Effect.    Notwithstanding the foregoing, no Credit Party or Unencumbered Property Owner is the   owner of any licenses or permits required for the provision of Medical Services at any of   the Real Estate Assets owned by any Credit Party or Unencumbered Property Owner.   (ii) To the knowledge of the Credit Parties and the Unencumbered Property   Owners, each Tenant has all Medicare, Medicaid and related agency supplier billing   number(s) and related documentation necessary to receive reimbursement from Medicare   and/or Medicaid for any Medical Service furnished by such Person in any jurisdiction   where it conducts business if the failure to obtain billing number(s) or related   documentation could reasonably be expected to result in a Material Adverse Effect.  To the   knowledge of the Credit Parties and the Unencumbered Property Owners, no Tenant is   currently subject to suspension, revocation, renewal or denial of its Medicare and/or   Medicaid certification, supplier billing number(s), or Medicare and/or Medicaid   participation agreement(s).   (c) HIPAA Compliance.  No Credit Party or Unencumbered Property Owner is a   “covered entity” within the meaning of HIPAA.  In addition, to the knowledge of the Credit Parties,   no Credit Party or Unencumbered Property Owner is the subject of any civil or criminal penalty,   process, claim, action or proceeding, or any administrative or other regulatory review, survey,   process or proceeding (other than routine surveys or reviews conducted by any government health   plan or other accreditation entity) that could reasonably be expected to cause a Material Adverse   Effect.   (d) Medical Services.  No Credit Party or Unencumbered Property Owner is in the   business of providing Medical Services.   Section 6.23 REIT Status.  For all dates prior to the first date upon which the Parent elects to be   qualified as a REIT, the Parent has been organized and operated in a manner such that upon its election of   REIT status, it shall be treated as a REIT for purposes of the Internal Revenue Code.  For all dates thereafter,     

 

   86   the Parent is qualified as a REIT.  The Borrower is a partnership or other disregarded entity for federal   income tax purposes under the Internal Revenue Code.   Section 6.24 Unencumbered Pool Properties.  Schedule 6.24 (as updated pursuant to the terms   hereof through the delivery of a Borrowing Base Certificate, including pursuant to Section 8.17) is, in all   material respects, a true and complete list of (i) the street address of each Unencumbered Pool Property, (ii)   the Unencumbered Property Owner which owns or leases, pursuant to an Eligible Ground Lease, each such   Unencumbered Pool Property, (iii) the facility type of each such Unencumbered Pool Property, (iv) the   name and address of the Approved Manager with respect to such Unencumbered Pool Property (if such   Unencumbered Pool Property is managed by a third-party property manager), and (iv) the Tenant Leases   to which each such Unencumbered Pool Property is subject, together with the name and addresses of the   applicable Tenants thereunder, the square footage demised to the applicable Tenants thereunder and the   termination dates thereof.  Each parcel of real property identified on Schedule 6.24 is a Real Estate Asset   that qualifies as an Unencumbered Pool Property pursuant to the terms hereof.  To the extent any such   Unencumbered Pool Property is leased by an Unencumbered Property Owner pursuant to an Eligible   Ground Lease, (i) such Eligible Ground Lease is in full force and effect and remains unmodified except to   the extent expressly permitted by Section 7.13(b)(vii); (ii) except as expressly permitted by Section   7.13(b)(vii), no rights in favor of the applicable Unencumbered Property Owner lessee have been waived,   canceled or surrendered; (iii) except as expressly permitted by Section 7.13, no election or option under   such Eligible Ground Lease has been exercised by the Unencumbered Property Owner ground lessee (other   than options to renew or extend the term thereof); (iv) all rental and other charges due and payable   thereunder have been paid in full (except to the extent such payment is not yet overdue subject to applicable   cure or grace periods); (v) no Unencumbered Property Owner is in default under such Eligible Ground   Lease (beyond any applicable cure or grace periods) which would permit the applicable ground lessor to   terminate or exercise any other remedy with respect to the applicable Eligible Ground Lease, nor has any   Unencumbered Property Owner received any notice of default with respect to such Eligible Ground Lease   that has not been delivered to the Administrative Agent pursuant to Section 7.13(b)(viii); (vi) to the   knowledge of the Unencumbered Property Owners, the ground lessor under such Eligible Ground Lease is   not in default with respect to its material obligations thereunder; (vii) a true and correct copy of such Eligible   Ground Lease (together with any amendments, modifications, restatements or supplements thereof) has   been delivered to the Administrative Agent; and (viii) there exist no adverse claims as to the applicable   Unencumbered Property Owner’s title or right to possession of the leasehold premises referenced in such   Eligible Ground Lease.   Section 7 AFFIRMATIVE COVENANTS   Each Credit Party covenants and agrees that until the date on which the Obligations shall have been   paid in full or otherwise satisfied (other than with respect to contingent indemnification obligations for   which no claim has been made and Letters of Credit that have been Cash Collateralized and other   obligations of each Credit Party hereunder or under any other Credit Document which, by their express   terms, survive such payment in full or satisfaction), and the Commitments hereunder shall have expired or   been terminated (such date, the “Termination Date”), such Credit Party shall perform, and shall cause each   of its Subsidiaries to perform, all covenants in this Section 7.   Section 7.1 Financial Statements and Other Reports.  The Borrower will deliver, or will cause   to be delivered, to the Administrative Agent (on behalf of the Lenders):   (a) Quarterly Financial Statements for the Parent and its Subsidiaries.  As soon as   available and in no event later than the earlier of (i) the date that is forty-five (45) days after the   end of each Fiscal Quarter of each Fiscal Year (excluding the fourth Fiscal Quarter), or (ii) the date   that is ten (10) days after the filing of Parent’s 10Q Report with the SEC for such Fiscal Quarter,     

 

   87   the consolidated and consolidating balance sheets of the Parent and its Subsidiaries as at the end of   such Fiscal Quarter and the related consolidated and consolidating statements of income,   stockholders’ equity and cash flows of the Parent and its Subsidiaries for such Fiscal Quarter and   for the period from the beginning of the then current Fiscal Year to the end of such Fiscal Quarter,   setting forth in each case in comparative form the corresponding figures for the corresponding   periods of the previous Fiscal Year, all in reasonable detail, together with (x) a Financial Officer   Certification with respect thereto and (y) a statement of the consolidated Funds From Operations   of the Parent and its Subsidiaries;   (b) Audited Annual Financial Statements for the Parent and its Subsidiaries.  As soon   as available and in no event later than the earlier of (x) the date that is ninety (90) days after the   end of each Fiscal Year, or (y) the date that is ten (10) days after the filing of Parent’s 10K Report   with the SEC for such Fiscal Year, (i) the consolidated and consolidating balance sheets of the   Parent and its Subsidiaries as at the end of such Fiscal Year and the related consolidated and   consolidating statements of income, stockholders’ equity and cash flows of the Parent and its   Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the corresponding   figures for the previous Fiscal Year, in reasonable detail, together with (x) a Financial Officer   Certification with respect thereto and (y) a statement of the consolidated Funds From Operations   of the Parent and its Subsidiaries; and (ii) with respect to such consolidated financial statements a   report thereon of Plante & Moran, PLLC or other independent certified public accountants of   recognized national standing selected by the Parent, which report shall be unqualified as to going   concern and scope of audit, and shall state that such consolidated financial statements fairly present,   in all material respects, the consolidated financial position of the Parent and its Subsidiaries as at   the dates indicated and the results of their operations and their cash flows for the periods indicated   in conformity with GAAP applied on a basis consistent with prior years (except as otherwise   disclosed in such financial statements) and that the examination by such accountants in connection   with such consolidated financial statements has been made in accordance with generally accepted   auditing standards);   (c) Compliance Certificate; Borrowing Base Certificate; Quarterly Operating   Statements for Unencumbered Pool Properties.    (i) Together with each delivery of the financial statements pursuant to clauses   (a) and (b) of Section 7.1, a duly completed Compliance Certificate (including all back-up   calculations); and   (ii) As soon as available, and in any event within forty-five (45) days after the   end of each Fiscal Quarter of each Fiscal Year (including the fourth Fiscal Quarter), and/or   within ten (10) Business Days after written request from the Administrative Agent, (A) a   duly completed Borrowing Base Certificate, and (B) if requested by the Administrative   Agent, quarterly operating statements (detailing current quarter and same period prior year,   year to date, and trailing 12-month profit and loss summary), occupancy information, a   rent roll (including rental rate and lease expiration detail) and other information required   to calculate Net Operating Income for each of the then-existing Unencumbered Pool   Properties;   (d) Annual Budget; Actual Capital Expenditures.  As soon as available, but in any   event on or prior March 1st of each calendar year, and in each case reasonably acceptable to the   Administrative Agent (i) quarterly forecasts prepared by management of the Parent or the Borrower   of consolidated balance sheets and statements of income or operations and cash flows of the Parent   and its Subsidiaries for the Fiscal Year beginning on January 1st of such year and (ii) an annual     

 

   88   operating budget consisting of statements of income or operations and cash flows and other   information for each of the Unencumbered Pool Properties supporting pro forma covenant   compliance calculations hereunder, for the Fiscal Year beginning on January 1st of such year   (including the Fiscal Year in which the Revolving Commitment Termination Date shall occur and   the Fiscal Year in which the Term Maturity Date shall occur).  In addition, as soon as available, but   in any event on or prior to March 1st of each calendar year, Borrower will deliver to the   Administrative Agent and the Lenders statements reflecting actual capital expenditures for each of   the Unencumbered Pool Properties, in each case for the most recent Fiscal Year then ended;   (e) Information Regarding Credit Parties.  Each Credit Party will furnish to the   Administrative Agent prompt written notice of any change (i) in such Credit Party’s legal name,   (ii) in such Credit Party’s corporate structure, or (iii) in such Credit Party’s Federal Taxpayer   Identification Number;   (f) Securities and Exchange Commission Filings.  Promptly after the same are filed,   copies of all annual, regular, periodic and special reports and registration statements that the Parent   may file or be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, provided   that any documents required to be delivered pursuant to this Section 7.1(f) shall be deemed to have   been delivered on the date (i) on which the Parent posts such documents, or provides a link thereto   on the Parent’s website; or (ii) on which such documents are posted on the Borrower’s behalf on   Debtdomain or another relevant website, if any to which each Lender and the Administrative Agent   have access (whether a commercial, third-party website or whether sponsored by the   Administrative Agent); provided further that: (x) upon written request by the Administrative Agent,   the Borrower shall deliver paper copies of such documents to the Administrative Agent for further   distribution to each Lender until a written request to cease delivering paper copies is given by the   Administrative Agent and (y) the Borrower shall notify (which may be by facsimile or electronic   mail) the Administrative Agent of the posting of any such documents and, upon written request by   the Administrative Agent, provide to the Administrative Agent by electronic mail electronic   versions (i.e., soft copies) of such documents.  Notwithstanding anything to the contrary, as to any   information contained in materials furnished pursuant to this Section 7.1(f), the Borrower shall not   be separately required to furnish such information under Sections 7.1(a) or (b) above or pursuant   to any other requirement of this Agreement or any other Credit Document.    (g) Notice of Default and Material Adverse Effect.  Promptly upon any Authorized   Officer of any Credit Party obtaining knowledge (i) of any condition or event (including, without   limitation, any Adverse Proceeding) that constitutes a Default or an Event of Default or that notice   has been given to any Credit Party with respect thereto; (ii) that any Person has given any notice to   any Credit Party or any of its Subsidiaries or taken any other action with respect to any event or   condition set forth in Section 9.1(b), or (iii) the occurrence of any Material Adverse Effect, a   certificate of its Authorized Officers specifying the nature and period of existence of such   condition, event or change, or specifying the notice given and action taken by any such Person and   the nature of such claimed Event of Default, Default, event or condition or change, and what action   the Credit Parties have taken, are taking and propose to take with respect thereto;   (h) ERISA.  (i) Promptly upon becoming aware of the occurrence of or forthcoming   occurrence of any ERISA Event, a written notice specifying the nature thereof, what action any   Credit Party, any of its Subsidiaries or any of their respective ERISA Affiliates has taken, is taking   or proposes to take with respect thereto and, when known, any action taken or threatened in writing   by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and   (ii) (1) promptly upon reasonable request of the Administrative Agent, copies of each Schedule B   (Actuarial Information) to the annual report (Form 5500 Series) filed by any Credit Party, any of     

 

   89   its Subsidiaries or any of their respective ERISA Affiliates with respect to each Pension Plan; and   (2) promptly after their receipt, copies of all notices received by any Credit Party, any of its   Subsidiaries or any of their respective ERISA Affiliates from a Multiemployer Plan sponsor   concerning an ERISA Event;   (i) Securities and Exchange Commission Investigations.  Promptly, and in any event   within five (5) Business Days after receipt thereof by any Credit Party or any Subsidiary thereof,   copies of each notice or other correspondence received from the Securities and Exchange   Commission (or comparable agency in any applicable non-U.S. jurisdiction) concerning any   investigation or possible investigation or other inquiry by such agency regarding financial or other   operational results of any Credit Party or any Subsidiary thereof; and   (j) Other Information.  (i) Promptly upon their becoming available, copies of all   financial statements, reports, notices and proxy statements and other communications sent or made   available generally by the Parent to its security holders acting in such capacity or by any Subsidiary   of the Parent to its security holders, if any, other than the Parent or another Subsidiary of the Parent,   provided that no Credit Party shall be required to deliver to the Administrative Agent or any Lender   the minutes of any meeting of its Board of Directors, and (ii) such other information and data with   respect to the Parent or any of its Subsidiaries as from time to time may be reasonably requested   by the Administrative Agent or the Required Lenders.   Each notice pursuant to clauses (g) and (h) of this Section 7.1 shall be accompanied by a statement   of an Authorized Officer of the Borrower setting forth details of the occurrence referred to therein and   stating what action the Borrower and/or the other applicable Credit Party has taken and proposes to take   with respect thereto.  Each notice pursuant to Section 7.1(g) shall describe with particularity any and all   provisions of this Agreement and any other Credit Document that have been breached.   Section 7.2 Existence.  Each Credit Party will, and will cause each of its Subsidiaries to, at all   times preserve and keep in full force and effect (a) its existence under the laws of its jurisdiction of   formation or organization, and (b) all rights and franchises, licenses and permits material to its business,   except in either case to the extent permitted by Section 8.10 or not constituting an Asset Sale hereunder.   Section 7.3 Payment of Taxes and Claims.  Borrower, Parent and each Unencumbered   Property Owner will, and will cause each of its respective Subsidiaries to, pay (a) all federal, state and other   material taxes imposed upon it or any of its properties or assets or in respect of any of its income, businesses   or franchises before any penalty or fine accrues thereon and (b) all claims (including claims for labor,   services, materials and supplies) for sums that have become due and payable and that by law have or may   become a Lien upon any of its properties or assets, prior to the time when any penalty or fine shall be   incurred with respect thereto; provided, no such tax or claim need be paid if it is being contested in good   faith by appropriate proceedings promptly instituted and diligently conducted, so long as (i) adequate   reserve or other appropriate provision, as shall be required in conformity with GAAP shall have been made   therefor, and (ii) as may be applicable at any time, in the case of a tax or claim which has or may become   a Lien against any Unencumbered Pool Property, such contest proceedings conclusively operate to stay the   sale of any portion of any such Unencumbered Pool Property to satisfy such tax or claim.  The Borrower   will not, nor will it permit any of its Subsidiaries to, file or consent to the filing of any consolidated income   tax return with any Person (other than the Borrower or any Subsidiary).   Section 7.4 Maintenance of Properties.  Each Credit Party will, and will cause each of its   Subsidiaries to, maintain or cause to be maintained in good repair, working order and condition, ordinary   wear and tear excepted, all material properties used or useful in the business of any Credit Party and its     

 

   90   Subsidiaries and from time to time will make or cause to be made all appropriate repairs, renewals and   replacements thereof.   Section 7.5 Insurance.  The Credit Parties will maintain or cause to be maintained, with   financially sound and reputable insurers, property insurance, such public liability insurance, third party   property damage insurance with respect to liabilities, losses or damage in respect of the assets, properties   and businesses of each Credit Party and its Subsidiaries as may customarily be carried or maintained under   similar circumstances by Persons of established reputation engaged in similar businesses, in each case in   such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as   shall be customary for such Persons.  Each Credit Party and its Subsidiaries shall at all times comply in all   material respects with the requirements of the insurance policies required hereunder and of the issuers of   such policies and of any board of fire underwriters or similar body as applicable to or affecting any   Unencumbered Pool Property.    Section 7.6 Inspections.  Borrower, Parent and each Unencumbered Property Owner will, and   will cause each of its respective Subsidiaries to, permit representatives and independent contractors of the   Administrative Agent and each Lender to visit and inspect any of its properties, to conduct field audits, to   examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and   to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants,   all at the expense of the Borrower and at such reasonable times during normal business hours and as often   as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that so   long as no Event of Default exists, the Borrower shall not be obligated to pay for more than one (1) such   inspection per year; provided, further, that when an Event of Default exists, the Administrative Agent or   any Lender (or any of their respective representatives or independent contractors) may do any of the   foregoing at the expense of the Borrower at any time during normal business hours and without advance   notice.   Section 7.7 Lenders Meetings.  The Borrower will, upon the request of the Administrative   Agent or the Required Lenders, participate in a meeting of the Administrative Agent and the Lenders once   during each Fiscal Year to be held at the Borrower’s corporate offices (or at such other location as may be   agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower   and the Administrative Agent.   Section 7.8 Compliance with Laws and Material Contracts.  Each Credit Party will comply,   and shall cause each of its Subsidiaries and all other Persons, if any, on or occupying any Facilities to   comply, with (a) the Patriot Act and OFAC rules and regulations, (b) all other Applicable Laws and (c) all   Material Contracts, noncompliance with, with respect to clauses (b) and (c), could reasonably be expected   to have, individually or in the aggregate, a Material Adverse Effect.   Section 7.9 Use of Proceeds.  The Credit Parties will use the proceeds of the Credit Extensions   and the Term Loan for (a) working capital, capital expenditures, payment of dividends and redemptions,   and other lawful corporate purposes (including, but not limited to, the acquisition of Healthcare Facilities),   and (b) to pay transaction fees, costs and expenses related to credit facilities established pursuant to this   Agreement and the other Credit Documents, in each case not in contravention of Applicable Laws or of any   Credit Document.  No portion of the proceeds of any Credit Extension or the Term Loan shall be used in   any manner that causes or might cause such Credit Extension or the Term Loan or the application of such   proceeds to violate Regulation T, Regulation U or Regulation X of the FRB as in effect from time to time   or any other regulation thereof or to violate the Exchange Act.   Section 7.10 Environmental Matters.     

 

   91   (a) Environmental Disclosure.  Each Credit Party will deliver to the Administrative   Agent and the Lenders with reasonable promptness, such documents and information as from time   to time may be reasonably requested by the Administrative Agent or any Lender.   (b) Hazardous Materials Activities, Etc.  The Borrower shall promptly take, and shall   cause each of its Subsidiaries promptly to take, any and all actions necessary to (i) cure any   violation of applicable Environmental Laws by such Credit Party or its Subsidiaries that could   reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and   (ii) respond to any Environmental Claim against such Credit Party or any of its Subsidiaries and   discharge any obligations it may have to any Person thereunder where failure to do so could   reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.   Section 7.11 Books and Records.  Each Credit Party will keep proper books of record and   account in which full, true and correct entries shall be made of all dealings and transactions in relation to   its business and activities to the extent necessary to prepare the consolidated financial statements of the   Parent in conformity with GAAP.   Section 7.12 Additional Subsidiaries.   Subject to subsection 7.12 (c) below, within thirty (30) days after the occurrence of any event   described in subsections 7.12(b)(ii)(A) or (B) below with respect to any Material Subsidiary, the Borrower   and the other Credit Parties shall:   (a) RESERVED;    (b) cause such Person to become a Guarantor by executing and delivering to the   Administrative Agent a Guarantor Joinder Agreement or such other documents as the   Administrative Agent shall deem appropriate for such purpose, and (ii) deliver to the   Administrative Agent documents of the types referred to in Section 5.1(b), and favorable opinions   of counsel to such joining Guarantor (which shall cover, among other things, the legality, validity,   binding effect and enforceability of the documentation referred to in the immediately foregoing   clause (i)), all in form, content and scope reasonably satisfactory to the Administrative Agent;   provided that the foregoing requirements of this clause (b) shall apply only if:   (i) RESERVED; or   (ii)    (A) Such Material Subsidiary which is an Unencumbered Property   Owner, or any other Subsidiary that directly or indirectly own an Equity Interest   in such Material Subsidiary, becomes obligated in respect of, any Indebtedness of   Parent, the Borrower or any Subsidiary of the Parent or Borrower; or   (B) As to any other Material Subsidiary; such Material Subsidiary (or   any other Subsidiary that directly or indirectly own an Equity Interest in such   Material Subsidiary) Guarantees, or otherwise becomes obligated in respect of, any   Indebtedness of Parent, the Borrower or any Subsidiary of the Parent or  Borrower,   unless the terms of such Indebtedness prohibit the execution of such guaranty.   (c) Notwithstanding the foregoing, no such Subsidiary shall be required to become a   Guarantor under subsection 7.12(b)(ii)(B) if such Subsidiary (I) is an Excluded Subsidiary or a     

 

   92   Foreign Subsidiary, or (II) is expressly prohibited in writing from guaranteeing Indebtedness of   any other Person pursuant to (x) a provision in any document, instrument or agreement evidencing   Indebtedness or other material agreement of such Subsidiary, (y) a provision of such Subsidiary's   Organizational Documents to the extent required by another holder of the Capital Stock of such   Subsidiary in connection with the formation thereof or (z) a provision of such Subsidiary's   Organizational Documents, which provision was included in such Organizational Document or   such other document, instrument or agreement as an express condition to the extension of   Indebtedness to such Subsidiary by any of a third party creditor providing the subject financing,   any other third-party guarantor thereof or any rating agency in respect thereof, or was included in   such Organizational Documents in contemplation of such Subsidiary’s entering into any such   Indebtedness or other material agreement; provided, that if (A) any Subsidiary qualifying as an   Excluded Subsidiary as of the date of its acquisition or formation ceases to qualify as an Excluded   Subsidiary, or (B) the applicable prohibition against guaranteeing Indebtedness of any other Person   shall no longer be in effect with respect to a Subsidiary that is or was not required to become a   Guarantor under clause (II) above, the Credit Parties shall promptly notify the Administrative   Agent that such Subsidiary no longer qualifies as an Excluded Subsidiary or that such prohibition   is no longer in effect with respect to such Subsidiary (as applicable), and the Credit Parties shall,   within thirty (30) days after the date that such Subsidiary ceases to so qualify or such prohibition   is no longer in effect with respect to such Subsidiary (or such later date, in each case, with the   written consent of the Administrative Agent), cause such Subsidiary to become a Guarantor in   accordance with the provisions of clause (b) of this Section 7.12 (unless, in the case of a Subsidiary   previously subject to a prohibition against guaranteeing Indebtedness, such Subsidiary otherwise   qualifies as an Excluded Subsidiary thereafter).   (d) Without limiting the foregoing, but subject to subsection 7.12 (b), as a condition   to the inclusion of any Real Estate Asset owned by such Subsidiary in the Borrowing Base (if such   Subsidiary is not already a Guarantor or is an Excluded Subsidiary or is not otherwise required to   become a Guarantor pursuant hereto), the Borrower and the other Credit Parties shall cause such   Subsidiary to become a Guarantor and deliver such documents as are required in connection   therewith in accordance with the foregoing clause (b), in each case on or before the earlier of (A)   the date on which such Real Estate Asset owned by such Subsidiary is included in any calculation   (pro forma or otherwise) of the Borrowing Base and (B) the deadline for the delivery of the next   Borrowing Base Certificate.   Section 7.13 Unencumbered Pool Properties Subject to Eligible Ground Leases.     The Borrower (and each applicable Credit Party and/or Unencumbered Property Owner) shall, with respect   to each Unencumbered Pool Property subject to an Eligible Ground Lease:   (a) Make all payments and otherwise perform in all material respects all obligations   in respect of each such Eligible Ground Lease and keep each such Eligible Ground Lease in full   force and effect and not allow any such Eligible Ground Lease to lapse or be terminated or any   rights to renew any such Eligible Ground Lease to be forfeited or cancelled, notify the   Administrative Agent of any default by any party with respect to any such Eligible Ground Lease   and cooperate with the Administrative Agent in all respects to cure any such default, except, in any   case, where the failure to do so would not be reasonably likely to have a Material Adverse Effect.   (b) Without limiting the foregoing, with respect to each Eligible Ground Lease related   to any Unencumbered Pool Property:     

 

   93   (i) pay when due the rent and other amounts due and payable thereunder   (subject to applicable cure or grace periods);    (ii) timely perform and observe all of the material terms, covenants and   conditions required to be performed and observed by it as tenant thereunder (subject to   applicable cure or grace periods);    (iii) do all things necessary to preserve and keep unimpaired such Eligible   Ground Lease and its material rights thereunder;    (iv) not waive, excuse or discharge any of the material obligations of the   ground lessor or other obligor thereunder;    (v) diligently and continuously enforce the material obligations of the ground   lessor or other obligor thereunder;    (vi) not do, permit or suffer any act, event or omission which would result in a   default thereunder (or which, with the giving of notice or the passage of time, or both,   would constitute a default thereunder), in each case which would permit the applicable   ground lessor to terminate or exercise any other remedy with respect to such Eligible   Ground Lease;    (vii) cancel, terminate, surrender, modify or amend any of the provisions of any   such Eligible Ground Lease or agree to any termination, amendment, modification or   surrender thereof if the effect of such cancellation, termination, surrender, modification,   amendment or agreement is to (A) shorten the term of such Eligible Ground Lease, (B)   increase the rent payable under such Eligible Ground Lease, (C) increase the purchase price   under any purchase option concerning the property included in and subject to such Eligible   Ground Lease, (D) modify the gross or net leasable area subject to such Eligible Ground   Lease, (E) transfer to the ground lessee any costs and/or expenses previously paid by the   ground lessor under such Eligible Ground Lease, (F) terminate (or grant the ground lessor   additional rights to unilaterally terminate) such Eligible Ground Lease, or (G) subordinate   the rights of the applicable Unencumbered Property Owner under such Eligible Ground   Lease to any property manager, mortgagee or leasehold interest or any other Person, in   each case without the prior written consent of the Administrative Agent;   (viii) deliver to the Administrative Agent all default and other material notices   received by it or sent by it under the applicable Eligible Ground Lease;    (ix) upon Administrative Agent’s reasonable written request, provide to   Administrative Agent any information or materials relating to such Eligible Ground Lease   and evidencing such Unencumbered Property Owner’s due observance and performance   of its material obligations thereunder;   (x) not permit or consent to the subordination of such Eligible Ground Lease   to any mortgage or other leasehold interest of the premises related thereto, unless the   Borrower has obtained customary non-disturbance rights in connection with such   subordination;    (xi) execute and deliver (to the extent permitted to do so under such Eligible   Ground Lease), upon the reasonable request of the Administrative Agent, any documents,     

 

   94   instruments or agreements as may be required to permit the Administrative Agent to cure   any default under such Eligible Ground Lease;    (xii) provide to Administrative Agent written notice of its intention to exercise   any option or renewal or extension rights with respect to such Eligible Ground Lease or   easement at least thirty (30) days prior to the expiration of the time to exercise such right   or option and, unless the Borrower is removing such Real Estate as an Unencumbered Pool   Property,  duly exercise any renewal or extension option with respect to any such Eligible   Ground Lease or easement (either consistent with such notice or upon the direction of the   Administrative Agent); provided, that each Credit Party (on its own behalf and on behalf   of each Unencumbered Property Owner) further hereby appoints the Administrative Agent   its attorney-in-fact, coupled with an interest, to execute and deliver, for and in the name of   such Person, all instruments, documents or agreements necessary to extend or renew any   such Eligible Ground Lease;   (xiii) not treat, in connection with the bankruptcy or other insolvency   proceedings of any ground lessor or other obligor, any Eligible Ground Lease as   terminated, cancelled or surrendered pursuant to the Bankruptcy Code without the   Administrative Agent’s prior written consent;    (xiv) in connection with the bankruptcy or other insolvency proceedings of any   ground lessor or other obligor, ratify the legality, binding effect and enforceability of the   applicable Eligible Ground Lease as against the applicable Unencumbered Property Owner   within the applicable time period therefore in such proceedings, notwithstanding any   rejection by such ground lessor or trustee, custodian or receiver related thereto;    (xv) provide to the Administrative Agent not less than thirty (30) days prior   written notice of the date on which the applicable Unencumbered Property Owner shall   apply to any court or other governmental authority for authority or permission to reject the   applicable Eligible Ground Lease in the event that there shall be filed by or against any   Unencumbered Property Owner any petition, action or proceeding under the Bankruptcy   Code or any similar federal or state law; provided, that the Administrative Agent shall have   the right, but not the obligation, to serve upon the applicable Unencumbered Property   Owner within such thirty (30) day period a notice stating that (A) the Administrative Agent   demands that such Unencumbered Property Owner assume and the assign the relevant   Eligible Ground Lease to the Administrative Agent subject to and in accordance with the   Bankruptcy Code and (B) the Administrative Agent covenants to cure or provide   reasonably adequate assurance thereof with respect to all defaults susceptible of being   cured by the Administrative Agent and of future performance under the applicable Eligible   Ground Lease; provided, further, that if the Administrative Agent serves such notice upon   the applicable Unencumbered Property Owner, such Unencumbered Property Owner shall   not seek to reject the applicable agreement and shall promptly comply with such demand;    (xvi) permit the Administrative Agent (at its option), during the continuance of   any Event of Default, to (i) perform and comply with all obligations under the applicable   Eligible Ground Lease; (ii) do and take such action as the Administrative Agent deems   necessary or desirable to prevent or cure any default by such Unencumbered Property   Owner under such Eligible Ground Lease and (iii) enter in and upon the applicable   premises related to such Eligible Ground Lease to the extent and as often as the   Administrative Agent deems necessary or desirable in order to prevent or cure any default   under the applicable Eligible Ground Lease;      

 

   95   (xvii) during the continuance of any Event of Default, in the event of any   arbitration, court or other adjudicative proceedings under or with respect to any such   Eligible Ground Lease, permit the Administrative Agent (at its option) to exercise all right,   title and interest of the applicable Unencumbered Property Owner in connection with such   proceedings; provided, that (i) each Unencumbered Property Owner hereby irrevocably   appoint the Administrative Agent as its attorney-in-fact (which appointment shall be   deemed coupled with an interest) to exercise such right, interest and title and (ii) the   Borrower and the other Unencumbered Property Owners shall bear all costs, fees and   expenses related to such proceedings; provided, further, that each Unencumbered Property   Owner hereby further agrees that the Administrative Agent shall have the right, but not the   obligation, to proceed in respect of any claim, suit, action or proceeding relating to the   rejection of any of the Eligible Ground Leases referenced above by the relevant ground   lessor or obligor as a result of bankruptcy or similar proceedings (including, without   limitation, the right to file and prosecute all proofs of claims, complaints, notices and other   documents in any such bankruptcy case or similar proceeding); and   (xviii) deliver to the Administrative Agent (and, if it has the ability pursuant to   the subject Eligible Ground Lease, cause the applicable ground lessor under such Eligible   Ground Lease to deliver to the Administrative Agent) an estoppel certificate from the   ground lessor in relation to such Eligible Ground Lease in form and substance acceptable   to the Administrative Agent, in its reasonable discretion, and, in any case, setting forth (A)   the name of lessee and lessor under the Eligible Ground Lease; (B) that such Eligible   Ground Lease is in full force and effect and has not been modified except to the extent   Administrative Agent has received notice of such modification; (C) that no rental and other   payments due thereunder are delinquent as of the date of such estoppel; and (D) whether   such Person knows of any actual or alleged defaults or events of default under the   applicable Eligible Ground Lease;   provided, that each applicable Credit Party hereby agrees to execute and deliver (or cause,   as to each Unencumbered Property Owner, the execution and delivery) to Administrative Agent,   within ten (10) Business Days of any request therefor, such documents, instruments, agreements,   assignments or other conveyances reasonably requested by the Administrative Agent in connection   with or in furtherance of any of the provisions set forth above or the rights granted to the   Administrative Agent in connection therewith.   Section 7.14 RESERVED.     Section 7.15 REIT Status.    The Parent and the Borrower will, and will cause each of their respective Subsidiaries to, operate   their businesses at all times so as to satisfy all requirements necessary for the Parent to qualify as a REIT,   and the Parent shall elect to be qualified as a REIT in connection with the filing of the Parent’s tax returns   for the Fiscal Year ended December 31, 2014.  From and after the date upon which the Parent elects to be   qualified as a REIT, the Parent will maintain its status, and such election to be treated, as a REIT.  The   Borrower shall at all times be a partnership or other disregarded entity for federal income tax purposes   under the Internal Revenue Code.    Section 7.16 Leasing Matters Regarding Unencumbered Pool Properties.   The Borrower (or the applicable Unencumbered Property Owner with respect to such   Unencumbered Pool Property) (i) shall observe and perform the material obligations imposed upon the     

 

   96   landlord under the Tenant Leases in a commercially reasonable manner; (ii) shall enforce the terms,   covenants and conditions contained in each Tenant Lease against the Tenant thereunder in a commercially   reasonable manner, (y) may amend or waive the terms, covenants and conditions contained in the Tenant   Leases  in a commercially reasonable manner, (iii) shall, with regard to any Tenant Lease, not terminate   any such Tenant Lease or accept a surrender of any such Tenant Lease except by reason of a tenant default   or if otherwise commercially reasonable; (iv) shall not collect any of the rents from Tenant Leases more   than one (1) month in advance (other than security deposits); and (v) shall not execute any assignment of   lessor’s interest in the Tenant Leases or the rents from Tenant Lease.   Section 8 NEGATIVE COVENANTS   Each Credit Party covenants and agrees that until the Termination Date, each Credit Party shall   perform, and shall cause each of its Subsidiaries to perform, all covenants in this Section 8.   Section 8.1 Indebtedness.  No Credit Party shall, nor shall it permit any of its Subsidiaries to,   directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly   liable with respect to any Indebtedness, other than:   (a) the Obligations;   (b) Indebtedness of any Credit Party or any Subsidiary of any Credit Party to any other   Credit Party or any other such Subsidiary so long as any such Indebtedness owing by any Credit   Party to any Subsidiary which is not a Credit Party shall be subordinated to the Obligations on   terms reasonably satisfactory to the Administrative Agent;   (c) Guarantees;   (d) Indebtedness existing on the Effective Date and described in Schedule 8.1, together   with any Permitted Refinancing thereof;   (e) Indebtedness with respect to (x) Capital Leases and (y) purchase money   Indebtedness; provided, in the case of clause (x), that any such Indebtedness shall be secured only   by the asset subject to such Capital Lease, and, in the case of clause (y), that any such Indebtedness   shall be secured only by the asset acquired in connection with the incurrence of such Indebtedness;   provided further that the sum of the aggregate principal amount of any Indebtedness under this   clause (e) shall not exceed at any time $1,000,000;   (f) Indebtedness in respect of any Swap Contract that is entered into in the ordinary   course of business to hedge or mitigate risks to which any Credit Party or any of its Subsidiaries is   exposed in the conduct of its business or the management of its liabilities (it being acknowledged   by the Credit Parties that a Swap Contract entered into for speculative purposes or of a speculative   nature is not a Swap Contract entered into in the ordinary course of business to hedge or mitigate   risks);   (g) Indebtedness arising in connection with the financing of insurance premiums in   the ordinary course of business;   (h) cash management obligations and other Indebtedness in respect of endorsements   for collection or deposit, netting services, overdraft protections and similar arrangements, in each   case, in connection with deposit accounts in the ordinary course of business;     

 

   97   (i) Indebtedness representing deferred compensation to officers, directors, employees   of the Parent and its Subsidiaries;   (j) Secured Recourse Indebtedness of any Credit Party or any Subsidiary (other than   any Subsidiary which is a Guarantor hereunder); provided, the Credit Parties shall be in   compliance, on a pro forma basis after giving effect to such Recourse Indebtedness and related   transactions, with the financial covenants set forth in Section 8.8, recomputed as of the last day of   the most recently ended Fiscal Quarter of the Borrower for which financial statements have been   delivered pursuant to Section 7.1;    (k) Unsecured Indebtedness of the Credit Parties and their Subsidiaries provided the   Credit Parties shall be in compliance, on a pro forma basis after giving effect to such Unsecured   Indebtedness and related transactions, with the financial covenants set forth in Section 8.8,   recomputed as of the last day of the most recently ended Fiscal Quarter of the Borrower for which   financial statements have been delivered pursuant to Section 7.1; and    (l) Non-Recourse Indebtedness of any Subsidiaries that are not, and are not required   to be, Credit Parties hereunder and are not Unencumbered Property Owners; provided, the Credit   Parties shall be in compliance, on a pro forma basis after giving effect to such Non-Recourse   Indebtedness and related transactions, with the financial covenants set forth in Section 8.8,   recomputed as of the last day of the most recently ended Fiscal Quarter of the Borrower for which   financial statements have been delivered pursuant to Section 7.1.   Section 8.2 Liens.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly   or indirectly, create, incur, assume or permit to exist any Lien on or with respect to any property or asset of   any kind (including any document or instrument in respect of goods or accounts receivable) of any Credit   Party or any of its Subsidiaries, whether now owned or hereafter acquired, created or licensed or any   income, profits or royalties therefrom, or file or permit the filing of, or permit to remain in effect, any   financing statement or other similar notice of any Lien with respect to any such property, asset, income,   profits or royalties under the UCC of any State or under any similar recording or notice statute or under any   Applicable Laws related to intellectual property, except:   (a) As may be applicable at any time, Liens in favor of the Administrative Agent for   the benefit of the holders of the Obligations granted pursuant to any Credit Document;   (b) Liens for Taxes not yet due or for Taxes if obligations with respect to such Taxes   are being contested in good faith by appropriate proceedings promptly instituted and diligently   conducted;   (c) statutory Liens of landlords, banks, carriers, warehousemen, mechanics,   repairmen, workmen and materialmen, and other Liens imposed by law (other than any such Lien   imposed pursuant to Section 430(k) of the Internal Revenue Code or Section 303(k) or 4068 of   ERISA that would constitute an Event of Default under Section 9.1(j)), in each case incurred in the   ordinary course of business (i) for amounts not yet overdue, or (ii) for amounts that are overdue   and that are being contested in good faith by appropriate proceedings, so long as such reserves or   other appropriate provisions, if any, as shall be required by GAAP shall have been made for any   such contested amounts;   (d) Liens incurred in the ordinary course of business in connection with workers’   compensation, unemployment insurance and other types of social security, or to secure the   performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government     

 

   98   contracts, trade contracts, performance and return-of-money bonds and other similar obligations   (exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no   foreclosure, sale or similar proceedings have been commenced with respect to any portion of the   subject Real Estate Asset on account thereof;   (e) easements, rights-of-way, restrictions, encroachments, and other minor   encumbrances, defects or irregularities in title, in each case which do not and will not interfere in   any material respect with the ordinary conduct of the business of any Credit Party or any of its   Subsidiaries, including, without limitation, all encumbrances shown on any policy of title insurance   in favor of the Administrative Agent with respect to any Real Estate Asset;   (f) any interest or title of a lessor or sublessor under any lease of real estate not   prohibited hereunder (including the interests of any ground lessor under an Eligible Ground Lease   respecting any Unencumbered Pool Property);   (g) Liens solely on any cash earnest money deposits made by any Credit Party or any   of its Subsidiaries in connection with any letter of intent, or purchase agreement permitted   hereunder;   (h) purported Liens evidenced by the filing of precautionary UCC financing   statements relating solely to operating leases of personal property entered into in the ordinary   course of business;   (i) Liens in favor of customs and revenue authorities arising as a matter of law to   secure payment of customs duties in connection with the importation of goods;   (j) any zoning or similar law or right reserved to or vested in any governmental office   or agency to control or regulate the use, operation or development of any real property;   (k) licenses of patents, trademarks and other intellectual property rights granted by any   Credit Party or any of its Subsidiaries in the ordinary course of business and not interfering in any   respect with the ordinary conduct of the business of such Credit Party or such Subsidiary;   (l) Liens existing as of the Effective Date and described in Schedule 8.2;   (m) Liens securing purchase money Indebtedness (other than on any Borrowing Base   Properties) and Capital Leases to the extent permitted pursuant to Section 8.1(e); provided, any   such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness or the   assets subject to such Capital Lease, respectively;   (n) Liens in favor of the Issuing Bank or the Swingline Lender on cash collateral   securing the obligations of a Defaulting Lender to fund risk participations hereunder;   (o) Liens on assets other than Borrowing Base Properties consisting of judgment or   judicial attachment liens relating to judgments which do not constitute an Event of Default   hereunder;   (p) licenses (including licenses of Intellectual Property), sublicenses, leases or   subleases granted to third parties in the ordinary course of business;   (q) Liens in favor of collecting banks under Section 4-210 of the UCC;     

 

   99   (r) Liens (including the right of set-off) in favor of a bank or other depository   institution arising as a matter of law encumbering deposits;   (s) Liens arising out of conditional sale, title retention, consignment or similar   arrangements for the sale of goods in the ordinary course of business; and   (t) Liens securing Secured Recourse Indebtedness and Non-Recourse Indebtedness of   any Credit Party or any Subsidiary thereof (including any Foreign Subsidiary and any Excluded   Subsidiary) on assets other than Borrowing Base Properties to the extent such Secured Recourse   Indebtedness or secured Non-Recourse Indebtedness is permitted pursuant to Section 8.1.   Section 8.3 No Further Negative Pledges.  No Credit Party shall, nor shall it permit any of its   Subsidiaries to, enter into any Contractual Obligation (other than this Agreement and the other Credit   Documents) that limits the ability of the Borrower or any such Subsidiary to create, incur, assume or suffer   to exist Liens on property of such Person; provided, however, that this Section 8.3 shall not prohibit (i) any   negative pledge incurred or provided in favor of any holder of Indebtedness permitted under Section 8.1(e),   solely to the extent any such negative pledge relates to the property financed by or subject to Permitted   Liens securing such Indebtedness, (ii) any Contractual Obligation incurred or provided in favor of any   holder of Indebtedness permitted under Section 8.1(l), solely to the extent such Contractual Obligation   prohibits the pledge of the Capital Stock of the Borrower to secure any Indebtedness, (iii) any Permitted   Lien or any document or instrument governing any Permitted Lien; provided that any such restriction   contained therein relates only to the asset or assets subject to such Permitted Lien, (iv) customary   restrictions and conditions contained in any agreement relating to the disposition of any property or assets   permitted under Section 8.10 pending the consummation of such disposition, (v) customary provisions   restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements   and similar agreements entered into in the ordinary course of business, and (vi) any Contractual Obligation   (including, without limitation, any negative pledge) incurred or provided in favor of any holder of   Indebtedness permitted under Section 8.1(k).   Section 8.4 Restricted Payments.  Declare or make, directly or indirectly, any Restricted   Payment, or incur any obligation (contingent or otherwise) to do so, except that:   (a) each Subsidiary of the Borrower may make Restricted Payments to the Borrower,   and the Borrower and each other Subsidiary of the Parent may make Restricted Payments to the   Parent;   (b) the Borrower and each Subsidiary may declare and make dividend payments or   other distributions payable solely in the Capital Stock of such Person; and    (c) the Credit Parties and the other Consolidated Parties (if any) shall be permitted to   make other Restricted Payments, subject to the limitations with respect thereto set forth in Section   8.8(f).   Section 8.5 Burdensome Agreements.  No Credit Party shall, nor shall it permit any of its   Subsidiaries to, enter into, or permit to exist, any Contractual Obligation that encumbers or restricts the   ability of any such Person to (i) pay dividends or make any other distributions to the Borrower or other   Credit Party on its Capital Stock or with respect to any other interest or participation in, or measured by, its   profits, (ii) pay any Indebtedness or other obligation owed to the Borrower or any other Credit Party, (iii)   make loans or advances to the Borrower or any other Credit Party, (iv) sell, lease or transfer any of its   property to the Borrower or any other Credit Party, (v) pledge its property pursuant to the Credit Documents   or any renewals, refinancings, exchanges, refundings or extension thereof or (vi) other than customary     

 

   100   Subsidiary Indebtedness limitations or covenants, act as a Borrower pursuant to the Credit Documents or   any renewals, refinancings, exchanges, refundings or extension thereof, except (in respect of any of the   matters referred to in clauses (i)-(v) above) for (1) this Agreement and the other Credit Documents, (2) any   document or instrument governing Indebtedness incurred pursuant to Section 8.1(e) or Section 8.1(j);   provided that any such restriction contained therein relates only to the asset or assets constructed or acquired   in connection therewith or secured thereby, (3) any Permitted Lien or any document or instrument   governing any Permitted Lien, provided that any such restriction contained therein relates only to the asset   or assets subject to such Permitted Lien, (4) customary restrictions and conditions contained in any   agreement relating to the sale of any property permitted under Section 8.10 pending the consummation of   such sale, or (5) any document or instrument governing Indebtedness incurred pursuant to Section 8.1(k).   Section 8.6 Investments.  No Credit Party shall, nor shall it permit any of its Subsidiaries to,   directly or indirectly, make or own any Investment in any Person, including any joint venture and any   Foreign Subsidiary, except:   (a) Investments in cash and Cash Equivalents and deposit accounts or securities   accounts in connection therewith;   (b) Investments owned as of the Effective Date in any Subsidiary or Unconsolidated   Affiliate, and Investments in any Subsidiary formed or acquired after the Effective Date to the   extent such Subsidiary is a Guarantor, or becomes a Guarantor in accordance with Section 7.12(b);   (c) intercompany loans and Guarantees to the extent permitted under Section 8.1;   (d) Investments existing on the Effective Date and described on Schedule 8.6;   (e) Investments in Real Estate Assets that constitute Healthcare Facilities (other than   Unimproved Land or Construction-In-Process, Investments in which shall be subject to the   limitations set forth in clause (j) below);   (f) Investments in Subsidiaries formed or acquired after the Effective Date that do not   own any Unencumbered Pool Properties and that are not required to become Guarantors in   accordance with Section 7.12(b), so long as the Credit Parties shall be in compliance, on a pro   forma basis after giving effect to such Investment, with the financial covenants set forth in Section   8.8, recomputed as of the last day of the most recently ended Fiscal Quarter of the Borrower for   which financial statements have been delivered pursuant to Section 7.1;   (g) Investments constituting Swap Contracts permitted by Section 8.1(f);   (h) Investments constituting accounts or lease or rent receivables, prepayments and   deposits, in each case made in the ordinary course of business;   (i) Investments in the nature of capital expenditures in respect of any fixed or capital   asset, to the extent such capital expenditures constitute normal replacements and maintenance   which are properly charged to current operations or other reasonable and customary capital   expenditures made in the ordinary course of the business of the Parent and its Subsidiaries;   (j) subject to the following limitations, Investments in the following asset classes: (i)   Capital Stock, the issuer with respect to which is an Unconsolidated Affiliate, and mezzanine loans   made to, or similar Investments in, any Person (other than an Affiliate of any Credit Party) that   owns, directly or indirectly, one or more Real Estate Assets that constitute Healthcare Facilities     

 

   101   (“Class I”), (ii) Construction-In-Process (“Class II”), (iii) Unimproved Land (“Class III”), and (iv)   Unencumbered Mortgage Receivables (“Class IV;” each of Class I, Class II, Class III and Class IV   may be referred to herein individually as a “Class” and collectively as “Classes”): provided,   Investments in each of the foregoing asset Classes shall be permitted hereunder only to the extent   that the aggregate amount of all Investments in such Class (based on the GAAP book value of each   such Investment at such time of determination) does not exceed the corresponding percentage of   Total Asset Value for such Class set forth below:   Class Investment Type Maximum Percentage   I Unconsolidated Affiliates (including any Investments in   Unconsolidated Affiliates permitted under clause (b)   above) and mezzanine loans and similar Investments   15.0%   II Construction-In-Process 20.0%   III Unimproved Land 5.0%   IV Unencumbered Mortgage Receivables 10.0%   In addition to the foregoing limitations on permitted Investments under this clause (j), at no time   shall the aggregate GAAP book value of the Investments in Classes I, II, III and IV above exceed   20.0% of Total Asset Value.   Notwithstanding the foregoing, (x) in no event shall any Credit Party make any Investment under this   Section 8.6 which results in or facilitates in any manner any Restricted Payment not otherwise permitted   under the terms of Section 8.4; and (y) in no event shall the Parent be permitted to make any equity   Investment in any Person other than the Borrower.   Section 8.7 Use of Proceeds.  No Credit Party shall use the proceeds of any Credit Extension   or the Loans except pursuant to Section 7.9.   Section 8.8 Financial Covenants.  No Credit Party shall at any time:   (a) Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio, tested as   of the end of any Fiscal Quarter of the Borrower, to be greater than 0.60 to 1.00; provided that, if   the Borrower shall have consummated a Material Acquisition, at the Borrower’s election, then no   Credit Party shall permit the Consolidated Leverage Ratio, tested as of the end of each Fiscal   Quarter for the two consecutive Fiscal Quarter period following such Material Acquisition, to be   greater than 0.65 to 1.00.   (b) Consolidated Secured Indebtedness Leverage Ratio.  Permit the Consolidated   Secured Indebtedness Leverage Ratio, tested as of the end of any Fiscal Quarter of the Borrower,   to be greater than 30.0%.   (c) [Reserved].   (d) Consolidated Fixed Charge Coverage Ratio.  Permit the Consolidated Fixed   Charge Coverage Ratio, tested as of the end of any Fiscal Quarter of the Borrower, to be less than   1.50 to 1.00.     

 

   102   (e) Tangible Net Worth.  Permit Tangible Net Worth, tested as of the end of any Fiscal   Quarter of the Borrower, to be less than the sum of (x) $1,406,050,000.00, plus (y) an amount equal   to, on a cumulative basis, the product of (i) the sum of all Net Cash Proceeds from any Equity   Issuance after the Effective Date, multiplied by (ii) seventy-five percent (75.0%).   (f) Distribution Limitation.  Permit, for any given four (4) calendar quarter period of   the Consolidated Parties, the amount of Restricted Payments made by the Consolidated Parties to   the holders of their Capital Stock (excluding any Restricted Payments to such holders of Capital   Stock which are Credit Parties) during such period to exceed the FFO Distribution Allowance for   such period; provided, that to the extent no Default or Event of Default then exists or would result   from same, each Credit Party and each other Subsidiary shall be permitted to make Restricted   Payments to the Borrower and the Borrower shall be permitted to make Restricted Payments to   Parent (and the Borrower may make any corresponding Restricted Payments to the holders (other   than the Parent) of common and preferred limited partnership units in the Borrower, based on such   holders’ individual percentage ownership of Capital Stock in the Borrower or otherwise in   accordance with the Borrower’s Organizational Documents), in each case to permit the Parent to   make Restricted Payments to the holders of the Capital Stock in the Parent to the extent necessary   to maintain Parent’s status as a REIT or to enable the Parent to avoid payment of any Tax for any   calendar year that could be avoided by reason of a Restricted Payment by Parent to the holders of   its Capital Stock, with such Restricted Payments by the Parent to be made as and when reasonably   determined by Parent, whether during or after the end of the relevant calendar year, and in all cases   as set forth in a certification to the Administrative Agent from the chief financial officer, principal   accounting officer, treasurer or controller of the Parent.  Without limiting the forgoing, in no event   shall the Consolidated Parties make any Restricted Payments to the holders of their Capital Stock   (other than any Restricted Payments to such holders of Capital Stock which are also Credit Parties)   if or to the extent that a Default or Event of Default then exists or would result from same.   Section 8.9 Capital Expenditures.  The Credit Parties and Unencumbered Property Owners   shall not make or become legally obligated to make any capital expenditures, except to the extent permitted   under Section 8.6(i).   Section 8.10 Fundamental Changes; Disposition of Assets; Acquisitions.  No Credit Party shall,   nor shall it permit any of its Subsidiaries to, enter into any Acquisition or transaction of merger or   consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or make any   Asset Sale, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory and   materials and the acquisition of equipment and capital expenditures in the ordinary course of business,   subject to Section 8.9) the business, property or fixed assets of, or Capital Stock or other evidence of   beneficial ownership of, any Person or any division or line of business or other business unit of any Person,   except:   (a) any Subsidiary of the Borrower may be merged with or into the Borrower or any   other Subsidiary, or be liquidated, wound up or dissolved, or all or any part of its business, property   or assets may be conveyed, sold, leased, transferred or otherwise disposed of, in one transaction or   a series of transactions, to the Borrower or any other Credit Party; provided, in the case of such a   merger, (i) if the Borrower is party to the merger, the Borrower shall be the continuing or surviving   Person and (ii) if any Guarantor or an Unencumbered Property Owner is a party to such merger,   then a Guarantor or Unencumbered Property Owner shall be the continuing or surviving Person;   (b) Asset Sales, so long as no Default or Event of Default then exists or would result   from any such Asset Sale and the consideration received for the assets subject to such Asset Sale   is in an amount at least equal to the fair market value thereof (determined in good faith by the board     

 

   103   of directors of the applicable Credit Party (or similar governing body)); provided, each of the Credit   Parties acknowledges and agrees that no proceeds of any such Asset Sale permitted hereunder shall   be used to make Restricted Payments other than in compliance with Sections 8.4 and 8.8(f); and   (c) Investments made in accordance with Section 8.6 and the subsequent sale or other   disposition of such Investments (so long the consideration received for such Investments subject to   such sale or other disposition is in an amount at least equal to the fair market value thereof   (determined in good faith by the board of directors of the applicable Credit Party (or similar   governing body)); provided, each of the Credit Parties acknowledges and agrees that no proceeds   of any such sale or other disposition permitted hereunder shall be used to make Restricted Payments   other than in compliance with Sections 8.4 and 8.8(f).   Section 8.11 Disposal of Subsidiary Interests.  Except as otherwise permitted hereunder and   except for Liens securing the Obligations, no Credit Party shall, nor shall it permit any of its Subsidiaries   to, (a) directly or indirectly sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of   any of its Subsidiaries, except to qualify directors if required by Applicable Laws; or (b) permit any of its   Subsidiaries directly or indirectly to sell, assign, pledge or otherwise encumber or dispose of any Capital   Stock of any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition   otherwise imposed hereunder), or to qualify directors if required by Applicable Laws.   Section 8.12 Transactions with Affiliates and Insiders.  No Credit Party shall, nor shall it permit   any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction (including the   purchase, sale, lease or exchange of any property or the rendering of any service) with any officer, director   or Affiliate of the Borrower or any its Subsidiaries on terms that are less favorable to the Borrower or such   Subsidiary, as the case may be, than those that might be obtained at the time from a Person who is not an   officer, director or Affiliate of the Borrower or any of its Subsidiaries; provided, the foregoing restriction   shall not apply to (a) any transaction between or among the Credit Parties; (b) normal and reasonable   compensation and reimbursement of expenses of directors in the ordinary course of business; (c)   compensation and reimbursement of out-of-pocket expenses, employment and severance arrangements for   officers and other employees entered into in the ordinary course of business; (d) equity issuances by the   Parent not constituting a Change of Control; (e) payments by the Parent permitted by Section 8.4; and (e)   the payment of customary indemnities to directors, officers and employees in the ordinary course of   business.   Section 8.13 Prepayment of Other Funded Debt.  No Credit Party shall, nor shall it permit any   of its Subsidiaries to:   (a) after the issuance thereof, amend or modify (or permit the amendment or   modification of) the terms of any Funded Debt in a manner adverse to the interests of the Lenders   (including specifically shortening any maturity or average life to maturity or requiring any payment   sooner than previously scheduled or increasing the interest rate or fees applicable thereto);   (b) amend or modify, or permit or acquiesce to the amendment or modification   (including waivers) of, any material provisions of any Subordinated Debt, including any notes or   instruments evidencing any Subordinated Debt and any indenture or other governing instrument   relating thereto;   (c) make any payment in contravention of the terms of any Subordinated Debt; or   (d) except in connection with a refinancing or refunding permitted hereunder, make   any voluntary prepayment, redemption, defeasance or acquisition for value of (including by way     

 

   104   of depositing money or securities with the trustee with respect thereto before due for the purpose   of paying when due), or refund, refinance or exchange of, any Funded Debt (other than the   Indebtedness under the Credit Documents, intercompany Indebtedness permitted hereunder and   Indebtedness permitted under Section 8.1(b), Section 8.1(d) or Section 8.1(k)); provided, this   Section 8.13(d) shall not prohibit the prepayment or payment at maturity by any Subsidiary of any   Specified CMBS Indebtedness if, on or prior to the date of any such payment, (x) the Real Estate   Asset subject to and securing such Specified CMBS Indebtedness is, or shall have been, proposed   for inclusion in the Borrowing Base in accordance with Section 8.17, and (y) such Subsidiary   becomes a Guarantor in accordance with Section 7.12.   Without limiting the foregoing, nothing in this Section 8.13 shall be interpreted or deemed to permit   any Credit Party or Subsidiary to incur any Funded Debt or Subordinated Debt to the extent such   Funded Debt or Subordinated Debt is not otherwise expressly permitted under Section 8.1.   Section 8.14 Conduct of Business.  From and after the Effective Date, the Parent and the   Borrower shall not, nor shall they permit any of their Subsidiaries to, engage in any business other than the   businesses engaged in by the Parent, the Borrower or such Subsidiary, respectively, on the Effective Date   and businesses that are substantially similar, related or incidental thereto, including, but not limited to,   owning, developing, and managing real and personal property and similar interests in leasehold properties   which are net leased to healthcare operators for use as Healthcare Facilities.   Section 8.15 Fiscal Year.  No Credit Party shall, nor shall it permit any of its Subsidiaries to   change its Fiscal Year-end from December 31.   Section 8.16 Amendments to Organizational Agreements/Material Agreements.  No Credit   Party shall, nor shall it permit any of its Subsidiaries to, amend or permit any amendments to its   Organizational Documents if such amendment would reasonably be expected to be materially adverse to   the Lenders or the Administrative Agent.  No Credit Party shall, nor shall it permit any of its Subsidiaries   to, amend or permit any amendment to, or terminate or waive any provision of, any Material Contract unless   such amendment, termination, or waiver would not have a material adverse effect on the Administrative   Agent or the Lenders.    Section 8.17 Addition/Removal of Unencumbered Pool Properties.  Neither the Borrower nor   any other Credit Party shall request the addition or a release of any Unencumbered Pool Property or add   any Real Estate Asset as an Unencumbered Pool Property hereunder except in accordance with the   following:   (a) The Borrower may from time to time amend Schedule 6.24 to add an additional   Real Estate Asset that qualifies as an Unencumbered Pool Property; provided, no Real Estate Asset   shall be included as an Unencumbered Pool Property in any Compliance Certificate or Borrowing   Base Certificate delivered to the Administrative Agent, on Schedule 6.24 or otherwise in any   calculation of the Borrowing Base unless and until such Real Estate Asset meets all of the   requirements set forth in the definition of “Unencumbered Pool Property” for inclusion in the   Borrowing Base.   (b) Notwithstanding anything contained herein to the contrary, to the extent any Real   Estate Asset previously qualifying as an Unencumbered Pool Property ceases to meet the criteria   for qualification as such, such Real Estate Asset shall be immediately removed from all Borrowing   Base-related calculations contained herein.  Any such property removed from Borrowing Base-   related calculations pursuant to this clause (b) shall immediately cease to be a “Unencumbered Pool   Property” hereunder, in which case Schedule 6.24 attached hereto shall be deemed to have been     

 

   105   immediately amended to remove such Real Estate Asset from the list of Unencumbered Pool   Properties.   (c) The Credit Parties may voluntarily remove any Unencumbered Pool Property from   qualification as such if, and to the extent that, the Credit Parties shall, immediately following such   removal, be in compliance with all of the covenants contained in Sections 7 and 8 of this Agreement   and with all Borrowing Base-related limitations on Outstanding Amounts set forth in this   Agreement.   (d) Upon removal of an Unencumbered Pool Property pursuant to clauses (b) or (c)   above, (i) Schedule 6.24 shall be immediately amended to remove such Real Estate Asset from the   list of Unencumbered Pool Properties; and (ii) the Borrower shall concurrently deliver to the   Administrative Agent written notice of any such voluntary removal or other event or circumstance   that results in a Real Estate Asset previously qualifying as an Unencumbered Pool Property ceasing   to qualify as such (provided, that such notification shall be accompanied by an updated Compliance   Certificate with calculations showing the effect of such removal on the financial covenants   contained herein and on any Borrowing Base-related restrictions on the Outstanding Amounts   hereunder).    Section 8.18 Property Management Agreements Regarding Unencumbered Pool Properties.    (a) No Unencumbered Property Owner shall, following the date on which any Real   Estate Asset is first included as an Unencumbered Pool Property, enter into any property   management agreement, or agree to pay any Person any fees or compensation in connection with   the management of all or any portion of such Unencumbered Pool Property, except with an   Approved Manager pursuant to a management agreement substantially in the form approved by the   Administrative Agent prior to the Effective Date or other form reasonably acceptable to the   Administrative Agent.  With respect to each Unencumbered Pool Property subject to a property   management agreement, the Borrower (or the applicable Unencumbered Property Owner with   respect to such Unencumbered Pool Property) shall (i) promptly perform and observe in a   commercially reasonable manner all of the covenants required to be performed and observed by it   under such property management agreement and do all things necessary (to the extent commercially   reasonable) to preserve and to keep unimpaired its material rights thereunder; (ii) promptly deliver   to the Administrative Agent a copy of any notice of default or other material notice under such   property management agreement received by the Borrower (or the applicable Unencumbered   Property Owner with respect to such Unencumbered Pool Property) from the Approved Manager   party thereto (including any notice that the Approved Manager intends to terminate such property   management agreement or that the Approved Manager otherwise intends to discontinue its   management of such Unencumbered Pool Property); and (iii) promptly enforce in a commercially   reasonable manner the performance and observance of all of the covenants required to be performed   and observed by such Approved Manager under such property management agreement.   (b) No Unencumbered Property Owner shall, without the prior written consent of the   Administrative Agent (which consent shall not be unreasonably withheld): (i) surrender, terminate   or cancel any property management agreement or otherwise replace any Approved Manager or   enter into any other management agreement with respect to any Unencumbered Pool Property,   except in accordance with clause (a) of this Section 8.18; (ii) reduce or consent to the reduction of   the term of any such property management agreement; (iii) increase or consent to the increase of   the amount of any charges or management fees under any such property management agreement;   or (iv) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights   and remedies under, any property management agreement in any material respect.     

 

   106   Section 9 EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS.   Section 9.1 Events of Default.  If any one or more of the following conditions or events shall   occur:   (a) Failure to Make Payments When Due.  Failure by any Credit Party to pay (i) the   principal of any Loan when due, whether at stated maturity, by acceleration or otherwise; (ii) within   one (1) Business Day of when due any amount payable to the Issuing Bank in reimbursement of   any drawing under a Letter of Credit; or (iii) within three (3) Business Days of when due any   interest on any Loan or any fee or any other amount due hereunder; or   (b) Default in Other Agreements.  (i) Failure of any Credit Party or any of its   Subsidiaries to pay when due any principal of or interest on or any other amount payable in respect   of one or more items of (x) Recourse Indebtedness (other than Indebtedness referred to in Section   8.1(a)) or (y) Non-Recourse Indebtedness in an aggregate principal amount of $10,000,000 or more,   in each case beyond the grace or cure period, if any, provided therefor; or (ii) breach or default by   any Credit Party with respect to any other term of (1) one or more items of Indebtedness in the   aggregate principal amounts referred to in clauses (i)(x) or (i)(y) above, or (2) any loan agreement,   mortgage, indenture or other agreement relating to such item(s) of Indebtedness, in each case   beyond the grace or cure period, if any, provided therefor, if the effect of such breach or default is   to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such   holder or holders), to cause, that Indebtedness to become or be declared due and payable (or subject   to a compulsory repurchase or redeemable) prior to its stated maturity or the stated maturity of any   underlying obligation, as the case may be; or   (c) Breach of Certain Covenants.  Failure of Borrower, Parent or any Unencumbered   Property Owner, as applicable, to perform or comply with any term or condition contained in   Section 7.1, Section 7.2(a), Section 7.5, Section 7.9, Section 7.12, Section 7.13 (to the extent such   failure would permit the ground lessor under the applicable Eligible Ground Lease to terminate   such Eligible Ground Lease), Section 7.15 or Section 8; or   (d) Breach of Representations, etc.  Any representation, warranty, certification or   other statement made or deemed made by any Credit Party in any Credit Document or in any   statement or certificate at any time given by any Credit Party or any of its Subsidiaries in writing   pursuant hereto or thereto or in connection herewith or therewith shall be false in any material   respect as of the date made or deemed made; or   (e) Other Defaults Under Credit Documents.  Any Credit Party shall default in the   performance of or compliance with any term contained herein or any of the other Credit Documents,   other than any such term referred to in any other Section of this Section 9.1, and such default shall   not have been remedied or waived within thirty (30) days after the earlier of (i) an Authorized   Officer of such Borrower becoming aware of such default, or (ii) receipt by the Borrower of notice   from the Administrative Agent or any Lender of such default; provided, however, if such default is   not capable of being cured within such thirty (30) day period, such period shall be extended for a   reasonable period of time (not to exceed thirty (30) additional days), so long as such Credit Party   has commenced and is diligently pursuing such cure within such initial thirty (30) day period; or   (f) Involuntary Bankruptcy; Appointment of Receiver, etc.  (i) A court of competent   jurisdiction shall enter a decree or order for relief in respect of any Credit Party or any of its   Subsidiaries in an involuntary case under the Bankruptcy Code or Debtor Relief Laws now or   hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted     

 

   107   under any applicable federal or state law; or (ii) an involuntary case shall be commenced against   any Credit Party or any of its Subsidiaries under the Bankruptcy Code or other Debtor Relief Laws   now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the   appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar   powers over any Credit Party or any of its Subsidiaries, or over all or a substantial part of its   property, shall have been entered; or there shall have occurred the involuntary appointment of an   interim receiver, trustee or other custodian of any Credit Party or any of its Subsidiaries for all or   a substantial part of its property; or a warrant of attachment, execution or similar process shall have   been issued against any substantial part of the property of any Credit Party or any of its Subsidiaries,   and any such event described in this clause (ii) shall continue for sixty (60) days without having   been dismissed, bonded or discharged; or   (g) Voluntary Bankruptcy; Appointment of Receiver, etc.  (i) Any Credit Party or any   of its Subsidiaries shall have an order for relief entered with respect to it or shall commence a   voluntary case under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect,   or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an   involuntary case to a voluntary case, under any such law, or shall consent to the appointment of or   taking possession by a receiver, trustee or other custodian for all or a substantial part of its property;   or any Credit Party or any of its Subsidiaries shall make any assignment for the benefit of creditors;   or (ii) any Credit Party or any of its Subsidiaries shall be unable, or shall fail generally, or shall   admit in writing its inability, to pay its debts as such debts become due; or the board of directors   (or similar governing body) of any Credit Party or any of its Subsidiaries or any committee thereof   shall adopt any resolution or otherwise authorize any action to approve any of the actions referred   to herein or in Section 9.1(f); or   (h) Judgments and Attachments.  (i) Any one or more money judgments, writs or   warrants of attachment or similar process against all or any material portion of any property of any   Credit Party or an Unencumbered Property Owner or involving an aggregate amount at any time in   excess of $2,000,000 (to the extent not adequately covered by insurance as to which a solvent and   unaffiliated insurance company has acknowledged coverage) shall be entered or filed against any   Credit Party or any of its Subsidiaries or any of their respective assets and shall remain   undischarged, unvacated, unbonded or unstayed for a period of thirty (30) days; or (ii) any non-   monetary judgment or order shall be rendered against any Credit Party or any of its Subsidiaries   that would reasonably be expected to have a Material Adverse Effect, and shall remain   undischarged, unvacated, unbonded or unstayed for a period of thirty (30) days; or   (i) Dissolution.  Any order, judgment or decree shall be entered against any Credit   Party or any of its Subsidiaries decreeing the dissolution or split up of such Credit Party or such   Subsidiary and such order shall remain undischarged or unstayed for a period in excess of thirty   (30) days; or   (j) Pension Plans.  There shall occur one or more ERISA Events which individually   or in the aggregate results in liability of any Credit Party, any of its Subsidiaries or any of their   respective ERISA Affiliates in excess of $2,000,000 during the term hereof and which is not paid   by the applicable due date; or   (k) Change of Control.  A Change of Control shall occur; or   (l) Invalidity of Credit Documents and Other Documents.  At any time after the   execution and delivery thereof, (i) this Agreement or any other Credit Document ceases to be in   full force and effect (other than by reason of the satisfaction in full of the Obligations (other than     

 

   108   contingent and indemnified obligations not then due and owing) in accordance with the terms   hereof) or shall be declared null and void, or (ii) any Credit Party shall contest the validity or   enforceability of any Credit Document in writing or deny in writing that it has any further liability,   including with respect to future advances by the Lenders, under any Credit Document to which it   is a party; or   (m) Failure to Maintain REIT Status.  The Parent shall, for any reason, lose or fail to   maintain its status as a REIT or the Borrower shall, for any reason, lose or fail to maintain its status   as any of the following:  a REIT, a partnership or other disregarded entity (in each case, for federal   income tax purposes); or   (n) Management Agreement.  There occurs a monetary or material default under a   management agreement with respect to an Unencumbered Pool Property (which material default   shall include any default which would permit the manager under any such management agreement   to terminate such management agreement or would otherwise result in a material increase of the   obligations of the Unencumbered Property Owner that is a party to such management agreement)   and such default is not remedied prior to the date which is the earlier of (i) thirty (30) days from   the occurrence of the event or condition which caused, led to, or resulted in such default, and (ii)   the last day of any cure period provided in such management agreement for such default.   Section 9.2 Remedies.  Upon the occurrence of any Event of Default described in Section   9.1(f) or Section 9.1(g), automatically, and (2) upon the occurrence and during the continuance of any other   Event of Default, at the request of (or with the consent of) the Required Lenders, upon notice to the   Borrower by the Administrative Agent, (A) the Revolving Commitments, if any, of each Lender having   such Revolving Commitments and the obligation of the Issuing Bank to issue any Letter of Credit shall   immediately terminate; (B) each of the following shall immediately become due and payable, in each case   without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly   waived by each of the Credit Parties: (I) the unpaid principal amount of and accrued interest on the Loans,   (II) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then   outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or   shall be entitled at such time to present, the drafts or other documents or certificates required to draw under   such Letters of Credit), and (III) all other Obligations; provided, the foregoing shall not affect in any way   the obligations of the Lenders under Section 2.2(b)(iii) or Section 2.3(e);  and  (C) the Administrative Agent   shall direct the Borrower to pay (and the Borrower hereby agrees upon receipt of such notice, or upon the   occurrence of any Event of Default specified in Section 9.1(f) and Section 9.1(g) to pay) to the   Administrative Agent such additional amounts of cash, to be held as security for such Borrower’s   reimbursement Obligations in respect of Letters of Credit then outstanding under arrangements acceptable   to the Administrative Agent, equal to the Outstanding Amount of the Letter of Credit Obligations at such   time.  Notwithstanding anything herein or otherwise to the contrary, any Event of Default occurring   hereunder shall continue to exist (and shall be deemed to be continuing) until such time as such Event of   Default has been cured to the satisfaction of the Required Lenders or waived in writing in accordance with   the terms of Section 11.4.   Section 9.3 Application of Funds.  After the exercise of remedies provided for in Section 9.2   (or after the Loans have automatically become immediately due and payable), any amounts received on   account of the Obligations shall be applied by the Administrative Agent in the following order:   First, to payment of that portion of the Obligations constituting fees, indemnities, expenses   and other amounts (other than principal, interest and Letter of Credit Fees but including without   limitation all reasonable and documented out-of-pocket fees, expenses and disbursements of any     

 

   109   law firm or other counsel and amounts payable under Section 3.1, Section 3.2 and Section 3.3)   payable to the Administrative Agent, in its capacity as such;   Second, to payment of that portion of the Obligations constituting fees, indemnities and   other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders   including without limitation all reasonable and documented out-of-pocket fees, expenses and   disbursements of any law firm or other counsel and amounts payable under Section 3.1, Section   3.2 and Section 3.3), ratably among the Lenders in proportion to the respective amounts described   in this clause Second payable to them;   Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter   of Credit Fees and interest on the Loans, Letter of Credit Borrowings and other Obligations ratably   among such parties in proportion to the respective amounts described in this clause Third payable   to them; and   Fourth, to (a) payment of that portion of the Obligations constituting unpaid principal of   the Loans and Letter of Credit Borrowings, (b) payment of breakage, termination or other amounts   owing in respect of any Swap Contract between the Borrower or any of its Subsidiaries and any   Swap Bank, to the extent such Swap Contract is permitted hereunder, (c) payments of amounts due   under any Treasury Management Agreement between the Borrower or any of its Subsidiaries and   any Treasury Management Bank, and (d) the Administrative Agent for the account of the Issuing   Bank, to Cash Collateralize that portion of the Letter of Credit Obligations comprised of the   aggregate undrawn amount of Letters of Credit, ratably among such parties in proportion to the   respective amounts described in this clause Fourth payable to them; and   Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to   the Borrower or as otherwise required by Applicable Laws.   Subject to Section 2.3, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of   Credit pursuant to clause Fourth above shall be applied to satisfy drawings under such Letters of Credit as   they occur.  If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been   fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order   set forth above.   Notwithstanding the foregoing, Obligations arising under Treasury Management Agreements and Swap   Contracts shall be excluded from the application described above if the Administrative Agent has not   received written notice, together with such supporting documentation as the Administrative Agent may   request, from the applicable Treasury Management Bank or Swap Bank, as the case may be.  Each Treasury   Management Bank or Swap Bank not a party to this Agreement that has given the notice contemplated by   the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the   appointment of the Administrative Agent pursuant to the terms of Article X for itself and its Affiliates as if   a “Lender” party hereto.   Section 10 AGENCY   Section 10.1 Appointment and Authority.   (a) Each of the Lenders and the Issuing Bank hereby irrevocably appoints KeyBank   to act on its behalf as the Administrative Agent hereunder and under the other Credit Documents   and authorizes the Administrative Agent to take such actions on its behalf and to exercise such   powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with   such actions and powers as are reasonably incidental thereto.  The provisions of this Section are     

 

   110   solely for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and no Credit   Party nor any of its Subsidiaries shall have rights as a third party beneficiary of any of such   provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Credit   Documents (or any other similar term) with reference to the Administrative Agent is not intended   to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of   any Applicable Law.  Instead such term is used as a matter of market custom, and is intended to   create or reflect only an administrative relationship between contracting parties.   (b) Each of the Lenders hereby irrevocably appoints, designates and authorizes the   Administrative Agent to take such action on its behalf under the provisions of this Agreement and   each Credit Document and to exercise such powers and perform such duties as are expressly   delegated to it by the terms of this Agreement or any Credit Document, together with such powers   as are reasonably incidental thereto.  Notwithstanding any provision to the contrary contained   elsewhere herein or in any applicable Credit Document, the Administrative Agent shall not have   any duties or responsibilities, except those expressly set forth herein or therein, nor shall the   Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or   participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities   shall be read into this Agreement or any applicable Credit Document or otherwise exist against the   Administrative Agent.  Without limiting the generality of the foregoing sentence, the use of the   term “agent” herein and in any Credit Documents with reference to the Administrative Agent is not   intended to connote any fiduciary or other implied (or express) obligations arising under agency   doctrine of any Applicable Law.  Instead, such term is used merely as a matter of market custom,   and is intended to create or reflect only an administrative relationship between independent   contracting parties.     Section 10.2 Rights as a Lender.  The Person serving as the Administrative Agent hereunder   shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the   same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless   otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the   Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept   deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity   for and generally engage in any kind of business with the Borrower or any Subsidiary of the Borrower or   other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty   to account therefor to the Lenders.   Section 10.3 Exculpatory Provisions.   (a) The Administrative Agent shall not have any duties or obligations except those   expressly set forth herein and in the other Credit Documents, and its duties hereunder shall be   administrative in nature.  Without limiting the generality of the foregoing, the Administrative   Agent:   (i) shall not be subject to any fiduciary or other implied duties, regardless of   whether a Default has occurred and is continuing;   (ii) shall not have any duty to take any discretionary action or exercise any   discretionary powers, except discretionary rights and powers expressly contemplated   hereby or by the other Credit Documents that the Administrative Agent is required to   exercise as directed in writing by the Required Lenders (or such other number or percentage   of the Lenders as shall be expressly provided for herein or in the other Credit Documents),   provided that the Administrative Agent shall not be required to take any action that, in its     

 

   111   opinion or the opinion of its counsel, may expose the Administrative Agent to liability or   that is contrary to any Credit Document or Applicable Law, including for the avoidance of   doubt any action that may be in violation of the automatic stay under any Debtor Relief   Law or that may effect a forfeiture, modification or termination of property of a Defaulting   Lender in violation of any Debtor Relief Law; and   (iii) shall not, except as expressly set forth herein and in the other Credit   Documents, have any duty to disclose, and shall not be liable for the failure to disclose,   any information relating to the Borrower or any of its Affiliates that is communicated to or   obtained by the Person serving as the Administrative Agent or any of its Affiliates in any   capacity.   (b) The Administrative Agent shall not be liable for any action taken or not taken by   it (i) with the consent or at the request of the Required Lenders (or such other number or percentage   of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall   be necessary, under the circumstances as provided in Sections 11.4 and 9.2) or (ii) in the absence   of its own gross negligence or willful misconduct, as determined by a court of competent   jurisdiction by final and nonappealable judgment.  The Administrative Agent shall be deemed not   to have knowledge of any Default unless and until notice describing such Default is given to the   Administrative Agent in writing by the Borrower, a Lender or an Issuing Bank.   (c) The Administrative Agent shall not be responsible for or have any duty to ascertain   or inquire into (i) any statement, warranty or representation made in or in connection with this   Agreement or any other Credit Document, (ii) the contents of any certificate, report or other   document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the   performance or observance of any of the covenants, agreements or other terms or conditions set   forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,   effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement,   instrument or document or (v) the satisfaction of any condition set forth in Section 5 or elsewhere   herein, other than to confirm receipt of items expressly required to be delivered to the   Administrative Agent.   Section 10.4 Reliance by Administrative Agent.  The Administrative Agent shall be entitled to   rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent,   statement, instrument, document or other writing (including any electronic message, Internet or intranet   website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise   authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to   it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any   liability for relying thereon.  In determining compliance with any condition hereunder to the making of a   Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled   to the satisfaction of a Lender or an Issuing Bank, the Administrative Agent may presume that such   condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have   received notice to the contrary from such Lender or the Issuing Bank prior to the making of such Loan or   the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may   be counsel for the Borrower and its Subsidiaries), independent accountants and other experts selected by it,   and shall not be liable for any action taken or not taken by it in accordance with the advice of any such   counsel, accountants or experts.   Section 10.5 Delegation of Duties.  The Administrative Agent may perform any and all of its   duties and exercise its rights and powers hereunder or under any other Credit Document by or through any   one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such     

 

   112   sub-agent may perform any and all of its duties and exercise its rights and powers by or through their   respective Related Parties.  The exculpatory provisions of this Section shall apply to any such sub-agent   and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their   respective activities in connection with the syndication of the credit facilities provided for herein as well as   activities as Administrative Agent.  The Administrative Agent shall not be responsible for the negligence   or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a   final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful   misconduct in the selection of such sub-agents.   Section 10.6 Resignation of Administrative Agent.   (a) The Administrative Agent may at any time give notice of its resignation to the   Lenders, the Issuing Bank and the Borrower.  Upon receipt of any such notice of resignation, the   Required Lenders shall have the right, with the consent of the Borrower, to appoint a successor,   which shall be a bank with an office in the United States, or an Affiliate of any such bank with an   office in the United States.  If no such successor shall have been so appointed by the Required   Lenders and shall have accepted such appointment within thirty (30) days after the retiring   Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the   Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may   (but shall not be obligated to) on behalf of the Lenders and the Issuing Bank, appoint a successor   Administrative Agent meeting the qualifications set forth above.  Whether or not a successor has   been appointed such resignation shall become effective in accordance with such notice on the   Resignation Effective Date.     (b) If the Person servicing as Administrative Agent is a Defaulting Lender pursuant to   clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable   Law by notice in writing to the Borrower and such Person, remove such Person as the   Administrative Agent and, with the consent of the Borrower, appoint a successor.  If no such   successor shall have been so appointed by the Required Lenders and shall have accepted such   appointment within 30 days after such notice (or such earlier day as shall be agreed by the Required   Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in   accordance with such notice on the Removal Effective Date.   (c) With effect from the Resignation Effective Date or the Removal Effective Date (as   applicable) (1) the retiring or removed Administrative Agent shall be discharged from its duties   and obligations hereunder and under the other Credit Documents (except that in the case of any   collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Bank   under any of the Credit Documents, the retiring or removed Administrative Agent shall continue to   hold such collateral security until such time as a successor Administrative Agent is appointed) and   (2) all payments, communications and determinations provided to be made by, to or through the   Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly,   until such time as the Required Lenders shall appoint a successor Administrative Agent as provided   for above in this Section.  Upon the acceptance of a successor’s appointment as Administrative   Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers,   privileges and duties of the retiring or removed Administrative Agent, and the retiring or removed   Administrative Agent shall be discharged from all of its duties and obligations hereunder or under   the other Credit Documents (if not already discharged therefrom as provided above in this Section).    The fees payable by the Borrower to a successor Administrative Agent shall be the same as those   payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After   the retiring or removed Administrative Agent’s resignation hereunder and under the other Credit   Documents, the provisions of this Section 10 and Section 11.2 shall continue in effect for the benefit     

 

   113   of such retiring or removed Administrative Agent, its sub-agents and their respective Related   Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or   removed Administrative Agent was acting as Administrative Agent.   Section 10.7 Non-Reliance on Administrative Agent and Other Lenders.  Each of the Lenders   and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative   Agent or any other Lender or any of their Related Parties and based on such documents and information as   it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each of   the Lenders and the Issuing Bank also acknowledges that it will, independently and without reliance upon   the Administrative Agent or any other Lender or any of their Related Parties and based on such documents   and information as it shall from time to time deem appropriate, continue to make its own decisions in taking   or not taking action under or based upon this Agreement, any other Credit Document or any related   agreement or any document furnished hereunder or thereunder.   Section 10.8 No Other Duties, etc.  Anything herein to the contrary notwithstanding, none of   the Book Runners, Lead Arrangers, Documentation Agents, Co-Syndication Agents or similarly titled   Persons listed on the cover page hereof (if any) shall have any powers, duties or responsibilities under this   Agreement or any of the other Credit Documents, except in its capacity, as applicable, as the Administrative   Agent, a Lender or an Issuing Bank hereunder.   Section 10.9 Administrative Agent May File Proofs of Claim.  In case of the pendency of any   proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the   Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Obligation shall   then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the   Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but   not obligated) by intervention in such proceeding or otherwise:   (a) to file and prove a claim for the whole amount of the principal and interest owing   and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations that are   owing and unpaid and to file such other documents as may be necessary or advisable in order to   have the claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim   for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing   Bank and the Administrative Agent and their respective agents and counsel and all other amounts   due the Lenders, the Issuing Bank and the Administrative Agent under Section 2.10 and Section   11.2) allowed in such judicial proceeding; and   (b) to collect and receive any monies or other property payable or deliverable on any   such claims and to distribute the same;   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such   judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to   the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of   such payments directly to the Lenders and the Issuing Bank, to pay to the Administrative Agent any amount   due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent   and its agents and counsel, and any other amounts due the Administrative Agent under Section 2.10 and   Section 11.2).   Section 10.10 Security Matters.     (a) As may be applicable at any time, the Lenders (including the Issuing Bank and the   Swingline Lender) irrevocably authorize the Administrative Agent, at its option and in its discretion     

 

   114   to release any Guarantor from its obligations under this Agreement and the other Credit Documents   if such Person ceases to be a Guarantor as a result of a transaction permitted under the Credit   Documents.  Upon request by the Administrative Agent at any time, the Required Lenders will   confirm in writing the Administrative Agent’s authority to release any Guarantor from its   obligations under this Agreement pursuant to this Section.   (b) As may be applicable at any time, anything contained in any of the Credit   Documents to the contrary notwithstanding, each of the Credit Parties, the Administrative Agent   and each holder of the Obligations hereby agrees that no holder of the Obligations shall have any   right individually to enforce this Agreement, the Notes or any other Credit Document, it being   understood and agreed that all powers, rights and remedies hereunder may be exercised solely by   the Administrative Agent, on behalf of the holders of the Obligations in accordance with the terms   hereof and, as may be applicable at any time, all powers, rights and remedies under any Credit   Documents may be exercised solely by the Administrative Agent.   (c) As may be applicable at any time, no Swap Contract or Treasury Management   Agreement will create (or be deemed to create) in favor of any Swap Bank or any Treasury   Management Banks, respectively that is a party thereto any rights in connection with the obligations   of the Borrower or any other Credit Party under the Credit Documents except as expressly provided   herein or in the other Credit Documents.     Section 11 MISCELLANEOUS   Section 11.1 Notices; Effectiveness; Electronic Communications.    (a) Notices Generally. Except in the case of notices and other communications   expressly permitted to be given by telephone (and except as provided in subsection (b) below), all   notices and other communications provided for herein shall be in writing and shall be delivered by   hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or   electronic mail as follows, and all notices and other communications expressly permitted hereunder   to be given by telephone shall be made to the applicable telephone number, as follows:   (i) if to the Administrative Agent, the Borrower or any other Credit Party, to   the address, telecopier number, electronic mail address or telephone number specified in   Appendix B:   (ii) if to any Lender, the Issuing Bank or Swingline Lender, to the address,   telecopier number, electronic mail address or telephone number in its Administrative   Questionnaire on file with the Administrative Agent.   Notices and other communications sent by hand or overnight courier service, or mailed by certified or   registered mail, shall be deemed to have been given when received; notices and other communications sent   by telecopier shall be deemed to have been given when sent (except that, if not given during normal business   hours for the recipient, shall be deemed to have been given at the opening of business on the next business   day for the recipient).  Notices and other communications delivered through electronic communications to   the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).   (b) Electronic Communications.  Notices and other communications to the Lenders   and the Issuing Bank hereunder may be delivered or furnished by electronic communication   (including e-mail and Internet or intranet websites) pursuant to procedures reasonably approved by   the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or     

 

   115   the Issuing Bank pursuant to Section 2 if such Lender or the Issuing Bank, as applicable, has   notified the Administrative Agent and the Borrower that it is incapable of receiving notices under   such Section by electronic communication.  The Administrative Agent or any Credit Party may, in   its discretion, agree to accept notices and other communications to it hereunder by electronic   communications pursuant to procedures approved by it, provided that approval of such procedures   may be limited to particular notices or communications.   Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent   to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the   intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other   written acknowledgement), provided that if such notice or other communication is not sent during the   normal business hours of the recipient, such notice or communication shall be deemed to have been sent at   the opening of business on the next business day for the recipient, and (ii) notices or communications posted   to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient   at its e-mail address as described in the foregoing clause (i) of notification that such notice or   communication is available and identifying the website address therefor.   (c) Change of Address, Etc.  Any party hereto may change its address, telecopier   number or electronic mail address for notices and other communications hereunder by notice to the   other parties hereto.   (d) Platform.   (i) Each Credit Party agrees that the Administrative Agent may, but shall not   be obligated to, make the Communications (as defined below) available to the Issuing Bank   and the other Lenders by posting the Communications on Debtdomain, Intralinks, Syndtrak   or a substantially similar electronic transmission system (the “Platform”).   (ii) The Platform is provided “as is” and “as available.”  The Agent Parties (as   defined below) do not warrant the adequacy of the Platform and expressly disclaim liability   for errors or omissions in the Communications.  No warranty of any kind, express, implied   or statutory, including, without limitation, any warranty of merchantability, fitness for a   particular purpose, non-infringement of third-party rights or freedom from viruses or other   code defects, is made by any Agent Party in connection with the Communications or the   Platform.  In no event shall the Administrative Agent or any of its Related Parties   (collectively, the “Agent Parties”) have any liability to the Borrower or the other Credit   Parties, any Lender or any other Person or entity for damages of any kind, including,   without limitation, direct or indirect, special, incidental or consequential damages, losses   or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s, any other   Credit Party’s or the Administrative Agent’s transmission of communications through the   Platform.  “Communications” means, collectively, any notice, demand, communication,   information, document or other material provided by or on behalf of any Credit Party   pursuant to any Credit Document or the transactions contemplated therein which is   distributed to the Administrative Agent, any Lender or the Issuing Bank by means of   electronic communications pursuant to this Section, including through the Platform.   Section 11.2 Expenses; Indemnity; Damage Waiver.   (a) Costs and Expenses.  The Credit Parties shall pay (i) all reasonable and   documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates   (including the reasonable and documented out-of-pocket fees, charges and disbursements of     

 

   116   counsel for the Administrative Agent (which counsel may include their respective employees)) in   connection with the syndication of the credit facilities provided for herein, the preparation,   negotiation, execution, delivery and administration of this Agreement and the other Credit   Documents or any amendments, modifications or waivers of the provisions hereof or thereof   (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all   reasonable and documented out-of-pocket expenses incurred by the Issuing Bank in connection   with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for   payment thereunder and (iii) all reasonable and documented out-of-pocket expenses incurred by   the Administrative Agent, any Lender or the Issuing Bank (including the reasonable and   documented out-of-pocket fees, charges and disbursements of any counsel for the Administrative   Agent, any Lender or the Issuing Bank (which counsel may include their respective employees)) in   connection with the enforcement or protection of its rights (A) in connection with this Agreement   and the other Credit Documents, including its rights under this Section, or (B) in connection with   the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses   incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of   Credit.     (b) Indemnification by the Credit Parties.  The Credit Parties shall indemnify the   Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Bank, and each   Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)   against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities   and related expenses (including the documented and reasonable out-of-pocket fees, charges and   disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against   any Indemnitee by any third party or by the Borrower or any of its Subsidiaries arising out of, in   connection with, or as a result of (i) the execution or delivery of this Agreement, any other Credit   Document or any agreement or instrument contemplated hereby or thereby or otherwise in   connection herewith or therewith, the performance by the parties hereto of their respective   obligations hereunder or thereunder or the consummation of the transactions contemplated hereby   or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom   (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit   if the documents presented in connection with such demand do not strictly comply with the terms   of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on   or from any property owned or operated by the Borrower or any of its Subsidiaries, or any   Environmental Liability related in any way to the Borrower or any of its Subsidiaries, (iv) the   execution or delivery of any commitment or fee letters in contemplation of this Agreement, the   other Credit Documents and the transactions hereunder, the performance by the parties thereto of   their respective obligations thereunder or the consummation of the transactions contemplated   thereby, or (v) any actual or prospective claim, litigation, investigation or proceeding relating to   any of the foregoing, whether based on contract, tort or any other theory, whether brought by a   third party or by the Borrower or any of its Subsidiaries, and regardless of whether any Indemnitee   is a party thereto, provided that such indemnity shall not, as to any Indemnitee, be available to the   extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court   of competent jurisdiction by final and nonappealable judgment to have resulted from the gross   negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the   Borrower or any of its Subsidiaries against an Indemnitee for breach in bad faith of such   Indemnitee’s obligations hereunder or under any other Credit Document, if the Borrower or such   Subsidiary has obtained a final and nonappealable judgment in its favor on such claim as   determined by a court of competent jurisdiction.  This Section 11.2(b) shall not apply with respect   to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-   Tax claim.     

 

   117   (c) Reimbursement by Lenders.  To the extent that the Credit Parties for any reason   fail to pay any amount required under subsection (a) or (b) of this Section to be paid by it to the   Administrative Agent (or any sub-agent thereof), the Issuing Bank or any Related Party of any of   the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-   agent), the Issuing Bank or such Related Party, as the case may be, such Lender’s pro rata share (in   each case, determined as of the time that the applicable unreimbursed expense or indemnity   payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified   loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted   against the Administrative Agent (or any such sub-agent) or the Issuing Bank in its capacity as   such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or   any such sub-agent) or the Issuing Bank in connection with such capacity.  The obligations of the   Lenders under this subsection (c) are subject to the provisions of this Agreement that provide that   their obligations are several in nature, and not joint and several.   (d) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by   Applicable Law, none of the Credit Parties shall assert, and each hereby waives, any claim against   any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages   (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this   Agreement, any other Credit Document or any agreement or instrument contemplated hereby, the   transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds   thereof.  No Indemnitee referred to in subsection (b) above shall be liable for any damages arising   from the use by unintended recipients of any information or other materials distributed by such   Indemnitee through telecommunications, electronic or other information transmission systems in   connection with this Agreement or the other Credit Documents or the transactions contemplated   hereby or thereby.   (e) Payments.  All amounts due under this Section shall be payable promptly, but in   any event within ten (10) Business Days after written demand therefor (including delivery of copies   of applicable invoices).   (f) Survival.  The provisions of this Section shall survive resignation or replacement   of the Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender, termination of   the commitments hereunder and repayment, satisfaction and discharge of the loans and obligations   hereunder.   Section 11.3 Set-Off.  Subject in all respects to Section 2.14, if an Event of Default shall have   occurred and be continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby   authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off   and apply any and all deposits (general or special, time or demand, provisional or final, in whatever   currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender,   the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrower or any other Credit   Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing   under this Agreement or any other Credit Document to such Lender or the Issuing Bank, irrespective of   whether or not such Lender or the Issuing Bank shall have made any demand under this Agreement or any   other Credit Document and although such obligations of the Borrower or such Credit Party may be   contingent or unmatured or are owed to a branch or office of such Lender or the Issuing Bank different   from the branch or office holding such deposit or obligated on such indebtedness.  The rights of each   Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to other rights   and remedies (including other rights of setoff) that such Lender, the Issuing Bank or their respective   Affiliates may have.  Each of the Lenders and the Issuing Bank agrees to notify the Borrower and the     

 

   118   Administrative Agent promptly after any such setoff and application, provided that the failure to give such   notice shall not affect the validity of such setoff and application.   Section 11.4 Amendments and Waivers.   (a) Required Lenders Consent.  Subject to Section 11.4(b) and Section 11.4(c), no   amendment, modification, termination or waiver of any provision of the Credit Documents, or   consent to any departure by any Credit Party therefrom, shall in any event be effective without the   written concurrence of the Administrative Agent and the Required Lenders; provided that (i) the   Administrative Agent may, with the consent of the Borrower only, amend, modify or supplement   this Agreement to cure any ambiguity, omission, defect or inconsistency, so long as such   amendment, modification or supplement does not adversely affect the rights of any Lender or the   Issuing Bank, (ii) the Fee Letter may be amended, or rights or privileges thereunder waived, in a   writing executed only by the parties thereto, (iii) no Defaulting Lender shall have any right to   approve or disapprove any amendment, waiver or consent hereunder, except that (A) the   Commitments, Loans and/or Letter of Credit Obligations of such Lender may not be increased or   extended without the consent of such Lender, and (B) any waiver, amendment or modification   requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting   Lender disproportionately adversely relative to other affected Lenders shall require the consent of   such Defaulting Lender, (iv) each Lender is entitled to vote as such Lender sees fit on any   bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the   provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the   unanimous consent provisions set forth herein, and (v) the Required Lenders shall determine   whether or not to allow any Credit Party to use cash collateral in the context of a bankruptcy or   insolvency proceeding and such determination shall be binding on all of the Lenders; provided   further that, subject further to clauses (b) and (c) below, (A) any term of this Agreement or of any   other Credit Document relating solely to the rights or obligations of any Term Lenders in respect   of any Term Loan, and not any other Lenders, may be amended, and the performance or observance   by the Borrower or any other Credit Party of any such terms may be waived (either generally or in   a particular instance and either retroactively or prospectively) with, but only with, the written   consent of the Required Term Lenders (and, in the case of an amendment to any Credit Document,   the written consent of each Loan Party a party thereto), and (B) any term of this Agreement or of   any other Credit Document relating solely to the rights or obligations of the Revolving Lenders,   and not any other Lenders, may be amended, and the performance or observance by the Borrower   or any other Credit Party of any such terms may be waived (either generally or in a particular   instance and either retroactively or prospectively) with, and only with, the written consent of the   Required Revolving Lenders (and, in the case of an amendment to any Credit Document, the written   consent of each Loan Party a party thereto).   (b) Affected Lenders’ Consent.  Without the written consent of each Lender (other   than a Defaulting Lender except as provided in clause (a)(iii) above) that would be affected thereby,   no amendment, modification, termination, or consent shall be effective if the effect thereof would:   (i) extend the Revolving Commitment Termination Date, except pursuant to   an extension thereof effected in accordance with Section 2.18, or extend the Term Maturity   Date;   (ii) waive, reduce or postpone any scheduled repayment (but not prepayment)   or alter the required application of any prepayment pursuant to Section 2.12 or the   application of funds pursuant to Section 9.3,  as applicable;     

 

   119   (iii) extend the stated expiration date of any Letter of Credit, beyond the   Revolving Commitment Termination Date;   (iv) reduce the principal of or the rate of interest on any Loan (other than any   waiver of the imposition of the Default Rate pursuant to Section 2.9) or any fee or premium   payable hereunder, or change the manner of computation of any financial or other ratio   (including any change in any applicable defined term) used in determining the Applicable   Margin or Facility Fee Rate that would result in a reduction of any interest rate on any Loan   or any fee payable hereunder; provided, however, that only the consent of the Required   Lenders shall be necessary to amend the definition of “Default Rate” or to waive any   obligation of the Borrower to pay interest at the Default Rate;   (v) extend the time for payment of any such interest or fees;    (vi) reduce the principal amount of any Loan or any reimbursement obligation   in respect of any Letter of Credit;   (vii) amend, modify, terminate or waive any provision of this Section 11.4(b)   or Section 11.4(c) or any other provision of this Agreement that expressly provides that the   consent of all Lenders is required;   (viii) change the percentage of the outstanding principal amount of Loans that   is required for the Lenders or any of them to take any action hereunder or amend the   definition of “Required Lenders”, “Required Revolving Lenders”, “Required Term   Lenders” or “Revolving Commitment Percentage” or modify the amount of the   Commitment of any Lender;   (ix) as may be applicable at any time, release the Parent (as Guarantor) or all   or substantially all of the other Guarantors from their respective obligations hereunder, in   each case, except as expressly provided in the Credit Documents; or   (x) consent to the assignment or transfer by the Borrower of any of its rights   and obligations under any Credit Document (except pursuant to a transaction permitted   hereunder).   (c) Other Consents.  No amendment, modification, termination or waiver of any   provision of the Credit Documents, or consent to any departure by the Borrower or any other Credit   Party therefrom, shall:   (i) increase any Revolving Commitment of any Lender over the amount   thereof then in effect without the consent of such Lender; provided, no amendment,   modification or waiver of any condition precedent, covenant, Default or Event of Default   shall constitute an increase in any Revolving Commitment of any Lender;   (ii) amend, modify, terminate or waive any provision hereof relating to the   Swingline Sublimit or the Swingline Loans without the consent of the Swingline Lender;   (iii) amend, modify, terminate or waive any obligation of Lenders relating to   the purchase of participations in Letters of Credit as provided in Section 2.3(c) without the   written consent of the Administrative Agent and of the Issuing Bank;     

 

   120   (iv) amend, modify, terminate or waive any provision of this Section 11 as the   same applies to the Administrative Agent, or any other provision hereof as the same applies   to the rights or obligations of the Administrative Agent, in each case without the consent   of such Administrative Agent;    (v) amend the provisions of Section 2.13(d)  or Section 9.3 without the   consent of all Lenders;   (vi) amend, modify, terminate or waive any of the provisions of any Credit   Document related to advance rates related to the Unencumbered Pool Properties or the   definitions of (or provisions relating to) the terms “Aggregate Unencumbered Pool   Property Value Amount,” “Unencumbered Pool Property Value,” “Borrowing Base,”   “Unencumbered Pool Property,” or the components of any of the foregoing (to the extent   related to the calculation of the Borrowing Base or the approval and/or qualifications   respecting Unencumbered Pool Properties) without the written consent of each of the   Lenders (other than any Defaulting Lender);   (vii) unless signed by the Credit Parties and the Required Revolving Lenders:   (1) amend or waive compliance with the conditions precedent to the   obligations of the Revolving Lenders to make any Credit Extension;   (2) amend or waive non-compliance with any provision of Section 2.11(c);   (3) waive any Default or Event of Default for the purpose of satisfying the   conditions precedent to the obligations of the Revolving Lenders to make any Credit   Extension; or   (4) change any of the provisions of this clause (c)(vii); and   (d) Execution of Amendments, etc.  The Administrative Agent may, but shall have no   obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or   consents on behalf of such Lender.  Any waiver or consent shall be effective only in the specific   instance and for the specific purpose for which it was given.  No notice to or demand on any Credit   Party in any case shall entitle any Credit Party to any other or further notice or demand in similar   or other circumstances.  Any amendment, modification, termination, waiver or consent effected in   accordance with this Section 11.4 shall be binding upon each Lender at the time outstanding, each   future Lender and, if signed by a Credit Party, on such Credit Party.   Section 11.5 Successors and Assigns.   (a) Successors and Assigns Generally.  The provisions of this Agreement shall be   binding upon and inure to the benefit of the parties hereto and their respective successors and   assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign   or otherwise transfer any of its rights or obligations hereunder without the prior written consent of   the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of   its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of   subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of   subsection (d) of this Section or (iii) by way of pledge or assignment of a security interest subject   to the restrictions of subsection (e) of this Section (and any other attempted assignment or transfer   by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall     

 

   121   be construed to confer upon any Person (other than the parties hereto, their respective successors   and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section   and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative   Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this   Agreement.    (b) Assignments by Lenders.  Any Lender may at any time assign to one or more   assignees all or a portion of its rights and obligations under this Agreement (including all or a   portion of its Commitments, Loans and obligations hereunder at the time owing to it); provided that   any such assignment shall be subject to the following conditions:   (i) Minimum Amounts.   (A) in the case of an assignment of the entire remaining amount of the   assigning Lender’s Commitments and the Loans at the time owing to it or in the   case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund,   no minimum amount need be assigned; and   (B) in any case not described in subsection (b)(i)(A) of this Section,   the aggregate amount of the Commitments (which for this purpose includes loans   and obligations in respect thereof outstanding thereunder) or, if the Commitments   are not then in effect, the principal outstanding balance of the Loans of the   assigning Lender subject to each such assignment (determined as of the date the   Assignment Agreement with respect to such assignment is delivered to the   Administrative Agent or, if “Trade Date” is specified in the Assignment   Agreement, as of the Trade Date) shall not be less than $5,000,000, unless each of   the Administrative Agent and, so long as no Event of Default shall then exist, the   Borrower otherwise consents (each such consent not to be unreasonably withheld   or delayed).   (ii) Proportionate Amounts.  Each partial assignment shall be made as an   assignment of a proportionate part of all the assigning Lender’s rights and obligations under   this Agreement with respect to the Commitments and Loans assigned.   (iii) Required Consents.  No consent shall be required for any assignment   except to the extent required by subsection (b)(i)(B) of this Section and, in addition:   (A) the consent of the Borrower (such consent not to be unreasonably   withheld or delayed) shall be required unless (x) an Event of Default shall have   occurred and is continuing at the time of such assignment or (y) such assignment   is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the   Borrower shall be deemed to have consented to any such assignment unless it shall   object thereto by written notice to the Administrative Agent within five (5)   Business Days after having received notice thereof;   (B) the consent of the Administrative Agent (such consent not to be   unreasonably withheld or delayed) shall be required for assignments in respect of   Revolving Commitments or any portion of the Term Loan if such assignment is to   a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund   with respect to such Lender;     

 

   122   (C) the consent of the Issuing Bank (such consent not to be   unreasonably withheld or delayed) shall be required for any assignment in respect   of any Revolving Commitment; and   (D) the consent of the Swingline Lender (such consent not to be   unreasonably withheld or delayed) shall be required for any assignment in respect   of any Revolving Commitment.   (iv) Assignment Agreement.  The parties to each assignment shall execute and   deliver to the Administrative Agent an Assignment Agreement, together with a processing   and recordation fee in the amount of $3,500, unless waived, in whole or in part by the   Administrative Agent in its discretion.  The assignee, if it is not a Lender, shall deliver to   the Administrative Agent an Administrative Questionnaire.   (v) No Assignment to Borrower, Affiliates or Subsidiaries.  No such   assignment shall be made to the Borrower, any of the Borrower’s Affiliates or Subsidiaries,   or any Defaulting Lender.   (vi) No Assignment to Natural Persons.  No such assignment shall be made to   a natural person.   (vii) Certain Additional Payments.  In connection with any assignment of rights   and obligations of any Defaulting Lender hereunder, no such assignment shall be effective   unless and until, in addition to the other conditions thereto set forth herein, the parties to   the assignment shall make such additional payments to the Administrative Agent in an   aggregate amount sufficient, upon distribution thereof as appropriate (which may be   outright payment, purchases by the assignee of participations or subparticipations, or other   compensating actions, including funding, with the consent of the Borrower and the   Administrative Agent, the applicable pro rata share of Loans previously requested but not   funded by the Defaulting Lender, to each of which the applicable assignee and assignor   hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed   by such Defaulting Lender to the Administrative Agent, the Issuing Bank, the Swingline   Lender and each other Lender hereunder (and interest accrued thereon), and (y) acquire   (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of   Credit and Swingline Loans in accordance with its Revolving Commitment Percentage.    Notwithstanding the foregoing, in the event that any assignment of rights and obligations   of any Defaulting Lender hereunder shall become effective under Applicable Law without   compliance with the provisions of this paragraph, then the assignee of such interest shall   be deemed to be a Defaulting Lender for all purposes of this Agreement until such   compliance occurs.   Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this   Section, from and after the effective date specified in each Assignment Agreement, the assignee thereunder   shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment Agreement,   have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder   shall, to the extent of the interest assigned by such Assignment Agreement, be released from its obligations   under this Agreement (and, in the case of an Assignment Agreement covering all of the assigning Lender’s   rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue   to be entitled to the benefits of Sections 3.1, 3.2 and 3.3 (subject to the requirements and limitations therein)   and 11.2 with respect to facts and circumstances occurring prior to the effective date of such assignment.    If requested by the assignee, the Borrower will execute and deliver, at their own expense, Notes to the     

 

   123   assignee evidencing the interests taken by way of assignment hereunder.  Any assignment or transfer by a   Lender of rights or obligations under this Agreement that does not comply with this subsection shall be   treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and   obligations in accordance with subsection (d) of this Section.   (c) Register.  The Administrative Agent, acting solely for this purpose as an agent of   the Borrower, shall maintain at one of its offices in the United States, a copy of each Assignment   Agreement delivered to it and a register for the recordation of the names and addresses of the   Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and   Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).    The entries in the Register shall be conclusive absent manifest error, and the Borrower, the   Administrative Agent and the Lenders shall treat each Person whose name is recorded in the   Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,   notwithstanding notice to the contrary.  The Register shall be available for inspection by the   Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior   notice.   (d) Any Lender may at any time, without the consent of, or notice to, the Borrower or   the Administrative Agent, the Issuing Bank or the Swingline Lender, sell participations to any   Person (other than a natural Person or the Borrower or any of the Borrower’s Affiliates or   Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations   under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it);   provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such   Lender shall remain solely responsible to the other parties hereto for the performance of such   obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Bank and Lenders shall   continue to deal solely and directly with such Lender in connection with such Lender’s rights and   obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible   for the indemnity under Section 11.2(c) with respect to any payments made by such Lender to its   Participant(s).   Any agreement or instrument pursuant to which a Lender sells such a participation shall provide   that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment,   modification or waiver of any provision of this Agreement; provided that such agreement or instrument   may provide that such Lender will not, without the consent of the Participant, agree to any amendment,   modification or waiver described in clauses (b) or (c) of Section 11.4 that affects such Participant.  The   Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.1, 3.2 and 3.3 (subject   to the requirements and limitations therein, including the requirements under Section 3.3(f) (it being   understood that the documentation required under Section 3.3(f) shall be delivered to the participating   Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to   clause (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of   Sections 2.17 and 3.4 as if it were an assignee under clause (b) of this Section; and (B) shall not be entitled   to receive any greater payment under Sections 3.2 or 3.3, with respect to any participation, than its   participating Lender would have been entitled to receive, except to the extent such entitlement to receive a   greater payment results from a Change in Law that occurs after the Participant acquired the applicable   participation.  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use   reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.17 with respect   to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of   Section 11.3 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.14   as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a   non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each   Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other     

 

   124   obligations under the Credit Documents (the “Participant Register”); provided that no Lender shall have   any obligation to disclose all or any portion of the Participant Register (including the identity of any   Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of   Credit or its other obligations under any Credit Document) to any Person except to the extent that such   disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in   registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the   Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person   whose name is recorded in the Participant Register as the owner of such participation for all purposes of   this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative   Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant   Register.   (e) Certain Pledges.  Any Lender may at any time pledge or assign a security interest   in all or any portion of its rights under this Agreement, or any promissory notes evidencing its   interests hereunder, to secure obligations of such Lender, including any pledge or assignment to   secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall   release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee   for such Lender as a party hereto.   Section 11.6 Independence of Covenants. All covenants hereunder shall be given independent   effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it   would be permitted by an exception to, or would otherwise be within the limitations of, another covenant   shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.   Section 11.7 Survival of Representations, Warranties and Agreements.  All representations,   warranties and agreements made herein shall survive the execution and delivery hereof and the making of   any Credit Extension and the Term Loan.  Notwithstanding anything herein or implied by law to the   contrary, the agreements of each Credit Party set forth in Section 3.1(c), Section 3.2, Section 3.3, Section   11.2, Section 11.3, and Section 11.10 and the agreements of the Lenders and the Administrative Agent set   forth in Section 2.14, Section 10.3 and Section 11.2(c) shall survive the payment of the Loans, the   cancellation, expiration or cash collateralization of the Letters of Credit, and the termination hereof.   Section 11.8 No Waiver; Remedies Cumulative.  No failure or delay on the part of the   Administrative Agent or any Lender in the exercise of any power, right or privilege hereunder or under any   other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any   default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege   preclude other or further exercise thereof or of any other power, right or privilege.  The rights, powers and   remedies given to each Agent and each Lender hereby are cumulative and shall be in addition to and   independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of   the other Credit Documents, any Swap Contracts or any Treasury Management Agreements.  Any   forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall   not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the   further exercise of any such right, power or remedy.   Section 11.9 Marshalling; Payments Set Aside.  Neither the Administrative Agent nor any   Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person   or against or in payment of any or all of the Obligations.  To the extent that any Credit Party makes a   payment or payments to the Administrative Agent, the Issuing Bank, the Swingline Lender or the Lenders   (or to the Administrative Agent, on behalf of Lenders), or the Administrative Agent, the Issuing Bank or   the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments   or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to     

 

   125   be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party   under any Debtor Relief Law, any other state or federal law, common law or any equitable cause, then, to   the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens,   rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if   such payment or payments had not been made or such enforcement or setoff had not occurred.   Section 11.10 Severability.  In case any provision in or obligation hereunder or any Note or other   Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and   enforceability of the remaining provisions or obligations, or of such provision or obligation in any other   jurisdiction, shall not in any way be affected or impaired thereby.   Section 11.11 Obligations Several; Independent Nature of Lenders’ Rights.  The obligations of   the Lenders hereunder are several and no Lender shall be responsible for the obligations or Revolving   Commitment of any other Lender hereunder.  Nothing contained herein or in any other Credit Document,   and no action taken by the Lenders pursuant hereto or thereto, shall be deemed to constitute the Lenders as   a partnership, an association, a joint venture or any other kind of entity.  The amounts payable at any time   hereunder to each Lender shall be a separate and independent debt, and, subject to Section 10.10(b), each   Lender shall be entitled to protect and enforce its rights arising under this Agreement and the other Credit   Documents and it shall not be necessary for any other Lender to be joined as an additional party in any   proceeding for such purpose.   Section 11.12 Headings.  Section headings herein are included herein for convenience of   reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.   Section 11.13 Applicable Laws.    (a) Governing Law.  This Agreement shall be governed by, and construed in   accordance with, the law of the State of New York.   (b) Submission to Jurisdiction.  Each party hereto irrevocably and unconditionally   submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New   York sitting in the Borough of Manhattan and of the United States District Court of the Southern   District, and any appellate court from any thereof, in any action or proceeding arising out of or   relating to this Agreement or any other Credit Document, or for recognition or enforcement of any   judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in   respect of any such action or proceeding may be heard and determined in such New York State   court or, to the fullest extent permitted by Applicable Law, in such Federal court.  Each of the   parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and   may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by   law.  Nothing in this Agreement or in any other Credit Document shall affect any right that any   party may otherwise have to bring any action or proceeding relating to this Agreement or any other   Credit Document against any Credit Party or its properties in the courts of any jurisdiction.   (c) Waiver of Venue.  Each party hereto irrevocably and unconditionally waives, to   the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to   the laying of venue of any action or proceeding arising out of or relating to this Agreement or any   other Credit Document in any court referred to in subsection (b) of this Section.  Each of the parties   hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of   an inconvenient forum to the maintenance of such action or proceeding in any such court.     

 

   126   (d) Service of Process.  Each party hereto irrevocably consents to service of process   in the manner provided for notices in Section 11.1.  Nothing in this Agreement will affect the right   of any party hereto to serve process in any other manner permitted by Applicable Law.   Section 11.14 WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY   IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY   RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR   INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT   DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER   BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A)   CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON   HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD   NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)   ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO   ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER   THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.   Section 11.15 Confidentiality.  Each of the Administrative Agent, the Issuing Bank and the   Lenders agrees to maintain the confidentiality of the Information (as defined below), except that   Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors,   officers, employees, agents, advisors and other representatives (it being understood that the Persons to   whom such disclosure is made will be informed of the confidential nature of such Information and instructed   to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting   to have jurisdiction over it (including any self-regulatory authority, such as the National Association of   Insurance Commissioners), (c) to the extent required by Applicable Laws or regulations or by any subpoena   or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies   hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or   any other Credit Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement   containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant   in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or   (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to   the Borrower or any Subsidiary and its obligations, (g) with the consent of the Borrower or (h) to the extent   such Information (x) becomes publicly available other than as a result of a breach of this Section or (y)   becomes available to the Administrative Agent, any Lender, the Issuing Bank or any of their respective   Affiliates on a non-confidential basis from a source other than the Borrower.  In addition, the Administrative   Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement   to market data collectors, similar service providers to the lending industry and service providers to the   Administrative Agent and the Lenders in connection with the administration of this Agreement, the other   Credit Documents, and the Commitments.   For purposes of this Section, “Information” means all information received from the Borrower or any of its   Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other   than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on   a non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries, unless, in the case of   information received from the Borrower or any of its Subsidiaries after the date hereof, such information is   clearly identified at the time of delivery as non-confidential.  Any Person required to maintain the   confidentiality of Information as provided in this Section shall be considered to have complied with its   obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of   such Information as such Person would accord to its own confidential information.     

 

   127   Each of the Administrative Agent, the Issuing Bank and the Lenders acknowledges that (i) the Information   may include material non-public information concerning the Borrower or any Subsidiary, as the case may   be, (ii) it has developed compliance procedures regarding the use of material non-pubic information and   (iii) it will handle such material non-public information in accordance with Applicable Law, including   United States federal and state securities laws.   Section 11.16 Usury Savings Clause.  Notwithstanding any other provision herein, the aggregate   interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or   fees in connection therewith deemed in the nature of interest under Applicable Laws shall not exceed the   Highest Lawful Rate.  If the rate of interest (determined without regard to the preceding sentence) under   this Agreement at any time exceeds the Highest Lawful Rate, the aggregate outstanding amount of the   Loans made hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due   hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest   set forth in this Agreement had at all times been in effect.  In addition, if when the Loans made hereunder   are repaid in full the total interest due hereunder (taking into account the increase provided for above) is   less than the total amount of interest which would have been due hereunder if the stated rates of interest set   forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Borrower   shall pay to the Administrative Agent an amount equal to the difference between the amount of interest   paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times   been in effect.  Notwithstanding the foregoing, it is the intention of the Lenders and each of the Credit   Parties to conform strictly to any applicable usury laws.  Accordingly, if any Lender contracts for, charges,   or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such   excess shall be cancelled automatically and, if previously paid, shall at such Lender’s option be applied to   the aggregate outstanding amount of the Loans made hereunder or be refunded to each of the applicable   Credit Parties. In determining whether the interest contracted for, charged, or received by the   Administrative Agent or a Lender exceeds the Highest Lawful Rate, such Person may, to the extent   permitted by Applicable Laws, (a) characterize any payment that is not principal as an expense, fee, or   premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,   prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the   contemplated term of the Obligations hereunder.   Section 11.17 Counterparts; Integration; Effectiveness.  This Agreement may be executed in   counterparts (and by different parties hereto in different counterparts), each of which shall constitute an   original, but all of which when taken together shall constitute a single contract.  This Agreement and the   other Credit Documents, and any separate letter agreements with respect to fees payable to the   Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof   and supersede any and all previous agreements and understandings, oral or written, relating to the subject   matter hereof.  Except as provided in Section 5, this Agreement shall become effective when it shall have   been executed by the Administrative Agent and when the Administrative Agent shall have received   counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.    Delivery of an executed counterpart of a signature page of this Agreement by telecopy or .pdf file shall be   effective as delivery of a manually executed counterpart of this Agreement.   Section 11.18 No Advisory of Fiduciary Relationship.  In connection with all aspects of each   transaction contemplated hereby (including in connection with any amendment, waiver or other   modification hereof or of any other Credit Document), each of the Credit Parties acknowledges and agrees,   and acknowledges its Affiliates’ understanding, that: (a)(i) the arranging and other services regarding this   Agreement provided by the Administrative Agent and the Lenders, are arm’s-length commercial   transactions between the Credit Parties, on the one hand, and the Administrative Agent and the Lenders, on   the other hand, (ii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors   to the extent it has deemed appropriate, and (iii) each of the Credit Parties is capable of evaluating, and     

 

   128   understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the   other Credit Documents; (b)(i) the Administrative Agent and each Lender is and has been acting solely as   a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not and will   not be acting as an advisor, agent or fiduciary, for any Credit Party or any of their Affiliates or any other   Person and (ii) neither the Administrative Agent nor any Lender has any obligation to any Credit Party or   any of their Affiliates with respect to the transactions contemplated hereby except those obligations   expressly set forth herein and in the other Credit Documents; and (c) the Administrative Agent, each Lender   and their respective Affiliates may be engaged in a broad range of transactions that involve interests that   differ from those of the Credit Parties and their Affiliates, and neither the Administrative Agent nor any   Lender has any obligation to disclose any of such interests to any Credit Party or its Affiliates.  To the   fullest extent permitted by law, each of the Credit Parties hereby waives and releases, any claims that it   may have against the Administrative Agent and each Lender with respect to any breach or alleged breach   of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.   Section 11.19 Electronic Execution of Assignments and Other Documents.  The words   “execution,” “signed,” “signature,” and words of like import in any Assignment Agreement or in any   amendment, waiver, modification or consent relating hereto shall be deemed to include electronic signatures   or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or   enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the   case may be, to the extent and as provided for in any Applicable Laws, including the Federal Electronic   Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records   Act, or any other similar state laws based on the Uniform Electronic Transactions Act.   Section 11.20 USA PATRIOT Act.  Each Lender subject to the Patriot Act hereby notifies each   of the Credit Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and   record information that identifies each of the Credit Parties, which information includes the name and   address of each of the Credit Parties and other information that will allow such Lender to identify each of   the Credit Parties in accordance with the Patriot Act.    Section 11.21 Acknowledgement and Consent to Bail-In of EEA Financial Institutions.   Notwithstanding anything to the contrary in any Credit Document or in any other agreement,   arrangement or understanding among any such parties, each party hereto acknowledges that any liability of   any Lender that is an EEA Financial Institution arising under any Credit Document, to the extent such   liability is unsecured, may be subject to the writedown and conversion powers of an EEA Resolution   Authority and agrees and consents to, and acknowledges and agrees to be bound by:   (a) the application of any Write-Down and Conversion Powers by an EEA Resolution   Authority to any such liabilities arising hereunder which may be payable to it by any Lender that is an EEA   Financial Institution; and   (b) the effects of any Bail-In Action on any such liability, including, if applicable:   (i) a reduction in full or in part or cancellation of any such liability;   (ii) a conversion of all, or a portion of, such liability into shares or other   instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge   institution that may be issued to it or otherwise conferred on it, and that such shares or other   instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability   under this Agreement or any other Credit Document; or     

 

   129   (iii) the variation of the terms of such liability in connection with the exercise   of the write-down and conversion powers of any EEA Resolution Authority.   Section 11.22 Existing Agreement.   Simultaneous with the initial Loans advanced hereunder, all amounts due under the Existing   Agreement shall be repaid in full; provided that the parties hereby agree that there is no novation of the   Existing Agreement.  On the Effective Date, the rights and obligations of the parties under the Existing   Agreement shall be subsumed within and be governed by this Agreement.   [Signatures on Following Page(s)]     

 

   [Signature Page to Amended and Restated Credit Agreement]   IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and   delivered by their respective officers thereunto duly authorized as of the date first written above.          BORROWER:     PHYSICIANS REALTY L.P., a Delaware limited   partnership   By:  Physicians Realty Trust, as General Partner       By: /s/ John T. Thomas   John T. Thomas, President and Chief Executive   Officer                                                                                 

 

   [Signature Page to Amended and Restated Credit Agreement]      GUARANTOR:       PHYSICIANS REALTY TRUST, a Maryland real estate   investment trust   By: /s/ John T. Thomas   John T. Thomas, President and Chief Executive Officer                  

 

      ADMINISTRATIVE AGENT, ISSUING BANK,   SWINGLINE LENDER, and LENDER:         KEYBANK NATIONAL ASSOCIATION      By: /s/ Laura Conway   Name:  Laura Conway   Title:   Senior Banker                                                

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:      BMO HARRIS BANK N.A.          By: /s/ Kevin Fennell   Name: Kevin Fennell   Title:  Vice President                                      

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:      CITIZENS BANK, N.A.          By: /s/ Brad E. Bindas   Name:  Brad E. Bindas   Title:  Senior Vice President        

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:      BANK OF AMERICA, N.A.          By: /s/ E. Mark Hardison   Name:  E. Mark Hardison   Title:   Senior Vice President     

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:       RAYMOND JAMES BANK, N.A.      By: /s/ James Armstrong   Name:  James Armstrong   Title:  SVP    

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:      ROYAL BANK OF CANADA          By: /s/ Brian Gross   Name:  Brian Gross   Title:   Authorized Signatory    

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:       REGIONS BANK      By: /s/ Steve Mitchell   Name: Steve Mitchell   Title:  Senior Vice President    

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:       BRANCH BANKING & TRUST COMPANY       By: /s/ Brad Bowen   Name:  Brad Bowen   Title:   Vice President    

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:       CREDIT AGRICOLE CORPORATE AND   INVESTMENT BANK      By: /s/ Mark Koneval   Name: Mark Koneval   Title:  Managing Director      By: /s/ Alistair Anderson   Name:  Alistair Anderson   Title:  Vice President     

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:      JPMORGAN CHASE BANK, N.A.       By: /s/ Daniel S. Margolis   Name: Daniel S. Margolis   Title:  Authorized Officer        

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:      MORGAN STANLEY BANK, N.A.          By: /s/ Michael King   Name: Michael King   Title:  Authorized Signatory     

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:      MORGAN STANLEY SENIOR FUNDING, INC.          By: /s/ Michael King   Name:  Michael King   Title:   Vice President     

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:      PNC BANK, NATIONAL ASSOCIATION       By: /s/ John Murphy   Name:  John Murphy   Title:  Senior Vice President           

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:       COMERICA BANK, a Texas Banking Association      By: /s/ Charles Weddell   Name:  Charles Weddell   Title:   Vice President     

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:       THE HUNTINGTON NATIONAL BANK      By: /s/ Michael Shiferaw   Name: Michael Shiferaw   Title:  Vice President     

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:       ASSOCIATED BANK, NATIONAL ASSOCIATION      By: /s/ Greg Conner   Name:  Greg Conner    Title:  Senior Vice President     

 

   [Signature Page to Amended and Restated Credit Agreement]      LENDER:       SYNOVUS BANK      By: /s/ David Bowman   Name:  David Bowman   Title:   Senior Corporate Banker                              1971887.11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]